>> good morning and will come to daybreak australia. we are counting down to the major market opens. shery: the top stories this hour, bond yields tumble. after the boe surprise decision to stay on hold. >> opec-plus rejects president biden's call for production

boost. shery: china's president signals he is open to discussions. we are seeing u.s. futures muted. the s&p 500 saw another record high. the nasdaq 100 gained for a night consecutive session. this is the longest winning streak since december. new jobless claims falling for a fifth consecutive week showing the downward trajectory when it comes to the jobless claims numbers and perhaps look ahead to fridays payrolls. we had the philadelphia semi index at an all-time high showing the latest results from these big companies and the big differences there. we had qualcomm leading higher, but recent earnings really disappointing from texas instruments, western digital, and micron. oil rebounding towards $80 per

barrel. remember opec-plus went its own way sticking to the slow place -- slow pace of oil production increases. treasuries jumping after the boe shocked markets. 10 year yield down. we also had short-term yields seeing their biggest daily declines this year. traders that had been pricing in increases in 2022 now moving one of them into 2023. central banks are pushing back against market expectations of more aggressive central-bank action. it was all about the boe because we saw them keeping rates on hold. the markets perhaps thinking the communication is not so clear. we continue to watch what the global bond reaction to the boe will be after the fed remained

more dovish and its latest assessment. paul: it was the bond market given some of the credit for forcing the hand of the rba this week walking away from the target for the three year note. we're going to hear more from the reserve bank of australia later today. we will hear more about the growth and inflation outlook. the markets already pricing in three rate increases for 2022. the rba is not quite at that point, although it did walk back some of its language on tuesday's meeting signaling it might be willing to move earlier than 2024. markets seeing a number of pressures including a rapidly improving vaccination rate which suggests maybe the recovery is going to be faster. shery: there was a reason why markets were pricing and faster action from central banks.

inflation expectations soaring as oil prices continue to gain ground. opec-plus now rejecting the white house demands for more supply. perhaps inflation concerns will not go anywhere. it seems to be on the hands of president biden whether or not he wants to dip into the strategic reserve. paul: it might be a bit of good news on the trade front with china. xi jinping saying that china is open to talks on the industrial subsidies that it gives to state firms. this has been a long issue for the united states. the unfair nonmarket practices. xi jinping making those remarks on thursday. he does have a video summit planned with president biden, but no date set for that yet. this week, we heard from janet yellen as well saying she

expects china to abide by some of its early commitments under the phase one trade agreement. potential signs of a thought maybe. -- of a thaw maybe. shery: let's get more on this from our reporters. kathleen, we were talking about the be away holding pat. they pushed back against market expectations of a hike next year. >> it seems like a reversal of those who have been listening to the boe governor. they kept the key rate at 0.1%. on purchases unchanged. this while inflation has been surging in the u.k.. this has spurred a number of hawkish comments as recently as september when he stressed that monetary policy have to act. how do you act, you raise rates. there was a lot of buildup going into this. now, andrew bailey voted for

keeping the key rate steady. he said look why didn't you pushback on those rate hikes, why keep the rates steady when you didn't do that? people are referring to him as the unreliable boyfriend. that is a reference to what said about mark carney, what he said about raising rates than the pullback. he pushed back against that joke about the unreliable boyfriend. but also, he cautioned against markets. pricing in these aggressive hikes that would take the key rate to 1% by the end of next year. this is what he said. >> market pricing as you can tell from the commentary we made today, right direction but a bit

overdone. that's the candid view. >> in fairness to the boe, we should say that some people were not in favor of rate hikes. there was uncertainty that the boe itself in its statement said inflation could fall behind the target next year. there's uncertainty about the path of jobs and wages and that her to wait to see what happens over the coming months. waiting to wait and see, but what a day for andrew bailey and the bank and the bond market as you just pointed out. paul: as i mentioned, we're going to hear more from the reserve bank of australia today. updates of the economic forecast, the state of monetary policy, what is at stake? >> some would say the rba is at an interesting crossroads. on tuesday, they suddenly

