monica -- vonnie quinn is a new york. vonnie: a u.s.can lawmakers has americans and afghan interpreters aboard several planes being prevented from being afghanistan. they told fox news they would not let the aircraft leave, essentially holding them process -- hostage. an afghan official told him they are -- negotiations provide the 2015 nuclear deal must lead to the removal of sanctions. -- says he told the french president that iran is not interested in negotiations or think negotiations. talks have been on hold since the june election, and tehran has given no indication of when they may resume. the top white house medical advisor says the pfizer vaccine is the only one that might be approved for booster shots for covid-19 initially. dr. anthony fauci's comments to cvs may provide more clarity on the administration's stance. the white house has faced criticism for political interference in the process. >> looks like pfizer as their data in. we hope moderna would also be able to do it so we can do it simultaneously, but if not we will d

vonnie: everyone was thrilled to watch.ded great entertainment and we will see you again in new york. thank you so much. daniil: thanks a lot for having me. guy: great interview. fantastic stuff. what a weekend of tennis. vonnie quinn speaking with the men's open championship daniel mitty of -- daniil medevev. energy stocks are doing quite well. the european markets broadly are higher. the london market is outperforming a little bit, but pretty much in can. energy stocks up. let's show you what is happening with the stoxx 600, give you an idea of what the session looks like. definitely off our earlier highs. midway through the date we were more positive. we nosedived off that towards the back end of the day in europe. the inflation narrative is a big feature. keep an eye on what is happening with energy costs around europe. take a look at what is happening in germany, pushing ever higher. u.k. net gas prices up to a record day. electricity prices higher and higher. a very interesting winter. there is a push across. the u.k.

let's get to vonnie quinn. vonnie: china has it back at the u.s. and u.k.o of australia build nuclear submarines. a spokesman for the foreign ministry said the move will start an arms race and her international number proliferation efforts. beijing question austria's commitment to forgoing nuclear weapons and acute -- accuse the u.s. and u.k. of double standards when it comes to nuclear exports. -- has been called up by the world bank for applying pressure washing the ceo of the universe -- organization to bussan's position in the ranking economy. she left the world bank in 2019 and is currently the imf managing director. john's position in the 2018 world bank report should have been seven places lower according to an internal review. she says she does not believe the findings. the federal german jerome powell as -- investments following revelations over trading investments by two regional fed presidents. there act -- their questions were -- the 61-year-old will contest a vote for leadership of the ruling party except for september 29. the winner of that ra

first word news with vonnie quinn in new york. vonnie: exactly. gains in japanese exports slowing for a third month in august as the delta driven coronavirus wave weighed on the global trade economy. the value of japan's overseas shipments increased 26.2% compared with last year's depressed levels. it was a slowdown from july at 37%. economists forecasted a 34% advance. exports edged up 0.8% from july. north korea fired two ballistic missiles from a train wednesday in its second major test in less than a week. the launch came on the same day moon jae-in observed his own military test of a submarine launched, becoming one of only a few countries to acquire the technology. one of the top ranked conservatives seeking to be south korea's next president told us the u.s. is being reckless in its diplomacy with north korea. >> americans view things in such a naive way. they thought north korea would like europe. they are not rational. they are locked a monarchy from a feudal era. vonnie: australia is joining a new into pacific security partnership with t

vonnie: thank you.cbc is boosting its wealth management and corporate banking headcount for greater china. they will be at the lenders main operations units. the ceo says the number of relationship managers for wealthy chinese clients will double to 500 by 2023. she spoke to a six lucidly and our first in-person interview since taking the job in april. >> we know that china is now so much more linked with the rest of asia. the inter-asian trade is growing substantially. we do know that if this opportunity. vonnie: 40 people are confirmed dead across the u.s. northeast after the blow to river by the remnants of her canada. record rainfall in new york caused catastrophic flooding. people left stranded. a state of emergency was declared. in new jersey and maryland, the storm triggered tornadoes. india's increase in daily covid-19 case numbers is raising concerns of a possible third wave. more than 47,000 new cases and 509 deaths reported on thursday, the highest daily infections in two months. israel repor

i am vonnie quinn. this is bloomberg. shery: still ahead, the former olympic minister says -- is likely to be named the next finance minister. up next, we speak to general gerard -- daniel gerard. this is bloomberg. ♪ paul: asian stocks look set to start october on the back foot after the u.s. be kept the monthly selloff -- biggest a lot since march of 2020. as investors brace for the fed to win down, that's wind down, the rate environment is supportive of equities. joining us from boston is daniel gerard. you say the rate environment is supportive of equities. we have seen broad selling, looks like we are saving up for a risk off in the asia-pacific as well. >> i think this is a good buying environment. overall, what we have been seeing from our institutional clients, the opening has been turning to risk off. we would support that. this is going to be an environment where we are worried about peak policy, perhaps, pete growth, but i do not think that means peak earnings, and that is why equities contin

