haidi: a very good morning. i'm haidi stroud-watts in squid squid -- in sydney. shery: from bloomberg world headquarters in new york i'm shery ahn. the top stories this hour. sucialging energy prices fuel volatility in the stock market as the debate over inflation

concerns intensify. haidi: we take a look at how the rise in energy prices is affecting colombia's policy direction. we will be joined by the central bank governor leandro villar gomez. shery: and chinese banks and regulators may be facing additional scrutiny with president xi investigations into private ties with companies. we are seeing u.s. futures muted at the open. but this after an ugly half-hour of trade before the markets closed here in the u.s. the s&p 500 fell for a second consecutive session. we have fitch rating the u.s. bond market as closed on holiday perhaps really intensifying those market moves. we did see the dollar also continuing to gain ground at a three-week high right now. speculators boosting those dollar bets two-year highs given rising yields and inflation concerns. still the golden dragon, china index unchanged at the close. we actually had it firmly in positive territory. still around that three-week high. we had a smaller than food --

overnight that helped sentiment. and this really not dampened that much by xi jinping assessing ties between financial institutions and big private sector players according to some media reports. but that's something that we will continue to watch as we head toward the china open. take a look at those inflation concerns. because it's all about those commodity prices. glco is your function on the bloomberg. wit climbing to a seven-year high. we're talking around those $80 a barrel levels. right now under a little bit of pressure in the asian session. natural gas falling to the lowest in two weeks. we have those milder weather forecasts really helping the supply outlook when it comes to the rest of the year. aluminum also hit a 13-year high. and remember, the power crisis really putting pressure on that energy intensive metal. iron ore we saw that gain of about 50% in just three weeks. so that's really leading to those inflation concerns.

although soybeans when it comes to food prices, took a hit right there at the bottom you can see to the lowest since december as we are now hearing that we may be getting bigger u.s. supplies. but haidi, this inflation concern with commodity prices surging, the bloomberg commodity spot index at a record high really leading to concerns over where the markets are going to go. goldman sachs and j.p. morgan think that you should buy the dip. because this inflation is going to be transitory despite of course the ongoing debate over stagflation. we are now hearing that finally we got that weakness after 330 days of no greater than 5% pullback. so this may be a good time to buy. haidi: the question is whether that impact on consumer confidence will be temporary as well. because we know that consumer confidence measures in the u.s. have really plunged since that july peak. at the same time, we've seen markets continue to rally, right? morgan stanley wealth, their chief investment officer in particular saying that you could

see that gap really suggest that investors when it comes to stock investors will start to suffer. because you typically see the stock markets move in tandem with consumer sentiment. that's not happening at the moment and that's a warning signal for morgan stanley wealth. shery: and we may be getting those risks in china as well. we saw the consumer spending numbers out of china's golden week holidays. they didn't look very good. they were pretty sluggish. so we will be watching the chinese market very closely as well. we got that report also coming from the "wall street journal" that they're now intensifying that probe into those watchdogs and their relationship with private companies. so that may be something more that we have to keep an eye on. of course, already, a lot of -- a lot to watch in china including debt concerns with evergrande. so haidi, the commodity spike, inflation concerns, along with another potential crackdown in china topping the agenda for investors. let's discuss all of this with bloomberg's su kennan and our markets reporter ye xie. su, let's start with the oil

surge. where are we at now? su: let's go right into the five-day price chart of west texas intermediate which is traded here in the u.s., largely used in north america. reaching an intraday high above $82, up almost 4% suspect managing a close with a 1.5% gain. highest close we've seen in years. but a close above $80. and daniel jurgen who's with i.h.s., he believes that what we're seeing is europe and china switching from natural gas to oil. that crisis putting upward pressure on oil demand that wasn't even in the forecast a month ago. you're looking at brent crude which is now within striking distance of $85. and if we go to the year to date gains for oil and other energy futures, you see that the oil gains are dwarfed by the natural gas gains. and that's really the issue. you got european natural gas up almost 300% year to date. and jurgen says -- and he's a well-known oil historian -- that

