| Good morning. A big meeting for the oil market, inflation challenges and the hybrid-working debate. Here's what's moving markets. OPEC MeetingOPEC and its allies will hold a critical meeting on Thursday with the aim of striking a deal on the pace of output increases, having already given members an extra day for preliminary talks in the hopes of hammering out an agreement. The coalition is considering whether to continue reviving supplies, which could ease pressure on prices as demand bounces back. Oil prices are steady ahead of the meeting, reflecting in part nervousness over the fast-spreading delta variant of Covid-19 and the risk it poses to economic reopening in some regions. Inflation ChallengeInflation in the U.K. could end the year at 4%, the Bank of England's chief economist said, double the central bank's target. Andy Haldane said delaying action now may require bigger steps later. Major central banks are weighing when to cut down on their emergency support as economies emerge from coronavirus restrictions and the focus turns to rising consumer prices. The challenge is becoming clear in the U.S., where Americans' pay hikes are not keeping pace with surging prices for everyday goods. Hybrid DebateThe picture is starting to become clearer on the future of work as companies start to set out their plans for a hybrid future. Banks are at the forefront of the debate. Citigroup and UBS are both touting flexible work policies as a way to recruit and retain top talent, elevating hybrid-working to one of the top new corporate perks. Barclays has followed in the footsteps of JPMorgan Chase and Bank of America in hiking junior banker pay to boost retention amid high levels of burnout. Watch for more announcements as companies work to create systems for the new normal. Crypto InterestSome of the world's leading hedge funds are finding it worthwhile to get involved in the crypto market. Steve Cohen's Point72 Asset Management wants to hire a head of cryptocurrencies and George Soros' family office is now trading Bitcoin. It marks the latest sign of established players getting into the volatile market, with London-based broker TP ICAP launching a cryptocurrency venue for institutions. Meanwhile, watch for a significant change this week on how much processing power is needed to mine for Bitcoin. Coming Up…Asian stocks are down as the delta variant of the virus impacts sentiment, though European and U.S. stock-futures are pointing to a positive start. Europe's earnings calendar has two notable entries in the shape of Swedish fast-fashion retailer H&M and the U.K.'s Associated British Foods, owner of discount clothing retailer Primark. We'll also get a slew of manufacturing activity reports from Europe, the U.K. and the U.S., plus the latest policy decision from Sweden's Riksbank. What We've Been ReadingThis is what's caught our eye over the past 24 hours. And finally, here's what Cormac Mullen is interested in this morningLike many things in this world -- from coffee cups to monster trucks -- the reflation trade is biggest in America. The 180-day correlation between the MSCI USA Value and Growth Indexes -- a gauge of how closely they move together -- has slumped to an all-time low 0.43, according to data compiled by Bloomberg going back to 1997. A maximum possible correlation of 1.0 would signify all the shares are moving in lockstep. Equivalent measures for Asian shares have rebounded in recent months -- to around the 0.7 level -- and never got as low, while in Europe correlations look to have bottomed a little over 0.6. The data suggest U.S. fund managers have been most enthusiastic making reflation bets, and are therefore most exposed should the strategy unwind. In other regions, most notably Asia ex-Japan, investor excitement toward reflation plays hasn't been as extreme. The reflation trade has been in flux recently, not least as market participants reconsider the path of U.S. rate hikes after a hawkish pivot from the Federal Reserve. The data reinforce the idea that a decision on whether it will reignite or fizzle out is the key call for U.S. fund managers this year.  Cormac Mullen is a cross-asset reporter and editor for Bloomberg News in Tokyo. Like Bloomberg's Five Things? Subscribe for unlimited access to trusted, data-based journalism in 120 countries around the world and gain expert analysis from exclusive daily newsletters, The Bloomberg Open and The Bloomberg Close. | 
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