What it will take for the stocks to shift gears. And a problem with oil. Extending oil cuts through the end of the year. From new york, im alix steel with guy johnson. Welcome to Bloomberg Markets. It has been a pleasure. You look great. It is nice to see you back. We missed you. Guy i am back from greece where it is raining and very hot now in london. I feel like i am doing something right. Alix you made it through the strikes. Guy i made it. I think the story with strikes around the auto sector and with the airline sector, i think they are synonymous. These are industries that have pushed back really hard on their staff over a number of years and they are now paying the price. We have data coming in. We have got the ecb coming up next week. 2. 1 out of the states. Durable goods 5. 2 . That is right in line with expectations. Extransport coming up at 0. 4 . The durable goods numbers are in line. The factory numbers look good as well. I do not think the market will react much. The oil story is a different matter. This will start creeping into the inflation data and a lot of people have been talking about the fact inflation is going to come down. With Higher Oil Prices and higher for longer prices, that may be called into question. Alix you wrapped in strikes in Different Industries and are you looking at wage pressures being filtered through . That is higher for longer expectation environment as well. I have got to say for the administration in the u. S. , there is nothing they can do. Guy they have a massive problem. Alix they have nothing to combat this. Guy you could maybe take oil out of the spr but that feels it is a busted flush. There is not much and not as much there to do on that front. I think it is going to be interesting, but it is going to be something that around the world people Pay Attention to. I filled up the car the other day, sticker shock. They are high. That takes us to our question of the day which you alluded to. What is happening with the auto sector . I think it is an interesting story post labor day. We need to talk about the strike story and what is happening with the energy story and what that means. European autos are having a tough time. The auto show taking place in munich. The german chancellor, the pirate as they are calling him now, so they should not be afraid but they cannot get into gear. Craig, i am going to start with you. The european carmakers are facing a challenge from china. The u. S. Automakers have got a more immediate threat they need to deal with, the strike issue. Post labor day, how big a threat is that actually . Craig with gm, ford, and still stalantis they have been able to produce like they did prior to the pandemic. It took about long to work through the semiconductor shortage. They have maybe been able to build up inventory. We have started to hear some overshooting and maybe that will come in handy if we have a walkout. Guy do you think we are going to have a strike . Craig the way the rhetoric is coming out of the United Auto Workers union, it sounds like an avid ability. Alix talk about the downside to the equities. I appreciate they have been raking in the profits but still, the have to make this big shift to evs profitably. In facing down a double digit wage increase as well. That is why the Biden Administration extended funding to those automakers that can aid them in the ev transition. These labor talks are about fears from those workers that are worried about their jobs coming into that transition. They are asking for higher wages to come in and that feeds into the wider story. If you compare this and this is an excellent analysis by my colleagues automakers in the u. S. Have underperformed discretionary stocks because there is so much in the fray. They have higher production costs relative to the chinese that are taking up a much larger portion of the industry. There has been a lot of concern. They are projected to increase their dominance of that industry and have lower costs in china by 25 . Guy the thing i do not understand is why would you want to own a u. S. Auto stock . You could own tesla. Tesla is out there to make market share. Tesla is cutting prices, coming out with new brands, it does not have the legacy issue. Why would you want to own a u. S. Auto company when you could own tesla . Nour why would you not . There is a lot of diversification involved. Automakers in the u. S. Currently, they are legacy companies, but they have also performed relatively well. If you look at analysis through the port function, you will see that ford and, for instance, General Motors really underperformed relative to total returns to the total index. Potentially, there is some appeal if they were to whether those strikes in the shortterm. There is some appeal in terms of valuations. There is a lot of optimism baked into the u. S. Stock market. This is another issue. It is almost shifting gears. Larger voices in the market are pointing to a softer landing in the u. S. That is going to point to better manufacturing and where do you go . You go to the automakers that you know. Alix you know what hurts manufacturing costs . Higher oil prices. This is interconnected today. You have potentially higher wages, then Higher Oil Prices, and that ends up feeding into inflation. It also points to the messiness of the transition the whole world is going to be under as we go green. Guy absolutely. Alix that is more expensive. Guy but you wonder whether that messiness, whether that inflationary impulse, is aided and abetted by the inflation reduction act. You look at what the uaw is saying. They