when you have natural gas and europe at the equivalent of $200 a gallon, even though it's difficult for generators to switch from burning natural gas to oil, it becomes a consideration further boosting demand. jurgen also believes that the u.s. is likely to ask opec to pump more to ease the crisis. any president he says knows that high gas prices not good for incumbents. lastly let's go back into the bloomberg. because coal prices continue to surge higher in china. china's largest coal producing region has now been hit by severe flooding. and that further threatens the country's already strained power supply. >> we also heard from the i.h.s., the chairman daniel jurgen telling us earlier that coil could hit $90. take a listen. >> well, i think it certainly could go to $90. what's happened is that in addition to everything else that's happening, people around the world, particularly in europe and in china, are

switching from some natural gas, switching to oil and suddenly you've had this upward pressure on oil demand that wasn't in the forecast a month ago. haidi: so the question is where do prices go from here? su: let's go right into the bloomberg. because what you'll see in the big picture chart is prices that haven't been seen since 2014. where do we go from here? as many banks saying $90, $100, even $120. citi is the most recent to boost their forecast. citi seeing $85 to $90 for west texas intermediate. $90 in parts of the winter. let's go to the big picture for west texas intermediate. and when it comes to brent, seeing $90 at various times during the winter. a lot of this having to do with the sudden pressure we're getting in addition to everything else from this asia and european energy crisis. layer on the fact that we've got

gasoline prices at the pump here in the u.s. at a seven-year high. that increases the political pressure, perhaps in the biden administration, and again, there's an expectation that opec which has been sticking to its plan to only gradually increase output will be pressured from the u.s. to boost that a bit to alleviate concerns. there's also an option of releasing the reserves that the u.s. has to also put more oil on the market. back to you. shery: yeah. and those inflation concerns have affected trading today. what was really interesting to me watching the markets was how the golden naz china dragon index wasn't that much affected. in fact, if it wasn't for the last half-hour of trading, we would have been solidly in the green for a fifth consecutive session of gains. so what's leading to all of this optimism in chinese a.d.r.'s? >> to certain degrees, there's a lot of bad news already priced in the market. we've seen this sector hammered

relentlessly the last couple of months. now, we got some clarity like last week, less severe than some of the analysts expected. so we get some like shoes already dropped. a little bit of clarity on that front. haidi: when it comes to evergrande the drum beat of missed bond payments continues. does this change the narrative at all when it comes to the pressure on this company? >> not really. we know that the company is struggling, making its debt payment and already missed several interest payments already. and we have a 30-day grace period that will end probably toward the end of the october. so a lot of uncertainty around evergrande. haidi: our markets reporter ye xie and bloomberg's su kennan there. well, let's take a look at the

broader movement when it comes to the credit space. sophie kamaruddin is on the markets for us. soph. sophie: well, haidi, we are seeing caution over china property. feed into the broader asia credit market with spreads widening and we're seeing the -- also rising for both investment grade and junk names. indian dollar bonds also facing pressure as we see this divergence widen between equity and credit risks. and with that pulling up the next board we're seeing optimism for recovery in growth in india. and continued to power up stocks with the sensex hitting fresh record highs on monday. this as the r.b.i. halting its bond buying program and a move which will accelerate the push for normalization and today's c.p.i. data will give us more clues as to that path for policy in india. and pulling up the chart, this tuesday brings us a rate decision from the b.o.k. which is expected to stand pat. 10 out of 11 forecasters expecting that from south korea today.

which could boost bets for a move next month with policy normalization a key priority for the central bank as it faces increasing financial balance risks and inflationary pressures have stayed high in south korea staying above 2%. the b.o.k.'s target there. shery. shery: many countries facing that inflation pressure of the let's get over to vonnie quinn with the first word headlines. vonnie: thank you. european governments are lang toward backing i.m.s. managing director kristin yorfa. to decide on her future after allegations of he will proper actions during her time working at the world bank. a european official told bloomberg countries including france and the u.k. say they don't see clear evidence against her. southwest airlines has apologized for canceling more than 3,000 flights over four days. the dallas-based carrier said a shortage of workers overlapped with storms and an air traffic control interruption. executive vice president bob jordan denied claims that pilots

