as equity incubators. third, give first priority for permit application processing to equity applicants that are sole proprietors or whose business is 100% owned by a combination of owners that are verified equity applicants, give second processing priority to holders of temporary cannabis business permits that commit to sharing use of their facilities with one or more equity applicants and add to the sixth processing prior applicants that preefg held temporary cannabis permits, in addition to those that currently hold such permits. fourth, prohibit transfers of more than a 50% ownership interesting in a cannabis business for five years after the office of cannabis acknowledges receipt of an application for a cannabis business permit for that cannabis business, incompetent stead of ten years from the date of permit issuance. fifth, exempt transfers of ownership in a cannabis business triggered by an owner's death from transfer limits that would otherwise apply. sixth, require that a cannabis business seeki

as equity incubators. third, give first priority for permit application processing to equity applicants that are sole proprietors or whose business is 100% owned by a combination of owners that are verified equity applicants, give second processing priority to holders of temporary cannabis business permits that commit to sharing use of their facilities with one or more equity applicants and add to the sixth processing prior applicants that preefg held temporary cannabis permits, in addition to those that currently hold such permits. fourth, prohibit transfers of more than a 50% ownership interesting in a cannabis business for five years after the office of cannabis acknowledges receipt of an application for a cannabis business permit for that cannabis business, incompetent stead of ten years from the date of permit issuance. fifth, exempt transfers of ownership in a cannabis business triggered by an owner's death from transfer limits that would otherwise apply. sixth, require that a cannabis business seeki

it means the intent of the program was that equity incubators support the interest of an equity partner in another business, not one where they are receiving the benefit of their own incubation. that's one that exists that we'd like to tie up. and lastly, we're clarifying the process for removing delinquent items in our cannabis process that are creating a bit of a backlog or making it difficult for owners to move through the process quickly. so thank you for your time on this and happy to answer any questions. >> chair mar: thank you for that presentation. there's a lot included, but i think the intent and the overall goal is strengthening the equity and strengthening opportunities for equity applicants in the cannabis industry, so really, really thank you. colleagues, i just wonder if you have any questions or remarks? i had maybe some just general questions around the first part of the -- that you went over around the prioritization of equity applicants and prioritizing, like, 100% of equity applicants being first priority, and second priority being applicants that have shared manufa

jonathan: bloomberg surveillance, your equity market up.are almost one -- up almost one basis point. for our audience worldwide, this is bloomberg. ♪ ritika: the toughest restriction on abortion remains in place. a texas law was locked by the court. they had asked the lobby put on hold while the legal fight goes forward. the states freeze on addictions in new york have been extended. it was supposed to have ended two days ago. the remnants of hurricane ida ripped through new york and across the northeast and that triggered tornadoes and thunderstorms and torrential rain. traffic was a mess and train service was suspended in manhattan. more than three inches of rain fell in one hour in central park . the u.s. is being pushed on climate change. they say washington must take the first step. john kerry said china must do his part on carbon emissions. the u.s. justice department is prepared a second napoli lawsuit against -- a second monopoly lawsuit against google. the company is already fighting a justice department suit over web search. this

equities could be the next.at goldman sachs have issued fresh warnings on the potential for negative shocks to end the relentless runup in stocks. risks include the spreading delta virus strain. moves by central banks to exit stimulus programs. let's put that together and think where we have appetite for risk assets. nice to speak to you. let's take the big picture on stocks now. how concerned are you about things like yesterday? european stocks. heavy selling without many people willing able to identify why that was. really the delta narrative in c.p.r. clear in other parts of the world perhaps. what is it causing the negativity around risk assets? is it because it is september? >> good morning. i think people are coming back to working from home. reassessing and and reappraising the value within stock markets. i think the variant is more -- two things that matter most the trajectory for growth and earnings growth in particular. many sectors, given the strength this year, will be a investigation next year. viol

you see a 25% on the performance of the chinese equities over u.s. equities for good reason. that is why we are neutral. at the same time, while there is a lot of uncertainty, that means the risk premium has increased considerably. i'm thinking about broad market exposure. that broad market story. jonathan: how do you reconcile your bond market call, your federal reserve call, with where you want to own and the equity market domestically in america -- in the equity market domestically in america? jean: we think rates are on the way up on the 10 year. our conviction has not waned despite the fact that it has been stubbornly low over the last few months. that said, we are going to see a shallow normalization of policy rates in the u.s. and some inflation coming. inflation coming through with very low rates, it is a real rate environment that is very negative. that will be supportive of risk assets even in the u.s.. we are neutral on u.s. equities. we are going to hear more this week. lisa: i want to make that clear. you care about the debt ceiling? jean: we think headline risks

