♪ ♪ dani: good morning from bloomberg european headquarters. 6:00 here in the city of london. here's what you need to know. the rally takes a pause ahead of u.s. cpi. omicron concerns radel stoxx but treasuries hold steady. the pboc surprises markets with its most substantial move yet. delivering for christmas. we are live from the uk's

largest automated warehouse for the latest on the supply crunch. good morning to you. happy friday. we start the morning with breaking news volvo cars. it's all about a new plant and a battery partnership they are forming with north voltage, $3.3 billion. it's a battery partnership specifically. they will confirm the location in early 2022. again, this is a large-scale battery plant in europe. really ramping up the ev battery making in europe. elsewhere, it is friday. congratulations. you've made it to the end of the week. it ends in a bit of confusion. soul-searching is the word used by cathie wood to describe what has happened recently. small caps selling off yesterday. what do you do if you have a portfolio strategy that relies on the success of highflying tech cap names?

here's what cathie wood's had to say on bloomberg yesterday. >> and a time like this, of course we are going through soul-searching. are we missing something? we doubled down on our research and modeling. what you should also know is, to get to that 40% compound annual rate of return, we assume massive, multiple compression from today's levels. dani: what really encapsulates there, a process that many investors are experiencing themselves. we are just hours away when we get the u.s. cpi that is expected to be the hottest price rises since the 1980's. that's quite the number there. next week, the fed is expected to start that tapering and speed up the process. will dudley things they will start to hand -- hint at some rate rises.

it is soul-searching in this market as we also face the grim reality of rising covid cases, rising hospitalizations in the u.s.. where does that leave us on markets today? it's a somber day still in markets. after yesterday's losses, continued losses and european futures. it's been a lot of fluctuation in u.s. futures as well as declines into the coat -- close yesterday. higher-rated names taking risk off before the cpi data. slight gains, unchanged in s&p 1000 futures. all that in anticipation of the cpi affect heading toward a policy era. brent crude falling by 4/10 of 1%. in terms of other markets, the other big story we have been monitoring is the yuan. it hit its highest level since 2018. of course, this is all in the

face of the pboc trying to stem its further strength. let's dig into the market action so far this morning. let's get over to juliette saly who is back at home. what do you think of the market? juliette: soul-searching coming through from the pboc because they've been trying to make these efforts to weaken the yuan but it remains stubbornly high after pushing past its 2021 hi to the highest in three years. the weakest relative to estimate since bloomberg victim publishing that data in 2018. the pboc told banks to hold more fx in reserve. that move effectively reduces the supply of dollars and other currencies on shore and is putting pressure on the yuan to weaken. we did see the on and offshore still rising against the dollar. more broadly, it's been a session of risk off across asian markets.

after that solid three-day rally, that has paired the weekly gain to a wound 1.3%. the other big story we are watching in asia is the china evergrande group officially defaulting on their dollar debt. evergrande at restricted after the missed coupon payments. dani: thank you so much. in the u.s., cases and hospital admissions are rising as families gather for the holiday season. most victims shun vaccines. the overwhelming majority of infections, hospitalizations, and deaths are among the unvaccinated. let's bring in rachel chang. what does this mean in terms of the outlook for christmas? rachel: the u.s. is experiencing a winter surge just like other countries right now. people are indoors, spreading

much quicker. last winter was definitely the worst time for most countries around the world. at the time, there was no vaccine. that's the main difference. they are talking about the fully vaccinated, it should not be another covid christmas. things should normalize. people are spending time at their families. for the unvaccinated, the same remains. in the u.s., the vaccination rate is quite low. only about 60% have had two shots. that's much lower than major european economies, asian countries as well. perhaps this winter season is the way to get the rate up. dani: thank you so much. many people are hoping that they are able to see family for the holiday season. that's rachel chang. thank you so much. president biden has underscored u.s. support for ukraine and its standoff with russia. let's get over to bruce einhorn to really dig into the details.

