andrew bailey will testify in the next few minutes. we bring you his comments on financial stability. stocks flying a little higher today. maybe in october, the european electricity -- the plan to start using the controversial pipeline next month. european gas prices have been going up week after week. we have seen record after record. today we are continuing to see higher close to the atlantic suffering from the u.k. gas prices. gas prices in new york are up around 7% to 8%. now by 1.4%, down by seven tens of 1%. 9/10 of 1%. a little early look like the u.s. was going to be climbing, but we are starting to see a dip when it comes to wall street. taylor: when we take a look at the major averages, it is red for three straight days. we take a look at the s&p and russell, those domestically focused companies. we are holding onto 4500 here. when you think about round numbers within the s&p. otherwise, it is a rotation out of that cyclical trade. you see that with bonds. they are down two basis and reversing some of the yield higher then we

andrew bailey and i kept looking at sterling, kept looking at cable, dropping, dropping, dropping. e stage for rate hikes the end of qe. what happens to the fact that rates are supposed to support the currency? if you look at the shorter end of the curve as well, martin was basically saying, the 10-year government bond yield, in the u.k., we were back above the 1% level in of the u.k. good market. that is the highest in nine quarters. that did very little to support the pound, which says that there is a credibility gap opening up in the u.k. and volatility is moving away from the rest of the g10. dani: of course, andrew bailey as well talking about monetary policy can't fix the supply issues and especially with energy being a contributor to inflation, there is this big question, this credibility question of what can the boe actually do to keep inflation in check? manus: dani, let's take a quick shot of washington because it is going to be a very hairy couple of days. president biden is pitching his economic agenda to the lawmakers at an annual congressional baseball game. the senate

guy: i am fascinating with what andrew bailey has to say.to be changing mood around the u.k. story. "balance of power is coming up. the cable is up next. this is bloomberg. ♪ baaam. internet that doesn't miss a beat. that's cute, but my internet streams to my ride. adorable, but does yours block malware? nope. -it crushes it. pshh, mine's so fast, no one can catch me. big whoop! mine gives me a 4k streaming box. -for free! that's because you all have the same internet. xfinity xfi. so powerful, it keeps one-upping itself. can your internet do that? >> from the world of politics to the world of business, this is "balance of power" with david westin. ♪ david: from bloomberg's world headquarters in new york to our tv and radio audiences worldwide, welcome to "balance of power." another big day on capitol hill. with time running out and a government that will run out of money at midnight tomorrow. today go through a hectic day we welcome washington correspondent annmarie hordern reporting from capitol hill. 36 hours is all they have got. a lot o

andrew bailey i think a little more circumspect, saying they are watching inflation expectations. they are watching at the bank of england the second round inflation effect of these shortages. they are going to see how that feeds through. however, japan with that yellow-line inflation still negative, he said demand is surging so fast, supply cannot follow, but is probably hosting it will actually help boost inflation. one more thing we have to throw in what he said when talking about china's potential bubble or the bubble in real estate, very different, the speculative buying by real estate investors and homeowners, drove up japan prices. he does not see this as widespread in china. he does not think it will have the same kind of severe impact on the chinese economy that it did on japan back then. shery: this as investors continue to strive -- to struggle for analogies of historic examples. manufacturing activity has been hampered by widespread power shortages that intensified over the last week. let's get a preview from our chief asia correspondent. we heard from chair powell say

guy: can i get your take on those comments from andrew bailey. response to inflation if needed will be by rates. everybody has this clear, we will taper qe and then we will raise rates. the bank of england seems to be getting in a model about how the sequencing will potentially work, getting a lot more blurred. >> that is true. people are already quite confused about the meeting. i think there's some clarity for the governor. i hadn't seen the transcript yet but it is true typically central banks get out of the longer end which is qe before starting rates. the bank of england so it had a big difference. they always gave themselves a stock they want to buy. it is an interesting step and i think is a policy mistake, that will be on people's minds. prices are high but the economy could weaken relatively abruptly, the question is whether or not it's better to earlier rate hikes are really the right response. guy: a quote from the statement, the monetary policy response if we need to make one to the inflation pressure should involve bankrate, not qe.

