bpó)manus: good morning. it is "daybreak: europe." a reduction in bond purchases by the fed is all but certain today. global stocks are mostly lower after fresh highs in the u.s. a much-anticipated pledge to cut methane emissions gets the

support of more than 100 countries in the final day of world leaders at cop. finance firms representing $130 trillion worth of assets sign up to zero pledges. we are speaking to richie soon at -- rishi sunak in glasgow. breaking news, lufthansa deliver their numbers, surprise profit as bookings surge. the numbers, 17 million euros in the green as opposed to a loss estimated at 169 million euros. a third quarter net loss of 72 million euros, the estimated loss 213 million and a free cash flow of 13 million euros. by the way, lufthansa is leading the league table in terms of

putting more flights on the roster. lufthansa flew 479 flights in 2020. you are still looking at a lower number than that. we are seeing a surge by lufthansa in terms of the flights they have been delivering and turning around. summer profits based2÷ largely n the record results of cargo and the network airlines that normally drive the business reporting a loss. there is no irony lost on anyone. we will return to lufthansa in a moment. let's set the stage. we are expected to taper $15 billion a day from the fed. as the narrative was regained yesterday, we signed massive repricing in the curve in the united states. it dropped in march 2020, because philip lowe made it very clear.

stepping back is not tightening. that is what pamela must deliver. philip lowe's narrative had a pervasive effect across all bond markets -- the united states, italy, rates down by 17 basis points on the two-year paper. germany down seven basis points. you are seeing a narrative being shaped by philip lowe. will it be endorsed and believed by the market? repeat after me. tapering is not quantitive tightening. buying bonds at a slowing pace is not an earthquake scenario. will powell be able to get a chill the beep down moment in the bond market? in the oil market, mr. blinken pressed the uae to open the caps as we get to the opec-plus gathering. that could raise a few eyebrows.

i would love to be a fly on the wall in the negotiations. america putting pressure on the iraqi stop their game, relative to the saudi's, who want to hold it as it is. china, a warning shot. the premier says we've got downward pressure on the economy. there you go. oil is lower, bond yields are settling, but there is only one story, cop 2016 glasgow. it is the major event. it is a pledge to do more. there is plenty of debate on how many felt the summit was going to be, but we have seen lots of net zero targets being announced. the countries responsible for two thirds of greenhouse gas emissions now have a net zero target. that brings 89% of global emissions. that compares to 50% at the beginning of the year. there has been a shift, but is

it decipherable? francine lacqua, good to see you this morning. we have this chart, a magnificent pledge. francine: we have a great chart. it is real, manus, and it is clear that i spearheaded the efforts and catalyzed and distilled some of the lines that i made -- the minds to make sure a lot of the countries are behind these pledges. but we need to see is which country has not yet proposed its net zero plan. thanks to india and the great report, it is very clear -- thought we would be on sunday. a further 20% of countries have a goal under discussion, bringing the total of 89% of the world's emissions that could be under control. another big thing that happened, pretty chaotic, you are seeing a

plenary hall that is quiet because it is pretty early in the morning. world leaders were here for two days. most left last night, so today it is about finance. pledges are methane -- this is a low hanging flute -- low hanging fruit. over the last couple of months, there were serious climate activists lobbying, saying you could do more on the agriculture side. yesterday, we had this pledge brought by the u.s. and eu. 100 countries signed it, saying they would do more to keep an eye on methane. it seems pretty simple, but actually was difficult to get the people who produce this kind of gas to keep an eye on it. hear what president biden said on this. pres. biden: this is not just something we have to do to protect the environment of the future. it is an enormous opportunity for all of our nations to create jobs and make meeting climate goals a core part of our global

economic recovery as well. francine: it is great that 100 countries signed up, but the u.s. was also one of the main offenders. if you look at the regulations proposed yesterday and what that means for u.s. producers, they seek to/emissions -- to slash emissions to 2005 levels by the end of the decade. it is something so simple, but it could have a huge impact on global emissions. manus: you caught up with bill winters and a number of other ceos recently about climate finance. today is about the financing side of this business. we have seen protests outside banks. where are we with the financing? bill winters sums it up wonderfully. if we stop today, we perhaps

