>> this is bloomberg daybreak: europe and these are the stories that set your agenda. asian stocks slide ahead of key u.s. jobs data.

the yuan studies after china's central bank makes a surprise move to stop buying government bonds. 180 thousand people have been forced from their homes in los angeles with firefighters battling to control new blazes. president biden promises the government will cover costs. doldrums has a meeting with vladimir putin is being set up as the president-elect restates his goal to end the war in ukraine. happy friday. we have seen, to cross the global bond markets and the focus will be on the jobs data out of the u.s. later today with an estimate of around 165,000 for december, unemployment at

4.2%. we will see the numbers later today and how volatile and sensitive the markets are to that data point. fed officials reiterating they want to see caution in terms of next steps for the federal reserve getting the inflation story unfolding stateside. the u.s. reopens after a close day yesterday. ftse 100 futures also flat. the focus continues to be on the build out and concerns in the u.k. with stagnant growth and what could happen in terms of rachel reeves and the chancellor next week. s&p futures currently flat and nasdaq 100 futures also flat. there's a holding pattern as we wait for the nonfarm payrolls. let's have a lacrosse asset. you has seen a bit of calming since the beginning of the week when you saw yields continuing to edge higher. the pound remains under

pressure, down .2%, falling yesterday to the lowest level in at least a year and brent currently up .5%, set for three straight weeks of gains. and gold at 2675 per troy ounce, up .3%. the jobs data later today expected to showcase a healthy labor market with nonfarm payrolls probably rising by 165,000 last month, the data likely to support the fed's focus back to inflation with economists seeing a pause for the fed this month. officials pointing to a slower approach to easing this year. >> i still see a downward rate path, looking at everything before me now. i'm not about to walk off or turn around this path but the exact speed i continue to go

along this path will be fully dependent on the incoming data. we can say where we are for a little bit, probably not long but we will see. >> let's bring in our market watcher, valerie tytel for an assessment of what we have been hearing from fed officials and a preview of nonfarm payrolls. let's start to what extent is his view. he still expects to be cutting this year. does that align with what we have been hearing from other officials. >> frankly no. we heard from michelle bowman yesterday and she called the cut the final step in the recalibration phase, leading many of us to believe she is perhaps on the dot plot reflecting no more rate cuts this year and also blamed inflation for the reason we are seeing this rise in treasury market yields and it was those concerns that backed up her

argument why there should be no further cuts for the remainder of the year and importantly she mentioned she backed luther bank capital rules, important because she is touted to replace vice chair michael barr as the vice chair of supervision so she will be very much in charge of taking forward where those rules go and speaking of the regulatory musical chairs in washington, we have heard confirmation that the confirmation for treasury secretary will take place on january 16. it will be interesting to see what he thinks is driving this move higher in yields. friday is nonfarm payroll day and watch out for a blowout normal. interesting piece from anna wong saying high frequency data, especially when it comes to the home-based data showing there's a risk for a higher print. bloomberg economics is nearly 100,000 above consensus. what is more important for these

markets, nonfarm payrolls or the gilt market? >> there's a risk the nonfarm payroll print could be overshadowed if we see another chaotic day. interesting to note that it was a day of calm after opening up on a hairy basis with yields spiking 11 basis points at the open but ended the session nearly unchanged. there is some interesting stuff going on in the fx market. a lot of bank dealing deaths saying there are leverage accounts piling into bearish downside puts when it comes to the cable currency. and if you look at risk reversals within the currency pair they are at the most bearish within two years. >> thank you very much indeed with the set up ahead of nonfarm payrolls later today and the gilt markets continue to be in focus. to china, where the central bank is to suspend buying government bonds as yields fall to all-time lows and traders bet on weak economic growth.

let's bring in mark cranfield. how are investors reacting to this news? they will be suspending the purchase of bonds. >> this is not to impress they have taken the bond market down a few pegs today in china and its dangerous territory. central banks as a matter of course are heavily involved in the bond markets in money markets daily and traders expect that transparency to continue and to be part of the general performance of the market so when the central bank suddenly says we will not be buying anymore bonds for a while it takes everyone by surprise and it certainly is not a good message to foreigners. china has been making a big deal about trying to get foreign investors back, especially in the bond market and equity market. they want to see a market that behaves according to the fundamentals, which say yields should go lower. that's frustrating for the chinese central bank. you cannot have everything.

