Johnson. Alix it is 30 minutes into the u. S. Trading day. Here are the top market stories that we are following for you at this hour. Tech and luxury tumult. So tech and luxury stocks were the superstars in the u. S. And europe and now they cannot find their footing. Were going to see if its time to buy. And my confidence level is, i dont know, were going to see. The latest read with instant analysis from dana peterson, chief economist Center Leader of economy, strategy finance at the conference board. And all the buzz from oklahoma city. Tripledigit oil price, politics, supply, china, all the hot topics from the American EnergySecurity Summit in oklahoma. More with my exclusive interview with rick muncrief. From new york, im alix steele with my cohost in london, tom mckenzie. So i came from my time the oil patch in oklahoma city. Guys going to his fun time which is on airplane show. So youre right in the middle of that for us, tom. Tom we have the Consumer Confidence and now we get into some reaction as well. The estimates have been for 105. So theyre softening in terms of Consumer Confidence. You have views on this. I know. And again, the question around that buffer for how olds in the households for household. Alix so its a weekly budget. Im working on it. Ive had it since march. Its a touch and go situation. Michael mckee is there to break down that for us. I dont have anything on your budget but do i have new home sales coming in at a different disappointing drop, 8. 7 for the month of august. That follows a 4. 4 increase in the month of july. So this is not good news for the home front. Conference board, we see kind of interesting number here. We see that overall, Consumer Confidence drops to 103. 0 from 106. 1. But the present situation index increases to 147. 1 from 144. 8. While the future expectations goes to 73. 70 from 80. 2. So people are more confident right now than they are about the future which is kind of interesting given everything thats going on. You would have expected maybe that would be different with all of the potential bad things that could happen. And looks like at this point, were not seeing a terrible view of what the situation is. Michael lets get more reaction from dana peterson, chief economist Center Leader of economy, strategy finance at the conference board. Dana, help us make sense of this apparent contradiction or the optimism now with that concern when you project forward for the u. S. Consumer. Dana really, when i look at the numbers, especially the present situation, it was only a tick up from where it was before. So not really much changed. I think whats more important is expectation. Expectations were down again, back into the territory where consumers indicate that they think a recession is coming. And when you look beneath the surface, consumers continue to complain about inflation being elevated, especially food and Energy Prices and theres still concern about the labor market and the personal finance ahead. Alix but its not present. So this is all just like the whatif scenario. Like what if this happens . So is it that fair to say . Dana well certainly, yeah, but its over the next six months. So we know that the consumers are going to be facing some headwinds here. We have the student Debt Repayment that is back online. Consumers are going to run out of that savings. Wages are slowing. Is so the labor market. So when we put all of these things together and the fact that many consumers are becoming much more indebted at higher Interest Rate, this doesnt present a good story for the consumers. So we think that consumers are getting it right in saying theres trouble ahead. Michael dana, on that savings discussion, what is your current analysis as to when that runs out for the consumer . Dana probably within the next few months. We have roughly 2. 2 trillion of savings. So going from trillions to billions. So theyre probably going to run out of that money by the end of this year. Alix so i feel like the scenario is laid out right now in your data is very much what weve all been expecting to happen for the last year and im wondering what your level of confidence is is this time that consumers mean it. Dana well i think, again, whats different now versus maybe a year ago is that consumers are running out of those savings. Interest rates are much, much higher. So the cost of carrying a credit card are just or purchasing a home or a characters all of those things are much more expensive than they used to be and were seeing gasoline prices rise yet again and thats the core thing that consumers care about. Michael dana, are consumers waiting for the credit card higher rates for sure but is that an option to shore up their spending i know youre seeing a tickup in delinquencies. Dana absolutely. When we look at the trend of Consumer Credit card use, its back in the 2019 trend and delinquencies are up before the pandemic and when we look at the number of delinquencies that are 90 days or many, thats back at the prepandemic level. And whats more important or just as important is we look at banks, especially banks that are not the top 100, theyre seeing chargeoffs rise. So that means theyre writing off these bad loans and these credit card loans that are going sour. Alix dana, does this data to you point to a recession, a soft landing, no landing . Where does it point to . Dana we still have a recession call for the first half of next year. Again, its short. Its shallow. Its mild. And we dont expect a huge increase of the unemployment rate. Maybe to around 4. 