start to the u.s. china relationship mr. biden took office. talks, after tension between the countries have been building over issues including taiwan and restrictions on sales of u.s. technology to china. president biden has tapped robert caleb to run the u.s. food and drug administration. the move puts caleb back at the agency's home in the midst of the still raging pandemic. senator joe manchin immediately opposed the pick over his ties to the pharmaceutical industry. in germany, the four coronavirus wave is hitting with full force and there is no sign a record infections easing anytime soon. daily cases searched fast 50,000 this week or the first time. some hospitals are already overwhelmed with patients. officials say germany needs to ramp up its vaccination campaign. a number of women enrolled in

mba programs across the united states has hit a record high, according to a nonprofit working to create gender equity issues. it says women make up 40% of incoming classes in 55 business schools, up from 38.5% last year. the foundation says the great resignation maybe one of the reasons for the increase. 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 mark crumpton. this is bloomberg. ♪ >> welcome to bloomberg markets,

i'm greg bonnell nala. matt: here are the top stories that we are following for you from around the world. as a decision on the leadership of the fed approaches, inflation fears rip investors and consumers. u.s. sentiment collapses to a 10-year low. another corporate breakup. johnson and johnson announces it is splitting into two separate companies. many start to rethink their conglomerate structure. u.s. thanksgiving and inflation are set to collide as americans get ready to sit down to a much more expensive meal this year all that and more, coming up. greg: it's incredible because after that scorching hot inflation print from the month of october, concerned that it will get worse before it gets better. here in toronto, we are at a record high.

well above where we need to be. i know you are getting back to that territory on wall street as well. like now, bond yields pushing higher. we saw that reaction earlier this week with concerns about inflation. we are told time and again that it will ease but consumers are dealing with it on a daily basis. the fact that u.s. consumer confidence is being shaken by these hot inflation prints. we will get our october numbers next week in canada. it is pretty much the same situation. how much longer can they say, i believe you, and it will be just fine? but i could not believe this number when i saw it. 4.4 million americans quitting their jobs. that is an unprecedented number in terms of americans just handing in their resignation papers, incentivize by record

wage gains and other attractive terms being offered by employers. americans leaving their jobs in droves. meanwhile, the number of available positions rose to 10.4 million. people feeling the power to say, i am looking for something better. matt: there are so many job openings, you can understand why they would feel confident in doing this. employers are having to fight to get labor. not only giving them better salaries but also giving them better working conditions, at least what are perceived as better working conditions. a lot of people flooding to work from home, for example, and they are shifting jobs so they can do that more easily. interesting move in johnson & johnson today as well. the headlines are kind of shocking. this is an age-old behemoth, almost half $1 trillion company,

no splitting into two. at one point we were up about 2%, now about half a percent. they will focus one side of the business on drugs, the other side on consumer products. david westin spoke with the ceo earlier today. >> both of these businesses have the potential to be growing at least mid single digits and above going forward. we think this will better position our consumer business in this evolving environment i mentioned earlier to be more agile, more flexible, more innovative, to reach more consumers around the world. matt: joining us now is damien conover, analyst at morningstar. he has a $106 price target on the stock. will you consider changing that? damien: based on the news we have seen today, i don't think it will drive a change in our fair value. the consumer assets for johnson & johnson were relatively correctly valued in the overall

conglomerate structure. that has not always been the case if you think about some of the other divestments that are out there that can unlock value. gsk's consumer group coming out of its group. you have seen some of these breakups create value. in this case, i don't think it will create much value by separating the consumer group. greg: always the first thing you think about if a company is breaking things up, perhaps trying to unlock a hidden gem that is being outshoned by another part of the company. if that is not the case with j&j, what are they doing? damien: i was pretty surprised about the news. when you think about historical messaging to the market, it is that we do well in this conglomerate structure. we give our business leads a lot of autonomy, they can utilize their cash for their own business. at the same time, there is probably a little bit more

agility that the two companies could have versus one as a whole. that being said, i don't think this is going to create a lot of value and i don't think it really changes the dynamic of the growth trajectories of the two individual companies versus one company as a whole. still surprised by the move but it does follow the general trends we have seen in the big pharmaceutical landscape. if you remember back in the 1990's, these firms built into giant conglomerates of all sorts of different businesses. j&j has really booked the trend into focusing and staying into one entity. this follows the rest of the crowd with this news today. matt: does it may be a signal a market top that we are starting to see these breakups, with executives trying to squeeze every last drop of value out of the assets they hold? damien: maybe. if you look at pure play

