>> good morning, this is "daydaybreak europe," here's what you need to know. boris johnson holds off ordering stricter curbs before christmas as the omicron variant becomes dominant in the u.s. the economic agenda could be revised.

oil snaps a two-kay drop. lira is rallying after its biggest surge yesterday since the 19 80's as president erdogan unveiled new measures. happy tuesday, happy homestretch to the holidays. it was a bruising session on wall treat and in europe. back-to-back 1% declines in this equity market. we are rallying back today but this question remains does the narratives and strategy that had so much pow for the 2021, can it last as it seems to wobble here on year-end. this was the setup going into this week. we had $30 billion poured into equity focused etf's. you're looking at the nasdaq etf which had the biggest inflow in 15 months. it was a tough week for the nasdaq. it did not help that people

poured money in. yesterday we had another difficult session for those who went in and started to buy tech. in 2021, 68% of the time when the s&p pell 21% it was able to reverse losses the next day and we have not yet seen that. we are looking at a u.s. futures session, european futures session and asian cash equity trading session pushing higher. it is stronger for europe. more value, cyclical stocks benefiting considering they were hurt the worst yesterday. we're looking at european stocks up more than 1.3%. your 10-year yield moving ever so slightly here higher, less than a basis point there. hesitancy from traders to price in the extent of the hawkishness. the fed itself has broadcast. at one point we saw the five-year lead at its lowist

since september. as assets rally, you have two appetites for that rally. bitcoin probably our best indicator for that speculative risk appetite up more than 3.5%. on track for its best day since early november. omicron has become the dominant strain in the u.s., accounting for 73% of all sequenced case, up from around 3% last week. here in the u.k. where the variant is surge, boris johnson held off introducing stricter rules. >> the situation is extremely difficult and the arguments either way are very, very finely balance wesmed agree we should keep the data from now on under constant review, keep following it hour-by-hour.

dani: globally, people are looking at hoping to travel home or travel somewhere for the holidays. is this inevitable path that we seem to be on, that globally stricter measures will be introduced? >> we are already seeing stricter measures across many areas. we're seeing some renewal of travel bans, travel restrictions, mandate, mask mandates, and particularly we're seeing companies telling their workers to stay home. weaver seeing things like they're delaying until the summer because they know there's a surge in the coming days and weeks. it's something that's going to happen. politicians and families are leery, they don't want to lock it all down again. they're trying to appeal to people to do the right thing. as we know at two years in, going into the third year of this pandemic, people want to see their families and they're

trying to balance the risks and benefits amid a dearth of information about just how deadly omicron is going to be. >> dani: a lot of uncertainty. michelle, thank you, that's our medical science reporter michelle cortez. the turkish lira had its biggest jump since the 1980's and president erdogan announced new measures to strengthen the currency. let's go to our middle east correspondent, simone foxman. walk us through the new policies that promped this dramatic move. simone: the key bit that they're focusing is on is pledge to protect retail investors from seeing that foreign exchange risk. essentially the treasury would come in and if these retail

depositors lose more in the foreign exchange trading risk than they do from the amount of interest being paid by the bank, the treasury would make them whole. we're seeing a real impact in the last few moment, seeing the lira strengthen. the turkish bank association said retale clients sold $1 billion in order to buy lira on the back of this news. that's driving some enthusiasm today. however, when you look across the kind of commentary we're seeing from analysts and strategists so far, they're a little dubious that this is something that the turkish government can maintain in the long term. they also point to a lack of liquidity. there aren't that many people at their desks right now. that could be part of why we're seeing such strong moves. we are going, we expect to continue seeing rate cuts by the central bank because that's what erdogan is saying and there's no change in policy there.

but you know, interesting, exciting day. for the lira and we expect to see the volatility continue. dani: as you see, it's jumping some, simone, we'll keep you on hand for the volatility, i'm sure you'll be watching it. senator joe manchin has outlined the changes he's seeking after rejecting president biden's economic agenda. this after news that president biden and manchin spoke on sunday night. bruce, buck us through what we know now, does it seem like an agreement is more in reach? bruce: that seems a bit of a stretch but it seems negotiations are back on. that's what the white house believes. president biden and senator manchin had had a phone call on sunday night. the white house is optimistic

