manus: good morning from our middle east headquarters in dubai, name manus cranny -- i am manus cranny alongside dani burger in london. a bloomberg's group says the u.s. and allies are considering sanctions on russian banks if moscow invades ukraine. the pboc shifts toward easing,

with the downturn hitting growth. evergrande on the brink of default. plus, omicron fears subside, global stocks rise and the s&p 500 erases last week's drop. treasury yields at higher. how long will the risk on narrative indoor -- endure? i remember we used to wait until the letter arrived, it was so important in setting the tone. he is ready to shave risk and this is what he said, a bear market is required at this point. i think over the course of the next year, and he or she that loses the least, maybe they are the winners. there is the tone from dennis gartman. dani: good morning. he also says avoid the tech. maybe it is an easy call to make because it's already in a bear

market. the goldman-s. -- the goldman sachs indexes already: 20% from the peak. manus: against this morning said the aware galactic tech and galactic tech evaluations. you can have accidents and they can be messy. dani: we can see if buy the dip will still work, even though we saw some yesterday, we saw outperformance from the equity market and tech outperforming. s&p 500 up 6/10 of one per front --'s extensive 1%. -- 6/10 of 1%. the rba saying omicron is not derailing what they see as growth in the region, leaving the door open to further rate cuts. and of course, had to end on bitcoin, creeping back after the weekend selloff. manus: an important

psychological level. let's talk about politics, u.s. and european allies set to back sanctions on russia should they invade ukraine. derek, it was described as an underpriced grace warm for markets, how real is the threat of russia to invade ukraine? >> i think it is real enough it is going to be a dominant point of conversation when joe biden and vladimir putin talk today, 10:00 a.m. washington time. the president, the u.s. president is looking to use the call to basically warn moscow against invading ukraine. we reported that the u.s. and european allies are considering sanctions targeting russia's biggest banks and possibly the country's ability to convert rubles for dollars. the ace in the whole of this would be if they wanted to bar russia's access to the swiss financial system.

there is concern, that has been floated before, as a serious countermeasure, but that has always not happened because people have worried it would wreak havoc on ordinary people in russia and the russian economy. what the u.s. wants to do is a signal that russia should not go ahead with any potential invasion of ukraine. there have been increasing worries about tensions in that part of the world. dani: derek, thank you, that is derek wallbank. now to china, policymakers have moved to ease curbs on real estate and release liquidity. the property market downturn threatens to hamper growth into next year. evergrande is on the brink of default as the race period has technically expired. joining us is rebecca. in what way is the rrr cut, the

housing market support, in what ways is the pboc shifting its stance? rebecca: we have seen the first inclinations to ease things up after what has been a barrage of very sober statements from the pboc and various authorities since covid began. when you think about this in comparison with the global market, china as a whole has taken a much more sober stance. but with the latest comments, for example what wasn't mentioned -- we did not hear this comment about property for being living in and not for speculation, which we have heard time and again -- along with the rrr cuts and the focus on stabilizing the economy, i think a lot of people are expecting a little bit of easing. whether that fundamentally shifts the needle when it comes to looking at gdp, i think that is unlikely. morgan stanley still holding on what is already a kind of

generous 5.5% forecast for gdp. that is significantly under the 6.7% we saw leading up to the coronavirus pandemic, which has weighed on economies globally. manus: what is the latest on evergrande? the our past, -- hour pass, when the interest payment was to be made, no new headline yet. significance? rebecca: it looks like evergrande is inching toward the first official default on the public bond. as of this morning, holders had yet to receive payment and we have not heard anything from evergrande. it would point us back to the friday statements from evergrande saying it anticipates expecting missing payments and unable to make its obligations.

