. ♪ leigh-ann: i'm leigh-ann gerrans with bloomberg's "first word news." coalition deal to form a new government. agreeing on the basic principles of a ruling alliance. olaf scholz will precede angela merkel. a global energy crunch, oil futures hit $85 a barrel for the first time in three years. futures jumping as natural gas prices hit records. raising revenue for oil producers, risking slowing down economies emerging from the pandemic driven slump. global news 24 hours a day, online and at quicktake on bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. i'm leigh-ann gerrans. this is bloomberg. ♪ >> all of our corrections have been really caused by the fed over tightening. they are telegraphing they are going to keep the market high and use the labor market for transitory inflation. i think they may be right but we have to push it way into 22 at the earliest. jonathan: from new york city this morning, good morning. equity positive .4% on the s&p. yield higher by three basis points on tens. cpi in america, at some point we

i'm leigh-ann gerrans. this is bloomberg. ♪ >> we have got to figure out how to get our fiscal house in order. you don't get to just borrow unlimited amounts of money. except for government. if you care about medicare, if you care about social security, we have to look just live within our means. jonathan: republican senator rick scott from florida. from new york city this morning, good morning. your equity markets totally unchanged after five days of gains. in that the bond market where yields are going nowhere. down almost to basis point. slightly weaker euro and euro-dollar negative. crude back with an 82 handle down about $.90 on the data. we are negative. tom: what do you make of the real yield coming in? we have a lesser negative number , make it .93. jonathan: it's more than inflation move from reels to breakevens, it's gone through domestic to global. we will catch up later on that this morning. this is the warm-up. tom: i will be in the surveillance map. this is importance. i'm keeping track of the

leigh-ann: with the first word news, and leigh-ann gerrans. up to the house to avert the immediate threat of a catastrophic default today. lawmakers are scheduled to vote on a increase to the government's borrowing limit. it is good for less than two months, when congress faces an even bigger showdown over debt and spending. oil has held above $80 today. west texas intermediate futures were little changed. there are expectations that a power crisis from asia to europe will lift demand, and that opec+ alliance could add to the upward price pressure. chief scientific officer of johnson & johnson is retiring. they have taken on some of the world's most imposing infectious disease challenges, including the coronavirus. he is leaving at the end of the year. the announcement comes less than two months after j&j's longtime ceo alex gorsky said he will leave on january 3. the coach of the las vegas raiders has quit. he steps down hours after "the new york times" reported he made homophobic and misogynistic marks in emails. that followed an earlier --

leigh-ann: with the first word news, i'm leigh-ann gerrans.tol hill, senate majority leader chuck schumer is running out of time to break a deadlock among his fellow democrats over president biden's multitrillion dollar economic plan. he is facing major policy challenges and tactics by mitch mcconnell. if he could break the deadlock, that would aid the way to clear a second bipartisan infrastructure bill. russia is keeping a tight rope on europe's energy market, opting against sending more natural gas to the confident despite assurances from president vladimir putin that the country was ready to consider eddie steps necessary to save lives and markets. europe's biggest supplier since to plan more through the key gas root en -- gas route in ukraine. a property sump and energy prices have delivered a big blow to chinese growth. gross domestic product spent at 4.5% from the year earlier, down 10.9% in the previous quarter. there are signs of more pain to come as the country heads into winter and property curbs remain. beijing has signaled his not

leigh-ann: with the first word news, i'm leigh-ann gerrans.t is the end of an era in private equity. the billionaire cofounders of kkr, henry kravis and george roberts, are giving up their leadership roles. the to have dominated private equity for almost half a century. kkr's new co-chief executive officers will be joe bae and scott nuttall. economists at goldman sachs have cut their forecasts for u.s. growth this year and next. the bank blaming the delayed recovery in consumer spending. goldman expects 5% growth in 2021 and 4% next year. meanwhile, goldman also predicts the equity market will continue to rally. a report says investors will gain confidence that the current pace of inflation won't last. the international monetary fund's executive board will deliberate today over the fate of its chief, kristalina georgieva. directors have spoken with her and the law firm that alleged improper actions in her previous job at the world bank. georgieva has denied any wrongdoing. the u.s. and european union plan to announce that at least 20 more coun

