i am francine alongside tom mackenzie. embarrassing revelations of their stock trading during the pandemic. treasuries spike. two year yields hit an 18 month high as the five-year tops 1% and fed officials signaled the taper is coming soon. powell and yellen testify later today. brent crude costs $80 a barrel while the global energy crunch continues, sparking further gains in natural gas. we are just under an hour away. futures are holding onto gains. 0.2 -- between 0.2 and 0.3 percent. a similar picture across the board for the s&p futures. the focus is on china. we await more news from evergrande. this is also an energy prices -- crisis. what it means for the recovery. the s&p 500 futures gaining a touch. the futures of the nasdaq unchanged and you are looking at the global macro groups. tom: as you say, it is a question of energy, the yield story, and china as well, the three big elements laying into the market sentiment. a mixed picture across asia. the pboc coming in with another net injection of 15.5 billion u.s. dol

francine? francine: laura wright here in london with me. secretary larry summers says the cryptocurrency and blockchain payments industry will perform better if properly regulated. his comments follow china's latest move two all cryptocurrency -- to ban all cryptocurrency transactions. he said investors should be on guard. he spoke to david westin on "wall street week." >> start with the words crypto. it suggests a desire for secrecy, with respect to large financial sums. we have large financial sums happening in secret. you have risks of money laundering, risks of supporting various kinds of criminal activities, risks of innocent people being ripped off. the truth is that we would not have a viable airplane industry if we did not regulate airline safety. we would not have transportation systems that we do if we did not regulate automobile safety. and ultimately, more blockchain based payments, that industry is going to do better regulated in a sound way rather than trying to be some kind of libertarian paradise. i think the crypto communit

francine: unilever.ort that unilever has a short list of bidders for its tediousness -- tea business. we are waiting to see what the valuation for that business is going to be and once the deal is eventually done, what that money will be used for by unilever. francine: thank you so much. i did not know that they were selling tea. i know a lot of these big giants want to get into the vitamin space. tom: loading up. francine: i would have thought they would be healthy margins. tom: i like what you did there. the tea lobby would come out and say it's good for you as well. the vitamins, they really make a difference. there have been studies looking at vitamin c. heat and orange -- eat an orange. francine: i don't know. i will take anything if it gives me a little bit more sleep or a little bit more energy to look at the markets. it is exactly what we need on bloomberg. the markets yesterday were really off the charts. it was kind of the beginning of something more significant, which is because of supply conc

francine: inflation.s have reached an agreement to fully -- to avoid shutdown of the u.s. government. the debt issue still looms. what can you tell us about the deal that has been reached in the senate? >> it sounds like what is going to happen is that on monday, democrats try to bring forward a big deal that would fund the government through december 3. that was blocked twice by republicans because it included a debt increase. republican said they are not going to back the increase in -- even though they have been done on a bipartisan basis in the past. this time around, they are not going to back it. as long as democrats pursue president biden's agenda. if they strip out the debt limit position and put forward a bill that would just fund the government through december 3, it looks like that will get bipartisan support in the senate. they sent it over to the house, and it may get to joe biden's desk later today. tom: quick movement there on the question of extending the ability for the u.s. to borrow mon

francine: good morning everyone. i'm francine lacqua here in london. here's what's coming up.

francine, tom. francine: thank you so much. us on sunday to bring us special coverage of the german elections. we start at 5:00 p.m. on sunday and we will be live for two hours. up next, we go back to the markets. this is bloomberg. ♪ francine: welcome back to the open. looking up for the moment, it is green. it could change at any moment. the fed was taking it in stride, we have norway at the top. evergrande, i am unsure why people are so cool about it seeing what we saw monday. tom: there is a bit of catch-up, the stock was up today. what is there optimism around this? they made the bond payment, they have come to an agreement. yes, this company continues. this company has gone into all sorts of areas. francine: it was interesting to hear from mark cudmore. it is skating today, i don't know if we should read too much into it. i have been reading about it not, there are things i did not know. they have not sold one single electric car but they had a unit that was valued as much as ford. tom: the unstoppable gallop is how it is

