the u.k. brexit minister talked about a protocol that created checks on trade between the u.k. and northern ireland. the u.k. wants to see significant change. those are the headlines. don't forget, more details on al jazeera.com. we will be back in about half an hour after "inside story." goodbye. ♪ peter:peter: brexit troubles escalate between the u.k. and the eu. both sides agree customs checks in northern ireland simply aren't working, but they don't agree on the solution. is this a dispute about trade or politics? and couldn't risk the peace in northern ireland? this is "inside story." ♪ peter: hello and welcome to the program today with me, peter dobbie. both sides agreed to trade rules known as northern ireland protocol, good for britain to check at northern ports in ireland. the problem remains that you is a single market so trade can run freely across the land border with the republic of ireland. nearly two years after brexit, the u.k. says that arrangement is not working. the gove

u.k. prime minister in that exclusive interview and more broadly as well the yield space in the u.k. continues to grind higher. the cac 40 is gaining 0.3%. and germany, the dax is gaining 26 points. let's have a look at the sectors. the likes of travel and leisure and autos that were near the bottom in terms of the sectors. today, you are seeing flat and terms of energy. energy prices started to move marginally. basic resources gaining. the banks, you are seeing losses of 0.2%. technology gaining 0.5%. dani: i want to dig deeper into the sectors. i have imap up for us. you can see the breakdown of how the sectors are looking. the really important ones, we you have financials losing some steam. some of that has to do with the lower yields. the higher yields helping this sector out without taking a leg lower. despite the fact that this overall risk on date. consumer discretionary, we are seeing infotech do better. a strong day for tech yesterday in the u.s. and asia. some of those trends jus

it's u.k. budget day. the chancellor is raising concerns with calls to help those suffering from higher living costs. francine: let's take a look at the futures. quite a lot going on today in the trading session, partly because of the inflationary pressure which could put a dent on earnings. citigroup realigning some of the earnings forecast. the worry about u.s.-china tensions is putting a dampener on some of these equities. they are almost up and running. tom: a very clear tug-of-war now between the earnings session we are seeing. 81% of s&p 500 companies beating the forecast versus those inflation concerns. it has really been underscored in australia. we will talk about that shortly. what you saw was the three year yield getting back to levels we have not seen since about july of 2019. let's see how this is going across the european markets. the futures pointing lower. losses of .2%. looking ahead to the budget and whether there will be any rabbits full out of the hat, we look at what will be longer-ter

u.k.. u.k. is not just going to -- it is also caused by labor shortages and a need to increase wages which have not been renewed. as a result, governor bailey said that he needs to take action. there is a need of interest rates spreading. alix: is that going to stay? >> i suppose what he should do and what he will do. u.k. should -- actually, for three reasons. first, the end of september, we do not know how many people are going to be unemployed. or finding a job. second, interest rates average 0.5%, the bank of england has made it clear that they would stop investing. not only will interest rates be increased but also the bond markets will suffer. whatever more issuance the government wants to do, it will have to be at higher prices. the margin of security for the government to actually do something there. third, in december, you think you might start hiking in november. qe is still going on until december. it would be a mixed single -- signal. guy: that takes me on to federal banks. the fed h

it is u.k. by today. investors are on the lookout for any comments on energy prices, business rates, and the banking surcharge. let's just get you a little bit of breaking news. to deutsche bank, this is the beat we have been waiting for. let me bring you this net revenue, $6.04 billion, a strong beat. $5.79 billion was the headline. fixed income commodities, this is where the strength of tdk comes to the fore, $1.59 billion. will that be enough to embolden the optimistic view? here is the big piece of the chessboard. the credit loss provisions, not 117 million dollars, dramatically lower than last year -- at $117 million, dramatically lower than last year. it has been part of the narrative. credit losses coming down at 117 million dollars, more than 50% lower from where we were last year. pretax profits are very comfortable. they are confident of achieving their 2022 targets. third quarter, as they say. net revenue, 6.04 billion dollars, very comfortable. fic sales and trading is a beat. ubs is equities

for the u.k. to have stagflation on its own would require some of these supply chain issues to be particularly bad. and that is a possibility. i personally think it is unlikely. anna: does that play into your u.k. strategy? bill: we still think there is a bit of a discount on u.k. assets. the discount is persistent. whether it is the currency, the stock market or the commercial property market, i think there is a bit of a discount on u.k. assets. i think there is a lot of bad news in price. that is why we are not too concerned. i think it is a bit early for the stagflation side of the equation. raising interest rates might do a lot in terms of inflation. anna: bill dinning, waverton investment cio. coming up, duty-bound carrie lam defense covid curbs in hong kong even as singapore starts to reopen. more on our exclusive interview. this is bloomberg. ♪ this halloween, xfinity rewards is offering up some spooky-good perks. like the chance to win a universal parks & resorts trip to hollywood or orl

