absolutely, a great start for europe. we will- great start for europe.ther sport stories and... tommy fleetwood shot a third round of 67, which included five birdies, to remain in contention at the italian 0pen. that means he's one shot off the lead — held by nicolai hoejgaard — going into tomorrow's final round. french rider clement champoussin won the penultimate stage of the vuelta a espana. but with primoz roglic right behind him it looks like the slovenian will retain his title with a lead of more than two and a half minutes going into the final time trial. britain's adam yates is up to fourth and will be hunting a podium finish tomorrow. and annemiek van vleuten won stage three of the women's vuelta to claim the 85th victory of her professional career. the dutch woman beat marlen reusser by more than a minute and a half to take the overall lead with one stage to go. it's magic weekend in rugby league and castleford kicked things off with a hard fought victory over salford at st james' park, 29 points to 18. st helens are currently in action against

it's not just a problem for europe. the rest of the world could go without as rich countries calling the market in a similar way to vaccines. this year alone, new york natural gas futures are up 106 percent to a high of $5.20 for $1000000.00 british thermal units. its highest in more than 7 years was the equivalent gas in europe and asian markets costs $25.00 for $1000000.00 british thermal units. storage sites a less than 72 percent for that's the lowest in a decade. or knock on effects. a huge cf industries holdings, one of the world's biggest fertilizer groups has been forced to close to plants in the u. k sparking fears of a looming shortage of ammonium nitrate that could hit food supplies and a shortage of carbon dioxide production could hit the meat to soft drinks industry . what gas is also used to power electricity generation. unsurprisingly, prices of soaring in that market to several energy suppliers have already collapsed in the u. k. governments across europe preparing to hand up money to households to cover

just let us in europe are low. we're venue in these period of the year high that the new winter season and lot of concern for annually and traders because people now expect a potential gas crunch in the winter should. temperatures be better. you know, you're also arguing that the way in which the european gas market is structured is, is also a fault here. why is that? well, over the last years, the european got the market at become a more modern, let's say it moved from a traditional structure of oil indexation in gas contract to a spot market. 80 percent of the european got to be traded on the spot market disease. of course, giving great flexibility to the market is a good thing, but in this particular condition, it's for they're adding pressure on the situation because europe is not the longer the work, asia is demanding a lot of n and g and the economic recovery. these also have been in asia and therefore europe as to pay more and more for the gas it was to get. and the 2nd suppliers, like russia, for example, t

how europe getting on?sr often in these matches we walls. how europe getting on? srs often in these matches we talk about the importance of momentum and certain is with europe at the moment. that was a flying start for them to take the morning session 3.5 points to a half, charley harlot with her record to her career and now... into the afternoon, europe head with three out of four matches, donein head with three out of four matches, done in one. the match they are trailing in, nelly korda and ewing trailing in, nelly korda and ewing trailing after eight holes... but other three matches europe are ahead and with a little daylight as well in each of those three matches they lead two holes.— lead two holes. brilliant, an impressive _ lead two holes. brilliant, an impressive start _ lead two holes. brilliant, an impressive start for - lead two holes. brilliant, an impressive start for europe. lead two holes. brilliant, an - impressive start for europe. ian carter, in ohio, thank you. after the disappointing wa

is sidelining europe when it comes to its defense policy. what does europe need to do next?o rely on trade or does europe need other prongs in terms of positioning itself on the geopolitical stage? cecilia: europe needs to be a much bigger geopolitical player. the eu is important for the economy and investment and also creating alliances and other forms of cooperation. all three chancellor candidates are in favor of european army to be created. something that could complement nato. that discussion is ongoing in germany. then how you can expand your foreign policy to have even more influence. germany is more cautious is natural because of the history. these are issues france and germany are discussing where there's been more of a back holding road from the german side, and especially the last days event when we accelerate the events. first, the need for a new government in germany. alix: cecilia malmstrom, former eu trade commissioner. we appreciate your time. this is bloomberg. ♪ alix: coming up, we were just talking about it. the final german election debate. plus city meet

