i am dani burger in london. get a look at these equity markets because it is continuing to trend lower on the first day of the fourth quarter and first day of october. we are looking at an ugly session in japan with the nikkei down more than 2%. china is closed. perhaps fears about the energy crisis being played out in the market. europe, again, that is an epicenter of the energy crisis, down more than 1.5%. s&p futures down not significantly, but still indicating a lower open. let's talk about that and inflation with investors bracing for wind down stimulus by the fed. fears are mounting about a slowing economic growth and that inflation, the consequences of a rising. asian stocks and u.s. futures starting in the red in the fourth quarter. we are showing those pretty rough gains. the s&p 500 has just capped its biggest monthly selloff since the start of the pandemic. joining us now is the cohead of public markets at -- thank you so much for joining us. thanks for waking up early on this friday. we have a host o

i'm dani burger. this is daybreak europe. here is what you need to know.e'll speak with the c.e.o. in an hour's teep. another record for the s&p 500. equities rally underpinned by a strong earnings season. futures and asian stocks push higher. facebook rises in late trade. user growth picks up. good morning to you. it might be records in the equity market and u.b.s. earnings but the backdrop of all of that are inflationary fears. there are warning signals in this bond market. it look like larry summers agrees as well. he het out at treasury secretary yellen over her views inflation is likely to be there at the start of year and fade later on. until the fed and treasury fully recognize inflation reality, they are unlikely to deal with it successfully failure from the fed to react to fully and persistent inflation constitute the biggest policy mistake in years. when will they have to acknowledge inflation? at least the market bleefs it is here to stay. that is what the break-even rates are telling us. the 10-year at a nine-year high. we're still getting an e

i'm dani burger in london, just past 6:23 a.m..union letters are authorizing measures to blunt the impacts of the unprecedented energy crisis on the most vulnerable consumers and companies. all of this comes as we've been seeing surging commodity prices, and this is the bloomberg commodity index at an all-time high. it's not just this. it's not just energy commodities. it's lme metals at an all-time high. let's dig into this more. still with us is esty. you'll have to forgive me. i think i placed you at a different company. you are still getting used to the new title. let's stick with this energy story. we see the bloomberg commodity index at an all-time record, the lme record index at an all-time record. how much of this is due to pure speculation among traders versus the fundamental structural issues that the sector is facing? esty: it's a combination of both at this point, but there are certainly structural factors that are happening. we're seeing different stories across different regions, but a lot of them are happening at the

i am dani burger in london.s are definitely changing in china and it is important to understand what exactly is going on but tremendous opportunities are still there to be grassed. that is the view of the deputy ceo. he spoke to manus cranny as part of the bloomberg best global summit. >> absolutely, things are changing, no doubt about it. we have an office in beijing, folks who are on the ground, trying to understand what is happening. but again, this is the second-largest economy in the world. it is still growing. so far, we have not encountered any resistance from an industrial perspective. i think you need to be careful. i think you need to rethink what risk-reward looks like and because you don't have all the answers, because that story is still tbd, if you well, still developing, we are trying to figure out where it will land. we are still investing, deploying capital in china. we think that in many sectors, the fundamentals are still pretty strong. >> what is the most appealing factor in china given the v

i'm dani burger in london.he s&p 500 hit a record overnight but the mood soured after the cash session when the owner of the snapchat app tumbled on earnings outlook. this hurt other technology shares in late trading. joining us to discuss is janet mui, director of investment, brewin dolphin. there has been this idea tech was immune to supply chain issues, but snap saying in the report, because of these issues we are seeing companies not want to advertise products they do not have in stock. should there be more concerned about tech and being less immune to supply chain constraints than originally assumed? janet: good morning, thank you for having me. i think it does raise concern over the sector come about the tech sector is one of the better sectors to be positioned with this high inflation pressure. investors are right to be worried about inflation, but there are increasing signs this could last longer than what transitory means. there is a supply chain issue, if you look at the demand side of things, it rema

i'm dani burger in europe.bond yields in oil prices have been creating havoc in the stock market, but with a quarter of the index leveraged, the interest rates and energy, the ftse should stand to gain. how is the market reflecting the scenario? the faces here being that rising yields and energy should help the ftse 100 does not seem to be playing out that way? >> is interesting in that the ftse has other challenges, no doubt. it has big consumers, big health care, big industrial. they'll have their issues and there are margin concerns. as you mentioned, 27% of the index is either in financials or energy, and the dynamics of those it comes back to the idea that if you cannot beat them, join them. in this case the ftse more than any other market in europe has exposure to these factors. dani: let's get into some of those, what is the relationship? tim: if you look longer-term, the ftse's financials trade very closely with the 10 year gilt if you look at relative performance. that is broken down over the course of

