it's an amazing thing when you show generosity of spirit to someone. and you want people to be saved and to have a better life, then you don't stop. the idea that we have saved five million people's lives, it's overwhelming. it's everything. >> good morning. this is "bloomberg daybreak: europe." i am dani burger. corporate borrowers flood the

market with more than $36 billion of debt ahead of this month's fed decision. voyles rally. brent trades near $90 a barrel after saudi arabia had russia ended their cuts, adding pressure to keep rates high. plus, the yen sets afresh 10 month low against the dollar. officials want they will not rule out any cash roll out any options if the decline continues. a tough morning if you are an official in asia or just trying to get out there on the road. castling prices hitting a decade high. >> if you're looking at what we started the week off with, a bit of a losing streak. a lot to pay attention to. let's start by taking a look at futures. tuesday was a bit of a losing streak to start this short week. down about .1%.

we song to say is that small caps and homebuilders really drew on a lot of declines. united had a grounding that sent airline stocks a little bit down they did edge backup today. now, we're waiting to patent to do some economic data. >> this is what irks me about the selloff. >> what should we do? >> i don't know. [laughter] when it comes to the treasury market, it was a 1-2 punch. higher oil prices, fear of inflation plus a dailies of corporate interests. treasure points up about 6.5 points. >> let's get over to singapore

for what -- for more on what is happening in asia markets. thank you for joining us. see the look at the equity picture. give us a sense of what you are looking at. >> it looks very negative except if you look at the -- japan. dressed in the region are experiencing a negative downward trajectory. a lot of this is going from the tracking of the losses on wall street, no thanks the higher oil prices. we also have investors in the region grappling with the strength of the u.s. dollar and pylon concerns about chinese economic uncertainty. you have a negative picture in the region. if we can just take a look at how they fare after the lunch break, they are in negative territory.

yet another day of losses. it is interesting how we are seeing these chinese property develop as listed in hong kong. some of them surging by double digits. there is speculation we get more chinese are pretty similar -- more chinese stimulus. we're seeing the weakness in the chinese yen despite some pushback earlier. strongest estimates on record. pushback from japanese authorities. hovering around 10 month lows. that is pumping some the mornings we could see. the top currency official mentioning they are raging take action if needed. >> thank you for that.

let's get to that story has more. time for the morning roundtable. we are joined this morning by valerie tytel, david and paul. valerie, you. we have a flood of companies to the market. how big was it? >> it was massive. the biggest day for corporate and sales. the biggest day of supply over three years. three 6 billion iag bonds yesterday. we see these moves last year and the bit earlier this year we had yield going higher, hurting stop the dollar. back then it was hot economic data, now it is also a huge. it is really pressuring the

yield hiring causing macro movement. i think the leader of all these moves yesterday was really the flood of bond supply. the rest of the week will be busy as well. it is less clear getting in -- getting an extra treasury a uction. >> are you looking that is a factor? >> qt is hitting the $1 trillion mark. the fed's balance sheet has been reduced by $1 trillion and is still continuing at this pace. this adds to the narrative of the bonds by coming from every naked -- every angle. from the treasury auctions, increasing in size. we heard from the ftse yesterday. they're planning on optioning

$31 billion of failed signature bank loans. that is another that supply hitting the markets. >> do we still care about fed speak? it is about to be the blackout period. did we learn anything? >> you really did stick his neck out there, giving us a single best signal -- signal on how use voting. he does not see any need to do anything eminent anytime soon at its peak. that means he is going for a pause time. we heard from another hawk. she was warning that rates may have to go higher. she did not speak on any imminent move from the fed. she did not say how she would be voting. a warning that rates could have

to go higher. that is something we will hear from fed officials until the end of the cycle. they may have to raise rates again. >> thank you for your time. let's move to japan. dollar strike is putting pressure on asian currencies. japan's government is issuing a new warning on the yen. let's bring in david finnerty. while level could we see the potential intervention here? is this really a concern we need to be thinking about or is this all talk at this time? >> intervention can happen. the markets are a surprise. if anything, i think the markets would be surprised how little mentioned there has been prior to today.