we have had this exclusive on what evergrande is proposing to do when it comes to restructuring. thinking about a holistic restructure of all of the offshore bonds from its various units and private placements as well. it is significant. of course, we are waiting to hear the final confirmation of what happens with these coupon payments, but regardless, we are certainly moving into a very different phase of restructuring of evergrande's debt prices here. manus: ok, rebecca, let's see what the news flow is. let's stick with the asian theme and check markets we have mark cudmore in singapore. full of skepticism and doubt, you he then. [laughter] -- you heathen. [laughter] let's take a look at the boards. mark: you are right, i am a skeptic.

have a look, it is a risk on sector, particularly driven by hong kong tech. only yesterday, this index fell -- dani: mark, we have to come back to you, we are getting a little bit of oddness with your mic, we will get you back to show your pessimistic view. thank you to mark cudmore there in singapore. let's get over to the first word news with laura wright in london. laura: new york has become the first u.s. city to impose vaccine mandates on private sector workers. the mayor's office says 184,000 clubs will be required to enforce the rules. a business group criticized in consistent rules at federal, state and city levels. in europe, france is to close nightclubs for four weeks and could open vaccination for

children 5-11 early next year. the u.k. says 336 cases of the omicron variant have been detected in regions across the country. bloomberg news will continue to do all it can for family of a reporter in china. 12 month and attention is a long time for anyone and the company remains very worried about her well-being. chinese authorities have said she was detained on suspicion of national security violations. the u.k. says it is moving forward on a trade engagement with individual american states. the u.k. trade secretary on a three-day trip to the u.s. told us the government stands ready to receive talks from washington on a broader federal deal. >> at the moment and i understand why, the biden administration is focused on domestic issues. covid has put pressure on

everybody. but we stand ready to pick up and continue those negotiations with the team. laura: u.s. government officials will boycott the beijing winter olympics in february, opening a new flashpoint between the world's two largest economies. the white house says the decision is over what it calls china's ongoing crimes against humanity and other human rights abuses. athletes are free to compete even as administration officials stay-at-home. 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. manus: thank you very much. let's get back to mark. sound, camera, action. the skeptic is live. [laughter] mark: you cannot keep me quiet this time, manus. i think you sabotaged my audio

because you don't want the pessimism. [laughter] markets are not hearing any pessimism today, is completely risk on. led by hong kong. only yesterday, this index reached the lowest levels since last year and rebounding strongly today. led by alibaba or a particular after a management reshuffle. japanese stocks also doing really well. the rba earlier were a little bit hawkish. only a little bit. they had previously been guiding to not having a rate hike toward 2024, which seemed outrageous. they have given themselves more wiggle room to bring rate hikes forward. we have seen the aussie dollar up .4% as the strongest g10 currencies on the day. overall, risk on across-the-board, equities higher, commodities higher, dollar weaker in bond yields up. dani: at least on my end, no sabotage. mark cudmore in singapore.

manus, u.s. equities have been rebounding on receiving concerns about the omicron variant. we have that story next. this is bloomberg. ♪

dani: welcome back to "bloomberg daybreak: europe," i am dani burger in london alongside manus cranny in dubai. local stocks rise as u.s. equities rebound yesterday. concerns about the omicron variant have started to recede, allowing investors to buy the dip. our guest is karen, thank you for joining us. the likes of j.p. morgan the past few days saying even if the omicron variant has the worst outcome, being vaccine resistant, the dip will not last. what is your take?

>> i think the medium term outlook is still good regardless, and the reason is vaccine platforms have been developed, which means vaccines should be rolled out relatively more quickly this time in the event omicron is vaccine resistant. businesses and governments have learned to navigate lockdowns and restrictions without having such a negative impact on economic activity. medium-term outlook is still positive regardless of the omicron variant. where there is more uncertainty is the near-term, if it is a severe illness, which is also vaccine resistant, that is more likely we see a return to stricter lockdowns, which would be a negative in the near term. particularly we see a bull case shorter-term on the mild illness and transmissible as well, which might be indicative this virus