let's get to vonnie quinn.a's foreign minister says the country's eyes are wide open when it comes to normalizing relations with china following the release of prisoners. they spend more than 1000 days in solitary confinement in china accused of spying. german exit polls show shoals and the social democrats edging ahead of the conservative party. projections indicate the party will win 26% of votes. the christian democrats are set for 24.5%. both men say they aim to lead the country's next government. the imf managing director as given the lending board a more detailed attempt at accusations that she influenced a report in china's favor. they obtained our letter in the board at the committee. she says it is not true she made a key role in china's ranking in the 2018 report. u.s. house speaker nancy pelosi as pledged to pass a $550 million infrastructure bill this thursday. she says she will put the measure forward on monday. the senate has passed the roads and bridges bill but democrats are divided on a separat

vonnie: u.s.ratic progress rivas lining up to defy speaker pelosi and oppose a bipartisan infrastructure bill. it's a blow to the $550 billion measure's chance and potentially endangers president biden's economic agenda. the infrastructure bill has already passed the senate but liberals in the house insist that democrats pass a larger tax and social spending package before voting on the roads and bridges measures. fed officials are set to have questioned several wall street lenders about their exposure to evergrande. u.s. banking supervisors routinely question such lenders about their ties to struggling companies. fed chair jerome powell said last week he saw no direct u.s. exposure. hong kong has also asked the banks there to report risk side to the chinese poverty developer. china's president is targeting a significant boost to the number of tech professionals and research and president -- research spending. xi jinping said china must embrace self-reliance in high-tech industries. and it comes a

i'm vonnie quinn. this is bloomberg. shery: another big vaccine develop it, the fda plans to authorized a third dose of the pfizer biontech vaccine in the official announcement could come in the next few hours. ahead, our interview with panama's commerce and industries minister about supply chain concerns, the economy and the vaccine rollout. but another day, another ever grand drama. on edge with a vaguely worded statement, bond interest payment ahead. this is bloomberg. ♪ shery: a question many investors are grappling with as china's ever grand faces interest payments. it has rippled across international markets, the travel developer did not help matters with a vague statement trying to clarify its coupon payment timeline. let's cross over to hong kong and stephen, what is ever saying? >> this is a day we have circled on the calendar for some time, whether ever grand will default. they have a 30 day grace. -- grace period. we are focusing on today, thursday, the 23rd of september, to see clear signs whether this develo

i vonnie quinn. this is bloomberg. -- i am vonnie quinn. this is bloomberg.ie kamaruddin's stock and commodities markets. the rally in gas futures taking a breather with the supplies improving in europe. enough to cool concerns over tightening markets? sophie: we did see european gas futures fall 50% on thursday as norwegian supplies started rebounding but going into the winter season with european stockpiles staying well below the five-year average, that will remain the key factor in this equation. without this buffer, gas markets remain very exposed. switching out the board at td securities, while unlikely, there is a growing worry that u.s. markets may also need to jump intubated local -- in two bid -- to bid local prices higher. and with that, we are switching out the board and already seeing that panic to secure supplies among buyers in this part of the world with customers paying record prices for this time of year for lng as they prepare for another bad winter, paul. paul: it's not just gas and oil that's feeling the supply chain squeeze p or the semic

i am vonnie quinn.. ♪ haidi: coming up next, a new reshuffle at the top of goldman sachs. details just ahead. this is bloomberg. ♪ ♪ shery: a big change is in the works for one of wall street's most dominant banks. goldman sachs says cfo -- the cfo is being replaced. su keenan has more on executive shuffling. su: you have seen changes at several banks after a long time with no changes. the cfo is integral to the power structure at goldman, so focus on this move. cfo stephen share leaving the bank in january after nearly three decades, and dennis coleman, the cohead of the global financial group becoming cfo january 1. to ensure a smooth transition, he becomes deputy cfo almost immediately. coleman isn't the only beneficiary of this reshuffling. observers see the bank as positioning its treasurer doug camtek in bigger roles including taking charge of the global financial group. that is also something to watch. as for sheer, he is considered a strong partner at goldman and played a key role in the most re

haidi: let's get over to vonnie quinn with the first word headlines. vonnie: good morning. house democrats have released a package of tax increases that fall short of president biden's ambitions. the proposal would raise the top corporate tax rate from 21% to 26.5%, and capital gains to 25%. it would raise government revenue by $2.1 trillion over 10 years. democratic lawmakers also say they will undo a $10,000 cap on federal deductions for state and local cap -- date and local taxes. china has urged the u.s. to repair damaged relations as the biden administration weighs an investigation into chinese companies. bloomberg sources say the u.s. is weighing the inquiry as a way to pressure beijing on trade. opec is predicting strong demand for crude this year and next on a combination of rising fuel consumption and output disruptions. the group's latest report says the world will continue to face an oil deficit in coming months even as numbers revise production. opec says global oil production is expected to reach just over 100 million barrels per day in 2022, which would exceed