francine: when, when?are saying if, but at some point, something will have to give, even if it's 12, 18 months from now. luke: that's fair. it's all about where the top is. there's a lot of people talking about the top is in. i think it's too early to call for that. we could see top-end inflation coming in in maybe january, february. post a pretty slow growth period in q4 as well, we may be talking about stagflation, but only for a short time. that will be supported for credit. tom: i don't want to add to the dour mood, but we canup do tempo in the next few minutes. but china and the recovery there, it is starting to look pretty wobbly. are markets underestimating the potential impacts of a more pronounced slowdown in china? luke: i don't think they are underestimating it. i have seen a lot of downgrades to china growth over the last couple of days and they are not small downgrades. these are like 100 basis points off their forecast for the full year. still reasonable numbers, but they are coming down pret

francine? francine: angel, thanks so much.ces forcing people all over the world to abandon all hope of owning a home. we've got that story. this is bloomberg. ♪ dani: welcome back to the open, 46 minutes into the treading date and it is a sickly looking day to put it mildly. you have the dax down nearly 2%, easing off some of those losses, down 1.5% for the greater benchmark. but it is more than 1% for all of these. it is a remarkable that the negativity has been kicked off with evergrande. you have been talking about how massive it is. francine: i spoke to kevin after he came on tv and it was $300 billion of liability. if the authorities decide to come in, is not going to be chief. -- cheap. but this is a key week for the markets. it started horribly. dani: usually you get that dip buying. you haven't seen it yet, s&p 500 reaching below the moving average. maybe this is not the week you want to buy the dip given those concerns you are talking about. francine: and if you break it down, a lot at the u.s. and the fed and what we

francine: there you go. tom: solid gains. francine: i can travel.travel, we can travel. november is the timeline. this is huge for the sector. a lot of voices being very supportive of this. we are talking iag now. on the back of that news from the u.s. relaxing those border restrictions for people who are vaccinated. vaccines approved by the who. francine: it means that if you are a chinese tourist, you can travel -- kingfisher. i'm not a terrible diy person, but kingfisher said forecasting higher profits in the fiscal year is the outlook for diy spending improves, and the road i live in west london, it feels like everyone is getting a bathroom redone or some sort of an extension. kingfisher coming out with higher profits, but because they were expecting much more, jeffries is saying the first half would be confident. down some 2.7%. tom: people have some cash in their pockets, redo their houses. staying with the housing space, but a less positive picture, evergrande. fueling concerns of broader contagion. that is after s&p global ratings said the d

francine: happy friday. 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 means the energy crisis could abate a little bit. but it's also about inflation trade. tom: absolutely, futures pointing lower, essentially snapping today, three days of gains across the european market. the spanish ibex opening .4% over here in the u.k., the ftse 100 flat, the boe opening the door yesterday. the possibility of a rate hike come this year, though the traders are pressing forward from may. that's the situation from the boe, a hawkish stance from the central bank. the cac 40 is down .4%, still waiting to see the action on the dax. it is the politics that takes front and center there two days before the election. we'll cut of coalition will be get and what will that mean at of euro

francine: what does it mean for the financial sector?> we have been around 156 years, one of the jobs is to comply with complex laws, sanctions, wherever they are implemented. that complexity has increased. we will navigate that as we have so far, and continue to do so going forward. you have to stay close. it is a complex situation. tom: that was noel quinn, ceo. subscribers can watch the full bloomberg "front row" interview on the terminal. china will ban film stars with incorrect politics, and cap salaries to rein in celebrity fan culture. it is the latest crackdown by xi jinping, targeting tech companies and the property industry. in a separate speech he vowed to set up a new stock exchange in beijing to provide financing to support innovative smaller businesses and the economy. joining us now is eleanor taylor jolidon, co-head swiss & global equity pm, unnion bancaire privee. thank you for joining us. there were multiple different crosswinds through the chinese economy and the equity space, whether it is support by the pboc or this

francine: thank you.e aring, capital economics chief economist, and with us do is eddie van der walt. how bad are some of these going to do in the western hemisphere? blue they be supportive for the markets because central banks are going nowhere? neil: that's a good question, isn't it? are we in that goldilocks situation where economies are still growing, but central bank's are keeping supportive policy in place? we have approached a point now where it is pretty clear that all economies across the western hemisphere are slowing. we have seen that in the data. you saw that with nonfarm payrolls data on friday. we are seeing it in some of the business surveys, too. what is interesting is businesses are beginning to lay the groundwork for scaling asset purchases in the u.s. the easy be meeting coming up on thursday, very interested to hear what policymakers have to say. i suspect they might not want to taper asset purchases. so would got this juxtaposition between the data that has started to soften, the ce