were staging a so-called sick-out to protest covid vaccination mandates. merck and its partner ridgeback biotherapeutics have applied for emergency use for their covid pill. the company says the drug is aimed at treating mild to moderate cases in adults at risk of developing a severe illness that may require hospital care. if approved, the pill could be the first oral anti-viral treatment for covid-19. jamie dimon is forecasting tighter regulation for cryptocurrencies. the j.p. morgan c.e.o. told the essence tuitt of international finance that anxiety around stable coins and the asset class more generally is growing in washington. simon repeated huts long held views on bit coin but differentiated between his personal plans and how j.p. morgan will deal with it. >> i think that bit coin is worthless. but i don't want to be -- i don't care. it makes no difference to me. our clients are adults. they disagree. that's what makes markets. so if they want to have access

to buy or sell bit coin, we can't custody it. but we can give them legitimate access. vonnie: global hours 24 hours a day on air and bloomberg quicktake powered by 2,700 journalists and analysts in countries. shery: inflation is the big theme as we continue to see those commodity prices rallying. and it's really interesting because you are seeing inflationary concerns being felt across the world. we have seen, for example, the likes of colombia having to hike rates for the first time in five years. last week, but at the same time, countries like colombia that are big energy exporters were talking about the largest coal producer in south america. the region's third largest oil producer after venezuela and brazil. while they also get the benefits of higher energy prices and we can see that the colombia peso is now the second best yen currency former this month. haidi: this is just another way

that another round of fed tapering, this time around will be very different it seems for emerging markets. you're seeing the same kind of bullish bets when it comes to the russian ruble as well as the optimism over higher oil revenues is being driving this bullish bet into the russian currency as well. and gained more than any owe emerging market currency this month. the nation's stocks also outperform that broad gauge of developing equities have been sinking in the meantime and we are watching that monthly report out of opec this week very keenly as well. shery: what a better time to speak to the central bank governor of colombia leandro villar gomez joins us later this hour to discuss inflationary pressures and where monday tar path is headed in his country. the market outlook from laila pence and how she is playing the latest commodity spike. this is bloomberg.

>> growth stocks have had an incredible run and the winners, the drivers of this bull market. i think we're starting to see some cracks emerge that there's just -- there's probably better places to put your money going forward. haidi: veteran investor telling traders to cut their exposure to growth and thinks banks will be the main beneficiary if the fed is forced to hike faster. our next guest says inflation won't rise enough to force the fed's hands. let's bring in laila pence who is the president of pence wealth management. laila, how do you characterize the price pressures that we're seeing? laila: well, you know, it's to be expected with the rise in inflation everywhere right now even though we just think it is transitory. and like it will definitely force the fed eventually to raise interest rates. but they can expect -- they can live with a lot more inflation before we do that.

we don't expect rates to go up for another year or so as long as the market knows it's coming. and they will be prepared for it. we do need a bit of inflation, to have some inflation, so they can live with 3% inflation without doing much to the market. haidi: can the consumer live with that, though, right? because we heard from morgan stanley wealth saying that they're really concerned that the plunge in consumer sentiment is going to cut -- catch up with markets eventually, especially if it means less spending means that we're going to see earnings revised downward. is that a real risk? laila: i don't think so. just because we do have the highest interest rate in the -- examine of savings. you know -- excess of savings. the reason there is inflation is because there's money in the market and really hard to have a bad market when there's so much cash and so much infusion of dollars in the economy. and so people are buying.

i know real estate is up, things are up and people are buying, because they can live with that. own oil prices going up, they can live with that. a lot of them going more into electric cars to offset that. so-the-something that we've needed for a -- so it's something that we've needed for a long time to have some inflation. granted, it's gone up a bit more and wage inflation is certainly going to be here for a bit longer. but that -- that's good for the economy. because we'll get more money. shery: with rising yields we are seeing banks rising. they're one of the biggest gainers on the s&p 500, this g.t.v. chart on the bloomberg shows the best year versus the s&p 500 since 2000. we are getting those earnings results this week, right? laila: yeah. they make so much money on the spread of interest rate financials. and they've really -- we do think there's more -- one of our convictions is to add more to financials. there's a lot more room to go.