consumer groups out there, valuations are pretty strong. j&j is doing the separation. when you look at cops that look like good values. that is probably part of the discussion here from j&j's perspective. i don't know if it is a top, but a pretty favorable environment for consumers and consumer companies. greg: we saw general electric earlier this week, say we are reading into three. is this a cycle that we are in? are we going to be talking about these companies growing synergies again? damien: things tend to go in waves. right now it's about being more focused. this also signals from the pharmaceutical industry there is less concern about massive drug reform. when we think about the 1990's when conglomerate structures were built, a lot of that was built because of concerns about

potential drug pricing reform in the 1990's. fast-forward to today, there are still the same concerns about drug pricing reform but i don't think it is as elevated. a lot of the movements by pharmaceutical firms really signals a likelihood that there will be drug price reform but it will not be that significant. matt: they keep a aaa rating, which is coveted by the company, fairly rare in today's landscape. does that remain? damien: good question. quick answer is likely but hard to determine. the consumer group is a fairly small piece of the overall group. they generate about 15% of sales, around 15% of the valuation of the company. it probably will not radically change the balance sheet for j&j. if they continue to operate in the conservative methodology they have in the past, this divestment probably has less of an impact on the credit rating.

matt: thanks for joining us, damien conover. talking to us about the split at johnson & johnson. breaking news in the fx sector. the turkish lira sliding past briefly 10 per dollar, as the currency continues to weaken to new record lows. for a moment, you could buy more than 10 turkish lira for a dollar. right now trading at 9.9989. the inflation picture there as well as the rate cuts that the president continues to push really are not helping that currency. i guess they will be able to export goods at a faster pace, and we will be able to vacation in istanbul for a cheaper rate. inflation pressures top of mind for consumers in the u.s. as well as in ankara. investors and the fed paying close attention.

we will discuss with simona mocula of state street. this is bloomberg. ♪

matt: this is bloomberg markets. i'm matt miller. canadian thanksgiving may be over but the u.s. holiday is coming up. four american households, they are prepared to sit down to their costliest thanksgiving dinner ever. what would thanksgiving be without an inflation meal story? hold frozen turkey prices are up 30% year on year. retail prices for pie ingredients like milk and sugar at multiyear highs. alcohol and mixed drinks are

climbing. it will be a more expensive meal. greg: when you think of how many people you traditionally put around a table for a thanksgiving meal -- you are inviting siblings, nieces, nephews, parents. i do the grocery shopping in our house. there are times where i will say, it is a steak night, and then you see the price of it. then you say, maybe it is hamburger night. prices are up everywhere, and they staying. matt: i have a feeling a lot of people will be shooting their own turkey instead of buying a frozen bird. the problem is you cannot get them that plump. in any case, speaking of prices, they are squashing sentiment in the u.s. the university of michigan preliminary index decreased to 66.8.

consumers expect inflation to rise 4.9% over the next year, the highest since 2008. let's bring in simona mocula, chief economist at street -- state street global advisors. an eye-popping number on cpi and ppi. only one data point, but do we see these levels hanging around all year? simona: i would say by this point it is more than just one data point. it was one data point above 6%, which was extraordinary, if you look at it from an historical standpoint. i don't think we can say it is shocking given the other dynamic the economy. it looks to me that these dynamics will continue for some time, probably not until the second half of next year that we will see a meaningful deceleration in prices. greg: if we are in a situation

where consumers on a daily basis, whether filling up their car, going grocery shopping, have to deal with elevated prices, can the central banks keep their faith? the central bank of canada is trying very hard to communicate to us, this louise, we have it under control. the fed is doing the same thing. it seems like a risky conversation to keep having four months. simona: at some point, things will start improving. we thought they were starting to improve already but we were under the wrong impression apparently. it is inevitable that at some point rings start to stabilize. the supply chain challenges we are seeing today will not be with us forever. the vase effects that come from energy prices will start to work in the opposite direction in 2022. it is very painful to go through it. the central banks are right in saying that it is transitory, it

is not permanent, will not go down forever, but it is in emotion of purchasing power. i think you see right the consumers responding to that with deteriorating sentiment. and not only that, they are responding as workers. consumers are also workers. you mentioned on the program the quit rate. it is a logical response to look at rising costs of living, to look at the tight labor market, and ask yourself, as an individual, i cannot control inflation in the aggregate but perhaps i have more control in my earnings power and i should investigate some options. matt: a lot of people, millions of people are quitting jobs and looking for something new. at the same time, the participation rate is very low, something that the fed is focused on. why do you think that is?