are in the driver seat, excuse the pun. Biden said, you need to build these in the united states. Great. We will make sure our staff benefit. Is that the issue . Joe biden has set a trap for himself. Craig you have a situation where a lot of the battery plants going in the u. S. As a result of the ira are going down in the south. The uaw has had a heck of a time organizing plants they have not already represented. What can they bring to the table to convince what are joint venture companies, gm, ford, joint ventures with Foreign Companies who have little interest in seeing their labor costss go up. What can they do to bring these companies to the table and convince them unionization is a good idea when we know the hyundais, toyotas, teslas of the world are not going to be organized anytime soon. Alix this leads to the question is the market underestimating higher yields . Nour absolutely. I think that is a big part of it. We have been talking about how inflation is about to research. We are seeing different aspects narrate itself in different facets. You talked about oil. That is led by saudi arabia and russia extending cut. Saudi arabia until the end of the year was going to extend by one month. These rising yields potentially. 2 the fed point two the fed keeping tightening efforts for much longer than the market anticipates. Money markets are expecting the fed to cut within the next year and that is not translating into the different aspects of the economy. You are seeing a lot of concerns and that is translating to some complacency, particularly in the u. S. Stock market. Alix such a fun way to set the conversation. Craig trudell and nour al ali, thank you. Why is the auto sector running on empty . We lead that into the yield conversation with subadra rajappa. And we will hear what julie sue said. We remain hopeful the parties will resolve their issues. Strike is part of that and everybody would love to see a path forward where the union and the employers do the right thing. This is a moment in which Union Members are seeing historic profits coming out of the pandemic. I think the parties have to remain talking. Explore endless design possibilities. Find your personal style. Endless hardie® siding colors. Textures and styles. Its possible. With james hardie™. Its easy to get lost in investment research. Introducing j. P. Morgan personal advisors. Hey david. Connect with an advisor to create your personalized plan. Lets find the right investments for your goals okay, great. J. P. Morgan wealth management. This situation is really scary for a number of reasons. First, you have a very activist new uaw leader who has said inflammatory things that is beyond the pale in terms of any auto company. Alix that was dave ratner, chair and ceo talking to david westin, on the uaw strike. He led the bailout of the u. S. Auto industry during the crisis in 20082009. That brings us to the question of the day why is the auto sector running on empty . Joining us is subadra rajappa. You are a rates person and not a car analyst but all of these stories intersect. You have a potential recessionary fear if you have a full strike. 42 increase in wages. That is a wage inflationary scenario and Higher Oil Prices. How do you wrap that into thinking about the bond market . Subadra it is difficult. This is a moving target. We have had several strikes, ups, and others. We have had issues with the trucking companies. It is really hard to gauge what is going to be over the long run. Wages have been high and sticky. We have not really seen a precipitous rise in wages. But broadly speaking a combination of both Higher Oil Prices as well as pressure on the labor market, very tight labor force, is going to put pressure on inflation. That is where we are trying to gauge how much of an impact this is going to have on the market. Guy good morning. It is guy. Savings coming down sharply in the u. S. Spending has held up as that money has been spent. What kind of wage story are we going to have to see to keep the consumer on track do you think . Subadra wages are running between 4 and 4. 5 . We have not really seen an uptick. It is clear that labor has a lot more bargaining power. They have been able to win a lot of the concessions in these negotiations. But if you look at the broader spectrum, you are seeing the economy different parts of the economy perform differently. The consumer is coming under pressure. Student loan moratoriums will end at the end of this month. Summer splurge, is it going to last . Saving rates are lower and the consumer is coming under pressure going into the fall. Alix with all of that in mind how do you know what is fair value in the bond market . What should the 10year retrading at and how should you invest . Subadra we are calibrating our expectation for where the 10 yield is going to end. Fair value is between 4 and 4. 25 . Given how strong the economy has been and how resilient consumers have been in the face of higher Interest Rates, and the fed is also committed to keeping this on hold for longer at these higher levels, i think that is going to keep Interest Rates at a higher range than we anticipated coming into this year. Guy lets talk about what is happening at the front end. If the feds done and there is evidence to suggest that may be the case if the fed is done, is the twoyear great value right now . Do you switch into the twoyear or do you go for more duration . Subadra the twoyear is still a smart value. The fed could hike another 25 basis points. Maybe the november meeting but that basically tells you that twoyear yields are close to peak levels. We are looking at either the curve steepening out one way or the other. At least over the nearterm it looks to me like value is going to be in the twoyear. There is a potential that the 10year part could rise further. But over the longer run, if we expect recession in 2024, yields across the curve are going to be quite attractive as well as diversification given that risky assets will come under pressure. Alix you said fair value for the 10year at 4 , 4. 