2 by the middle of next year. But its a soft patch nonetheless and we think these data are consistent with that. Michael what about dana, what about your views on inflation . You have an enviable position compared to us in the u. K. , the europeans indeed. So where did you see the inflation picture . Is this good news ultimately for that fight against inflation . Dana it absolutely is. And when we look at whats driving inflation, first of all, its rent. And rents are starting to come off in terms of the increases. So thats good news. The other piece of it, other two pieces are still consumers are seeking out services. And thats also driving up wages along with labor shortages so much if we can address the key issues that are causing inflation to be elevated, thats good. The problem is that food and Energy Prices, theyre determined externally and the fed cant do much about that. So thats also something that the fed is going to have to grapple with. Alix thank you so much for the analysis. Dana peterson, chief economist Center Leader of economy, strategy finance at the conference board. I am on that budget. Breaking news for you. J. P. Morgan paying a 75 million set. To settle the u. S. Virgin islands suit over Jeffrey Epstein. Here is more. Details the settlement, j. P. Morgan looking to resolve its lawsuit with the u. S. Virgin islands as well as the former j. P. Morgan banker known for a lot of the relationship that was tied to Jeffrey Epstein within j. P. Morgan when he was there. Hes was a former c. E. O. Of bark liss theres very little that was said against how the cases resolved against but the bank is turning the page from a lot of ugliness that ensued from this lawsuit. The celtic is the following, settlement is the following. 25 million paid the u. S. To enhance infrastructure and capabilities they say of Law Enforcement to prevent and combat human trafficking. That is according to j. P. Morgan. They said that the settlement does not involve admission of liability. However, the firm deeply regrets any association with this man and would never have continued doing business with him if it believes he was using the bank to commit heinous crimes. The fines in total, this lawsuit and the prior lawsuit that was almost 300 million in celtics brings us closer to 400 million in total settlements and that does not include any indisclosed sums. Michael so around 400 million. Is that fair on the back. This settlement, do you think . Theres a price tag that has been associated with it. And turning of the page, its not just really about the money here. Remember this has been going on for months. And you had j. P. Morgan c. E. O. Himself, jamie dimon deposed in the vain of these lawsuits as well. And so theyll be happy to turn the page from this saga and this does this in one fell swoop by settling these two case at once. Alix thank you so much. J. P. Morgan stocks is down 1 . Coming up, were going to get to the question of the day. Are tech and luxury now on sale . Were going to break it down with cameron dawson, chief Investment Officer at Newedge Wealth. This is bloomberg. Explore endless design possibilities. To find your personal style. Endless hardie® siding colors. Textures and styles. Its possible. With james hardie™. Alix were down by a full 1 point in the nas contact 100. Were sitting around some moving averages. It could get a little dicey. At the same time, you have european luxury stocks are getting hit really hard. So that convince us to the question of the day. Are tech and luxury on sale . If you think of luxury as European Tech and both of those have done so well in their respective regions, then they have sold off. Where are we now . Cameron dawson, chief Investment Officer at Newedge Wealth is with us. Is tech on sale in the u. S. . Cameron they have started to break down on a relative basis and an absolute basis and it does look like were very much in the midst of that. What we saw last week is tech broke below its august lows and that really does put the 200 Day Moving Average in sight which is about 7 down from here. Its interesting that would put the decline in that tech sector of about 18 from the july highs and its important to note tech keeps before the rest of the market. So once we get down to that 200 day, you would be trading at about 23 times for it on the tech index. So its not a cheap evaluation but a lot cheaper than where we have been and could provide an opportunity if people are still underweight tech to get to those levels. Michael ok, cameron so, sounds like youre saying now is not the time to be adding to tech. So maybe a further downside to that. When it comes to european luxe luxury, a bit of catchup in terms of reopen to china. And the chinese imports now a bit of fiscal stimulus coming through that maybe by the end of the year, the Chinese Consumer isnt looking too bad and you dont want to rotate out of european luxury quite yet. Would you push back on that view . Cameron not necessarily and we shouldnt read back to the fundamental move that weve seen meaning that we saw a lot of these names trade to extraordinarily high multiples because they were the only source of growth, the only source of optimism and maybe those multiples really were not justified. So as that air comes out, it doesnt mean that the fundamental story has changed. These havent become worse businesses. Of course, we have to see the fundamentals hang in. We have to see improvement in chinese demand. Weve also heard from quite a few Luxury Companies that theyre seeing weakness within u. S. Demand. So we cant forget that if the u. S. Were to see a stumble, that could be a major issue for some of these names. So its always good to remember these are very Cyclical