francine: thank you, laura wright.ker of fortnite has filed an appeal after a u.s. court rejected the antitrust lawsuit against apple. the judge does not expect -- except the claims of epic that apple is a monopoly though it says it has participated in anticompetitive behavior. this was epic, sorry for the pond but this was like an epic movie. apple did not play by the rules. >> linked to the 30% cut in sales through fortnite when epic installed its own payment method against the agreement in the app store. almost all of the charges, the judge sided with apple. the one thing the judge did say apple had to do was to allow others to link out to a website in order to let users pay for things in apps -- francine: all right. we can hear you but it is like a robot. it is a very 2021 thing. we will fix the audio. one of the first things china cracked down on was gamy. tom: gaming addiction israel and china. it is a real problem. -- gaming addiction is real in china. it is a real problem. there is also a lot of talent and they

francine: talk to me about the sanctions law.gh what does it mean for the financial sector. noel: one of the jobs of an international bank is to comply with complex laws and sanctions laws wherever they are implemented. that complexity has increased. we will navigate that as we have done so far. i will continue to do so going forward, but you have to stay close. you have to stay close with clients and regulators to understand the requirements and navigate those complexities. it is a complex situation. tom: that was noel quinn, ceo of hsbc speaking to bloomberg exclusively. raj shant, porfolio strategist, jennison associates is still with us. there seems to be a number of different dynamics, what stands out is the slowdown in the growth trajectory. also the regulatory challenges. what is the biggest headwind? raj: i think the rolling lockdowns as a result of the outbreaks of the delta variant, it is a short-term issue. most investors should and would look through that. the policy changes are much more complex. second-guessing what

i am francine alongside tom mackenzie.ing revelations of their stock trading during the pandemic. treasuries spike. two year yields hit an 18 month high as the five-year tops 1% and fed officials signaled the taper is coming soon.

the chief executive officer of the bank spoke to francine. >> we've been around for 156 years.e have faced political tensions. let's be honest. if you want to be an international bank, it can be difficult. i'm not going to deny that. our clients tell us they want us to invest their savings. the demand we have seen over the past crisis, ike the one we just faced, the demand still exists. >> are authorities asking you to choose? >> no. we have to comply with the laws. that's a complex task. i'm not going to pretend it's easy. no one is asking us to choose. we have announced the commitment. the plan is to hire 3000 extra wealth managers. we have already hired 600 of those in the first nine months of the program. we are on track for our target for hiring this year. >> talk to me about hong kong and the sanctions. if it comes through, what does it mean for the financial sector? >> one of the jobs of an international bank is to comply with complex laws and sanctions. that complexity has increased. we will navigate that as we have done so far. you have to stay close. you have to stay

francine: in francine lacqua, and welcome to "bloomberg's front row." talking to noel quinn. the chief executive leading hsbc through its most radical overhaul in years. the expectations are high. noel's predecessor was ousted by a dissatisfied board. this 35 year banking veteran has to show he has the right choice to run the largest bank in europe. >> let's be honest, if you want to be an international bank

francine: good morning, everyone. welcome. i'm francine lacqua in

i am francine lacqua with tom mackenzie. here are your top headlines. debt ceiling fears.len warns of catastrophe including a possible default. treasuries selloff is eased. elizabeth warren launches a blustering attack. jay powell potentially complicating

i'm francine lacqua in london. here is what is coming

haidi: noel quinn speaking with francine lacqua. let's get you to vonnie quin with the first word headlines. >> at least 36 people are now concerned -- confirmed dead across the u.s. northeast after the destructive blow delivered by the remanence of hurricane ida. in new york, record rainfall of more than three inches an hour at its peak cause catastrophic flooding. transport services were paralyzed and people stranded as the state of emergency was declared. in new jersey and maryland, it triggered tornadoes. >> we are in a whole new world. let's be blunt about it. we saw a horrifying storm last night. unlike anything we have seen before. and this is a reality we have to face. unfortunately, the price paid by some new yorkers was horrible and tragic. vonnie: president biden has rebuked the supreme court for what he called an unprecedented assault on women's abortion rights. the justices voted 5-4 to allow a new texas abortion restrictions to take effect. it will effectively ban abortion after six weeks of pregnancy. he ordered the a