we had a summit for democracy taking place in the u.s.. our tensions ramping up and to what degree are they? bruce: we know that president biden and president putin had their talks on the phone for more than two hours on tuesday. president biden followed up on thursday with a call for over an hour with the ukrainian president. in that call, we know from the white house that president biden pledged that the u.s. would not have any talks about ukraine's future without having ukraine represented at the table. no decisions or discussions about ukraine without ukraine. the ukrainian side released a statement saying that the two presidents discussed ways to provide security, political support and what ukraine called combating russian aggression. the other significant call that president biden made, he spoke with nato allies from eastern

europe, the ones that are closest to russia on thursday. he tried to reassure them that the u.s. and other nato allies wouldn't be making any decisions without having them involved. dani: bruce, thank you for keeping us updated there. now let's get to the first word news. juliette saly in sydney. juliette: hey danny. in singapore, two residents may have caught the omicron variant even after receiving their covid-19 booster shots. the positive tests are the first of the variant in the city state. china has reported 37 locally transmitted cases, the country's latest covert outbreak. u.s. commerce secretary says legislative domestic chip manufacturers need to ensure funds don't go towards production in china. she urged congress to pass the bill as soon as possible. >> if it can't be done before

christmas, and has to be done in january. the consequences of not fixing this problem in the long run are quite devastating to our economy and our national security. juliette: elon musk has continued selling tesla shares for a fifth straight week. coming closer to his pledge to offload 10% of his holdings. he sold another 934,000 shares for close to $1 billion to pay for taxes, according to filings cemented on thursday. starbucks employees are one of two new york restaurants who voted 19-8 in favor of unionization. is the first such union foothold among the chains thousands of corporate run stores. the victory underscores the renewed strength of u.s. workers as they capitalize on a tight labor market to push for better pay and working conditions. global news 24 hours a day on

air and at bloomberg quicktake, powered by 2700 journalists and analysts in 120 countries. this is bloomberg. dani: thank you so much. coming up, global supply chains continue to wreak havoc in the lead up to christmas. guy johnson is out and about, keeping track of it today. i hear you are in derby which i have to admit, i've lived in the u.k. for four years and i thought it was called derby. set the scene for us. what's it like at that big factory? alix steel promised there would be robots. guy: there are definitely robots. we have a lot of robots. this facility is the most advanced logistics site in the u.k.. with a strong eye on that u.s. inflation number later on, we've come here to talk about supply chains. here, they are using robots to try to deliver christmas and the most efficient way. this site on round -- runs on

the third of the staff that a normal site would have. it delivers around one million pallets of the goods that you can see going pass me on the monorail behind me. what we are talking about here is not a lot of elves but enough a lot of robots, scanners, sorters, and many of the products that come through here on a daily basis. they don't even touch a human hand. a huge storage site has floor-to-ceiling robots that manage all the pallets. incredible to watch. the idea is to take some of the friction out of the supply chain crisis that we've all been talking about for quite some time. i will be talking later on to gavin williamson, the g xo for the u.k.. this site is really his baby in so many ways. this is the first full christmas that it has gotten in terms of the operation. we will talk to gavin later on, figure out whether this is the

future of the supply chain story. ultimately, whether it will ease that story as we look ahead to that inflation number out of the united states later on. dani: really looking forward to that conversation. such an important topic right now. plus, we will hear from our extrusive conversation with the bank of america ceo brian moynihan. how much has inflation concerned him? this is bloomberg. ♪

♪ dani: welcome back to bloomberg daybreak: europe. yesterday, we spoke to the bank of america ceo and he told us that the u.s. economy is at full employment and supply chain problems are beginning to normalize slowly. >> we have inflation.

