policy priorities against moderates' concerns about inflation at tax hikes. the president is trying to drum up support in trips to political battlegrounds in michigan. he calls photos of his plan complicit in america's decline. the covid-19 death toll in the united states this year has surpassed the fatalities in 2020. the wave fueled by the delta variant is waiting, but daily infections are still near 100,000 and more than 1800 people are dying every day on average. the u.s. has the world's highest death count at more than 704,000 according to data from johns hopkins university and bloomberg. sweden's public health authority is halting vaccinations using moderna's vaccine for people ages 30 or younger. these statements as they have

seen signals of increased risk for side effects such as heart inflammation, though it says the risk is very small. they are recommending a pfizer vaccine for that age group. in hong kong, chief executive carrie lam has outlined plans to develop the border with china into a major metropolitan area. more than 900,000 homes would be built to ease the housing crisis that has led to unrest. lam warns she wants to develop the area as an information and technology hub. global news 24 hours a day, on-air and at bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i am mark crumpton. this is bloomberg.

>> it is 1:00 p.m. in new york, 6:00 p.m. in london. i am alix steel. here are the top stories from around the world. president biden is set to meet with top ceos to discuss the potential damage to the economy from a default. plus, we hear from michael righetti on seeing more consolidation between alternative asset firms and whether private equity is a place for growth. and getting into the ring. we speak to the top ranked boxing president on the importance of fans in the stands. i used a box in the day -- used to box in the day. s&p down by .7%. this does not encompass the wild ride we have seen. futures get hammered, then you have the adp number better than expected, then a buy the dip move. all major indices are in the red. the nasdaq holding up the best,

up 5.5% as you have yields -- up by .5% as you have yields trading around the 1.5 level. watch the 10 year breakeven, coming in at 2.44. this is where you see the stickiness of higher energy prices. that starts to take hold. inflation expectations start to anger more to the upside. that's the biggest problem for the fed. all this is feeding into more volatility. the vix now at 23, substantially over the 20 level. the story of the day is natural gas. european natural gas futures were up 60% in one day and they rolled over substantially once you had russian president vladimir putin promising more gas to europe.

this kind of volatility you are not supposed to see in this commodity. this is what you see in bitcoin. how do you hedge for something like that? how do you hedge for the political dysfunction in d.c. i want to bring in jeannie adams. how do you hedge? >> i don't know that it is possible. a lot of people's conundrums are , how do you hedge for d.c., but what is going on in the commodity complex is extraordinary. also inflation pressures are rising because equity should be a natural hedge against those pressures. it is a confluence of factors resulting in volatility across asset classes and a lot of confusion and loss of leadership.

there is no consistent leader in the equity market except loss of energy. alix: for once. gina: for the first time ever. alix: how are earnings going to matter? gina: i think they are mattering, they are just being overwhelmed by macro issues. when it comes down to it, at the beginning of september we started to notice some degradation in the forward outlook for earnings growth as a result of the fact inflation pressures were sticking around longer than analysts had anticipated. we started to see downgrades of -- downgrades from analysts. not massive downgrades with respect to the long-term economic outlook, but a downgrade for earnings growth for the short-term as a result of stickier than expected inflation pressures. inflation pressures have only expanded, some would say exponentially. the signals from the commodity complex are incredibly robust commodity prices, especially for

energy over the last six months. we continue to see downside estimate revision coming out of analysts. alix: hang on one second because we are looking at president biden and treasury secretary janet yellen. let's listen in. pres. biden: thanks to those here as well as those on zoom. this is, to state the obvious, an important get together. i am going to make some brief comments, maybe ask a few questions, then yield and go down the road and maybe we can all of us, virtually and in person, make some progress. i want to thank secretary ellen, -- secretary yellen and the commerce secretary and the leaders of some of america's most important businesses and institutions.