guy: francine lacqua in conversation with bank of england governor enter bailey. can hear more on that, the future of global financial centers, by typing live into your bloomberg terminal. tom metcalf joining us. the governor was quite forceful in that conversation. he talked about the risk to financial stability if the eu continued to prevaricate on the decision-making that is required when it comes to clearinghouses. can you just give us a bit more detail on the risks he is alluding to? tom: it is a very interesting rhetoric he's putting out there, as you say, very forceful. essentially what he is saying is that currently, or at least until june 2022 when this agreement expires, pretty much all the clearing in europe can be done through them, but what happens if that agreement is not extended by the eu? because the u.k. has made it clear there willing to make unilateral decision to extended. if you're willing to do trade with eu companies, you would have to do that in the eu. that would take away a big segment of the volume done in the central hub of london

. >> this is "bloomberg surveillance: early edition" with francine lacqua. francine: good morning. in london. energy crisis, gas prices continue to soar.

he is blue man for francine. it is not that she must clear. we're hoarsely, mom, we started, there's a lot of kids to play, so you would just nationally and why it's and i make up my mind to move to russia. i want to leave a country where i was lessons from a nation, racism have we overcome all the racial problems and i for the 1930. no, not at all. if you look at the recent events, all too frustrating and similar to decades past. the situation, i remember like it was yesterday and i asked for help from the police where it was like an emergency. and then i became the victims as 3 police officers grabbed me and just throwing me down on the ground. and i had a bruise in my hand through my arm. i thought they were going to kill me. they're going to shoot me and little by 3 congregation, and it was the work experience of my life that i have probably not want to ever, ever live again. i was so sick and because i, i grew up in a normal or orthodox family. you know, we're not gangsters. you know, no one has a guy and we don't have any hoodie, i thoug

good price, you mentioned that considerably if you go me only know most krisha, his plan is for francine. it is not that she must clear we are hoarsely mom. we started. there's a lot of kids to play, so you want to just nationally and from what i see why it's and i make up my mind to move to russia. i want to leave a country where i was facing discrimination, racism, have we overcome all the racial problems and for the 1930. no. not at all. if you look at the recent isn't all too frustrating a similar to decades past. the situation. i remember like it was yesterday and i asked for help from the police where it was like an emergency. and then i became the victims as 3 police officers grabbed me and just throwing me down on the ground . and i had a bruise in my hand through my arm. i thought they were going to kill me, that they were going to shoot me by heart patient. and often it was the work experience of my life. i was probably not want to ever, ever live again. i was so sick and because i, i grew up in a normal 4th orthodox family. you know, we're not game there is, you know, no one h

footballs governing body is almost 90. percent of countries are in favor of the change. shawnee in francine in capital meeting with footballers and coaches from 6 continents as part of a consultation process. if an agreement can be reached by member association, the new calendar could kick off in 2028th the state, the school of the international much kind of shows us that we have reached summit. it's the current release period for national team football in this particular area. exacerbated by the corporate situation shows us how difficult it is today to, for players to travel from one country to another one, continent to another. it's not, it's not the for the house of the players, it's not good for the competitions. there are too many meaningless matches while the world cup is being played every 4 years since it began in 1934. moscow manager also in virginia, is heading up the feasibility study to see if that can be changed in may 166 of the 211 member countries back the principle of holding the finals every 2 years. many european clubs are against the idea, saying it would put unfair dema

a president. joining francine says the pandemic should fast forward plans to rethink how the global football calendar is organized. i think the nice particular situations that we are living these days with that it is of play a show us that we have to do something. we have to protect the heads of players. we have to save them. some travels. we have, however, as well to protect the national teams, we need to rethink the calendar for mentally and to do this, we need to have a goodwill from everyone. ivory coast have secured a crucial when in their efforts qualifies to be 2022. well, cutting cattle, i strike as sebastian high school, both goals in a c one when it gets cameroon. when puts ivory coast, they qualify and groups, and only group one is we'll go through to see the player from the decide. see, he makes it into the next 2 years finals, south africa on top of group g after a one know when over gone. and janice berg get any teresa funding for the 1st time since they hosted the events back in 2010 and fully one. mercedes announced george russell will partner louis hamilton at next season. t

francine: morgan foster is one of the world's greatest architects. the genius behind our bloomberg headquarters in london carried in the reichstag in germany. what he calls planetary awareness.