that's not the debate. the average inflation for the last several quarters has been higher than target. where do people think it's going to go next? that's what is on people's minds. what you are seeing is wage growth and the expectation of wage growth. that's for the inflation. it's known that we have it. how do you spring it back in? if you think about the economy growing 5.5% this year, 4% next year, 2% and 23, the goal is to glide into that growth rate without causing a recession. that's the hard work of the transition monetary policy has to go on now. >> you have a viewpoint in the economy because you have a lot of small and medium-size businesses. tell us about the effect of the supply chain on those companies and therefore on inflation. >> one of the effects that we didn't like it is, they aren't

using our lines as much because they aren't putting up as much inventory and hiring as many people because the shortage. there are shortages and labor. when you talk to our clients, it's messed up. it's getting better, it is easing forward. it has been a problem for many months now. the beliefs that it is related to the virus is true. there's tremendous amount of japan and the economy right now. we could talk about that separately. businesses are able to increase prices because there's only so much goods sold. more portly, they are starting to see a little bit of help. the reality is, it's a real concern. we need people and goods to manufacture for 2022. those things have to straighten out relatively soon. that's why the administration is bringing other people into help.

it's been going on for 10 months now. >> i want to come back to the consumer question. you say there's a little bit of improvement. how fast is the supply chain problem improving and do you have any sense of when we might be getting back to something approaching normal? >> it's a slower fix. each day, it is better. if you were 10 and he went down to 2, 3 has a 50% increase. people don't care what happened two years ago. do i have stuff today? can i get it tomorrow? that's what is getting better. bigger companies are learning to work around that. they've learned to get control of their import stream. it something that has to be reckoned with. yet, you are seeing it slightly better. dani: joining us now is sony allowed.

good morning to you. inc. you for joining us. let's kick it off with cpi. how do you expect markets to react? sonja: thank you. you've shown the chart right now. we expect another uplift to cpi today. the market reaction function is more important. we've seen positioning really working towards higher cpi numbers. if it's not a major upside for price, we don't expect massive market reactions. i think it's a balancing act going forward, whether there's any more detail and new information in the data we received today that would give us an indication on the transitory versus more permanent nature of the data points. this is all about what was in store for 2022 and when we will see particulars as the site --

supply chain eases off. dani: am i understanding you correctly, that perhaps the market has even gone too far in pricing in inflation? sonja: yeah. the inflation debate is probably the one topic that has captured most attention throughout 2021, and rightly so. if you think about the journey, not just the journey throughout put -- 2020, inflation in the developed world has not really been an issue. you have finally hit this accelerated development, post the pandemic, with twin support from fiscal and monetary policy. we've reached an inflection point in global bond markets. now to prove the normalization, you see massive dislocations when it comes to price development. clearly, the market has picked up and market participants are

very wary. it's an inflection point from a very long-term strength that has been very beneficial for investors. of course, this has been a major positioning to support high inflation. there's a very careful balancing act that we have to consider here to get the end of -- in order to judge what longer-term inflation is going to be like. dani: speaking of longer-term inflation, what do you make of that continued flattening of the yield curve? the two-year obviously reacting to a more hawkish fed. sonja: yeah. for the time being, it is positioning. the market clearly seems to believe that most of the extreme price rises we've seen are clearly temporary and linked to the normalization post-pandemic. the reopening of the economy.

supply chain disruptions have been more persistent than we anticipated at the outset. hence, we will see more structural drivers being higher than in the past. hence, if you look at the fed outlook and potential rate rises next year, it's clearly telling you the story. with me telling it like this, it's clear where we see the biggest risk. we will see the structural nature of inflation being far stickier to focus on labor markets and the conundrum we are currently seeing in terms of the shortage. that will be the driver. that could potentially mean the fed finds itself behind the curve when we are entering 2022 and towards the middle of the year. dani: thank you so much.

stick around with us. that's sonja laud. the yuan turned an initial loss into again. we have that story for you next. this is bloomberg. ♪

♪ dani: welcome back to bloomberg daybreak: europe. it's friday and it's cpi friday. our guest is still with us, sonja laud. we were just talking about this inflection point that markets are witnessing at the moment. you are also underweight investment grade bonds. walk us through your thinking there. sonja: if i start with the obvious, there is spreads on investment grade, so tight that

if you think about the risk reward in investing in an asset class with such tight variation levels, you have to be clear on what you're hoping for in terms of the overall outcome. if you embed this into our overall economic backdrop, there's the expectation for very decent economic growth next year. so far, there's nothing on the horizon other than the latest variant. the economic backdrop is very healthy. your starting point is that, equities are still your preferred risk asset class. you are really looking across the global fixed income world where you have potential for yield pickup, that's the first one. secondly, consider what was just -- just discussed. opportunity sets qualifying evaluation story. higher volatility can create

