it is also lme week. it is exciting it is back. terms of what you're seeing now in the price action, what are you hearing on the ground? is there still a lot of bullish sentiment? matthew: as you say we had our lme seminar today. it has been a source of discussion. as your graph showed, some good price action. i think that short-term -- you're in the short term at prices like any other commodities being impacted by number of transient factors. you have high energy, you have logistics, supply disruptions, and a lot of the price movements we've been seeing are a consequence of that. it is also undeniable that if we look at where we came from at the depth of the pandemic, there has been this longer-term trend. exactly as you say. that is driven by the longer-term supply story, i.e. it is hard to bring new supply online, and the demand side, particularly the green revolution and the need for these metals in a more electric society. guy: the need for the metals and electric society is something a lot of people are talking about. i know

you had historic squeeze at the lme. stocks fell to the lowest, below 20,000 tons, what china consumes in terms of factories in one day. but a very intense reaction. we want to bring in jack who covers this for us. what happened? jack: it is one of the most extreme moves we have had in the copper market in a long time. training at the highest on record. it was training well above. what has happened is copper is in short supply all over the world and cover is not an exception and add to that the fact that traders have removed stock from the metal warehouses. we reported early this week that a significant portion of that was done and left the lme with all stock. some he deliver the copper. there is very left in the lme warehouses. alix: is this going to keep happening? you have the arbitrage that plays out. are we going to keep seeing this crazy backward spread in low inventory? i think at the moment you have a vacillating spread. i thought you'd see that come into lme warehouses and that will take time. what has to happen

the lme metals index hitting a record high.his isn't necessarily an optimistic -- economic optimism, rather we saw zinc soar yesterday. so, some optimism continuing for a second day in these markets. let's see how this is shaking out in asian markets. let's get over to juliette saly in singapore. it looks like a positive tone to end the week here. juliette: exceeds me. absolutely, dani. i just got so excited, i choked on myself, but yes, certainly the bulls in china, asia stocks to round out the week, their best week in about a month, the weaker yen boosting the likes of the nikkei, hong kong coming back online, and some pretty good support. lower yields, growth stocks going well, earnings beat, the infotech stocks leading the game. we're seeing australian stocks rise. new south wales is scrapping quarantine for vaccinated arrivals. dani: we've also heard that china's loosening restrictions on home loans amid the evergrande contagion. what more do we know at this point? juliette: this is a bloomberg scoop that we are hearing, t

basically, lme warehouses show that there is huge demand or lack of supply. warehouses, 4.2 million square feet to store tangible stuff. 594 soccer fields. jonathan: the term is monster bankquidation. lisa: i am trying to fit that was football references and coming up lank. this is a story behind data points with the crude. more expensive to drill because of commodity prices, labor prices. we will see the same trend in the housing data. the expectation is for a bit of softening but not much. this idea that there is so much demand. it how do you bring supplies online at a time with are not above elders? today the second day of the conference. interesting to hear from howard marks, as well as steve mnuchin. it is here with yes to say about the debt that is increasing. cathie wood. netflix is reporting third-quarter earnings. a lot of people are keen to see if they can justify the more than 90% gain in the shares. everyone is going to talk about squid game and whether they should stop their children from watching it at night. jonathan: thank you. nord stream 2.

there is a mathiness, there is a log convexity in the lme metals market like i have not seen going way back. i am talking 20, 30 years. that log convexity is french for acceleration. these prices are moving. jonathan: you mentioned how higher energy prices are starting to influence higher metals prices. we talked about it last week on this program. cutting back production because energy cost to get out of this -- to get this out of the ground is getting too expensive. tom: it is so important, and you literally have to go into the science of it. these are not financial instruments. these are not suits and ties moving paper around. this is tangible stuff. there is demand and supply variance. coco is actually down today. these are processes, and so many revolve around $86 brent. jonathan: central banks starting to respond to this. you heard that from the bank of england. lisa: 1% potential interest rate overnight in the united kingdom. how is that going to help the energy price? jonathan: it will not, but they are worried about inflation expectations becoming embedded, higher inflation ex

tom: i was once at the dorchester hotel for the lme conference, and they were arguing over banana futures. this is not hilarious, but it is timeless. we are leaving asia. asia picks up. we are going back to asia. here you have a major german bank saying we have got to get on board base metals. jonathan: this was what, eight years ago, when they left this particular business? now they are talking about going back into it. great reporting from sri natarajan on deutsche bank. i guess the good news for deutsche bank investors is we are no longer talking about trying to cut our way to growth. they are looking for sources of that growth now. maybe that is the upside to this story. tom: i would do a quote on aluminum, but i can't find it. save me. jonathan: go to metals, go to aluminum, is at the top. we are positive 3%. lisa: what is going on? he is saying aluminum, you are saying alumin-ium. jonathan: that's what we do. [laughter] tom: the vix comes in. it he cares. -- nobody cares. lisa: i care. tom: yes, you care. [laughter] jonathan: david riley from bluebay on the program saying there's mo

