haidi: very good warning and welcome to "daybreak: australia." sophie: we are counting down to asia's major market open. shery: the top stories this hour, tech stocks climb,

pointing to possible november tapering. shery: the world's fourth biggest iron or producer plans to reach zero emissions. shery: the s&p 500 up and rebounding after three sessions of losses. the white house helped broker an agreement with the port of los angeles to operate continuously that helped reverse an earlier spike in yields. the supply chain concern being felt across markets. the nasdaq outperforming,

rebounding after falling in the session. opec revised down its estimate for 2020 global oil consumption. rick kicking off arnie season for the fourth quarter, j.p. morgan

some of the money was allegedly erected to a hedge fund. finance ministers from the world's biggest economies, 136 governments earlier reached a deal over minimum wage. plans for digital taxes have also been scrapped after the u.s. input. there will be a summit later this month. opec has lowered estimates for global oil consumption this

year. demand growth is now seen at a high of 8 million barrels. expected to boost petroleum use in some areas. however, opec says that would curb demanding other fields. the eia has hiked its price forecast by about six dollars a barrel. china is promising its people will be kept warm this winter and long-term climate goals will be met. officials say coal supply is secure. meanwhile there speeding up construction of wind and solar projects. the government says it will lay a pass to decommission's. global news, 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. i'm vonnie quinn. this is bloomberg. shery: still ahead, one of the world's top iron or producers is going green.

the chairman will discuss his net zero plan and a push into hydrogen. and u.s. inflation runs hot, managing director teresa jacobson joins us next. this is bloomberg. ♪

>> i actually live through as a college student, the great stagflation of the 1970's. i believe it's more than transitory. >> as long as we see inflation expectations remaining anchored, we expect to see return to

normalcy by next year. >> coal prices are a serious challenge for the global economic recovery. for higher inflation. >> you clearly see the inflationary pressures. >> the baseline case is not for immediate stagflation immediately on the horizon. shery: our next guest expects s&p 500 to rise to 5000 by late next year. will discuss the opportunities with teresa jacobson, managing director at ubs private wealth management. great to have you with us. we have seen the kbw index surging more than 40% already this year. this chart shows are seeing some of those becoming challenged. what are we expecting this

earnings season for financials? it seems were having some technical difficulties with teresa, but we are trying to get her thoughts when it comes to those bank earnings. we have seen already ap morgan coming out with their results, and we have seen some long growth remaining challenged despite the fact that dealmaking was another record year. will be back with teresa in a couple of minutes. we have plenty more to come on "daybreak: australia." this is bloomberg. ♪

shery: welcome to "daybreak: australia." we're joined again by teresa jacobson, who sees opportunities in financials.

think so much for hanging around. i was pointing to the technical challenges at the moment. how are you expecting the third quarter earnings season to play out? >> we think earnings will play out very well for financials to be not only financials but broadly for the market. so for a little over 22 companies in the s&p 500 have reported earnings and over three quarters of them have beat sales and earnings estimates. the earnings beat is not as great as it was in the second quarter but still we expect earnings to beat estimates going forward. so we are looking forward to a very good quarter. shery: we've seen concerns about inflation, stagflation and grow starting to take a hit given that monetary and fiscal stimulus are being paired back around the world. the rallies have been pretty

huge in the past year. >> stocks have done very well, but we think they have more room to run for the fourth quarter. while some of the inflation numbers have been a little higher than expected, the earnings outlook is still positive, certainly this is not the 70's with inflation, and the supply chain issues dissipate over the globe, he we will start to see the inflation start to come down and normalize. we do not think it will have a big enough impact to repair the fourth -- third quarter earnings. haidi: does that start changing if we see the impairment on consumer sentiment? we are seeing a pretty big gap when it comes to how investors are perceiving the economy. >> investors certainly have a

good deal to deal with, not only supply chain issues, the covid variant, tax increases, changes that the fed, possibly, with tapering and interest rates and possibly a change in the committee going forward. so i think it is a lot for investors broadly to deal with but the consumer is in very good shape. i think investors were certainly be rewarded if they stay with the areas of the market that we see strength and energy stocks, cyclicals, things that are not subject to supply chain issues and companies that have pricing power. so we think there is a positive outlook going forward for the fourth quarter. haidi: interesting that you're neutral when it comes to chinese equities which on the whole seem more positive against the

backdrop of everything going on with the property sector. what we do need to see is a positive catalyst for increasing that position? >> yes, we are neutral on china right now but it is primarily because of the regulatory issues. what we want to see is a lower policy risk element there to be more positive on china. so until we see that, or certainly going to stay neutral on china. haidi: great to have you with us, teresa jacobson. managing director at ubs private wealth management. sources tell us that amazon.com is shopping for used boeing 777 and cargo planes. both plane models are a notch above its current fleet.