. ♪ leigh-ann: leigh-ann: --leigh-ann: with the first word news, i'm leigh-ann gerrans.ondon heathrow airport will increase surcharges by 36%. airlines have announced higher fees as they try to bounce back from the downturn. the fda is reportedly planning to allow a mix-and-match approach for covid booster vaccines. the agency could act as soon as this week. it is likely to not recommend one vaccine over another, but may say it is preferable to use the same vaccine when possible. an elderly couple who broke covid-19 rules to enjoy china's tourist sites have become the focus of the country's latest virus cluster. huge contact tracing and testing efforts are now underway after the two retired university lecturers from shanghai continued to travel even after being told their test results were abnormal. or than 1500 close contacts have been identified in at least six new virus cases have been confirmed. north korea has fired what appears to be at least one ballistic missile for the first time in about two years. south korea's military describes the weapon as one designed for

. ♪ leigh-ann: with the first word news, i'm leigh-ann gerrans. the u.k. new zealand have agreed to a trade deal which includes improved business travel arraignments and reduced tariffs on clothing, buses, ships, and bulldozers. government research last year estimated such a deal would have no long-term impact on the british economy. former president donald trump has announced a deal that would enable him to regain his social media presence after he was kicked off both twitter and facebook. a press release says trump plans to start a social media company called truth social. if all goes according to plan, it would be up and running ahead of 2022 midterm elections. china's evergrande group scrapped plans to offload a stake in its property management arm, and real estate sales plunged about 90% during peak home buying season. that is worsening the liquidity crisis on the eve of a dollar bond deadline. in statements yesterday, evergrande added it has made no further progress on asset sales and may not be able to meet financial obligations. global news 24 hour

. ♪ leigh-ann: with the first word news, i'm leigh-ann gerrans.n capitol hill, the house has improved a short-term increase of the government debt limit. lawmakers are sending the legislation to president biden just days before the treasury was at risk of running out of borrowing authority. still, there is lightly to be another partisan confrontation over spending and debt in less than two months. president biden turns his focus to supply chain transportation bottlenecks today. he will meet with corporate executives, labor leaders, and port officials. the president will highlight what they have done to ease distribution backlogs. meanwhile, the congested port of los angeles will announce a 24 hours a day, seven days a week effort to combat the squeeze on goods. the european union law for a new round of concessions to the u.k. over northern ireland in the latest brexit negotiations. the eu will propose cutting as much as 50% of the customs checks in northern ireland and up to 80% of the checks on food imports. the northern ireland protocol keeps th

leigh-ann: with the first word news, i am leigh-ann gerrans.onal democrats are still confused over how to slice of president biden's economic agenda. the tax and spending cuts down from about $3.5 trillion to $2 trillion in the original plan, though they cannot agree on which parts of the president's agenda to keep and how long to pay for that. changes are coming at the federal reserve. the vice chairman will be removed from his role as the wall street bank's main watchdog. progressive groups need now get to see their least favorite governing group sidelined. two other governors, lay our and michelle bauman. the russian leader was one of the european union to rewrite some of the rules of the stock market after years of overdoing moscow's concerns. it is over the controversial nord stream 2 pipeline to germany to boost gas deliveries. china's exports have hit monthly records in advance of holiday shopping, power outages across the country, rising prices also adding to the increase. meanwhile, chinese imports rose less than expected. immortalized

i'm leigh-ann gerrans.s is bloomberg. ♪ sen. sanders: the $6 trillion i initially proposed was probably too little. $3.5 trillion should be the minimum, but i accept that there's going to have to be give-and-take. jonathan: senator bernie sanders speaking on abc. futures down 13, -0.3%, coming off the back of the biggest weekly loss going back to february. euro-dollar, $1.1635. and the bond market, yields higher to 1.50% on tends. -- on tens. tom: this is a joy, to talk of the moment in washington and the larger picture as well. windy schiller is at brown university, director of the taubman center of american politics and policy. she also has the most readable textbook treatment on america in a democracy under threat. i can't convey to you the importance of gateways to democracy as an instruction guide for so many americans. jonathan: wendy, great to catch up with you. we keep talking about these numbers, one point $5 trillion, $3.5 trillion, senator sanders looking for $6 trillion. how many people in ameri