equities. we are looking to see if we can get the gtv chart, if all of 5%, the worst quarter for asian stocks since march 2020, of course, the head of the pandemic. september is never a kind month for equities. risky and frisky for equities. tom: that is classic manus, isn't it? thank you, juliette saly come out of singapore. here is the latest on the politics. write this one down. kishida has won the bid to be the leader of the ldp in japan and is set to be japan's next prime minister. let's get all the details from our north -- chief north asian correspondent, stephen engle, who has been in hong kong and across this story. what is the latest? how significant is this? stephen: it means that kishida, the former foreign minister, will be the next prime minister of japan barring some sort of unforeseen situation. the leader of the ldp and their coalition partners in the parliament to have that majority. on october 4, kishida will be named the next prime. so they chose -- the ldp stalwarts chose p

>> well, equity holders will probably be wiped out.peak for the debt they probably will lose a lot of employees, and, unfortunately, some of the real estate speculators in china and some of the employees in china who trusted evergrande are going to lose their money the chinese government probably has a plan to deal with it without widespread ruining the chinese economy. so chicken little that i'm reading about today i don't think really exists, but the collateral damage i think will be mitigated by the government >> so you could see a scenario in which i brought up with jim chanos that the equity and debt holders are wiped out but the lenders are not, because that would have the potential for a more systemic issue in china if not beyond >> yes i mean the government's first priority is to take care of the customers and take care of the employees. afterward, they don't even care about the equity holders and the bondholders at the caveat emptor it was in the filings in the debt if you chose to buy it, it is on you. when the employees gave

the work by our equity team suggest higher commodity prices tend to have more benefits for european equitiesvel. i do think something we will have to watch and will drive a lot more single stock related dispersion as we start to see some of these impacts come through. it is also very important story as we go into the u.s. and c expectations are higher and where you have a combination of higher gasoline prices but also big drops in income as some of these government support teams have started to rolloff. i think this is going to be a theme that comes through in third-quarter earnings. we think it might be less of a risk in europe than the u.s. and we are positioned that way. it is also something that will drive dispersion and a lot more of the midcycle conversations around pricing power, margin pressure, and so on. alix: i wonder how much investors are going to care. i point to what guy was saying earlier. the market does not really care. the automobile sector is higher. how much of this do you think is already priced? we have been talking about it for such a long time. andrew: that is a grea

jonathan: here's your equity market. equity futures coming in. a single point on the s&p.ot much to get excited about. into the bond market, yields at a couple of basis points. crude positive, up a little more than 1%. as we inched toward that ecb -- as we inch toward that ecb. >> let's talk about fundamentals. the openings for the month of july, a new record high north of 10 million job openings in the u.s. economy as these frictions do persist. i am looking also at the participation rate and how much this really bleeds into a participation rate that just won't go back to where it was. bond sales continues. $38 billion of 10 year notes. $120 billion of u.s. debt this week. i'm very interested to hear what john williams has to say about the pace of the economic recovery, given the backdrop of delta, given the rolloff of some of the fiscal concerns. he is one of the big three in addition to jay powell. right now, the fed balance sheet, $8.3 trillion, a record, and probably going higher. jonathan: stay on that. even if they do start to taper, even if they completely unwind,

you are neutral on chinese equities. we have seen the pboc providing more funding for banks to support sme's. a mixture of data out of china causing concern. what do you need to see to change your view fundamentally on chinese equities? >> currently, neutral chinese equities. strategically, we are overweight significantly in the allocation of global investors to the chinese equity market. in the near term, for us to be more positive, overweight chinese equities, we have to be comfortable we have seen peak red glittery in terms of regulatory clampdown focus. maybe we are getting towards it, it is not entirely clear. our neutral tactical overweight -- tactical view on chinese equities is considering the fact that while the market has come off of a lot, the earlier year peak, everything else being equal might be better valuation looking better. but because we want to price in greater equity risk premium and earnings growth reduction, we are keeping our neutral real. it is a nontrivial decision, given a wide range of factors

equity collateral. so we're asking to add that to the portfolio with the believe that our ability to lend out non u.s. equities will expand from a fairly low utilization rate to 12% to two to three times that amount. guidelines for these have been attached for your review. again, these are implementation details but in the interest of transparency i wanted to bring them forward. anna lang can speak more and we have michael mcinnis available to answer any questions. >> president casciato: any questions? >> just a quick question. so, i'm concerned about the rates and on the euro dollar and how that will work in the accounting port. did they talk about that at all. the rates were negative and they couldn't account for it so i'm curious what they put in place since then? >> certainly with the rate climate in europe there are negative rates. >> that's what i'm concerned about. >> so, this is a spread creation exercise. so the revenue that is earned is the difference between the yield earned investing the cas