have a bigger crisis tomorrow than we think. it is about a balance of what they do and how they do it. francine: absolutely, this is about financing internally, but we are also expecting to have a lot of finance companies come together to pledge money. it is not necessarily what it is not necessary what -- not necessary how they lend. brian moynihan yesterday saying it is something they are looking at. janet yellen is coming here to meet with a lot of wall street chief executives. we had a conversation with her chief policy advisor, and we understand she will highlight the financial stability and oversight council report, saying that this is a panel made up of regulators, including the fed and the acc, saying that climate change is a threat to financial stability in the u.s. if you look at it through the lens of that, which they have not done in the u.s. yet, but they have through the bank of

england, it means you could see a stress test on climate. the way you look at the climate related actions would change. manus: of course, you are going to have a big conversation with the chancellor. this is boris johnson's burning flag for the end of 2021. i wonder, are they very strongly aligned, francine? is it one dream, one message? francine: i am sure if you speak to them, maybe we would hear tensions between number 10 and number 11. they want to make sure that london becomes the green finance capital of the world. you do that by attracting money. bw sales. the eu is really leading in terms of green finance and what

the commission is laying out. the u.k. could put some similar infrastructure in place. it is also allowing some of the options to go -- if they are seen, which is what they want, as the green finance capital of the world, it will attract much more sure -- much more ipo's in that field, crucial as you go in to brexit. manus: indeed. we've got a roll call of guests coming up throughout the day. francine, great to see you. we've got to make this more of an event, where you join the daybreak team. in terms of the names, henry fernandez, the msci ceo. we've got christina forrester and eric garcetti, the los angeles mayor, and david schwimmer. they will be joining the

conversation throughout the day. cop 26. 8:30 a.m., we have a special for you on cop 26, and we will have a discussion around some of the other issues. francine: we will. manus: francine, thank you very much. francine lacqua in glasgow. one of the major compounds has been china. multiple world leaders criticizing the nation's lack of commitments. maria tadeo spoke to the belgian prime minister. maria: when you say china, that is particularly important when it comes to china. this is about china complying with their commitments. is the climate checks -- the climate tax justified? >> definitely. they climate tax at our borders is what you need. it is crucial. china is one of the biggest emitters in the world, if we

really want to have an impact. the impact will be because we push each other to the same level of emission, and the carbon adjustment tax is one of the methods to achieve that. maria: emmanuel macron said we have to help the poor countries make the transition, but we will also see the big polluters increase emissions. is that perhaps china, but also india, and how do you make that commitment to finance that transition? >> the western world has a big responsibility for the situation we are in today, so achieving our commitments in international climate finance is the right thing to do towards countries who are today subject to climate change. if we do not have the means to avoid that [indiscernible] but to our growing economies, that is a different situation. they need to really push them to make the same commitments.

if we don't, we will hold them responsible, just like the trading rules, for trading goods, manufacturing, and so on. maria: so you have to make a difference between the emerging economies and china, and russia, who have to do more and are not doing it, in your opinion. >> we will see what china will put forward in the weeks to come. there is some pessimism at the start of the conference, but let's hold our horses, see where we are in two weeks. a lot of things could happen. francine: that was the belgian -- manus: that was the belgian prime minister alexander de croo speaking to maria tadeo. all eyes are on the fed's november meeting this evening. tapering is the word. ♪

>> policy is in a state of flux.

>> central banks are struggling. >> abandoning was the first step . now it is up to rate hikes. >> the market has undergone quite a significant front end repricing. >> if the yield curve is talking, then is anybody listening? >> with the boe this week -- >> we are going to see central bankers who maybe get too excited, validating those front end moves. >> the expectation is we will get the first rate hike. >> markets are telling us the right story. >> the central bankers are in for difficult messaging. >> policy remains in a state of flux. >> things can change very quickly. manus: commentators there on the possibility of rate hikes and fed tapering at the fomc meeting today.

the fed is expected to announce the tapering side of the bargain. the main question remains around the pace of the tapering, perhaps the trajectory of rate hikes if and when they come. let's bring in my guess this morning, jeffrey. the debate with state street progressed the narrative, which is to stop getting caught up in the taper narrative, probably 15 billion per month that they will do. i need to understand where they might get to with rate hikes. have we gone too far and aggressive with our estimate for a hiking initiation by the fed next year? >> yes, i do, and happy fed day, good morning to you. in the fed funds futures market, we have over two rate hikes priced in by the end of next year. i think that is too far, too

fast. if they start tapering this month and they wrap that up mid year, i think they would want to wait some period of time to assess the economic impact. i think more importantly for me, the rate hikes decision was supposed to be based on a separate and far more stringent test, which included not just inflation, but also the labor market aspect of fed policymaking. i think by the middle of next year, we are still going to be well short of maximum employment. i think beginning rate hikes midyear or at the second half of next year is too early for me. manus: ok, too rich for your vote. then the repricing use on the two-year paper yesterday, the biggest one-day move since 2020, is more compression to move --