and europe trading hours.: are you basically saying that this announcement is part of the evergrande response? meltem: there is certainly a linkage. they are concerned about stemming. guy: great stuff. thank you very much indeed. the coin shares chief strategy officer. alix steel got it right. i got it wrong. alix: that never, ever happens. i will take a moment and do a victory dance. [laughter] guy: you have done the dance. this is good. 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. guy: we are wrapping up a week in europe like we started but not quite so bad. europe is trading down t

can you convince me that europe has a common position?at the eu will be one of the leaders of this climate agenda. the green new deal is probably the most ambitious throughout the world. we're very, i think, aware of the need to undertake these changes in the coming decades. we have no time to lose if we think about the young, future generations. from this point of view, also, spain is strongly committed, so we have to ensure... spain is, but what about poland, for example? it's refused to sign up to some of the big commitments made from brussels. no, actually, i think that, you know, what we have seen in the last couple of years is, and in the context of these recovery plans, and when we are talking about investment in the transition in order to make it a fair transition, i do think that poland and other countries that have been very reluctant are definitely making progress. well, unless you know more than i do, the poles have simply refused to sign up to the net zero by 2050 commitment. they just won't accept it. well, there are a numbe

battle lines drawn in europe. finance ministers diverge on whether spending limit should be imposed. u.k. growth grinding to a heart as the delta variant hits the reopening and consumer spending stories. today we are down a little. we are down by .2%. it has been a flat week, that is the best way of describing it, in aggregate, with a lot to talk about europe outperforming we already have seen that. crude caching a bed. up by 1.8%. alix: all metals catching a bid. we were talking about national gas, aluminum, getting a pop and upgrade. nickel moving higher helping the s&p materials sector, the outperformer. when -- after that you get infotech, consumer discretionary and communications doing well within the s&p. the overall indices lose a little bit of steam and it is basically one area that is helping to uplift the market. bond yields are moving a little bit higher. i do want to highlight the golden dragon index, that is the china listed adr's in the u.s. up point 3%. the headline that just crossed is that the bid

and europe.u.s., you had a commitment to purchase exactly the same amount every month into this is a clear-cut commitment. tapering means something. in europe, their flexibility. >> the inflation situation in europe is different from the united states. when the covid shot came, the country was not performing well. there is a lot of slack in the economy. it was too low. it is a visible, different situation from the u.s.. >> it is a short-term blip in inflation we are seeing right now. the hawkish members among others, the one for my own country, once again to short-term focused, not looking through the volatility of the data which we think the ecb at large will do. >> there will be something vocal , which is to be expected. new guidance, new outlook for a very long time before they are ready. >> we need to watch the dove to see if they are switching. even though they could very well be a reduction in the purchases, that is this week, i don't think it is going to do anything else but stressed the d

meaning that you have fewer shipment traveling to europe from guitar. so as shipments of gas have turned from europe towards china, so the pipeline gas year from russia has failed to make up that shortfall. russia has been slow to deliver the pipe natural gas to the region, which raises a lot of questions on whether this may be a deliberate move to bolster in case we're starting close the the noise stream to pipeline. now, octavio, there's a lot of concern that the storing energy prices we're seeing across europe will make in place and even worse now, while proposed aid packages may actually help consumers pay the higher prices. how do they impact inflation? well, i think just a mathematical certainty, the high energy price of 9 gas prices have lead to high inflation numbers. and you can see that very, very clearly in the inflation numbers for all that came out a few weeks. so inflation, you're paying present. now if you take energy out of that, you basically hop the europe innovation, break that down to $1.00. so that mean energy prices in particular,

this is "daybreak: europe." ecb policy makers sparring over ending stimulus amid a rise in inflation. stocks are mixed as we position for the u.s. jobs report. chinese taxpayers some gains as ride-hailing companies come under criticism. we will hear from president xi jinping. opec plus sticks with plans to supply hikes. perspective from -- of energy aspects. i want to bring your attention to the positioning of two of the biggest, most important central banks. a terminal chart showing what is happening, in terms of a yield differential narrowing between the pboc and the fed. when it comes to the benchmark, the u.s. 10 year and chinese 10 year. chinese 10 year 280. the u.s. 10 year at 130. not near the 70 highs we got earlier for the u.s. 10 year. but those of you coagulating coming to the idea that 150 is what you get come the end of the year. china is different. pboc pumping about $40 billion to $50 billion into its banking system to support sme's. that is playing into the bond space. 280 on the u.s. benchmark.