equities. futures again fairly flat in europe, and the european equities -- u.s.quity market futures, we can roll on and show you what we've got going on there, slightly positive, up .2% or so. coming to the gmm, mark, it does illustrate the scale of the move that we're seeing around japan and the news around the prime minister there. mark: yeah, absolutely. it's been like that the rest of this week, markets directionless, trading more than micro themes. there wasn't anything macro there. suddenly after lunch break, japanese stocks surged. you can see the top of the equity index column, the japanese nikkei up to present. another theme -- 2%. another theme, slightly risk on tone, but a kind of sense that japanese/korean relations are at such a low, they can't be any worse and therefore the change of leadership in japan implies that they might improve. so i wouldn't expect this to have a lot of likes, but that is why the -- legs, but that is why it is in the positive column. commodities are doing well across the board today, feeding through the head of this jobs rep

equity market risk. the evergrande implosion on the equity price bearing fruit on risk of sentiments. u.s. futures down three quarters of 1%. the tail is wagging the dog. also, you got to contend with a debt ceiling as well, and rate decisions go lower this week, many closely watched. risk banking kicks off on tuesday and wednesday, the bank of japan, and then we turn to the fed which might if clues on tapering. would it be brave to taper on an evergrande? dani: thursday, attention on the bank of england. on the same day, decisions from switzerland and norway. a lot for markets to digest this week. but coming up, speaking of markets, we will discuss what is moving them and we stick with evergrande the evergrande theme. the moment of truth coming up this week. this is bloomberg. ♪ manus: it is "daybreak: europe." stocks in the u.s., equity futures ripping through the 4400 mark this morning, concerns on the risk of contagion from the evergrande debt crisis. it will continue until thursday, that's when they

global equities cio. ash nuveen global equities cio -- nuveen global equities cio. tom: they have been crushed. they are down 2.4% from there post-pandemic hi i know where you are going with this. jonathan: -- post-pandemic high. jonathan: i know where you are going with this. 1.1679%. president lagarde saying, "the ecb must not overreact to transitory supply shocks. the federal reserve would agree with the ecb. i think if you want to a cup this affects market and get some clean directional trades on the likes of euro-dollar, we need to see divergence between central banks. just given the way things are starting to set up for next year, maybe we start to see that between the ecb and the federal reserve to the back end of next year. tom: i think they are both massively data dependent. i get where you're going, but i don't know how you do that if you don't have a plan, if you don't have a belief. right now they are all just staggering to the next set of economic data. jonathan: you have to say the ecb will be much more reluctant to raise interest rates than if of ever

equities to lead gains. i can see them bouncing around in a range mildly positive while the rest of the world wonders why they are not catching up in enthusiasm seen in u.s. markets for some time. anna: you can get analysis and insight from mark and the rest of his team on mliv . coming up, germany's election race tightens. we will look at the polling. plus, business travel as we have known it might be a thing of the past. a recent survey shows many companies plan to cut down on corporate travel. we dig into why. up next, the hocks push back -- the hawks push back. we discussed that, next. if you have any questions, send them to us. this is bloomberg. ♪ anna: welcome back to the european market open. 50 minutes until the start of cash equity trading. european market futures pointing to the upside. european inflation data sent bund yields higher. some said it may be time to discuss the end of the government bond buying program. joining us now is marcus morris-eyton, portfolio manager / director, allianz.

equity markets closed. post payrolls it is interesting equities on the front foot. commodities also fascinating. let's dig into the details. here is emma chandra. emma: we will cover the equity markets. looking at some of the major european indices. the stoxx 600 gaining .7%. technology stocks are doing heavy lifting followed closely by consumer stocks and it is also why we are seeing a nice gain for the cac 40. earlier in the session again of almost 1%. luxury stocks doing well. wanted to mention the ftse 100. a nice gain as well. around .7%. some of the potential to cover targets are the biggest gainers. i wanted to dive deeper into that. i see some research from hsbc asset management put this chart together to show you how cheap the u.k. is compared to the other major markets. that valuation cap has been gaining and that is why we've been seeing the u.k. as a very attractive place for investors and those looking to take over companies. we are looking at the u.k., the third-largest takeover market this year just behind the u.s. and china. we will get a read later

