>> good morning from bloomberg's european headquarters, this is "daybreak: europe." progress on the debt ceiling. democrats will accept a republican compromise to allow a short-term increase on borrowing, postponing the risk of defaults, mobile stocks climbed. the great gas reversal. vladimir putin offers to export record volumes of fuel to europe, cooling a surge in energy prices.

a bloomberg scoop, the ecb is studying a new bond buying program for when pandemic support is phased out. happy thursday. the market pinball machine has steadied, at least for now. republicans perhaps reaching a short-term compromise with democrats on the debt ceiling. russia using gas crisis in europe. it is a positive day. the real turnaround happening in the european session. the asian session was closed when we got the news macconnell might offer the short-term fix for the debt ceiling. it eases pain off of the u.s. market. we see europe having to play more catch up. more than 1% yesterday. futures up more than 1%. what is helping that, let's look at the cross asset picture. the energy complex price is easing. looking at crude. wti down .8%.

brent crude down, as well. at one point, the highest level since 2014. now under $77 a barrel. bringing more optimism into the market. a steady dollar and said he euro . still the lowest since july. at the same time, u.s. 10 year yields selling in the bond market. not enough to derail the equity market and optimism we see. a lot of this optimism has to do with what is happening in d.c. mitch mcconnell offering a deal to raise the u.s. debt ceiling into december. it would alleviate the immediate risk of default. it also came as president biden enlisted financial and corporate leaders to help put pressure on gop lawmakers. >> we will be defaulting on a debt that would lead to a self-inflicted wound, risking the market tanking. wiping out retirement savings and costing jobs. dani: let's get more from john hardy in d.c. up late for us.

where do things stand on this debt standoff? >> after a long night in the senate, chuck schumer, the majority leader, reported progress had been made without being more specific. so the senate will reconvene on thursday morning to take up this parent agreement with republicans to extend the debt suspension into december, which has brought some relief. it almost certainly means this clash this agreement will continue in several more weeks. dani: assuming republicans and democrats can agree on a temporary suspension of debt,

what is the next step after that? >> democrats will use this time to, one would think, get would president biden's economic initiatives, the infrastructure bill, the tax suspending plan, over which there has been considerable disagreement among democrats. republicans will presumably use this debt ceiling and tax suspending legislation to portray the democrats as profligate, and spending too much money. they are becoming fiscal conservatives. dani: john, thank you for keeping us up-to-date. that is d.c. let's get to the market action,

juliette saly joins us in singapore. it looks like we are risk on. >> a look at the gmm. the first win of the week for asian stocks. having the best day since august 31. the worry dissipating. the virtual meeting between xi and biden announced, giving a boost. the nikkei up after the technical correction yesterday. ubs saying some of the selloffs in japanese equities are unjustified. the energy space, no surprise. that has been the only sector holding up the markets over the past week or so. a rebound in hang seng tech stocks after it hit a record low yesterday. looking ahead to the reopen of markets in china after the week of golden week holidays. we could see a little bit of a bid. we will see what move we can get from authorities on the ever grand front, particularly after goldman said the fantasia

default has magnified the concerns. looking at chinese estates surging after the company announced it would grow -- go private. it is 75% owned by the billionaire allow family. they will buy up the remaining stake in hong kong. a 40% premium to what we saw it close yesterday. this is a key ever grand backer that has seen it plunge to 18 year lows on the back of these concerns. dani: a great point. interesting to see how chinese markets open up when they do, given the volatility. juliette saly, thank you. over to russia, which is offering relief to europe's gas crisis with strings attached. after a chaotic day that's how the benchmark prices rise 40%, vladimir putin said russia could stabilize the problem by exporting record volumes of fuel to europe. while not explicitly mentioning the nord stream 2 project,

vladimir putin mentioned gas routes through ukraine are more expensive. joining us now is andrew james, are energy and commodity editor. what does it all mean for europe's ongoing crisis in the energy sector? >> as you said, putin did not link it to nord stream 2, but it was obvious what he was talking about. a good way for russia to export more. the pipeline that runs from russia to germany runs under the baltic sea. it is now in a fairly controversial and lengthy permitting process that needs to satisfy european union standards to separate transport gas from production of sales. putin is keen to hurry it along.