alix: i was interested in what andrew bailey was saying, he was saying it is important to anchor thosexpectations. it feels like the u.k.'s getting double hit because of brexit. driver shortage is causing more increase. what are medium-term inflation expectations? alix: they're not putting a timetable on that. alix: of course not. >> the short-term lasts longer than maybe we would have defined it a couple of months ago. bailey saying the brexit related shortages and problems are starting to clear up. he is hoping that the inflation rate will start to come down soon. they are all sort of in the dark because they do not know when the next leg of the pandemic is going to be and how that is going to mess things up. he said we thought things were getting better and then we had outbreaks of the delta variant in a lot of smaller countries around china that had absorbed supply chain manufacturing and that has slowed us down as well. one point from corona worth mentioning, he doesn't think the chinese problems with evergrande are going to be a major problem for the world. he says it is differen

what can we expect from andrew bailey later today?ecting the bank of england to vote to keep interest rates on hold at 0.1% and at least one of the nine-member committee to vote to end asset purchases early. michael saunders, we will have to see if any of his colleagues will join him this month. we will also get an exchange of letters between the governor andrew bailey and the chancellor. that is protocol after inflation surged past the target. neither economists nor markets nor the bank of england had predicted that. the question is, how transitory is transitory? the bank had forecast that inflation would peak at 4% and fall in 2022 and 2023. some of that price growth could persist. labor shortages, energy cost rises. if we are going to pay our way out of this skills mismatch and not get more output for those pay rises, that will add to inflationary pressure. the economic act of has dim somewhat since the last set of forecasts. it will be interesting to see how the bank weighs the latest data to see what it's thinking really is. >> u

we spoke to andrew bailey. dax is currently flat to up. reading through to the sectors. basic resources yesterday were under pressure. currently, energy is top of the list. the question marks about gas prices and what kind of squeeze we are going to see in winter. you are looking at retail sales, earnings out from inditex and h&m. that is how things stand 30 minutes into the trading day in europe. francine: the european tech ecosystem is now worth more than $800 billion, with almost 50% of their value created in the last year, according to gp bullhound, which has been examining emerging trends in europe's tech sector during the pandemic. joining us now is manish madhvani, managing partner and cofounder at gp bullhound. there is some great unicorns in the tech sector. they become bigger, in some cases, they make money. you don't have the google, the paypals. what does the u.s. do so well? manish: i think there is a time difference that you saw the u.s. have these what you call mega rounds, investment rounds, 100 million going into some of t

that was coming from andrew bailey saying the shocks we are seeing are restricted to the supply-sidend there's only so much central banks can do about it. what can central banks do about this? are they hamstrung in terms of coping with supply-side shocks? >> to be honest, central banks are not in a role to deal with that. market forces encourage to increase supply. this is what we have seen here. politics can also do something. you see, central banks can contribute to that by dampening demand by higher rates, by more monetary policy. but the challenge for central banks as they have committed themselves so much to austere financial markets to play their role to stimulate the economy. now they are really careful. some are testing if they can withdraw the stimulus. some are not. this is the challenge for central banks to see if signaling withdrawing stimulus is too much for financial markets. headwinds also for the world economy. the path to bring demand and supply together is rather on the market site. -- side. manus: we spoke to the secretary general. goldman is talking $90. bank of a

shares -- bank of england's governor andrew bailey has called on the european union to clarify plansearinghouses, warning any upheaval risk is a real threat to stability. london dominated clearinghouses can take businesses inside. the temporary waiver lapses next june. >> if they want to break the system up, it is important to consider the risks. this is not a sort of idle "you would say this, wouldn't you" coming from the central bank. that is a real threat. we put central clearing at the heart of the system post financial crisis for a reason. rishaad: that is a look at the first word headlines. yvonne: coming up, a change in pace -- a change of pace in our equality segment as we look at women in afghanistan under taliban rule. ♪ yvonne: with the taliban now firmly in control of afghanistan, the future of the country's female population is of growing concern. rishaad: women will be allowed to go to school, but mixed classes will be banned. the group also added that ultimately, women must live within the framework of islamic rule. yvonne: our next guest is a human rights activist wor