. >> we like equities and are overweight. unless we get a big pullback. >> this is a grinding dollar story. >> as long as the public believes in the mark -- in the market, it will move higher. >> this is bloomberg surveillance with tom keene, jonathan ferro, and lisa abramowicz. jonathan: what a chappie week. this is bloomberg surveillance: live. alongside lisa abramowicz, i have tom ferro. we had kailey leinz. lisa, let's start with the price action, a new cap is set up for -- north of 140. the market is breaking down a little bit this friday morning. lisa: this is taking hold with the idea of higher stocks, we do see the territories and this is notable after so many boring sessions. . jonathan: a sign of resiliency or complacency? lisa: that the key question. it's not been disruptive to the idea of a stronger equity lift. but it's coming from all parts of the global bond market. there is a shift to a more hawkish tone, globally. this will have ramifications, and that's when i'm watching. jonathan: we have a ton to get throu

equity futures pointing a little higher.s could be in focus on the back of what, the toyota news? >> that is right. this is the second production morning we have had. we had one for the september output. that was primarily on the chip shortage. this is another component shortage to blame, but a lot of it is being attributed to covid-19 cases. we will expect stocks to be under pressure thisfb morning. mark: what is going on with mining stocks today? >> this will be right up your street. metals are flying this morning. especially aluminum and nickel. they are at the top end of decade highs. copper is rising. iron is a little lower. for those stocks that are specifically base metals, very likely going to see a good day. anna: some deal news, what is the story? >> the ongoing restructuring, it has been going on the past few years. they are selling a brazilian unit. we have heard this is likely to be taken very well. they are selling an underperforming business, what analysts see as a good valuation. anna: we will look out for th

asian equities.e look at distribution on a global basis, what we have is basically a situation where our main scenario is a scenario of reasonable growth on one side and inflation that is favorable for equities. then we have two risk scenarios, we have a second scenario that is basically the risk scenario we had yesterday in the market, is a scenario in which the growth collapse and inflation is very low, not very good for equities that very good for government bonds. we attribute 40% to that scenario. last but least, there is a scenario of stag-flation, with low growth, and we only attribute 10% probability. manus: your base is high growth and low inflation. we will talk more about that with the fed in a moment. a number of people have joined us saying we don't want any china equity, i am sketchy on corporate credit. look at the blowout in high-yield, 14% and climbing in china. is there anything that would tempt you into high-yield or do you want be higher -- wanted to be higher in the capital struc

your equity market is up 15 on the s&p. into the bond market, i've got so much to say after being away for so long. the fx market, advice. tom: can we talk about qpr in the next hour? jonathan: we can do that a little bit later, tom. lisa, it's up by 1/10 of 1%. lisa: i'm just getting emotional listening to you back together. it's lovely. not to bring it down, but we have some economic data. u.s. adp employment changes through the private payrolls for the month of august with an expectation of 638,000 additional jobs created. this is versus 330,000 in the prior reader. of course it's unclear how much this actually matters or the jobs report on friday. we always talk about if this is an actual precursor despite the delta variant. 10 a.m., i would argue that this is possibly going to be a more important data point to watch. the ism manufacturing figure for the united states, the idea being the increasing costs is dramatic. unfilled orders that we saw arising to record levels in europe. how much is this pressuring factories in

debt for the equities.highlights the uncomfortable relationship china currently has with external investors, another big issue that has significant revocations. jonathan: equity futures up 25, advancing about 0.6%. we get to the bond market, shaping up as follows. yields up three basis points to 1.3345%. yields up a couple of basis points on 30's. this is where the attention is right now, on this bond right here. $0.29 on the dollar. that is a deeply distressed dollar bond out of evergrande. there's an $83.5 million interest payment due today. tom: the textbook convention here, as the stress goes to $0.21 on the dollar, 29.60 is not too far from a 21 level. jonathan: we could joke about it, but i'm not sure how that is helpful. we talked about it through the morning. steve chiavarone said the same thing. surprised to the equity market has taken a lot of this in the near term. with your movers this morning, let's say good morning to romaine. romaine: apple setting up for a third straight day of gains, as is

equities.itcoin remains in focus on the back of that story around el salvador's fumbled rollout. currently trading at $64, 400. slightly lower in the session. the futures in the u.s. remain the focus. that divergent picture. the nasdaq reaching a new record. the focus continues to be as well on the policy front coming out of china and how investors should be reading that. they are seeking to ease the concerns of jinping's regulatory crackdown. some investors have been rattled china should not be neglected. >> one way or another, we have to move more to environment of equal opportunity. hopefully to produce greater productivity to equal opportunity. but also to reduce that wealth gap. that is opportunity gap and that redistribution is in the swing and that'll happen. tom: joining us this morning is the chief investment strategist ateama. thank you for joining us early this morning out of amsterdam. what is your view on the changes that we're seeing in china? do the risks now undermine the case f