u.k. saying the online protocol with the divorce treaty, the u.k. says that needs to be fundamentally changed. the e.u. is saying we are trying to come up with practical fixes. the u.k. says this is not enough. we need fundamental altering of the protocol that the e.u. does not want to give. the key question is how the e.u. would react to that. would they be willing to give way on key issues? that looks unlikely. if they don't give way, the u.k. is saying we will suspend parts of the protocol because we want to protect the united kingdom. if that started, the e.u. might start a trade war with the u.k., so we are back in the realm of serious tensions approaching a one point -- boiling point. it is brexit all over again. guy: given supply constraints, we are facing a trade war. we look forward to the speech tomorrow in lisbon. as brexit tensions rise, we have the possibility of another similar event taking place, the exit of poland from the e.u. we did see the court ruling last week that sug

u.k. premise or come up or as johnson, issuing a rallying cry for action on climate change in an exclusive interview head of cop 26. he calls on world leaders to take concrete steps to protect the planet. >> we need to restrict the growth and temperatures to 1.5 degrees by the end of the century. we think with the commitments we are seeing we could do it, but we are going to need some real action. haidi: u.s. shares extend their rebound. shery: and why china may be dialing back on its economic overhaul as ordinary citizens feel the pain. haidi: let's get more from our exclusive conversation with prime minister boris johnson. he sees tough change. also saying countries must take real action. he says he's making a last ditch calls to take these last up to protect the planet. he says participants must keep alive the prospect of containing global warming to one point five degrees celsius. he says these talks were always going to be extremely tough but he's urging countries to make some hard pl

guy: the u.k. just reporting data for the day. for demand thousand 100 cases more. the u.k. now has more covert cases in france, germany, italy, and spain combined. is the u.k. just further forward in the process? we started vaccinating earlier therefore maybe we are starting to see some of that immunity fading? we are going to be hearing from the health secretary a little later on. would be better at this point to focus on, as you say, vaccinating the elderly, getting that booster shot in? is that where the risks should now be? rasmus: yeah, 100%. we are seeing a number of factors in the u.k. we have seen the rise of the delta plus variant. it is likely that other european countries will see similar pattern, but i think there's also quite a lot of unique factors for the u.k. i also think public adherence to masks in public transport is less then it is in many european countries. but i think it is important to say i don't think the u.k. is yet in lockdown territory. i think a key number to look at here is really hospitalizations. we have around 900 to 1000 hospitalizations.

the u.k. we will have to adapt to higher prices. plus, we discussed the biggest risks heading into the final quarter of the year with our guests, charlotte, cohead of investments. of next, if you have any questions for any of our guests, please send them through on ib+tv . this is bloomberg. ♪ >> inflation is not going down. inflation is hot. and you know what, if you do the statistical calculation, it is very unlikely they can get to that target. they will not be revising the target up yet again. inflation is a global issue. but i call them stagflationary wins because they need not result in a stagflationary trap if you get the policy adjustment. francine: how big a risk is stagflation as we head into the final stretch of the year? joining us now is charlotte, cohead of investment. thank you for joining us. we talk about inflation and possibly rapid inflation with low to no growth. what are the policies in place that central bank can do to avoid that --thanks can do to avoid that? -- ce

the route between france and the u.k. over fishing rights is interestingly, calls on the u.k. government to defend the she hae summoning of the french president r talks morrow and -- to discuss the disproportionate threats made to the u.k. the satellite officer will be making her way to the office tomorrow afternoon, no doubt listening to the british complaints and then presumably restating the french position. mark: the minister for european france already stating he is concerned the action is necessary. i know it is hard to predict what is next, but you have a feel as to what might happen over the next 24 hours, 30 six hours? >> let's put the french prime minister, who have slightly different language and tone. he says the ball is in the u.k. court, it is for the british to reduce the tension over this fishing room -- fishingow, which the french ambassador will reiterate to the british no doubt. can we see any reduction of these tensions any time soon? i think the answer might be not terribly quickly, and this has been brewing for a while, but the concrete rules and new real

the u.k. chancellor says his government will not pursue reckless borrowing, but with the economy hit hard by shortages, is growth already starting? we will be live. the energy crisis dominating the energy financer -- energy ministers meeting. and also a warning that the airline industry will lose up to $200 million, wiping out nearly a decade's worth of profits. let's talk equities. gathering pace over here. only down 0.3%. we are seeing significantly larger losses on the other side of the atlantic. we are continuing to see gas prices pushing higher, as you can see. alix: it is really turning into a messy monday. part of it will be idiosyncratic. facebook really weighing on the nasdaq 100, the biggest loser of the day, off by two percentage points. moderna also getting hit hard for a second day, weighing on the nasdaq 100. the s&p dropping like a stone after your factory orders and capital goods orders, even though i did not see anything in the numbers that would necessarily trigger a decline.