25 . We are at 4. 25 right now. Do need to buy the 10year and sit tight . Subadra perhaps. It is a question of timing. You look at the first half of the year, you probably did well during the Regional Banking Crisis when 10year got down to 330. We are back near the higher end of the range. Could we push higher . Perhaps. Yields will probably had lower and this might be one of the better buying opportunities. Guy always good to catch up. Really appreciate the insight. Thank you very much. Subadra rajappa, head of u. S. Rates strategy. Manchester united stock is being pummeled. Stocks under real pressure. What are we going to talk about . Chips. They are making breakthroughs in china. It looks like they are managing to sidestep u. S. Sanctions. We will talk about that, next. Worth watching. This is bloomberg. When you automate sales tax with avalara, you dont have to worry about things like changing tax rates, exemption certificates or filing returns. AvalarAhhh Ahhh Ahhh ahhh alix it is 21 past 7 00 on the west coast. We have the top tech stories. Silicon valley starts, i think it looks nice, morning. Ed ludlow joins us now. Lets get to huawei. They built an advanced seven meter processor for the new smartphone. This is a slap in the face to the u. S. We dont need you. We can do this on our own. Ed this is the best, powerful, made in china smartphone chip. It is in the huawei mate 60 pro which was released stealthily last week. What bloomberg did is we went to a Research Firm called tech insights. We said here is a handset of the 60 pro. Tear it down and see what you find. Lots of emphasis on the processor. What we know is that it was made on a seven nanometer node. That is two generations removed from the cutting edge, which is three nanometers, but there had been speculation last week when this handset hit the market that it was five nanometer. That was a surprise because the market and industry for semis says, to the best of our knowledge, china has not got to five nanometer. This confirms it is seven nanometers. It is made by semi manufacturing international, chinas biggest chipmaker, but they are still not where we are in the u. S. But the question is, is any of this caught by sanctions . Guy what is the answer to that question and is the gap of what is being produced between the u. S. And China Growing or shrinking . Ed the answer is we dont know because we asked the u. S. Commerce department and they have not responded. But one thing about Semiconductor International core is they are bound by the u. S. Technology curbs. Is the gap between the u. S. And china shrugging . Not on this basis. Jeffries has a note out looking at what we have said, looking at this 60 pro. The handset sold out within hours. What that tells is that they had small inventory. Not just two generations behind in chipmaking but they are not able to produce it at volume. Alix can return to nvidia . Ed please. Alix the founder had an interesting chat with bloomberg and talked about how nvidia could wind up being too big to fail but too big to succeed. It put a textbook story of big market delusion. What do you make of this . Ed he is known as the bubble hunter. That is how he made his name at Research Affiliates llc. His point is really simple. The runup in the stock at its current valuation is us pricing in all of the capex. The runup is extreme. This has all of the hallmarks, based on his experience, of a bubble and no one is seeing it yet. Guy Goldman Sachs differs. Ed differs. They have a note out saying ai valuations are high but they are not extreme, quote. His logic is this. Because the runup is not outside the bounds of what they consider to be extreme, the drawing is that we are really early in this hyper scaling. Committing capex to develop highlight which models and we will continue to see that expansion which will push up valuations even higher from where they are currently. Alix all right. Guy ok. I think i got it. It might be a bubble, it might not be a bubble. Alix time will tell. Guy it is one of those things, like recessions. You can only tell retrospectively. Ed if there is one, it will be my first bubble and i am looking forward to it. Guy they are certainly having lived through a few they are entertaining. The runup to 2000, i remember being in a bar in the Berkeley Hotel and this analyst ranting about how the world was being changed and the stuff was going to the moon. The valuations were crazy but could be justified. Alix that is where you got the gray hair. Guy but i do not get to go to the bar this time which is disappointing. Alix excellent. Guy you can have that experience. You should go to a really nice bar and it will be populated with those people. Thank you very much indeed. Ed i will. Guy Manchester United stock being pummeled right now. I think there was something in the mail saying the gl azers may not want to sell. The move is substantial. Alix does not want to talk about sports. This is mna. Alix but it is valuation. Guy back to the auto sector in just a moment. Is i bloomberg. Own online store. I sold that. And you can manage it all in one place. I built this. And it was easy, with a partner that puts you first. Godaddy. Nice footwork. Man, youre lucky, watching live sports never used to be this easy. Now you can stream all your games like its nothing. Yes [ cheers ] yeah woho running up and down that field looks tough. Its a pitch. Get way more into what youre into jennifer the reason why golo customers have such long term success when you stream on the xfinity 10g network. 