tom: bloomberg's lizzy burden on the under furlough and why andrew bailey talked about the swarm of locustson the list, the docket for the u.k. amid all those challenges. we are going to look at your stocks to watch, including swedish clothing retailer h&m. the company reporting a pretax profit in the third quarter that beat estimates. those stocks and more. this is bloomberg. -- though stocks and more are next. this is bloomberg. ♪ ♪ francine: welcome back to the open. eight minutes from the cash equities. we are holding onto gains. we see ftse futures gaining. the market is actually focusing on possibly extra central bank support, apart from the bank of inland. we've heard from central banks sank don't worry about inflation, it's transitory. money markets believe inflation is here, certainly in the u.k., and they're expecting three interest-rate hikes from the boe in 2022. let's get to our stocks to watch. you are watching h&m? >> it looks like the pandemic impacts are using. it has reinstated its dividend, which always gets a thumb up from investors. h&m shares have struggled against riv

the governor andrew bailey testifying on stability, pay attention to those markets.monetary policy has driven suit -- asset higher. the meme stocks are back. we get more data from china on the inflation front. cpi data wednesday night in the u.s., thursday morning in asia. plenty to look forward to their. taylor: plenty more coming up here as well. arne duncan is joining "balance of power" coming up on bloomberg television and radio. guy: i'm going over to bloomberg radio as well. we will be dealing with the details of what boris johnson announced. this is bloomberg. ♪ in business, it's never just another day. it's the big sale, or the big presentation. the day where everything goes right. or the one where nothing does. with comcast business you get the network that can deliver gig speeds to the most businesses and advanced cybersecurity to protect every device on it— all backed by a dedicated team, 24/7. every day in business is a big day. we'll keep you ready for what's next. comcast business powering possibilities. so many people are overweight now and asking them

andrew bailey will testify in the next few minutes.ents on financial stability. stocks flying a little higher today. maybe in october, the european electricity -- the plan to start using the controversial pipeline next month. european gas prices have been going up week after week. we have seen record after record. today we are continuing to see higher close to the atlantic suffering from the u.k. gas prices. gas prices in new york are up around

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anna: the bank of england governor, andrew bailey.oine bouvet, senior rates strategist, ing is still with us. give us your thoughts on the bank of england and the pressure they may be under to think about rate rises because of where inflation has got to. antoine: they are clearly not pushing back against expectations. what is interesting, if you look at the front end of the curve over the summer, a rate hike in the u.s. and the euro zone have been pared back. that is not the case in the u.k.. there is the expectation the bank of england will follow the fed, but by the end of next year or 2023. when you look forward pricing where the bank of england base case will be, it is struggling to go over the 5% level. the bank of england has suggested it will start quantitative tightening, which will be a new phase. the bank of england will be one of the first ones to do it. [indiscernible] they do not know what will happen when quantitative tightening starts. mark: not much volatility across -- but going into the end of the year, what is the b

we get an exchange of letters between the governor, andrew bailey, which is protocol after inflation hits the 2% target. neither economists nor markets nor the bank of england addicted that. the question is how transitory is transitory? the bank forecast peak inflation this year and would decline in 2022-2023, but some price growth could persist because of the energy cost rises we have heard about. and paying our way out of the skills mismatch will add two inflationary pressures if we do not get more output for pay rises. you said it was a puzzle, the economic backdrop since the last forecast, it will be interesting to see how the bank weighs their conflicting data to give an insight on what is really going on in the economy. dani: thank you so much, lizzy burden. mark, you said you did not expect fireworks from central bank decisions. maybe we are still opining for that earlier in the week. are there at least any decisions that could be interesting or consequential? mark: because i am a bit of a nerd, i am interested in all of them -- most of them, maybe. i think the bank of england