the eu and the u.k. sparring for a st brexit radio. london wants tscrap the deal entirely and the eu has promised to tweak parts of the deal. the deal is centered on the flow of trade into northern ireland. friends entering the final stage of its withdrawal of some 2000 troops in northern mali. 70 stage for the army to take over a key military base. energy prices are soaring all across the globe. this is meant to protect member states against those surging costs. we will have the latest coming up in our business segment with kate moody. you are watching live from paris. thank you for joining us. the united kingdom left the eu more than 1.5 years ago but the battle over a post brexit trade deal is not over yet at the center of the dispute is the northern ireland protocol which gives the land up in between the two islands. the u.k. wants to scrap the deal altogether and the eu is now offering some concessions. e tweaks to the agrment included is an of border checks, reduction of british products coming into northern ireland and less pape

ros: the u.k. both negotiated and signed the northern ireland protocol that it is now not happy with. and there has been frustration about the u.k.'s stance from some within the eu. here is france's former european minister. >> what kind of partnership is it when someone who says yes and then no? we need to have trust. we need to provide citizens, businesses with visibility, predictability, so that they can rely on their political decision-makers. ros: here is more from our european correspondent in brussels. >> i think there is frustration here. bear in mind, we are talking about member states, mep's, commissioners, so there might be a wider variet of views. but probably, there has been some concernbout the u.k. approach and this particular demand that you highlighted about the removal of the european court of justice from oversight of the treaty. the european union's view on that ishat if northern ireland will have access to the single market, the single market is ultimately governed by the arbit

as long as u.k. growth is okay, and because of better growth, not just slightly higher inflation, the bank of england starts raising rates towards the end or middle of next year. i think it would be good for the u.k. banks. the mortgage market should be happy as well. we do like the mistake u.k. banks. in comparison with the u.s., u.s. banks are more expensive. we also think the fed -- and of the market is expecting the fed to raise rates quite early, maybe into next year. we think they will wait until 2023. alix: we have to leave it there but i proceed to sticking with us. i was happy i was able to make it back to talk with you, sharon bell from goldman sachs. elizabeth warren is speaking expected to make claims of fed corruption. >> this gathered at the expense of and by legislative mandate. there is no room for even the appearance of self-dealing. every member of the federal reserve should know that without a reminder from congress. evidently, there is a problem at the fed. we don't know the scope

the u.k. economic troubles to clear out the conference with a few jokes. but is his sales pitch for a new britain all show and no substance? we talk about it later in the program. and we hear from antony blinken. our interview with him. the thoughts on the energy crisis, nato, and tensions with china. stocks rebound, bolstered by progress on the debt ceiling. and the rebound in tech shares. we discussed the market share. that conversation up next. if you have questions, send them to us. this is bloomberg. ♪ >> the problem is stagflation. that is the real risk in so many portfolios are massively exposed. there are ways to hedge their risk, arbitrage that difference between the likely nominal outcomes and those available in financial assets. >> when you look at productivity, people are not talking about it. it is booming. the idea that we don't have any gdp growth, particularly when consumers have this much excess savings, i don't see that. anna: greg henson and henry mcveigh with their very d

is that something unique to the u.k.? how are things delivered everywhere and how will we see the infrastructure being improved to support that? fiona: it has been a logistical nightmare, but one that's a bit compounded by panic buying in the u.k. u.k. consumers love a good queue, and we have certainly seen that around london this weekend. it's not a function of there not being gasoline, it is a function of it being in the wrong spot. a lot of that has to do with how it is transported in the u.k. and the fact we do not have enough transport drivers at the moment. some of that we are also seeing in europe, but it seems to be the worst in the u.k. romaine: talk about the reverberations into other commodity areas. because when we talk about natural gas prices being as elevated as they are, crude oil prices being as elevated as they are, that has a huge effect on chemicals, on metals, on soft agriculture, just things like wheat, corn, fertilizers and other ingredients you need. what are the ripple effects we have to do with?

the u.k. the health secretary sing the number of covid-19 infections could rise to 100,000 a day. he also says the government has no plans to implement mandatory covert meares to try to control the virus. >> we are looking closely at the data and we won't be in fomenting our plan b of contingency measures at this point. we will be staying vigilant, preparing for all eventualities while strengthening our vital defenses that could help us fight back against this virus. >> no military measures but he did have this advice. >> there are many more things we can all do to help contain the spread of this virus. meeting outdoors where it's possible, you can only be inors letting in fresh air like wear a face covering and crowded and close spaces, especially if you're coming into contact with people you don't normally meet. like making and taking rapid tests as making them is part of your weekly routine. >> the first line of defense would continue to be thewith ble rolled out to those who already have b