and asia into _ supply—chain comes from europe and asia into europe, and that is bogged down _ asiabogged down by the necessary import bureaucracy at our ports of entry. the antithesis is also true, so the stuff— the antithesis is also true, so the stuff we _ the antithesis is also true, so the stuff we sell into europe, which there _ stuff we sell into europe, which there is— stuff we sell into europe, which there is a — stuff we sell into europe, which there is a lot more then we get credit— there is a lot more then we get credit for. _ there is a lot more then we get credit for, that has the same issue in europe — credit for, that has the same issue in europe and after germany told france _ in europe and after germany told france to— in europe and after germany told france to get back in its box and allow— france to get back in its box and allow this— france to get back in its box and allow this to happen, then it seems to be _ allow this to happen, then it seems to be working quite well. but coming into us, _ to be working quite well. but coming into us, we _ to be working quite

anna: coming, europe's energy.nments get ready to step in as prices keep breaking new records. ♪ >> this is going faster than we thought, to the point where we will have pre-covid-19 levels before the end of the year, 2021. we anticipated it would be early 2022 at best. anna: christine lagarde there. more from that conversation throughout the day. europe is in the midst of an energy supply crunch as prices spiked to record highs. low fossil fuel inventories and weak winds have pushed gas prices to unprecedented levels. incredible charts around the gas market. italy, france, and spain are all considering ways to ease the impact on consumers' electricity bills. for more, bloomberg's energy reporter. good to have you with us given how much focus there should be and probably will be on the story. european gas prices have surged to record highs, but this might not be over. can they go higher from here? >> as you say, we are seeing almost every day and new all-time record high being set. european prices have surged so mu

this is "bloomberg daybreak: europe." president biden and president xi speak on the phone a med u.s. frustration over dead-end talks with china. global stocks tick higher. the ecb slows the pace a bond buying but christine lagarde insists it is not a move to wind down emergency stimulus. biden's vaccine mandate, he calls the unvaccinated a threat, and requires shots for federal workers, and pledging new rules for larger private firms. the presidents of the largest economies in the world picking up the phone for the second time to talk things through. there has been an impasse on how things are progressing with conversations at the highest levels. we have a chart showing what is happening on the trade front. xf:when president trump was in office, they wanted to reduce china's surplus with the u.s. that has not happened, the export machine in china firing on all cylinders. you saw that with the august data. almost $295 billion of exports, the biggest market remains the united states despite tariffs on hundreds of billions o

so i think that, you know, europe doesn't have this kind of. the goober is laying back and thinking time is far away. it's happening right here in their own neighborhood. while you spoke there a little bit about the context of the u. s. while pulling out and pulling back in certain parts of the world, particularly obviously in afghanistan over the last few weeks. david, this was always a us lead mission. know that started with counter terrorism, became nation building. really, the europeans were always there because of national article 5 out of solidarity with the u. s. so because this was always a washington initiative. why is it that you feel quite so betrayed at the moment? well, it's a good question. i think it's because of the way in which the withdrawal was announced, it was set out that the press there wasn't really, you know, there was consultations on an eventual withdrawal. i think. but i don't think there was consultations on the way the, the timeframe that withdrawal would occur, that it occurred over the summer that caused a lot of

now if you take energy out of that, you basically hop the europe innovation down to $1.00. so that mean energy prices in particular, natural gas which went up about 15, but just in august, a driving inflection more than anything else in europe. so the prices of the place and food and vehicles and reynolds and things. and that's all because subdued rate . energy is when you're striving natural gas. so it's a councilman, half of the place level in the european continent that's quite strong to see that. and i probably, you know, a lot of times when we talk about cor inflation versus overall inflation, we take those energy and food prices out. and that's because energy obviously fluctuate as demand fluctuate due to different season. but in this situation, when we're actually looking at kind of a shortage, should that we take more into account in inflation when you're trying to kind of decide policy based on that? well, i think policymakers like to take any price is going to make it look like reflection on there's a lot increasing this quickly reality. so yes, once you take out