i am vonnie quinn.his is bloomberg. >> we have an alert, the united states has reached out to china on cutting iran away all imports. this is according to reporting by reuters. they have reached out diplomatically about reducing purchases of a rainy and crude. u.s. and european officials saying washington is seeking to persuade tehran to resume talks about reviving the nuclear deal and they have reach out on china on trying to cut imports of oil from iran. this comes at a time where we have seen easing of tensions between the sides with the release of huawei cfo from canada. the u.s. now reaching out to china diplomatically about reducing purchases of iranian crude oil, according to reuters. oil has seen a rally. we are seeing a little consolidation in this session. still ahead a vote for the top position in japan with ldp lawmaker you noguchi -- chris campbell -- as the u.s. approaches the debt ceiling. >> it is imperative congress address that debt limit. >> raise the debt limit in order to divide --

and let's get to the first word news with vonnie quinn. vonnie. vonnie: thank you.sident joe biden has used his first u.n. general assembly speech to double the money the u.s. will spend helping poorer nations fight climate change. to more than $7 billion by 2024. the -- a mixed response from environmentalists but the real test is whether beaudin can win over congress and spur other countries to step up their own climate ambitions. china's president xi jinping has told the u.n. general assembly his cent plans to stop building coal-fired coal plants abroad and vowed more support for poorer nations to deep clean energy. the announcement came a year after he said -- to make china carbon neutral by 2060. beijing, the finance institute report says more than 70% of all coal plants built today rely on chinese funding. the i.e.a. has called on russia to supply more natural gas saying the energy crunch is an opportunity for moscow to show it's a reliable supplier. the agency says russia is meeting its contractual obligations to shift gas to europe. but as exports are still d

vonnie quinn. vonnie: thank you. goldman sachs hired a former mckinsey had to call around asia pacific operations. he becomes goldman's most prominent outside hire for asia, where the bank has ambitious investment plans. the bank voted to remove a ceo after a single term as its top executive as he started to resolve scandal for past client work. coinbase's ceo blasted the sec for what he called really sketchy behavior, after the company received a warning that regulators land to sue. they say the sec has an issue with a new product it is launching which allows consumers to earn interest on their crypto holdings. the ceo says the sec will create an unfair market if he tries to shut down the lending product. elizabeth holmes has said she is not the villain prosecutors have made her out to be as her trial begins. she faces 10 pounds of wire fraud and two counts of conspiracy to commit wire fraud. theranos dissolved in 2019 after she and her former executive, sunny balwani, were indicted. north korea appears to have held

let's get to the first word news, vonnie quinn in new york. vonnie: thank you.na evergrande group says it has engaged joint financial advisors to find a way out of its debt crisis. in a stock exchange filing, developer says it wants to reach a solution for all stakeholders as soon as possible. earlier police were called to its shenzhen headquarters, where protesters were demanding repayment on overdue wealth management products. australia is developing a digital vaccination pass in a step towards further ripping its borders. accenture won the tender to deliver the past, that the government says will help increasing numbers of australians return home, along with travelers, international students, and skilled workers. australians vaccination rates turns at 34%. president biden will host the leaders of india, japan, and australia next week for discussions that will include countering china's expanding influence over the asia-pacific. the first in person submit for the group known as the quad, will help biden's goal of making the region it top priority for foreign p

i'm vonnie quin. this is bloomberg. haidi: still ahead, kristin forbes and former boe external member of the monetary policy committee joins us. coming up next, president portfolio funds. he thinks equity and bond markets are pricing -- top of the pricing in longer-term inflation risks. we get more on the view next. this is bloomberg. >> we know that china has lost so much more length with the rest of asia. after it becomes china's biggest trade partner, it is -- substantially. we do know there is this opportunity. haidi: helen wong, we will be hearing more from our exclusive interview with her. u.s. stocks closing at a fresh record ahead of the key jobs report. that will shape the fed's stance on tapering. jobs will likely remain subdued. inflation also seen as a elevated. and that markets are not are poorly priced in with price pressures. joining us is michael cuggino. in terms of the underestimation, you don't think it is transitory effects? >> i believe some of the inflation pressures are transitory. short-term supp

i am vonnie quinn impaired this is bloomberg. shery: we will take a look at china's videogame crackdown as they shed $60 billion in combined value. we will discuss it with our guest. we will get insight on markets, this is bloomberg. ♪ >> after the deep and sharp downturn in economic activity last year, we have seen strong growth. challenges abound. >> as the data comes in as i expect it to, it will be appropriate for us to begin the process of scaling back our asset purchases this year. >> the longer we make these purchases for longer than necessary, i think it may actually make it so we have less flexibility down the road. shery: some of the latest on the taper timeline and as that debate continues, our next guest will perform well during inflations will be better than expected. mobile normalization is important. let us bring in our guest. where do we go to get all of that? >> that is a great question. i would say it is the biggest question out there. the thing we are seeing right now is you got to diversify your equities on a