leigh-ann: with the first word news, i'm leigh-ann gerrans.he billionaire founders of kkr are giving up their leadership roles. henry kravis and george roberts are stepping down after dominating private equity for almost half a century. they had elevated joe bae and scott nuttall to co-chief executive officers. the buyer was an fbi agent posing as a foreign official. authorities say the case involved cryptocurrency payments and a memory card hidden inside a peanut butter sandwich. hong kong's chief executive is defending coronavirus travel restrictions out of frustrating global businesses. in an interview, carrie lam said restrictions will stay in place for the foreseeable future. >> of course, i am concerned, and we are working very hard to resume normal travel in a gradual and orderly manner, both with the mainland of china and with other laces. leigh-ann: lam says mainland chinese officials want to follow a stricter reproach to wiping of the virus. the international monetary fund's executive board will deliberate over the fate of its chief.

leigh-ann: i am leigh-ann gerrans. advisors to u.s.ulators say booster shots of moderna's coronavirus vaccine should be given to older people and those at high risk of the disease. the booster is half of the original dose. the fda panel says it should be given six-month after the initial vaccination. the texas abortion plan will stay in place until a hearing in december. a federal appeals court says it will keep a child's judge ruling blocking the law on ice until the issue is taken up in a related challenge. texas bans abortions after the sixth week of pregnancy, before most women realize they are pregnant. amazon has appealed a record $865 billion fine over the european union data protection law. regulators and luxembourg world the company violated laws through its processing of user's personal data. amazon has denied there was any data breach. it was the worst september for auto sales in europe since 1995. new car registration plunged 25% to 973,000. that has put the industry on track to do worse than last year's disaster showing. t

i am leigh-ann gerrans. this is bloomberg. ♪ >> i am confident what we need to do come into compliance with the minimum tax will be included in a reconciliation package. i hope it will be passed and we will be able to reassure the world the united states will do its part. jonathan: janet yellen speaking on abc. from new york city, good morning. tom keene, jonathan ferro, and kailey leinz. your equity market lower one third of 1% on the s&p. yields higher in germany. we are closed in the bond market stateside. in the fx market, the euro weaker. in the commodity market, $81.62. you have to go back to october 2014, the last time crude prices for this type. we are positive 2.86%. tom: 80 to 84 on brent crude, i think that is a 5% move. jonathan: as you've said it is persistent. it is almost every morning, another 1%. tom: lots of persistent trends. let's dovetail this wonderful nobel prize announcement into what we see in washington, which is jobs is everything in politics. emily wilkins joins us with bloomberg

. ♪ leigh-ann: with the first word news, i'm leigh-ann gerrans.ebook is planning to rebrand with a new name that focuses on the meta-verse, according to the verge. the original app's brand may remain unchanged, similar to google's structure without the bet. ceo mark zuckerberg -- with alphabet. ceo mark zuckerberg is expected to discuss the change next week. jamie dimon has told staff jp morgan will boost pay. the change is aimed to act her age -- to encourage advisors to stick with the bank. morgan stanley says it will be spacex that lifts to trillions. morgan stanley has a $200 billion build case valuation on it, and adam jonas sees spacex as multiple countrie -- sees a spec -- sees spacex in multiple countries. global news 24 hours a day, on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i'm leigh-ann gerrans. this is bloomberg. ♪ ♪ >> for decades we have relied upon just-in-time delivery, and now we are beginning to find that there are real vulnerabilities with the -- vulnerabilit

i'm leigh-ann gerrans.he dealmakers at j.p. morgan chase posted their best quarter yet. fees from advising on deals almost tripled in the third quarter. that crushed analyst estimates and helped push j.p. morgan's net income to $11.7 billion. ceo jamie dimon says the bank has weathered supply chain disruptions well. on capitol hill, the house has approved a short-term increase in the government debt limit. lawmakers are sending the legislation to president biden just days before the treasury was at risk for running out of borrowing authority. there is likely to be another partisan confrontation over spending and debt in less than two months. opec is sounding a cautious note on the strength of oil demand, despite international crude prices surging above $80 a barrel for the first time in several years. opec has revised down estimates for global oil consumption. this year, the cartel says the spike in natural gas prices could boost petroleum use in some areas, but hurt it in others, like refining cutting is 5