opportunities across the board. there's a lot of uncertainty around this handoff between end of cycle normalization, dislocation possibility. we are looking at it from a tactical standpoint as well. we are very mindful that we want to catch up to this. dani: in terms of the credit market, we also have to look at china which have's -- has some of its own idiosyncratic issues. evergrande officially defaulting yesterday. to what degree are these gyrations fully priced in? sonja: i think it will create opportunities. there will be more volatility. it's very interesting. we've expected the chinese economy to come in weaker in terms of growth. as such, the market adjusting to this new narrative. we are now seeing this really playing out more broadly and consensus moving in this direction. for china, we should not forget that the newer covid policy will

clearly have a negative impact on growth, should china potentially be affected by omicron as well. it's a balancing act again, to understand what the more longer-term trends might look like. clearly, we've seen such a massive selloff earlier in the year. we are looking for opportunities across the board, not just china but asia in general. dani: really great to have you on the program today. we appreciate your time. that's sonja laud. we continue to see asian stocks selloff. the csi 300 down about 7/10 of 1%, matching u.s. futures and european futures as well. again, as she was discussing, the potential of a different environment. we have hot cpi expected later today. it is supposed to be the hottest since the 1980's. coming up, global ipo's smash their previous records.

we look at what is propelling the boom, next. this is bloomberg. ♪

>> good morning from bloomberg's european headquarters. 6:30 a.m. in the city of london. i am dani burger. this is daybreak europe. the risk rally takes a pause ahead of u.s. i. omicron concerns radel stocks. treasuries holding steady. reining and the yuan, the pboc surprised the markets with its most substantial move yet to cool the currency. delivering for christmas. the largest automated warehouse

for the latest on the supply chain crunch. good morning. happy friday to you. is it time for soul-searching? that is the latest from cathie wood, who talks about her strategy, how it rarely falls in a market that has been rising. it is the inflection point that we find ourselves in with hot inflation expected later today as well as a fed decision next week that is expected to continue to tighten policy. we have this big unknown in markets. this encapsulates the american association of individual investors. they survey all of their various constituents. at this moment, the most amount of those surveyed say they are neutral on this equity market in two years. it shows how trying to divine directionality in a market being impacted by inflation, by covid fears, has gotten difficult and that brings us to today's market. it is a bit more somber. that kicked off yesterday not

only with concerns about inflation but also news that hospitalizations in the u.s. are rising as we face restrictions here in the u.k. and europe. you're looking at a index down .5%, slightly better when it comes to the s&p 500 futures but this has really been fluctuating all morning, not getting any clear directionality, sitting on our hands until that all-important u.s. data. 10 year yields falling yesterday. brent crude down .5%. that's turn to the ipo market where global ipo's have smashed their previous record this year, propelled by a blank check boom. more than $600 billion have been raised in 2021, blowing the previous record reached in 2007. joining us now is the global cohead of equity capital markets at ubs. thank you so much for joining us.

i guess to me, -- to be the debbie downer, the question that naturally comes up, i will post to you, do we see a mean reversion next year? can this continue? >> the market is inherently cyclical so some element of normalization may happen. if you look at the key drivers of this strong year we have had this year, it's really been about strong equity markets, low interest rates, net inflows into equities and a catch-up of the delayed covid pipeline that we saw. en i look to next year, i see an element of normalization but also a lot of those trends in place to provide a supportive equity market and ultimately, public markets remain a compelling opportunity for a lot of our vendors. dani: i was talking to a ceo yesterday who went public on the u.s. exchange yesterday and i had asked him, what is it like going public in this environment?

