manus: good morning, i manus cranny. dani burger alongside me in london hq. president joe biden and xi jinping hold her first official summit as they cease to stabilize relations. uneasy about inflation. he voices concern about surging

prices. we get the final piece of the deal. the key jobs data. plus, our conversations with india's oil minister ahead of nigeria's safe oil company. oil historian dan yergin's this hour. your big day for global relations. we are going to dig into that in a moment. the readouts. the oil market is on fire but it is the inflation narrative that is a source of angst. it was a taper denied, a taper delivered, and now, there is a chorus rising on accelerated taper. these are the names that we put together for you. larry summers -- every board. you are looking at william dudley, larry summers, james. get on with it. we could end the taper sooner. what would a faster taper look

like and what would it mean for the destination of rates? you have x fed members -- ex-fed members and economists raising the course. dani: larry summers loves a good tweet storm. that came from a twitter threat he posted on pretty recently. the issue they are all flagging is that by waiting to raise interest rates -- that handbrake u-turn will be what sends markets off. the fear is that this could ignite a recession given the current market we are in, the current valuation. manus, let me tell you that the bond market at the moment is pricing in something similar to what these titans of the prior federal reserve boards are saying. morgan stanley noting that usually, when you have deeply negative real fed fund rates, the fund rate with inflation, it indicates a very stimulative environment. typically, in that environment,

the deeply negative real rates are in the white -- that would mean we have a steeper yield curve. it does indeed coincide with a more stimulative environment that is growing. this time, it that is not the case. it means the bond market does not see that this way and the spread is declining. morgan stanley says they think the fed is behind the curve and they need to raise rates. manus, let me also get you a check in on these market this morning. not too much action. a lot of the action is coming from the readout of this call between biden and xi and what support that will have for risk markets. we have a pretty much flat s&p 500 futures session. it changed yesterday. we are still hanging around in that limbo and getting some bond buying in the asian session. opposite some steep selling, 10 year yields went above 1.61, and we are following low that, just below 1.6. this is something we tend to see

when you have haley set -- heavy selling in the u.s. session during the asian session pit also looking at the yuan this morning again after -- asian session. also looking at the yuan this morning. this is about a six-month five for the yuan. finally, brent crude, manus, you mentioned, it's on fire. up nearly 1%. there is this question of whether we will get the strategic reserve releases or not. when we are talking macro, this is the story of the morning. joe biden and xi jinping spoke on the need for cooperation in their first face-to-face virtual summit. both sides are aiming to stabilize the u.s.-china relationship. pres. biden: common sense guardrails. to be clear and honest where we disagree and work together where our interests intersect, especially on vital global issues like climate change. none of this is a favor to either of our countries, what we do to one another, but

responsible world leadership, and you are a major world leader. dani: our senior editor in singapore joins us now. derek wallbank, what do you think of these liens on taiwan? is this a reiteration of u.s. policy or does this signal something different? derek: it is absolutely a reiteration of u.s. policy. it does not intend to signal anything different on the u.s. side. to my mind, it is a reflection of the fact that china got there readout out first. but you know, certainly, the conversation that xi and biden had went very long, little bit longer than most people expected. it was described on both sides as a sort of cordial conversation. there were clear differences. there always are in this relationship. all of the problems of the relationship did not get solved in three point five hours, but at the same point, the idea here

is more to try and set up a framework for engagement. biden likes to say that he does not want competition to become conflict, and that was a point that was i think really stressed, so they are trying to sort of figure out ways to go forward. there are some baby steps available, some green shoots that could be taken as progress. maybe now, maybe in the coming days to weeks, so you will have to watch a little bit to see kind of how this all plays out but again, nothing absolutely major, but you certainly do see some positive commentary coming out of this even if all of the problems between the pair have not been fixed. manus: good to see you. i will come and find you later. i know there's three floors so you can't be hiding too far away from me. i will get a roadmap. the one thing that caught my eye was xi went off script and i think that that was about tonality from the u.s. side. we can debate the nuances about what news you are putting out