the american association of retired persons, bank of america, citibank, deloitte, intel, jp morgan, nasdaq, the national association of realtors, and raytheon. for joining me today to talk about the need to raise the debt limit. we have not failed to do that since our inception as a country. we need to act. these leaders know they need to act. the united states pays its bills. it is who we are and who we will continue to be, god willing. that is what we call the full faith and credit of the united states. let me be clear, raising the debt limit is paying our old debts. it has nothing to do with new spending. it has nothing to do with my plans on infrastructure or building back better, both of which are paid for but they are not even in the queue right now. it is about paying for what we

owe and preventing a catastrophic event for our economy. these leaders are here to talk about the real-world impact that is going to have on people. today's discussion shouldn't be partisan. raising the debt limit is usually bipartisan. let me speak for myself here. i want to be clear so the american people understand what's going on. there is a senate vote to that -- senate vote today to raise the debt limit. traditionally it needs only 50 votes. we were informed by our republican friends that they have to be all democrat votes, they were not going to help. ok, we will provide 50 votes. the democrats have the votes. the democrats are willing to step up and stop this economic catastrophe if senate republicans will get out-of-the-way. but our senate republican friends are planning to block the vote to raise the debt limit by using a procedural power

called the filibuster. that means you have to have 60 votes when there is a filibuster. 60 votes, a super majority, instead of 50 two get anything done. it's not right and it is dangerous. the reason we have to raise the debt limit is in part because of the policies of the previous administration, which incurred nearly $8 trillion in bills in four years, some of which democrats voted for. more than one quarter of the debt now outstanding. we had to raise the debt limit three times when donald trump was president. each time the democrats supported the effort to raise the debt. now republicans won't raise the debt limit despite being responsible for why the debt limit has to be raised for the bills that are outstanding. they won't -- if they don't, we

will be defaulting on a debt that leads to self-inflicted wounds that risks the market tanking, wiping out retirement savings, and costing jobs. defaulting on the debt, which secretary yellen said could happen any day after october 18, means social security benefits will stop. salaries to service members will stop. benefits to veterans will stop. and much more. failure to raise the debt limit will undermine the safety of united states treasury securities, threatened the reserve status of the dollar as a world currency that the world relies on, downgrade america's credit rating, and result in a rise in interest rates for families talking about mortgages, auto loans, credit cards. my friends -- and they are many of my friends -- the senate republicans' position i find not

only hypocritical but dangerous and a bit disgraceful, especially as we are crawling out of a pandemic that cost america 700,000 lives thus far, and we are still battling. markets are rattled. america's savings are on the line. your pocketbooks are directly impacted by this stunt. it doesn't have to be this way. our republican friends need to stop playing russian roulette if the u.s. economy. if you don't want to do the job, get out-of-the-way. let us take the heat. we will do it. let democrats vote to raise the debt limit without obstruction or further delays. house democrats have already passed the bill that would do that, raise the debt limit and keep the government functioning. it is sitting in the senate right now, where democrats with no help from republicans have the votes today to pass the debt limit.

the path republicans offer will take us to the brink and cause a reparable economic damage -- because irreparable economic damage. let's have the vote today. it is the only way to limit eight the uncertainty and risk for american families and the economy. for 200 years, america has built the reputation of the strongest and safest investment in the world. that's why the united states is a financial rock the world looks to and trusts. in one cynical, disruptive partisan ploy, our republican friends are teetering on the brink of threatening to boot that all away. it is a meteor headed to crash into our economy. we should all want to stop it immediately. this shouldn't be partisan, and i am thankful for the leaders who share the urgency on why we

need to act now. many of them are here with me. not next week, now. i look forward to hearing their perspectives and will now get this meeting started with my colleagues' permission. i would like to start off with a question for the ceo of citi. by the way, congratulations on your award. you run one of the largest banks in america. what impacts are you seeing or do you think you will see from this obstruction? what does it mean for small businesses and everyday people if we renege on the debt? >> thank you for inviting us to talk about this critical issue. as the head of the bank, i don't have insight on what the right legislative solution is, but i can tell you from an economic effective -- economic

perspective we need to resolve this issue quickly. every delay comes at an increasing price, as we began to see in the markets starting friday. america cannot default in the debt because the u.s. treasury market is the bedrock of our financial system domestically and globally and defaulting is going to cause lasting damage to the credibility of the united states with investors and in financial markets around the world. the ramifications are not limited to the markets. it is already beginning to cause damage to the economy. it will hurt consumers and small businesses. it is not an exaggeration to say even small distortions in the treasury market can cost taxpayers tens of billions of dollars over many years. consumers can be burdened with higher borrowing costs quickly,