at the moment we can see europe to u- in him. at the moment we can see europe to up in the _ him.moment we can see europe to up in the four — him. at the moment we can see europe to up in the four balls. _ him. at the moment we can see europe to up in the four balls. what _ him. at the moment we can see europe to up in the four balls. what they - to up in the four balls. what they need to do? if to up in the four balls. what they need to do?— need to do? if they can win the afternoon's _ need to do? if they can win the afternoon's session, _ need to do? if they can win the afternoon's session, they - need to do? if they can win the afternoon's session, they are l need to do? if they can win the l afternoon's session, they are up, though early on, they have to win the session 3—1 minimum, i would say, and then they have got half a chance. that would leave them at the same stage going into the singles as it was, so still a monumental task. this american team is very highly ranked. �* , ._ ~ this american team is very highly ranked. �* , . ., ., ranked. i'm playing well. we had a mir

on that front, europe has done quite well. we have over 70% of the adult population that is completely vaccinated in the euro area, and some countries are in excess of 80%. that has been a significant boost for growth and has helped governments not go back to these stringent containment measures we had seen previously. david: during covid, were you working remotely, running the bank from one of your homes or from a home somewhere, or were you going into the office? ms. lagarde: i spent quite a few weeks stuck in my frankfurt apartment during the first wave of covid. the very sizable package we put together for monetary policy purposes was engineered around my kitchen table. subsequently when funding was more flexible, and we could move out, i went to the office a bit. but the by default solution is remote working still today, and probably until the end of january, and then we will see. david: you should take that kitchen table and move it to your office. it was very productive, right? [laughter] post-covid, do you expect europ

and it's not a question of going to china. china is coming to europe. they have invested in over 10 percent of european ports. we've seen russia, china maritime exercises in the mediterranean, in the baltic. we've seen lots fire exercises with them off the coast of clinical, near clinic grad. so i think that, you know, europe doesn't have this kind of the goober is laying back and thinking china's far away. it's happening right here in their own neighborhood. while you spoke there a little bit about the context of the u. s. while pulling out and pulling back in certain parts of the world, particularly obviously in afghanistan over the last few weeks. david, this was always a us lead mission though that started with counter terrorism, became nation building. really, the europeans were always there because of natural law, school 5 out of solidarity with the u. s. so because this was always a washington initiative. why is it that you feel quite so betrayed at the moment? well, it's a good question. i think it's because of the way in which the withdrawal wa

what you need to know out of europe?here was a fired shot between a key cable between english -- england and france. soaring gas prices. european utilities dropping sharply. also under pressure, beijing is putting restrictions on casino operators in macau. all down. opec and its rivals are struggling. we will break down those numbers, with an analyst, a little later. european equities are off. what we are seeing in the headlines is a luxury sector. you have european generators and utilities down. there is chaos in the european power market. you can see that, and take a look at u.k. gas prices. they are up sharply. they are off their earlier highs, but they continue to move upwards. alix: that is why i said it is all about energy. it is all about u.k. gas and power prices. the nasdaq 100 is trying to hold onto its gains, in part because microsoft is up over 1%. it is trying to perform a buyback of $60 billion in stock. get it in now before they do. there restrictions over in china -- resources are getting totally pummeled

really the epicenter in europe. in days past, maybe europe would look to the u.s.or a little bit of help. at least the energy industry here is in no position to actually really do much of anything. taylor: friday at 1:00 p.m., our long-awaited breakdown, but i know you are itching. every time it comes out. it sort of brings up a bigger issue, which is how can the u.s. bailout other people when we ourselves have not quite figured out the correct supply and demand dynamics as well. oil and gas rig counts as well, it has been on a slowly long-term projection a little bit of a decline. let's do all of this and more with campbell faulkner, the chief data land -- the chief data analyst. he formally worked in data analysis at jp morgan. equipped to help us address maybe risks on the horizon and how are you thinking about the u.s. as an lng, nat gas exporter. but already a pretty low count here to begin with. campbell: it is tough. the rig count has been trending down. we have replaced rigs with more efficient rigs but we are just not really drilling. we had 99 last week.