the u.k. prime minister says he doesn't want to turn away chinese investment despite concerns of some of his own lawmakers. johnson spoke exclusively to our editor-in-chief in a wide-ranging interview. they also discussed what actions the u.k. is seeking on climate change ahead of cop 26. >> when i was running london, i went out several times to china and had fantastic trips. >> things have changed. >> well, investment in stuff that drives jobs and growth in this country, other in development -- whether in development, look at what is happening in greenwich. things have taken off because of chinese investment. so i am not going to tell you the u.k. government is going to pitchfork await every over tour from china. of course not. china is a gigantic part of our economic life and will be for our lifetimes. but that does not mean we should be naÏve in the way we look at our critical natural infrastructure, nuclear power, you mentioned 5g technology. those are legitimate concerns for any governme

that's switch to u.k. politics. u.k. chancellor said it would be immoral to accumulate bills and borrow excessively to pay them, speaking at the annual conservative party conference. he said he would not make decisions based on fear, but would do whatever it takes to improve the u.k. economy. >> our recovery comes with a cost. tax rises are unpopular. i want tax cuts, but in order to do that our public finances must be put back on a sustainable footing. the worst parts of politics are driven by fear. we will do whatever it takes. i remember five years ago being told if i backed brexit, my political career would be over it had begun. i put my principles first and i always will. i believe in fiscal responsibility. borrowing more money is not economically irresponsible, it is immoral. tom: joining us now is alan wager, associate, research changing europe, king's college london. we heard from the chancellor that there is a division within the conservative party, those in the north and those in the south and southeast who wou

you can see what happened with u.k. not gas today -- u.k. not gas -- u.k. nat gas today. vladimir putin saying russia is ready to deliver whatever europe needs. the earnings story out of jp morgan was strong. we will dwell on that a little later on. he got out of the u.k. weak. it will be interesting to see how this all works its way through the markets. it takes a wild for the market to fully digest the inflation data. but the u.s. basically continuing to see higher prices. that is certainly the narrative that we need to take away from today. business and finance leaders, this is something they are speaking about time and time again, the inflation story and the prospect of stagflation as well. >> actually, the great stagflation of the 1970's, i thing there are a lot of differences. >> do i see persistence in inflation? yes. i believe it is more than transitory. >> as long as we see inflation expectations remaining anchored and no wage price spirals, we expect to see a return to normalcy by next year. >> i think the current price of oil, gas, coal prices are a serious cha

it started in the u.k. the government not borrowing as much as expected, a technical factor supporting the bond markets. yields can move lower. in canada, more aggressive on those rate hikes. at one point, we saw the two year yield jumped 20 basis points, despite the fact that it was well choreographed. you had a reaction in the fx market, the canadian dollar gaining in strength, different from what we saw in the u.k., when the bank of england got more aggressive in their rate hikes chatter. the nasdaq up by .3%. yesterday, we had a record high in the s&p, solid earnings. here, we are taking a break. tech leading the way higher, but it is consumer staples like mcdonald's out we are looking at. demand is strong. we openings are helping mcdonald's. that is offsetting some of the price increases we are seeing. at the same time, we are getting results out in your neck of the woods, looking at deutsche bank. can't really keep up with their peers, but that feels a little more idiosyncratic. oil trading a little h

the u.k. and the e.u. also met representatives from the taliban in qatar. the money will be given to aid groups, not the taliban government, to prevent a humanitarian and socioeconomic collapse. many households in afghanistan currently don't have enough food to eat, according to the world food programme. and at least 2 million children are malnourished because of food shortages. meanwhile, 90% of afghanistan's health facilities are closed because of lack of international aid. you and that's six hundred million dollars is needed to sustain basic humanitarian operations for the next few months. before the taliban takeover in august, international aid accounted for 75% of state spending. our correspondent reports from kabul. reporter: thousands of kilometers away from afghanistan, negotiations go on. following their talks with americans the delegation met you and representatives in doha. afghanistan on the agenda at this virtual g20 meeting led by italy. prime minister mario draghi warned of a hu

juliette: the eu and u.k. have raised a new round of negotiations in london over the coming days over the trade barrier in northern ireland. brussels slashing custom checks into the territory by half and cut senatorial inspections on many resales. the british say the existing arrangement is unworkable. police are considering an incident that saw five people killed into injured in a bow and arrow attack. the assailant is suspected of acting alone when he walked around shooting in the center of concord, a town about a mile from auckland. police say that officers around the country will be temporary armed as a result of the incident. the turkish lira has dropped to a record low against the dollar after president erdogan fired three members of the central banks ratesetting committee and a midnight decree. bloomberg understands the changes are about members who disagreed with the call to continue cutting interest rates despite high inflation. global news 24 hours a day on air and at bloomberg quicktake, powered by

u.k. welcome to the european market open. 7:00 a.m. here in london. what a treat. we have mark here in london as well. you will be here for the next 1.5 weeks per it i don't know how we got so lucky to have you here, but of course, you could not have picked more interesting time to be alongside us in these markets. what do you make of yesterday's tuesday turn around and some angst in the market this morning? mark: i am still struggling to catch up with these markets but what is useful for catching up is that the short-term theme we are focusing on in markets today is what we have been talking about this week and over the last 10 days. that is the idea of higher bond yields, tech weakness in equity markets versus energy prices and that is feeding through to energy market gains and equity markets as well so it's really those yields worries and how that is playing into the equity teams, the main thing we are focusing on in asia, in the short term, and the bigger picture story we will be all a