whether they are putting something on the credit card or getting a mortgage, and for small businesses trying to recover from the pandemic, this comes at a critical time. we can't wait for the last minute to resolve this. we are playing with fire right now and our country has suffered so greatly over the last two years. the human and economic cost of the pandemic has been great and we cannot take a catastrophe of our own making. we urge congress to do what is necessary to resolve the situation for the good of our economy and our country. pres. biden: you make a very good point where, god willing, i think we are just about ready to turn the corner again on the pandemic. tens of thousands of small businesses have acquired

significant debt. we have provided significant relief as well, but it is incredibly complicated. with your permission, i would like to ask adina friedman, the ceo of nasdaq, whether she would be willing to give us her thoughts. thank you for taking the time to talk to us. >> thank you for the opportunity to address the current situation. we are starting to experience elevated volatility in the markets, which can be partially attributed to the uncertainty introduced by the delay in approving the extension of the debt limit. we expect continued delay would further destabilize the market. when we consider the broader economic cost of the uncertainty and a possible default, we would see higher borrowing costs for consumers and small businesses,

as well as delays in payments to major social programs such as social security and medicare. these delays and a default would mean hard-working americans will ultimately bear the burden. extending the debt limit allows the payment of obligations that have already been made by the u.s. government. therefore, voting to extend the debt limit is important to enforce the full faith and credit of the united states and we urge action as quickly as possible. pres. biden: let me ask you the defcon 10 question. if we default even for a day or two, what do you think the impact on the market would be? >> investors don't handle uncertainty well. there are hundreds of millions of investors involved in the

markets today that have put their hard-earned savings into the market and we would expect the markets will react very negatively if we get to a defcon 10 situation with default. pres. biden: what does that do to people's retirement accounts? >> well over half adult americans have money in the stock market directly or indirectly. those savings accounts, retirement accounts, pensions will experience a sharp drop, which makes them feel less certain about their ability to manage their lives and savings and plan for retirement. pres. biden: thank you for explaining to people who are watching this how consequential this is. i see you jamie dimon up there

at j.p. morgan. jamie -- excuse me for calling you jamie. mr. ceo, it's good to see you. why, from your perspective, do we need to raise the debt limit immediately before october 18? >> you can call me jamie, that's fine. i appreciate you having us all here. there are five points i want to make. number one is a morality point. we teach our children to meet their obligations and this shouldn't be any different. we should never get this close. there are huge economic costs. there are companies and lawyers trying to figure out what this means. number three, we should get rid of the debt ceiling. we don't need to have this brinkmanship every couple of years.

number four, an actual default would be unprecedented. the things we know it would do are very bad and it could be potentially far worse. the effects could be cascading. day one would be bad, but the ensuing weeks could go anywhere from a recession to a complete catastrophe for the global economy. i don't know why anyone would take a chance like that. america's role in the world is essential. our credibility -- we are being watched right by our allies and enemies. credibility is essential, trust in the u.s. dollar and the financial system is critical. this is the time we show american competence, not american incompetence. alix: i am glad -- pres. biden: i am glad you raised that point because when i

got back from the g7 and a number of meetings with colleagues and heads of state -- brian moynihan knows about this as well. we are not only being measured in terms of our reliability based on the size of our military and/or the physical strength we possess, but it is on whether or not we can function. there is a great debate coming on whether or not in the 21st century, the second quarter of the 21st century, can democracies function with things moving so rapidly? a couple of the folks i have spent a lot of time with of late, mr. putin and mr. xi jinping, they believe autocracies are the only way forward because they can act quickly and decisively. we are seeing the effects of

this around the world. it is understandable why the american -- the average american would not understand the consequences for american security and the willingness of other countries to follow our lead. we have always let the world not just by the example of our power but by the power of our example and that is going to be called into severe question and has consequences that are real. what does further delay mean for a company like yours and the family you serve, even if we go on right up to the brink? >> on monday we are going to start reviewing all of our contracts. there will be huge demands of people financing treasuries. interest rates will start going up. it will get worse as we get