. ♪ leigh-ann: with the first word news, i'm leigh-ann gerrans.n north korea, kim jong-un showed off a buried arsenal of missiles designed to frustrate u.s. defense systems. it was a rare display that appeared to be kim's latest effort to break the diplomatic stalemate over his nuclear program. he blamed the u.s. for creating regional tensions. the house is set to vote on a short-term increase to the government borrowing limit today. that whatever to the immediate threat of a catastrophic default , but it sets the stage for an even bigger showdown on debt and spending in less than two months. the international monetary fund will keep kristalina georgieva as it managing director. board investigated allegations that she improperly -- china's business climate. georgieva has denied any wrongdoing. an indication of a stronger they were market may lead the bank of england to raise interest rates. payrolls rose by a record 207,000 in september. meanwhile, job vacancies rose 1.2 million, also a record high. bitcoin is flirting with a run towards its all-t

francine: leigh-ann gerrans in london with us. let's go back to the markets. thank you for being with us. so much going on in the markets. inflation, inflation, inflation. the focus is on evergrande and the fact that it is not defaulting. >> relief for markets. there was a little bit of positivity around the news and at the open in europe, we are looking a little more positive but it feels like there is an asymmetric risk attached to evergrande and any news out of china. good news being taken into stride by markets. any sign of bad news is where the markets are going to be paying attention because that tends to weigh down sentiment more. that shows the underlying concerns and investors are still watching for contagion from evergrande to the china property sector. how that impacts the rest of the chinese economy. tom: and on the earnings front, we have been talking about snap and the hit of the supply chain there but the fact that investors are rewarding companies that meet or beat numbers. >> that speaks to the sentiment in markets now where people are bracing

. ♪ leigh-ann: with the first word news, i'm leigh-ann gerrans.ast month, federal reserve officials agreed they could start removing emergency support for the economy in mid-november or december. minutes from the meeting showed there was increasing concern over inflation. most participants thought inflation risks were weighted to the upside. they also discussed whether labor supply would oz back to 2019 levels. in china, factory inflation grew at the fastest rate last month in almost 26 years. the producer price index rose 10.7% from a year earlier. other commodity costs soared on inflation pressure as local businesses start passing of higher costs to customers. according to the international energy agency, shortages of natural gas in europe and asia are boosting demand for crude. the iea says that could add about 500,000 barrels a day to oil use over the coming six months. mixed results from domino's in the third quarter. the pizza chain reported revenues that missed estimates. sales at domestic stores fell almost 2%, while international sales ro

i am leigh-ann gerrans.his is bloomberg. ♪ >> tapering is very likely. that is going to take until the middle of 2022. the forecast is much more moderate and inflation is on its way back down to something like 2%. in that environment, i don't think they are going to move directly to rate hikes. jonathan: wonderful to catch up and start the goldman sacs chief economist. good morning. your equity markets shaping up, down three, let's call it negative for. it is a mild move lower. yields on tends about a basis point as the treasury market reopens. 159.79, yields -- 15979. the fx market, euro-dollar unchanged on crude holding on to 80.47. it is about 8:18 p.m. in brisbane, australia. it was written in, i watched it truly for tom keene sport news. my goodness, george. what do we need to know about the baseball. get it done. tom: it was exciting. i have been to a zillion games at fenway park and have not seen it that fired up. jonathan: do you want to tell the audience what happened. tom: the better team was defea