equity is up with volatility. this was a big move for equity. we are coming out of the bond market ndc and china for the next month, but we are set up for a rally in the year end, and those concerns are refocused on the growth rate which is a stealth catch up about two re-accelerate. we have seen a lot of data over the last few weeks. it was when the virus cases and global virus cases were 30% higher than they are right now. again, i think policy has remained in place. yields are a fraction of where they were coming out of those sessions. valuation will stay high. john: still constructive. a global market strategist. that is the optimistic view at year end. tom: what is important to me is the nuance for those that are bullish, just as there there are bullish for those who are skeptical. john: is it too soon to talk about rallies? lisa: you want to talk about it? go ahead. right now, it is too early, simply because of the unknowns. we are talking about china and oil prices. we are really expecting to see $100 a barrel oil. how did that change inf

what does it mean for equities? >> equity markets should be ok with this outcome.he spd has won, the margin is quite small. the red red green coalition is off the table. we think that is positive. we think about what the spd really was in terms of fiscal engagement, those should be at the margin more positive. we are thinking this event, which we did not see is a big market impact to begin with, will end up being positive for markets overall. francine: thank you. now let's get to the bloomberg first word news. >> boris johnson is under pressure to ease the supply chain crisis after panic buying at petrol stations saw fuel pumps run dry. the government has move to suspend competition rules. johnson earlier announced a u-turn on immigration rules for foreign truckers while his transport secretary left open the prospect of bringing in the army. china's energy crisis is escalating with rising demand and surging: gas prices as well as strict emission cuts ordered by beijing. residents of several northern provinces have already been hit by black cats with several industr

and, in fact, the equity program as we know had started even before the city's approach to equity. the hospital gave an update on what they were doing and are hoping to hire a director of equity and inclusion in the next few months to ensure leadership in this important topic. there was also an update on the work against violence prevention which had a very thorough review looking at its causes and looking at a potential solutions. it actually did a very deep dive into the types of violence and where they were actually taking place. we'll be working with, and continue to work on this, and i would say that this was perhaps the more in-depth -- the most in-depth report we've had trying to get to the root causes of workplace violence. much of that violence actually, as could be expected, was in the emergency rooms. and through some of our psych units. but definitely the hospital was taking a deep dive and focusing on those areas for improvement and safety of our workers and the patients. in addition, we reviewed the regulatory report, and police had reported that the joint commission

anna hand will join us on the equity market. wells fargo security equity strategist. from new york city this morning, good morning to you all, this is bloomberg. berg. >> with the first word news, i'm ritika gupta. this may be the start in new era of spaceflight. spacex launched four civilians. this includes a childhood cancer survivor. isaac pays spacex $200 million for the flight. president biden's economic agenda risks a delay by weeks and months in congress. other issues are unresolved. plus the squabbling between the democratic party progressives and moderate wings. the house committee needs to wrap up work yesterday on the package including $1 trillion in tax increases. turns out the latest missile tested i north korea -- by north korea were fired from a train. this suggests kim jong-un has a new option as a quick strike against u.s. allies in the region in south of korea and japan. cdc will meet next week to talk about booster shots. this is after president biden's rollout. likely the government will be delayed for a few days. outside experts advise the cdc on

let's look at the equity markets.quities lighter with the hang seng tech index also under pressure. s&p futures, bank of america has done its weekly flow update. a 20% bump in terms of stimulus, fiscal stimulus. equity inflows, the cumulative inflows, .8 trillion. you don't want to be left out seems to be the consensus building. let's talk about the commodity story. david ingles joins us from hong kong. a big picture view on supply and demand and the stickiness or the difficulty in the supply chain. where are we on some of the metals? let's focus on aluminum. david: that was the note out of jeff curry published this morning. it is not just in china but increasingly in europe. not to mention is this is barreling towards shanghai. we have now doubled in terms of the prices of the lme contract. look at this bloomberg charge. our own measure of industrial metals is now within 5% of 2007 levels. that will be a new record high. a 95% rally from last year. you can imagine how this is playing through to the equity market. you

equities versus u.s. equities. the tax issues that you have alluded to are more negative factors. jonathan: if you want a passing dig at the red sox before you go. luke: i can't shoot a man when he is down. jonathan: that is a dig in and of itself. lisa: fantastic. jonathan: ubs asset management. let's go to the news from punch ball. democrats appear to back a corporate rate boost to 25%, from 21%, instead of the move the president pushed for to 28%. kailey: we are talking about three percentage points, but that is still a hike, and not just corporate tax rate hikes we are talking about. we are looking at a higher capital gains tax. democrats are considering other forms of taxes including on the salaries of corporate executives for excess pay. as we look at the 3.5 billion dollar budget reconciliation, we have to pay attention to the composition. jonathan: it is a big effort in washington. lisa: but 3.5 trillion dollar package, will it really be $3.5 trillion? if you don't get the whole thing but you also get the offsets, how much growth do we get? jonathan: i will go with lower,