close to the brink. it will hurt companies. we don't worry about that. it will hurt the average american and we don't want that. pres. biden: we are going to get to everybody, but i am going to yield to the director of public engagement, former director of the black caucus in congress. >> i will quickly yield to your great treasury secretary, who is an expert on this, for comments on what she thinks the ramifications are and where we are headed. secretary yellen: let me thank the businesses and leaders who have joined us today. i wish we could be meeting to discuss another topic -- finding solutions for climate change or how to better invest in the future of our economy, but the

urgency of the debt limit situation demands immediate attention. i want to be clear about my position. first, this is an urgent matter that must be resolved immediately. treasury will exhaust its extraordinary measures if congress is not authorized to raise or expend -- or suspend the debt limit by october 18. after that point, the treasury would be left with very limited cash that would be depleted quickly. as this group knows, delaying action can cause business -- cause harm to business and consumer confidence, raise borrowing costs, disrupt financial markets, and cause a downgrade of the u.s. credit rating. this would be a catastrophic outcome and this catastrophe would occur on two dimensions. the first is the financial system and macroeconomy.

if congress does not take action to improve the debt limit -- approve the debt limit, the balance will reach an insufficient level to pay the nations bills and america would default for the first time in history. default would call into question the full faith and credit of the country. our country would likely face a financial crisis, restricting access to credit. our fragile recovery would be thrown into reverse and we would likely experience a recession. millions of jobs to be lost. the second catastrophe would be born by all the americans who directly receive any sort of payment from the federal government. every social security beneficiary, every family receiving a trial tax credit, every military family waiting

for a paycheck or small business owners receiving a federal loan, they are all at risk areas millions are without sufficient savings to forgo an expected check. for these households and businesses, the impact would be devastating. to take one heartbreaking example, millions of seniors who depend on social security would have to make awful choices, such as deciding whether to pay rent or buy groceries. the same goes for parents of young kids expecting a tax payment. hopefully it goes without saying this is not only bad for people, it is equally devastating for american companies. for decades our country has earned a reputation for being a welcoming and reliable place to do business. we respect the rule of law. we honor our debts.

this reputation has benefited us in many ways, including the ability to keep interest rates low and for the dollar to serve as the reserve currency. ultimately these benefits have helped us lead the world economy and become a more prosperous nation. yet today we are staring into a catastrophe in which we surrender this hard-earned reputation and force the american people and the american industry to accept the pain, turmoil, and hardship that comes with default. it is unnecessary and must be avoided at all cost. congress must address the debt limit immediately. thanks and i look forward to continued conversation. >> thank you, secretary yellen. mr. president, as we heard earlier from jane, about half of adults have money in the stock

market directly or indirectly. 50 million people rely on social security checks to make ends meet. i would like to turn it over to joann jenkins. >> thank you, mr. president, for the opportunity to speak to the impact of not raising the debt ceiling on the 5 million people across the country who rely on security. -- on social security. alix: it looks like we have lost the feed, but that was president yellen -- secretary yellen and president biden at the white house speaking to ceos of the nasdaq and major banks. the idea is to get some movement

into raising the debt ceiling and get perspective from banks and the ceo of the nasdaq on what it would mean from the market if we didn't. emily wilkins joins us on the phone. who was president biden's audience? emily: the audience was twofold. it was senate republicans, continued trying to put pressure on them to find some way to move forward with raising the debt limit. the other thing he was trying to do was speak directly to the american people. that's why you heard president biden say this has nothing to do with future spending more the infrastructure bill, it was for debts the government already said they would pay. he is trying to break it down for the american people, let them better understand the issue while also spinning it to convince people that it is the republicans, not the democrats,

who have got them here. alix: more headlines to calm out of that. emily wilkins, congressional reporter from bloomberg. >> one question that is really important is this notion of the audience and what happens now. we didn't hear anything from those ceos that we don't already know. what is the latest happening in congress and our understanding for a potential deal on a budget? sorry, i don't think we have got emily with us. we are watching the markets. we do have a down day across the board. we have seen some weakness led by energy today. the price of oil falling, but it was led by natural gas. russia moving to release some

