kriti: good morning and welcome today break -- to daybreak

europe. jay powell reiterates that the fed will not hesitate to hike if needed. stocks in asia and around the world fall. clients of icbc are forced to reroute transactions after a cyberattack hits its american unit. more on that throughout the show. u.k. data due out this morning. britain might already be in a recession. we will get a quick check on the markets here because we are getting earnings coming out very quickly, starting off with allianz. their operating profit is where the attention lies here. the estimate was 30's billion. better than expected. it's all about margins when its biggest holding has a lot of exposure to the bond market. bond market volatility could

feed into the bottom line. the revenue is a combined 36.5 billion euros. the estimate on the revenue getting beat on the front as well. it's the operating profit that we care about. that is be -- that will be something we will revisit in 30 minutes or so. we will speak to the cfo about the results. we are going to ask him about the buybacks, sustainability of these profits as well as duration risk around pimco and what their bottom line actually looks like. we are getting earnings from the luxury owner of cartier as well. if you look at their first-half numbers, they are saying that their operating profit is coming in at 2.7 billion. the estimate was 2.9 billion. the first half sales getting an increase of 12% as well. if you look at their sales numbers, not their operating profit, that's where you see the

miss. 10.2 billion. not a massive mess, a small one. i think it's the operating profit that really matters for them as well. that will be major. we will break down the luxury space later in the show as well. most widely known as the owner of cartier. stick around for that analysis and those numbers. i want to talk about the macro markets. it's really at the core, a question of where yields are going. that's really weighing on futures around the world right now. euro stoxx 50 futures down. ftse 100 futures underperforming. this is normal given the session we saw yesterday. the u.s. session closed 1% lower on those hawkish comments from chair powell. s&p futures higher by 1/10 of 1%. buying the dip is what it looks like. cross asset, is a bond market story. the front yield curve that we want to look at at 501.

across the 5% level that it had spent two weeks or so sustainably below. now 15 basis point move higher in the u.s. session. that's going to have a big move on where the euro and the cable rate will trade as well. a higher yield means a stronger dollar. 106 on euro-dollar, pulling back from the 108 levels we saw on the last -- in the last couple days. virtually unchanged in the morning session. u.k. gdp numbers out in an hour's time. brent crude trading above and 80 handle. it had dropped down to $78 earlier in the session. that's your macro picture. let's see how asian markets are's -- are faring. walk us through the asian trade. avril: yeah. asia stocks coming under significant pressure today. almost a double whammy of hawkish fed commentary from

powell and disappointing earnings. that messy i asia-pacific sank as much as one is 1.1% earlier. it's paring some of those losses and it's heading towards the clients for the week. the hung sang tech index is bearing the brunt of that. chinese stec -- tech stocks are in an unfortunate position of being sensitive to expectations of u.s. interest rates. also the worries of chinese growth. it's not just chinese tech stocks that are dragging the msci asia-pacific today. we are also seeing it coming through from softbank, declining by the most in a year. this is on the back of its surprise loss that it posted yesterday. it's also highlighting these continued concerns of how it's bleeding still, given the valuation declines in its investments. another stock that we've been watching today is smic after its sales miss. that really highlights how u.s.

curbs on chinese tech are impacting some of these chinese chipmaking related stocks. we are also watching icbc come under pressure on the back of that cyberattack as we continue to watch the fallout from that. kriti: we thank you so much for walking us through it. icbc story that is catching our eye. the world's biggest bank by assets. icbc has had its u.s. unit hit by a cyberattack, forcing it to use a messenger carrying a u.s. stick -- u.s. bc stick. edwin chan joining us from hong kong. walk us through the story here. what do we actually know? edwin: there's a lot we don't know. it is shaping up to be one of the most significant cyberattacks or ransomware attacks in recent memory. as you mentioned, there has been severe disruption through