japan's top official came after the move yesterday about seeing some speculative moves. it was already nearly 1:48 at the time. the markets want to see where the line was. the markets are reporting higher, if they keep pushing higher. yields are pushing lower. if it moves on the icm data, they will continue their outward grind. this is not speculative, this is based on economic fundamentals. they will happily test the boj.

they will be looking for if there is a three weight meeting or the boj could get a rate set -- rate check. until we see action, we are not going to buy. >> that same dynamic of rate different trails -- differentials, it is different than japan. china wants help for their economic growth. why not let the one -- -- let the yuan weaken? >> then it is like, how quickly

made tumble from there? 50's, 60's for later this year. gradual decline is one thing. you do not want have -- you do not want to have excessively decline. as with their try to stop at the moment. there's a lot of upcoming data from china coming. next week you will have retail sales, fixed assets. if that data used to come out week, growth concerns will continue, it will keep putting pressure on the yuan, compared to a market expects. more likely to keep playing those points suffer market from doing too much in trying to short the yuan.

thank you. opec-plus announcing they will be -- cuts. that will send things to $90 a barrel. what do these supply cuts mean for oil prices? >> yesterday's move was very bullish. although it was expected, the market did not think the saudi's would announce a cut all the way through to the end of the year. they were expecting to keep checking month-to-month. in some ways it was symbolic but he very much shows -- he very much shows what they are thinking and that moscow is also carrying out some cuts.

i'm not sure if this is just oil, if it just goes higher from here. we are had $90 a barrel for the first time since november. i think we still have quite a bit to go before we reach that stage. it is certainly closer now. another thing it does is it puts oil back on the agenda. it has not been on the political agenda this year. we have seen u.s.-saudi ties improve. but will we get towards $90 a barrel and stock prices are going up, i think this will be at the top of the political agenda. >> what is the expectation on

that? as you mentioned, this is a political issue. could we potentially hear from the biden administration responding? is there anything the pastor could tell us how they will respond this now? >> we heard from a national security advisor yesterday. he did not criticize saudi arabia, he just sent the white house is doing all it can to keep pump races down. he made it clear that this is something still very important to them. i think the u.s. has moved on strategy when it does these cuts. it did that last her because a lot of tensions between the white house and the kingdom and did not achieve much.

most people seem to think it actually backfired and further alienated saudi arabia. i think a lot of the pressure will be in the background. we have lots going on. the u.s. is trying to push saudi to recognize israel. although oil production is not directly linked to the qualities are all part of the talks. it is complicated for the u.s.. i don't think will seen a loud denunciation of what they have done. >> thank you for staying on top of that. let's take a look at some of the next events we have today. andrew bailey and his colleagues are set to testify in parliament about their latest decision. we will also have the forecast. >> 3:00 p.m., u.s.-july factory

orders. 7:00 p.m., the beige book. we will see how these movies affected the outlook. can get all the stories you need to know. >> coming up, gas prices hit a fresh low. this is bloomberg. ♪ when it comes to getting your flu shot, cvs is pretty... flex. wanna schedule one online while prepping dinner? gravy. avoid the wait by scheduling for you... ...or the whole crew. or if you prefer to just pop in? do you. and if you wanna even tack on a covid-19 vaccine to your flu shot, feel free! and speaking of free? our flu shots are... well... free.

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>> welcome back to "bloomberg daybreak: europe." official say tokyo is prepared to take action is needed as the yuan weekends to attend --

weekends\\\\ -- weakens to a 10 month low. doctors about what it is doing, based on your opinion. >> is very dangerous territory. the inflationary impact is very severe, for japan especially. everyone knows a combination of high oral prices -- is the worst thing japan can have. that is why the minister of finance is pushing back. this morning, they came in to speak earlier than usual -- even for tokyo markets. it is across the board. some force adjusting that the bank of japan is much more interested in yuan weakness.