let's get the first word news with vonnie quinn in new york. vonnie: thank.foreign minister says the country's eyes are wide open when it comes to normalizing relations with china following the release of two imprisoned canadians and the former huawei executive meng wanzhou. they spent more thousand days in solitary in china -- more than thousand days in solitary in china. there was a hero's welcome for meng wanzhou in shenzhen. chinese police have arrested the chairman and ceo of hna group. they were detained for suspected crimes. each an's debt fueled acquisition -- taiwan's main china friendly opposition group has elected a new chairman. he won with 46% of votes. this is his second stint in the role, which he held for a year in 2016. chinese state media says president xi jinping congratulated him on his reelection. u.s. how speaker nancy pelosi has pledged to pass the $350 3.5 trillion dollar infrastructure bill. democrats are divided on a bigger package of spending and measures. >> let me just say we are going to pass the bill this week. i promised we wou

i am vonnie quinn. this is bloomberg. >> still ahead, moneylion is going public. we will be talking about that with their ceo. coming up next, fear spreading throughout the markets. a guest joins us. this is bloomberg. ♪ >> i think the federal reserve certainly understands that china is an important player, and china, if it had a hard landing, it would have serious consequences. i think at this point, it is really premature to reach that conclusion. the chinese have done this before, and when it starts to actually affect the rate of growth and employment, they tend to ease off on the brakes. shery: that was a senior advisor to bloomberg economics, bill dudley. washing to price in the risk, this could derail economic growth, -- rushing to price in the risk. let's bring in the captrust ceo, mike. tell us about the last bit of exposure. mike: yes, i mean, we were nervous about what happened to jack ma, right? where in the world is jack ma? and we made the decision at that point that the regulatory environm

i am vonnie quaint. this is bloomberg. haidi: let's get back to that china evergrande story, the developer facing more pressure not just from bondholders not that it is nearing a possible default but also anger from homebuyers, management, investors even its own employees. let's bring in chief north asia correspondent stephen engle in hong kong. this is largely centered around these wealth management products that were sold as part of supply contracts and apartment purchase contracts, right? stephen: a small-scale protest for wealth management products like this, whether it was a ponzi scheme tied to peer lending, these are not uncommon in china. but because the government put such a high premium on social stability, and there is this added emphasis and attention to a common prosperity and protecting the rights of retail investors, the government is clearly taking notice of this at a time when, of course, bondholders are sweating it out right now over evergrande, the world's most indebted developer with more than 300 dolla

vonnie: this is "daybreak asia." i am vonnie quinn with the first word headlines.ert kaplan and eric rosengren say they are selling all their stock holdings by the end of the month amid ethical concerns about their trading activity. the dallas and boston fed presidents released near identical statements thursday after their financial disclosures and showed investments in a variety of stocks and other financial instruments. both said they will invest the proceeds in diversified index funds for cash. the slowed the pace of its bond buying program slightly and what president christine lagarde insisted was recalibration that does not herald a wind down in melissa. the bank will conduct purchases at a moderately lower pace and roughly 80 billion euros a month , citing the economic rebound. officials left rates on hold and raised the ecb forecast for 2021 growth and inflation to 5% and 2.2% respectively. >> the lady is not tapering because what we are doing is recalibrating, which i will remind you is the pandemic emergency repurchase program. vonnie: oil backtracked as

let's turn to the first word news with vonnie quinn. vonnie: pfizer says data from the u.s.ael suggests the efficacy of the covid vaccine wanes over time. it says a booster shot is safe and effective. the company detailed the data in a presentation that it will deliver to fda advisors on friday. the panel is expected to make recommendations on whether americans need booster shots. a fire at achaea electricity in the u.k. has found a major cable that brings power from france. the uk's grid manager says the outage will last until at least october 13. power prices are already at record highs. an importer of power has plans -- two cables that run across the english channel. simone biles says the fbi turned a blind eye to the sexual abuse she and other young athletes suffered at the hands of larry nassar. testifying before the senate judiciary committee, biles says the system enabled abuse of more than 100 women. he was convicted in 2017 and is serving sentences that amount to life without parole. spacex is preparing to blast a billionaire into orbit along with a health care work

let's get to vonnie quinn with the first word headlines. vonnie: first word news now.ea called on russia to support more natural gas to europe, saying the energy crunch is an opportunity for moscow to show us a reliable supplier. the infancy says russia is meeting its obligations to shift gas to europe its exports to the continent are still down from pre-pandemic levels. gas prices in europe are breaking records as russia keeps a cap on the an additional flow needed to refill storage sites. a french bid to delay a pivotal e.u. trade meeting is gaining support. they assess the trade pack washington struck with australia. brussels will press the pause button. a growing number of states have backed france's requests to postpone the meeting scheduled for september 29 in pittsburgh. south korea's president, moon jae-in, says the two korea's, the u.s., and china should declare an official and to the korean war. he said this would be a key step towards an end to nuclear activity on the korean peninsula. the war, which ran from 1950 to 1950 three, ended in an armistice rather