Companies even though they have done well in the last downturn in covid which was a very unique kind of downturn. Alix this points to my budgeting that if you look within the s p, because of all the reweighting, Consumer Services are weighed to like google and meta, right . Its not as easy as doing say value versus growth or defenses haver cyclicals because the mix is still driven by big tech. So with that in mind, what are you do . Cameron defensive areas like waste names, in order to give us a sense of wheres the market appetite for risk as well as what the markets appetite for growth expectations, meaning that cyclicals tend to do a lot better when growth expectations are moving higher and they underperform when growth exceptions are expectations are rolling over. We have not seen signs that the cyclicals have major trend breaks. Were not at the point that estimates are bound to get cut but they have deteriorated enough that its a bit of a flashing yellow sign that we should be very weary that if these ratios break down, the estimates are likely to move lower. Michael cameron, how do you tie credit risks into that . Maybe the rally and the boom in credit is starting to peak out with rates at this level . How concerned are you about credit risks within some of those sectors . Cameron if there could be commonplace s. I. And not placing any complacency, the spreads are and how low theyve become this year, credit has performed extraordinarily well, most did not context of these rolling recession fear that is the market has had because we have not seen signs that the data is yet deteriorating right in front of our eyes. So watching credit will be important if we start to see things like triple b spreads start to blow out. That would be a sign that the market is growing more concerned about growth in the future. For right now, the growth concerns have been so much and we continue to have resilient data but thats where we could see the estimates again start to get cut. Alix and this goes to what jamie dimon talked about and the headlines seem really sexy saying 7 federate is possible. No ones prepped for 7 but the idea that you have the top bankers maybe that top isnt in and were in a different kind of world and you have to ary just to that and were not still prepped for even 6 from the fed. Tom the takeaway is not that were going to get to 7 but its more of the weight cuts for these markets because the rhetoric has been consistent around it. It is only now and the last few weeks that youve seen that weird adjustments. Thats maybe where that tiein comes on the flagging of the 7 risk. Its more about the markets needing to readjust to that narrative. Alix so cameron, what is the correlation that you still notice between yields and the equity markets . Michael is this the right correlation to be looking at right now . Cameron its hard because yields moved up yesterday and equities rallied and that seemed to go against what we fortunately expect. But at the end of the day, yields do matter. Weve seen it and i think this is the thing that has surprised us the most this year is this ability for equity valuations to expand extraordinarily. Mostly in those tech parts department. Coming out of the march lows, a lot of tech names saw their p. E. Multiples up 50 in just a few months. In the backdrop of the Interest Rates rising 100, 150 basis points across the curb. So now weve hit a point of pain where equity valuations cannot ignore yields anymore. You look at things like equity risk premiums, these are longer term measures. Theyre terrible timing tools meaning that stocks can get expensive and stay expensive buttocks have not been this expensive relative to bonds in a very long time. And that typically has been associated with lower forward returns looking out to three years. Doesnt mean the market sells off immediately. It just means that it is a lot harder to find upside when valuations are already so high and yields are challenging them as well. Tom on that point around yields and u. S. Treasuries, where did you land on this debate as to whether or not youre getting a peak now in terms of yields and you want to position along the curve and if so, where would you like to position on that curve . Cameron it is so tempting to lock in the higher yields, and for some client, it is appropriate to start finding opportunities in that long end but we have been very hesitant to try to call the top in long end yields and add to duration within fixed income portfolios that one of the best chart necessary market is the 10year yield. And without signs that youre seeing any break in that, we really dont want to fight it. And so if were thinking about fixed income positioning, there will come a time where its time to make major changes. Meaning that your short end of the Treasury Curve and get longer in duration at the same time, you likely want to pair back on the credit a great deal. But thats usually when you start seeing signs of distinct economic weakness. Economic data deteriorating enough that you can start pricing in an easier fed and much lower growth in the next years. We have not seen that yet which is why weve been patient but with yields getting to these levels, you dont want to be too cute about it but we think that time will come but were to the there yet. Tom cameron, thank you very much. If you look at two years at 512. 