a big market impact, about 7%, also having a flow on impact into the oil markets, as well. >> that is andrew james. now to a bloomberg scoop. the ecb is considering a new bond buying program to prevent any market turmoil as pandemic support gets phased out. let's get to the european economy editor. that story exclusively. what details are we to expect? what is the expectation of what the ecb will do at the end of the pandemic purchasing program? >> it is very unclear. it shows you that behind the scenes, there is work underway studying options of what could possibly happen. what we understand is they are looking at a program complementing the purchasing

program, one that expires in march. no decision has been taken. they are looking at options. this particular option would include selective purchases of bonds where prices are at risk. policymakers are super concerned about a widening of spread compared to the one we saw at the start of the pandemic. it particularly affected italy, for example. they want to prevent that from happening. the decision is going to come in december. the president has indicated herself there might be a transition. we will have to wait until then to see what exactly they are deciding on. dani: thank you for bringing us this bloomberg scoop. let's get over to the first word news. it is juliette saly. juliette: the easing of covid

restrictions in the u.k. the markets for london's finance jobs. more than 2800 new jobs posted, marking the busiest month since january 2014. morgan mckinley and vacancy stock, postings were more than double last year's level. president biden plans to me virtually with xi jinping before the end of the year. after talking between white house national security advisor and the senior china foreign policy advisor. a u.s. official called the latest discussions more meaningful than previous meetings. the carlyle group believes it firms under investing in china speaking at the bloomberg summit, the ceo said leaders are under exposed to the chinese market. he added the region has always had what he called short-term bumps and investors should take a long-term view.

>> the question isn't should i be investing in the region or not, it is what is the best way and how should we be doing it? in my mind, i think there is more opportunity in that region of the world than not, especially since valuations have corrected a bit in that part of the world. juliette: global news, 24 hours a day, on air and at quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. dani: juliette saly in singapore. coming up, investors remain on edge as they grapple with an array of risks, including monetary policy tightening to tackling price pressures. and the impact of global energy crunch. we will discuss all of that. later in the show, we will hear from u.s. secretary of state antony blinken. he spoke to francine lacqua, saying china should cease actions towards taiwan. that was during a talk. that coming up next.

this is bloomberg. ♪

>> i'm not surprised to see this most recent retreat in correction we have been going through. >> china has already gone through a bit of a correction. >> they are playing this to be a superpower and moving consistently in that direction. we think it is investable. >> diversification is key. >> being somewhat better diversified geographically. >> you have to have it change, be agile. >> it will be more important in the next decade. >> we have seen a dramatic growth in allocations. >> anybody on the sidelines under allocated to pre-pandemic and saw the performance with this reopening. we see a real resurgence of demand. >> it has never been more punitive to hold cash. >> if the inflation piece pulls

over, the whole thing falls over. >> the problem is stagflation. that is the real risk. >> there are no answers to it yet. we should expect continued volatility. dani: on day two of the bloomberg invest global conference, top investors pointed to the importance of diversification made inflation and continued volatility. let's talk about the cloud. joining us to chat more is sandra flippin. thanks so much for joining us. there's been a really wide range of view of where we stand in this current economic cycle. do you buy those arguments we might be heading into more of a stagflationary environment? >> it is very hard to say now. it is definitely not our base case. we do think global economic growth will remain a trend for now. but we do see quite a number of headwinds coming up. it is not just the delta variant that was the caper, but it was

the supply bottlenecks. then there is the support in the euro area coming up. that is also what the ecb is in with the new announcement of a potential new instrument. dani: let's get into that. talking about another bond buying program once the pandemic support program eases out. is it enough support to offer up to the markets right now to help prevent any sort of economic shocks following the end of that pandemic emergency support? >> we don't know enough about the details to really say whether it will be enough. but we are happy about it. we do see the euro zone is much more fragile. much more than the u.s., for example. although what we see from the data, the transaction data we have on our own, it seems there

will not be a cliff edge, in terms of bankruptcies from the ending of support. it is harder to say in southern european countries. dani: in your thoughts before the show, you wrote about how inflation has peaked in the u.s., not so in europe. how much further does inflation have to run in europe? what are the factors that feed into that view? >> one thing that is very urgent is what is going on in energy. we see this massive energy squeeze. winter still has to come. it could drive headline inflation. core inflation, we expect it to ease going down the road. dani: do you think this energy spike, it changed in the u.k., we saw it hit in terms of breakevens, the highest since 2008.