we do have a bank of england meeting coming up. we may also get a change in policy to make sure everyone is in the same place. for right now, the differentials between japan and the u.s. are big. >> what would that change in voc policy be? the consensus is that they are not for make any changes. in what form would that actually be? >> all they would need is just ago from negative -- 10 basis

points -- if i take it effectively neutral -- it would be such a big surprise that it would probably strengthen a lot, just based on that. >> but oil. you mentioned the potential surprise from the boj. i really came from russia and the saudi arabia. we knew this was going come but we did not note the duration. he talk to us about the assessment from the markets are now about this move? >> this was something that was on the agenda. i think gas prices had taken a lot of people by surprise. if you look back to the

beginning when oil prices were above $90-$100, it was very painful period asia is a big importer of oil. oil does sustain above that 90-100 range. they would need to adjust lower. that is an extra price impact. some of the asian central banks have stopped taking. >> it would be 2023 to have the worldview -- the world leave inflation is probably come down in that showing to have oil come in and lead. thank you for joining us. coming up, we will hear from the jimbo cofounder and long-term

investment strategist. it will be on his outlook for the american economy. that is next. this is bloomberg. ♪

>> the decent -- the deflationary forces -- probably too big. the power of interest rates rising and depressing the interest rate market, very negative, slow-moving influence. i was a select that they would once again dominate and we would have a recession perhaps running deep into next year. >> the recession you're

predicting is probably not for to happen in 2023 -- >> it may start in 2023. >> researchers believe we have cleared the inflation hurdle. you do not agree on th -- on that? >> they have never called a recession. they prided themselves in stimulating the bubbles. they took credit for the beneficial effect. they have never claimed credit for the deflationary effect of asset prices breaking -- and they always do. >> he said not too long ago you are not a fan of jay powell on the way he is handling nation. is that correct? >> yes. >> you think is done a better job recently in getting inflation back in control?

>> i think it is largely out of his hands. i think inflation will never be as low. we have entered a period of moderately high inflation and moderately high straight. low rates push up asset prices. high rates push asset prices down. >> gmo cofounder there. perhaps we got a taste of the reflection yesterday. you mentioned that caps selloff around 2%. we also have homebuilders. their worst day since october, falling by more than 5.5%.

>> we did hear from the chief investment strategist thing that despite this -- u.s. stock market performance has been impressive. this is a result of the better than anticipated stocks. more on his comments there. coming up, japan and china both back against the surging dollar. discuss the effects trends. that is next. to finally lose 80 pounds and keep it off with golo is amazing. i've been maintaining. the weight is gone and it's never coming back. with golo, i've not only kept off the weight but i'm happier, i'm healthier, and i have a new lease on life. golo is the only thing that will let you lose weight and keep it off. who loses 138 pounds in nine months? i did! golo's a lifestyle change and you make the change and it stays off. (soft music)

>> good morning. this is "bloomberg daybreak: europe." these are the stories. the busiest day in more than three years. u.s. corporate borrowers of the

market with more than 36 billion dollars in debt ahead of this month's fed incision. -- fed decision. >> oil at $90 a barrel after saudi arabia and asia extending cuts. >> a fresh 10 month low. japan's top official warns he will not allow it any lower. >> it is an exciting morning. it is all about the dollar strength. we also have all the bond fails yesterday. continues to weigh on markets. i will show with the bond market is doing. we have seen treasury yields push higher. it is the highest day on record for a bond corporate issuance. that oil again -- we saw inflation patients drive higher. it feels like all of that is

really getting is worried again. that may be the soft landing, we should not be taking it takes value. >> -- taking it at face value. we saw on tuesday was a bit of a losing streak. really, what led the kleins on tuesday are homebuilders and small-cap. then, we also have some airline stocks after the united incident. potentially, beige book coming out later today. that could change the outlook in the markets. >> let's get a look at april wrong -- averill long -- avril. and will degree half are at the moment. we are looking at china property

board -- china property stocks. it did have a solid rally but i think it might be in doing some of what we saw yesterday. a lot of china practices of -- skepticism from monday. these are some of the stocks from all day. these are basically penny stocks at the moment. they are up about 80% at least in the case of evergrande. >> as the dollar per news its rally, authorities in china and are stepping up measures to prop up their own currencies. again and the horn -- the yen and the yuan. talk to us more about the alarm this is caused in market this morning.

>> the top official came out today and said basically, the markets have speculative moves and he is prepared to do what is needed control them. he saw the dollar yen down. he quickly recovered. the market has heard this before. we are expecting something. the markets might be surprised at how little verbal section there has been today. that helps them push the dollar-yen higher. my see the dollar yen push a little bit lower today. that is because u.s. dollar yields have started to down take a little bit.

if the -- if that start to spur, u.s. yield will push higher. we are quite happy to test and see where that line in the sand is. actions speak louder than words when it comes to traders. they are quite happy to climb hyder -- climb higher and find out exactly where the line in the sand is. >> we were talking about this earlier. another record strong fix. you mentioned that what the previous he does not want is undue weakness. can you tell me -- an absolute amateur when it comes to the area, how they can target bet? --how can they target that

specifically? >> it is hard to differentiate the two. they will say -- we're going to be hard for you to do that. it will affect the cost of the carry. decide a couple weeks ago. actually, it was a positive carry there to the dollar. that is one way they can do it. it is a tactic i would not be surprised if the use. that is of casino working. one of the fundamental reasons for this is that the data outlook from china keeps coming in week. we have fixed retail sales and data next week. traders can say -- china's

economy is just weak and without a big fiscal stimulus package they can say -- we will keep senior lower. that is why it's other people to keep interjecting, try and stop that. that banks you sell the dollar. fixed income can do so much, it -- the downside. i would not be surprised if they could use it again in the future. >> thank you, very much. it's is also translating into higher oil prices. holding out at its highest it -- highest and's november. plans have been announced -- walk me through oil prices. we have seen them struggle thing

above $90. are these enough to do it? >> it seems so. while traders were expecting the volumes, they were not clicking the cuts to be as long as they are, through the end of summer. the market was expecting to go into deficit by about a million barrels a day. this will double that. we will start to see severe deficits that will draw down supplies. that is what is pushing this into the higher level. we were just talking about the strength of the dollar compounding this. u.s. has gasoline prices at the highest level in september in over a decade. in japan, they are soaring to astronomical levels. you will see a lot of governments around the world really have to look at this and figure out how to fight the

energy inflation. >> not too long ago people were saying that it was not an issue in the u.s. did not to refill. does this change the calculus, potentially? >> the u.s. is still trying to fill its spr but it does make it more expensive. if you remember hurricane sandy, they created a smaller gasoline reserve on these most. they are looking to end that have put those barrels back on the market, creating a fortune boost. -- creating a short term boost. >> thank you so much for your time and for the update. let's pivot to new zealand. the prime minister singh his government is focusing on trade

diversification. we got an exclusive interview that sounded in optimistic note on state of england's economy. >> it was buffered at the beginning of the year by cyclone. without the cyclone, we would not have been in recession. most of the harness would agree with that. quite a lot of damage was done. we lost a lot of economic output during that time. we are now seeing our producers back up and running. inflation is trending back down again with a lot of countries around the world. we have seen a spike in inflation in the last for years. we have very low unemployment.

>> are you happy where the new england -- new zealand dollar is at the moment? how was china slowdown affecting you as their biggest trading partner? >> i think we would all up to see interest rates coming down again. at the moment, economic or cast are focused on bringing inflation back down to that 1%-2% range by next year. hopefully we'll see some easing of interest rates. particularly, we have seen the recent economic development in china. there are important to new zealand's economy.

one of the reason why our government is focused on trade and free trade agreement with the u.k.. it is now being enforced and we have recently signed one with the european union. we see there is a lot of opportunity. >> for some of the issues you would like resolved soon as possible? >> getting our government has promised possible. paying attention to cost of living. i'm sure kiwi families are feeling. this cost-of-living issues. making sure they have the targeted measures. >> recipients, premised or have

new zealand speaking with bloomberg. let's take a look at some of the events we will be following today. a lot of data coming stateside. 12:00 p.m. you can come update on u.s. mortgage applications. then, andrew bailey and his colleagues are set to testify element about the latest vision and forecast. 3:00 p.m. u.k. time, we're going to track some factory order data. it also comes alongside a bank of canada rate decision with a backdrop of an underwhelming canadian economy, a rate hike is unlikely. we will get the beige book.