., or what is happening in the u.k.? potential growth issues in the u.k. dragging up that long and. -- that long end. guy: alix continues to blame us for pretty much every thing at the moment. [laughter] it is not all our fault. maybe the gilt market has been having it is proportionate affect, but nevertheless, not all our fault. i promise. the u.s. job report may be a contribute in factor to all of this. basically, the september number the slowest this year. there's all kinds of weird things happening in the labor market in the united states. people are not coming back into the labor market that many people thought would. marty walsh is the u.s. secretary of labor. spoke to jon ferro a little earlier on on this very issue. sec. walsh: this is a worldwide issue with the part is patient right in the workforce. we clearly have more work to do. people are concerned about the delta variant. people are concerned about their health. i think people are reevaluating their work-like balance and changing careers. guy: let's recap what we know, what we don't know, wh

the u.k. market is what you are looking at. this easing happened when we had news putin was looking at supplying more to the european market. both of them moving in tandem. how much relief can we take from this news? how much is this really a yield spike moderating? let's dig through these markets. joining us is garfield reynolds. i'm looking at u.s. 10 year yields marching higher. i do have to wonder how you interpret the move of these yields? is it really tied to the energy markets at this point, or is there something else that play? -- at play? >> there is almost always more than one thing at play. i think energy prices are very predetermined it, looking back at the way -- the co-relation between treasury yields and oil prices has gone from being negative to positive territory. and you get these spurts in the correlations, usually higher in yields or prices. right now, i think we are in an environment where oil is strongly biased to the upside. think about the fact so much u.s. oil output has not returned post-covid. there i

it will depend on the situation in the u.k. the u.k. has been managing quite well with its vaccination campaign and it is coming out of the covid crisis quite well. however, there is the brexit situation on top of that, which creates some supply chain issues and some labor issues. i'm not really convinced that the right policy would be to be a lot of tightening on the fiscal front and the monetary front. i don't think you solve the issues on the supply side by hiking rates or by being more orthodox in your fiscal policy, so we need to monitor what is going to happen. currently, there are three hikes that are expected in the u.k. market and we think it is a little bit overdone, so we are monitoring the situation. anna: thanks very much. thanks very much for joining us. let's get a bloomberg business flash. here is laura wright. >> southwest airlines has apologized for canceling more than 3000 flights over just four days. the carrier says a shortage of workers overlapped with storms and an air traffic control interruption. southwest says

one of them is the u.k. consumer, focused on their balance sheet during the course of this pandemic. and borrowing under our credit card has gone down. it has gone down by quite some measure. what we are seeing now is we are seeing, actually the number of cards being held by u.k. consumers is now higher than it was pre-pandemic. the spend level is now also higher than it was pre-pandemic. it will take some time for the balances, for borrowings by consumers, to return to pre-pandemic levels. that will have a headwind on the revenue level of our consumer bank. on the other hand, interest rates we think are going to start to move. if you think about and a simple way a bank balance sheet, it has three cylinders where we extend credit, whether it is unsecured or secured through mortgages, that is doing recently well. then it is the deposit side, where we receive cash. profitability is decide -- tied to our interest rates are. with interest rates close to zero, that is the side of the engine that really has been s

the u.k. rate hike might be imminent. andrew bailey is the governor, doubled down on a possible policy mood amid rising inflation risks. let's bring in daniel, tracking the story. a clear message from the governor and from saunders. is there anything that could delay the bank of england from hiking? daniel: sure, they could decide at the end of the day that the inflation we are talking about is going to slow the path of the economy significantly and you are left with the choice -- do you tighten and risk of further slowdown and possibly have missed the transient nature of what is happening? or proceed, just because some officials have blocked themselves in with comments? some things could slow them down. having said that, when prominent central bankers make these kind of remarks, peddling can be tricky. there is definitely something happening. manus: absolutely. thank you very much. 56 rate hikes year to date, the most since 2011. it is more of a question of who pulls the trigger first in term

here is a member of the u.k. government's scientific advisory committee speaking in a personal capacity. >> my understanding is this was always doomed to fail. for two reasons. it had a huge fun except it will toll in terms of not only deaths but long-term disabilities and illness. the second is because we have waning immunity it was never going to work as a strategy. >> the reports of the u.k. did not take enough advantage of the learning and in other countries. here is the opposition labour party shadow health secretary. >> people could see what was happening in italy and spain and germany and france. they did not understand why from madrid flyking down into watch liverpool game, but livable fans cannot fly into madrid to watch the game in madrid. other countries were making decisions we weren't and that's because we embarked on a strategy of allowing the infection to run to the population in the hope that would build up immunity. that was a catastrophic mistake. >> despite the u.k. being one of the first count

we see that u.k. as a tremendous opportunity. >> this is "bloomberg surveillance: early addition," with francine lacqua. francine: good morning. welcome to "bloomberg surveillance," on this wednesday. the inflation rate eases.