that that does open the door for negotiations to resume. we know that senator manchin presented his proposal for a build back better deal several days before that call last week. and that included things like 10-year extension of -- 10 years for pre-k funding it all the way through for the 10 years as opposed to the current plan which has a much more limited time scale. on the other hand it would not include something that's really crucial for president biden which is the extension of the child tax credit. and so if the two sides do reach an agreement, the question is will the other senators in the democratic caucus go along with it? there are 50 senators and you need every one of them so you can't afford any defections. if you have something like revision of the trump tax cuts,

for instance, which is something we know that senator manchin supports, that could cause problems with senator sinema from arizona who has opposed that in the past. when you only have 50 votes everybody matters. dani: it's amaze, every single senator having veto mower at the moment. bruce, thanks. now to first word news, laura wright in london. laura: the s.e.c. is forcing chinese companies trading in the to us disclose what risk may they pose for investor. they'll need to make more specific and prominent disclosures to comply with securities laws. they should also disclose whether they're sponsors or a majority of executives are based in china or whether a merger target is located there chile's president-elect said his government will maintain fiscal discipline when he take office

in march. he said there will be continuity in chile's current international relations and pandemic policies. he's trying to reassure investors with the main stock gauge falling more than 64% on monday. g-7 nations expressed concern over hong kong's legislative elections. in a joint session the g-7 foreign ministers criticized electoral changes imposed by china's central government last year saying it eroded the city's democratic elements and undermined its autonomy. hong kong reported its lowest ever turnover with 30% of registered voters posting their ball los. global news on bloomberg powered by quick take and more than 170 countries. dani: traders weigh the

fast-moving omicron variant, u.s. stimulus and supply chain snarls to the economic recovery. plus late they are hour, europe braces for energy shoring ans as prices continue to surge. we'll discuss power and oil on energy aspects. this is bloomberg. ♪

dani: welcome back to "bloomberg day break europe." buying the dip as an investment strategy faces a big risk and it includes a growing list of issues to consider including senator manchin's failure to support the bill, the omicron

airant and others. thank you for joining us. i said some of the risks we have. some are short-term, has your view changed this morning versus what it was last week? >> my view hasn't changed this morning. it has changed a little built over this week. we can see that the growth driver for next year is probably more going to be china. they start easing policy and as you have discussed extensively here, there's no new package coming in the u.s. in that sense we have a little bit more stimulus in china and a little by less stimulus in the u.s., i would say we're in an interesting situation because this year, buying the difference has -- buying the dip has always been great, we have just held equities, we have been all year, i don't think next year will be as easy. i don't imagine that big investors will wait.

dani: at the moment your flagship fund has held 100% equity. what does it mean if you can't rely on that, buy everything, hold it and be ok? >> that means i expect within the next two or three month, or potentially one or two week, we'll be selling probably 30% to 70% of those equities for a shorter period of time. a lot of people like to say it's good to be in the market all the time. i think there's a lot of risk coming up now. and the fed in 2020 they were pushing the economy out of a recession. now they are tightening interest only economy. that's more challenging. that means that for large allocation pools you have to be more nimble unless you want to live with the swing up and down which we don't like the risk will be increasing of the monetary policy mistake. that means one has to be willing

to take sig cabot amount of the risk off. we haven't done any of it yet. but i don't see us going through all the way to next summer without reducing risk significantly at some time. dan indiana there's a lot to unpack. if the fed is moving toward a policy mistake, where would you look, what gets hit hardest in that scenario? >> it looks like naz kak is the super candidate every time. especially, we don't hold the technology, we hold typically the 100. and therefore we are not so close to it. it would also mean that the idea we talked about before, buying emerging market, is very risky because of course no one knows where emerging mark will be trading in april. maybe it's time to pick it up at this time but if we see the fed

having clearly laid out that they're going to hike if we see that that leads to uncertainty and maybe a market correction, babe a big fault, it's going to be cyclical things which will fall the most. it will be a high risk strategy to pick up emerging market and we don't have any intention of doing. that dani: if it -- sorry, go ahead. >> yes, please. dani: i do wonder. this idea that the fed might be tightening at a time when the economy is weaker, how short does that mean the fed's hiking cycle might be? at the moment the bond market doesn't believe the fed will be able to chart this hawkish path they laid out? >> that's why it's maybe not a good year, we know the economy is flow sloing. we know the fed is tightening. so we have this fanstic growth spurt this year and resulted in pressure on the economy from the demand side and now from the

production side and the question is, if the companies pick up and keep spending, if the consumer keeps spend, the fed will need to maybe drive three or four times. if there's a glitch in this transition they don't have to. then they have to take it more easy. we know that the economy is slow enough because it was running so fast, we know there's been a lot of inflation. they're tightening into inflationary alignment. that's what the price, it's a bit dangerous. they are laid out and we risk that they do the same as in 2018. dani: lets get into the supply side, one chart stood out to me, rgument about consumer, consumer demand had come from this huge monster pile of savings that they had acquired. i have a chart up here you basically look at a white line there that's starting to decline.