simona: unfortunately, i think there is a portion of the working population who has retired. i have spoken to a large number of people in the health care industries in particular who basically said it has been so stressful, i was already considering doing this, and it is the right time. others will come back who are dealing with other issues like childcare, covid related concerns. but a portion of these people who have left, lost to retirement, will not be coming back. greg: when will we be able to look back on this and say, yes, it was an incredible disruption the pandemic itself, we had a hard time sorting ourselves out with supply and labor constraints -- when do we get past this in your point of view? simona: the inflation numbers will not stay as hot as they are now, but i do believe the inflation debate remains a hot

topic well into 2022. there is this idea of speaking inflation is not the same argument as saying all inflationary pressures are transitory. it is possible that we end up with a higher equilibrium inflation rate if inflation expectations and wage expectations remain elevated. those are the indicators they are watching carefully. we want more evidence to see that recent gains, recent moves are sustained. it may not be over. greg: even a year from now, we may be talking about this. thank you, simona mocula. world leaders have been joined up at cop26 making all kinds of promises. what did they amount to? we will dig into that after the break. break.

greg: this is bloomberg markets. i'm greg bonnell. cop26 climate talks stretching into the weekend. delegates still hammering out how to curb rising temperatures and who will become bill? joining us from glascow is maria tadeo. it is one thing to make promises, it is another to pick up the check. maria: yes, we are now officially into extra time. the conference should have ended one hour ago, and i wish i could show you what is going on behind the scenes because the action is frantic. you have delegations, people not usually taking the spotlight negotiating that communique. a lot of it is about who pays for this transition. the poorer countries say the richer countries have to help us make the transition, and that is

not the only sticking point. issues about carbon emissions, carbon pricing, what to do with fossil fuels, and china is a big question mark. how ambitious is china willing to go on climate change? matt: the biggest emitters in the world are our personal vehicles and airplanes. will the u.s., germany, japan to stop manufacturing internal combustion engines over the next 10 years? maria: the wording on this is not fully clear. there is a new draft making the rounds. we expect to get a new document before midnight to be approved for tomorrow. the actual question is, there is one thing between the language and implementation. when you look at the targets, the united states is not have a good track record with climate change. resident biden is trying to change that narrative. the question is whether that will materialize in action.

it is really about china. we have heard from delegations saying we did not hear from china at g20 and cop. they wonder about their targets. china has consistently missed their targets. greg: you can see commitments from certain countries to say i am all in on this. canada, other energy producing nations, have more of a complicated road ahead consider the importance of fossil fuels to our economies. maria: the language around fossil fuels we know is a big problem. some countries say, what we are seeing in this crisis, renewable energy is not there yet. we need a period of transition. we all agree we have to move away from fossil fuels, the question is how quickly. what will be the transition energy? are we looking at nuclear?

that is making a big comeback in the conversations, but are we trying to gas? politically speaking, gas is tricky, and a lot of this depends on russia, who did not participate in this cop and was also absent at the g20. matt: maria tadeo, thank you very much. for greg bonnell, i'm matt miller. this is bloomberg. ♪

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mark: vladimir putin has a

message for the united states. moscow will not tolerate creeping expansion by their armed forces. into the ukraine, the united states is raising the alarm with european union allies that russia may be weighing a potential repeat invasion of the united states. this comes as tensions flare between moscow and the block over vibrance and energy supplies. washington is monitoring the buildup of russian forces near the ukrainian border. covid-19 cases are serving debt surging in beijing, and all activities there have been moved online. the city is experiencing more infections in the different cluster than any other time in the past 17 months. in thailand, bars and pubs, karaoke operators, other night entertainment venues are closed for at least another two months to prevent them from becoming new covid-19 clusters. early signs of a covid-19 resurgence are popping up in the united states in the northeast.