the u.k. does not want to generate -- to turn away chinese investments despite tense relations. pm johnson: china is an economic -- as a part of our economic lives and will be for our lifetimes. that does not mean that we should be naive. haidi: let -- let's get you to the start of trading with sophie kamaruddin in hong kong. markets continuing to really try to work out what's going on when it comes to the inflation front. sophie: that's the case with them continuing on the short end when you have the aussie five yield jumping to a may 2019 hi. when it comes to the stock story, take a look at the asx i 200. minors we are seeing under pressure after a three-day event. this on the back of a trading update. iron ore shipments missing estimates 5% on a yearly basis. do impart to the covid impact on labor. checking in on the owsley dollar. slightly under pressure above the 74 level. we are seeing shorts scaled back filled for rba tightening, which could push the rba back to the peak we saw in july.

u.k. has eased entry rose to 47 countries and territories that were previously subject to the tightest covid restrictions. visitors from south africa, mexico and brazil are among those who will be able to avoid a 10 day hotel quarantine as they are removed from the red -- so-called red list. the u.k. will also recognize vaccine certificates from more countries. global news 24 hours a day, on-air and at bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. anna? anna: thank you so much. juliette saly in singapore. coming up, the data stacking up in favor of the bank of england hiking rates soon. will inflation force the u.k.'s central-bank interaction? does everybody in the market now think a hike is coming this year? we will discuss that next. this is bloomberg. ♪ ♪ anna: welcome back to the european market open. under 40 meds to go until the start of cash equities trading. european futures point to the downside, but not

the u.k. has threatened to retaliate. here's the u.k. environmental secretary. >> it is very disappointing to secomments that came from france yesterday. we believe these are disappointing and disproportionate and not what we would expect from a close ally and partner. the measures being threatened do not appear to be compatible with the trade and cooperation agreement or wider international law and of carried through will be met with an appropriate and calibrated response. i am aware of reports of enforcement activity being undertaken by the french authorities and in respect of two vessels. we are looking into these matters urgently. that was the view from the u.k.. here's the french prime minister for the view there. >> i would like nothing more for this to take place. we are always open for discussion, morning, noon, and night. at the same time, i want to say to the british government that will ensure our interests and our word are respect. >> today the captain of the detained vessel was taken in for questioning. you can see him here

the u.k. says the northern ireland protocol is harming the region and has to change. the brexit minister called for the current agreement to be replaced. he left room for compromise, saying the u.k. is prepared for negotiations with the eu without triggering a larger trade war. the chief brexit negotiator will lay out a counterproposal today. the u.s. federal judges have upheld new york covid requirements in three separate decisions. the issue winds its way through the court system. the rulings rejected claims against mandatory jabs launched on the racial, medical, and religious grounds. greg abbott has outlawed vaccine mandates in the second largest u.s. state, setting the stage for a showdown with the federal government. global news 24 hours a day on air and at bloomberg quicktake, powered by 2700 journalists and analysts in 120 countries. this is bloomberg. anna: thanks very much. coming up, inflation conversation. we are on watch for u.s. cpi data out later. markets way the impact of highe

and u.k.. they managed to roll out vaccines quicker than the rest of the world and they managed to reopen their economies quicker than the rest of the world. i think they are victims of their victories because they are having problems with supply because the demand is already there, but the supply is not there to satisfy the demand. so try to think carefully when you open the market, how the market is going to react to demands. i think it is very important for the near future. >> there is collateral damage when it comes to the global supply chain, it's not just the big economies in the world, china, the u.s., russia, britain, europe, etc. there are poorer nations who can afford to buy those goods because the price has gone up. does that make a difference to how the supply chain works? >> absolutely. that's why there's this whole idea that the supply chain needs to think about supplies more responsibly. for example, when the covid situation started, a lot of big textile retailers terminated the

the u.k. looks different on the chart i'm looking at. it is something to do with supply. tell us how they have been outperforming on bond markets. mark: they had a remarkably good day yesterday. it was up to the u.k. budget, where there was announcement there would be less supply in the market. the u.k. government has enough money coming in that they can reduce the number of bonds it needs to sell in this fiscal year. that was a huge relief in the bond market. you have quite an interesting contrast going on. on one hand, the government is cutting back on the amount of bond it is selling, but on the other hand, from the u.k. chancellor, it was so aggressive, there was a risk of the u.k. commonly overheating. what you are seeing is the derivatives market is aggressively pricing for quick rate hikes in the bank of england, even though it is not going to be so much supply. the curve is all over the place. it becomes very interesting. anna: increasingly live. it discusses the live event by some of