we don't know. and they are making money without even higher interest rates. and now with higher interest rates, they're going to make a lot more money. and a very good place to be. and it can hike their dividend as well. shery: who is not making that much money, energy stocks. why do they continue to lag energy prices when crude is soaring? laila: you know, i look at that as well. and would seem that they should have gone up. but they're down today. even though oil prices went occupy -- went up. long testimony, more and more cars are getting away from using gas and the whole electric mode. so if you look long term, we think oil prices are not going to keep going up. we do think opec will probably increase their output here pretty soon. so, you know, if you look at the long-range, we see downward trend. and so it's hard to buy today

for a very short term. shery: laila pence. great to have you on. president of pence wealth management. coming up, changing. guard at k.k.r. billionaire co-founders henry kravis and george roberts are handing over the reins and insights on the future of the bloomberg. -- of the firm. this is bloomberg. ♪

haidi: business headlines. a.b.n.amro a management revamp as the dutch banks pushed ahead with plans to exit investment banking and refocus on corporate lending in europe. the restructuring will see a.b.n. amro axe 2,800 jobs and cut a third of its business from corporate clients and drop company finance outside of europe and exit trade and commodity financing ault altogether. credit suisse is delaying publishing a report into the collapse of a $10 billion group

of investment funds that it ran with greenfield capital. the bank had opened to prevent key findings with its third quarter results and executives want more time. looking at how they can recover money for investors. and evergrande's e.v. unit says it will deliver its first vehicle early next year. making the commitment just weeks after admitting cash flow difficulties. the evergrande plant is located in china's tinden regionallen and provide help to ensure the company can achieve mass production goals early. let's take a look at the day ahead for australia and new zealand now. and new zealand has extended that lockdown in auckland for at least another nine weeks. and pushed back plans to reopen schools in the nation's largest cities as the coronavirus outbreak continues to spread. here in australia, n.a.b. set to release the september business confidence report a little bit later on. and the final three months of this year are looking pretty bright when it comes to the i.p.o. pipeline. the current lineup on course to cap the largest annual tallies

in 2014. we continue looking at g partners, $955 million deal would be the largest in australia since 2018, shery. shery: yeah, haidi. let's turn to the billionaire founders of k.k.r. they are giving up their leadership roles. henry cfaies and george roberts are stepping down after dominating prievment equity for almost half a century. joining us now to discuss is bloomberg wall street correspondent. so the old guard seems to be letting go now. >> yeah. it's pretty remarkable. because we know that joe bay and scott nedal were elevated as co-presidents a couple of years ago. four years ago really, 2017, since then, the stock has tripled. so they have really seen -- overseen a time at k.k.r. where they have tremendous asset growth. significant rise in their stock price. expansion across the world. and a very different firm than the buyout firm that we knew from barbarians at the gate.

haidi: so what are the implications then in terms of any kind of change in vati or change in direction? >> yeah. let's look at the talent first of all. we have joe bay who really did help expand k.k.r. across the world. look at their expansion in asia. a lot of that had to deal with joe bay. scott nedal had to oversee a lot of the new strategic initiatives. capital markets as well as credit and hedge fund businesses. that have helped shape the firm into new business lines as well. so that you can see them continuing on, innovating beyond private equity and into new spaces though private equity still very significant part of their business. and then we just have them turning into a one share, one vote governance structure which really helps draw more institutional money into the firm. index adoption and it's something you've seen also adopted over at rivals like apollo and carlisle as well.

so in addition to the leadership changes, haidi, we also have that governance change announced today as well that you'll see happen over time. haidi: so tell us a little bit of the legacy of the old guard from barbarians at the gate. >> remember, it's k.k.r., car legal, blackstone, apollo, they have started this buyout business that now competes really with next to nobody else in the world, right? as -- not much beyond that, beyond that they have created an asset class that has now become the main asset class when you talk to pension companies and insurers around the world that are searching for yield. so the investment side, you have an asset class that has been heavily relied on at a time of low interest rates and, you know, hard to find alpha. but also this culture of rough and tumble buyouts. i mean, the drama is also everyone really looks to. but these days, shery, it's really about the

diversification. and assets like infrastructure and insurance. as well. haidi: our bloomberg wall street correspondent. we do have more to come on "daybreak: australia." this is bloomberg.