treasury trading with icbc. what usually happens in these cases is, if you are connected to the network and you hear about ransomware, you want to pull your network immediately and sanitize your system. so it seems like that may have been what happened here. the bank is telling its trading parties to reroute transactions. definitely if you've got memory sticks cycling around new york to carry out your transactions, it's a sign that there's a severe disruption. kriti: it feels like a panic with a digital twist to it. we thank you so much for joining us this morning with those details. i want to go back to the macro story here. fed chair jerome powell said that the u.s. central bank will continue to move carefully in its bid to tame inflation. the federal reserve governor did not take the possibility of

future hikes off the table. >> if it becomes appropriate to take the party further, we will not hesitate to do so. we will continue to move carefully however, allowing us to address both the risk of being misled by a few good months of data and the risk of over tightening. kriti: joining us for more on this, paul dobson. i'm quickly searching on my terminal just how big the move was in yesterday's session. if you look at the volatility in the yield market, it was pretty significant. are the markets replacing -- repricing the dovish bets you saw? paul: there are two really interesting things that were moving the bond market yesterday. one of them was the powell testimony. the second was the 30 year bond yacht -- auction. powell was may be expected to carry on giving this kind of recognition to the idea that

financial conditions have been tightening, partly because of the increases in the middle of the year in the bond yield. but he didn't adhere to that line closely and focused on the idea that the fed can still raise rates further if needed. it's that whole thing. that fed doesn't want the market to lose this to weigh pricing. the fed doesn't want the market to start thinking it has peaked for sure and the next move is going to be a cut. at the lat -- end of the last meeting, there was a split. the market reaction was that we were putting -- pricing and certainty of peak rates. he wants to inject that risk back into the market. it shouldn't be a massive surprise that he's talking this way. it did joel to two-year yields. the stuff at the short end of the yield curve, around 10 basis

points. so certainly a knee-jerk. the other thing is that the market is so volatile and going backwards and forwards all the times, making it much harder for people to hold onto a position. kriti: a 12 basis point intraday move. one of my favorite lines from chairman powell circuit 2021 was when the markets were far more sensitive to his comments. bigger move than what we saw in the last one he four hours. he said, we don't cater to the markets, we cater to the economy. now it feels like the question of issuance and stability in the markets is coming at odds with the potential of a softer economy. how much of an issue is issuance over fundamental economics? paul: i don't think it is separated from the fundamental economics. it is supply and demand. the supply is being created by

the u.s. fiscal stimulus that's biz -- being pushed into the market. we need to pay for the energy transition. we need to find the money for it. either way, it's creating this supply that's coming into the market at a time when we are in an inflationary environment. the market doesn't know whether it will take it down, whether they're safe enough pockets. the 30 say it -- 30 year sale yesterday was very big. five basis points, one of the worst sales that we've seen. it's not surprising the yield move at the back end of the curve. so much greater than what we saw for the two-year. it was like a 22 basis point move, something like that. they are not supposed to be that

volatile or move that much. it shows that the market is very worried about the situation now. particularly towards the end of the year until we get some fresh funding coming in as we do at the start of next year. it looks like it will be precarious and those options will be risk events i could shake up the whole market and not just the bond market. paul: after -- kriti: after that gigantic selloff in the back end of the curve, no one wants to take on that duration risk. that's why you saw that five basis point tale in the auction. thank you for walking us through the treasury story this morning. front and center in terms of the world and how not only economic data is filtered in but how the rest of the traits are as well which brings us to the day ahead. things you need to know for the rest of your friday morning. u.k. gdp numbers coming in and 40 minutes time. that third quarter number is going to be incredibly important when we talk about whether or not bloomberg economics is right. they are forecasting not only

that a recession is underway but we are already in one in the u.k.. those numbers coming out at 7:00 u.k. time. the dallas fed chair speaking at the ecb conference on monday. 12:30 p.m. u.k. time. does she reiterate the message in terms of hawkishness or is she leaning dovish? that seems to be the rift forming between fomc members. all eyes on her comments. the ego data that still matters. how confident is the american consumer? we will find out at 3:00. a full round up the stories you need to know to get your day going. all you have to do is type in da why bigo on your bloomberg terminal. all eyes on the u.k. recession data. we will bring it to you live as we break those numbers right here on bloomberg television. stick with us. much more ahead. this is bloomberg. ♪

kriti: the datapoint of the morning is going to be right here in the u.k.. third quarter gdp numbers coming out. is andrew bailey and his colleagues actually right? should be we -- be worried about a more substantial slowdown in the u.k.? some people going as far as to say that it's not just about a recession being on the horizon, we might already be in one. let's get the take out of morgan stanley. the u.k. economist joins me this morning. a pleasure to have you on the program. walk us through your take here. we've been wearing around -- about a recession for a long time. what is your recession call for the u.k.? morgan -- bruna: we are

currently tracking a flat gdp. this morning, i'm expecting gdp to contract on the quarter. i'm expecting flatlining from thereon. the high chances that we end up in a technical recession. as of now, i don't have it in my forecast. kriti: what is the rescuing factor there? you said barely escaping a recession. what part of the economy is holding it up? bruna: there's a few factors worth considering. the first one is that moving forward, the u.k. consumer is going to be in a better position compared to 2022, in the sense that energy is falling. wage growth is a bit stickier. so consumer spending should get a bit of an investment there. on the other hand, we have monetary tightening which will rebound on growth.

so we do see the next few quarters as pretty much a push and pull between those two factors. there's the global outlook to consider as well. in the first half of the year in particular, the u.k. did benefit from an expected global growth. the professional service sector. if global growth folds up, the risks of a recession are going to be somewhat lower. kriti: if you look at the laggards, you mentioned the services sector specifically which is making up a good chunk of any limited growth that you are seeing in the gdp numbers, industrial production continues to be the weight. what do we need to see a turnaround in the british manufacturing sector? bruna: absolutely. u.k. manufacturing looks incredibly weak. the pmi has been sub 50 for months now. we've gotten a few negative gdp numbers on the industrial

production side. export weakness in particular which we are enforcing from the euro area and perhaps from china as well. so the improvement in the global outlook is the first thing that needs to be satisfied in order for manufacturing to improve. the other point worth making is, if you look at the u.k. trade account in the aftermath of brexit, what's noticeable is that it has held up relatively well due to that services trade. the goods trade looks incredibly weak. still about 15% lower than where they were. so there is something to be said about the aftermath of brexit that we now have in trading with our largest trading partner when it comes to manufacturing. the euro area, the european union. kriti: how much of the fiscal debate plays into this? we are talking about the

manufacturing sector. when you look at the political rhetoric that's being thrown around, you are seeing this massive push from richie sunak and his peers, talking about bringing in more technology investment, more international business investment which would help the services part of the economy. at the same time, you are seeing a pullback in some of the issues like green energy for example and how much that ends up helping the u.k. consumer. what is the game changer and what can -- the fiscal government do to make this inflation saga speed up? bruna: i think it's really important to highlight this nexus of monetary and fiscal policy in the u.k. if we were to get another round of fiscal easing, that's focused primarily on demand growth, let's say large-scale tax cuts, we would get better near-term gdp growth for sure. the question is whether the bank

of england would have to respond to that if it turns out to be inflationary. the supply side of the economy has been so constrained. any acceleration of growth was followed by a pickup in inflation as well. look at the first half of the year in particular. we had somewhat better growth in the first quarter. we had a pickup and inflation in spring and the bank of england had to react. i think it's really important that any intervention is more focused on that supply side of the economy so that delivers sustainable growth as opposed to focusing on the demand side of england will have to counter of that. kriti: we didn't even bring about the talk of supply in terms of treasury issuance and guilt issuance. previewing that gdp data for us. thank you so much for joining the program. coming up, we go from economics to geopolitics as israel says it will implement tactical local