for your own audience from both sides but the fact that he did not stick to script is something which, my eye. derek: it's really interesting, right? because u.s.-china meetings tend to be extremely scripted. you start off the meeting with reciting, you know, sort of phrases that are key to everybody's understanding of the relationship. but biden and xi are two people who are not may be, you know, the closest individuals, but they certainly go way back. they have been together on the world stage for quite a long time. and i think that the major issue from the u.s. side certainly was that they did not want there to be any ambiguity here. when the u.s. is making moves and when china is making moves, they want some real understanding of what each other is actually trying to do. and i think there's a lot of misunderstanding in terms of what folks are trying to do. you see some commentary on both sides but i think especially on

the chinese side, where you see some commentary about what the u.s. is trying to do and it bears no relationship with anything that would rationally go on in the united states, so i think that getting both sides at a very high-level kind of on the same page or at least in the same book is actually a really helpful thing if the goal is to try and establish the framework from which you won't have a misunderstanding develop into something catastrophic because certainly, there are a lot of tender boxes around and it's -- tinder boxes around and you don't want to light something on fire. manus: i will get the roadmap from juliette saly in a moment. senior editor in singapore -- you want to join? you know it we can do -- you know what we can do, family zoom call on daybreak? let's get to juliette saly. juliette: elon musk has exercised options and sold more tesla shares. the world's richest person

offloaded about $930 million of stock. it adds to the $6.9 billion that he sold last week, which since the -- the company's share price tumbling. it expired above their price per tesla and jp morgan are disputing adjustments made to the contracts in the wake of elon musk's threat to take the company private. the e.u. may ease restrictions on state aid. they could agree to a new policy when it meets on wednesday. a draft seen by bloomberg considers letting government-subsidized chip plants on the continent. the french have called for more intervention to overcome the global supply crisis. boris johnson said it would be perfectly legitimate to suspend part of the brexit deal with the e.u. the u.k. is demanding a major overhaul of the divorce agreement due to the impact on northern ireland. suspending the deal carries the risk of severe retaliation.

he wants to negotiate a solution to the escalating trade dispute. global news, 24 hours a day, on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. dani.♪ dani: that's juliette saly in singapore next manus, giving me some extreme foam of this morning. -- fomo this morning. yousef gamal el-din will be speaking to ngo's petroleum and natural gas ministers. that is next. this is bloomberg. ♪

manus: this is "bloomberg daybreak: europe." i am manus cranny in singapore. dani burger alongside me in london hq. with the course of opec-plus nations backing the alliance's

plans -- plants are growing. this comes as the biggest oil and gas companies and energy ministers gather for day two in abu dhabi. my cohost of daybreak middle east, yousef gamal el-din, is on the ground with a special guest. yousef: thanks, manus. we talked a bit about the producer side of the equation and not enough about what consumers are seeing in terms of what needs to be done around policy issues so to flesh that out in a bit more detail, i'm glad to say we are now joined by the minister of petroleum and natural gas and housing and urban affairs. thank you very much for making it to the program. these higher energy prices are stoking inflation. your government has had to cut taxes to absorb some of the pain . has there been a concerted push or is there a concerted push underway to try and get opec less to alleviate some of these supply constraints that you see?

>> thank you for having me on your show. you asked whether there has been a concerted push. now, opec-plus is a grouping. i'm sure all of us have individually spoken to each of the opec-plus members. i have spoken to my counterparts from saudi arabia, uae, russia, and i can go on naming others and i'm sure some of the others, the americans and all of the others. bottom line here is that -- it's correct. we had to cut excise duty at a time when we are confronting many developmental challenges. challenges of covert are not over. we had to feed 9 million people three meals a day during the pandemic. we produced vaccine doses and it all comes from revenue collection cutting excise duty by the central government and a percentage tax -- that has been

a difficult decision but we have taken it. inflation is at the core. one of the large economies -- the largest economy, $20 trillion economy, is facing inflation numbers, highest in 30 years. if you look at any country around the world, india included, yes, for anyone to try and argue that high oil prices do not result in innovation would be a difficult argument to make. i was told by one of my counterparts that it was -- it's all part of the same equation. you cannot take it away. we made a concerted push. i'm told that is being factored in but the most important thing is i think apart from our concerted push and our telling them to do whatever they can, we are all joined -- joint stakeholders, both consumers and producers. yousef: that is what i was going

to follow-up on. could there be a coordinated release of some of the strategic reserves? maybe the u.s. can take the lead and then india and some of the other major consumers could follow? would that make a difference? hardeep: i would not want to speculate on that. whether a country or a group of countries decides to relieve the strategic reserve, i don't think it was intended for a situation like this. if you look at the language and charter, it's a force majeure situation. a global outbreak, oil supplies shut off. but more important, i think the transition has to be managed by both and i think it is time that countries realize that if they are not going to be able to ensure a smooth, managed transition, they themselves would also have to then take the

adverse consequences. yousef: if brent crude is a inflation and you are saying the pain is being felt, what is the right price range that would be more acceptable? you would not have to make these kinds of comments at an event like this. is it 60, 65, 50? hardeep: i personally don't think it's fair for a minister from a country like india, which you know is dependent 85% on its liquid hydrocarbon requirement important. to me, the price would be much lower than the figures you are saying but that not fair. everyone with a stake has to realize we are all in it together and if you manage the transition in a predict ball and stable manner, then both producers and consumers could be in for a win-win. yousef: the u.s. administration is facing pressure to put a stop to some of the exports.

if they do give into that, are you prepared for that eventuality? hardeep: as i said, i don't respond to hypothetical questions because all kinds of things will happen for instance, perhaps one of the unintended consequences of these opec-plus decisions is -- i heard a report saying that the united states is going to put one million barrels of shale per day into the market. there has been a revival of the civilian nuclear energy issue. i heard a statement. all kinds of things would happen. as far as india is concerned, look, we have taken a large number of steps massively area stepping on the exploration and production, moving from less than 1% biofuels mixing in 2014 to 8.5 percent now, taking that to 20%, you know, setting up 22,000 electric vehicles -- countries will take all those steps are but as i said, for the

foreseeable future, traditional fuels, petrol, diesel, petroleum, they will be the mainstay of the global economy. and i think we need to factor in very carefully what happens when those prices go through the roof. yousef: i was going to follow-up on that. part of the conversation is the energy transition. india is opposed to stopping some of the coal processing plants. what is your line in the sand around keeping energy at a reasonable cost versus protecting the health of indians? hardeep: first of all, i like that term, line in the sand. you would define the parameters -- yousef: we are in the desert. hardeep: let me put it this way. i think you're referring to what happened. -- happened at c.o.p. i am not a native english speaker. what is the difference between

faced in and phased out? i don't know. for a large number of countries, which during the process of the transition will have to rely on whatever means of energy that they have, i mean, suddenly, somebody could enhance, you know, the availability of petrol, diesel, gas in the market, people would not have to use that. but it is not india alone. india is one of the countries. now, very often what happens is that it is convenient to take the focus off oil and gas and suddenly talk about coal as if that were the main issue of discussion here. so as i said, there is a little play around here. and you know, whatever the language, as where it came from, etc., a large number of countries will in the short run have to make sure that their citizens are supplied with electricity. if that is phased out -- i don't know if the english language has a different time connotation than faced down.