dropped the three year bond yield target on the market started pushing it skyhigh. he came out and expressed his view that inflation is going to stay low until wages start raising more. investors still betting on three rate hikes of and 2022. it's important as you just noted that phil lowe has calmed things down a bit. he sees inflation hitting the midpoint of the target by the middle of 2023. he said he wouldn't hike rates until it gets to that point. in the past, he doesn't think it will get up until 2024. that's why people are looking for assume a rate but weibel watch for that monetary policy statement closely to see -- we will watch for that monetary policy statement. shery: another relationship that perhaps may be risking getting

strained is opec-plus and president biden. what happened at that some? >> the decision effectively telling the u.s. it is concerned -- it's concern about inflation and desire for more oil is not it's problem. you are seeing wti recover near $80 after dropping to a one month on the decision. brent crude was higher and there have been bullish bets in london for $100 oil. clearly a lot of volatility has been injected into the trade. summarizing what happened, and rejecting the u.s. request for double the 400,000 barrel per day increased. consumer said that is not enough to sustain the recovery. the ball is now in joe biden's court. there is speculation growing that the u.s. will tap the strategic oil reserves.

that may provide short-term relief, but it sets a dangerous precedent. there is also the fact that the showdown adds further strain to the u.s. and saudi arabia. the coming weeks will have major implications for the global economy not to mention the price of oil. the global economy has been battered by high prices. for the u.s. agenda, there are also implications. his popularity is hurt by inflation. oil is looking past all these politics. opec-plus repeatedly blames their customers economic woes on the cost of natural gas which has been skyrocketing. they say they have no control over that. so the standoff continues and oil is very much in focus this week. paul: let's take a look at these

remarks from xi jinping saying that he is open to negotiations on these industrial subsidies offered to state owned firms. a long-term sticking point for the u.s.. are we seeing early signs of a thaw? >> early signs is the best way to put that. this came today at the import expo. xi jinping said he was open and there were active negotiations going on about potentially reducing subsidies not only to state owned enterprises but to industrial firms. something the u.s. has said they need to see happen for there to be a fair playing field between the u.s. and china. they have not seen that fairness in the past. in the biden administration, there have been not such good relations. the u.s. has not lowered the tariffs that were put in place during the tempering

administration -- trump administration. janet yellen says she thinks china may soon be meeting its commitments under phase one of the trade agreement. if that happens, they could start looking at lowering some tariffs. this looks like a sign of a step in that direction. again, we're talking about steps nothing significant yet in terms of them reaching a broader trade agreement. shery: what are the next opportunities for these countries to start easing tensions more? >> it looks like president biden and xi jinping are going to talk. they're going to have a virtual discussion on this. no date set yet. both sides say it could be soon. that would be a big step in that direction. we haven't seen president xi, he hasn't left china in 650 days. apparently, they do want to talk

virtually. they did not meet at the recent g20 because president xi was not there, but there are plans to meet soon they both say. paul: kathleen hays, su keenan, and jodi schneider. let's take a look at asian markets shaping up for the final trading day. mostly a positive lead from u.s. equities. new zealand currently the only market open. higher at the moment. let's see how the day pans out. here in australia, futures poised for arise. we have the reserve bank of australia statement of monetary policy due out in a couple of hours. nikkei futures weaker. we are looking forward to

earnings from mitsubishi, honda, and olympus to name a few. japan household spending for the month of september will be out later on. get over to vonnie quinn. vonnie: good morning. the by the administration has mandated covid vaccines for all staff at u.s. companies with 100 or more employees. workers must be fully vaccinated by january 4 or submit to weekly testing. employers that don't enforce the rule or deliberately ignore it say fine. a london court has allowed malaysia to continue its pursuit against abu dhabi's fund. malaysia's government challenges the arbitration settlement. the london case is one of a series of legal and regulatory investigations around the world linked to one -- 1mdb.