>> yes, you did get some pushback from the reserve bank of australia. that had an impact on global markets. we saw two year yields dip. if i am right and we get to the middle of next year and a lot of the inflation pressures that we are seeing now that are making central banks nervous, those start to fade a bit, so we have lower inflation, and in the middle of next year, we are still not close to maximum unemployment, then i don't think we get the rate hikes. if that turns out to be correct, then to year yields probably have room to move lower. manus: i heard the fed will flop, which i thought was entertaining. live taper, rate hikes delayed -- not denied -- delayed. what does that do for risk?

must be pretty good for risk. jeffrey: very bullish for risk :2:2:2:2:2:2:2:2:2:2:2:2:2:2:2::

that is priced in, if you will. the things to worry about for risk today, an accelerated taper timeline, meaning the tapering will wrap up more quickly. let's say by the end of q1. that is something to watch out for. a shift in tone from powell. he has been saying the fed wants to push for maximum employment. are there any hints today that we are closer to that goal than we previously thought? the example i would give you is the employment rate at 4.8% in the u.s. forecasters believe it will get down below 4% next year. does that constitute the achievement of the labor side of the mandate? we can listen today for any hits in change in narrative around those things. manus: a lot of people have said that when it comes to understanding the dynamics of the employment market or the unemployment numbers, we have this serious mismatch. you talked about you three -- q3 going down to 4.8%. the risk is you have a serious mismatch between skills and the evolution of a post-covid economy. that is the risk. tell me this. a lot of people have come on the show and said there is not a chance the bonda market could implode like 1994 or 2004. k,5ñthey have been proven very g in several days. is that the scale of my risk of the bond market? jeffrey: i think the big fear for many investors is a repeat of 2013, when you had a repricing of the fed and a higher treasury yield, and that had effects on risk assets.

so far we have not had that fallout. the taper tantrum has not really played out. could it happen? absolutely. instead of the $15 billion per month, some kind of accelerated pace. and hints that the bond market is onto something and the fed may need to hike sooner and more. right now you have the two rate hikes priced into next year, so to really hit risk assets, to really have a 1994--type scenario, you need some kind of signal that is going to be even more than what is going to be priced in. as i argued, i think inflation will come down, and we are not close to maximum employment, so i do not think they will actually deliver on the rate hikes that are priced in. manus: for me, it is more about the context of understanding the dynamic of risk that came to play in the bond market in 1994

and 2004. that shocked a lot of people. jeffrey, thank you. let's see if we get some indication from powell on where we are on the repricing of rate hikes. to politics, we have had some breaking news over the past hour. the republican glenn youngkin has declaredbç■ victory in the virginia governor's race. a blow to democrats and their hopes to retain control in congress. the democrats were 90-10 to win this seat just two months ago. ♪

>> we are going to start that transformation on day one.

[applause] there is no time to waste. emily: -- manus: republican candidate for the governorship of virginia, glenn youngkin, declaring victory a couple hours ago. a closely watched contest. might this be a barometer ahead of next year's midterms? was it a mortal wound or a flesh wound to democrat expirations? derek, a flesh wound or a mortal wound to the democrats? >> i do not want to get on your show and say it is merely a flesh wound, but it is a serious indication that the democrats are going to take seriously. races in virginia and new jersey have been set up, the midterm races, and this went hard against the incumbent party. in virginia, glenn youngkin won

that space by knitting together a coalition that is the best of trump and the best of mitt romney together. he is increasing margins in the rural parts of the state. southwest virginia, you saw counties voting republican 85% to 90%, which are huge margins, and you also saw some gains in some of the suburbs, especially -- noncollege educated women, a demographic to focus on in the midterms. alarm bells are reading all over. in new jersey, another blue state, that governor's race isn't in. -- is neck and neck. there are a lot of warning signs. joe biden landed in the united states as glenn youngkin was declaring victory, a powerful visual. the blame game has already oo?çiv'j>ozñ7 moderates, inaction on bidens agenda that did not give

democrats a lift in the final days of this race. manus: ok, let's see what the set up is for those elections in 2022. more to come. ♪

manus: good morning. i'm manus cranny. this is "daybreak: europe." these are the stores setting her akouhóouhóouí>■fbñnn &+■eíñaieíñ -m the fed is all but certain today. global stocks are mostly lower after setting fresh highs in the u.s. a much-anticipated pledge to cut emissions gets the support of

more than 100 countries on the final day of c.o.p. on the agenda today, firms representing 130 trillion dollars worth of assets sign up to nazira pledges. we will speak to rishi sunak in glasgow. auto news coming through from bmw. it is a comfortable beat. earnings of 2.8 billion euros. the market had penciled in 2.5 one billion. it is boosting its performance with significantly higher earnings. what you are seeing is the auto revenue, 26.3 billion. that was estimated at 21.2 9 billion. a robust outlook talking about higher earnings. and the margins in the auto business.

let's dig into that more. for year auto margins at 9.5% to 10.5%, an important guidance from the company. many companies have switched to higher-margin cars because we have a supply shortage in the chips that go into the cars. a big beat on the third quarter, 2.88 versus 2.51, confirming the guidance. in the margins, you will see 9.5% to 10.5%. continue to forecast a group off it for tax year on year. -- a group profit before tax year on year. we will have more on the bmw storyline as we go through the morning. let me show you the cryptocurrencies. if you want to hedge the fed, slow down in china, maybe be long in, but on an inflationary hedge spike, maybe you want to be long crypto.

a theory him up 516% this year, 2000% -- ethereum up 516% this year, 2000% over the past five years. $8,000 by christmas. that is what you call a santa claus rally. they say we are at the starting point of an accelerating rally. cryptocurrencies are on fire at the moment. let me show you global markets, where we have stocks barricading as it deals with a slowdown guidance and regards to china. chinese equities down by 2/10 of 1%. sovereign bonds down by nine basis points. philip lowe regressed the narrative yesterday quickly. we might have abandoned yield curve control, but my guest this morning said the market has gone too far, too fast, too aggressive at pricing in hikes firm the rba. that is continuing to go off

slightly. you are seeing tapering of nine basis points after ratcheting by eight times the target last friday. other notable red blotches, wti down by 1.44. brent down by 1.02%. the u.s., we understand lincoln put pressure on the emirates up their output. that could be very heated within the opec-plus gathering. francine lacqua is putting pressure on world leaders as they line up to do an interview with her in glasgow. how are you doing, francine? wrap it up for us. morning. manus: good morning, manus. i love coming on a review at this time, because it is the only time in the 24 hour cycle when they are not many people behind us. the plenary was packed. we also found out, quite difficult for delegates to get

around, to get from one zone to the other. two days of world leaders talking about pledges, and it does seem there is a new catalyst coming from a lot of the world leaders on how much they want to do. we had pledges on protecting forests, curbing methane emissions. we also heard oris johnson, the host of cop 26 in glasgow, promising that a lot of what is being pledged here must then be matched with reelection. we heard from joe also seeing that president xi of china made a mistake not coming to glasgow. there has been pressure to make sure they were doing a lot more to make sure that china was coming to the table and actually putting up with the plan. if you want to think about it logically, there are a couple of things going on. first of all, countries such as india saying they will be aetna zero by 2070 -- zero by 2070 --

at net zero by 2070. you have a lot of pledges by smaller countries in, ■ methane. one of the important ones, not that difficult to achieve, but the fact that it was spearheaded by joe biden, who has not done much to curb methane unit agriculture in the u.s., was a big deal. let's hear what the president had to say. pres. biden: this is not just something we have to do to protect our environmental future. it is an enormous opportunity for all of our nations to create jobs and make meeting climate goals a core part of our economic recovery. manus: -- francine: this started by joe biden and the u.s. saying we are going to have agencies look at this, we are going to get on board as they managed to get another 99 countries to sign onto the methane pledge,

considered a failure at g20, but they managed to get it here at cop 26. manus: so today is all about show me the money. this is the finance for the climate agenda and that gap my perhaps, but between what the world needs and who's got the money. so mark carney brings security with him to these meetings? francine: yes. this is definitely mark carney's day. we are expecting a lot of money. we also spoke with brian moynihan of bank of america. he said it is big. no one would exactly tell me. i tried to get the scoop. if you are a financial company, there are a couple of things you can do. you can just pledge money that you will give in financing. for example, economies that are transiting. you can say i am still going to help fossil fuel companies, but i am only going to put money in

projects that make them less polluting. that is one way of going about it. i wonder if we will get 100 billion dollars, $200 billion, even a trillion dollars, and if that makes an impact on investors. we could see some of the green bonds auctions and things like that. the third pillar is what we heard from janet yellen. we understand from her climate she policy person that we now need to see climate change able bit like the bank of england is doing, we need to see climate change as a threat to financial stability, and that will change the way banks will look at it. coming up later, we will speak to rishi sunak, so don't miss that conversation after 3:00 p.m. london time. we have great guests. we have interviews with the mayor of los angeles, the chief coo of lufthansa commanding chief executive of msci -- andy

chief executive about msci. it will be interesting to see how they -- and the chief executive of msci. it will be interesting to see how they view climate finance. manus: get those breaking news headlines, will you? put a bit of pressure on them. francine: trying. manus: we all try every day. francine, have a great day. francine lacqua at the cop 26 gathering. the u.s. commerce secretary says a truce between washington and the yuan metal tariffs -- and the eu on metal tariffs will help relations between the states. we were spoken to exclusively about the deal. >> of course, we want to have a strong relationship economically with the eu, but we have to protect u.s. industry, the u.s. steel industry, steelworkers, the aluminum industry. we maintain the tariffs, but we

also allow for some amount of pretrade. the first 3.3 million metric tons of steel will come into the u.s. from the eu tariff free. beyond that, we maintain the tariffs. the real problem here is china. it is china's dirty steel, the excess capacity of steel that has distorted the global market through their bumping, often sending it into the eu, which comes on to american shores. what we said is we are not going to do that. we are not going to allow our steel industry to be heard chinese excess capacity, and we are going to work with the eu to protect our workers and their workers. >> to pick up on china, how important was it that you basically band shipments of steel coming from china into europe and then into the united states? >> hugely important. the technical term is melt and

pour, which i realize might not sound very sexy, but it is a big deal. we said we only one eu steel to come in -- want eu steel to come in tariff-free. this is meant to work with our allies in europe take its chinese excess capacity of their dirty steel -- against chinese excess capacity of their dirty steel. what comes next is a global steel arrangement with the eu. we said clearly that over the course of the next two years, we will work with our allies to come up with a global steel arrangement that preferences cleaners steel and u.s. and eu steel. >> to pick up on one other aspect, you said we want to have really good trading relations with europe. we also want to protect good jobs in the united states. a third element is climate, because you are also trying to incorporate trade policy and limit carbon emissions.

how does the steel accomplish that? to our knowledge, this is the first time that we had a taper that brought into account carbon intensity of steel, which will benefit the u.s., which makes the cleanest steel in the world, and the eu, and it is designed to block china, which continues to make very dirty steel. the other point that i think is worth mentioning, right now we are struggling through supply chain issues. we are all seeing increases in prices in america. steel prices have gone up three to four times over the past 12 months. this is going to help all of

those supply chain issues. we are going to see prices go down on account of relaxing the tariffs, and that is going to help with inflationary pressures and some of the bottlenecks of the downstream supply chain. exclusi'tuárráuárráuár2xa&oombe.

manus: let's get back to glasgow. francine lacqua has a special guest kicking off today's agenda at comp 26 -- cop 26. manus: joining me now is meant

to us birds are of bayer. thank you for joining us -- matthias berningerp?gt of bayer. talking about monsanto, a company bayer has, monsanto has not had the best reputation when it comes to climate change and sustainable solutions. how is that changing? >> monsanto is like a treasure box full of innovation. bayer did not acquire monsanto for its reputation, but when you look at what is possible on the innovation side, it is a very exciting place for example, we are going to into through see with a new variety of corn that has the same yield on 20% less land. these are the solutions that we bring to the market. francine: because of monsanto's

legacy, have you had to fix some of the problems we have seen from them in the past in terms of sustainability? matthias: we had to change how we engage with society. more transparency around how we engage with scientists. overall, i think when you look at the solutions we need to be carbonized agriculture, monsanto has a lot to offer. francine: why does bayer still have some of the crop chemicals that were acquired with the monsanto acquisition? matthias: because they are needed. we will not be able to feed a billion people on less land -- yesterday we decided we wanted more for his protection, which means less competition on agricultural land. fourth, we need agrochemicals to protect crops against accelerating climate change. francine: do you phase them out by 2030? can you make them more green? matthias: of course.

some of the crop protection products still out today were invented in the 1950's or 1960's. the beauty of bayer is we can combine the latest generation of crop protection with new crop varieties. that is kind of our contribution to decarbonizing. francine: will you phase them out by 2030? matthias: it will be impossible. it could take a bit longer. we are working on additional dependency. francine: when you look at pharma, other divisions, and health care, health divisions, what are you doing there to assess the sustainability? matthias: the most important contribution we make is closing the -- contraception. there are more than 200 million women around the world who do not have access to

modern family planning. we have to get them access to family planning so they have a chance to get an education and get out of poverty we are a world leader in the cardiovascular space. people who suffer from covid, and in addition to that, young children. to work on medications to help people that suffer from extreme heat is one of the climate related things we are doing. francine: who is paying for this, and are you confident that what is being achieved and gas go -- in glasgow will have a tangible impact? matthias: the commitments made in the first two days are much more tangible than you would normally see. to see indonesia, central africa, and also latin america being to -- agreeing to -- force protection is a hopeful sign.

that is not something you would normally see on day two. francine: when you look at methane emissions, there was a goal, and it had to be diluted to make sure it was signed. if we have done more? matthias: you can always do more, but also, when you organize a conference like that and have to bring everybody along, it is difficult to get everything. i am optimistic because the world has decided to decarbonizing by 2050. is this is that would not go -- businesses that would not go on this journey would not have a future. you know if we achieve decarbonization, we will have a future. francine: the private space is growing faster than the public space. what does that mean for china not being here? matthias: global news, 24 hours a day, china was here -- matthias: china was here. president xi decided not to come. india is making commitments.

they are trying to go carbon neutral. that is not easy. there are many companies whose early commitments for carbon neutral growth have accelerated. it is not easy. climate change is affecting china's and india's people harder than what we have experienced in the europe or the united states. francine: talk about your crop divisions. how do you match giving support to the farmers while addressing climate change? what are your one and two priorities? matthias: we want to reduce carbon emissions. we want to enable farmers to successfully remove carbon, kind of what they agreed to do on agriculture land. even in a 1.5 degrees scenario -- farmers need urgent help to

adjust climate change as well. francine: thank you so much. with that, manus, i am going to send it back to you and we will have plenty more throughout the day. manus: hard to survive the changing landscape. plenty more ahead on this edition of daybreak middle east. daybreak europe, excuse me. ♪

>> whenever i think about the meta-verse, it comes down to $ people, places, and things to the digital world. for us, and this is why it is happening both in the consumer space at in the commercial space. seconds ago is when we launch hollow lens.

this pandemic, if anything, has made the commercial use cases much more mainstream, even though sometimes the consumer stuff is like science fiction. i was able to go with it, for example, the nhs hospital in the u.k. and do a virtual visit of the covid words. i was able to go to the toyota manufacturing plant and do a remote site, and even the space station. i think the ability -- you have the amount ability of digital really help wring things together. emily: you are working with the number of partners, including facebook but which just unveiled its version of the meta-verse. what do you think of their approach? >> we love the fact that there is so much innovation coming in, whether it is from facebook or others who are going into this space. i hope this is the next big thing that happens after the mobile internet. we will make sure all space vr

today runs as one of the most popular applications on oculus, so we will make sure our best applications, our best platform work -- we want to make sure anyone building using mash can run those applications first class on oculus, and that is going to be our goal. manus: microsoft ceo speaking exclusively to emily chang on the future of big tech. it is literally one day we have talked about ad nauseam, but might be fed begin to taper? it will be $15 billion less bonds and mortgage-backed securities each month. there is a message in the bond market, which is don't go too far, too fast. retracing its dramatic moves from last week. the two year yield has slighted

by the most since march 2020. the rba really reset the narrative of don't overreach any bond markets as they step back from yield curve control. what will jay powell deliver tonight from tapering and tightening to ensure lower shorting rates? ♪

>> good morning. welcome to bloomberg markets york. i am anna edwards. the cash trade is less than an hour away. fed tapering insight. all but certain to announce a reduction in bond purchase