for europe, there is still a threat from china. that is seen clearly.should not be trapped into going to a chinese owned mine or porsche in africa or -- port in africa or wherever. some have said defensively, they have troops that add up to me the equivalent of the china news. -- chinese. i attended there is summit three years ago at which, the chinese prime minister astonished everyone by saying that china favors european integration. they want a single currency which shows you can be nice to the people you are listing. it is a complex situation but not a hard-core on in terms of is this for america. one thing that is happening and you have alluded to it is a quest for relevance and credibility. we have the eu picking up something davis said that people want to put in eu flag on everything. they are under pressure to deliver for the systems and one of the things it feels it should be able to be better on is physical hard security. that is part of what is driving this conversation. natassia: i see that you are agreeing with nicholas. in terms of relevan

and it is about europe itself. so i think we need to be very mindful also of the interest of our allies in the region here in europe. i've given you say that what are the implications of this open august packed when it comes to europe's own security future? that is what we are going to have to look at over the next 18 months. how exactly the going to shape up? how much of a compliment is possible? how much bye, and it's possible going to be supported in general, a stable and secure in the pacific region is in europe interest. so how can you support these methods? how can technology cooperation be supported? how can cooperation between part that's in the region and that includes japan, australia, india, even foster, even more. this is in europe interest in general. so also the quad meeting, looking onto it. this is something that is not against europe in any sort of fashion, but stabilizing the region and pushing back against funding. that is something that is very much to europe and interest. it is clear that the u

the necessity of moving forward in europe for europe is a very diverse country. so i think you can actually expect a lot of continuity and say that there's a recognition that there's a need to change the specific policies to deal with that changed or not really clear. and everybody, for instance, thinks that this policy needed to deal with climate change was ready to emissions every exactly the mechanism by which that's going to be achieved because it's going to be on popular. i think putting up gasoline prices will bring up heating prices and you saw the reaction against that in france with julie shawn. so there's a lot of debates in the coming weeks and months since the government is formed about exactly how that strategy is going to be implemented. you know, mad, one of the interesting things we look at the, the 2 major voting blocks in 2017, it was different. now that we see that miracles blocking took a slight electoral defeat here. but i don't see that, you know, again we've, we've mentioned the u. s. in france and all that, it's not so contentious. i mean,

europe know they are right up starts. europe know they are right up against her.on't be the favourites here. they are the underdogs are up against what is a strong us team and of course a partisan crowd.— of course a partisan crowd. andy, thank you very much. the australian prime minister has said there will be "no special deals" to allow the families of england cricketers to travel for the ashes. some england players are considering pulling out because of australia's strict covid—19 travel protocols. it's after british prime minister boris johnson discussed the issue with scott morrison at a dinner in washington. morrison said... australia plans to ease restrictions once 80% of adults are vaccinated, morrison says that figure will reach 50% this week. the first test is scheduled to begin on the 8th of december. earlier i spoke to the bbc�*s cricket correspondentjonathan agnew and began by asking him how many players he anticipated might consider pulling out? ifi if i knew that i would be a wealthy man. it's too difficult to say the moment of speaking to a number

what do you need to know out of europe?hat we are watching is energy prices continuing to absolutely shoot higher. gas and electricity prices surging in europe. power prices in the u.k. hitting another record today. benchmark german price is trading above 100 euros, the first time that has ever happened. u.k. regulators recommending 12 to 15-year-olds get a first shot of the pfizer vaccine. the latest polls out of germany. we will be live in berlin with a breakdown of this weekends debate. let's talk markets and show you what is happening. keep an eye on what is happening with that gas price around europe. today another 5% higher. take a look at the long-term chart. it has gone parabolic. stocks a little bit positive today. we had five days down. we are buying the dip a little bit here in europe. it was a little while before people stepped back in again cautiously. maybe some buying coming back. alix: same thing in the u.s. five down days for the s&p, now higher in part because of energy, up about 3%. all of the best perfor

europe does not have much of that. we are going to see the rebalancing of the dax which could pull in some of that growth and make it less cyclical. they will expand the dax to 14 and pool in some of those names. at the margin it may give europe an opportunity to talk about growth. we will see what happens later on. we will get the announcement later this evening. the performance looks good. tech has been the dividing line between the united states and europe. kailey: let's get more insight into that rebalancing. we are joined by bloomberg's jp barnett. talking about the growth we could see in the dax. what name specifically will bring that? jp: there are a couple of them. two i like our technology stocks and that we have food delivery stocks. we also have different kind of technology companies coming in and the server -- in the form of siemens health. technology and health care equipment. that is something that could enrich the index which in germany's very industrial heavy with big companies like siemens and also foc