i don't know. -- phased down. i don't know. i don't think that that is -- yousef: i'm glad we got you to weigh in and get the view from india on this particular matter. thank you. that is a minister for petroleum and natural gas and housing and urban affairs, hardeep singh puri. dani, manus. dani: that is yousef gamal el-din. a fascinating conversation. the minister not speculating on a release. coming up, we are going to be live once again with the vice chairman of ihs markets. that is next. this is bloomberg. ♪

manus: welcome back. we are live from abu dhabi, day

two of one of the most important energy events of the year. jampacked few sessions but let's resume our discussions and flesh out a different angle around what has been much debated in terms of a potential xdr release in the united states. we are joined by one of the leading voices in the energy world, the vice-chairman of ihs markets, so thank you for making it to this particular post of bloomberg tv. you just released a report and it kind of goes against the grain of some of the conversations i have had with energy ministers including of saudi arabia where the argument is that banning oil exports or an ftr release would not make much of a difference. >> i'm not sure it goes against the grain exactly but it certainly goes against the grain of discussion in the united states. 11 senators have written a letter to biden saying you should and oil x -- ban oil exports. if you took 3 million barrels a

day out of the market, you would create a price shock. other countries would be scrambling for supplies. it would end up not bringing prices down but would send gasoline prices up and would contribute to this general global supply chain disruption we are having. so you know, it seems to be that this is the way we solve the problem which would make it worse. yousef: we heard from the u.s. energy secretary and she said all options are on the table. when you look at u.s. energy policy sort of from a bigger picture perspective, how would you characterize it? daniel: the thing that has been left out of the discussion, we had the administration asking opec-plus from our oil and even in abu dhabi, i heard the various ministers say is in the united states the world's largest producer of oil? why are they asking us from our oil when they have more oil? we have seen that it has been used politically before. we saw it when al gore was ready

for presidency. that was the thing to do. it would have some miner impact but it does not resolve the basic question, the tightness in the global market. there are a lot of other ideas on the table like banning crude oil exports which would make the situation worse, which would mean higher gasoline prices for america, but i think the administration is going down a list of all the things. there are not that many things that they can do. yousef: opec-plus made it clear individually, when we have a conversation with members throughout the conference, 400,000 barrels a day of additional supply on a monthly basis. they are staying the course. there is no need to put an additional barrels into this market. is that a view that you can get on board with? daniel: i would not endorse a view like that. i think i understand their logic, which is at 23 nations trying to hold it together, they can start manipulating it. they look at the united states and they say there's a lot of other things that the u.s. is doing. there's a lot of oil to sanction

and they are just saying, wait, you have oil. why aren't you addressing your own domestic oil industry before coming to us? they just don't understand it basically, they do not understand it. daniel: i was -- yousef: i was reading a note from ups and they upgraded their brent crude forecast to $81 a barrel. they see a real risk of a supply shortfall. is that what you are seeing in the data as well #daniel: -- as well? daniel: around $77. we are seeing it is a tight market. we see the spare capacity shrinking and if you have decent global growth, you are going to have a big call on oil. if jet fuel starts to come back and people start going on airplanes again, that tightens the market 3.5 million barrels a day. people have the sense that there is the risk that is separate from the natural gas and the

coal problems and the slow wind speeds that have bedeviled europe. yousef: thank you very much for that is daniel yergin -- thank you very much. that is daniel yergin. plenty more coming up on bloomberg tv. this is bloomberg. ♪ every day in business brings something new. so get the flexibility of the new mobile service designed for your small business. introducing comcast business mobile. you get the most reliable network with nationwide 5g included. and you can get unlimited data for just $30 per line per month when you get four lines or mix and match data options. available now for comcast business internet customers with no line-activation fees or term contract required. see if you can save by switching today. comcast business. powering possibilities.

dani: good morning from bloomberg's european headquarters kid 6:30 a.m. in the city of london. i am dani burger with manus cranny in singapore. this is "bloomberg daybreak: europe." here is what you need to know. calls for cooperation. president joe biden and xi jinping hold their first official summit as they help to stabilize u.s.-china relations. the boe chief has concerns about surging prices.