could it be a catalyst to cause a central banks to tighten sooner, or will they overlook it as a transitory factor of inflation? >> we clearly think -- the energy squeeze is something that will most likely be tackled by fiscal policy. already, the european commission has proposed measures to governments to help them with fiscal policies, or conversations to deal with a higher energy bill if necessary. i don't think it will be on the monetary front. but the energy squeeze it is not climate policy driven. it is giving us a very interesting preview of signals from policies and consumers of

how we are going to deal with the climate crisis down the road. dani: let's talk about that consumer peace. are you concerned at all that we could have a scenario where this does elevate prices and consumers' willingness to go out and spend is diminished? >> that could be a risk. there is a lot of involuntary savings and bank accounts. if energy prices and other commodity prices keep going up, it could melt down their savings that we had anticipated. it could mean going forward, there can be less private consumption for the recovery. dani: before i let you go, i want to turn to the u.s., specifically the jobs numbers we are going to get out tomorrow. what is your expectation, and

could the numbers shift the fed's thinking? is the number locked in at this point? >> that is really an exciting data point coming out tomorrow. our view is we do think the ending of subsidy schemes and reopening of schools is going to release pressure on the job market in the u.s.. that is a really important criteria for services recovery to really take over for manufacturing in driving -- meeting the recovery in the u.s. so we see that consumption of services is going very well. the consumption of goods is going down. in order for services to take over the role of goods consumption, we really need to have some easing on the jobs market. dani: on the jobs market, how bad do the numbers have to be to

delay the fed at this point? >> that is a hard question. i don't have the number two that right now. consensus is in the range of 480,000 jobs. 500,000 jobs is the expectation. if it is slower than that, it will be -- dani: thank you so much, sandra phlippen. coming up, european bonds whipsaw as the ecb studies the emergency bond buying program. we talk with income and inflation next, with garfield reynolds. this is bloomberg. ♪

dani: welcome back to "bloomberg: daybreak: europe."

yields have been capturing the attention of these markets, specifically the upward margin. it has been acute in europe. we are looking at the u.k. and german ten-year yield over the past 30 days. a steady upward march. this chart is pointed out by michael purves. it is no mistake that yesterday when we saw yields easing, it was when we started to see gas prices easing. specifically natural gas. the u.k. market is what you are looking at. this easing happened when we had news putin was looking at supplying more to the european market. both of them moving in tandem. how much relief can we take from this news? how much is this really a yield spike moderating? let's dig through these markets. joining us is garfield reynolds. i'm looking at u.s. 10 year yields marching higher. i do have to wonder how you

interpret the move of these yields? is it really tied to the energy markets at this point, or is there something else that play? -- at play? >> there is almost always more than one thing at play. i think energy prices are very predetermined it, looking back at the way -- the co-relation between treasury yields and oil prices has gone from being negative to positive territory. and you get these spurts in the correlations, usually higher in yields or prices. right now, i think we are in an environment where oil is strongly biased to the upside. think about the fact so much u.s. oil output has not returned post-covid. there is a huge supply gap, even with whatever opec does. and a few swing factors.

upward bias for energy prices. that is acting on yields. that has tripled or quadrupled the impact in europe because of the gas situation. at least probably until after winter is over, or at least the end of winter is on the horizon, you will see this upward bias in yields. there are other things going on. the other thing is what is coming up tomorrow, payrolls, and whether the fed will taper. there is a very low bar for jobs that don't have to come in strong for the paper to be confirmed. that will send yields up in the u.s.. that is why they have been today. >> the other thing happening tomorrow, which we were talking about during the break, china coming back online. how much volatility should we be prepared for? how much coffee do we need to drink before the equity markets? >> i usually like to start with

three coffees. tomorrow i might need to do four. but there could be a lot of volatility. china itself might come back not particularly volatile, or it might. but the other markets will be volatile. you have to look at the way japanese shares have been most of the day. the topics has gone flat. that is counter intuitive. there is nothing that is really going on, you just have cash coming off of the table. who wants to hold japanese shares coming into -- you don't know what will happen overnight. you don't know what china will do. dani: garfield, if anybody else is in sydney with garfield, sent him an espresso machine. thank you so much. that is garfield reynolds.

coming up, boris johnson lays out a plan for the u.k. it faces immediate impediments from the economic turmoil embroiling the nation. can he keep up with inflation? we discuss it next. this is bloomberg. ♪

dani: good morning from bloomberg's european headquarters, just gonna 6:30 a.m. in london. i'm dani burger. progress on the debt ceiling. democrats will accept a republican compromise to allow a short-term increase on borrowing, postponing the risk on defaults. global stocks climb. of the great gas reversal. putin offers to export record

volumes of fuel to europe, cooling surging energy prices. the ecb studying a new bond buying program for one pandemic support -- one pandemic support is phased out. the pinball machine steadying today at least. pointing higher this morning. it is indeed the help from possible relief from a russia when it comes to the energy crisis. the debt ceiling debate put on hold. xi and biden likely holding a virtual meeting. all of that lending support to markets. europe and asia ended in the red yesterday, europe saw more than 1%. the u.s. got a late time boost from the debt ceiling headlines. they ended up higher, hence why we see a little bit of outperformance. tech is the big outperform or. it is despite the fact we see yields climb higher. we are looking at a move of more than a basis point when it comes to the u.s. 10 year yield. .