it is "daybreak: europe." germany in limbo. experts warned we could see months of coalition wrangling as yesterday's elections leave the spd's olaf scholz inches ahead of the cdu. the evergrande fallout spreads. investors join thousands of chinese households demanding on the back from the embeddable -- embattled developer. plus, the energy crisis goes global. the u.k. considers drafting the army to get fuel to petrol stations. chinese homes to cut back power usage. good morning. there is a smorgasbord of risk to hit these markets. you and i grappled with the dominant narrative -- is it evergrande, the fuel crisis, is it a fast fed paper -- taper? or is there a global re-rating of rates? good morning. dani: good morning. i would say if you look at all of those, you could make the argument that rates is the least. energy is going to be short-lived, rates is a global market move. we have central banks in coordination starting to tighten policy. manus: absolutely. the new bond market tantrum. yes, the fed must tighten first, that's

europe at the eurasia group. could start by going over relatively recent old ground, france has said it has been stabbed in the back. what on earth were these allies thinking? were they not thinking at all? was this a deliberate ploy to keep france in the dark or apolitical snafu? guest: i think you're just will be able to speak to how the french perceives what happened. the reaction from paris is driven by four factors, trust and integrity between allies, and that clearly in this instance was not the case. friends does have substantive interest in the indo pacific region. this disagreement cuts across in a direct way. the political economy angle, the loss of the contract, i think that is not as important a factor driving is reaction. it is a feature macron needed to get out on the front foot and certainly speak to public opinion from his side, but i do not think the reaction was intimated by domestic politics, but how the french feel in terms of what allies were doing, it is a combination of opportunism on the u

it is "daybreak: europe." ever crisis escalates, and the developer -- evergrande's crisis escalates. treasuries steady ahead of u.s. inflation data. investors look for any clues on the fed's taper timeline. plus, a boost for the u.k. prime minister, set to confirm third round vaccinations for the most honorable -- most vulnerable. this as the u.k. faces a perfect storm in the labor market. good morning. tom, i think i have peak growth, peak recovery, but jp morgan going for peak delta with a big impact on markets. good morning. tom: good morning. this is the quote from that call by jp morgan and the team, as delta subsides, and inflation persists due to supply frictions from reopening and accommodative monetary policy, we expect the reflation opening trade to resume its outperformance. bond deals and cyclicals likely bottomed last month, that was in the call as well. manus: yep, he is in a risk on mood and he says we are going to move higher. he does not think we are going to be in for a var shock. waiting for

this is about europe reopening, u.k.appling with rolling lockdowns on the asia-pacific side. the online side looks good. delta of 36%. will you ever go back to a shop? tom: that transition, right? some of this is disposable fashion. i'm trying to stay clear of that. when the paycheck starts to run down, i will be tempted. for now, i will leave that to you. manus: fast fashion. there's a woman in this organization who doesn't do fast fashion. it's juliette saly. good morning. juliette: good morning. north korea has testfired what appears to be to ballistic missiles in pyongyang's second major weapon test. japan detected two projectiles that landed outside of its exclusive economic zone. north korea fired off new come along lane -- long-range cruise missiles. voters in california have rejected a recall of governor gavin newsom. 68% of voters in a special election responded no to the ballot question asking if the democrats should be removed. this according to the secretary of state's office with about 17% of votes counted.

this is europe on al jazeera. my connie court is that the 20th century, whose lives were intertwined from outcasts who found an artistic connection in 194010 jane duce, the both of them were lost. children to a battle of words, against the backdrop of julian war, independence was helpless stories of complex relationships that spot created really, really a north africa, analogies era. what's most important to me is talking to people, understanding what they're going through here. it just, we believe everyone has a story we're hearing. ah, hello, i'm down jordan in dough with a quick reminder of the top stories here on out. here are the us special envoy. a haiti has resigned what he calls the inhumane treatment of haitian migrants by the us government. in a statement, daniel foot said the policy of deporting thousands of migrants and refugees is counter productive and deeply flawed. deportations have been criticized and members of president jo biden's democratic party shall.