equity futures down 21.s are aggressively higher than yesterday session and are unchanged now. the turnaround of the week is in the bond market. can you make sense of the bond market wednesday into friday. lisa: i don't understand it and everyone tries to give it a narrative. the one correlation is as we got word in europe about a little more of a hawkish yield, there is more of a shift yesterday. jonathan: the first thing i did was got back home and logged onto bloomberg and saw that securities were online. it was predicted. they said this is what i think will happen with the news conference, a focus on the dot s because i think they will shift. there is a lot of treasuries that need to be taken down. the tapering story will be more aggressive and she was right. whether that sticks, i have no idea. we have added serious weight in the last month and that's where this delicate rate hike is playing out with a little bit more to fives and out. lisa: i like you coming home and immediately logging onto bloomberg.

equity futures are doing a k.e basically unchanged in the s&p 500 step we are positive on the nasdaq stock. tom: i was looking at the yield. it's stunning. jonathan: your top this morning, lisa. tom: ruskin is talking not about the g7 but the g2 and that can only be the united states and china. he says this needs to be washed. in what way you watch this relationship? >> i think this relationship is fraught for many different reasons, not least of which is political. the economic divergence which doesn't have to happen in tandem with politics but the divergence he you see an economic policies, particular monetary policy is important to keep in mind in no small part because you are seeing no sign that china will take up any slack in slowing growth in the united states or any tightening of monetary policy in the united states. if anything, you are seeing a further slowing in chinese growth. that's problematic from global growth. it's a signal that pmi is topping out. we've got to see how this plays out. tom: we have

equities to neutral as they shift preferences to european and japanese equities.a time when there is a lot of concern about lofty valuations over in the u.s. this is the chart. s&p 500, orange line, trading at a premium to global equities which is your white line. this is on a year-to-date basis. they cite a number of reasons, one is the spread of the delta variant. we also had morgan stanley coming on bloomberg and saying rates are going to move higher on a hawkish bed which will weigh on the equities outlook. not alone in sounding the alarm. credit suisse, citigroup both chiming in. citigroup saying a minor correction could be exacerbated by the fact we have so many bullish trades at play. they are saying the s&p 500 is outpacing short by 10 to one. credit suisse concerned about some of those extreme valuations. taylor: thank you as always, ritika gupta. let's look at these equity markets. we are joined by gargi chaudhuri. i am curious how you are thinking about some of these other cautious calls on u.s. equities. do you agree? gargi: thank you for having me. i

we have the start of cash equity trading.ncine lacqua and tom mackenzie will walk you through that. futures coming in lower this morning. this is bloomberg. ♪ francine: welcome back to the european market open, everyone. i'm francine lacqua london with tom mackenzie. tom: your top stories, germany decides. the polls narrow as candidates invited take over from chancellor angela merkel. silence from evergrande. the developer has yet to make any announcement on a dollar note coupon due yesterday. european banks raced to assure markets their exposure is limited. and the white house ways invoking a defense law to force companies to provide data on semiconductor sales. we'll get the latest on the chip crunch. francine: happy friday. let's look at the futures, 10 seconds away from the market open, euro stocks futures open, quite a week, all about evergrande still at the forefront. markets although -- are a little bit easier, banks trying to reassure their clients about it. wind is also picking up here in the u.k. next week, which me

that bodes well for equities. this is what equity markets thrive on. guy: do european equities upper form because the ecb is going to stay dovish for longer than the fed? >> that could happen. i think the fed is further ahead than the ecb. we think somewhere in november there will be mentioning that is implemented the month after. behind that, it will not do anything that soon and i think you still have this tailwind for european equities. alix: where in cyclicals you want to go? maarten: i think we have seen weakness and materials over the last two months. they kind of traded sideways or lower. materials have been affected by the fact that there was worries about chinese growth and the strong measures that china takes whenever there is a covid case. that kind of disrupts many things. i think we will see a gradual improvement. we will look at that and price action as well. china is going to come up with some benefits for smaller or medium-sized companies and more infrastructure spending. these things will bode well for european material stocks. after h