i am leigh-ann gerrans.bloomberg. ♪ >> we have given people a lot of time, first of the voluntary phase and then in the vaccinate or test phase. it is time to keep moving. for the vast majority of the workforce not yet vaccinated, the deadline is 5:00 p.m. on friday, october 29. my goal is to end the covid era once and for all. it can be done, but only if we keep pressing on. jonathan: officials tightening the screws. good morning. your equity market enter thursday, six days of gains. negative this morning. the bond market, yields lower. after a little look at 167. commodity market down .7% on crude. $82.84. allow me to read this after you. pfizer and beyond textedit booster shot of their vaccine has restored full protection and a large study. of booster was 95.6% effective against symptomatic covid in the study, which followed 10,000 people aged 16 and older. when the trial took place delta was the dominant strain. a little bit of additional information for you. 10,000 people aged 16 and older, 95 point six

. ♪ leigh-ann: with the first word news, i'm leigh-ann gerrans.gressional democrats have made headway in breaking the stalemate over president biden's economic agenda by getting rid of or trimming parts of the multitrillion dollar tax and spending package. progress came after the president met with various lawmakers yesterday. expected targets for cuts include tuition free community college and a shortening of the expanded child tax care reddit stench of -- tax care credit extension. able kino -- a volcano in southern japan erupted. the bundesbank president stepping down from his post at the end of the year. a statement from the central bank says he submitted his resignation to the german president for personal reasons. the 53-year-old has been germany's central bank chief for more than a decade and is considered one of the more hawkish members of the european governing council. global news 24 hours a day, on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. more than

. ♪ leigh-ann: with the first word news, i'm leigh-ann gerrans.ongressional democrats are at odds over the tax and spending sides of a bill to bolster president biden's bill but better agenda. the chances of a deal by the end of the week seems to be receding. they are debating with senators joe manchin and kyrsten sinema. in a large study, the result is likely to bolster the argument for giving a third dose of the vaccine. the companies say a booster was 95.6% effective against symptomatic covid-19 in the study, which followed 10,000 people aged 16 and older. risk cases in new south wales, australia's populous state, jumped 89 from the day before to hit 300 72 infections today, the biggest daily increase since mid-september, and comes 10 days after the state lifted a widespread lockdown that did last more than 100 days. global news 24 hours a day, on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i'm leigh-ann gerrans. this is bloomberg. ♪ >> it was april of last year that we ran out

. ♪ leigh-ann: with the first word news, i'm leigh-ann gerrans. biden is heading to global climate talks at the end of the month. he has embraced climate action as no other u.s. president has, promising to cut carbon and shift to electric cars. u.s. negotiators at the glasgow summit may have nothing to show other than promises of action. a down payment in funding to help poor countries fight climate change is unlikely to clear congress this month. the white house has once again said it will support former president trump's assertion of exec it if religion relate -- of executive privilege related to the -- has had once again it will not support former president trump's assertion of executive privilege related to the january 6 insurrection. a new bill in the u.s. senate would crack on big tech companies. firms like amazon and apple would be prevented from giving an advantage to their own products over those of competitors. they would be barred from using data to hurt competition, stacking search results in their favor, or restricting the way other s

leigh-ann: i'm leigh-ann gerrans with bloomberg's "first word news."olin powell, the first african-american to be u.s. secretary of state and chairman of the joint chiefs of staff has died. his family said he died due to complications from covid-19. his family said he was fully vaccinated and being treated at walter need -- walter reed. he served in public office for four decades. he was 84 years old. china seeing a new cluster of covid cases in the northwestern provinces, new infections since sunday officials say more than 1500 people have been identified as close contacts and it is traced to two people from shanghai. key legislation to fight climate change may not the final vote it needs to survive. west virginia democratic senator, joe manchin, has told leaders he will not support including the spending package. the program would charge utilities -- pay those freezing clean energies and penalize those who do not. assurances from vladimir putin that the country was ready to take steps necessary to stabilize the market. the biggest supplier does not p