nearly two basis points. it is not enough to derail the more optimistic outlook we are holding. people happy to buy the dip. looking at a euro at a july 2020 low. oil easing off from the 2014 highs. to the u.k., where boris johnson put forward his vision for new britain at the conservative party conference. >> we are embarking now on a change of direction that has been long overdue in the u.k. economy. we are not going back to the same broken models. we have low wages, no growth, low skills, low productivity. all of it enabled and assisted by uncontrolled immigration. >> his plan to turn the u.k. into a high wage, high skill economy face immediate problems from inflation. one gauge of expectations talked a 13 year high. the 10 year breakeven rate hit 4%. twice the bank of england's target. adding additional pressure for

the u.k. central bank to take monetary action. let's dig into this further. first is our anchor tom mackenzie, who was at the party conference in manchester earlier this week. given the speech she had, do we have an understanding of what is on the johnson agenda? tom: we have a vision from the prime minister. he did not map out specifics. the vision is one of creating a high skilled workforce. reducing inequality on leveling up. repeatedly since the election in 2019. since brexit, as well. we did not get how he was going to deliver on the optimism at a time when britain's vulnerabilities around supply chains, labor shortages, supermarkets exposed quite significantly. he will be under pressure to deliver on specifics. dani: those are a lot of headwinds. how realistic is is worldview, at least for the u.k.? >> business has become a weapon

for him and his party. his team and business to invest and adjust to an economy of higher wages. business coming out saying we need investment and productivity now. these issues facing us now. the cbi nbcc saying their members are finding it very difficult to adjust to these historically high levels of inflation and lack of workers specific roles. you see it across the meat industry, energy industry. it is hitting home. adjusting to that, and boris johnson does not want to see immigration as the answer for these high wages. but the adjustments are needed now. that is the answer, or at least the response. johnson laying out a longer-term vision. >> in terms of the inflationary picture, is it the roadblock, one of the biggest roadblocks johnson will face getting this through? tom: the question for business

is what the government's plans are around addressing these pressures. we talked about the global phenomenon. but are in is at the crucible of these inflationary pressures because of the uniqueness of the supply chains because of brexit. what we are not seeing, what businesses are not seeing are specific measures to address these pressures. the british chamber of commerce saying their members will have to start off -- they will have to pass on these higher costs to consumers. the bank of england concerned about spiraling inflation. costs rise, people ask for higher wages, and it continues. he says it will be transitory, but something he will be monitoring. and the hotspot they are putting israel. if they raise rates, forced to raise rates, that could derail the economy. potentially a recession next year. and lot of the consensus case,

but the view from economies. dani: andrew bailey pointing out what is next, locusts. thank you so much. that is our european market open anchor, tom mackenzie. let's dig into the european story. liz martin joins us. thank you for joining us. you heard tom laying out what boris johnson's vision is for this higher skill, higher wage economy. in your view of where we stand, how realistic is the likelihood we get there? >> i think the productivity is the real issue. we have been looking for productivity gains for a long time in the u.k. it is not clear what this post-pandemic supply constrained environment will generate that new burst forward in productivity. he would hope it would be driven by investment. if we look at business investment so far, it has been relatively weak.

i don't think it is due to lack of confidence at the start of the year, at least. it might be due to the supply constraints. you cannot buy vehicles, machinery, the kind of things you need to invest if they are not available and not arriving from asia. it is a lovely vision, but there are genuine logistical issues. the same for the agenda. do we have the skilled labor and materials we need? the answer, not quite. dani: i was going to ask if we need more fiscal policy to get us there. the supply and issues mean even if you had fiscal policies in place, if you cannot get the material, could it still have any impact? >> that is the point. you don't really need to stoke demand in the economy at the moment. it is not to say they might not fall at the consequence of everything going on. but demand is not really the

problem. having said that, the fiscal policy in place should be supported of investment for now. that is the reduction announced in the march budget. a very generous offer for companies, which should drive investment. i think it would be, if not for the supply constraints. the further we get down the line, it will end. and it will be replaced in april with their national insurance contribution. with the rising corporation tax, at which companies may not feel quite so meaningful to make a big investment. dani: given these are driven on the supply side, you said demand is intact, what does it mean for the boe and their actions over the next few quarters? >> it is tough for the boe. rising concern about inflation. the beginning of the year, everyone said it was transitory.