coming up, the lme ceo. this is bloomberg. ♪ let's check in on the bloomberg first word news.s arrested a navy department employee and his wife for allegedly selling secrets on nuclear powered submarines. according to the justice department, the buyer was an fbi agent posing as a foreign official. authorities say the case involved cryptocurrency payments and a memory card hidden in a been a butter sandwich. the u.s. and european union plan to announce at least 20 more countries will join a pledge to reduce athena missions. bloomberg has -- reduce methane in missions -- methane emission s. the human has found dusty -- the un has found that 80% of methods to reduce emissions can be of limited at no cost. the imf will meet today on the fate of its managing director, kristalina georgieva. georgieva has denied any wrongdoing. residence in new zealand have been tasting freedom at the coronavirus lockdown. new south wales has been one of the most prominent success stories and containing the coronavirus under the strictest orders when the delta variant hit back in june. residents who

that is the difference right now between crude and copper on the lme. tom: it is a tangible entity. the tangible growth always led by china? to me, that is the mystery. under 6% china growth is no good. they are still growing nicely, and that is where the demand for commodities clicks in. jonathan: can we call it wild? unreal. we've got to work through this. that's the commodity market. let's finish on the bond market. lisa went through the fed speak today. i know you can hardly wait. every time i talk about the fed speak i have to pause because i know a lot of people are frustrated from hearing from these fed speakers. you will hear from them again. yields in a basis point. lisa excited to hear them. lisa: what are they going to say at this point? what guidance can they give that they have not already given, and what kind of unification matters at this point? jonathan: i think you can repeat the same message, but if the situation around you changes, these can so what you say is not the same. on a day like today, if everyone gets together and keeps beating this drum that there's a d

copper, we are having a real conversation about their not being anything in storage, and storage and lmeehouses. tom: not just the supply, the demand dynamics, but the economics. amrita sen on copper is interesting. we are making jokes about magnesium, and i would suggest the manufacture of aluminum, the manufacture of magnesium, the manufacture of copper still goes back to hydrocarbons. jonathan: and you pointed out what has been happening with zinc and the likes of glencore. when power prices go up and it costs more to develop some of these metals, the pullback on the production and development of these metals. tom: the analysts approach this differently. ed morse is much more geopolitical, geostrategic. what will the saudis do? jeff currie, with the microeconomics of chicago, is very precise and concise. i think francisco blanch at bank of america present a holistic view of all of the economies. everyone is different, including amrita. jonathan: as we get that ready, let's talk about this bond market. we have gone from talking about breakevens, higher inflation expeditions that peaked

we have seen record creation on -- record backwardation on lme.o constrain a lot to meet client demand. is it an idiosyncratic thing, or is this what we will continually see as we go through this green energy transition? ed: copper is a particular problem in that we don't know where the supply is going to come from. the supply that we can identify is much more expensive than the average supply of copper. whatever happens in the near-term, rising prices right now, probably dropping at the time we get to the end of winter. but the issue with copper is the increment of molecule of demand goes into a greener planet. more than half of our expected copper demand will be incremental to today's demand, based on greening of the world. copper is really a part of that for the time being, so copper prices will go up again. guy: great to see you. stay warm. thanks very much, indeed. what are we going to talk about next? bitcoin rallying to a record high after a strong debut of the first u.s. etf. we will talk more about this next. this is bloomberg. ♪ >> this

base metals near an all-time high on the lme.the inflation narrative, a year-long rally in metals. and in supply issues and the energy tightness, and that is adding up to higher prices for some of the things. what about advertising? tom: doing well, shares gaining close to 2.5%. they are saying revenue is back above pre-pandemic levels. they also raise the forecasts. they see organic revenue increasing in the third quarter, and that beats forecasts. some questions in terms -- anna: a copenhagen listed medical company on the move to the downside by 2.9%. we have seen a recall of products. they have had to recall and halt sales of new implants due to performance issues in a small subset of implants, and they do not have any safety events. let's get back to our guest, valentijn van nieuwenhuijzen, cio, nn investment partners. i wonder how you are trading these markets at this point. the materials space, how do you see that playing out with higher metals prices? valentijn: i think overall playing the markets right now, we are in a bi