you see equities higher by the end of the year.: again, good to have you with us this morning. there's lots of notes. we can pick some of them. citigroup said we are more likely to see a 20% pullback then it 1% rally. it's not their base case but i want to get a sense from you. bond yields at 1.5%. i don't think that's enough to invoke a 20% drawdown. what could push us beyond healthy 5% drawdown? what is a healthy number for the ups team? nick: sure. i agree with you. i think 150 on the 10 year treasury is not enough to really cause difficulties. if you look at the 30 year average, it is close to 4%. we are still in a world of ultra low interest rates in the u.s.. of course, here in europe. all for cash and government bonds. for us, the context that could become more concerning would be the speed of the move. not only the level -- we see 10 year treasuries at 180 by the end of the year. if we see the -- more than 40 basis points a month, that would be starting to be problematic for equities. the speed of the move is important as w

european equity market futures point higher.oldman is the latest out with a warning about europe's upcoming winter. they may see the industrial sector first to curtail -- forced to curtail. our guest, very nice to have you with us. we have seen a little bit of retrenchment in those surging gas prices that are still very elevated. how concerned are you that this kind of strength in commodity prices will slow down the recovery? >> thank you for having me this morning and good morning, everyone. we are not very worried at the time being. italy and france try to reduce the high-energy price, just introducing a cut to prices another consumer. i think this kind of intervention another consumer overall. [indiscernible] mark: good morning. governments are starting to be very proactive in terms of helping the consumer supporting that side. i agree that it may not be the big economic impact, but are there certain industries and corporations that are under-hedged and risk is underpriced or do you think all our affecting the gas prices we h

and that is on global equity markets.il is a bigger problem than gas. there's plenty of it. dani: as you were talking about and as we heard from others, it is the under-investment that is constantly weighing on the price of oil. we are going to be talking about that coming up next. manus: we have bumped off the $80 level, heavenly? the build in u.s. -- for the first time in weeks. this is bloomberg. ♪ >> good morning from bloomberg's european headquarters. it is six: 30 a.m. in the city of london. i am dani burger alongside manus cranny in dubai. this is "bloomberg daybreak: europe." janet yellen warns of catastrophe. u.s. stocks suffered their worst drought -- rout since may. a dangerous man. senator elizabeth warren launches an attack on powell. plus. >> do we expect shortages in europe? at the end, it's a matter of, you know, is price. such high prices. >> the power crisis escalates from europe to china. industrial price powers using the crunch. manus, happy middle of the week to you. we are almost there but we have a

equity markets slightly positive.retary allen and chairman powell testifying on capitol hill tomorrow. from new york city, this is "bloomberg surveillance." ♪ 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? jonathan: three days of gains for the s&p 500. what a week we had last week. finished in positive territory, something i have been asking, an example of a complacent market or a resilient one. equity features by up .1%. the nasdaq the other way. down 46. is this because of the bond market? pushing 1% on fives. the belly of the curve. we need to be asking a very simple question -- if we get a tightening cycle at some point starting next year, how loose will that tightening cycle be? that is

does the yield mystery support equities or create raider uncertainty for equities?do not think there is such a big disconnect between the two. the end point of the hiking cycle, the market has taken down that number significantly. the fed is only hiking to 1.5%. that is a very bullish environment for risk assets. i am less concerned about the fed aspect and more conservative growth slows down. that is something the bond market has priced for but the equity market is not. i see it more as a growth concern rather than affect concern. tom: one final question. tell me about the x axis duration. i know we go out to december and taper. to these begin to extend out yield angst to the middle of 2020 if not later. priya: in terms of when we think rates will rise? it also depends on the fiscal side. if we get a $3.5 trillion were 2 trillion or as senator manchin says nothing, that is key. if the fed starts to taper there's lot of supply risk. i think a gradual rate rise starting at the end of the year -- tom: do you and jim o'sullivan, congratulations. we greatly appreciate y

we will start with equities. he says u.s. to the rest of the world will eventually come to an end. he says he sees opportunities in europe. . he has bought european equities for the first time in forever, he says. he has been avoiding emerging-market equities but he says he could reconsider that decision if the dollar continues or breaks through that downtrend. speaking of the dollar, he is now neutral on the dollar. we know he has been a long time bear. he sticks to the bearish call on a long-term timeframe. bonds, he has noted specifically that downward trend in the 30 year yield. he really speaks to this idea of don't fight the fed mantra. he says if the fed continues to support the long end, they are going to struggle to push past the 2% mark. tom: ritika gupta breaking down the latest comments from jeffrey gundlach saying he favors european equities out longer-term, he is bearish on the u.s. dollar. it would be a positive if that comes to the fore. the debate continues, it's not down to you, but what you are seeing in te