get the final piece of the puzzle today with vicki jobs report. plus, we are alive at adipec -- live at adipec. manus, good morning to you. the choir is growing of voices and former fed officials who say the fed may be on track for a policy error. this is something that jeffrey lacquered said on bloomberg teat -- jeffrey said yesterday. they need to recalibrate quickly. they need to start early next year in the first half, begin with the taper, and they will need some luck, he says. manus: if you think about the narrative, taper denied, and the market pushback. taper delivered, and now, the market is pushing back again. you look at 30 year paper, and it breached that 2% level and i think that that chorus that you have -- the question we need to ask ourselves now is what would a faster taper look like and to what extent would it unseat either the bond market -- 2% --

and would it unseat the equity rally which morgan stanley are already a little bit unsure about in terms of being knee-deep in u.s. stocks next year? dani: listen, i was listening to that bill dudley interview yesterday and one of the thing he was trying to drive home is the likelihood or possibility of a recession. it is appearing and bond markets when you have the greenspan conundrum coming back, you have a yield curve continuing to follow despite having pretty easy policy. i think that there is this overriding concern, manus, that the fed's blunder might manifest itself into damage in this economy. manus: absolutely but then you have this infrastructure bill which has gone through. 30% of the inflation driver is from the oil markets are very timely that we are asking all of these guests about what effect would a release actually have? that is the critical point. let's talk about the s&p 500. it is back to flat, little bit light around its feet this

morning. -- lighter on its feet this morning. a me a call back. -- a mea cupla. in terms of the yuan, you have more liquidity go in. and an upbeat xi-biden read out in terms of getting the trade deal and the trade numbers back on track. oil is flying higher despite all these threats about its release, banning of exports, which you just heard from daniel yergin. they don't understand the oil market. that is the american administration at the moment rather than the people in abu dhabi. a bit of a punch i think. basically saying a -- export ban would actually drive these prices higher. let's get back to adipec. yousef gamal el-din is on the ground, chasing everybody that is available. good morning. yousef: hey, manus, great to

pick it up again. let's dive straight into more discussions. we are joined by the ceo of a nigerian company. thank you for stopping by here. i look at all the meetings and the discussions, trying to get sort of your sense of what the biggest take away is before you get on a flight. >> it's very obvious the energy industry is in a huge transition. everybody is making an adjustment to make sure we meet the target. obviously, the whole energy industry is adjusting and changing. of course, there are new opportunities. people have more cash development across the globe. so much is happening. we see a good opportunity. yousef: you have spoken in the

past about nigeria's production problems. 1.4 5 million barrels per day, which is lower than where it theoretically is. how quickly can you ramp back up and get to that? mele: it's obvious that by the close of the year, we would get back to that. as you may be aware, when we mentioned this figure, we are only talking about food oil. when you combine all this, it can be 2.0 by the end of the year but the fact is clear, during the covid-19 situation, we shot some down. they don't get how you want them. we do have some challenges. that will get us back before the end of the year. yousef: to what extent has an absence of new international investment contributed to the challenge that you have today? mele: obviously, the covid-19 challenge and low investment in the oil and gas sector

particularly, and this is coming back clearly for our country. some level of lack of clarity. there is still very good traction with our key partners with asset development. i would think it would pick up. obviously, a number of engagements pointing towards the investment situation we saw prior to the covid-19. yousef: manus with a few questions as well. i would like to bring him into the escutcheon as well. manus: -- into the discussion as well. manus: thank you very much for introducing me into the conversation. yousef i think has asked pretty much everybody, as we have gone along what their view is. what their view is in terms of the u.s. -- good to see you, sir. a release. i suppose the question is this.