i am francine lacqua in london with dani burger.ade is less than an hour away and here are your top headlines paid evergrande shares halted pending news about a major transaction. china's embattled

in london, i am dani burger and here is "daybreak: europe." the global selloff deepens, the s&p closes at its lowest level since july amid concerns about surging prices. asian stocks slump as another property developer misses a bond repayment. oil rallies to its highest since 2014 after opec bus maintains -- opec-plus maintains its gradual increase. commodity prices soared to an all-time high. and facebook suffers a devastating outage across its most popular platforms. billions lost to competitors and mark zuckerberg's fortune plunges $6 million. will it be a turnaround tuesday? certainly for james bullard, it is a regime change. we are in the middle of the st. louis fed president yesterday saying i am concerned about changing mentality. i would say around prices and the economy, the relative freedom that dismisses feel they can pass on to consumers. this is not transitory inflation, this is inflation that sticks around, if consumers are willing to pay more and companies willing to charge more. that means a big hit. long-duration, most noticea

dani burger back in the hot seat at london hq. it is daybreak europe for the stories that set your agenda. oil surgeon. wti closes above $80 a barrel for the first time since 2014. the crunch raises fears of elevated inflation. asian stocks, global futures fall as traders await u.s. cpi tomorrow. u.k. chancellor rishi sunak is warmed over the scarring to the economy. we look ahead to today's jobs data. good morning. welcome back. the party is over. we are one bad red headline away from the bond market implosion. there is one line from morgan stanley. let's give it to the viewers. there is a disconnect between the fed and investors. the fed and the investors have embraced the view that inflation is transitory, a few that is not shared by the consumers. the consumer is shaken under pressure. good morning. dani: good morning. if you want to take the other side of the trade, if you want to be an optimist, you also have good people in your company specifically jamie dimon. he was talking at a conference yesterday. the chief saying ther

i am dani burger alongside manus cranny into boy -- in dubai. >> is there a problem with the northernh protocol? yes, but we will fix that. it is not the end of the world. dani: boris johnson vows to solve an impasse over northern ireland's post-brexit status. we bring you our exclusive conversation. rate repricing. cap between five and 30 year yield treasuries narrows but -- among expectations the fed could hike as soon as next year. also, some think november hike for the boe. next up on the tech earnings timetable, netflix tonight. manus, you have to forgive me, i want to kick off the hour with being a negative nancy. we have the likes of blackrock, jp morgan saying inflation, it is not stagflation. at rbc, they point to the fact that it doesn't matter what the market expects of inflation, it matters what the consumer expects. consumers expect high inflation and therefore they are less willing to buy. that is the chart i have for us, these opposing lines. highest levels of inflation and willingness to buy. manus: you are not a negative nancy, i think you're just a pragmatic bookworm

i am manus cranny with dani burger alongside me in london hq. data disappointment. china's third quarter gdp misses estimates as the property slump and energy crisis way on -- weigh on the economy. andrew bailey says the boe will have to act amid inflation concerns. treasury yields the highest since february 2020. plus, gridlocked. global port congestion stretches supply chains, threatening the holiday shopping season and threatening higher prices. monday morning, a whole new "daybreak: europem" but the same voices banging the global rates drum. what we have is the risk, look at the rates, two-year government bonds, we are going to put on the screen. this is a doubling of rates in the u.s. on the short end by 40 basis points. they have doubled, the risk is a handbrake turn, that is what the risk is for central banks. dani: good morning. it is drama in the belly here, and i'm not talking about the overindulgent lunch. it might be a risk of a handbrake turn, but what is it mean for risk? the concern we discussed this morning is a possible bar shock. manus: exactly. as

manus: i'm manus cranny in dubai, dani burger in london.ts market taking a breathinger from the race to the record highs. this amid concerns that the energy crisis slowed down the economic recovery. so to discuss it all, we have a commodities reporter martin richie, no tough task for you martin richie this morning. i'm looking at g.m.m., three standard deviation moves lower, cink is 6.4% and copper is dying three, why, good morning. >> yeah, hello there, there are two in the metals markets, the biggest one with regards to the energy creation. we have seen beijing rule out the impressive moves to get full prices on what they call a reasonable range. it was in the announcements yesterday which are aimed to stabilize coal supplies for the winter. for metals, perhaps some less pressure on the cost particularly nor aluminum which is leading losses this morning. very early days, they speak to its urgency in tackling the energy crisis before the wind that has been pushing up by metals. dani: martin, what do you make of the moves to try and fix som