gas to europe and that did see a wait overall. across the have weakness led by energy, something playing in across tech as well. the story is definitely about what's happening in washington and natural gas. let's get back to the debate in washington over what happens with the debt ceiling deadline and what a potential default could mean. we heard some language from the ceos. to your point, we didn't hear anything we don't already know. it could be catastrophic. it is an alarming signal to global markets and investors. but then what? alix: it was interesting what some of the ceos were talking about, adina friedman saying she is experiencing elevated volatility within the markets

and they will react negatively to default. part of that is a no-brainer, but attributing the recent volatility specifically to the debt limit is different than we thought. we have high energy prices as well, worries about stagflation, things that are independent of what's happening in d.c. jamie dimon also saying they are going to review contracts on monday as there are so many contracts that are going to have to be rejiggered. amanda: no kidding. let's bring in zachary griffiths, wells fargo senior macro strategist. in terms of what you are hearing as we look ahead to monday, how do you process what we are hearing and the stage we are at with the debt ceiling problem? >> we are getting down to the wire, something we pointed out yesterday. it seems like there might be progress from mitch mcconnell offering a short-term solution. that would relieve some

pressure, but if that falls through, we could be looking at elevated volatility toward the end of this week and early next week. that is a de facto deadline for democrats to get the process started if they want to go through the budget reconciliation route. we thought for a while this risk had been underappreciated. a big selloff today, but it is difficult to assign how much volatility comes from the debt ceiling versus the volatility in energy markets and other concerns. alix: how are you playing with this? barclays saying the risk of default is greater than any other point in the last couple of decades, but the vix curve is not saying that. you have jp morgan saying to buy the dip. how do you deal with this? zachary: it's a lot to digest. things could get worse before they get better, but they will

ultimately get better. some buy the dip makes sense. we think positioning for higher volatility, and from a rates market perspective we think the initial consternation is in the bill market, issues with funding markets, but looking back to issues with the debt ceiling in 2013, liquidity at the back end of the curve remained firm and yields fell as people came into treasuries as the rest off moved out of treasuries, even as we were contemplating a u.s. default. we think that is probably the play here, so the curve could flatten but most of that consternation is probably in funding markets and the short end of the curve. amanda: there will be a temptation by some to look through this and make an assumption that short-term turbulence will resolve and investors can see opportunity

for volatile markets to present buying opportunities. when you say position into it, get specific on what investments you are looking at to play off what might happen over the coming days and weeks. zachary: buying the dip would be consistent with what our equity strategists would say because we don't expect a default to happen. if you have a big move, that expects -- that presents an attractive entry point. we expect congress to get his act together, but it could get worse before it gets better. the amount of uncertainty we see playing out leads us to think you could wait on that move. alix: does that imply you don't see stagflation as a problem? zachary: that's not our call right now. there are plenty of inflationary pressures and concerns that if they don't abate at a certain point might cause us to reassess. the big thing from our

perspective at wells fargo securities is economic growth is expected to remain robust at the end of this year and into next year. that doesn't fit into a stagflation story. we could have higher inflation with greater economic growth, but we don't see growth during with high inflation at this stage. amanda: give us a sense of the worst case scenario. we have had some dire thoughts and then we get more prosaic from people actually in the market. what do you think could happen? zachary: a worst-case scenario is a u.s. government default or perhaps a technical default where they prioritize payments. that is an outcome everyone wants to avoid and we think will ultimately be avoided. that would call into question the full faith and credit of the u.s. government, as secretary yellen was pointing out. that underpins the entire financial system globally, so

that catastrophic outcome is not an acceptable risk. there is a strong argument for why the debt ceiling needs to be done away with, as it really doesn't make sense. as pointed out earlier, it is only lifting a debt cap for spending that has already been approved, so it doesn't make sense and presents one of the most unnecessary risks to financial markets. alix: punch bowl is now reporting senator mitch mcconnell is going to offer a short-term extension on wednesday, pushing the can down the road very much like the government funding pushed to december 3. on a day like today when volatility is picking up -- we have not seen this consistent 1% slide on the s&p since march 2020 -- where do you hide if you need safety? treasuries are not providing it. gold is up two dollars. where do you go?