i am vonnie clan. -- i am vonnie. this is bloomberg. shery: china will make the first sale of oil from its strategic reserves. he shares his market insights. this is bloomberg. ♪ shery: we are counting down to the start of trade in tokyo and seoul. in japan, we are watchingmihuho -- mizuho. their top executives have taken pay cuts because of it. on the politics front, it's the final week of campaigning for the ruling parties top spot. the race is fairly open and the four candidates will be doing virtual town hall meetings to firm up support. we are awaiting eco-data. we last saw manufacturing pmi at 52.7 while services pmi lagged at 42.9 in august and we get inflation data in a few minutes. we are expecting that core cpi to pop from deflation in the previous month. in south korea, the bank of correa will release a regular financial stability report at noon local time after the board meeting at 9:00 a.m. and we will be watching correa's crypto exchanges, their stocks later at the deadline for cryptocurrency exchanges to register with the

vonnie quinn. this is bloomberg.ead, the world's biggest dairy exporter considers an australian ipo as it focuses on its core new zealand milk business. the head joins us later this hour. more on evergrande as the attention turns to the offshore payment. teresa kong tells us how she expects the saga to play up. this is bloomberg. ♪ >> it might be naive to think the market does not have the potential to have second order and third order impacts. clearly with the changes that are taking place in the evergrande situation, it is concerning and there is potential for second and third order impact particularly on the capital markets and the bond markets. haidi: the hsbc ceo speaking about the impact of the evergrande turmoil. the developer says it has a result interest payment due on one of its domestic bonds but uncertainty is spreading after evergrande issued a vaguely worded statement. the focus also shifting to the payment due on its five-year dollar note. let's get analysis from teresa kong. in the mean term, we have

vonnie: you're watching daybreak us really a.rmany, election exit polls show the social democrats edging ahead of angela merkel's conservatives. the spd was the front runner over the final weeks of the campaign. projections indicate the party will win 26% of the vote. the christian democrats are set to win 24.5%. both men say they aim to lead the country's next government. nancy pelosi has pledged to pass a $550 billion infrastructure bill this week. she says she will push the measure forward on monday. the senate has already passed the bill but mcgrath are invited on a separate bigger path to spending and tax measures. pelosi says that headline amount of that bill would be lowered. >> let me just say we are going to pass the bill this week. i promised we would bring the bill to the floor that is, according to the language those who wanted this to be brought to the floor tomorrow wrote into the rule. but i'm never bringing a bill to the floor that doesn't have the votes. vonnie: elon musk has addressed china's world internet conf

let's get to vonnie quinn with first word headlines. vonnie: u.k.ohnson appears to have quelled the conservative rebellion after announcing pensioners and shareholders will take a hit to help fund vnhs. all working adults will pay more, breaking johnson's pledge not to raise taxes. >> no conservative government wants to raise taxes, but none could be in good conscience and meet the cost of this plan simply by borrowing the money and imposing the burden on future generations. so i will be absolutely frank -- this new levy will break our manifesto commitment. but a global pandemic wasn't in our manifesto either. vonnie: and the taliban have included a u.s.-does knitted terror leader in its cabinet as a formally returns to power. the terror leader will serve as acting interior minister, potentially complicating any cooperation with the united states. the myanmar shadow government has declared war against the military regime the seize control of the country in february. in a feast on social media, the acting president of the national unity government ca

i'm vonnie quinn. this is bloomberg. shery: president biden is planning to set a new course for global vaccination allocation this week at a summit on the shortage of shots in poorer countries. the move comes as the u.s. moves to get booster doses to millions of fully inoculated americans. joining us for the latest is our bloomberg editor. what can we expect from the president? >> you're going to see a push given this is a u.n. week for biden. he is going to give a speech to the general assembly on tuesday. you're going to see a push to position the u.s. at the center of the global effort once again as you are already alluding to and that pfizer deal, which is said to be in the works is of course part of that. it will double the u.s. commitment to helping countries with vaccines. there is the competing force, which is that the u.s. wants to or eventually go from a broad campaign of booster shots for which you also need vaccine doses. haidi: there is a lot of -- a lot on the agenda. the french fury we a

i'm vonnie quinn. this is bloomberg. david: bonds like evergrounde -- evergrande continue to head south amid questions about its ability to meet obligations. yvonne: up next, jeff brown thinks 2021 prices are looking good. he joins us next. this is bloomberg. ♪ david: welcome back. the big event in the ministries the opec-plus ministers meeting, and the expectation is more production and more output coming through in october. we have seen a pickup from the bottom. do we get a little more? in the question is if the bond markets can absorb that. yvonne: let's bring back jeff brown, the president of general connection fte, also worked in paris as well. do you think that if we do see that output has been raised, it looks like they are not willing to deviate the company's plans right now. can the market absorb it? >> we think they can. around this meeting, they will probably talk about supplies, talk about worry over delta variant, but ultimately, they care about price. opec cares about price, and they care about keeping the