in other words that savings rate among households as of october had reached prepandemic levels as inflation goes higher. if the savings rate has declined, can we still rely on a confident consumer that's going to keep demand buoyed? >> yes. that we can. because the savings rate we see here is not that important. the average american consumer, the one who consume, cares about job security, how is my biggest asset which remains for much of consumers house, and house prices are up 20%. how are my financial assets? it's the savings rate on this chart here is interesting but it's a marginal player in the transition of the u.s. economy. into sustained growth. the consumer, you know if you think about the situation, you have a bit of income and you save maybe $30,000, $40,000, everybody is happy but your house goes up 20% in price

that's a bigger deal, you can get more credit. dani: what tools does the fed have at its disposal if household wealth is muchly tied up in the physical housing mark, how does the fed then view a time when they start giving less accommodation? does that -- does powell need to be more nimble in terms of step in to save the housing market if that's what household wealth is tied up in? >> the first thing, the housing market is way too strong. i think everyone in the world has heard that there's a lack of timber in the united states for construction. it's not a natural talking point for everyone but we all know it now. all because there's too much demand. i think what they're doing, the fed is right. they should just probably in hindsight should probably have

gone in the spring. there's no need to buy so many mortgage bonds, the mortgage market is fine. dani: to your point, i remember the sky-like lumber prices we had early last year. they're climbing again. point very well made. matt, we have more to discuss, matt peterson, c.i.o. and founder at at human edge technology. it's been a struggle to forecast the future since the beginning of the pandemic but the risks are much more defined. we look ahead to 2022 next. this is bloomberg. ♪

dani: welcome back to "bloomberg day break europe," let's

continue the conversation on market risk going into 2022. still with us is matt peterson. we started off our conversation talk about the divergence between the more hawkish fed in china that's starting to ease policy. how do you assess the risk when you have a huge global divergence between the tworl's two largest economies? >> it still the -- it's still the fed that set the global tone but china is no longer holding back the world, the situation has changed a lot. what we need to see before we can make it and absolute positive on chide china, the led leadership needs to signal when they achieve enough of the realignment of their goals. recently we have seen a strong rally in the builders, they

separate the market, those they like and those they don't. if they come back, basically if they don't get too positive on micromanaging the economy, then we're in a good situation and one can start looking back at adding china. if they think that what they did this year was so successful and they need to do more of this interference then one needs to stay away. that's what we're looking for the next few months. to see if -- a little bit about the goals and stop the doubt about how much they want to nationalize and how much they want to change and how much they want to destroy. dani: is it in large part then the signal from from china in 2022? they had the cuts, the loan prime rate cut earlier in the week. are you looking for the pvoc and china in general to go further in terms of providing accommodation? >> i think they will go further

yes. that's the first good step. another thing that would be very good if the authorities in general would give some guidance on what is allowed and what is not allowed of lending. at the moment lending numbers and shadow banking is all over the place. if we could know who will be constrained and who will not be constrained that would be a nice next step wile they might ease more from the top down and also on the regulatory side. what kind of loans is it they like the developers to be supportive of new housing? and which type of other types of lending, remember when financial didn't have the biggest success to say the least. it had a lot to do with tightening down and not letting them lend without skin in the game. what do they actually want to see. dani: before i let you go i have to ask about turkey. the currency going gangbusters yesterday and this morning,

after this huge drop, drama at the central bank, erdogan calling for more interest rate cuts, is this a market you would touch at all? >> no. this is a classical emerging market crisis to me with an overconfident head of the country who is managing it to an injury ageneral da which does not reward us as investors. when i look at this it reminds me of the real, this is typical emerging market situation where for domestic policy reasons it's very unpopular to tie to economic policy and everyone else gets blamed for all kinds of things and i don't -- i mean if you're an emerging market specialist, might have a lot of money to make this morning. or a global investor.

it's not an interest. dani: thanks. not mincing words

dani: good morning from bloomberg's european headquarters. we're just gone 6:30 a.m. here in london. this is bloomberg's "day break europe." boris johnson holds off on further curbs for the omicron cases even as cases increase. signs the economy could be revived for his agenda.