is reaching an endemic stage that doesn't need directions. -- restrictions. manus: when you see the tablets and the level of vaccination now relative to where we were with the delta, the narrative needs to change. ubs says we need a bear market. what is the risk of a more serious drawdown in equity markets in equity -- in 2022 or is the bull case robustly intact? kiran: we are confident the s&p will move through 5000 in 2022, we believe the bull market remains intact. when it comes to watching out for the key risks, we talked about omicron and on top of that we have to layer on central banks and the fed and the risk they tighten too quickly so we will get the cpi on friday and

the meeting next week will be key looking at that. and also china, there has been headlines this morning around evergrande. i don't think that is the issue, per se, but if china tightens regulation on property too much and slows the sector down too much, it could have wider ramifications. those are some of the risks we are watching. we still see growth as being very strong as the earnings growth next year particularly strong. we think that should drive equities higher over the course of 2022. dani: let me take you to another risk asset, high yield bonds, or credit more specifically. a very bleak november. we have seen more hedges put on in terms of credit and citi morning that gains are unlikely to last and they are recommending to buy hedges. is this a market you are interested in and are you adding exposure when it comes to credit? kiran: we've been looking at

credit a while and thinking spreads are too tight to compensate for the risk. for the long-term we've been talking with clients about whether they need to seek unconventional yield in other areas, things like senior loans, credit, and volatility to generate income rather than credit, where we see spreads as to try to compensate for the risks. we continue to hold at view that risks are relatively high in high-yield credit at the moment. another point of interest in high-yield to watch out for is often widening credit spreads do signal increases in volatility in the stock market and again proved to be a good indicator this time. it will be important for equity watchers to see what is coming up for equities because in an environment where high-yield spreads are rising, that tends to be where we expect more volatility ahead. manus: i just want to circle back to the china comments. we have had a triple are cut

this morning, liquidity pulsing in. we were looking at the credit impulse for china and that is obviously something that is important. the credit impulse turned negative pretty much since april this year and the economy in terms of cyclicality, how important is the triple are cut today? -- rrr cut today? just your topline view on both string the china equity story 2022. kiran: the return to a more positive credit impulse will be a positive. the rrr cut helpful in that regard. before making a big call on buying china, we do need to see more clarity around the tech regulations, specifically a longer period where new regulations are not getting added. this is the biggest sector, an important sector. if we are in an environment where investors don't know if there are going to be new rules

around the listing or data sharing or other challenges to that sector, we think the equity market is going to remain volatile. it is looking cheap for sure. before we make a big call, we need to see, as well as policy easing measures, we need more clarity on the tech regulation front. manus: thank you for being with us, kiran ganesh from ubs global wealth management. our guest host stays with us, do not hang up the zoom. coming up, saudi aramco sells its stake in a natural gas pipeline business as part of the drive to open more foreign investment. we have the story on bloomberg. ♪

manus: it is "daybreak: europe,"

live from dubai and london. saudi aramco has agreed to sell 49% of its natural gas pipeline business to a group led by blackrock. a saudi backed investment company with $15.5 million. will saudi -- this adds to the narrative of a monster deal. what have they sold? kiran: it is a big -- paul: it is a big deal, one of the biggest in the persian gulf. they have sold leasing rights of the natural gas pipelines to this consortium led by blackrock, controlled -- and the investment firm controlled by the saudi arabian government. blackrock is getting a sizable chunk of infrastructure assets

that makes a lot of money and is stable. the money will come from a tariff aramco pays to use the pipelines. it will still control them and own 51% of them, it is guaranteeing a minimum throughput. it is a stable asset and long-term as well with the 20 years of leasing rights. dani: is this a sign of things to come and are we likely to see more deals similar to this in the future? paul: the saudi's are using this as part of the plan to open the economy more and attract more foreign investment. they are certainly looking at energy assets as an of the best things to go to to raise money. as manus mentioned, they did do something very similar earlier this year with the oil pipelines and now they have done this with gas pipelines.

these types of deals will probably continue but we think on a smaller scale. one thing saudi arabia does not want to do and one thing aramco does not want to do is lose direct control of these assets. the oil pipeline earlier this year and this latest asked one, aramco has retained equity control, it does not want to lose that. it cannot sell down much more of them. manus: that is the same as the adnoc deal, which is about the guaranteed revenue flow but not giving up ownership and control but monetizing those assets. paul, thank you. paul wallace on the aramco story and the pipelines. let's get back to our guest, kiran ganesh from ubs. we'll wobbled last week in the face of omicron and seems to have gotten over that. we saw a huge boon to the etf's

in the oil market last week. how bullish are you in the team on oil and how much reprieve will beget? kiran: -- will we get? kiran: we are expecting brent crude to hit $85 by march because we think the way the omicron variant plays out, it could be a positive situation for oil. the uncertainty around the variant means producers will be a bit more cautious about raising production in the face of uncertainty, but at the same time, we expect to see demand covering and remaining strong over the balance of the year and into next year if omicron does not lead to new travel restrictions and a return to major lockdowns, which is not our base case. we expect $85 per barrel by margin and we expect the energy stocks are an interesting area to look at as well and they still have not priced in a sustained, high level of oil prices, it is what we think we will get. both oil and energy stocks are

areas where we are preferred. dani: are you still assuming in your calculation some energy switching as we continue to see cold weather in europe and the energy crisis continuing on? kiran: that is an important factor in the near term. shorter term, two things that are hard to predict are whether in geopolitics, both laying a role in the near term. if you do see continued cold weather in europe or geopolitical uncertainties around russia, you will start to see some of the higher prices in gas that will transmit into oil as well. dani: fantastic the catch up with you this morning, i appreciate you joining us. kiran ganesh of ubs global wealth management. coming up, we will talk about china again with the pboc shifting toward easing. china's property downturn hit growth, and evergrande at the brink of default, but still

stocks moving higher today. we will talk about all of that next. this is bloomberg. ♪ mom, hurry! our show's gonna start soon! i promised i wouldn't miss the show and mommy always keeps her promises. oh, no! seriously? hmm! it's not the same if she's not here. oh. -what the. oh my goodness! i don't suppose you can sing, can you? ♪ the snow's comin' down ♪ -mommy? ♪ i'm watching it fall ♪ watch the full story at www.xfinity.com/sing2

dani: good morning from bloomberg's european headquarters, it has just gone 6:30 in london, i am dani burger alongside manus cranny in dubai. this is "bloomberg daybreak: europe." russia tensions among a bloomberg's group says the u.s. and allies are considering sanctions on russian banks if moscow invades ukraine. china support, the pboc moving toward easing.

evergrande on the brink of default. plus, omicron fears subside. global stocks rise. treasury yields at higher. manus, some breaking lines to bring to our attention, evergrande bond holders yet to be paid, the 30 day grace period has ended as of midnight new york. there is a bloomberg a scoop reporting that bondholders and evergrande have yet to receive that payment. this comes as china yesterday taking steps to try to ease some of the pains in the property market. manus: yes, and that is a very demonstrative step in terms of the very deliberative taking air out of the property tires so to speak through the year. some context around the evergrande story. it was one hour 30 one minutes ago when we passed night in the u.s. and the payment has not been made. this goes to the 2022/2023 notes

from evergrande. this would be the first if they do not make the payment, this would be the first potential default by evergrande on the overseas bonds. i want to put in context and i know you have the story in front of you, the chinese have defaulted on bonds this year, $10 billion, but evergrande has not taken that step so far. that is the point. dani: absolutely and we are seeing markets affected by this. yesterday we saw evergrande stocks falling to a record low. let's dig deeper into this and bring in our chief asia economics correspondent. we have this crossing, bondholders yet to be paid, what are the implications? enda: it underscores there will be a workout of evergrande. the real estate sector is at the