were you concerned given the volatility? he said, yes, we considered shelving our plans until later. is that something you are hearing as well? how is the reason volatility impacting the ipo market? gareth: there is a strategic and tactical part of any ipo. the actual execution is a tactical exercise when you want to get your market timing right and you want a smooth transition into the public market and then the really fundamental question is more strategic about your long-term ambitions and why as a result you want a liquid equity that's listed. dani: but have you heard that at all? have you had to confront >> and say is now the right time for me to be taking my company public? gareth: absolutely. it's a debate on a one-on-one basis we have with putting much every one of our issuing >>. dani: how important is an accommodative central-bank providing that liquidity into the markets for ipo's to go

smoothly, be successful, and appetite in general? gareth: it has been the core pillar of this equity bull market we have been in and as we look to 2022, there is no doubt that the transition of interest rates or the normalization of interest rates is going to be the critical factor in driving issuance volumes into next year and i think as you have seen periods this year where there's been more uncertainty to the rate of tightening by central banks, we have seen that volatility impact the ipo window so that gives us a good temperature check. as volatility picks up next year, as we look at the interest rate, that will be the key drivers so if we have a less certain task to where interest rates are going, i have no doubt that will impact the ipo market. dani: interesting. could we see a divergence? i understand this is a global market so volatility in one

effects volatility in another. if we still have an accommodative ecb, we have china giving accommodation into the market and a boe that at least for now is on hold, could there be a divergence between the u.s. and the rest of the world? gareth: what we saw during this period is coming out of covid, the u.s. absolutely lead the ipo market, and then we saw a pretty quick catch-up in asia and it's only been in 2021 that we have seen europe really come to the fore. to put some numbers on that, we have seen over $80 billion of issuance here in europe this year. that is gone -- that has gone up three times to four times versus 2020. i would argue we have already seen an element of catch-up in asia relative to the u.s. but it's ultimately just the scale of the u.s. market that's very difficult to argue with. we could be ongoing leveling up for sure. dani: speaking of europe, i know

you were on bloomberg tv earlier in the year and there was questions you got -- is the london ipo market down for post-brexit? we are nearly one year in since the official brexit happening. what have you seen? gareth: to your point, this is a recurring question we have had pretty much every year for a decade plus. my argument is pretty simple. we have seen a very constructive regulatory approach to making london attractive. all of the underlying factors that make london a compelling listing the location for a vendor, whether it be education within the investor base, the volume of capital that is raised and invested on a day-to-day basis in london and all the corporate requirements here that make it an exchange which international investors are very strong on, then my view is it comes down to looking at the individual company, looking at their objectives, and matching them to the correct listing

location. is london a competitive and standalone compelling location to list your stock? in my view, yes. we have seen a lot of very good examples of companies listing here in london and having a very successful afterlife. dani: before i let you go, i do have to ask about last week. we saw them putting in the plans to delist from the u.s., move over to hong kong, and in general, we have seen this incremental ramping up of tensions when it comes to capital markets between the u.s. and china. most geopolitical issues, what impact do they have on the overall environment for ipo's? gareth: politics, economics, stockmarket levels are all critical inputs into the decision-making around running an ipo. the challenge you always have with an ipo is that it's a marathon, not a sprint. you have a long buildup period and therefore, you are always vulnerable to any changes in the

geopolitical or the macro environment and that is something we have always had to live with. the positive is there are global alternatives for finding liquidity and finding a home to list but there is no doubt, along with interest rates, the political environment backdrop will continue to be a key input and will be a driver of where we see volumes in the next 12 to 18 months. but that is not new. that is something we have lived with over the last 10 years, whether it was brexit, whether it was volatility around the uncertainty around elections, so it is part and parcel of our daily life. dani: the uncertainty never stops. great to have you on the program to try to make sense of some of that. gareth mccartney of ubs, thanks for joining us. let's get to the first word news with juliette saly. juliette: covid cases and hospital admissions are rising in the united states amid a season of family gatherings with most victims having shunned inoculations.