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Alix we are about one hour into the u. S. Trading session finally back. Simone shares in the red to start in the united states. We are expecting a pretty negative september if the past 30 years of history is any indication. Down for the month of september. Certainly todays vibe very much in line with that. We are watching we work here, the Company Completed a one for 40 reverse stock split late last week so this is the first day its trading after that split was completed. This company under a lot of pressure whether or not it can continue as a going concern. Something thats been raised recently. Shares fall after that stock has picked up. The major story on the trading session has been what has happened in the oil markets. The expectation was we could see saudi arabia extend its production cuts at least in the month of october but the country saying we will extend them through september. Russia saying it will extend its export cuts through the end of the year as well and thats what were are seeing so much interest on the longer dated derivatives, of those in the blue, those are for november. The ones in the white are for october. We see brent crude passed 90 a barrel for the First Time Since last november. Having the impact on some energy names. Chevron had been fearing the impact of some of those strikes that could potentially happen in australia. Shares up over 1. 3 . Exxon, conocophillips in the green. The S P Energy Index was the only sector of the s p eking out gains today. Guy thank you very much indeed. Want to get back and talk about whats happening in the car sector. Mercedesbenz unveiling in eeev which has a longer range than any tesla model currently on the market. Bloomberg spoke with the mercedesbenz ceo yesterday. Our goal is value over volume we are very careful about how we go to the market and as you can see for the First Six Months of this year thats been working quite well. Were focused on value for the customer and adding the customer expects from mercedes a bit of a roller coaster but something you can depend on. Something we continue with the strategy. Guy value over volume. Thats been the strategy thats come out of the chip shortage. Why is the auto sector, you look at the stock sector. Looking at the u. S. Looks at the market doesnt want to buy the sector in advance of the uaw auto strikes. Those could be happening really soon. Global auto analyst at rbc capital markets. I think it may be a vocation break. Sorry about that. Deepest apologies. You can blame the vacation. The u. S. Story is really fascinating. This potential strike coming up, looking really wary around what can happen here. Is this one of the situations we want to live stock now in the expectation this strike gets sorted out and if you do wait, how big of a pop could we see. The issue is this kind of a chicken or egg thing. If its waiting for resolution that means it could get worse. This could be a lot of negative headlines around this. Political gamesmanship on two sides. You wait until things get worse and buy at a better entry point or just by now knowing things will be higher. I can see both sides of the argument. A name like gm is really wellpositioned because they take advantage of the ira with a huge set of launches. Alix my question is what do their operating margins look like in the future . I understand the subsidies for evs, but then if you look at higher wages or pension reform or 32 hour work weeks, thats a productivity labor hit for sure. Tom no doubt about that. Everyone is looking at 2019. What happened was you had labor cost but that got offset by the pandemic which allowed these Car Companies to do something. If pricing falls, that could be a problem because then higher wages dont get asked. For has this other website. They show the labor cost as a percentage of their total cost. The impact surprisingly isnt as big as 1500 basis points which is nothing to laugh at but its not Something Like the doomsday scenario. The more like the cherry on top of price mix coming down the could make things worse. The thing people are most scared about his price mix coming down not really wage inflation. Guy our u. S. Automakers more insulated than european automakers to the threat china poses. The ira has a whole range of issues built into that the promote u. S. Manufactured vehicles. The chinese clearly are building a lot of eeevs right now and doing it cheaply and efficiently. Where is the biggest hit going to come, sit with european automakers from that chinese threat or u. S. Automakers. Tom absolutely european automakers. You have to ask yourself why isnt there a european ira. Some people say are really dependent on china. Other say its politicians in europe who dont like the Auto Industry. In the u. S. We do know they are more insulated against chinese opms coming in. I think the premium guys in europe will do better, that brand is really important in europe as we all know. Theres a reason were no have been talking about being protectionist against china. Massmarket forecast will be more threat by this threat. Alix the way its been described is the u. S. Just throws money at the problem first and asks questions later. Maybe thats because thats how the European Commission is set up. That poses a lot of issues when youre trying to move quickly. Guy theres two different car sectors in europe. The massmarket guys. I remember talking to sergio and he said the biggest hour the europeans made was to let the koreans come in and it completely undermines their market. You do wonder in order to protect the high end guys working well in china, in some ways the european guys are throwing the massmarket guys under the bus prayed what do you think . Tom i think you nailed it. The one thing i will say is i lived in europe for four years. You dont see a lot of japanese, you do see them in the u. S. When you go to italy you see fiats, i do think there is some brand loyalty. I think they will be a formidable threat. Are they just going to displace the japanese may be the koreans . Maybe that happens. But make no mistake these governments need to figure out what exactly they will do if they want to protect their native Auto Industry or just let them suffer a tough consequence. Alix or just talk tough. We appreciate it. A great entree to our next conversation because we will look at how ud risk funding the Energy Transition which is something the Auto Industry is in the middle of now. This this is bloomberg. Alix you are looking at live pictures of the principal room. Coming up, the ge ceo joins wall street week on bloomberg television. This is bloomberg. Public finance will not suffice. This is true for europe, but it is also true for emerging markets and developing economies. Private capital will need to be mobilized and scale. At scale. Green bonds are widely recognized as providing part of the solution. This is why we just put forward a new proposal to attract private investment. It is called Global Green Bonds Initiative so we are ready to share our expertise with teams on how to develop your own green bond outlets and at the same time we will push on the investors side together with the European Investment bank and our member states, we are allocating one billion euros to derisk private investments. Alix European Commission president speaking to the Africa Climate summit in kenya and that all revolves around how to fund the Energy Transition. You have older Profitable Industries winding down and Capex Industries wrapping ramping up. Joining us now is marie freier, a barclays global head of Sustainable Impact investing who is literally the person to help bridge this gap. Wonderful to see you in person. You just heard ursula play out her plan. How are you trying to mobilize Global Capital . Marie she was talking with the private side and the climate tax side. Bringing solutions whether its technology or increasing asset heavy Business Models. They need to be scaled up so they can be deployed in those legacy companies. So they can really think about how they encompass our businesses. Enacting decarbonization journey. Theres a specific gap of putting companies the is to make more software bays and licensing type Business Models and companies that are building these assets. Its not like Silicon Valley we are thinking of adding users to a platform. You are building real stuff. Energy, Storage Facilities or hydrogen businesses, etc. One issue is around private Equity Capital so you can roll off the equity preinfrastructure investments. As where i personally see a gap. Looking to step in and bring private equity expertise and infrastructure to approach that gap. Guy how should i think about what these stocks are . If you could wrap around them, how should i think about them. Alix most of them are private marie i think going into scaling thats a slightly different issue. Weve got the technology. Is it fully derisk, maybe but especially the current market environment also the commercial, scaling peace comes in and saying how can we invest comfortably with that and how do we unlock new pockets of capital. Higher rates do they hurt this case. Marie it has become more challenging i think thats fair to say. For them to raise in the past 18 months has become more challenging for the investment firms have become more selective to step in. Tech risk is something they are less comfortable with. So what are the consequences private rates are taking longer. They also want to see Revenue Generation earlier on already today and even from a profitability perspective, 18 to 24 months out. Right now ideally they want to see that today or at least a very clear path to that in the near term. Guy who do you think will be the ultimate investors in the space . Where is the money going to come from . Marie we need to sort of solve this together. Definitely prime equity Venture Capital in the earlier stage. Sovereign wealth and Pension Funds are also keen to get heavily involved. The concept we touched on, how do we derisk it and a wider pool of investors pa to deploy. You have certain requirements when it comes to risk return versus their investors. Thats where they need help from government but also the insurance sector to aggregate that risk. Alix if you look at the traditional stuff. Youve automakers talking about traditional evs but theres these other problems that come with it. Great to build these Wind Turbines but we are seeing what happens at the other end of the cycle. Going back to slurring solyndra from a decade ago. Will we be in this space . Will this tent their ability to derisk . Marie fair to say in the last 18 months some investors have challenging situations. And again that sort of adding to the challenges. I would also they will there will be failures, not all Business Models will work out. If we go back to the problem state of how do you decarbonize the Global Economic system we know this will be a puzzle with many pieces and many things that will need to explore and pathways to try and go down before we know Different Solutions will be. Guy lets take the wind turbine. Has this industry moved too fast. The industry itself has not been robust enough. Its trying to scale too fast. Trying to build bigger and bigger Wind Turbines too fast. Is there an element of the moment the Industry Needs to settle down and actually build in some redundancy, some robustness into the accounts of how this works. There are fewer surprises and once you get fewer surprises is it going to be easier for longterm or Patient Capital to get involved. Marie have they moved too fast. Arguably where we need to be in terms of the net zero pathway were still moving too slowly at the global level so im not sure we can step back in terms of the urgency but indeed i think different pockets and different owners that are appropriate at different evolutions of technology and some will have high risk appetite. And then as these technologies and solutions mature, there will be different correct owners or appropriate owners given the risk for those assets further down the curve. Alix and the insurers help offset later investment. Really appreciate it. Keep it here. We will have more coverage coming up tomorrow. Stay with us. Coming up, a softbanks arm seeking a downsized ipo still expected to be the biggest listing of the year. This is bloomberg. When you automate sales tax with avalara, you dont have to worry about things like changing tax rates or filing returns. Avalarahhh ahhh you got this. Lets go. Gobble gobble. Ive seen bigger legs on a turkey rude. Who are you . Im an investor in a fund that helps advance innovative sports tech like this Smart Fitness mirror. Im also mr. Leg day. 1989 anyone can become an agent of innovation with invesco qqq, a fund that gives you access to nasdaq100 innovations. I go through a lot of pants. Before investing carefully read and consider Fund Investment objectives, risks, charges, expenses and more in prospectus at invesco. Com. Alix time for wall street be. Today we are looking at arm ramping up of the biggest ipo in a year. Joining us is sonali basak. Sonali there was a point in time where earlier we were talking about arm looking to raise 10 billion. The marketed range would bring them in at 4. 87 billion. At a valuation perspective youre looking at a firm value to potentially 50 billion or more. How does that compare . Softbank a month ago just a couple weeks ago had bought back its share from the vision fund it did not own and that value transaction at six 4 billion for arm. This is significantly below that price. It is above the price that they agreed to sell arm to nvidia four. Also its interesting about finally having these numbers as well and bloomberg story points this out as well, the interesting part is from a price to earnings is still over 100 times its trailing earnings for the last 12 months. If you compare that to synopsys and cadence designs and other companies in the u. S. , of companies trade below. Guy this was meant to open the door to other ipos. If this is what is happening here what does that tell us about the other ipos in its wake . Sonali it doesnt mean the door would be closed but the door was only closed for a little bit longer. About a three week span where you really have to file if youre going to get moving this year. We have cpi next week, Global Growth concerns. Then make a listing challenging in this market. If you dont do it now than when instacart has taken it down. There valuation adjustment has come to the floor plus some profitability. The lack of supply makes it intriguing for investors but it is choppy or than it looks. Alix are we seeing a lot of issuance come on now. Sonali it is definitely worth talking about that relative to the debt markets because theres a little bit more success. If you look at the way junk debt has traded riskier debt, there is some safety there that is given the investors some confidence in investing in new deals. For the highgrade sales theres a terminal story, but another 15 billion or so with the leverage loans expected this month. That does include some highly anticipated deals which would add another 5 billion to the pie. An interesting amount issuance ahead. Talking about cpi and Global Growth concerns getting ahead of any potential future problems including cpi, potential higher Interest Rates is the name of the game. Guy fascinating just to see what happens here in the forces coming together. Sonali bassett joining us on a busy week for those guys selling those bonds. What is happening in the market right now. European stocks down. Up by 8 10 of 1 . The saudis on the russians pushing their reduced crude outlook. Prices go up. Its not that sticky this move we are seeing. The Energy Sector on both sides of the atlantic is definitely benefiting from that. Yield story, continuing to push its been interesting we have seen this coming through. Emea head of markets portfolio solution joining us next. This is bloomberg. Guy tuesday, of september. The chinese fifth of september. One sector on the upside, what is driving it is the Energy Sector. Crude is higher. Thats the picture in europe. The details today matter. The countdown to the close starts right now. Announcer the countdown is on in europe. This is Bloomberg Markets european close with guy johnson and alix steel