andrew bailey has called on the eu to clarify its post-brexit plans on curing houses, warning any upheaval real stress to financial stability. he told a bloomberg conference it must be decided sooner rather than later whether they can take business to clients inside the block. a temporary waiver lasts through next june. >> to take a decision to break the system up, it is important to consider the risks of financial stability that come with it. it is not a sort of idle -- you wouldn't say it would be coming from the u.k. central bank. that is a real threat. we put central curing at the heart of the system for a reason. vonnie: global news, 24 hours a day, on air and at bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i'm vonnie quin. this is bloomberg. shery: let's see how we are setting up for the market opens across asia. we are watching the countdown to the open in seoul. sophie: the head of the open in south korea. here's how we stand on the kospi. key support level last seen on august 20, followed by a two-week rally. tuesday, it rose

baierwalter andrew j. bailey brett t.there watching over us and even though i never met you in person, i still miss you a lot. mom always tells me all of crazy fun things you did, and i'm sure if you were there, we would lead you here. and thanks for being the best guardian angel and for sending security, we know you can see us, mom says i have your loveable charm and fearlessness. not only do i have my charm but i'm honored to have your name as my middle name. you and papa and dad have inspired me to follow in your footsteps and become a firefighter too. we hope you continue to watch over us and keep us healthy and safe. we love sow much, chris. >> and my sister, cecilia elizabeth blossom, deer cc, it has been 20 years significant since you left us. i remember this day as if it was yesterday. you are greatly missed by our mother, your sisters, your nieces, your nephews. it was such a sad day on september 11th. i remember you working at the pentagon, and when you told us that the airplane had attacked the pentagon, we cou

. >> andrew j. bailey. >> brett t.ley. >> garnet ace bailey. >> tatyana bakalinskaya. >> michael s. baksh. >> sharon m. balkcom. >> michael andrew bane. >> tin mining ago. geithner -- my uncle. even though i never met you in person, i miss you a lot. my mom always tells me the fun things you did and i am sure if you were here i would be doing them with you. thank you for being the best guardian angel. mom also says i have your lovable charm and fearlessness. not only do i have your charm i am honored to have your name as my middlemen. i am going to become a firefighter. we hope you will continue to watch over us and keep us healthy and safe. we love you so much. >> and my sister. elizabeth lawson. it has been 20 years since you left us. i remember this day as if it was yesterday. you are greatly missed by our mother, your sisters, your nieces, your nephews. it was such a sad day. i remember you working at the pentagon. from the building i could see the smoke. i could not believe that. that you are gone. i just want to

andrew bailey, the governor of england last night, joked, "when are the locusts due to arrive?"nk you. | jane is with us this morning. can i describe it as a bit of a rumpus in the premier league last night? what happened, jane? the premier league last night? what happened. jane?— happened, jane? emotions and assions happened, jane? emotions and passions running _ happened, jane? emotions and passions running high, - happened, jane? emotions and i passions running high, especially when there was a 95th—minute equaliser. there were words that were had... equaliser. there were words that were had- - -_ were had... very diplomatic, jane---! _ were had... very diplomatic, jane...! yeah, _ were had. .. very diplomatic, jane...! yeah, it— were had... very diplomatic, jane. . .! yeah, it was - were had... very diplomatic, i jane. . .! yeah, it was something of were had... very diplomatic, - jane. . .! yeah, it was something of a heated match _ jane. . .! yeah, it was something of a heated match at _ jane. . .! yeah, it was something of a heated match at selhurst _ jane. . .! yeah, it w

baierwalter andrew j. bailey brett t. bailey garnet ace bailey. tatyana bakalinskaya michael s. ncle, christopher michael mazula, i know you're with us every day watching over us, even though i never met you in person i miss you a lot. mom tells me the crazy fun things you did, and i'm sure if you were here i'd be doing them with you. thank you for being the best guardian angel and sending us killian. mom says i have your charm and fearlessness. you, pop and dad have inspired me to follow in your footsteps and become a firefighter, too. we hope you watch over us and keep us safe. we love you uncle chris. >>> and my sister, see celia richard w. lawson. cc it's been 20 years since you left us. i remember it as if it was yesterday. you are remembered by your mother, sister, nieces and nephews. it was such a sad day. i remember you working at the pentagon and when they told us an airplane attacked the pentagon, i couldn't believe it. from the building where i worked at epa, i could see the smoke, and i couldn't believe that -- that you're gone. >> we ask that everyone silence all mob