the seven day average of admissions for covid have climbed at least 50% from two weeks earlier. millions more americans are now eligible for pfizer booster shots after the u.s. cdc gave the green light to 16-year-olds and 17-year-olds. they are crunchy, nutritious, and set to hit enter place in supermarket aisles. three types of insects, crickets, mealworms, and grasshoppers, have been certified as food fit for human consumption by the european union. the commission says they are weighing applications for nine other types of insects. that is your bloomberg first word news. you will have your insects on the menu over the holidays? dani: i don't mind eating insects. two weeks ago, i was having corn covered in ants in mexico. you should get on board. juliette: i am in the land of

insects. i will give it a go while i am here. dani: be careful for the poisonous ones. thank you so much. juliette saly in sydney. i want to bring out some breaking lines crossing the terminal. a company set to consider delaying ipo. there investor deadline is looming. this is after the u.s. had planned to blacklist the artificial intelligence firm. to start up might have to buy back some of its shares if there is no ipo in april. this is a chinese artificial intelligence firm so this has to do with what gareth and i were just discussing, the geopolitical issues and the impact on ipo's. global supply chain bottlenecks continue to wreak havoc in the lead up to christmas. guy johnson is at the u.k.'s largest automated distributing center. guy: this is cutting edge industrial automation and they are delivering christmas to the u.k. while global supply chains are

slow, nestle's products arrive in this facility. sources are stored and dispatched often without touching human hands. there are not elves but there are a lot of robots, scanners, and sorters. at the heart of the facility is this monorail which runs the entire length of the building. the staff here call it the northern line. christmas is already down there. back here, they are starting to see the arrival of the first easter egg. dani: we will be back with diane darby, next. plenty more from the supply chain story. this is bloomberg. ♪ rg. ♪

dani: welcome back to "bloomberg daybreak: europe." i'm dani burger in london. covid and labor shortages continue to wreak havoc on global supply chains in the lead up to christmas.

here in the u.k., the country's largest automated warehouse is working flat out to tackle peak holiday demand. guy johnson is at the nestle distribution center in derby and he has a guest with him. guy. guy: good morning. thank you very much indeed. welcome to the nestle facility just outside darby, right in the middle of england, and as you say, this is the most automated sight in the entire u.k. it's it is -- it is its first full christmas and operation. the robots are working feverishly to make sure this mess is being delivered on time. they are already starting to bring in some of the easter eggs. gavin williams is the ceo and joins me now. you can northern island. this place is amazing. -- the u.k. and northern

ireland. this place is amazing, absolutely humming. there are robots everywhere, doing things that normal humans would be doing, and they are doing it in some sort of significantly more efficient way. in terms of the change that this kind of facility brings to the logistics industry, talk me through it. gavin: this was a facility born maybe five years ago, digital distribution center of the future. five years later, it is really the here and now so technology for various reasons has become significantly important in supply chains. this is as good as it gets, improved efficiency for nestle by five times to seven times and it works really well in big fulfillment centers. a step below that, we have a whole load of facilities. all of them are looking at the technology here and now. guy: in terms of what is happening in the supply chain, give us a sense of where the bottlenecks are and how this

facility deals with some of those issues. gavin: supply chains are global, firstly. global supply chains have become a little bit choked in various places, be it container movement, labor shortages must others various bottlenecks throughout the supply chain. in the you can ireland, we have seen similar -- in the u.k. and ireland, we have seen similar things. the way in which this facility and the likes of nestle's warehouse of the future, it's automated. they support people, make sure the environments are safer, more efficient, and we offer great service for the consumer. guy: the issue at the moment is labor availability but ultimately, there will be a concern that this will take jobs away from the industry. the industry in the u.k. employs millions of people. is that the case? gavin: i can see how people think this way. this facility has increased its

head count. so the evidence says no, it is definitely not the case paid what we find is that technology improves the consumer experience because it makes it more certain and it improves our employee experience by making it safer and more reliable and in the end, it improves our customer experience, people like nestle, making it more efficient. guy: this is fairly easy to manage. anything on a pallet is fairly easy to deal with. you also have customers like h&m. how easy -- how does it compare dealing with a pallet load of san pellegrino or whatever is going past versus fashion? gavin: we have seen a significant shift. the trend was increasing over recent years. we have seen a significant shift towards e-commerce. what that means is you see behind us full pallet loads going out. i'm not sure it is so easy to handle. it is very automated but i get