u.k. brexit minister lord frost has been speaking within the last few minutes, indicating that he things do northern ireland protocol is broken. he thinks that we now need -- -- prepared to risk a trade war with the eu. global supply chain bottlenecks and a surge in inner gate -- in energy costs hits expectations very hard. european equity markets off their lows, but still negative. we are seeing a little bit of a fade on crude today, but basically, markets are kind of in a holding pattern, though it doesn't feel like it as we await tomorrow's cpi data. we've got a lot coming up from the fed, and we've obviously got retail sales coming out friday. alix: let's talk about inflation for a second. the federal reserve bank of new york survey just came out, and really interesting reads on inflation. american household expectation for inflation when you're out rose to five point 3%. inflation excitations three years out rose to 4.2%. both were the highest readings on record in the survey's eight-

we see the u.k. is a tremendous opportunity for us to have a significant outpost, serve our clients and provide resources across the continent. francine: has that changed because of brexit? is there anything you need to ask authorities to do better? david: we are and moment in time, coming out of the pandemic , where there are a handful of things going on -- labor issues, a reflection of the transition, supply chain issues, some of this stuff is transitory. we are adjusting and dealing as anybody else is. leaders here are thinking about at the same way as it is around the world. francine: when you look at the u.k. and green investments, you have been extremely involved in carbon offsetting. david: it is important is important that governments around the world partner with the private sector to try to get capital directed toward innovation in a way that we can accelerate the climate transition. we need policy. we need to put a price on carbon. there is an enormous premium for certain green technologie

we have seen this in the u.k., new zealand. more recently, canada, australia, now the ecb is getting dragged as well. tom: there may be a point in focusing on wages and labor. significantly more than 20,000. thank you very much. thank you. more on that decision. that is it. "bloomberg surveillance: early edition," is up next. this is bloomberg. ♪ >> now is the wrong time. whether it is billionaires or average consumers. >> an energy shortage. i would not make it a crisis. i think this is a momentary mismatch between energy supply and demand. >> we have seen recovery from the impact of q3 from some of our supplies -- our supply chains that caused a deeper impact. i am optimistic that we are worse the throw bit.

u.k. natural gas down 10%. huge moves. the move on the downside for a smaller percent of move. 244 is now where we are trading. brent crude bouncing back. it will not really supply from the strategic reserve statewide. they four basis point move to the downside on btp. a brilliant bloomberg reporting on the fact it looks like the ecb will have a much more targeted post pepp program to buy european bonds. that focuses on btp and the bond market. let's take a look at individual names. dhl is the name you need to think about, talking about a significant pickup in the cash flow. that is certainly a story we are watching. you cannot see it but i promise deutsche is on the move. also iag. iag up, looks like they will be going for a low-cost airline based at gatwick airport. then there is centrica, which is also a focus. interesting notes being published on what is happening. there is an upgrade to bank of america out with the upgrade, the stocks up to .26%. you are seeing a number of smaller energy providers in the u.k. failing.

medical experts are calling on the u.k. government to restore social distancing but london so far is refusing to do that. relying instead on booster shots to protect the most vulnerable. >> this is how the u.k. wants to get through the winter. a third covid-19 shot for 30 million vulnerable people. but many vaccination centers have closed and the vaccination program is sluggish. a 76-year-old died while waiting for his booster shot. his son blames the slow pace. >> he was litally going out shopping, going into s hospital checkups. and he caught covid. 11 days later, he died. i think a booster might have saved his life. >> case numbers are the highest in europe but a vaccination rate above 67% has kept down severe infections and death. after living all restrictions in england, the government strategy seemed to be working but the tide is turning. the u.k. registered 223 deaths on tuesday. nearly a thousand people were hospitalized. >> we have relatively low social distancing measures compared to much of europe. the other big

the u.k. government has announced plans to make the u.k. carbon neutral by 2050. millions and millions of pounds being put towards the switch to electric vehicles. let's continue with that story. in less than two weeks, leaders will gather in glascow for the next big u.n. climate summit, cop 26. climate change is a global problem that will require a global solution. not all countries carry equal responsibilities. the world's biggest emitters can make the biggest difference. -- come from for territories. china, the u.s., india and europe. the european members and the u.k. produce more than 7% of all co2. for the latest in the series, this considered with the eu is doing about that. >> the overarch action goal was and is to make europe the first climate neutral continent in the world. know where we want to go. what we need to do to get there. ross: some progress has been made. the eu reduced its emissions by a quarter, beating at some target. now the aim is to reach 55% of 1980 levels by 2030. it aims to get 40% of this energy from renewables by the same point. the