results that suggests that the spd is likely in the lead to form the next coalition government to run europe'sargest economy, but the leader of the cdu csu not quite giving up yet at this stage although armin laschet has admitted disappointment at the block's worst showing since 1949 but he has vowed the race is still not over. >> translator: we'll do everything we can to form a government under the union's leadership because germany leads a leader for the future that modernizes our country. >> so the green and the liberal party, the fdp are clearly the king makers in these upcoming negotiations the coalition talks are about to start. paving the way for the first three-party coalition here in germany since the 1950s. >> translator: this federal election gives the fdp a special responsibility we do not underestimate the challenges >> translator: we have a mandate not only for future generations but you can sense this country needs renewal. >>> evergrande's unit tumbles in hong kong. while investors look ahead to another bond payment deadline on wednesday. >>> and the uk considers calling in the

this is "daybreak: europe." energy crisis, gas prices continue to soar in the midst of supply shortages. analyst worn of blackouts and supply chain help. logistics are in a tailspin. studies show a third dose matches the rate of infection as the vaccine fades over time. ever grand is pervasive in its contagion and its ability to affect everything. they're worried about bad performing loans, worried about growth. good morning, tom mackenzie. tom: this is now the key risk within the chinese market and the chinese economy. what we're seeing today is a bleed across to the rest of the proxy sector. you can see it with the hang seng property index, it is now to five year low. the read across to the rest of the sector, what is the mean for regulators and the broader economy? manus: let's step back for a moment on risk. so far we've seen that ever grand for the moment seems to be a country level risk, not a global risk. we've got to resist the temptation to game the market, despite record highs and instead diversify the

than europe it must be said. it's a bit of a double, we think it is a temporary phenomenon, those base effects will fall out, the bottlenecks will be resolve. the risk is that we don't know the timing of. this it could take some time before those inventories are replenished. what we expect from the e.c.b. is a doveish stance and start to look at purchases there. tom: do you think that's what the austrians and dutch are looking for? they are starting to be concerned about the trajectory of inflation. they think the economy is on a surer footing and are calling for this discussion come september 9. should the market which market assets or which assets will react most significantly do you think to something that looks slightly more hawkish from the e.c.b.? >> i think all central banks of the big central banks and developed markets will take a gradual approach indeed because there is such an -- a low visible as well. you can look at all the data, but ultimately it's an unprecedented period. so therefore gradual appro

christine: this has been the case in europe as well.nequalities in terms of opportunities have been aggravated by covid-19 for the reasons that you mentioned. those people were hit by the pandemic. women, young people, people on temp contracts -- if you look at those who lost their jobs, it is predominantly women and young people in particular in disproportionate amounts. ♪ david: as you look at the european economy today, what would you say is its single biggest challenge and biggest opportunity? christine: implementation is hard. the second difficult area that will need to be tackled is the issue of inequality. covid-19 has aggravated inequality. the third one is climate change. we will have to transition faster than we think, which will am five transition costs, which will imply a change in the overall structure of our economy. those three -- implementation, inequality, and climate change. david: how about brexit? hasn't been better -- has it been better than people thought? christine: the conclusion depends on which side of the chan

the stock europe 600 is gaining. 30 minutes into the session in europe. the u.k.cerned about energy crisis at the moment. over in germany, you can see gains at this stage. the cac is up. we are talking about the geopolitical spac the ecb remains a focus for many investors. the central bank is way up in inflation. in the sectors, how things are breaking down. energy was at the top of the list and utilities were the problem. travel and leisure, 82% so far. at the top of the list. supply chain constraints still at play. you are seeing basic resources down. that is how markets are shaping up 30 minutes into trading. anna: let's get more into the energy crisis. limejump ceo catherine newman joins us. your thoughts on what is driving this and whether you see it coming down anytime soon. catherine: it is unprecedented times. we have low gas coming into the u.k. very low wind output, huge amount of altitude across the board. another two gigawatts disappearing from the u.k. markets, driving prices higher. on tuesday, there was an auction -- a record high. when you compare