your point. in the e-commerce world, we are delivering small cases and small cartons for individual consumption so that is more complex because we are delivering for your personal needs. we are seeing trends where consumers are not just ordering multiple items in cartons but also looking at personalized station, -- personalization. that is becoming more more complex which is why customers are turning to contract logistics. guy: there is a robot over there over your shoulder, which is learning. it has ai technology. it is figuring stuff out on a daily basis. just give me a sense of the trajectory we are on in terms of industrial automation and the changes you are seeing your and your? gavin: we think our -- year on year? gavin: we use about 30. that is only going one way so i cannot remember a time where we presented to our customers in the last couple of years without a technology solution in the

center of our solution for the customer so it is only going in one direction. some of the technology you see here is supply pie our partners, state-of-the-art technology -- supplied by our partners, state-of-the-art technology. it's not just warehouse operatives but digital warehouse operatives, starting to bring people in who are more familiar with technology and train them to use ai to improve the consumer experience. guy: later on today, we will have a u.s. inflation number. it will be a hot number. in supply chains will be part of the inflationary surge we are seeing at the moment. you deal with this stuff day in, day out. is it getting better? is it getting worse? are we through the worst of it? can you see 2022 better from a supply chain point of view? gavin: we are good at fixing it. two years ago was brexit. last year and this year, pandemic, as you know. and now, wage inflation or wage availability. it is a problem we are used to

fixing. we are deploying technology. take the tip of the iceberg off. we are big people employers so people will still be at the heart of what we do, using technology. next year is a more stable year, but still challenging. guy: gavin williams, thank you very much indeed. thank you for inviting us to come to the site and hosting us. gavin williams. back to you. dani: fascinating opportunity. we see robots bustling around in the background. guy johnson at the gx nestle distribution center in darby. delivering christmas. definitely listen into those. coming up, a major deal in spanish soccer is at the risk of unraveling. the country's biggest clubs look to replace a deal with their own plan. that story, next. this is bloomberg.

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dani: welcome back to "bloomberg daybreak: europe." let's turn to the world of football. the spanish game is at risk of unraveling. some of the biggest clubs in the country are looking to replace a 2 billion euro agreement with cbc capital, the private equity giant, with their own plan. joining us for the details and what it means for the future is bloomberg's reporter. set the scene. what is at stake here? >> it's a big day for spanish football but also european football. if this goes through, it is the first investment by private equity firm in a european league. cbc plan to invest 2 billion -- cvc plans to invest 2 billion

euros. as well as the broadcasting rights of football clubs for about 50 years is put to the vote today. with this money, clubs will be able to invest in infrastructure, international development, and it needs support of 32 out of 42 clubs to go through, to have a strong majority. three clubs already have rejected it, saying it is illegal. they came up with an alternative plan only last week for about the same amount, 2 billion euros, but instead of 50 years, it would be a private placement for 25 years, no collateral. but priority payments instead of the broadcasting revenues. they argue that will be a better deal and cheaper for football clubs. dani: why is cvc interested in

this? why is it important on their part? irene: it is super important because it is the third time they tried to invest in a european league in the past year or so. they tried -- the deal looks like it was going to go through, but eventually, clubs -- there were seven clubs that voted against it so it did not have the majority. it also tried germany, did not go through, so spain is the third attempt by cvc to invest in a european football league. dani: really fantastic reporting and fascinating story. i have to have you back onto see how this plays out. it's bloomberg's irene garcia perez. we are looking at european equities that continue to selloff. the free market is looking better for the u.s., but still there is this aura of sitting, waiting on your hands for the hot cpi that we are expecting out of the u.s. later today. that is it for us at "bloomberg daybreak: europe."

enjoy the rest of your weekend. bloomberg markets europe is up next. this is bloomberg. ♪

anna: good morning. welcome to "bloomberg markets: european." i am and word -- anna edwards. mark cudmore joins me in singapore to take a look at the market action this hour. the cash trade is just less than one hour away. inflation day in america. consumer prices are forecast to hit levels not seen since 1982. raining and the yuan, the pboc surprises markets with its most substantial moves yet to call the currency.