i am dani burger in london.bout teen says she believes inflation pressures are linked to the pandemic and are transitory. she urged caution. >> there's a lot of talk linked to the big issue in financial markets. is this a temporary issue? i believe it is. in the sense that covid is a one-off and it has created a spike. u.s. china is already ahead of where they were pre-covid. europe will be there in q1. i think energy is a factor. hopefully, it is part of the broader picture of how we green the economy at a cost that we can afford and that is fair. whether the cost is borne by everybody in a fair way. you have a great -- >> you have a great snapshot of the world because you have a view of the emerging markets. what worries you about what we are living throughout the moment, economically? >> let me say the positive first. we are in a much better place than a year ago. 6% global growth for this year, 4% for next year. it's actually pretty good. i think that's one thing. the other is government, especially in the d

i am francine lacqua, with dani burger. ande shares are halted pending news about a major transaction. china's developer is said to guaranteed a bond that has just matured. opec-plus meets. they will discuss the production policy today amid rising crude prices. in boris johnson says brexit britain must adapt amid fuel and food shortages. we are live from the conservative party conference. francine: let's take a look at the futures. we are seeing some pressure on the dax futures. a similar pressure across the board. the focus is on evergrande. the other focus is on the worries about stagflation. this is not only inflation, but overgrowth. we seen a number of participants saying banks have the tools to deal with it as long as they act now. unclear when that will happen. we get the tory party conference. we are expecting them to do more for the labor market. we are also expecting something nuclear when it comes to brexit and northern ireland. dani: all of that is making u.k. assets not the most attractive. we basically only hav

i'm dani burger. progress on the debt ceiling.rats will accept a republican compromise to allow a short-term increase on borrowing, postponing the risk on defaults. global stocks climb. of the great gas reversal. putin offers to export record volumes of fuel to europe, cooling surging energy prices. the ecb studying a new bond buying program for one pandemic support -- one pandemic support is phased out. the pinball machine steadying today at least. pointing higher this morning. it is indeed the help from possible relief from a russia when it comes to the energy crisis. the debt ceiling debate put on hold. xi and biden likely holding a virtual meeting. all of that lending support to markets. europe and asia ended in the red yesterday, europe saw more than 1%. the u.s. got a late time boost from the debt ceiling headlines. they ended up higher, hence why we see a little bit of outperformance. tech is the big outperform or. it is despite the fact we see yields climb higher. we are looking at a move of more than a basis point when it

anna: let's talk to dani burger. interesting to get his thoughts. tech, did you talk about things he did not like? dani: he really likes value, and anyone who follows rob arnott, they know he liked value for a long time. he has written hundreds of research papers. this time the opportunity value presents is cheaper compared to the growth stocks than in the dot com bubble. he thought he would never see that opportunity again, but he says we are here again. now is a unique time. the window will not last long, so if you are looking for something with greater returns in the future, he says by value, especially u.k. value. tom: we love a public debate. what is he taking issue with when it comes to cathie wood's strategy? dani: he loves a debate. he says the issue with what cathie wood is doing, you can have a fantastic company, but if it is expensive enough, it is a bad stock, and that is what he sees with tesla. he says fundamentals are not attached to reality when it comes to the stock price, and you cannot say just because it is a disruptor it is wort

alix: live from new york, i'm alix steel, with dani burger over in london. "bloomberg markets." the advisors to the fda our meeting now to discuss whether to recommend the pfizer/biontech covid vaccine for kids. joining us now is gregory polen, mayo clinic research group director. what is the timeline here? they get through eight hours of q&a, then what happens? gregory: my expectation is they will vote to recommend it. then the fda has to formally accept or reject or modify that vote. it will then go to the cdc advisory committee november 2 and 3, and then the cdc sign off , modify, or reject those recommendations. i expect by the end of the first week of november, kids will be able to get there vaccine. dani: assuming that is the case, what do we need to do in order to instill confidence in american parents so they actually have their children take these vaccines? dr. poland: i think this is the path back to normal for the kinds of -- we want our children to have. after all, this is a time when they are developing socialization skills, when they need to be