oil naps a two-day drop. lira is rallying after the biggest surge since the 1980's as president erdogan unvaid new measures. we are seeing a rebound in today's future session. we are up by more than 1% in these future marks that follows back-to-back 1% declines in yesterday's equity session in europe and on wall street. we have a big buy the dip phenomenon last week or at least the hope that it would work. we saw the highest number of cash being plowed into the nasdaq 100 triple qetf in its biggest weekly inflow in 15 months that didn't play out so well at the start of the week. our last guest, madz peterson from human edge investment said it's going to be a difficult road ahead. you can't just buy everything and that'll work. he's looking at reducing 30% to 70% of his portfolio because he thinks the fed will be

tightening into a weakening economy that will spell danger for risk assets. here's your risk rater so far this morning. s&p futures up .1%. looking at ever so slight selling in the five-year yields moving higher. less than a basis point though. we have seen this hesitancy to brace in any hawkishness from the feds. we're looking at crudup 1% after a bruising day yesterday. bitcain heading to its best day since early november as risk appetite is once again back on. let's turn to european energy prices which are soaring yet again. freezing weather setting in, boosting demand and to make matters worse, the continent is bracing for shortages after energy outages at e.d.f. and with russia capping gas flows to the region. joining us is the founder and director of research at energy aspects. rita, thanks for joining us. how to you view the mix of risks

between russia's supply and the colder weather the continent is facing? rita: good morning. good to see you. look, we've all kind of always wished for a white christmas but this year around there are challenges around it. we have already seen gas prices and electricity prices in particular go up quite substancablely in the last few months given the tightness in the european gas market. what we've seen over the weekend is russian gas supplies into europe have fallen. this is because we think they are filling the nord stream 2 pipeline which will not start until september next year. but still they need to fill the pipeline, it's a really long one anyway. and now we do have a cold snap in europe. i guess the silver lining to consumers is that it's still warm in asia so we should be able to get a few l.n.g. cargoes but the weather forecasts are for a much colder than usual january in asia.

so again those supplies could tighten up. there is no respite for european consumers any time soon. dani: i will take that sill veer lining this -- silver lining this early in the morning. at what level do we start to see demand destruction? >> if anything we have been calling for the requirement of demand destruction. one thing we are seeing even at these gas prices, beyond seeing enough industrial demand come off and this is one of the reasons why gas prices keep going up. we think even at around, as soon as gas prices cost 80 mega watt hours you should start to see industrial demand. you need to demand steel, reduce gas consumption or switch to an alternative if there's availability.

they did do that initially. but then prices have gone up soaring higher all around the world. so these plans have restarted again. europe needs more demand destruction because it's too high demand between consumers and a lot of people are working from home again and there's office heating and there's a lot of industrial heating. dani: i have to wonder if these prices don't cause demand destruction what does? >> you raise an important point. this has been my kind of test around the whole transition issue. it is a lot easier to reduce supply than reduce demand. in 1980, we used fossil fuels as a whole contributed 84% of total energy demand in the world. in 2020, that percentage was exactly the same at 84%. we haven't been able to reduce fossil fuel demand. fls more gas now andless coal but it's difficult to change consumer behavior, especially when the alternatives are not

necessarily that much cheaper. dani: fair enough. one of the remarkable things about yesterday's rally and javier pointed this out, we saw january 2020, three contracts in germany surges, they dropped about 90euros per mega watt hour. what does that tell us the year-ahead pricing is seeing a steep increase as well? are these structural high pressure issues that will be with us next year as well? >> we've called for summer onwards prices to be rising. the reason we've been calling for that is simply stocks in europe are low. if we had a cold snap, even allows for more l.n.g., we'd be at record low inventory levels in europe. if nord stream 2 doesn't start up until september we won't be able to restock.

so we'll enter winter next year with extremely low stocks. that's why you're seeing the entire gas card move higher. summer of next hao year has to move higher and winter of next year needs to move higher regardless of what the weather forecasts are. dani: we can't have you on without talking about oil as well. we saw the rally oil staged this year start to falter. is the caution we've seen trickle through this market warranted? >> i can understand the reason for caution given the omicron variant, the uncertainties around it, whether governments are going to import more restrictions or do not i really do believe that a lot of year-end trading reasons behind this. some of the big traders have closed out their positions. having had a very good year. some probably got pretty badly bruised with the curve flattening. liquidity is pretty much

nonexistence. this is a mark where even one small position can really move the market a lot. i think that's a big part of it. all of those fears are playing a factor but ultimately fundamental just remains tight. stocks are low. it will be going down in the coming year very sharply. so you know prices should be rising but for the next few weeks i can totally see why prices are going to struggle unless opec comes in. dani: i wonder to what degree the market structure setup itself is bearish. we see some of the term spreads enter contango. >> this has been the biggest move, both brent and others flirting with contango. there's not much difference between 2030 there.