10 year at 451 on the benchmark. Still ahead, the influx of chinese. What its putting the focus on the u. S. Car, tesla. Wheel explain why next. This is bloomberg. Alix it is 23 past 7 00 on the west coast. Top tech stories from the bay area and beyond. Joining us now, Caroline Hyde here in the state in new york city. So with tesla, it was quite interesting of all the car makers that would have issues in europe after exporting e. V. s from china, i do think tesla would be one. About 47 of the deliveries have been the hub. And they can make it cheaply over there. You also have some of the breaks that basically eu is frustrated by since september 13. This is an issue for e. U. Car makers because theyre getting cheap loans, access to energy to batteries the supply chain, is that much more advantageous than china. So theyre cracking down on this. But tesla got special treatment. They have full ownership of their chinese venture. So this is a key concern for them. Europe is the second biggest market after the u. S. Tom its really fascinating the german automakers on the ground and they werent able to get that full ownership. But tesla did. And maybe now its going to be problematic for them. Were looking nvidia and comments from kathy woodmont shes looking for other parts to play the upside. Caroline yeah, this is a drama that shes been drum that hes been banging. They started dialing back significantly. Theyre Holding Nvidia back in january. They missed the pop but you got remember, she was in there before it was cool for a decade or so. So now shes saying this is a nobrainer. But where are the other opportunities . Go less sexy. Its all about Management Technology and the way we interphase. But she says this is a driving force within a. I. Its going to put the data which is the gold here. She likes b to c messaging and uber has been deploying that every time you get a message from uber or the driver. So some other options out there. Tom ok, kathy wood. Plenty more coming up including costco. Stay with us. This is bloomberg. Alix about an hour into the trading session, it looks ugly. Nasdaq 100 over 1 lower. Abigail it also feels like it is out of nowhere. Yesterday we had a bullish reversal. Now significant declines in line with the people we had in recent weeks. You can see the technology weighing more. The russell 2000 smallcap is out performing, down. 25 . Nasdaq 100 down more. If you flip up the boards, we are going to see the russell 2000 showing that decline. Interesting that on the day there is a bit of outperformance. Below its 200 Day Moving Average, the spread between the s p 500, i believe the russell 2000 is either close to being down and the year again or is. Might not bode so well for the s p 500. One point of pain for all of these index ease is yields going higher. This is just over the last two months. At the end of july, more issuance from treasury but also that july fed meeting when i think a lot of people were expecting the fed to say we are on pause, not hiking anytime soon. They gave the message there could be another rate hike this year. We have the two year yield up about 30 basis point the thought might be that the 10 year yield at some point is going to follow and we can have the yield curve well about 5 . Jamie dimon mentioning 7 . He used to talk about 6 . His comments seem to leave these yields higher. Bloomberg dollar index currency moving up 4. 42 . Money out of the system, monetary conditions tightening. What were the effect on the economy and the longerterm be . When we put together the s p 500 chart, it is clear we now have a breakdown. We watched this patiently. It was not clearly a break up or down. Right now it is breaking down. Could still pull back into the range. But we are below the 200 Day Moving Average. There is the rsi. Not the best set up. Kind of a bearish feeling. September is the seasonally worst month for the s p 500. October not great either, especially for mainstream market moves. Some setups are may be of concern. Tom Abigail Doolittle with the breakdown. In you. Lets get to one individual story. Cosco set to reported earnings after the bell. Comp sales have struggled after seeing a strong covidrelated gain. Senior analyst joins us now. Has a buy ready on the stock. The last time i checked, the stock was above the price target. Christina, does cosco benefit from a u. S. Consumer tightening the Purse Strings starting to budget more. Do these bulk wholesalers benefit in that environment . Anyway it benefits. People are looking for more value for their purchases. Cosco is having a good deal with their suppliers. They get access to better prices. Of course, people are looking for better prices. They get more value for their purchases. Alix but it is also a doubleedged sword. It feels like analysts are waiting for fees to move higher. You have to pay membership to get to cosco. They want that fee to come out. If the economy is struggling and the consumer is strapped, can they do that . Cristina i think they can but they can wait a bit longer. Cosco said they will introduce a fee but probably not this year. Probably they will have to wait until next year, second half of 2024. If they do now, the consumer will struggle to pay that higher fee, but up until now, people are changing until executive memberships, higher priced memberships. They are doing well for the moment. Tom what about that special dividend . Do they pump that out to 2024 as well . Cristina probably. They usually have a dividend but it is not that high. It is. 7 in a year. Probably they can extend that to 2024. The margins are stable. The Gross Margins stay around 10. 6 . Emergency stay around 3. 