center of a slowdown in china's economy, a lot of it coming from the big troubled developers like evergrande so authorities are trying to grapple what to do. they don't want them to fall over completely. on the other hand, will there be a full-scale bailout? we are seeing a glimpse with evergrande a move to the middle that will be some kind of a workout. some creditors will be made whole. if you bought your flat from evergrande that has yet to be built, it probably will be billed. -- built. we don't know the formal process, if it has begun or if payments will be made or not. expectations are a managed workout for evergrande, they want to glide to the property developer rather than let it fall over with the wider repercussions for the economy. manus: absolutely, and i like your phrase, a mottled middle.

when you look at the last 24 hours, there is already the potential of a floor being created in the rhetoric around the builders. which is more important for an economist who likes to be fully hedged, the rhetoric shift or the rrr cut? enda: i think the rhetoric shift is the bigger picture. the point is the authorities have been somewhat disciplined until now, the v-shaped rebound after the pandemic allowed them to steer away from massive stimulus, the pboc has been critical of western central banks. now they are saying wait a minute, we have to be careful with the real estate sector crackdown. it looks like support is needed. you see the pboc coming off the sidelines with the move to allow banks to lend more money. more support is expected. they are making clear more support is on the way. dani: go ahead, manus. manus: please jump in. dani: i was just going to say,

how do we square these two stories? if indeed the worst happens with evergrande and we reach a point where we discussed default, does this push more monetary easing from the pboc? enda: they are sticking to their path. the chinese government is talking about housing are for living in, not for speculation. they are deadly serious about tackling debt and leverage and financial risk. what they will do is make sure the whole economy does not tip over in the process of achieving that. we will see them push through pain on these big property developers, allow foreign developers to take some pain perhaps, they will ensure the real economy is captivated to your point about stimulus, there is export data from china, up gangbusters. the story remains one of a slowdown in chinese economy with a focus on it will estate sector, that's where the policy work needs to be done. manus: thank you very much.

enda curran with the latest context on evergrande. let's bring in michael from peking university and senior fellow at carnegie. great to have you with us. a modeled middle is how our chief economist for the region describes the potential outcome for evergrande. if there is a restructuring, how important is that that they find a modeled middle that keeps their global reputation intact? good morning. michael: they are in a tough position because they've got simultaneously to allow significant adjustments in the property sector, but they are unable to take the costs of these adjustments. what we've been doing the last several years sort of floating in this it'll where it is neither one nor the other. dish -- this middle, where it is

neither one nor the other. they will not allow significant defaults among real estate developers but they cannot allow debt to continue to grow. it is unclear what they will continue to do. i expect after a few months of lots of activity and toughness, we go back into the same old game where the real estate sector continues to represent a significant part of group within china's economy. certainly for next year, which is politically important. dani: how do we square this with a pboc that also looks to have shifted to more easing? a similar question i asked to enda curran, to you. does this need to advance that rhetoric again if we are potentially going to see a default from evergrande? michael: i think none of us were particularly surprised by the

reduction in the reserve requirements. growth was slowing very rapidly, particularly in the third quarter, and they did not want it to slow too much in the fourth quarter. more important income of the beginning of next year. we were long expecting easing. the problem is, how useful is the easing likely to be? if you believe chinese businesses are really starved and have huge investment needs but cannot invest because of a lack of liquidity in the system, easing liquidity is good for growth, it will result in growth and productive investment, but that does not really seem to be the case. chinese businesses are not really expanding investment. my concern is that by easing liquidity, what they are really doing is generating growth by promoting what i will call or speculative investment, whether the stock market or real estate.