we moved from a dollar back to five cents. that does say something. i do think it's massively positioning led. there are cargoes in the north sea, that weighs on the market. if you look at dubai, much more fundamental market. you can see that demand is still very strongthere so i think it's still a very bearish sign particularly for opec meeting on fourth of january. they don't want it and i think it's a sign that at least in the short-term nand has pulled back. given the uncertainty i'm not blaming refiners for not coming in and buying crude right now. dani: one question we're asking our guest here's as we enter the final weeks of 2021, that is what lies ahead? what's the largest risk to the oil market at this point? >> i think complacency is the biggest risk. everybody says -- 50% of the

world is vaccinated. etch governments have been reluctant to come out with restrictions. there's generally fatigue amongst citizens to abide by it given vaccination rates. we do think dhand will bounce back. it may take a month or a bit but it's going to bounce back. we are entering next year with record low inventory levels. gasoline, diesel at 20-year lows. crude sat multiyear lows. there isn't a lot of buffer. you see libyan outages over the course of the last two days. you are one outage away and things could really go higher on prices. complacency is your beggest risk right now. dan wri: fantastic to catch up with you. have a great holiday season. >> happy holidays.

dani: thanks so much again. let's get to the first look news with laura wright in london. laura: the s.e.c. is forcing chinese companies trading in the u.s. to disclose more about the risk they may pose for investors. new guidance chinese funds with a.d.r.'s will need to make more specific and prominent disclosures in order to comply with u.s. securities law. the s.e.c. also said they should disclose whether their sponsors or the majority of executives are based in china or whether a merger target is located there. the world health organization has recommended canceling events in the holiday period, warning that end of year festivities will provide what it describes as the perfect platform for omicron to spread. the world's economic forum has postponed its meeting. current pandemic conditions make it difficult to deliver a global in p-person meeting. the forum will host in the summer. former president donald trump filed a federal lawsuit against

new york attorney general to halt her civil investigation into financial practices of his real estate company. according to trump's lawsuit the suit is baseless and violates his constitutional rights. this attorney general said the suit is a delaying tactic and her investigation of the trump organization will continue. democratic senator joe manchin outlined changes that might draw his support for president biden's $2 trillion bill. in a radio interview in his home state of west virginia he said he would only support a slimmer bill that revamps the tax code to make it fairer. he also criticized other democrats for trying to badger him into passing the bill. bloomberg, this is bloomberg. dani: laura wright in london. coming up, nike beats re-knew estimates in spite of

significant supply chain disruptions. details next. this is bloomberg. ♪

dani: back back to "bloomberg day break europe," nike reporting earnings after the bell on monday and the world's largest apparel and footwear company beat its forecast despite significant supply chain disruptions. laura, i hope you say it correctly. laura: really impressive earnings for the company.

earnings per share landing at 83 cents. but 31% upside from what the street was expecting. north american and other sales were robust, that was able to offset robust growth from china, latin america and asia pacific. chinese rev news but 20% lower year-on-year. this is because of consumer confidence and aversion to western brands. they raised their gloases growth by 160 points. the biggest reasons for gross margins, they had to shut some of their vietnam factories over the summer because of covid restrictions. they outline that manufacturing in southeast asia was around 80% of prepandemic volumes. they think that will normalize in the sect half of 2022.

all these factors mean they were rallying in after market trading. >> the market seems happy. nay key seems positive. how did analysts react? >> i was speaking with analysts last night and this morning. one from morgan stanley told me nike's ability to outpace forecast and deliver on its guidance against unprecedented volatility lent credibility to its path for june. morgan stanley liked nike's move to a direct co-consumer business. their goal is for online sales to account for 50%. right now they account for 40%. the c.e.o., formerly c.e.o. of ebay, he has experience in this field. some things that might contribute to short-term share price gains for nike is the beijing olympic, the world cup, nike extensively sponsor athlete which is helps them gain market

share and also permeate in new markets. dani: laura, thank you so much. let's stick with earnings in the supply chain theme but from sports apparel to chips. micron reported an upbeat forecast. let's get details with our bloomberg intelligence tech analyst matt. another very strong earnings coming out from micron. strong demands last area and earlier in the year the the question had been how long can this list? what's been the sustaining drivers for demand we're seeing at micron? >> hi. that's still growing, you have the cloud, that's going to continue to stay in demand. they've been expanding into a number of different arias. p.c. market is strong for them though there's been supply issue