you say the u.k. is doing the best, still 8%. there's probably important lessons to glean from australia if it is moving backwards to prevent other nations from doing the same. what did you find about some of the drivers behind that widening gender pay gap? nabila: very interestingly, the gender pay gap and australia, which has actually risen in the past year, now stands at 31% when you count full-time, part-time, and over time for all workers worked. and the biggest reason that i'm hearing from experts for this is discrimination, so flat out sexism. that makes up about 40% of the gap. another 40% is made up of the fact women have to leave work to have children and take care of children, and the cost of childcare in australia it is so high and actually higher than the u.s. and u.k., that often it makes more sense for the woman to stay-at-home and take care of the kids for a few years rather than pursue her career. so that's a big issue, as well. and then you also got gender segregation in the workforce. so, australia has a very h

we are already in a situation in the u.k.. we will have potential he not a labor shortage, but a skills shortage. we are basically going to transition from a gap we've got the moment to filling those gaps. that could be really painful for business. alix: no kidding, especially when input costs are bananas. if you are a business, how do you manage that volatility even if you wind up getting supply? some breaking news here i want to share with you, ark investment is going to close its new york office october 31 and moved to florida, effective november 1. ark investments is where all the cool stuff is. that's cathie wood. and they are going to florida. they are cutting bait and running. guy: they are not the first. you could argue they are not particularly innovative in this idea, are they? there was a piece on the terminal couple of days back about how this move south is stoking tension locally, and both florida and particularly in texas. i think there are going to be downsides to this move. we will see exactly how it works out,

on the other site, in the bond market, a ferocious move led by the u.k.. u.k. growth will be better than expected this year. you have a budget that is bigger than expected but you have some serious buying coming in. yields down by 12% in the u.k. even though inflation is at a three-decade high in the u.k. possibly this year, but we will dig through that. francine: also, we are hearing from the bank of canada who says they will move away from quantitative easing to reinvestment but have also adjusted the time for those rate hikes. a big day of earnings on both sides of the atlantic. senate democrats unveiled a billionaires tech proposal. annmarie hordern has the details. escalating tensions between beijing and washington as top military officers called china the biggest threat to the u.s. michael mckee also digging into the strengths we see in capital investment. abigail doolittle is looking at earnings highlights. after weeks of negotiations among democrats, they are closer to a plan to fund president biden's social spending by shifting the tax burden to the we

u.k. chancellor rishi sunak is warmed over the scarring to the economy. we look ahead to today's jobs data. good morning. welcome back. the party is over. we are one bad red headline away from the bond market implosion. there is one line from morgan stanley. let's give it to the viewers. there is a disconnect between the fed and investors. the fed and the investors have embraced the view that inflation is transitory, a few that is not shared by the consumers. the consumer is shaken under pressure. good morning. dani: good morning. if you want to take the other side of the trade, if you want to be an optimist, you also have good people in your company specifically jamie dimon. he was talking at a conference yesterday. the chief saying there has been extraordinary spending from the consumer. 20% above pre-pandemic levels. he thinks that that will stick around, that that will continue to turbocharge the rally we are seeing. not only is there some divide between the equity market and the consu

and in the u.k., losses of 0.6%. energy prices up in the u.k. and across europe, they are seeing a record of 100 euros per megawatt hour. utilities are the only sector that has gained currently. up 0.2%. bottom of the list, banks. the yield is currently a load 0.5%. autos lower by 1.6%. we were speaking with the ceo of daimler. they are also talking about supply chains remain constrained. francine: china increasing the stakes on the energy crisis and bloomberg has learned that government officials have --. let's bring in bloomberg's juliette saly. this sounds desperate or sounds like they are very worried. juliette: it underscores how worried china seems to be about this critical power crunch. driving up commodity prices. impacting the coal supplies as they have been asked to continue to put above capacity even if they are at capacity. we have heard from the supervisor who held an emergency meeting saying blackouts will not be tolerated. ahead of the october 1 week long golden holiday. we continue to see the story of demand outstripping supply.

u.k., very liberal. >> the u.k., if you want to find some positive in the numbers, -- that is digging, right? we are getting boosters into people. we are vaccinating children. that should reduce the infection rate. . hospitalizations are still below 1000 a day. germany is an interesting one. it is between the two. it is not as liberal as the u.k.. some states require a vaccine passport. others don't. taylor: it is interesting. in the u.s. we are getting a mix of j&j, moderna. if you do not like what you got u.k. and get a dose of a different manufacturer on the booster. what are you hearing is going to be the path forward for boosters? >> in europe we have had very little of the johnson & johnson vaccine so overhear it has been either astrazeneca or mostly pfizer. i think most people will get a third shot of pfizer. in the u.s. the recommendation is you should take the same vaccine if you are j&j -- for your second if you are j&j or for your third if you are moderna or pfizer. guy: how quickly will that be felt? my oldest son has been vaccinated. many of his cohort are struggling to f