delta airlines fell by the most in a year after warning that rising fuel costs threaten the earnings outlook. the carrier says revenue return to 66% of pre-covered levels in the previous quarter. net income came to $194 million or about early since a share. american and southwest will post next week. honda is doubling down on electric business in china pledging that all models will be back in powered by 2030. they will build two new factories in china beginning in 2024 and is planning to introduce to new electric models within five years. honda wants to completely ditch combustion engines by 2040. and a look at the day had for australia, the september jobs report is due.

economists are predicting a large decline in positions due to disruptions from the delta variant. will also be watching the commodities sector after output figures are released. coal production rose 15% on the year in the third quarter. we have lots more ahead on "daybreak: australia." let's look at what were setting up for when it comes to trading, the earnings beat continued today and in the meantime trading is modestly higher. sidney futures looking like a positive start to the trading session. the kospi indicated higher, a big day expected ahead in semis

and the tech sector. lots more to come. this is bloomberg. ♪

>> you are watching "daybreak: australia." treasury yields flatten after a tougher than expected rise reinforced the view that the fed will soon start to move on monetary stimulus. matching the biggest annual gain since 2008. minutes from the fed september meeting show they could start

tapering bond purchases as soon as next month. the world health organization has proposed a new team to lead an investigation into the origins of the cover 19 pandemic. the 26 proposed members were selected from 700 applications. expertise in a range of areas from epidemiology and others. a poll has found the pandemic wiped out the entire savings of almost 20% of u.s. households. the survey of more than 3600 people nationwide suggests black and latino families were hit hardest. the robert wood johnson foundation poll shows households learning -- earning less than $50,000 per year show they had trouble affording rent and medical care.

warning executives that jokes about transgender issues were potentially damaging. the company facing an internal -- a walkout before october 20. netflix encourages employees to disagree openly. global news, 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. i'm vonnie quinn. this is bloomberg. haidi: santander is highlighting challenges banks face. >> i think the next big thing which is already here actually, is crypto. it is already happening. we talk a lot about the central bank digital currencies, the

fact that we already have around $100 billion of stable u.s. digital currency in the u.s. today, unregulated, outside the system. so how do we think about that? there's a huge amount of innovation happening. is very much systemic, it's about monetary policy and how that gets managed. whether it is inside or outside the system. this -- we are sort of a leader in crypto. we issued the first into in product, we have a strong grip on that. the big thing is how will central banks want to manage this? will they manage it themselves, will they create a framework and tell us how to do it? i think that will be working

with us, with the banks. it's also a role we want to play in that value chain. >> do they come to you? >> they do, but we've been slow in adopting that because of compliance and risk regulatory appetite. but we are now getting into it. so we are about to offer or are offering crypto etf's. it's about knowing your customer but being able to offer the product. shery: take a look at some of the crypto assets right now. bitcoin rebounding above that $57,000 level, running toward its all-time high. remember it jumped 90% since a low back in july. some saying 85,000 is a possibility soon. we have seen those crypto assets now worth $2.3 trillion.

that's about 200% more than at alarm, sayinthisa huge in 2008. haidi: and there's really nothing that raises concerns and warning signs, when you're talking about cryptocurrency, but we are used to these extremes when it comes to size and narrative. $2.3 trillion is what we are seeing crypto assets being worth at the moment. the boe governor saying you don't have to account for a large portion of the financial sector to trigger financial stability problems. when something is growing very fast and unregulated way, authorities will have to stand up and take notice even if it's

not really a big part of institutional finance at this point. shery: sort of like what happened in 2008. it wasn't a huge part of the global market but a small part really spread through the financial system. so no wonder we are now seeing these alarm bells go off. haidi: up next, we continue to march toward going green. we'll talk about the iron ore producers push into net zero emissions goals. lots more to come. this is bloomberg. ♪

>> time for morning calls ahead of the asian trading day. a renewable energy supply deal, a note out from bank of america with strategist weighing opportunities as well as risk from decarbonization which put 2.3 trillion dollars of global stock market value at risk. the bank saying that with energy investments expected to hit more than $5 trillion per year, that opens up opportunities in areas like wind and solar.

shery: let's -- sources say the white house has been speaking with u.s. all and gas producers about helping bring down rising fuel costs as we continue to see oil above $80 a barrel. iron ore extending the drop and were seeing waning demand, china pressuring the iron ore issue. we will see a bump -- bumper crop despite the fact that we've seen an unrelenting drought. haidi: fortescue is the world's fourth largest iron ore reducer and his claimed to have zero iron ore emissions within two decades, setting it apart from its global rivals who cast some doubt on the technology of that being able to happen.

the founder and chairman andrew forster is here. always great to have you with us. by a lot of estimates the role of hydrogen would help cut greenhouse emissions globally by about .10 level by 2050, but that's not the whole piece of the story. andrew: i would challenge that, i would say that green -- dirty emissions from heavy manufacturing is at least 25% of the whole of the world's emissions. also green pneumonia and green electricity, very much looking forward to that future. i think it could be closer to 90% or 100% if we really get our policy correct. haidi: what would you then say

to some of these skeptics, saying it will not be a rival to coal for at least another decade. do you think we can get there cheaper and quicker before then? andrew: i think it will rival within a decade, but it will not completely remove coal. we will move on from oil, gas, and coal. the argument is that we have so many more thousands of times more abundant renewable energy then reserves in the ground. let's stop dithering and mucking around and make the switch to green soon as possible, going completely green by 2050, if not much earlier. haidi: how do you plan to finance all of this? andrew: finance i don't think is the issue. policy-setting with the government supporting their economies, going green. you've got around 120 trillion

already committed, half the investment capital around the world already committed to backing those countries that are committed to going play the green by 2050. the other half will be -- now's a time to make sure that liquidity is available for great international projects. that is our job. shery: when it comes to all of these projects, how important is it to really drive down cost in order to make them viable? andrew: we are doing it right now. we've established a project and will establish another one which can manufacture all the great products which the green future is going to need. a little machine splits water into two valuable commodities, hydrogen and oxygen.

right now i can buy a one megawatt machine for a million euros or a little more. will be building 400,000, that's a drop of 70% right there in our most critical element. shery: does that make you more competitive against china as well as a global leader in the manufacture? andrew: australia is a global leader in having everything which the green future needs, all the elements, renewable electricity. it stands to reason that we should also come and being smart, hard-working people as well, be able to make 100% of the manufactured items which go into the industry comes from

overseas. i think it's time to stop that and say, we're going to be such a massive consumer of photovoltaic cells, everything to build up the green future, let's make it right here in australia. haidi: hydrogen is not for every purpose, i imagine, because there are lots of things where electrification or renewables exist at a cheaper level. andrew: i completely agree. we are envisioning a future with great electricity, ammonia, and hydrogen. we see these three elements coming together to completely replace dirty emitting sources by 2050 if not before. haidi: it's still not clear if the prime minister will -- what are you expecting from the

government in terms of a cohesive, unified set of policies? andrew: it is important, our prime minister it is leading on the countries with the greatest potential to build out green energy and really grow the economy. our prime minister will become even better known globally. i think our prime minister should go and he probably will go because he sees it as responsible for his country to be leading from the front where the world is going to be watching and the future of australia will be on the line. that's where our prime minister can really lead our country. haidi: i think so much of the climate change policy in the country has been due to vested interest. how do you think that would

change, and if government policy doesn't make that commitment, and the private sector really take its place? andrew: i think you're seeing change. there are massive projects in any factoring and production of green energy. making green electricity is pretty easy. everything the world needs. now that you've seen respect globally and fortescue metals group reaching out and doing it themselves, you've seen change happening, not gradually or slowly anymore, but suddenly and quickly. the government is coming on board. there are changes of policy. it's the correct time to be part of it. haidi: what is it about blue hydrogen? andrew: from a carbon

perspective, you're better off burning it and keeping it as electricity. making it hydrogen unfortunate means you're much better burning it office coal fuel or can circumvent carbon emissions, is because it is a fake green fuel. it is the same molecule once it is made, but the process to get there is unfortunately very dirty and there is no hiding from that. haidi: always oppressed -- always a pleasure having you on with us. we've seen research that shows the divide between rich and poor nations will just widen as the planet heats up from global warming. it's not just a scientific issue, it's very much and equality issue as well. were talking about studies on climate impact climate change. over the past seven years we've seen the hottest on record when it comes to climate conditions

and a lot of that impact falls on the poor nations, especially amid the confluence of the global energy crisis and the global food crisis as well. shery: the international energy agency today coming out and saying there hasn't been enough investment into future energy needs, and there needs to be more spending on green energy and fossil fuels. not surprising that energy demand is expected to surge in the poorest parts of the world like india and nigeria, and only 5% of indian homes have ac. nine out of 10 homes in the u.s. have ac. so there is a very big and wide gap in equity when it comes to energy use and also the impact of climate change as well, as we head toward prop 26 in glasgow. we continue to hear the voices from more developing nations. emphasizing how important it is to allocate capital to lower the

mitigation costs and investment to help adapt to climate change, emphasizing a just transition that needs to take place. we will continue the conversation as we head toward prop 26 in glasgow. amazon appears to be escalating the fight for the skies as they look to find more cargo in-house. we have more details, next. this is bloomberg. ♪

shery: bloomberg has learned that amazon is shopping for used long-range cargo plane as the company looks to move more product from countries like china on its own. i tech reporter is in seattle. what do we know about amazon's plans? >> we know that amazon is shopping. there are seeking airbus and boeing planes. the reason you would do such a purchase is to take things intercontinental. in amazon's case, to get products from east asia to the u.s. or europe. haidi: does that mean they're looking to increasingly bring more work in house? >> amazon has built a robust

internal logistics operation. they can transport between warehouses with trucks and increasingly they're looking to acquire their own planes to move things within their network. shery: what do we know about the relationship between amazon and air cargo carriers? >> it's a little complicated. amazon is ups's biggest customer. they don't have a strong relationship with fedex. amazon will say they need all the capacity they can to grow and they still rely on partners and still have a good relationship with them. haidi: matt day there in seattle on those changes that amazon. jp morgan saw dealmaking almost triple. helping the bank beat estimates

to just under $12 billion. jamie dimon says the bank will spend whatever it takes to keep up with the competition as it looks to boost its presence in tech. and a 12% increase from the year before, investors raise the revenue outlook for the year ending 2022, underscoring how i.t. spending continues to grow even as the pandemic forces more migration online. and hoping u.s. regulators will greenlight an etf, planning to invest in contracts that trade on commodity exchanges. the etf would directly track the world's largest cryptocurrency as measured by the bitcoin index. shery: minutes away from the

open in australia. let's turn to sophie for what to watch. sophie: we did see softer coal sales as the supply chain has hampered it shipments but whitehaven set up for a net cash position that will help it tear down its debt. rbc expects you near-term cash generation to stay strong but there is risk from acceleration in energy prices. commodity supported in china. a 45% interest in a copper mine in sierra quarter. haidi: coming up in the next hour, weighing in on the inflation debate with price

pressures continuing to run hot. cpi numbers out of china today as well. supply chain issues are not going away anytime soon. let's get you a check of the markets. this is how we are setting up when it comes to the thursday session. new zealand trading higher about .4%. sidney futures taking up even further with asian stocks set to rise. longer-term treasuries falling, lending a little support, and awaiting those fed minutes as well. s&p futures up by about .10%. that's after u.s. shares snapped a three day losing streak. that's about it for "daybreak: australia." we look ahead to the asian trading day, we do have those inflation numbers out of china. were expecting muted price

inflation to come in. hovering at around a 26 year high. also monetary policy setting out of singapore today, that announcement in terms of the currency trading ban is expected in the coming hours as well. sidney futures up by about .9% as we head toward the open trading here in austria, just a few minutes away now. this is bloomberg. ♪

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haidi: welcome to daybreak: asia, i am haidi stroud-watts in sydney. sophie: we are counting down to asia's market open. shery: our top story this hour,