let's get to vonnie quinn with the world headlines. vonnie: the u.s.state has criticized hong kong authorities for arresting four members of a group that organized an annual vigil to commemorate the 1989 tiananmen square massacre. in a twitter post blinken called the rest politically motivated at a blatant abuse of law. they accused the group of colluding with foreign forces. lawyers for theranos founder say she is not the villain she is made out to be. she faces 10 counts of wire fraud and two counts of conspiracy to commit fraud. claims of revolutionary blood technology at her fields are. she and her former executive order indicted. one of the federal reserve's largest internal critics of the risk and u.s. real estate was an active investor last year. financial disclosures have said the president rosenberg missed stakes and failed to disclose multiple purchases and sales. global news 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. i am vonnie quinn. this is bloomberg. she

i'm vonnie quinn. this is bloomberg. shery: still ahead, the chief asia-pacific economist joins us to preview china's activity data and other things to look out for on the economic front. up next we continue our discussion with wells fargo asset management ryan jacobson ahead of the key u.s. inflation trend this week during this is bloomberg. ♪ >> my forecasts for inflation have remained high and will begin to move down next year but i do see upside risk to this forecast. it is possible the higher price could cause longer run inflation expectations to rise above the levels consistent with our 2% goal. >> i do not think we are anywhere close to the kind of carter era double-digit inflation. but i do think we are in very serious danger of repeating almost all the mistakes of the 1960's and early 1970's. shery: both of them morning that inflation may be hotter than expected. wells fargo says we may be already past inflation fears. brian jacobson is still with us. this chart on the bloomberg showing us how u.s. and european

i'm vonnie quinn. this is bloomberg. haidi: still ahead, the head of australia's largest crypto exchange ways in, joining us later this hour. and, the big inflation debate. this is bloomberg. ♪ >> the narrative is still very much that inflation will be transitory. another report for the second month in a row that gives credence to that transitory debate. >> temporary is the order of the day. >> we still see quite a bit of pressure coming through the pipeline. >> supply chains remain disrupted. >> look what's happening with labor and wages. >> i don't think this changes much for the fed. >> it gives them a little bit of breathing room. >> i think they are sitting in a good position, regardless of which way they want to go. in reality, whether they start tapering in september, november, december, i don't think it makes a big change in our outlook. shery: the august cpi offers a small win for the transitory camp. our next guest says it is hard to argue that inflation will remain entirely transient. dana, great to have you w

i'm vonnie quinn. this is bloomberg. rishaad: on the thorny subject of taiwan, after the election of the approach china opposition party. coming up, were tracking the risk from energy supplier evergrande, and more. yvonne: will discuss investment opportunities in the post-pandemic world. that is still ahead. this is bloomberg. ♪ yvonne: evergrande bills are piling up with another $45 million bond interest payment due. the fed has question wall street banks about their exposure to evergrande. rishaad: we should just call her the evergrande editor. how do we move forward here? >> the big thing will be this bond, creditors are claiming evergrande evergrande is guaranteed by, it was sold by an evergrande unit. there is the potential for cross default here. it's debts aren't really widely known about. as you mentioned, the $45 million coupon coming due today, we haven't heard word on the coupon that was due last week. we don't have clarity on that. there's a lot of unknowns hanging over that. in the meantime were seeing some

i'm vonnie quinn. this is bloomberg. shery: still ahead, international finance corporation invest in a bond for the first time. up next, variances not worried about stagflation. chief economist christopher -- chief economist christopher smart joins shortly. this is bloomberg. ♪ >> this inflationary spike will not lead to a new regime of ongoing higher inflation. the current spike is really a consequence of supply constraints meeting very strong demand. >> we certainly have no reason to believe that this -- these price increases we are seeing now will not be largely transitory. >> the underlying inflation is not so weak as the headlining figures. >> we understand the effective rates in the transmission mechanism. shery: top central bankers downplaying the inflation threat. our next guest also agreed that high prices will be transitory. let's bring in christopher smart, chief global strategist at airings. >> who am i to disagree with for central bank governors? i think the message we actually see in the

i'm vonnie quinn. this is bloomberg. david: just ahead on these markets, at the highest level here in about six years. we are tracking the action taking place within the chinese tech space and we look at what for -- why foreign investors are buying separately into japan. rishaad: we have the global head of semantic research, and we will be talking about china's demographic challenges. this is bloomberg. ♪ david: welcome back. in case you missed it, stocks in china down from session lows. rishaad: initiated by joe biden, they had more direct engagement. the first one was in february. >> this was initiated by joe biden, and apparently they had, according to the white house, a broad, strategic discussion. again, the white house acknowledging that perhaps the lower-level discussions had not been fruitful. of course, we know that john kerry, i guess the climate czar, if you want to call him that, had talks that did not go very far. it was long on acrimony and short on progress, if you will. just raising some of these headline