>> two companies withdrew plans for etf's. it seems regulators are not yet ready to greenlight more complex derivative based cryptocurrency funds. >> i have urged us to rethink exchange traded products. i don't know whether that will change, but i -- my guess is that given the chair has signaled that he likes to see these products trade in regulated markets, that may be something that is standing in the way of approval. vonnie: the new york city mayor elect said he would like to take

his first three paychecks and bitcoin in january. he said he wanted to turn new york into crypto friendly city and a hub for growth and innovation. he wants to set up a city going cryptocurrency similar to one launched by miami. global news 24 hours a day on air and on bloomberg quicktake. powered by more than 2700 journalists and analysts in over 120 countries. i'm vonnie quinn. this is bloomberg. shery: coming up, energy day at cop 26. was it enough? we will speak to a professor who was one of the world's most preeminent climatologist. an asset advisor tell us where he is putting his billions of dollars under asset management.

this is bloomberg. ♪

shery: how do you factor in the policy risks here? >> the policy risk is really if you follow the fed at their word in terms of taper, sometime by the summer you would see them

finish with the tapering program. the question is what happens with employment? what happens with inflation. the earlier segment, you were talking about opec-plus denied the request to pump more oil. our own policies or maintaining our own production. you have upward price pressure. employment, we think the employment market is going to continue to come back and we are fairly certain were going to see that. the issue on the interest-rate side is that even with inflation coming back, you have the fundamentals of what will drive inflation, we are big believers it on the technical side, there's still a lot of cash loading around the world. i am handle belieber. round or semi round numbers. -- i am a handle belieber. -- believer. we think technicals can buffer

what's happening. shery: this chart on the bloomberg shows how big of a rally big tech has continued to be on. i wonder with these supply-chain constraints that are not going anywhere anytime soon if this will have an overall impact given how everything is so pricey right now. >> we are seeing ever so slightly in the port of los angeles, a little bit of the few ships out there. the delay on train shipping is starting to come down. as we have chatted about before, we have been espousing rebalancing. taking things from apple and microsoft and the names that have done well, we continue to like those stocks. trees don't grow to the sky and the stocks have done quite well. you are in a less constructive environment securely for the high pe names. paul: you have taken some

profits from some of those big names. where have you put it to work instead? >> we like paypal. mastercard. also the larger banks like jp morgan and citicorp that we think can do quite well. they have done a great job after the great financial crisis and covid of repairing their balance sheet, fixing cost structures and setting themselves up for strong growth. paul: in terms of the supply chain bottle nuts -- bottlenecks, when do you see these easing and is there a risk there will be a sudden supply glut? >> we think it's up six to 12 month scenario. we are seeing softening of the crisis on the west coast of the u.s.. real shipping is getting a bit better.

also doing research this morning on chips particularly the chips needed for auto manufacturing. that's starting to get better. the glut is a potential risk, but we think it's a six to 12 month phenomenon. you are looking at the middle or end of next year, until we see supply getting back to what used to be. i think we will have to hang onto this for a little longer. certainly as the pendulum does, is swings too far one way or another, you risk overproduction causing a glut. that's why the fed and other central banks are saying may be transitory inflation doesn't mean a month or two. also because of supply normalizing, the employment market improvement, you don't have the longer-term inflation that last year's. paul: thank you so much for

joining us. the short to turn -- tune into bloomberg radio. now broadcasting live from our studio in hong kong. we have plenty more ahead, stay with us. ♪

shery: here is a quick check of the business flash headlines. the company says it is facing unprecedented liquidity pressure citing downgrades and challenging property market. it triggered doubts about finances and bonds plunged after he canceled meetings with investors in october. credit suisse -- after the scandal is discounting its

services. it will move capital from the investment bank to the private bank. blackrock is planning to add a new metric that will allow clients to track the investments. the temperature scores across the portfolios will show how much warming and investment could cause. the announcement comes after the pressure to cut off funds to carbon emitters. coming up, the gold prices being -- promises being made at cop26. this is bloomberg. ♪

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paul: as the first week of cop26 winds up, critics say many of the agreements still fall short. the plan to phase out coal did not include u.s. or china or australia. discuss this more with michael mann. he is the author of the new climate war. thank you so much for joining us. we have had lots of fine words, but when it comes to signing up

for agreements and potentially acting on them years down the track, are you confident that these words be translated into action? michael: good to be with you. that is where the rubber hits the road. we have seen some bold commitments on the part of the united states, the u.k., the eu. we would like to see more from australia and china. china has not ratcheted up their commitment from what they were offering during the paris agreement negotiations. we have to see more. more than that, it can't just be words. it can't be talking the talk, we have to see politicians walking the walk. as we heard in the buildup to the segment, there is still a lot of foreign investment in coal. we don't yet have an agreement by the major polluters of the world to end investments in new: for structure. the international energy agency

which is a conservative entity, it is no cheerleader, but they have been clear that they can be -- there can be no new investment in coal infrastructure. -- fossil fuel infrastructure. there is a lot of work left to be done. paul: there had been some commitments. china has pledged not to build any more coal plants outside of china, but didn't show up to the summit. india has pledged to achieve carbon neutrality in 50 years. how do you not give into spare? -- despair? michael: that was an encouraging commitment from india. they first said they wouldn't commit to ever being carbon neutral. i think what you see right now is a little bit of haggling. politics. we are shocked the politics is going on here in glasgow.

what we are seeing for example is as you alluded to at the beginning of the segment, we need to see a lot more contribution from the major industrial economies of the world. a much larger commitment of resources, financing, and funding to the developing world. if they are to continue to develop their economies, without going through the fossil fuel stage that the rest of us went through and can't afford for them to do that, we have to make it economically preferable to them to skip the fossil fuel stage. to go directly to deploying clean energy infrastructure. that is going to cost about $1 trillion in global to mystic product per year to make it possible for them to do that. thus far, we've only had a commitment of about 100 billion

from the industrial economies. shery: this week, we're focused on the positive of how we are getting more of these net zero commitments. it seems that about 89% of global emissions will be covered by these net zero goals. at the same time, when you look at these commitments as you do carefully, how concrete and how consistent are they to the policies that these countries are implementing? michael: they are pretty fuzzy. when you're talking about 2050, you're kicking the can far down the road. that allows politicians to promise new technology. massive carbon capture and sequestration. basically, what they are doing is promising to implement

technologies that either haven't been invented yet or haven't been deployed at the scale that would be necessary as a way of taking the pressure off of reducing carbon emissions now. we have to look out for that. we have to look out for politicians who sound like they are making bold pledges, but are kicking the can decades down the road and not committing to anything now that will reduce carbon emissions substantially. keep in mind, we have to bring carbon emissions down by 50% within this decade. shery: how much of that is a product of what's happening right now with the global energy crisis? if we didn't have this power crunch, with the nations have been able to make bolder pledges? michael: it is a really good point. to some extent, we are victims of the vagueness of the current era that we are in where we are recovering from the pandemic so suddenly there is huge demand

for energy. that is putting a lot of pressure on politicians to deploy every source of energy that they have. that includes fossil fuels. i think we need to look a little bit past that. we have to recognize that is a challenge right now for politicians who are under pressure for not providing basically for their being this shortage of energy and high energy prices. we have to get through that and look in the longer term and make commitments that will get us where we need to be in the longer term. recognizing that we have challenges right now. paul: australia is one of the countries putting its faith in these unproven technologies you were describing like carbon capture, and green hydrogen as well. you previously described australia's government as feckless. it is hard to win political power in this country without the support of the regions that rely heavily on coal mining and

these legacy industries as well to be in government and to make policies. how do you get around this political problem? michael: we have to look toward the future. i live in the state of pennsylvania that has a legacy of fossil fuels. it's where we discovered oil in the united states. it was built substantially on coal. at the same time, we recognize that the growth energy industry in the future is going to be renewables, wind, solar. certainly, we have to recognize there are pressures right now. at the same time, we have to recognize that renewable energy is cheaper on a levelized basis than fossil fuel energy and the only reason we are still investing in fossil fuel energy is there are these artificial

subsidies that governments like the australian government are providing that make them more competitive in the marketplace. if we were to let them fairly against renewable energy, renewable energy would win out. we have to recognize that the future of the global energy economy is going to be renewable energy and the countries they get out ahead are the ones that prosper in the future. those of us who doubled down on fossil fuels will be left behind. shery: always great having you want. thank you very much. we have breaking news coming from singapore. dbs reporting third-quarter net income coming in slightly above expectations. they have also declared 33 singapore cents dividend per share.

the income and fee recovery trends continue to remain supportive when it comes to the revenue recovery. also, we are seeing asset quality with the ratio steady at 1.5%. they are also weighing into the inflation debate saying that inflation could be more than transitory. dbs also saying the momentum remained healthy despite the supply chain bottlenecks. they are saying inflation could lead to cost pressures and boost the right outlook. in the meantime, they are reporting income beating expectations. let's get to the first word news with vonnie quinn. vonnie: xi jinping says china is open to discussing key points of the trade tensions the united states including subsidies to industrial firms and state owned companies.

he says china will take an active and open attitude and talks on issues such as trade and the environment. he spoke at the opening of the import expo in shanghai. the white house says opec and its allies are putting the global economy at risk after the cartel rejected president biden's please to hike production or than planned. it cited pressure on oil demand from the coronavirus. the bank of england put its credibility on the line as it per ties growth over inflation. it voted keep the benchmark rate low. traders slashed rate hike bets.

>> market pricing as you can tell from the commentary we made today, right direction a bit overdone. vonnie: global news 24 hours a day on air and on bloomberg quicktake. powered by more than 2700 journalists and analysts in over 120 countries. this is bloomberg. paul: more on bank earnings with the credit suisse announcement of a loss. >> we had solid results. if you look at our pretax income, it was up .5% -- 25%. the report also had some impairments but some other

areas, legal provisions were part of those impairments but also another impairment and asset management. net new assets, very solid over $6 billion. very strong capital, 14.4% ratio. overall, very solid results. investment bank was up in terms of resin -- revenue. i think it was a very solid result in circumstances which were not easy. >> when you look at the strategy, it is exiting prime services. what bank are you trying to create west mark? >> credit suisse has outstanding franchises. what we tried to create is the optimal combination that makes it a bank for all of its

stakeholders. debt bank is a bank that has significant advantages. the bank has a 165 year history. it's a fantastic brand. we have the dna of an entrepreneurial bank. it's a big advantage. that means the bank is really good at serving clients holistically either entrepreneurs or families. we have fantastic teams presenting great businesses that are growing worldwide. we are in geographic areas. the combination of all of that, we're going to have a bank that is going to expend further wealth management and a significant investment into wealth management which is a higher return business with much lower risk. we're going to speed up and up the areas of the investment bank

that also serve clients holistically or have significant competitive advantages. thirdly, we're going to keep and develop asset management which also has important synergies and competitive advantages. it's really important, all of this will be a bank which will have a much lower risk profile. that is the real important thing. a bank that has risk management at its heart and it will deliver for both clients, employees, and shareholders in a holistic way with a much lower risk profile going forward. shery: that was a conversation with the credit suisse ceo. coming up, a surprise decision to keep interest rates on hold. this is bloomberg. ♪

shery: uber reported its first ever profit boosted by the food delivery balance. it was overshadowed by a different forecast for the fourth quarter. why was uber so cautious about the outlook? as always, it is the pandemic. >> the ceo, he was very tepid in

terms of sentiment. not totally bullish the way we saw lift come out of their own earnings results. i think he was trying to be somewhat more cautious, prudent is how they put it in terms of a recovery in the fourth quarter. paul: let's drill down into those numbers. riders coming back after the pandemic eases off. does uber have enough drivers? what is that mean for costs? >> the ceo is very clear that they're going to remain elevated . as it comes to driver incentives, we saw some of that being tapered back which is why we saw such great adjusted earnings figures. going forward, they expect to driver supply to balance out even more. again, the pandemic remains a

risk as well as inflation and rising labor costs. paul: time now for morning calls ahead of the asia trading day. goldman sachs sees oil volatility in the coming weeks as the supply deficit remains unresolved. it denotes open conflict between the u.s. and opec-plus. the current strength and demand for crude will be the main tailwind for prices. shery: watching the boe's next moves, paul jeffries thanks a hike is dubai -- do by december. the boe will wait to confirm their projections on the labor market on november 11 and december 14. if the december report is on the south side, he thinks they will

delay the hike to february. earlier, we spoke with andrew bailey who hit back against critics on the decision not to hike saying the banks job is not to spear markets. >> to messages. -- two vestiges. we will expect there to be a rise in interest rates. number two, because we condition our forecast on the market curve , our forecast suggests that by the end of the forecast, inflation is under target. we had an output gap opening and that wouldn't be what we were wanting to see. >> if we can go back to markets, at times you seemed hawkish. why did you not temperate or at the time were not enough worried about growth?

>> in those conditions to curly we are seeing inflation expectations, we will have to act. there will be no question about that. i don't resolve that one bit. >> did the markets misread you? >> note. -- i was not misread at all. we never said there would be a rise in interest rates november. bloomberg, your economists published and it was evenly balanced on what we're going to do today. we pick up quite a lot of commentary which matched your survey. a lot of people saying it's pretty close. my view would be yes, it was

pretty close. it is very very finely balanced situation. the markets, you could tell from the commentary we made today that the right direction a bit overdone. >> there's a lot of traders. they said if mpc members -- market pricing would have been in line with sustainment. would remarks be more valuable if they were less frequent? >> i do take that with a pinch of salt. we get comments at other times that the mpc doesn't speak, then you know markets get no guide. of course we don't speak to god markets. markets must draw what

conclusions they will from what we say. i take that with a fair pinch of salt. what i would say is that we have seen a correction in markets. from the pricing we saw over the summer particularly. i have to be honest with you, i'm not surprised about that. it puzzled me at the time to see that pricing. paul: that was the bank of england governor there. you can see our past interviews on our interactive tv function. you can also dive into any of the securities or bloomberg functions we talk about and you can become part of the conversation by sending us instant messages during our shows. this is for terminal subscribers only. this is bloomberg. ♪

shery: one company we are watching, peloton plunging after hours. the company now saying they underestimated the impact of the economic recovery. they cut their outlook by a billion dollars. there also blaming it on supply chain disruptions. paul: not too many companies are

immune from that. peloton was the classic stay-at-home stock. the ceo addressing concerns on the call, there's an image that peloton is a luxury item. here in australia, it's priced around 3000 aussie dollars. you have the subscription on top of that. the overseas markets are more sensitive on price. it might be time for some corrective action he says on the cost of the hardware. shery: many people now that you can go to the gym, they are opting for a gym membership instead of paying those fees. paul: indeed. you can always put on a per of shoes and go for a run. although you don't get the motivational slogans so much. for more on earnings, let's get a quick check of the latest business flash headlines. nintendo has cut its sales target for the switch. in response to a widespread

supply chain crunch. now expecting to sell 24 million consoles this fiscal year. that is 1.5 million less in original ejections. it is raised its outlook for operating profits adding that confidence can boost the bottom line. moderna's earnings badly missed estimates. shares saw their biggest slide since august on the sales forecast of up to $18 billion in 2021. the company previously said it had signed agreements with $20 billion -- worth $20 billion this year. airbnb reported record sales and earnings for the third quarter. a net income of $834 million far exceeded expectations. airbnb profited as people chose

to book longer and more frequent stays. that is it for daybreak australia. the market opening and just a few moments. this is bloomberg. ♪

♪ >> we are counting down to asia's major market open. our top stories this hour, global bond yields tumbled, with investors pairing rate had like after the boe's surprise decision to hold. rejecting president biden's call for big production boosts, leading to speculation he wil