5 percent. They are not struggling there. They are having a good year. They probably will report these later. They can still manage to keep those numbers up in 2024. Alix if you look at the overall sales, analysts are looking out for 4 growth for the fiscal year, lowest since 2017. Is this a trough for cosco . Or will it just beat solid but not spectacular growth . Cristina i think the second. The one thing that went down for customers is if you see the samestore sales number, they are even higher. Samestore sales were higher. Now prices are coming up. Probably decimal prices are going up again. It is a moment where also its comparison basis is very strong. It is just the adjustment they are having postcovid, where they have the strongest numbers. They are coming back to normal. It is just this adjustment. Probably we will see higher growth for the next year and quarter. Tom what is your level of confidence around the margin and then being able to maintain the margin as they beat shoppers turn more savvy . How much is input inflation come up for them . Cristina i think the margin will remain stable. It has always been at pandemic levels. After the pandemic, we can see that they have the margin around three point 5 . It is stable. We have to remember that half of the operating margin comes from the incoming did they receive from their memberships. It is a stable number. I do not think they will struggle, but also wages have increased. Probably they will not have that pressure going forward. It is probable that they can maintain that margin over the next year. Alix looking forward to those numbers after the bell today. Tom, they have cosco where you are. Do you shop there . Do you get the 75 for the paper rolls . Tom i need to jump on the alix steel bandwagon. We have one in north london. Apparently it is good for toilet paper, old products. They first. Diapers. I have got to get my membership first. Alix the problem is eliminate new york apartment and you by 46 toilet paper rolls and you cannot store them unless you have an entire bedroom just for cosco products. It is not made for city living. Tom for you swap out your sophiainduced backpack is a sofa. Alix you are kidding, but. Or i could put toilet paper in my shoe positive. Tom i will check it out. Alix coming up, devon energy ceo joins me from yesterday. He says no demand destruction for oil. More on that next. This is bloomberg. Alix looking at live pictures of the principal room, coming up, alabama senator comey cover valve joins us at 5 00 p. M. New york time. This is bloomberg. Devon energy has a big position in the delaware basin. Super solid emp player. The ceo does not see any demand destruction right now at 90 k darrell of oil. He expects to spend less year. A lot of emp players hit with high inflation. A lot of producers think it is sticky, but rick see something different. Here is part of my explicit conversation with him at the Energy Summit in oklahoma city. Rick we still have volatility. We had the same discussion 18 months ago. Only to see Commodity Prices pullback. A lot of it, we will see more where demand lands. Still discussion, debate about is there going to be a recession . Will there be a hard landing . Alix are you noticing any of that from where you stand . Rick if we have a recession, it will be more of a soft landing. I think demand numbers are strong. 2 do you see demand destruction or reticence when it comes to a 90 a barrel environment . Rick no. At end of the day and i have asked some refining colleagues what do you think would cause demand destruction . In their mind alix it is a Product Price . A Product Market that is supertight. Rick exactly. What it means for companies and producers like ourselves is just to stay disciplined. Lets be thoughtful about things. Alix if you as an oil producer got everything you wanted out of energy policy, you had permission to drop what you needed and had a 10 year outlook, would you . Could you . Rick we could, about in the right answer is we need good, supportive policy. We need a positive narrative. There has been too much of a negative narrative. It cast a blanket. Alix if that one away, you would not necessarily keep producing oil like crazy . Rick we would continue to be responsible, stay disciplined, responsible. I think for us as producers, the best thing we can do is make sure we get these barrels of gas into the market in the reliable way. Alix that leads me to cost. If you were able to do whatever he wanted right now, where is the cost sticky . Are you having labor issues . Rick labor issues are tight. You can get people but sometimes the quality is not exactly what you would like. That becomes problematic. For us, generally speaking, we are addressing labor in a thoughtful way at these levels. Any increase in activity becomes problematic. Alix even if you wanted to produce more, the labor part is hard. What about the cost profile . What input costs are sticky now . Rick we have seen Nice Movement in things like steel. We have seen some contractors. And what was our last year it was when Natural Gas Prices really went up with the invasion of ukraine, a lot of the Gas Producers really went to work. They ramped up the added rigs activity. That the pressure on everyone. We have seen that Pressure Drop pretty dramatically, as we have seen rigs lay down. For us, drilling rigs are in good shape. Simulation surface says, those companies, still some tightness there, but we are seeing some things leading up. We are encouraged that we will see softening the input costs. Alix on the flipside, how is productivity . It is getting harder and harder to get more oil out of the stuff already there . Rick this is a topic we have talked about with investors. As some of our basins mature, you are looking even in the gasier basins, a lot of the basins we use drill in, you do not see as much activity. We are seeing maturing