zachary: we preferred to go to the front and of the treasury curve in typical instances. that doesn't work with what we are seeing from a debt ceiling perspective. from an equity perspective, utilities could work out for this time of heightened uncertainty. perhaps we do get a short-term solution, kick the can to december so you get a short-term pop. some of these plays are where you need to be today and that is something that we think is a prudent decision for the next several days until we have details on the short-term solution. amanda: in the longer-term, we have suggestions, including from the treasury secretary, that we remove the debt ceiling or left the debt ceiling -- or lift the debt ceiling. do you have any concern about the level of debt and deficit and what that could do to the

u.s. dollar? is that so far flung a concept that you don't need to worry about it? zachary: it is not something we are too concerned about from the perspective of how much debt is outstanding. we have been pointing out to clients that in fiscal year 2021 we ran a budget deficit of $3 trillion. treasury is going to be pulling back on issuance. we could see supply cuts to coupons in the november 3 refunding. even as we are approaching a time where the fed is removing accommodation by tapering asset purchases, perhaps as soon as early november, you have treasury likely to cut supplies by much more. the impact is less issuance for the market to take in 2022 and we think that relieves upward pressure on rates. while we think the next move is higher, we think the degree of

another move higher in 2022 is limited by these factors. alix: i was talking to gina adams and i asked her how earnings matter this season. when you have macro factors causing uncertain the, how are you reading earnings season? zachary: earnings season is important and we are focused on the ability of these companies to pass on rising costs to the consumer. so far they have been fairly successful and earnings have not been hit by higher inflation. if that starts to shift, perhaps you have more issues in the equity market and more volatility that causes more of a continued selloff or continued pressures in equities. our colleagues still look for equities to rally pretty substantially, so they are not concerned with this earnings

season, but we will be keeping an eye out for slowing down or concerns on the public health front having to do with this relatively short-term debt ceiling episode. alix: we are watching -- amanda: we are watching the nasdaq go into positive territory here with relief there is a potential solution. does that surprise you that the markets are that attuned to what is happening? does that speak to you about the volatility at these levels of the markets, given their valuations? zachary: it speaks to the volatility and the new focus on the debt ceiling issue. if you asked me a couple hours ago, i would not have expected to see mitch mcconnell extending an olive branch, even short-term, on the debt ceiling. i would say both sides had remained very dug in until this point.

it speaks to the volatility and the focus this has gotten over the past week. if we do get the short-term move , we think that probably column -- calms markets and we have a couple of months to see if they get a longer-term solution. alix: we really appreciate it. zachary griffiths of wells fargo. as amanda was saying, the nasdaq is inching into positive territory. the s&p down by .1%. we did see the turnaround when we got the headlines that mitch mcconnell presented a short-term debt plan. we will get more on those details next. this is bloomberg. ♪

alix: this is bloomberg markets. the report that senator mitch mcconnell is going to offer a short-term debt limit extension is trying to stabilize markets. emily, this comes as president biden is speaking to major ceo's about the importance of raising the debt ceiling limit. what do we know? emily: senate democrats are still having their meeting, but we are seeing reports saying that senator mitch mcconnell has offered an extension of the debt limit through november. this would be a temporary lifting, something that republicans and democrats could move in a bipartisan way. this means we are potentially in the same spot at the end of november, but it does alleviate the pressure now and give democrats a chance to figure out their next move. amanda: one of the complexities

is president biden does not have all the democrats on side for this issue. when we think about the next move, what might that involve in terms of bringing the likes of senator manchin to bear? emily: senator manchin has not come out explicitly and said he would not support the debt ceiling being raised. what we did here today is that he would not support a filibuster. he wants republicans and democrats to work together, as do all democrats. they want to see the debt limit raised in a bipartisan fashion. republicans don't want their fingerprints on raising the debt ceiling. they want to be the party of fiscal conservatism. they don't want to have a large number attached to their names. at the same time, i think every lawmaker recognizes what it means to america, the american economy, and the people if the

u.s. was to default. there is a sense they want to make sure that's avoided. alix: what would be in it for mcconnell to push this through, even short-term? what do they get in return? emily: great question. the details of this have just emerged about five minutes ago. we have bloomberg reporters outside the room where senators are meeting. this is a developing story. we are going to be asking those questions and i expect we will have a lot more information soon on the contours of this agreement. amanda: we did here this morning from business leaders about the repercussions. nothing that you don't already know, but does it make a difference to lawmakers to hear the sense of urgency from some top ceos? emily: for a lot of republicans particularly, a lot of their donors, their biggest

supporters, have been businesses and the business industry. for them to come to republicans and say this is something we shouldn't be playing games with, we are going to need some agreement to move forward, we have concerns about how long the reconciliation process might take, definitely seems like some sort of pressure worked to see the agreement we are now seeing reported. alix: we really appreciate it. we know you have been busy. some breaking news for you. the ecb is studying a new bond buying plan or when he ends -- when pep ends . that can buy a lot of stuff versus a classic asset purchasing program. this potentially would be a new plan to prevent any threat widening if the ecb pares back the emergency purchase program. the new program will complement the older asset purchase plan.

it would not be tied to the capital key. potentially a lot more availability for the ecb to prevent spreads from widening and tamped down on financial stress. we are not seeing the euro react that much. still down by about .4%. this is bloomberg. ♪

alix: bloomberg confirming that mitch mcconnell is going to offer democrats the option to end the debt limit impasse. the s&p right around the highs of the session, offering relief. the nasdaq pushing more into positive territory. mcconnell offered democrats an option to end the debt limit impasse. this would definitely be nice to shake the logjam. amanda: we have already seen some reaction in the markets to the suggestion there could be an olive branch.

we might expect some more reaction. this does appear to have some traction. we have been hearing from secretary of state antony blinken. he says the u.s. wants china to act responsibly when it comes to addressing the potential impacts china's ever ground -- evergrande financial crisis could have. this was the story before the debt ceiling overtook on the question of contagion. when blinken says responsibly, what does he mean by that? what does he want from china? >> the comments we have heard from the white house on the ever grande debacle. we have -- you could read the comment as being marginally provocative, that china will act irresponsibly. knowing full well as he does the

mass around ever grande debt was preceded by policy emanations from president xi jinping himself. alix: the relationship of the u.s. and china. china is dealing with its own problems, prosperity, the ever grande issue. jp morgan said to president biden that this is going to harm our stands in the world, the debt ceiling impasse is going to make us less good in the world. does china care? >> it does. one of the planks of the biden white house policy toward china is to strengthen the u.s. economy. it comes to the conclusion that trade deals with china don't work. the trump administration did an enormous trade deal with china

and china has not delivered on that yet. maybe china isn't going to change and we need to get our own house in order. upgrading, manufacturing, working on retraining for workers and so on really is a central part of white house policy toward china. alix: thanks a lot. really appreciate andy browne of the bloomberg new economy forum. interesting how that ties into the debt ceiling limit, the dysfunction in d.c., and the relationship there. mitch mcconnell is planning to offer a short-term debt ceiling increase through november. it kicks the can down the road, but it is something and that could alleviate short-term stress as we are looking at the s&p just off by .2%, the nasdaq

trying to get into positive territory. emily: you are right that it will be seen as something. we may go back to concerns the market had on the credit front with ever grande. bloomberg reporting the ecb is looking at a new bond buying plan for when the program ends, which will have market implications. i am seeing news from general motors on its own profit outlook as well. a lot for investors to chew on this afternoon. i am amanda lange for alix steel. stay with us. ♪

>> u.s. senate one date later mitch mcconnell has offered a deal to the democratic party

here, effectively to raise a the uss ceiling through this november here. this is a major concession by the republican party. mitch mcconnell offering democrats an agreement to raise u.s. debt ceiling through this november, this would alleviate some of the concerns about the default. this is based on people who are familiar with the situation as reported by bloomberg news. we want to go right to washington right now are emily wilkins is standing by with the latest. what do we know right now? emily: this was the announcement made by senator mitch mcconnell that he was going to offer two options. potentially to delay this debate over the debt ceiling until the end of november and pass a short-term raise of the debt ceiling. that there would be no chance of defaulting on october 18.