it is hard to say. it is difficult for them to generate more productive growth. one of the few tools they have is to ease liquidity. manus: one lever would be to relations -- i am looking at the data -- the united states, exports at a record and imports at a new record. henry kissinger a few weeks ago said the relationship with the u.s. was on a cliff. how important is it that there is a significant, demonstrable shift in a better sino u.s. relations to the growth story? michael: clearly that would help a lot because china's dependence on exports and the trade surplus -- excuse me, i have a bit of asthma -- it is rising in their vulnerability is increasing and the pboc has several times

warned about that. many people see the soaring trade surplus as a good thing, but i think that is the mistake and the wrong way to look at it. china's soaring trade surplus is the inevitable consequence of attempts to restrain growth without rebalancing domestic demand in the economy, something they've been talking about since basically 2007. if you look at the last two years, the imbalances have gotten worse. the forces of demand, consumption, the trade surplus and investment. consumption is not growing fast enough. if you try to bring down investment, the only way to prevent growth from slowing dramatic is with the surge in the trade surplus and that is what we have seen. it is a symptom of the difficulty china is having an rebalancing its economy. dani: what is the policy risk if china is indeed trying to head

for an inevitable soft landing? michael: well, i think the hard landing/soft landing debate is not terribly useful in this context. because china is able to control the financial system and the financial system is still largely closed, they are unlikely to have a hard landing or a crisis. i think what is much more likely is once they truly step in and restrain the growth in debt, we will start to see the growth rate drop sharply for many years. in other words, i'm expecting a japanese post-1990 kind of adjustment rather than a crisis or hard landing. manus: michael, we are debating whether russia will invade ukraine. we are debating whether there will be global unrest as a result of mandatory vaccines.

the shift from xi and the pboc, is it to avoid social unrest and major backlash against his new extended tenure in power? is this a leader who is reacting out of deep concern about his position or a position of strength? michael: well, that is a very -- that is very difficult for me to answer because i live in china. what i would argue is the impact of covid-19 to me did not change things dramatically. what they did is accelerated the problems we have had in the u.s. and china and the rest of the world. several years of problems got accelerated into one year. in the case of china, we saw a real difficulty in rebalancing the economy, it was made that much more difficult. what china might have had four

to five years to adjust, it is having to adjust much more quickly. we have seen that, particularly in the real estate sector, this is not the end of the story, nor was it the beginning. we started having debt problems, the latest round, beginning may 2019. evergrande has just been the most visible. but we will keep seeing those problems for the rest of next year. dani: michael, great to have you on with us. that is michael pettis. let's get over to the first word news with laura wright in london. laura: the u.s. and european allies are said to be weighing financial sanctions on russia if president putin ordinance -- orders and invasion of ukraine. bloomberg sources say they could target some of russia's biggest banks and the country's direct investment funds. we are told resident bided may

spell out the potential sections -- president biden may spell out the potential sanctions to putin later today. bloomberg is doing all they can to support the family of a reporter in detention in china. the editor says a long time. the company remains concerned for her well-being. chinese authorities said she wasn't detained on suspicions of national security violations and her rights are fully guaranteed. u.s. officials will boycott the beijing olympics in february, opening a new flashpoint between the world's two largest economies. the white house says the decision is over what it calls china's ongoing crimes against humanity and other human rights abuses. athletes are free to come -- to compete. tesla shares reversed early losses yesterday, shrug ring -- shrugging off a report about

solar panels. it was said that tesla field to notify shareholders about risks. lou citigroup is facing an investigation in the u.s. -- lucid group is facing an investigation in the u.s. regarding churchill capital. there are also probes and other people you -- eeev makers. 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. manus: laura, thank you. laura wright in london. coming up, omicron spreads to russia, prompting fresh restrictions across europe and the u.s. the eu health minister discusses the bloc's response. that is next. this is bloomberg.