in the core of these basins. Even the premier basin, you are seeing it get more developed. With time, you are going to see tightness in the market. Todays 90 oil prices, many of your tier two opportunities become quite attractive. That has been the history for decades, that some of the easiest, usual first. Alix that probably means more m a . Rick consolidation. Alix for devon . Rick we will see. We are always watching. We owe it to our investors. Alix is there going to be a cycle because of the fact that a lot of these basins will mature and you will have to purchase . Rick what we hear from investors is scale matters. You will see a lot of Larger Companies looking at their inventory of projects and as that starts to become less overtime, most companies, their Balance Sheets are in good shape. Alix a couple things that stood out in that interview one, he sees in some areas active disinflation. Other ceos do not see that. They see certain things as being much more sticky. The other part is the message that Oil Producers want to get across, that they spend money to keep production like this, but to grow it, which they say we need, they need different regulations and rules. They need to feel like d. C. Seven. That is a big conflict of tension because of the energy transition. Tom how does the Biden Administration square that within their own constituency, particularly those on the left of the party . There is a question mark about whether the u. S. Is doing enough on the climate, but you look to these producers in the u. S. Entity diplomacy to get iranian oil onto the market, that is how desperate the administration is for oil. Businesses want that environment. Alix first, i think biting is going to his basement joe biden his gun to his base on that. When you take a look at the ira, some of the stuff in it is stuff Energy Companies like, like stuffer hydrogen and carbon capture. Oil companies are doing all of that stuff. You can talk a good game. I spoke with nikki haley, running for the republican candidacy, about repealing the ira, but they like that stuff, too. That is a fine line. Coming out, private equity firms piling on debt. Investors getting concerned. This is bloomberg. Alix we take a look at what is buzzing on wall street, banking, finance today, the bid between rhythm capital and hedge fund gurus. Who will get sculpture in the end . What is the update . Sonali what it would mean for Boaz Weinstein is what we are turning the intention to. Why are these billionaires fighting so hard to win this firm . For boys weinstein, this is a tightening of the credit world. He is a firm that is about 4 million, known it very much for trading, tail risk management, but this would now turn it into a fund with more than 20 billion in assets. It would only cost them about 700 billion. He has the help of many billionaire friends. A lot to gain from boaz. You do have an ugly dispute under the surface. You do have the founder of what was previously known as okziv not liking their course of action currently. We have not heard much from rhythm, the other bitter trying to take control of sculptor. And keep the current manager in place. Alix have you ever seen spiderman . Friendly neighborhood spiderman. Sonali might have not been the spiderman person. Sonali i am more marvel than d. C. Alix tom, i interrupted you. Tom that is fine, better. I do not know how i transition down. To the web of leverage in pe. Sonali there is a concern, so many types of loans going to private equity. You have a lot of assets they have bought. We do not know whether the valuation looks like. They are not only taking out more leverage to satisfy these new deals but against their portfolio companies, too these loans have become very popular. And a lot of companies i talked to are considering whether they want to get into the business or not. It is backed by the underlying portfolio. A lot of private equity firms feel that these are safe loans, particularly those getting into the private credit space. But some of the interest on the loans are now seeking Interest Rates of more than 19 . Leverage has certainly taken on a new meaning, but leverage is how they have traditionally made money. You will see how how this story plays out but the Interest Rate environment is different from the last several years. Tom 19 . Thank you. A couple of stocks and assets to bring to your attention four three days of losses. Australia gaining the u. K. Lender on the back of the first upgrade by Morgan Stanley since 2018. The apparent remains under pressure despite the fact that there is an assessment that the bank of england is ins territory. Further rusher on the pound because of the deteriorating Economic Outlook for this country. This is focusing on the benchmark german 10year. A bit of money did flow into the german benchmark on the back of reports the German Government will be issuing less debt than expected in the Fourth Quarter as the karabakh as theyy para support for households. Coming up, ubs chief strategist. This is bloomberg. I dont want you to move. Im gonna miss you so much. You realize well have internet waiting for us at the new place, right . Oh, we know. We just like making a scene. Transferring your services has never been easier. Get connected on the day of your move with the xfinity app. Can i sleep over at your new place . Can katie sleep over tonight . Sure, honey this generation is so dramatic tom countdown to the close move with the xfinity 10g network. Start now. The countdown is on in europe. This is a Bloomberg Markets european close guy johnson and steel. And alix steel. Tom dear. Stocks european stocks set for