i think maybe taylor swift is more important. she contributed so much should the jobs economy. >> she does. , berg has learned that ubs is weighing their options on part of a deal credit suisse made with apollo management. that story is next. this is bloomberg. ♪

>> welcome back to "bloomberg daybreak: europe." bloomberg has learned that ubs executives are weighing their options on renegotiating parts of the deal.

bloomberg's adam haigh joins us with more. talk to us specifically about what the reps are concerned about with this deal. >> you have to remember when the deal was done. this was what credit suisse was trying to do to reinvigorate their struggling business. this is a securitized business that they sold a lot of parts two. what is happening now with the reintegration is that ubs executives are going through this deal and finding out that there is a lot in here that is not of to their standards in terms of what they would've wanted out of the deal. some of the fees that will have to be paid to apollo. i think what shows you is, even

though we have this big integration in combination -- integration and combination of these two giants, there are parts of the deal that may still play out. at the moment, investors are looking at this. they are looking at parts of the deal. this is one to watch in the coming weeks. >> one of the other stories about ubs is that they are doubling their coverage of single stocks. i like this on. everything we have heard about the integration has been cuts, cutting down on businesses they do not mix cents, lingo of employees. why the expansion in this specific area? >> with this one, you have to think about why investment banks do research. a lot of that is because it

allows them access to client. it gives clients information and brings them into different areas. they are also giving them looks on the fixed income side. previously it would avoid been around 2600. my initial point, this is about wine to bring back a lot of the business that went away prior to the takeover and finding ways to bring that back. >> thank you very much. elsewhere, softbank's arm is planning to raise -- a hotly

anticipated ipo. they are anticipated to generate twice at a mall. on the ipo, why is it so relevant, important? >> is supposed to be the largest ipo of the year. it is critical. managers are working around-the-clock. they are trying too hard -- they are trying hard to make it happen. everyone is watching. as you know, the ipo market is -- [indiscernible] everyone that is out there trying to go for an ipo is really on the way and see to see what happens. they have brought in a lot of corner store investors. thanks.

is there market appetite? that remains to be seen. we are in the final stretch, it is very important and very critical. hopefully better weather to come in the following quarters. >> coming up, we discuss the dollar rally pausing and what could spur the next leg of gains . that is next. this is bloomberg. ♪

>> welcome back to "bloomberg daybreak: europe." valerie tytel is back with us. what is on investors minds this morning? >> we're seeing a little bit of

a bouncer mr. daines move. the dollar is headed lower after climbing really strongly since payroll on friday. family seen some weakness when it comes to the move in the dollar. if you look at the treasury market, we in the green. -- we are in the green. all of that is good to know. it shows the maybe yesterday's move was overdone. it looks like we are on more solid footing moving forward. >> thank you very much. altogether a quick check on some of asia fx. headline coming out of a half an hour ago saying the top of ending negative rates will differ from the y cc debate. it seems like it is opening up the door to something that looks

like a negative ending rates. when it comes to fx, it looks like it is supporting the again by about .4%. cny, we also had another record fix. >> also, big news we're talking about some of our guests. oil in saudi arabia and russia extending their cuts. it was out the cuts that were a surprise, it was the extension of the rise. now that $100 a barrel is back on the agenda. the concern is how this will fuel inflation. that is what we will pay attention to. >> i know everyone is worried about gasoline years mark cudmore has popped up --

gasoline. mark cudmore just popped up on my terminal. he has never been to our household. our full -- chocolate is fundamental. go futures. -- cocoa futures. >> europe -- togo, produced in ghana. any sort of tampering is going to be a concern for chocolate lovers. >> just to be clear, italy me. [laughter] -- it is only need. [laughter] we are also fearful about rice inflation. if we have agriculture inflation, gasoline inflation, is equipped to rear its head for this global economy, were

getting comfortable with the idea inflation was in it dissent. inflation expectations ticking higher. >> the is how people potentially respond to that. up next, markets today. this is bloomberg. ♪ if you're trying to get a view of the whole organizational financial health and you're trying to do that through multiple systems, that makes it very, very cumbersome. ♪ it's not just tech, it's not just people.

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