your equity market this thursday morning advancing 12 points, up by 0.3%.with a lift, up a single basis point to 1.3237%. euro-dollar breaking down below $1.16. we are -0.2%. this morning once again, dollar strength. tom: and the resiliency of the american economy getting through this pandemic. all that fiscal stimulus into the calculus of what we do in economics, finance, and investment. right now we consider washington with someone who is steeped in what infrastructure can do. katherine clark is the assistant speaker of the house. she represents the fifth district of the commonwealth of massachusetts, and is adjacent to the most successful infrastructure project ever done. kathy clark, i stood in boston in abject awe and looked across the torn down southeast expressway in a north end i had never seen in my life area can we bring that infrastructure success to the rest of america? rep. clark: we are going to do just that. that project, the big dig, shows us what we can do. not only create good jobs, improve our roads and bridges, but also reconnect communi

our equities reporter, thank you.he story, m&a activity -- talks over the weekend about deals in that space. a few minutes to go until the start of the cash equity trading day. the futures picture looks increasingly positive. both u.s. and europe. mark: it has improved in the last hour but it reflects the theme of last week. u.s. equity futures were trading ok. they were up most days. and every day the u.s. session was taking them lower. it is a new dynamic since the jobs data. it might reflect a change in sentiment in the u.s. i would not read too much into the strength that we are seeing in futures. it is notable that we are seeing a little positivity in the asia session. the negative stories of those today are the china stories. it is about what the chinese government is doing to the tech companies and the local covid potential lockdown there. anna: i'm sure it is not anything we are doing or saying. the u.s. tax story -- will that be taken as a positive at the margins? mark: i think so. i don't think it will domin

equities to underway. less so as morgan stanley was making the point that we've seen the worst of this. we have seen the worst of it for the economy and for the virus. kailey: she seems to think the month of september will turn out ok from a labor market point of view. the team making the case we won't have a lot of -- that doesn't mean we won't have a lot of volatility at play through the end of october. we are talking about just the economic risk factors, they are also talking about policy risk both in terms of monetary policy and fiscal policy and what the jonathan: legislative agenda will look like. jonathan: what is the policy risk right now? what are they talking about? anticipating now for the next several months. kailey: there's a question of whether it's a new risk. we know the tapir is coming. it's a question of timing. maybe that uncertainty breeds more uncertainty. that may be more of what morgan stanley is pointing to. i think a relatively underappreciated risk and uncertainty for the past sev

equities will continue to outperform. tom: with that optimistic tone on the american stock market, how do you as a bond guy respond to equity stratus's -- equity strategists basing their call to a heavy waiting on central bank and bond dynamics? david: i think what we've seen within the equity market is what is going on under the hood. i think equity investors, obviously the bond market matters a lot, particularly for the relative performance of growth, long-duration growth stocks, u.s. tech versus value. i think that real rates are too low in the u.s. i think part of that is due to the distortions created by the fed and its purchases of tips. once the fed does start to taper , we will see real rates move higher. that is going to be in the short-term, at least, a headwind for growth stocks, and therefore a headwind for some of the headline s&p and headline equity indices. but you asked over the medium-term where what i place my bets as to who is going to sustain the recovery and avoid being sucked back into secular stagna

your equity market bouncing back .9%.me to watch, news and the last couple minutes come on uber. kailey: uber is now tracking toward an adjusted break even in the third quarter. that would be the first ever third quarter profit for this company. it once reported a quarter loss of $5.2 billion are merely due to a gross bookings recovery as we emerge from the pandemic care. you see a big spike in the share of free market trading shares up at the bell at the moment. jon: news out of j&j as well. let me bring it to our audience, from our colleague, a booster does of j&j's covid-19 vaccine provided 100% protection against severe disease when given to month after the person i collation according to widely anticipated data that suggested it increases the potent of the one-time shot. a bit more news on the vaccine front. tom: and what is important there is the drip of it. there are real worries, that are tangible, we are up to the deaths in the pandemic we saw in 1918 and that is an important statistic. far more is this story, th

alix: let's get deeper into european equities. walk us through the destruction in the equity markets. >> as you said earlier and piggybacking from eddy, there are a lot of narratives equity markets are looking at and thinking it is time to sell. you have the evergrande exposure. the function gives you the average volume at a given hour. in the last 128 days, we have about 40% of the volume coming in today and double that the last 30 days. the reason is the exposure. insurance and banking to the property market in china. and you have the fed coming up as well. guy: that is a key subject for the rest of the week. will the markets change the narrative for the fed? thank you very much. another key event this week, central bank decisions. the big one is the fed. there's a raft of central banks set to report this week. alix: 13. guy: which may be unlucky. we will wait and see. we are watching closely what will happen. do you think they are putting half an eye on the markets, the story around evergrande? do you think this will influence