sales which is -- >> we are recovering hour job creation and my goal is by the end of the year we will be in pre-pandemic levels. shery: could the monetary normalization process affect this? leonardo: yeah. sure. that's part of the -- what we have. and that led us to start a process of normalization. we started this year thinking that we will have our recovery process. but that we will -- we would grow by 26% in 2021. today our -- our forecast is to grow by 8.6%.

so it's -- what we are -- double what we were thinking seven or eight months ago. shery: so when it comes to the broad markets, what do you expect foreign investors to understand about the colombian economy and about colombia's monetary path? because we continue to see a little bit of uncertainty given that we're also headed toward a presidential election next year. leonardo: well, it's important to keep in mind that colombia, with volatility, but we moved in the right direction. and that is shown by the recent approval of fiscal reform which is not the idea of reform. not the reform with the size that we need. we still need additional reforms

but we are moving in the right direction. and we are able to build consensus to move in that right direction. shery: do you expect more fiscal reform to come after the presidential elections and what would that do to your monetary path? leonardo: well, we have to wait and see what happens with the presidential election. and we of course have to decide our monetary policy taking in mind all the information that we gained at any point. we will receive information about the recovery, about the fiscal stance and about the type of policy that the u.s. will have and decisions based on that but with a clear idea that we are an entity with a very clear goal which was set in the constitution. shery: governor villar, before we let you go, i know you've made some comments on cryptocurrency that they need to be regulated and we know that

colombians used digital assets very much at this point. what do you want to see and what's the viability of cryptocurrencies in the colombian economy? leonardo: well, that's something that is very difficult to decide now. because we have to study much more about cryptocurrencies. and we know that there are transactions, important transactions in colombia with cryptocurrencies but they are not made by the financial sector. in order to have them through the financial sector, we will need to be able to trace those transactions and to discover where those -- that money comes from. and a country with an history of illegal transactions it's very important to know very well the

possibility of any transaction from abroad. shery: governor villar, it was really a pleasure having you on. thank you very much for all of your insights about colombia, the economy there, and the monetary path. and leandro villar, thank you very much. leonardo: thank you very much. shery: in the united states goldman's chief economist jan hatzius expect the federal reserve to start tapering at its next meeting but doesn't see rate hikes until 2023. he spoke to bloomberg's tom kean and jonathan farrow. >> the economy will slow quite a bit in -- in 2022 and we have it going to just under 2% by the fourth quarter of next year. in the near term, i think there are still some reasons to expect stronger growth. the trend is down. but i don't think it's going to be a straight line. we'll still get some boosts from the receding delta wave.

and consumers have a lot of pent-up savings and the inventory cycle is also going to boost growth. but these are all relatively short term drivers. and going forward, further on, i do think going to be a -- going to be independently soft. >> whatever the inflation -- the flavor of inflation here, what does it do to the wage and inflation-adjusted wage? >> i think that really depends on whether you look at the top end of the wave distribution or the bottom end. i think at the bottom end, we've seen a sharp acceleration in wage growth. we think to about 6% if we adjust for all the changes and composition. and that's obviously, you know, the strongest we've had in many years. i do think that the expanded unemployment benefits were a big driver of that. and now that those have ended, i think we'll see a deceleration there. but in the middle, and upper end

of the income distribution, we'll probably see continued gradual wage acceleration as the labor market tightens. and i still think it is tightening. so overall, we have wages going sort of roughly sideways in the 3.5% to 4% range that's our current estimate of the underlying pace. and then the real wage really is going to depend on what happens to inflation. in the short term there is no real wage growth. and in fact, real wages probably declining slightly. because inflation is higher than that. longer term as you go into 2022, i think we'll again have real wage gains. >> so jan, help me understand next year, 4% is the baseline for the year but i'm more interested in the back half at 2022. are you seeing 1.5% to 2% g.d.p. growth by the team we get to the back end of 2022? >> that's right. the 4% is in part being driven by the strength in the labor