let's get you to vonnie quinn now with the first word headlines. vonnie: thank you. the u.k.s set to offer a third covid vaccine dose to people aged 12 and older with weakened immune systems. this follows the recommendation from the government advisory committee get health authorities say the booster will go to those with conditions including leukemia and advanced hiv. no decision has been made on boosters for the wider population. liberal u.s. democrats are publicly attacking jerome powell's record in a bid to displace president biden from giving him a second term. how's lawmakers including alexandria ocasio-cortez as well as two dozen liberal groups wrote separate memos this week criticizing powell's fed. they are not backing a single alternative. the taliban and other afghan leaders have agreed on the formation of a new government and cabinet. an official says an announcement will come into days. we are told the taliban had been waiting for the full withdrawal of u.s. troops before making public any leadership plans. bloomberg has learned the doj is preparing a second mono

vonnie: the u.k.rime minister has overhauled his cabinet, promoting a woman as the vice conservative female foreign secretary. the country's top diplomat ran point on trade. hi covid-19 case numbers with the country recovering from the worst recession in three centuries. global news 24 hours a day on air and at bloomberg quicktake, powered by 2700 journalists and analysts in 120 countries. this is bloomberg. haidi: still ahead, north and south korea's latest missile tests and other regional security issues. shery: jeffrey halley joins us with his market outlook. this is bloomberg. ♪ ♪ shery: we are counting down the start of trade in tokyo and seoul. japan's trade balance for august is due later this hour as well as a number -- the numbers on the flow of bond and stock purchases by domestic and foreign funds. softbank made its first investment in a saudi arabia based company, leading a 125 million dollar financing for customer communication platform. we will be watching the stock at the start of the o

this is bloomberg. ♪ vonnie:.'s government has a pair they told the ruling coalition will extend the coronavirus state of emergency until september 30. emergency covers tokyo, osaka and 17 other prefectures. three other regions will be downgraded to last strict measures. covax has got its supply forecast. it says adele expect to have 1.4 billion doses by years end. that is half a billion fewer than june. covax says the vaccine rollout was hindered because some manufacturers and companies finalized bilateral deals. also faces challenges in scaling up production. the fed's largest internal critics -- an active investors in the sector. initial disclosures of eric rosengren lists four real estate investment -- multiple purchases and sales. the boston fed says the trades were consistent with the systems strong ethics rules. new york has banned the sales of gas powered trucks starting in 2035, joining california in the most aggressive plan to cut greenhouse gas emissions. all new passenger vehicles sold or leased to the

i am vonnie quinn.his is bloomberg. >> economic data continues to reflect the damage from the pandemic. some indicators, like capital spending, may be suggesting we have reached peak delta. here's what some guests are saying. >> speaking. >> the virus may be peaking. >> we see rising vaccination. >> the reopening of the economy is stuttering. >> we still like cyclicals. >> defensive versus cyclicals. >> back to a time of cyclicals outperforming defenses. >> if the pandemic takes a rest. >> we could see cyclicals doing better. >> we are hopeful. >> companies have already taken the slowdown in. >> the stock market is not the economy. >> despite debates, the u.s. travel sector posted the biggest gain in dollar terms in august of all industry groups, climbing 199% from one euro area. our next guest is bullish on the travel sector. cic executive vice president markham joins us from washington. how much can you bank on the reopening trade when we see u.s. equal data starting to sputter -- pico --eco data star

vonnie: u.s.o propose a 26 and a half percent corporate tax rate as part of president biden's three and a half trillion dollar economic land. bloomberg news learning they will propose a capital gains tax of 25%. a key democratic senator casting doubt on the timeline for pushing the biden economic agenda through congress. joe manchin says he is concerned about inflation and higher corporate taxes. >> he will not have my vote on 3.5 and chuck knows that. or is no way we can get this done by the 27th. there is so much a part -- there is so much apartness on where we are. vonnie: sri lanka has yet to name a new central bank governor after the manager announced he will step down on tuesday. his departure comes as we lanka cases dwindling reserves and struggles with and extending lockdown. sri lanka's forex reserves dropped to $2.8 billion in july after it used some to pay $1 billion worth of debt. eastern china is bracing for the arrival of -- suspending air and rail services. flights at shanghai's int

i am vonnie quinn, this is bloomberg. >> let's look at these recent delays in global shipping. are increases in transportation costs. there are two new reports that say that they could be better they -- better by $4.5 million annually. >> always the senior competition expert. >> you talk about how the government can do more. what should they be doing, what policies are needed to unlock the potential? >> thank you very much. a pleasure to be here. there is a lot that could be done. we are bringing an opportunity for them to continue to make smarter regulation and except that we know that competition is important for growth, jobs and for better economy. we bring a lot of recommendations. can they help governments if they implement them? $4.5 billion per year. if we unpacked at a little bit, that is just about prices to the consumer. that is lower prices for manufacturers, lower prices for consumers, those freight rates. we can imagine that sits very much at the pyramid of the logistics sector. it has an effect on the whole economy. it can bring a lot more benefits than that. they