i manus cranny, when dani burger alongside me. apple, the company is likely to splash its targeted numbers to -- >> we see the inflationary pressures. we have heard that narrative from any policymaker as it is transitory. manus: inflation risks, with numbers coming today. more from the standard chartered ceo this hour. jp morning reports -- jp morgan reports with lenders looking in the morning. transitory is such a dirty word. there lies the point. this man is looking for the data, inflation expectations are high. he does not expect it, he has a punch upcoming. good morning. dani: good morning. both alluded to taking the punch bowl away from markets. my absolute favorite part of what he said yesterday was his commitment. i think we have this video, when he said it was a dirty word. he would put a dollar in the jar every time he said that word. i think what we are missing are more props on this show. we need a tip jar, our dirty word should be stag-flation. manus: i think you are right. i think for every guest there should be the j

i am dani burger alongside mark cudmore in london. to take us through all the market action this hour. the cash trading is less than one hour away. here are your top headlines. inflation fears group markets. 10 year and 30 year yields hit the highest since june. bastogne and brookfield say it's time to sell pay the energy -- blackstone and brookfield say it's time to sell. we are at the summit in slovenia. remaking britain. boris johnson will use his speech to shift the blame for the supply crisis, presenting it as an opportunity for the u.k. welcome to the european market open. 7:00 a.m. here in london. what a treat. we have mark here in london as well. you will be here for the next 1.5 weeks per it i don't know how we got so lucky to have you here, but of course, you could not have picked more interesting time to be alongside us in these markets. what do you make of yesterday's tuesday turn around and some angst in the market this morning? mark: i am still struggling to catch up with these markets but what is useful for catching up

i'm dani burger in london alongside tom mackenzie.p 500 closes at the lowest since july amid surging prices. asian profits fall as another developer misses a bond payment. facebook suffers a devastating outage across its popular platforms. millions flock to competitors. mark zuckerberg's fortune plunges $6 billion. oil rallies the highest since 2014. dani: let's look at the futures, 10 seconds until cash equity trading. markets are higher across the continents, up 0.2%. not huge gains, but we are getting this market opening. how is it shaping up? tom: the futures are not making up for the gains. losses yesterday, concerns for the technology sector, and the nasdaq closing down more than 2%. we want to look at individual indexes across europe given what the futures are showing. question marks about growth and inflation. which a bank -- deutsche bank will break down stagflation risks, that is increasingly part of the conversation. hong kong tech stocks, china tech stocks in a correction. the september record of the nikkei taken down 10%

i'm dani burger in london. here is what is comingon today's program. facebook rises in late tr

. ♪ dani: welcome back to bloomberg daybreak: europe, i'm dani burger in london.mpany expects a continued surge in cloud deals as customers switch over to its newer offerings. it's when the software giant raised its for your revenue forecast, a promising sign that the company's turnaround is taking hold. sap shares are up almost 12% so far this year. we are joined by the cfo of s.a.p.. great to have you on with us this morning, good morning to you. in terms of the acceleration of the cloud sales, i'm sure that this is something that comes up very frequently when you see the kind of numbers that s.a.p. posts. do you expect this piece, this momentum of the sales to continue into next year? >> good morning to you, and thanks for having me. we are extremely confident about the momentum in our cloud business. we just came off the back of an extremely strong q3. we actually had the biggest cloud order entry growth for a q3 in six years. we see all of the key metrics in the cloud accelerating. cloud revenue is up to 20% growth in q3 coming up 17% in q2 with our current b

dani burger is in london. guy dotson is off -- guy johnson is off. the u.s.till concerned about gas prices. they will continue to talk to opec. it does feel like high-energy prices are percolating, despite the fact that earnings are really crushing it right now. dani: so true. we also had the aramco ceo saying that we still have the strong demand and really tight supply, so all of that lending itself to these issues of higher energy, though margins pretty much maintained for a lot of the earnings we are seeing. alix: and we are still right near record highs for european equities. dani: we are so close to record highs. we definitely aren't there yet. we saw them in the u.s. i want to get a quick check on the markets. just about 30 minutes away from the european close, and the stock 600 is on track for its third day of gains at a rise of 0.7%. that is trading at its highest since august. so again, not at record highs, but we certainly are trying to make our way there, being led by a lot of retail companies with strong earnings. i also wanted to show us the euro