. ♪ >> i'm leigh-ann gerrans. president biden says the u.s. has a commitment to protect high one.dent said that he -- protect taiwan. the president said that the u.s. would not change its views. china has made an interest payment headed tomorrow's deadline. they wired a payment that gives evergrande time to pay suppliers. vaccinated travelers will soon be able to enter thailand without warren teaming. they are among 46 countries -- quarantining. they are among 46 countries to join the no quarantine list. china is expanding its booster shot program to those participating in the upcoming winter olympics games in beijing. at risk groups involve those working at the facilities associated with the game. global news, 24 hours a day on air and on bloomberg cryptic. this -- bloomberg take. this is -- bloomberg take. -- bloomberg -- bloomberg q uicktake. this is bloomberg. ♪ ♪ >> i think inflation will be in the first half of 2022 and it will moderate as we work towards the second half of 2022. the are in a once into decades inflationary -- we are in a once in 2 decades its/mary pressure a

i am leigh-ann gerrans.his is bloomberg. ♪ ♪ >> we are going down from 6 trillion to 3 trillion, now one trillion. we have these conservatives that their baseline is zero. the agreement several months ago to proceed on that one bipartisan bill was that it was tied with our larger build back better agenda. both of these bills need to pass. both will not pass if people try to separate them. jonathan: congresswoman ocasio-cortez speaking there. your equity market this morning shaping up like this. we are negative 0.33%. we advanced to 149, just south of 1.50 on tends. 1.1611. that is the price action. here is the controversy. i think we need to have this discussion about vice chair clara. preplanned transactions on february 27. i want to go through the timeline and get to the facts and a statement from the federal reserve as well. february 28, jay powell issued a statement. march 3, we have that rate cut. the transactions executed prior to any to liberations the vice chairman had with the federal reserve. the s

i am leigh-ann gerrans. this is bloomberg. francine.is what we are seeing in the markets. overall, a little bit of pressure because earnings are coming out. analysts expect pressure on margins. we are seeing repricing on the bond markets. there is divergence between what we are hearing from andrew bailey paying they must act to avoid inflation becoming entrenched and the ecb being much cooler about transitory inflation. coining us to talk about the markets is our markets live team. congratulations on that. what are you watching out for for monday? a busy week ahead. china growth not as good as expected. >> it is a monday. the market watchers will tell you that this is the crescendo in that part of the symphony because we are at the moment when we are building up inflationary expectations and central bankers are starting to respond. there is even another type of bond purchasing programs appeared the bank of england seems to be different. the thing to note with the bank of england in particular is mpc voting members are more dovish than a

. ♪ leigh-ann: with the first word news, i'm leigh-ann gerrans.s finance meters met with reddish leader -- with british leader boris johnson, they agreed that the problem needs markets and markets need new rules. barclays ceo jes staley spoke with bloomberg television. >> from the prime minister to the chancellor, they want the u.k. to be a leader in addressing the climate issue, and they are dedicating their resources of the british government and the city of london in order to do that. so they want a leading role. they got the ability to take a leading role. the banking community and the financial community should be supportive of the british government doing that. leigh-ann: today's gathering has drawn criticism from climbing -- from climate groups, who say the fossil fuel financing of attendees undermines global attempts to fight climate change. president biden will continue courting democratic progressives and moderates today as he seeks to reach a deal to advance his economic agenda before the end of the month. west virginia democratic senat

. >> with the first word news, i am leigh-ann gerrans.dent biden is heading to global climate talks weakened by infighting at home -- he has embraced climate action like no other u.s. president has, promising to cut carbon and shifting to electric cars, but u.s. negotiators may have nothing to show other than promises as down payments to help poor countries fight climate change is unlikely to clear congress this month. former treasury secretary larry summers is blasting the fed for risking losing control of inflation. summers said there is a generation of central bankers defining themselves by their woke us -- they pay too much attention to social issues and not enough to the biggest risk of inflation since the 1970's. the white house says it will not support president trump's executive privilege over records related to the january 6's insurrection. it has ordered national archives to turn over documents within 30 days. the former president has indicated he might start a legal challenge to keep the records shielded. eight out of 10 britis