and when you start meddling like this it's dangerous territory and investors can see this. it will probably only be a temporary measure but it's something they will have to think about carefully because it's not being taken very well in the short term. there will be a briefing next week in the central bank and other regulatory bodies will be speaking on tuesday but this kind of interference in the market, they tend to put off market and that's not what china wants. >> mark cranfield, excellent with the context around this risky move around meddling by the pboc deciding to suspend the purchase of government bonds. the msci china index closing in to a bear market with a drop of about 20% since october. donald trump says a meeting with russian president vladimir putin is being set up. let's bring in our east asia government editor. significant if this is indeed

happening. how do we characterize this? >> it's one of the issues trump has wanted to deal with. we still don't really know a lot about what is going on or if something has been set up at all. trump said if that it -- that if a meeting were to, it would come after the inauguration. there is no set date or time, just this announcement that he is looking to have the meeting. they met previously when trump was previously president and there's been an opec -- opaque nature about some of these meetings. the new york times reported that trump took the notes of the interpreter and did not allow the interpreter to speak when anything can happen in the meeting and there's been this close to nature of the meetings and information has been closely controlled. >> what does it mean and where does it leave ukraine? >> yeah.

ukraine is definitely a key part of this. on the campaign trail trump pledged to end the war in ukraine and 24 hours since becoming president. he has backed off in recent days saying it could take several months but there's a worry from president zelenskyy that trump will seek a deal that cedes a large part of his country to russia. i think currently russia holds nearly 20% of ukrainian territory and while this is going on it's a concern for ukraine. the biden administration is sticking by ukraine. it was part of a meeting in germany of allied ministers to supply military aid to ukraine. there was a mention of $500 million in aid going to ukraine so the biden administration wants to keep the aid going. zelinski is worried about what may come forward and there are

some indications that by trump pushing back the date for some sort of agreement it could give zelenskyy some breathing room as well. >> john herskovitz on these comments from incoming president trump that he and the team there are underway in terms of working towards a meeting and some form with russia's leader. now to los angeles, where a deadly fire has forced almost 180,000 people from their homes as firefighters struggled to bring the blazes under control. president biden saying the u.s. government will cover 100% of the costs of the california wildfires for 180 days, calling the devastation catastrophic. >> so today i'm announcing the federal government will cover 100% of the costs for 180 days. this could be things like hazardous materials, first responder salaries and all

necessary measures to protect life and property. collects for more let's bring in michelle in los angeles who has been living and breathing and reporting on this for us. what is the latest on the ground? >> like you mentioned, the latest is about 180,000 people have been evacuated from their homes and thousands of structures have been destroyed. unfortunately today we also heard of two deaths from the palisades fire and so far at least five people have died since the fire started tuesday. we also heard from the l.a. county sheriff that they have drafted a curfew that they plan on implementing as soon as possible in the areas impacted by the two biggest fires, the palisades and the eaton fire, and we were told this was to just keep residents in the area safe. there is some good news.

i think the sunset fire that threaten hollywood yesterday has been fully contained at this point and an evacuation order for the surrounding area has since been lifted. >> where are we in quantifying the damage and the cost of rebuild? >> it is still too early to say. the fire is nowhere close to over yet and the winds are supposed to pick up again tonight but what we do know so far is that this will likely be the most costly set of fires in california history. we have seen several estimates. the latest from j.p. morgan for the potential cost for insurers at over $20 billion and that is double or estimate from just a day prior so the analyst's note also warned that if the losses continue to rise and the fires are not controlled that these losses could continue to rise so the palisades fire is only 6%

contained in the eaton fire is 0% contained and we expect have eight wins and extremely dry conditions to continue and of course all of this adds pressure to the california insurance market, which has already been battered. seven out of the 12 biggest home insurers have already limited their coverage in the state over the last two years and that's partly because of the increased fire risk driven by climate change. >> michelle on the ground for us in los angeles on the continued risks around the fires that continue to rage and the cost that's been accounted for for insurers and the state more broadly. with the u.k. becoming the focus of a global bond selloff, rachel reeves is under pressure to deliver new spending cuts or tax rises. we discuss the latest next as she heads to beijing. this is bloomberg. ♪

>> welcome back. blackrock says it is leaving one of the biggest climate investor groups after being targeted by republican politicians. the money manager says membership at the initiative caused confusion regarding

practices and it was among asset managers facing a lawsuit breaching -- alleging breaching antitrust laws. this year marks the halfway point in a crucial decade for climate action as the window to limit global warming to 1.5 degrees celsius closes. is the world ready to say goodbye to coal? the move by blackrock suggest not yet. joining me now is an associate in bloomberg's markets team. could 2025 be the year that the sun finally sets on coal? we had a reminder that blackrock and many asset managers are reluctant to walk away entirely. >> yes. we are expecting coal demand to have marginally increased and 2024 and we think that in 2025 and over the next for years coal demand will largely stagnate.

the peak demand for coal looks to be almost here but a rapid decline from that point is unlikely. in advanced economies coal demand has been shrinking from coal phaseout plans and cheaper gas in the u.s. but emerging markets, mostly in asia, still have strong coal demand. china is still dependent on coal power even with its growing renewables capacity but to be on track global coal consumption needs to fall immediately from today but even then we don't see coal disappearing completely as it will be paired with carbon capture for power regeneration and remains essential for industries like steel and cement. >> the front page of the financial times this morning as the world breaches 1.5 degrees for the first time in 2024. talk to us about that china piece of the story. it's clearly a leader in renewables and the globe is increasingly reliant on them but

why is that country still burning so much coal? >> china is the biggest driver for coal demand globally and while the renewable capacity is growing and picking up a bigger share of the power mix, it is still outpaced by the growth in the country's power demand and such a gap is met by coal in china from domestic minds and international trade partners. coal is also needed to smooth out volatility in renewable generation and these technologies are highly dependent on weather, which can bring volatility to china's powers of life. >> what does all of this mean, then, for prices? if we expect demand to remain strong for coal what is the outlook prices this year? >> yes. prices have been falling since the beginning of 2023 but

remains elevated compared with the pre-energy prices due to sustained demand. higher lng prices have been keeping the utilities from switching to burning gas and that is the point for coal but volume prices last year were enough for buyers in asia to stock while gold at record high levels and we are expecting prices to remain stable in the short term as inventories in china and india are at high levels. >> thank you on the analysis around the outlook for coal at a time when we breach 1.5 degrees for the first time in 2024. thank you very much indeed for the analysis. if you would like to hear more from the analysts, download the switched on podcast on apple, spotify or wherever you get your podcasts. we will be speaking with francisco blanche from bank of america global research on the

outlook for commodities. stay with us for that conversation. a focus on gas, oil and the outlook for gold paired with the u.k. becoming the focus of a bond selloff, rachel reeves is under pressure to deliver new spending cuts or tax rises. what a debacle. we discussed the latest next. this is bloomberg. ♪

>> it is normal for the price to very when there are changes in financial markets. in recent months, moves have largely been driven by data and global geopolitical events, which is to be expected as markets adjust. the u.k. gilt markets continue to function in an orderly way.

>> darren jones speaking to the house of commons about the market selloff in u.k. assets. the argument was the same one used by liz truss after the many budget which was not given much credence by the labor market. rachel reeves came in a government promising higher growth, economic stability and six months in her project is close to being in tatters as she struggles to maintain the confidence of financial markets. let's bring in lizzy burden for the latest. what we could spend for u.k. assets, a reminder of the pressure on rachel reeves. talk us through what's been happening with darren jones and the labor government response. will it be enough to assuage investors? >> it fell to jones to defend what was going on. he described the moves as orderly. the pound has been at its lowest in over a year.

that plus the rise in long-term borrowing costs have drawn these comparisons to liz truss so orderly is not quite the language being used on the trading floor. you have citigroup jokes swirling that it is the great british peso. wells fargo saying there's room for the pound to drop even further. to be fair, sarah bredon at the bank of england also used the word orderly. that suggests to me the bank is hesitant to wade into this but economists say the bank of england will have no choice but to slow rate cuts even if growth is weak and you see that reflected in the market pricing so they are only pricing in two quarter-point cuts this year even though andrew bailey signaled a four would be coming >> so pairing those expectations around the bank of england and rate cuts even as growth stagnates in the u.k.. will we get a growth rift --

growth lift from our relationship with china? what is rachel reeves hoping to achieve? >> the prime minister's spokesman was asked did she think about suspending the trip and it was not considered being and had given -- being and had been in the diary for so long. you go back to the pint glass clinking moment with president xi and david cameron and we are a long way from that. keir starmer wants to reset relations but that golden age is not what reeves is going for at all. clearly china also needs to make some friends right now at a huge part of this will be about a focus on opportunities for the financial sector. but it does not stop the fact that the timing is risky. we are just over a week away from doll from being inaugurated. you already had some members of his team expressing concerns that maybe this will show a weak point in the special relationship. we had peter mandelson chosen to

be the new u.k. ambassador to washington. he's been a long advocate of better relations with china that might not endear him to the new u.s. administration. the european union is also trying to put pressure on china over the war in ukraine. there's a lot of short-term downside risk for something that we understand will not yield many big announcements. >> may be more to expect. how should the u.k. approach its economic relationship with china? we discussed that with vince cable at 7:30 a.m. time. wall s

>> good morning. i'm tom mackenzie in london and these are the stories that sager agenda. asian stocks slide ahead of key u.s. jobs data that could shape the outlook for interest rates. china's central bank makes a surprise move to stop buying government bonds. and 180,000 people have been forced from their homes in los angeles with firefighters battling to control new blazes. president biden promises the government will cover the state's costs and donald trump says a meeting with vladimir putin is being set up as the president-elect resets his goal to end the war in ukraine. checking in on these markets on a big day on the data front with nonfarm payrolls and jobs data out of the u.s. later today. the estimates are that you will see jobs growth of around 165,000 for december,

nonetheless showing a solid labor market in the u.s.. european futures currently pointing lower by .2% after actually posting gains yesterday and the ftse 100 was also up by the end of the close but currently flat for u.k. equities. thanks around the u.s. economy. the u.s. equity market will reopen after yesterday's closure , currently flat by .1% there could be some movements near the front end as we get nonfarm payrolls data. the pound remains under pressure after dropping to the lowest level in a year, currently down .2%. the chancellor heading to beijing. brent up .5% and gold gaining in the session. there's been more pressure on

china's equity markets. you are nearing a bear market now at least according to one china gauge and you can see that the msci china index is down 1% on the session so closing in on bear market territory for chinese stocks. we had the pb's -- pboc coming through with a surprise announcement that it would stop buying bonds. the mainland benchmark down .9% and the focus in terms of suspending bond pine is to support the currency in china. the nikkei in japan down 1% so a tough day as well for japanese stocks at 39,190. elon musk has waited into germany's election with a conversation with a far-right candidate on his social media platform which amounted to an unpaid advertisement essentially

for the afd. let's bring in oliver crook with the details. you have spoken to the leader of the afd yourself in a different context and have posed some difficult questions. what was discussed between them? >> this was a wide-ranging conversation. i think it's fair to say wide-ranging. it began on energy policy and issues she has with renewable energy and angela merkel and these sorts of things and then immigration, the sort of woke mind virus sort of stuff set up for elon musk to bite on. it also went to hitler, the colonization of mars and whether either of them believe in god so it was a long and meandering conversation. that began with about 175 thousand listeners and reached a peak around the subject of immigration.

when they were talking about energy for a while it went down to about 100,000, came back to 100 -- to 200,000 talking about immigration. this is a live event on a platform that did not bring much more than 1 -- more than 200,000 people listening to it and there are some dubious claims worth rectifying. he called her the number one candidate going into the selection and this of course is not true. they are the numbered two candidate with about 20% of the vote. there was also this long conversation about how hitler was not a far-right figure but a communist and a far left figure. i think very few people agree with that position in any community and it's also saying that the afd is any party that can preserve the life and safety of the jews in germany because there's a lot of sort of muslim hate towards them. these are things that are not true in any sense but by the end of the conversation a lot of

these topics were intended to tee up a slamdunk for both of them and musk by the end of the conversation basically reiterated his support for the afd saying they are the only common sense party in germany and the people need to get behind them. that was the sort of thrust of the conversation which was about one hour and 10 minutes and hit almost every conceivable topic. >> and we know the european union has said they were watching as well as to what was happening. does it move the dial do you think for german voters? >> the german government was certainly listening, the european union listening. there were questions about under the digital services act they could say he is doing something inappropriate in terms of interference. we will see where they go with that. i think it was an interesting

conversation because i don't know how much of this was designed for the domestic audience within germany. elon musk himself exposed to the amount he maybe does not even know much about the afd. he set it up by saying for those who have never heard of the party what would you like them to know about it? what is interesting is for the afd and alice vital is that she's really trying to move away from this idea of them being far-right and more being sort of libertarian conservatives. when you look at their economic platform there is some credibility to that. they won very little regulation, cutting taxes, but when you look at the social and cultural side, you cannot really say they are libertarian. they want a stronger and more powerful police state and believe islam is incompatible with german society and in this way it's hard to make that sell in a party that has a lot of divisions that will only really be tested if they get closer to

power because right now they can just stand from the sidelines. >> oliver crook joining us out of berlin. to a slightly different topic. , wall street top banks said to be giving their biggest increase since the pandemic. you watched the dealmaking process. that's part of the underpinning to executive expectations that they can add more bonuses. what details do we have? >> yes. a very important part of the industry and that keeps attention of many of the investors. we are seeing a big shift this year as the bonus season approaches. we come from a couple years in which onus is for investment bankers were kind of put a

little bit on hold -- you know, they came from some big increases all the way up to the coronavirus and then it was brought to a halt for quite some time and we are seeing banks like the bank of america, j.p. morgan and morgan stanley potentially coming out of that with double-digit increases for some of the business lines, including traders and dealmakers, which may see over the coming weeks potential increases of 10 or 15% and those could go even farther according to some consultants that have their own estimates but it still remains to be seen. i think the pools will set -- were set towards the end of the year and in those coming weeks

the conversations start taking place. that will very individually for the top performers are the underperformers as usual so the variation can be quite wide. >> so the variation is there. what does it tell us about the health of the industry more broadly? >> i think it is a good sign. given that this is based on cycles. we have seen over the decades through the booms and busts how it kind of shifts rapidly and some bankers may make millions in the good times and very little in the bad times so i think it's a good sign. it reflects partially the uptick in business from the back end of last year but also perhaps more

importantly on some optimism towards what's to come in 2025 and that is good because definitely the business needs that kind of optimism to thrive so for traders, investment bankers, i think the outlook is slightly better as we come into the new year. >> manwell joining us with the lead in the details on what could be a bumper bonus season for bankers out there. thank you very much indeed with a look as well to some of the dealmaking in the pipeline for 2025. back to the u.s. with a focus on the social media company of the moment, tiktok, said to appear before the supreme court in a bid to evert a band set to come into force on january 19. one day before donald trump is inaugurated. let's bring in our opening trade anchor kriti gupta.

what is the potential for that if this goes ahead? >> that's exactly where you will see the effect on big tech because the primary move, which is the expectation despite the hearing set for today, that january 9, one day before donald trump is put in office, it will be removed from the app store and that could prevent tiktok from issuing things like updates and keeping up with technology so that's quite a hit. google may actually benefit given they have that massive u2 business and meta-also expected to take that on. oracle trying to make waves in the cloud space is the number three competitor competing with the likes of amazon and alphabet. they have a major contract with tiktok in terms of hosting data on their cloud servers and that is something that could hit their bottom line. >> the inner linkages are there.

what is the chance that maybe there's a buyer? trump has walks back on that. is a buyout possible? >> under donald trump it looks like it is. take a listen to what he had to say. he filed a court briefing. i will read the filing. donald trump possesses the constant -- the consummate dealmaking expertise to save the platform while addressing national security concerns. he is no longer just talking about this in the press. he is actually making a filing in the supreme court. that is how much he believes he can find some sort of deal. the question is who are the potential suitors? that is where big tech comes into play. morgan stanley putting out a

note saying it could be something like amazon. amazon is the largest e-commerce player globally in that space. microsoft has been talked about as a potential suitor back in 2021. walmart apparently approached in 2020. even oracle. then a group called project liberty is another one talking about a lot of the people who maybe want to keep those first amendment freedoms. that group includes the likes of kevin o'leary and may actually put a bid forward. >> thank you very much indeed. opening trade anchor on the fortunes of tim -- of tiktok. we will discuss the outlook for oil and gas this year with francisco blanch. stay tuned for that interview coming out. this is bloomberg. ♪

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tom: welcome back. oil set for the best run since july as signs of market tightness offset concerns. joining us is francisco blanch, commodities and derivatives had at bank of america global research, well-positioned to talk about these markets. talk about what's underpinning oil at this point. concerns about china's economy, some signs may be are shrinking in the u.s. is that is what is putting support under it and are we looking at a breakthrough $80 in the near term? francisco: we think oil has been supported by weather for the most part. we had a cold snap, a strong performance in heating oil, diesel, but also crude oil, which has been rising in sympathy with that. obviously, opec took a measure