there is in the last few months. but phones, phone have a lot more memory in them and the automotive market, electric vehicles, a huge market. that's been helping too. then this kind of casual concept of the internet of thing, automation of factory, even the v.r. headsets and those areas. all those areas. they're saying very robust demands into the mid-term. >> matt, thank you so much. we're having issues with your audio but we appreciate the update. that's bloomberg intelligence's matt bloksson. coming up, hospitality and retail sectors suffer from loss of business but the government has yet to announce new stated a. we look into the cost to the public, voluntarily this time, staying away next. this is bloomberg. ♪

dani: back back to "bloomberg day break europe," it's just gone past 6:51 a.m. in london. we'll get italy's latest producer price figures then at 1:30 p.m. u.k. time it's the u.s. current account balance for the third quarter. also this afternoon we're expecting canada's retail sales numbers for october, the consensus is for an increase of 1%. then the euro area's consumer confidence survey. very important as we've seen rising covid cases and high energy prices weigh heavily on consumers' mood. finally at 27 p.m. u.k. time, argentina's unemployment figures. let's focus here on the u.k.,

hospitality and retail sectors suffering from a steep drop in sales due to the omicron airant. so far they've receive nod state support. let's bring in lindsay burton who has been taking a look at the options. we had prime minister boris johnson holding a three-hour cabinet meeting. it didn't kneel any sport of support. where does that leave the hospitality industry at this point? >> even though he's not got a formal lockdown, people are voluntarily quash teening. it's been described as lock down by self. the minister refused to rule out a christmas lockdown. that's because the government's scientifickic advisers are saying it needs to bring in tough measures as soon as possible to bring down the surge in hospitalizations. but you don't know what businesses will get in terms of support so it looks like many won't make it into the new year. it looks like there'll be more

job losses in the pipeline. the question is how long can the government hold this line that the economy is still open when businesses are in so much pain. >> assuming that businesses want and need support what are they hoping to get from the chancellor? >> he's got lots of options. he could revise measures liking the furlough, especially for the hardest hit sentors. he could extend measures already in place like the moratorium on evictions for businesses that can't pay rent. he could boost government grants for companies struggling with the cancellations. but really the spotlight is on the treasury now. the bank of england has stepped in to help out with inpolice station and the cost of living crisis. the cost of living crisis is proving a thorpe in the gove's side along with a slue of stories about it not following its own rules. dani: liz see, great reporting. let's go ahead and fete a check

on the markets looking at g.m. on the terminal, we are seeing a rebound in risk appetite so far this morning. you're looking at asian stocks outperforming, china c.s.i. up .7%. now you are seeing just ever so slightly weaker dollar. a lot of commodity currencies are outperforming. this is an indicator of risk appetite, demands which seem to be better. you're looking at havens not performing as well. the commodity mostly creating weakness in steel. we're seeing iron ore rally. a lot has to do with china ease, supporting those markets. i want to get us a check on the lira. this has been among the most volatile asset that we've seen. of course yesterday president erdogan stepping in with more measures to support the country's currency so we've got rallies, the most since the 1980's, yesterday. today, continuing to see it rally, it's up more than 11% so

far this morning. excuse me, up nearly 10% so far this morning. at one point it was up 11%. david ingalls points out the rally has been mostly when europe is offline. it happened late in the day yesterday when europe was heading toward the close. it happened overnight in china. once the market does open today in terms of the european mark, can we continue to get that rally in lira or will it start to weaken again as they step back online? in general it's not just the lira it's risk assets in general. european futures are up more than 1.5%. it was the cyclicals that got hit very hard yesterday. falling more than 1%. so where do you want to be buying in this market? we've seen some stocks outperform, it's fear over demand. now that the fiscal picture in the u.s. is under question at a time when we're looking at tightening from the feds.

a lot of risk to digest as we head into the new year. that's it for us at bloomberg day break. bloomberg markets europe is up next, anna edwards will walk you through that. this is bloomberg. ♪ every day in business brings something new.

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♪ anna: good morning. welcome to bloomberg markets europe. the cash trade is less than one hour away. wait and see. boris johnson holds ordering curbs before christmas amid a surge of omicron cases as the variant becomes dominant in the u.s. global stocks advance on vaccine optimism and signs biden's