people saying you can hope by october things would get better, not worse. things have gotten worse, everyone is concerned about inflation. however, as andrew bailey has said, they cannot put petrol in petrol pumps, it cannot put lori drivers into the u.k. workforce. so they should not be making policy to respond to the current inflationary situation. their job is to look at what inflation will be doing and respond to it. clearly they are increasingly concerned pressures will push wages up, in turn pushing inflation up over the medium term. rising inflation expectations from the household. and things look a little bit high above target history, therefore we need to raise interest rates. the question we get is when they do it.

do they wait until february and proceed calmly, or as they have hinted, do they go even sooner? dani: money markets certainly putting an estimate they will indeed move this year. you even brought your forecast for it. i believe you are bringing it forward to february. what does it take to match what money markets say, that it looks like it will be this year that we get the first hike from the boe? >> it is open. i don't think they told us they can go before the end of the year by accident. they meant to signal it is possible, and it is. they will have an eye on all of the data. we will get the data for the job retention scheme at the end of august. it will tell us how reliant people were on that scheme, at least until the end of august before the november meeting. some labor market, but not from the post fellow period.

if they do raise rates in november, it would be without any information on what happened to the labor market, if there has been a big spike. so there is quite a thin basis to raise rates on. i think if they did do it, the reason would be the inflation situation and inflation expectations were really bad and worsened. i think part of it comes from this incredible underlying strength of the labor market. surveys tell us demand is off the charts and supply has collapsed. more of that, more wage growth, more inflation expectations may persuade them. their job is to target inflation two or three years out. as a consequence, it is worth waiting three months, have a look at the post for low data, see where we are and what the demand situation is doing, and go in february rather than rushing into it. dani: liz keeping us informed

and patient. thank you for joining us. that is liz martin. let's get to the first word news with juliette saly. juliette: bloomberg has learned the ecb is starting a new bond buying program to prevent any market turmoil when emergency purchases are phased out next year. the plan would replace the existing crisis scheme and complement an older open ended qe program currently buying 20 billion euros in debt every month. the easing of covid restrictions in the u.k. is charging the market for london's finance job. in september alone, more than 2800 new jobs posted, marking the busiest month since at least january 2014. according to morgan mckinley and data provided, third-quarter postings for more than doubled last year's level. global news, 24 hours a day, on air and at quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg.

dani: juliette in singapore. moving towards an accord. a stocks and futures gain as progress is made on listing the u.s. debt cap. jamie dimon says the limit should be removed. we have the details. this is bloomberg. ♪

dani: welcome back to "bloomberg daybreak: europe." i'm dani burger in london. president biden is planning a virtual meeting with president xi jinping. among the possible items on the agenda, trade and rising tensions over taiwan. antony blinken has criticized beijing's actions, saying they are provocative and is stabilizing. he spoke to francine lacqua, who talk about the phone call last month. >> they spoke on the phone a few

weeks ago and had a productive conversation covering a lot of issues. or whether they will have occasion to get together in the weeks or months ahead, we will see. they are likely to both participate in the g20 meeting, for example. but they had a good, productive conversation. we will continue the work they set out. >> we see incursions of chinese planes in taiwan. is there a redline you think president xi will not cross? does he understand a redline? our tensions high? >> the actions we have seen by china are provocative and potentially destabilizing. so what i hope is these actions will cease, because there's always the possibility of miscalculation, miscommunication, and that is

dangerous. so in the past, we have managed to handle the issues surrounding taiwan in a way that is actually sustained stability, provocative actions going exactly the wrong direction. it is very important no one take any unilateral actions to change the status quo by force. so we really need to see china cease some of the actions it has taken, because they are potentially a source of instability. francine: the u.s. needs to take a hard line, but find eight agreement when it comes to climate change? >> there are many issues in the relationship between the u.s. and china. it is one of the most consequential relationships in the world, one of the most complicated in the world. it has different aspects to it. there is certainly a competitive

aspect we know very well. there are adversarial aspects. there are also cooperative aspects. we need to deal and engage with every single one of these aspects of the relationship. climate happens to be an existential issue that affects everyone on the planet. whether the u.s., china, any other country. china, like the u.s., has great responsibility when it comes to dealing effectively with climate change. we are about 15% of global emissions. china is 36%, 37%. it is important for both of us to step up and meet our responsibilities. that means having ambitious targets for how we will actually curb climate change. it also means making sure we are contributing to help others deal with resilience, deal with adaptation. it means taking important steps, like moving away from coal. francine: there is focus on how the chinese authorities are dealing with evergrande.