to extend the cuts in december, which means we have less supply than the market may have been dissipated in the first quarter. we had brazil, one of the incremental suppliers of oil from outside opec this year, underperforming their own expectations, so there's a number of factors. i still think oil will likely come off into march and the main reason is we do think that the market is in surplus. we have probably more mark -- more barrels of oil coming out of the supply side than the market wants to buy because of the end of the day we have a frail macro outlook and industrial outlook over the course of the next few months. tom: brent is at $77 a barrel. you still think it is oversupplied. where does that lead -- where

does that leave your target range? francisco: we are looking at $65 a barrel brent into the next couple months and i do think there's a winter element to it. we've had global gas rising as much as $15 per unit, roughly in parity with diesel and heating oil and we think that comes to a bit of an end next month as refineries going to maintenance so you will have more of that this year. thereafter it is hard to say. global markets are at the edge of a new administration. we could well see a broader risk off markets within 10 days and part of it is there's uncertainty around what's going to happen. everyone's talking about tariffs and tax changes but no one really knows.

i've had discussions with different corporations and nobody really knows what is coming. we have a sense that maybe there are tariffs but we don't know what they will be or how they will be applied. i think at the same time we are seeing long data yields coming up quickly in the u.s. with a steepening of the yield curve so this is all pointing to a complicated macro outlook in the next month or two. tom: so the uncertainties are there on a policy from from an incoming trump administration but there are things we know broadly. tariffs are coming in some form. tariff -- canada could be in the spotlight. this is also an administration that will go back to drill, baby, drill and we expect trump to push for more drilling. is trump a support for the oil markets or is he putting a cap on prices because he will get

more output from the u.s.? tariff impact versus production stateside. francisco: you mentioned tariffs and also iran and sanctions. we don't know which way trump will go on iran and venezuela. i think we could very well experience meaningful supply losses out of those two producers and that will change balances meaningfully. we are to .2 million barrels a day above production relative to the end of the first trump administration because of the sanctions he applied back then. we could get back to that. there's of course russia-ukraine and how that unfolds. huge element for energy markets. we lost russian gas flowing through ukraine because of the end of the transit agreement only 10 days ago. so there's uncertainty as to how

trump will deal with russia and iran and venezuela and it could very well change dramatically and to your point the whole tariff situation, what worries me the most, they are centered for the most part on china, and this means the one currency that's likely to weaken more is the chinese currency, the chinese yuan. that will be exacerbated by the weakness in the japanese yen and i think the chinese will have to let the currency weaken if those start to build up and that's never good for commodities. they are the number one buyer commodities across the board whether it's energy or metals. so a weaker chinese currency probably means lower commodity prices. tom: gold up about 30% in the last 12 months. do higher rates or rates held higher for longer derail the prospects for goal? francisco: not fully but i do think they put them on pause

until we can get back to that lower interest rate path we were on in 2024 and the reason again, you go back to the idea of currency and tariffs, central banks need the liquidity to support the currency. if you are selling something, you are going to be selling t-bills to buy your own currency to make sure depreciation is accommodated as those come through. central banks are not as much in the game of buying gold. they still want to own gold long-term but tactically they probably need lower liquidity. end of the year, $3000 but in the short-term it will be choppy for goal. tom: fantastic. thank you for coming to the studio, francisco blanch, derivatives had at bank of america global research. stay with us. this is bloomberg. ♪

>> welcome back. it is jobs day, counting down to nonfarm payrolls out of the u.s. later. expectations are you will get a print of about 165 thousand in terms of additional jobs for december, down from november, but nonetheless still solid and expected to support that view from fed officials that they can take a cautious approach to future cuts. unemployment 4.2%. it is up from the start of the year. 2024 you are at 3.7% and have moved to 4.2% but not deeply uncomfortable yet for the fed. there are parts of the labor market looking more vulnerable from the u.s. so the details on the jobs data will be consequential and could feed into moves around the treasury curve.

let's have a look at what's happening in the u.k., equity markets showing more resilience. here's the split -- thomistic versus internationally expose stocks in the u.k.. there's the crocodile shape you are seeing with the pain really coming through from the domestically focus stocks given the pressure on the pound concerns about the debt and lack of growth and about higher prices and you have seen that play out from the real estate players, builders in the u.k. and retailers as well. the vice president of france's largest employer will be speaking to us. the opening trade is next. this is bloomberg. ♪

(♪♪) hello, oh.... it'll be there in a couple of years. honey, they're here. how much longer? uh, it's going to be a while. wait. ah, wait. (music dies down) (clock ticking) (clock ticking) wait. (♪♪)

>> good morning from london. we are one hour away from the opening trade. here is what you need to know. rachel