to what extent do you think it would shift the dial? would they have to release on a continual basis? what is the risk on the u.s. releasing from the ftr? a real and present danger? mele: marginal impact because we are above the pre-covid levels so therefore, since supplies are -- obviously, there has to be significant -- to make any meaningful change. obviously, you know, demand is growing. we are still opening up many economies and obviously, you know, this would not be sufficient to create that change . that means that, you know, we would still try to ca situation of $80 oil. manus: dan just sat in that seat with yousef and said if the

united states bans exports of oil, oil prices would rise. do you agree, and by how much? mele: 80, below 100. manus: we are seeing call options trading at 200 $50, spectacularly bullish because on oil out there. you know, just how tight is this market? mele: yes. i don't see that in the short term. manus: and in terms of the calls from india, the united states, to opec-plus, to pump more oil, julian lee has said, actually, part of the narrative that you are putting out there from opec

is misguided. 660,000 barrels below production. why is opec-plus so resistant to this call for more oil? mele: two things. there are a number of issues on the table. the key issue is putting more money into oil. that is clearly lacking today. the second part of it is i'm not sure that quick production of oil is very possible. that may not be very realizable and i can see why this is coming. it probably could be a bit difficult to do that. manus: we are dealing with natural gas prices every day. we have seen spectacular rises since you and i last caught up. are we still in crisis mode in the natural gas markets and are

you exporting more lng to europe? mele: yes, we do more to europe but clearly, we are in some kind of short supply for nigerian lng . a number of steps are being taken to make sure -- project. for 2022, i would see some kind of decline in our ability to supply to the market. i'm not sure we will be able to do it. we will catch up by the end of the year. clearly, the forecast is maybe -- to make sure that we bring that number well below 50. that would be possible. of course, that also means more supply to europe. manus: thank you so much for joining yousef and myself this morning. i'm envious. he is having a cracking time down there at adipec. mele kyari, the managing

director of the nigerian national petroleum company on all things oil and natural gas. the calls for the fed to taper. they ramp up. we will discuss the market mood right here on bloomberg. ♪

>> there is nothing that i am seeing in these fundamental factors that leads me to think that this is a long-term change in inflation or inflation occasions. we are seeing pressures that are real but most of the evidence, in my mind, seems to be that they will be temporary even though they are real and people are having to pay it, but the challenge is if we overreact by saying let's change the path of monetary policy to try to deal with a one-time affect, that could lead to a worse long-term outcome for the economy. blacks afraid to supply more gas

, supplying more computer chips. the risk for us is that we also see that in this recovery, the output gap is now, you know, approaching inflows in the labor market in particular looks tight. that is the big issue at the moment. dani: welcome back to "bloomberg daybreak: europe." i'm dani burger in london with manus cranny in singapore. we were hearing from neel kashkari and andrew bailey talking about raising rates. let's get into the conversation more. joining us now is the senior investment manager of global bonds at an asset management company. that is what we are hearing from the officials but we have had a whole host of former fed officials from jeffrey lacher to bullard. summers as well saying the fed is behind the curve and they risk having to do the handbrake u-turn if they don't start

tapering faster and raise rates soon. are you in the same camp? >> good morning, first of all. we differ a little bit, i would say in the sense of how we are thinking about the next six months to 12 months. that is predominantly because we think the inflation story is well reflected. the fed has reacted at least on two occasions this year and therefore, we have got a taper that has been announced so i think it seems premature to demand much more taper. continuation this year into q1 of 2022 would probably cause the fed to taper faster but we think that seems a little bit premature at this juncture in the cycle. and because of that year,

actually, from what we have been doing lately and our funds, is to remove our exposures at the long end of the u.s. and european curves, which has been, you know, one of the ways we have been expecting this increase in inflation over the course of the year. particularly in the u.s., because a lot has been baked into the parts of the curve in the u.s. manus: good to see you today. i also noted that it is interesting how you have moved from hedging inflation risk to seeing china as your tail risk. i read other notes that say if there is a tailwind on trade and tariffs -- we just heard from xi and biden this morning -- that might be a table setting. there might be a tail risk. what is the head? ella: when we say tail risk, we

mean the sort of risks we don't want to carry home with us overnight when we go to bed. the risk that bothers us. not necessarily our core case, but something that would have an impact not just on markets. that is effectively a much slower out turning in china and i'm not talking about the cyclical picture, which seems to be showing some signs of green shoots. i'm talking about the structural issue we have at play which is the real estate structure of china. we don't think that is going away anytime soon. that is in the high-yield part of the bond market in china, particularly real estate. we think that is reflected in other credit markets. not just domestic to china but externally. how do you hedge for that? by increasing duration in china.

that is something we have been doing recently. edging for a position there, particularly the five-year part of the curve. if indeed this out-earn of growth comes to be, then the authorities will be forced to do something much more significantly. it should also mean, you know, much more further down the line, that the currency has to trade weaker and that is also a hedge we have been putting in place. manus: ok. we have to dry it short today. we have a roller coaster of topics to get through today. but come back and see us soon. that's see whether those curves do steepen. janet yellen did warn the market. we got far too anxious about the flatness. ella hoxha, our guest host this morning on markets. coming up on the show, it is face-to-face. joe biden and xi jinping. a call for cooperation at the first virtual summit. more on the different readouts

here on bloomberg. ♪

manus: it's "bloomberg daybreak: europe." on the road, i manus in singapore. dani burger at london hq. adipec. the energy ministers, day two of adipec. little bit later on, we will get the iea releasing their monthly oil or. timely enough, isn't it? at 4:00 p.m., christine lagarde speaks about women in finance. dani: that's right. later, we will be getting the fed president taking part in a discussion about racism, the economy, hosted by the minneapolis fed.

this

-- >> president biden brought up taiwan. u.s. commitment to taiwan. the u.s. talked about president biden talked about human rights in hong kong and xinjiang, about china's trade policies. we know from the chinese side that he talked about how china won't tolerate interference in that area. we know that president biden reiterated america's long-standing policy is opposed to independence. that is something president biden said we are hearing from the chinese side and not the american side. >> you make an interesting point. part of what came out of this

meeting was not a joint statement. we had statements released from china and from the u.s. looking out what each different party said. is there anything to be gleaned from anything that was conflicting or perhaps of a different tone between china and the u.s.? >> we saw in the lead up to this, the excerpt from the summit with president biden talking about the need to establish some commonsense guardrails. interestingly, it is a theme that president xi brought up as well. he talked about the need to return to what he called a rational and pragmatic path in sino-u.s. relations. clearly, a jab at former president trump's administration's approach to the relationship. both presidents also spoke about climate change as an area where the two countries can and should be cooperating, so it does seem that one theme emerging from the summit is that there are areas where the two superpowers can be

working together even if they are not going to solve all their problems immediately. manus: very, very reminiscent of a lot of other foreign-policy conversations i have had in my region, which is let's agree on the 80% and put the 20% or more to one side. bruce, thank you so much. bruce einhorn with the latest on xi-biden. we will go into these next couple of days at the new economy forum where we will have trade ministers from australia, a host of political, economic, and various thinkers who would be able to sort of make some sense of this meeting. i think the whole aspect on trade is going to be very important. dani: so fascinating. i definitely heard commentary that perhaps the u.s. should revisit their stance on tariffs with china given the inflation that is being seen in the u.s.

without the impetus for the u.s. to do that. it does not seem like that is likely but biden certainly is evaluating different measures to control some of the inflation in the u.s. manus: indeed. it's all about oil, the price of it, the specter of a release. use of caught up with the indian oil minister. the biden administration does not really understand the oil market, says dan. that is a punchy line. this is bloomberg. ♪

>> good morning and welcome to "bloomberg markets: europe." mark cudmore joins us from singapore to take us through all of the market action. the cash trade is less than an hour away. biden and xi cooldown hostilities. andrew barely feels uneasy about inflation and evidence mounts that a shortagof