how does it tell you about chinese stewardship? >> china has to make sovereign economic decisions for itself we also know that what china does economically will have profound ramifications, profound effects on literally the entire world, because all of our economies are intertwined. when it comes to something that could have a major impact on the chinese economy, we look to china to act responsibly and deal effectively with any challenges. dani: u.s. secretary of state antony blinken speaking to francine lacqua. let's stick with the u.s. democrats will accept mitch mcconnell's offer to allow a short-term increase to the u.s. government borrowing limit in december. a vote is possible today, but it postpones a default risk until the year ends. >> we are making good progress. we are not there yet. i hope we can come to an agreement tomorrow morning.

dani: joining us now is derek wallbank. markets seem to be pretty pleased by the fact this debt limit might be suspended. how much of a win is it for the democrats, given we are not having a wholesale solution to this issue? >> i think this is really an offramp. it is important to note that there isn't a formal deal yet. before the i's are dotted and t's are crossed, things can go wrong. it looks like an offramp, the pathway to not having to worry about this. but it doesn't clear christmas. so it is kicking the can down the road. i know it is an olympic sport in washington, d.c. and everyone will get a gold medal, but it doesn't really solve the fundamental issue. what is going to remain at stake

is the question about whether or not democrats will have to burn off weeks worth of time and take a bunch of embarrassing votes, any use against them in campaigns. i realize to a lot of market participants who don't mainline u.s. government stocks that it seems ridiculous we are talking about the u.s. versus a couple of political considerations for an election more than a year away at this point, but here we are. this is the situation we are facing. i think a lot of it is democrats not wanting to go through and have mitch mcconnell set the agenda in a way for republicans. at the same time, mcconnell wanting to prove to democrats there are things they need republican buy in to get done and he has to have a seat at the table. it is a real oversimplification. but there really are big issues that play.

what we have right now is a reduced emergency for now. but it is not a solution yet. dani: as you said, a lot of dynamics at play. i wonder if we are getting -- perhaps you can describe it as an olive branch from mitch mcconnell. if it does bode well, if he should give us more confidence that we won't have any breach of the debt ceiling, or that risk was perhaps never there to begin with. >> i'm one of the people -- you've known me for a long time -- i am one of the people who often says markets get washington wrong. but this is the case where i think markets have gotten washington quite right. markets haven't been super spooked by what is going on yet. and they have generally thought that given the last 2010 to, pump crisis after pump crisis, things would work out.

it does feel things will work out before we get to the next scenario. you said in what we were talking about in china, you get to these situations and the point where miscalculations become real problematic. you can see on the correct side of the line, but at some point you get so close if you accidentally trip over, you have a big problem. that is one of the long-term trends looking at this, it is worth watching. dani: thank you so much, that is derek wallbank keeping on top of all things washington. coming up, what you need to know , everything to get your trading day started.

dani: welcome back to "bloomberg daybreak: europe." let's take a look at what we are going to be watching out for today.

12:30 p.m. u.k. time, data from the u.s.. it will include consumer credit and initial jobless claims. the jobs data comes on friday. 1:30 p.m., new york fed president john williams speaks at the business cycle dynamics and open economics conference. 2:00 p.m., more central bank talk. ecb's chief economist speaking at a bank of ireland webinar. 2:00 p.m., the federal reserve bank of cleveland and ecb holding a joint conference on the hot topic of the day, inflation. 5:00 p.m., tiff macklin speaks on financial architecture. 10:30 p.m., tesla's annual shareholder meeting takes place. a lot on the agenda. let's take a look as we wrap up. . where we stand on the markets. a much more positive day. you're a stocks, up 1%. will that ping-pong? will the whipsaw of market continue? buying the dip.

. more optimism on energy and politics. the european is up next. this is bloomberg. ♪ (announcer) back pain hurts,

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>> good morning, welcome to "bloomberg markets: the european open." i am anna edwards. mark cudmore usually joins us from singapore. today he joins us in london to take a look at the market action. less than an hour away. here are your top headlines. debt ceiling progress. democrats will accept a republican compromise to allow short-term increase on