part of 2021. that has a statistical carry-over into the year. but as you go through the year, and especially into the back half, we have it at 3% in q-3 and then 1.75% in q-4. so definitely a trend toward slowdown. consistent with some of these temporary positives petering out as you go through the year. >> jan, how do you think the federal reserve will respond to that? will he loob -- will they be looking at the cumulative gains you point you had and still be decent in the labor market or will they be worried about growth slowing back below 2%? >> near term, of course, tapering is very likely to be announced at the next meeting and that will take until the middle of 2022. and then i think the question is where is growth? where is the labor market? where is inflation? under our forecast, growth is much more moderate. and inflation is on itsway back down to something like 2% on

core p.c.e. in that environment i don't think they're going to move directly to rate hikes. and we have the hikes not starting until 2023. but of course it's really going to depend on the data and how they compare with the criteria that the committee has laid out. they've been very clear about that. haidi: goldman sachs chief economist jan hatzius speaking to bloomberg's tom kean and jonathan farrow. we have the latest when it comes to this ethics review at the i.m.f. the u.s. telling the international monetary fund board members that it won't be seeking for the removal of the managing director kristalina georgieva over allegations she had improperly taken actions and interfered with the world bank report to help china. that is likely clearing the way for her to be able to keep her job. let's get some reaction now from kathleen hayes who has been following this story. and we know that some of these legal meetings took place over the weekend as they really went into damage control over this

issue. what do we know? kathleen: well, actually, they were even meeting today, haidi, and the word was that they would continue meeting on into the evening potentially. so yes, it's important that the u.s. has weighed in. the u.s. of course is the biggest donor to the i.m.f. so they -- the u.s. has a lot of say. clearly it seems to me the u.s. treasury now is stepping back. they're not going to say yes, we think kristalina georgieva the managing director of the i.m.f. since 2019 should step down. is that the same as throwing your support behind her? i would say to a certain extent it is. so -- and this is a very critical time in the sense because the i.m.f. world bank and -- annual meetings have gotten under way. the i.m.f. will be putting out some important reports tomorrow. so they're worried about how this wave on its credibility to have its current managing director who was the c.e.o. of the world bank until 2019 being accused i guess you would say by wilmer hale, the law firm in washington that did this report.

at the behest of the board of the world bank after a couple of employees apparently complained that they had been pressured at one point to boost china doing business rankings. but this is -- this is a management turned over to the i.m.f. if they need to take a step because she is no longer there. it is very important as well that european officials are starting to throw their support in behind her. shery: i think we heard from the french finance minister official. kathleen: we heard from a number. let's put this in perspective, shery. why do we taker what the french say despite the fact they're france, right? first of calling the head of the i.m.f. has to be european and head of the world bank has to be an american and that's how they were set up. five managing directors of the i.m.f., five of their chiefs have been in fact french including christine laggard. so the french finance minister saying he doesn't see the evidence really supporting

necessarily supporting kristalina georgieva put this pressure on people. and there were other officials, at wilmer hale including the former president of the world bank mr. kim also they say he put this pressure on to move china's rating to keep it doing business ranking at 85 instead of 78. why is this so important? let's listen if we can to what paul roamer had to say. he is the former president -- the chief economist at the world bank. he worked for georgieva. he was on bloomberg television today with david weston. he said actually it's embarrassing to see all these allegations coming out. and when you listen to him you get the sense he feels they are probably true. that this kind of thing was happening around this -- doing business ranking as it got more and more hype around it. let's listen to paul reomer. >> these bankings have become a point of pride and real competition between countries. so there's always some pressure from countries to try and adjust their scores. they get it -- an advanced warning about what their ranking will be each year.