i'm vonnie quinn. this is bloomberg.let's head back to joshua crabb. hope you can hear us right now. first, we are talking about the japanese markets. they rallied during the first few months of prime minister suga's premiership, but given all the latest challenges in japan, how vulnerable are japanese stocks to political risk, especially as we head to the general election? guest: from our perspective it is not a huge part of how we look at our investment. i think politics comes and goes, and so does the impact. we come back to looking at where the valuations sit. we think of it -- we think the japanese market is offering reasonable values. lots of companies have strong ip backings and we are seeing earnings distribution start to pick up for the first time in a number of months. another result of that -- as a result of that, we think it is quite attractive. clearly political change always introduces uncertainty and the fact we are seeing the market react reasonably positively at least in the short-term shows you that tha

turning to first word news, we have vonnie quinn in new york. vonnie: chinese regulators are set to have instructed china evergrande to avoid a near-term default on dollar bonds. the developer is being urged to focus on repaying individual investors. meanwhile, dow jones avoided losing agencies. it signals a reluctance to bailout the company. the biden administration may force companies in the semiconductor supply chain to provide information on inventory and sales of chips. this would be done by invoking a cold war era national security law. commerce secretary gina raimondo says the goal is to eliminate bottlenecks. house speaker nancy pelosi vowing to avert a shutdown if the white house starts readying government agencies to prepare for one. pelosi is signaling democrats may sign a stopgap spending bill without a debt ceiling increase. republicans are opposed. the house passed a bill this week to keep the government open , but republicans are expected to block that in the senate. china has sentenced a man to life in prison on bribery charges.

court from a controversial vonnie: the u.s.se has passed standalone regulation to suspend the federal debt limit through 2022. it will now go to the senate where it is expected to fail in the face of solid republican opposition. meanwhile, the house speaker must decide on holding about on the infrastructure bill. central bank chiefs have given reassuring messages on their economies while acknowledging concerns about the pace and challenges for a recovery. speaking at an ecb forum, christine lagarde and christine powell both repeated that inflation spikes are temporary. china's national development and reform commission has most to keep regulation electricity and gas prices stable. earlier, bloomberg sources said beijing was considering a hike in energy costs for factories to help ease a growing supply crunch. china's power crunch may hurt agricultural production and processing and trigger a renewed surge in world food prices. the autumn harvest is under way just as food shortages hit half of provinces where china's food is grow

i'm vonnie quinn. this is bloomberg.shaad: banning firms from enrolling new students are collecting fees until they are officially registered as nonprofit organizations. david: stephen engle is here with us. is this part of the broader campaign from the capital? >> they are not against education, i can guarantee you that. they are cracking down on the rapid expanding fee structures and the aggressive advertising to parents to get them into the schools to basically allow them to rise up the ladder, at a time when xi jinping is trying to push this common prosperity theme. what essentially the authorities are saying is that if you are an afterschool tutoring company or any of these education services that are in the crosshairs, you have to register as a nonprofit with the government, and until you do so, by the end of the year is the deadline, you cannot sign up new students and you cannot collect fees. this is in addition to the most recent measures that said local governments are going to basically set the fee structure.

i am vonnie quinn.his is bloomberg. >> coming up, 20 monopoly says investors should remain focused on rebalancing. he shares his market outlook just ahead. this is bloomberg. ♪ >> if the economy evolves broadly as anticipated, it can be appropriate to start reducing the pace of asset purchases this year. >> this year is definitely going faster than we have thought. >> the timing and pace of asset purchases will not be inclined to carry a direct signal. >> there will be some increase in interest rates. >> next year, maybe some -- >> the economy remains fragile. >> key risks for the price outlook are tilted toward the downside going ahead. >> it's time now for the week ahead. we have a jampacked calendar. we will get at least 15 central banks deciding in just the next few days. the fan will take center stage with its decision on wednesday. officials are expected to hint at when they will start tapering asset purchases before a formal announcement in november. that is with jerome powell in a tough spot, ho

vonnie human rights lawyer has been pursuing these cases for decades. e t r c handed over a list of some 400 cases. as far back as the late 19 ninety's next to nothing has happened since those those families of course have been pushing for answers, particularly in cases where amnesty was denied. mr. taylor, have a look at paragraph for eric taylor was one of those who was denied amnesty and part because he wouldn't reveal given him his orders. if this is true, of lies have been, has been told to this committee, but the state chose not to prosecute men like eric taylor in all those above him. they chose not because a political decision was taken at the highest political level post 2002. and that decision was there will be no justice. in any of these cases, prosecutors and police investigators were instructed to simply don tools mcdaniel's been seeking justice for his father's death. since the t r. c's work ended back in 2003. those attempts have been swatted at every turn. the credit for is a case in point. the investigation docket disappeared out of the