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>> for us, the boom will drive our growth in this region. electric cars that we are bringing here will also drive our growth. what we really want to do is not to do electric asia and in any reason -- region for the sake of electrification, we want it to be pulled by the customer, not pushed by us. we announced last night on our 70th anniversary, to give driving excitement to the customer. manus: but you need a cultural and info structure change to deliver that ev, and that is the essence of driving ev strategy. >> yes.

if you want to electrify petrol, which means the driving excitement to drive in the desert should be better than today's engine. the second is infrastructure and the third is about the ecosystem. yes, i think we need all three to go hand-in-hand. manus: you are the chief operating officer and you have a global perspective. phillips ceo said it is a chips and chips problem. where are you in the supply chain crisis, how bad is your supply chain interruption? >> the pandemic has taught us many lessons and i think the supply chain is the one that was most impacted. post-pandemic also, we are continuing with a supply chain crisis. the reasons are many. if i summarize, there are three. number one, during the pandemic, plans were closed. number two, regulations and customer behavior, asking for more and more electronics in their car. number three, the technology --

technology revolution. this will continued we have to adjust our supply chain in line with the new normal. manus: you had to cut your production in october to really weather the supply storm. you going to have to cut back production any further and if so, where and by how much? >> what we are trying to do is we are allocating our production to the profitable markets and the markets were customers are waiting. that's how we are locating our semiconductors. we have cut 22% production in october and we will continue in the following months also. manus: down about 22%? >> i'm not sure 22% but it should be double digits. manus: the other issue in our region is dubai court has told nissan to pay $354 million in a lawsuit.

your response to the lawsuit is you are resolving the matter through the dubai courts. i know you are in the process of appeal. you have settled before. isn't the most expedient thing to settle and hold good the reputation? >> nissan is working in a more than 150 countries. we respect the local rules and local legal system. dubai has been known for at in terms of a fair legal system and friendly arbitration system. we are following the process and let it come. manus: that was the nissan coo speaking with me earlier. coming up, the eu health minister's gathering in brussels to discuss the response to the variant. we have the story. this is bloomberg. ♪

dani: welcome back to "bloomberg daybreak: europe," i am dani burger in london with manus cranny in dubai. eu health minister's gathered in muscles to discuss the bloc response to omicron. this follows a professor known for his lockdowns becoming the new german health minister. let's go to maria tadeo. maria: we finally have a new health minister, there was a joke in political circles this was an impossible job. nobody wanted to be health minister because why would you? you are jumping straight into a crisis. now we have a name and he is very well-known known to the german public. you see him a lot on tv, he has

been debating a lot the past two years on the pandemic. he is well respected, epidemiologist by training. he has been very vocal about this idea that restrictions are needed, a vaccination mandate would be helpful. he is in favor of one, and he is in favor of lockdowns. this is a man you could argue is perfect for this job and the current situation, but considering the agenda that olaf scholz has going forward, he would need to implement mandate. this is tricky to oversee, and it seems like olaf scholz has gone for someone already known to the german public but whose personal views are in line with his own political agenda. manus: maria, briefly, there was a great deal of response from africa and south africa in regards to closures.

will there be discussion about some relief? maria: there is already and there is almost an understanding that a lot of those restrictions, particularly to south africa, may have been unfair. we know the virus was probably already in europe way before south africa reported that case. europeans are aware that given the vaccination lag, but also the country has been -- the virus and it might be unfair and they could ease restrictions. manus: maria, thank you. maria tadeo in brussels as the ministers gather. good to see you as always. let's finish off with a quick beat on risk. let's look the map, on belief, a commodity rally, iron of 9%. five-week high. dani: exactly. some hopes of china property

easing curves allowing the market a reprieve. the yen dipping. dollar-yen not doing so well. that is it for us, bloomberg markets: europe is next. this is bloomberg. ♪

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>> good morning. welcome to bloomberg markets europe. i'm anna edwards, mark cudmore joins us from singapore to take us through the market action. the cash trade is just less than an hour away. russia tensions. the u.s. and its allies are considering sanctions on russian banks if moscow invades ukraine. omicron leads to new curbs around the world. new rkit