and the underlying problem here is that there was a willingness inside the bank to go back and basically change the numbers to favor a particular country in this country china. kathleen: fair of any. -- fair enough. people say there are politics involved when you see france and the u.k. saying they just don't see clear evidence against georgieva when you see italian officials saying we -- we're sticking up for -- the europeans as well. maybe more damaging details would change our mind. but with the u.s. jumping in now, i would imagine if we hear from the i.m.f. soon which we probably will it will be thumbs up georgieva gets to stay on as head of the i.m.f. we shall see. shery: we will be watching out for that and kathleen hays will give us an update of our global and economics policy editor there. let's turn to the first word news with vonnie quinn. vonnie. vonnie: shery, thank you. three academics at u.s. institutions have won the nobel prize for economics. david card, joshua angris and guido inman were honored for

their work analyzing labor markets and natural experiments. the royal swedish academy of sciences says the three demonstrators that many of society's big questions can be answered. the winners will share award money of $1.1 million. >> i think we've certainly had on the side of putting too much faith in the models and a lot of the methods have been developing have been trying to get away from that and trying to make these methods more robust. vonnie: southwest airlines has apologized for canceling more than 3,000 flights over four days. the dallas-based carrier says the shortage of workers overlapped with storms and an air traffic control interruption. executive vice president bob jordan denied claims that pilots were staging a so-called sick-out to protest covid vaccination mandates. merck and its partner ridgeback biotherapeutics have applied for emergency use authorization in the u.s. for their covid pill.

the companies say the drug is aimed at treating mild to moderate cases in adults at risk of developing severe illness that may require hospital care. if approved, the pill could be the first oral anti-viral treatment for covid-19. global news 24 hours a day object -- on air and on bloomberg quicktake powered by more than b 2,700 journalists js and analysts in 120 countries. shery: blent more on "daybreak: australia" including bit coin trading above $57,000. this is bloomberg.

>> i personally think that bit coin is worthless. but i don't want to be a -- i don't care. it makes no difference to me. our clients are adults. they disagree. that's what makes markets. so if they want to have access to buy or sell bit coin, we can't custody it. but we can give them legitimate as clean as possible access. haidi: jamie dimon there on cryptocurrencies and look at the assets right now. a little bit of a mixed picture with bit coin under pressure but still above that $57,000 level. we are seeing some easing of regulatory concerns. not to mention perhaps some renewed optimism about a possible s.e.c. approval for a cryptocurrency e.t.f. galaxy crypto index now gaining above that $3,000 level.

take a look at the commodity space. natural gas higher at the moment. but still below that $6 level. and after hitting that 12-year high. we are seeing some milder weather forecast. aluminum still hitting that 13-year high. and the power crunch really affecting that energy intensive metal. iron ore at the moment holding at that $130 and trading in singapore soybeans are falling to the lowest since december. we might see some bigger u.s. supplies. but sophie, let's stay with commodities in the morning call. what are you watching? sophie: yeah, shery of the i want to drill down to -- margins returning to pre-covid levels and switching out the board as certification, b. the levels refineries will want to process more crude to make more oil products and that will signal real demand kicking in to underpin oil prices. a trend that will benefit energy exporters but flipping the board over at socgen they are saying there will be a hit to importers external balances and

deappreciating pressure on the search for energy underscoring the inflation threat. and pulling up the terminal this month, we are seeing the currencies of energy importers lag commodity linked forex this month the russian ruble and the colombian peso among the big performers so far this month. we are seeing the process of policy normalization under way in colombia as the economy there heats up, haidi. haidi: yeah. and commodities have been a big part of the story when it comes to colombia's economy. a big part of the conversation with their central bank. and that happened a little bit earlier. we do have more ahead on "daybreak." this is bloomberg.

haidi: let's take a look at how we're setting up this tuesday session on the markets. we are looking like some investors really trying to struggle to price this inflation risk. we're looking at a pretty mixed picture going into the start of trading. the nikkei futures are just staying in the green at the moment. but we are seeing new york crude continuing to trade still above $80 a barrel. sydney futures off .5% and energy producers and miners given the surging inflation and energy prices, and elevated inflation stoking -- being stocked by energy costs as well. a possibility of a widening chinese crackdown. those evergrande worries ever -- evergrande as we count down to the start of trading in china.

shery: much to discuss. everyone needs to stay put on bloomberg tv. we will be discussing all of those concerns with riverfront investment rebecca felton next. the australian open is coming up. this is bloomberg.

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>> welcome to "daybreak asia". >> i'm sophie kamaruddin in hong kong. >> good evening from bloomberg's headquarters in new york. our top stories is our. asian stocks sets us up on concerns about elevated inflation and