pauses for humanitarian aid in gaza. we bring you the latest out of the middle east, next. stick with us, this is bloomberg. ♪

kriti: welcome back to daybreak era. let's get the latest out of the middle east. israel sang able implement tactical local pauses of fighting in gaza for humanitarian aid. >> against the hamas terrorists. in specific locations for a given few hours, we want to facilitate the safe passage of civilians away from the zone of fighting. there won't be a cease-fire without the release of the israeli hostages. that's not going to happen. kriti: let's get more from

stuart livingston. conflicting messages between the white house and israel. we are hearing about for our pauses. we are also hearing of these tactical local pauses that may be here and there. my the dix -- disconnect? stuart: i wouldn't overstate it. the white house is being specific with the timeframe and israel is trying to keep its options open. does some extent, you can understand why. if it pledges for for our pauses, everyone will accusative breaking his word. from the israeli point of view, you can understand why it wouldn't want to give specific timing on those. where you see consensus and where you are seeing action on the ground is that there will be pauses to allow more people out. we did see a flood of those yesterday. something in the order of 50,000 edition people. overall, the position remains the same. we are not near a cease-fire.

i don't think anyone in this conversation is saying we will get close to a cease-fire. there's a very big difference between pausing the action to allow civilians to move out and to allow aid to move in. nowhere near the skill of what's required. for the moment, they are talking about something like the number of trucks coming in from egypt, rising from 100 to 150. that is probably still in the order of a fraction of what we saw before the war kicked off. nowhere near the skill of aid needed in gaza. kriti: it's interesting the distance that the white house is playing from this even though they come under scrutiny for their support of israel in this ground offensive. u.s. forces are coming under attack in the region elsewhere. what more do we know about that? stuart: it is picking up pace for sure. it is something like 40 plus attacks that we've seen on u.s. military installations around

the region. that's primarily in iraq and syria. we have seen an escalation in the last few days. so far, there have been minor entrances -- injuries to u.s. personnel in those facilities and they've returned to active duty. nothing too serious yet. the more that occurs, the higher the chance -- the chances that something will go awry. it's a combination of rockets and armed drones. it's going to require one of those to get through and we end up with a terrible tragedy on the ground in the u.s. is put in a position where it has to react more strongly. we have seen some counter offenses from the u.s.. there was that base attack on wednesday. and we have seen an escalation in the number of personnel in the region as well as hardware moving into the region. as that happens, the risk of escalation and the spreading increases. so we watch carefully. so far, there doesn't seem to be

anything too serious. nonetheless, no loss of life on the american side. that is something we need to keep a careful eye on. kriti: dire situation for everyone involved. stuart livingston wallace, thank you for that update this morning. coming up, we go from geopolitics to the corporate story. after that german insurers profits beats estimates in the third quarter. lots of questions for him. that interview coming up. stick with us, this is bloomberg. ♪ you want to be able to provide your child with the tools or resources they need. with reliable internet at home, through the internet essentials program, the world opened up. fellas, fellas. that's how my son was able to find the hidden genius project. we wanted to give y'all the necessary skills to compete with the future. kevin's now part of this next generation of young people who feel they can thrive. ♪ ♪

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. we have been able to reach over 100 million people impacted and affected, and at risk of hiv. the rocket fund takes all of the work that we're doing, all over the world, and looks at the most effective ways, to get resources to them, to get services to them. the idea that we have saved five million people's lives, it's overwhelming. it's everything. kriti: good morning and welcome to daybreak era. let's go to the top stories that

set your agenda. u.s. two year yields crossing 5% as jay powell reiterates that the fed will not hesitate to height -- hike if needed. in the earnings story, allianz posting a third quarter profit beat as pimco continues to attract new money. we speak to the cfo and a couple of minutes. third quarter gdp data due out this morning. bloomberg economics saying britain may already be in a recession. quick check on the markets here. we are seeing a lot of different crosscurrents. a risk off sentiment, reflective of this -- the wall street session yesterday. the s&p 500 closing at 8/10 of 1% on this hawkish resident, doubling down, backtracking what he said at the press conference for the fed meeting. saying, if we need to hike, we are going to hike and there will be no hesitation for that. now just being digested in asia

and in europe as well which is why euro stoxx 50 futures down seven towns of 1%. that's just a reaction to the selloff you saw in the u.s. session yesterday. that's your equity picture. when you look at what's going on with the two year yield, you saw a 12 basis point intraday move in the front-end of the curve. that's massive, pushing the yields back to where they were before the fomc meeting. chairman powell making a dovish pivot. 501 on the front end. that will have a breakthrough into the dollar as well. the strength you saw in the dollar pushing some weakness in euro and cable rates which had been enjoying outperformance in the past few sessions. cable rate at 122. brent crude at an $80 handle range. higher by five chance of 1%. it keeps moving between 78 to 80. something to keep an eye on as

we talk about the process i picture. it's the focus for every corporate beast out there from the united states to europe. we have our eye on allianz here. they reported a third quarter profit beat, that comes as pimco continue to attract new money. i'm pleased to say the cfo of the leons -- allianz is joining me this morning. we thank you for making the time. before we get into the earnings picture, i want to stick with the macro and get your take on the duration risk that it feels like market participants are hesitant to take. what is the allianz take on what's going on in bonds right now? >> on the macro environment, we see there is this embarrassment on -- inversion of the curve. between the two year and the tenure.

it's pretty much stable. one year or go was more or less the same level. we have to see what happens. ideally, we would like to see the short and coming down as opposed to the long end going up. this will be dependent on what the inflation rate is going to be in the next months or so on november 14. we are going to have the new reading for the inflation in the u.s.. i'm looking personally at inflation in europe, indicating that the index is going to be stable compared to the september level. inflation at 3.5%. we will see what happens. if that's the direction, i expect we are going to see the curve slowly flattening in the short and coming down as opposed to the long end coming up. that will be the best case

scenario. it will be interesting to see with the economic data will be in the next months. kriti: do you think that drop in inflation that you and a lot of your global peers are forecasting will help your operating profits? allianz third quarter reporting at 3.5 billion. the estimate was 3.3 billion. your operating profit higher this quarter than wall street estimates. talk about the inflation readthrough. does that change? kriti: -- giulio: what's the nice thing is that we are capable to perform very nicely and all kinds of environment. that will be the main message. when you look at the year-to-date numbers, we are very positive. very strong performance in 2023. from that point of view, the strength of our business model is that we are capable to perform nicely in different environments.

inflation will be a positive because it will relieve some pressure. it will look at what's happening in rates. with inflation, it will be very positive. as i was saying before, we are capable to deliver strong performance because of the diversification of the business model that we have. also because of the quality that we have in the different operations. that's very important. having quality is extremely important. the strength of our delivery in these last months of 2023. kriti: let's talk about pimco as well. you are talking about how the business is well-positioned in any environment. pimco attracting new client money in the last quarter alone. which i find really interesting. we are talking about less

exposure to the bond market, less exposure to the volatility that we've seen, less exposure to duration risk which pimco is an expert in. is there any concern around pimco's ability to hold onto that client money in this bond environment? kriti: -- giulio: there shouldn't be any concern about the ability to deliver in this kind of environment. i would expect that we will see flows coming pretty strongly in the future. i don't see this risk to be so elevated personally if you ask me. the possibility that rates will go much higher from here might be limited. from that point of view, taking duration risk might be an award at this point in time. anybody might have different opinions. it seems that investors are still competing on the sidelines.

it's just a matter of time that investors are going to look at your a risks as an opportunity and that's going to be very well-positioned because of the ability to read the economic situation, to perform at the benchmark. giulio: -- kriti: are you worried about the expansion of etf's? much more passive flows but also in terms of regulations in the united states, supporting the development of etf's. pimco has been an active asset manager. does that serve as a threat to pimco's bottom line? in terms of the vehicle used to serve the macro. kriti: -- giulio: we are observing the trend of passive in the fixed income space. we cannot ignore that trend. the acting manager is also

pushing activity. we are not necessarily in the passive space. that is something that we need to factor in as we think about our strategy. we are going to be committed to the active space. it's a very large space with a lot of specification inside the space. we are crying -- going to try to play across all the different segments. don't forget also pushing investments. we have a real estate franchise that we put into pimco. the passive area is going to take some share. we think in the active area, we can be a dominant player. this is going to be enough to sustain growth in the future. we see clearly that trend. we have a lot of strengths to play in the space. kriti: certainly something we will be keeping an eye on. i want to talk about the allianz buy story as well. allianz did not announce a

buyback in this quarter's earnings. why is that? are you returning to normalcy of one buyback per year? what is the allianz take on buybacks? giulio: yes. just consider that we launched the buyback in november 22 for one billion. then we announced another buyback in may of 2023. as we speak, it's almost one year. 2.5 billion of buyback. we don't feel like we need to announce the buyback every other quarter. the liquidity will continue with strong capital allocation. keep in mind, from november 2022 to now, we are -- announced 2.5 billion buyback. we did some small acquisitions. we are very cap -- active.

we will continue to be very active moving forward. kriti: talk to us a little bit about the approach in the u.k. for allianz. as an insurer, there have been a lot of changes in policy for the u.k. when it comes to motor insurance. how are you viewing that trend? giulio: first of all in general, is always part of our consideration. we need to be prepared to adjust to regulations. we know it's a market worth -- also from a regulatory point of view. that's exactly the reason why we wanted to have a strong franchise in the u.k. that's the reason why we decided to build up more strength.

the stronger you are, the more you can outperform the market that allows you to make some margins, even in the country. it's more challenging compared to other continental european transitions. we know that the u.k. regulations can be more aggressive. if you look at the results in the third quarter, 96%. in the current environment, we are confident that we can push that down as we go into 2024. kriti: certainly something we will keep an eye on. property-casualty insurance as well. there's an expectation that it will be a big drop in pretax profit. can you explain why?

kriti: we did -- giulio: we don't expect it to fall in the quarter to come. i would say that we are definitely in line with our expectations. we need to see what's going to happen. it's hard to predict at this point in time. from the point of view, there will be a drop in performance in q4, not at all. i would say that we are pushing through. we should be able actually to maintain the underlying performance that we have. no excitation of a drop in underlying performance. volatility up and down. that's not something that we can predict at this point. kriti: the allianz cfo. we thank you so much for joining us this morning and making some

time for daybreak europe. we look forward to having you back on the program. i want to bring you corporate news that we are getting right now. the company behind the major weight loss drug has been said to invest more than 42 billion danish krone, $6 billion of equivalent. it's expanding its existing manufacturing facilities in denmark for its current and future product portfolio within serious chronic diseases. 42 billion danish krone, the equivalent of $6 billion. the investment will create additional capacity tells the entire global value chain. we will keep your prize as we get more information about what that investment looks. an unexpected drop in earnings for each month. we break down the numbers next. this is bloomberg. ♪

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kriti: let's get the latest on the luxury sector. an unexpected drop in earnings as revenue from switch -- swiss losses leads the design. good morning. when we look at some of these earnings, it feels like the jewelry segment was fairly robust. watches, not so much. what is your take on that division? deborah: if we look at their standalone stores which is 50% of sales, they very much pulled in the consumer. when we go to the wholesale side of the business, that's where the problem is.

there's more for the company to do in the long term and turning some of those stores, moving similar stores away from wholesale and retail. kriti: can you tell us about the far-fetched piece of the equation? they purchased a stake in why nap from richemont. what does that mean for the broader industry? deborah: we have unconditional payments announced which is great news. the clear front runner in terms of technology growth new projects. hopefully we see it next year moving into profits for the sector. that drives a digital proportion of the industry to around 25% of the market.

35 to 40% within three to five years. what it means for richemont, we can see the numbers anyway. they discontinued from when it was announced. very much a drag for net profitability. from the other side, it would allow as part of this agreement cartier and others will be on the front-end of the marketplace. that gives them a broader spectrum for new consumers to those brands. kriti: let's broaden this out. there has been concerned that as you start to see inflation dissipate, we are talking about recession in europe and the u.k.. the bit between -- behind luxury is going to come down crashing basically. is that the take?

appetite for luxury anti-inflationary story? deborah: appetite for luxury at the high-end, very much still intact. we could see that from the retail stores. when we go to thinking about the aspirational side, we've headed out of earnings. we've seen some of those aspirational makers struggle a little bit. capri was a big mix. there's a lot more to do there. the inflation impact was certainly eating those companies. very much reticent from the aspirational consumers to buy. when they do, in places like china for example, average basket sizer's are bigger. for the inflation side, we are expecting growth next year.

when we run forward, we look at the industry to go -- grow 67% next year. the companies are expecting double digit growth. around nine to 10%. because of slower growth out of china which is not what they expected from the beginning of the year. now we have to watch out for a little bit more slow down coming from the u.s.. kriti: that seems to be a common theme as the american consumer data coming later today. might to show signs that the resilience maybe isn't all that resilient. we thank you so much for that rap on luxury. i want to get to other corporate stories we have our ion. the embattled swedish landlord is under further pressure after one of its creditors for the

first time demanded his money back. the firm has been assessed -- center of sweden's property crisis as landlords scramble to refinance billions of dollars of bonds amassed when money was quite cheap. one of the bondholders says repayment is needed on the grounds that they breached a key term in their debt. as bp saying that it firmly rejects the claim of a breach. natwest is going to scrap the bulk of a possible 10 million pound plus pay out its former chief executive who had resigned in july. that came after a row over the way the british bank closed accounts held by brexit campaigner 90 -- nigel farah's. he will forfeit millions of pounds in unvested share awards. in the states, a u.s. federal judge has approved a 290 million dollars settlement between j.p. morgan and victims of jeffrey epstein. the u.s. district judge says the pact comers -- would send a

signal to the financial industry. a group of attorneys had objected to a clause in the settlement that threatened to delay the payout. coming up on the program, it's been a week of extrusive conversations from the bloomberg new economy form and singapore. i will bring you some of the highlights, next. this is bloomberg. ♪

>> i think we are in a different world right now. we are seeing people be much more serious about this issue, much more prepared to make the investments we need to make, recognizing that if we don't, it will cost our citizens much more not just in money but in lives lost, regions dislocated, people in migration. the downsides of the star so serious. we have to move faster.

>> the right issues have been put on the table. so yes, in that regard, you never take things for granted. but we should force the issue. kriti: john kerry, the u.s. special presidential envoy for climatic -- climate and mark carney speaking to the new economy bloomberg form. mark carney was recently named chair of bloomberg inc.. i want to get back to the markets here. one of the key data points comes in five minutes time. this is for the third quarter. the breakdown actually looks like we are already in a recession. we have the chief u.k. economist joining the program earlier. she said, we might see a technical recession shortly and that will be significant as we watch the broader gdp story. we will also have a slew of earnings headlines.

we will be speaking for the first time to schneider electric's new ceo. that follows the company's capital market, you don't want to miss that exclusive interview at 7:30 a.m. u.k. time. 2:30 a.m. in new york. a lot to digest. they will talk about margins as is the focus in all of the corporate story from the united states to europe. everything you need to know and more. more markets analysis and geopolitics coming up on markets today. stick with us. this is bloomberg. ♪

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anna: this is bloomberg markets today. mark cudmore joins us from singapore to take us through all the market action this hour. tom: hec