tom: that was hsbc's ceo speaking to francine lacqua. full interview first on the bloomberg terminal at 11:00 p.m. london time, and an hour later, you will catch that conversation on bloomberg television, bloomberg radio, along with our other platforms. we are 23 minutes into the european trading day. flat across the benchmarks as we look ahead to producer prices at 11:00 a.m. the key data in the nonfarm payrolls keeping investors. that is out friday. that is the picture across the european trading day. anna: u.s. futures positive. turning to german politics. over three weeks from the election. it will change the political landscape in the european largest economy. now the focus turns to what kind of government, what kind of coalition we could see postelection. maria tadeo joins us in berlin. every few years, we have to become an expert in the flag of jamaica, kenya, germany, many other countries to get the gritty of general policy. which coalition options are gaining traction? >> it is very hard. there's about eight different options, f

francine: norman foster is one of the world's most revered architects.sustainable denied. the genius behind the millenium bridge, the reichstag, and our bloomberg headquarters in london carried in the reichstag in germany. that was the height of space race and inspired him. and what he calls planetary awareness. norman:

claimed the teams english bass players shouldn't have been allowed on the pitch for president john in francine as, as the pandemic, should fast forward plans to rethink how the global foot will calendar is organized . i think the nice particular situations that we are living these days with the release of play show us that we have to do something. we have to protect the heads of players. we have to save them. some travels. we have, however, as well to protect the national teams, we need to rethink the calendar for mentally and to do this, we need to have a goodwill from every one ivory coast secured. a crucial when in their efforts qualify for the 2022 will come in cut. so strike a sebastian high school, both girls and i see when, when it gets come, a rude way. the wind puts on for a back qualifying group and only group when it will go through the plan round. and that will decide who makes it to next is unless to south africa, i'll top of group g after a one know when i've gone in johannesburg, south africa. i mean to reach the funds the 1st time since they hosted the event back in 2010 that t

dentist, she has a lot, harris beating his canadian opponent and strength fee for president johnny francine . it was paid a visit to african refugees in tulsa next year. welcome hosts of health house, around $600.00 refugees in a complex built as official accommodation for the 2022 football oh belgium strike originally la copa wants to say infancy new and fee for doing more to combat racism. football well, governing body has opens an investigation to england, plays with targeted turn that will qualify against hungry on thursday. i think now it's the time that you know, something has to happen because, you know, we are 2021. i think a lot of teams, you know, have a lot of pleasure, different any initiatives, religious and, and such a i think now i think the find the u. f. a has to step in because enough is enough . well, qualifying is continuing. writing champions, france drink one or with ukraine, my color chopper rank, i was brilliant strength footing ukraine had just before hops on that is 1st ever international goals. things just, you know, any more equalizing with his 1st goal for from

he spoke with francine lacqua.ch that full interview first on the bloomberg turnabout -- terminal. apple asking all u.s. employees to report their vaccination status. telling workers to voluntarily declare if they've been inoculated by mid september. regardless of whether working remotely or from an office. apple isn't mandating vaccines. it says it will use the data to inform its covid response efforts and protocols. an ipo for building materials -- we are told blackstone is considering listing cme in amsterdam last year -- next year. blackstone bought the construction and material supplier in 2019. supply constraints, trimming its third-quarter delivery outlook due to an uncertain and volatile semi conductor supply. the chinese electric comic or expects to deliver 23,500 vehicles in september it -- in the quarter ending september 30. new order sick -- orders hit a record high last month. haidi: every new yorker would know about seinfeld. it seems like it's an enduring classic. netflix shares getting pulled to a r

tom: hsbc ceo noah quinn speaking to francine lacqua. can watch the full in schools of -- exclusive interview starting at 11:00 p.m. london time. starting at midnight friday london time, clips will appear on bloomberg television and bloomberg radio, among other platforms. turning to germany. just three weeks out from an election that will change the political landscape in europe's largest economy. as we near the end of angela merkel's time in a power, the focus turns to what kind of government we could see postelection. maria tadeo is in berlin. what are the different coalition options gaining traction at this point? >> how much time do we have to go through all of this? mathematically, we have five different parties that could join in the next government. it is an election that is incredibly open. there are many different formations that can come up after september. today, i want to focus on towo -- two specifically. these coalitions are making headlines in germany, but taking the spotlight when it comes to the political debate. you ass

. >> this is bloomberg surveillance: early edition with francine lacqua. francine: