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tv   Bloomberg Markets European Close  Bloomberg  February 25, 2021 11:00am-12:00pm EST

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guy: let us reset, live from london, guy johnson. you're counting you down to the european close on bloomberg markets. what do you need to know out of europe. within the last hour astrazeneca's ceo said his firm will deliver 40 million doses in q1. moderna saying that his firm will start human trials for the south african variant. e.u. leaders discussing how to get the urine -- union out of the pandemic. pressure to speed up the delivery of shots and to escape -- except vaccine passport. angela merkel saying that that could be possible. the ecb's chief economist attempting to push eurozone yields lower. philip said that the central bank will buy bonds to prevent undue tightening. let me tell you what has happened around that. we have seen yields continued to
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rise and prices continuing to sell off. stoxx 600 is also down. look at the move that we are seeing in terms of the btp market in italy. you are seeing a huge move in greece. the market is not listening and yields are rising sharply. alix: in the u.s. is a similar story, can we handle it in the u.s. or elsewhere like in emerging markets? that is a different question. 10-year yeilds up by nine basis points. this is the highest session for yield markets. that spread continuing to steepen. the five that i mentioned hitting the highest level since march of last year at 75 basis points. the knock on effects is good for financials at one point hitting a record high. however, we are well off of that and fading a little bit and now we are flat on the day. and i wanted to check in to see if there were any effects in terms of the high yield markets. credit spread seemed tight for the equity market. we start to see widening where
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the risks could come. so far the high-yield index is looking at 317 where you sit over treasuries in terms of that trend. calmish for now. guy: we are monitoring the european parliament and a virtual hearing with the ceos. they are discussing how to increase vaccine production and improve delivery. we will monitor it. let us get some analysis. the eurasia group senior european analyst joining us now to discuss. let us talk about what is going on. does europe have -- does the e.u. still have a delivery problem, or does it have a rollout problem? >> a bit of both, frankly, i would say. i could not think of a more politically charged issue. we are seeing the kind of political pressures on a national level and those in the
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european commission has come under as the vaccination program has been off to a slow start. the u.s. and the u.k. can only grow in the next few months so i think the political pressure is only likely to increase. but we also take account of the fact that the you or much of mainland europe is on the verge of what is going to be a third wave meaning more covid restrictions, which is bad news for the european public as well as markets. alix: what winds up happening if different countries go in different correct -- direction. if certain populations are more willing to take the astrazeneca vaccine or etc.. does that look like a bifurcated recovery and how do they manage that? federico: what we are seeing is more between the u.k. and the rest of europe, and it is a complex issue and a variety of reasons. one is the vaccine strategy that the ukiah adopted prioritizing first doses and delaying
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administration on the second dose. the main issue is the shortage of supply at this point and there is also the rollout problem. rollout plans in many countries are getting up to speed, hopefully that will be resolved. but the main problem is how it relates to the supply. thirdly, there is not much that the e.u. can do at this point. supply will increase, but not before april and that you does not have a lot of tools to address that in the leverage is very much in the hands of the tools of pharmaceutical companies. guy: a few weeks ago we were arguing about whether the e.u. was going to get u.k. astrazeneca vaccines and who was right and wrong in terms of the legal text in terms of the two contracts. at that point a number of leaders poured a lot of cold water on the vaccine. now we are not seeing uptake of that vaccine being high, in fact
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it is quite low and many people have indicated that they do not want it. how big of a problem is that in his or anything leadership can do about it? federico: some regulators have approved that for use for over 65 and there has been issues with uptake. i feel like there will be less than an -- less of an issue as supply increases. the e.u. has a few options to improve the supply. you recall ideas like export controls, but that will not go far considering most of the vaccine supply is produced locally. another thing is to make it available to other companies to take up production, but that in itself would take four to six months. not really good about ramping supply in the near term which is what the governments would have to do. alix: what is your expectation for things like passport and
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vaccine visas or passports? and, how that messes up where you have to let everyone move in and out if you were in the euro zone. guy: that would be the big item on the agenda. there is quite a lot of pressure to introduce the vaccine passport system to allow the travel sector and the tourism sector to get some options in and that pressure is on countries that are dependent on summer tourism. guy: i think we may have a problem with his line. it looks like, once again the broadband is not serving us well. alix, i guess that is one of the key questions that everyone is trying to figure out, and angela merkel looks like she is sounding positive about this. but there is the moral issue. i have had my vaccine, does that mean i can go on holiday? someone else might not have had the vaccine. i also, huge problems in terms
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of morality around all of this and i think this will be a huge problem. and then the variants. i think he is back. what happens if there is not a common approach to the vaccine passport issue? could you see a situation where greece does what it has done with israel and say we will do this on a bilateral basis? federico: yes. i think there is concerns about discrimination, and privacy, but the main problem is cracked the coal with the effectiveness of vaccines. we know they are not 100% effective or the -- and they will not work well with some of the variant. i do think that some of the pressure for these countries to reopen will become overwhelming as we get closer to the summer. i guess that point the challenge is to have enough requirements around testing at the e.u. level to prevent another wave of
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infections as we saw last year which is something that we are all quite keen to avoid. alix: before i let you go, let us pretend that we get more vaccines and tons of doses are dumped on europe. which country is most set up to take advantage and which one is lagging behind? federico: france and germany and the big economies are doing well, but there are issues everywhere. no country has been able to administer and hundred percent of doses available despite the supply constraints. i think is due to problems as we saw during the u.k. earlier on which will hopefully be addressed but it will be a big part of the challenge alongside addressing those constraints. alix: we really appreciate your time. now, research has been tracking the vaccination data released in a new report saying that the e.u. can you inoculate 75% of
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adults by august. that takes into account what they could do. what is the data that shows what they will do, that it can get us there. >> i think this end of august is very realistic. we will assist -- expect a ramp-up in production as we have seen with astrazeneca and pfizer . so, supply will start to change in april and march going forward. and we also see that vaccinations are also going forward. but, there are a lot of issues still, and i would say that the mutations and the south african strain that has shown to have lower vaccine efficacy is not really a concern, and you might see more of those mutations, but so far the e.u. is two months
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behind the u.k. and somewhat behind the u.s. and we expect that to continue so, the u.k. we expected to already have vaccinated 75% in june. guy: does your data take into account, and i am curious to get your feeling on this, vaccine hesitancy seems to be more problematic in a number of countries than others, france in particular looks like it has an issue. does that data take that into account and how are you factoring it in? rasmus: we definitely take that into account and part of the delay in the vaccine rollout is because we are seeing a country like greece having vaccinated 7% and vogue area only 2% -- bulgaria only 2% so they get
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the same doses. they have to go -- deal with preparation for rollout. the more hesitant population the slower it would be, and i am especially concerned about the astrazeneca because there are 300 million doses of astrazeneca and if we start to see numbers coming out that only 15% of all the vaccine doses have gone from astrazeneca has extra -- actually been used and we continue to see that number that could slow things down, and so hesitancy is one of the major factors to look at. we have seen a kind of overall confidence in vaccines. other parts of the world we have seen a slight decrease. alix: so, if we wind up getting j&j in europe, pfizer and moderna, does that change or
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models or do the models take into account significant doses coming from them? rasmus: the model works with that they will be approved soon and works with the numbers indicated, and that astrazeneca will start dealing that at a higher rate. it is a fairly realistic estimate. it is very optimistic and it could go faster, but it could also be slowed down. what it does not take into account is limitations. we are seeing the spread of the south african virus and numbers with the countdown and astrazeneca started from south africa showing that it had much lower efficacy with it not working. more numbers and more data out there. and so far those indications are worrying and with lower efficacy. most of the vaccines will have listed, and that is why we said
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moderna will test against the next strain. and that is a whole new set of supply issues. guy: how confident are we and 75% being the magic number? -- in 75% being the magic number. rasmus: i think the numbers we need to look at -- in the moment is driving down hospitalizations and infections. and that one of these things. some numbers indicate that. the moment you have less pressure on the hospital systems, we will be able to open up more. i think most are not focused on herd immunity, that is not a realistic goal. but the moment we can drive that down in combination with better therapeutics. we have some really exciting news on the treatment front that is reducing mortality
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significantly, and i think the combination of it all will allow countries to open up much more. alix: how are the variants spreading? there was a concerning article that in new york city we have seen the rise of all three variants and it is all over the city. how is -- how are they being tracked in europe? rasmus: it is spreading quite rapidly in many different areas and part of the reason is that the sequencing is not spread out throughout. there are many places where the variants are spreading and we are not doing the sequences so it might be spreading out of certain places, but the indication is that most of the variants have spread to most countries, and that is definitely a cause of concern. guy: we are going to end it
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there. thank you for updating us on the numbers. coming up we will continue to look at the economic impacts of europe's vaccine efforts. we are seeing a big move in italian and greek yields that are pushing higher and higher. we will be talking to ubs for its take on what happens next. this is bloomberg. ♪ so you're a small business, or a big one. you were thriving, but then... oh. ah. okay. plan, pivot. how do you bounce back? you don't, you bounce forward, with serious and reliable internet. powered by the largest gig speed network in america. but is it secure? sure it's secure. and even if the power goes down,
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guy: from london, i am guy johnson.
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alix steel is in new york. the slow vaccine rollout that we have been talking about in europe is having an impact on the recovery. the last thing you need to see is sharply rising yields, which we are starting to get in the markets. philip lane pushing back pretty hard. he is already doing this alongside christine lagarde. what -- it is worth thinking about what he will said -- what he said. we will purchase flexibly with a view for tightening financial existence that is countering the downward impact of the pandemic on the path of inflation. this is a hint that we will be using the program and seeing the ecb step up and use that. at the moment, they just want both. will they turn that into action, we will wait and see. let us get ubs' take on that. we have her take.
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legarde has made the point and we have philip lane making the point, but we do not want to see a timing of -- timing of financial conditions. there is an effect from the united states putting it upward when it comes to european rates. what do you think the ecb will do? will it talk or do something about it? anna: thank you. in terms of the ecb, the ecp is concerned about the increase in yields, however we also have to remember that they still have plenty of flexibility when it comes to their program. so far they have used out of the whole envelope of 1.8 5 trillion, they have used only 800 billion. so, they can flexibly increase that pace of purchases without making any big adjustments to their policy. alix: do you expect them to do that soon considering the two
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verbal interventions did not work. anna: at the moment we think they will stick with their rhetoric of monitoring developments and you also have to remember that the next meeting in march, they will also update the macroeconomic projections which will also matter in terms of what they expect on the inflation front and growth front. in that sense, i think it is too early to say that they will go straight away. but they have an opportunity that is definitely on the table. guy: we have just been talking to a couple of people that cover the health crisis in detail. the message i got from them is there is data that the crisis in europe is going to be getting worse and further lockdowns might be required. france is resisting and germany is trying to figure out what to do next. but the data on the virus is potentially getting worse. if you have rising yields out of rising virus case counts, the
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ecb will be forced into action, isn't it? anna: again, i think that they might look through the near term weakness. in this case it would be mobility restrictions tightening at the start of the year. what matters is the ecp outlook, the inflation outlook. and that says once again that the currency is looking through the strength of inflation and concentrating on the medium-term. again, similar to the rhetoric around the exchange rate over the last few months in that context, they also said that they were closely monitoring exchange-rate development, however it not actually got to them acting on it. i think we are currently in a similar situation. alix: j.p. morgan was talking about the fiscal thrust, so the boost from fiscal and government spending and the measures that
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would be inspecting and the physic dust and the physicals are negative in europe versus positive in the u.s.. when do we see this come out in data. anna: in terms of fiscal stimulus we calculated this after last year's fiscal stimulus at 4.5% of gdp. we were looking at the adjusted budget deficits and we expect more marginal easing this year. unless -- that sense, we think that fiscal policy will remain accommodative, however there is a big discussion about what happens in the year 2021 and what happens to the fiscal roles, and i think that is more of a risk regarding next year versus any premature tightening this year. guy: about financial conditions and the various component parts that go into that. if we were to see rising yields
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with the currency weakening or other assets moving around as well, how focused on yields do you think the ecb is? if it was counterbalanced by another factor that goes into calculating financial conditions, would that make the ecb more relaxed, or do you think yields and spreads are so important that that is the main focus of the european central bank? anna: i think it is an important influence not the only one. if you recall the last press conference, president lagarde said that the ecb takes a more holistic approach. obviously in the sovereign bond space, for corporates and financial corporate center households. especially as regards to the last sectors, if you look at the lending rates and for
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households, you still remain at low levels, so in that sense we have not seen any significant tightening. so although i think that sovereign yields do matter, but it is not the only factor that they look at. alix: thank you very much, it was great to chat with you. this is bloomberg. ♪
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alix: let us check in on the first word news. it is a sign that job costs are starting to fall as the coronavirus infections decline. but applications for unemployment benefits fell by more than forecast to the lowest since november. initial jobless claims decreased by 111,000 to 730,000. you try those numbers. california and ohio posted the
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biggest drop. china dismissing u.s. efforts to shift supplies chains to on -- two alternative sources hours after president biden ended the reliance on china. the shortage of superconductors had idled production. the white house is trying to build support for the 1.9 trillion dollar coronavirus plan. he says his aides are pitching the bills to treasuries and tribal leaders. the administrations are focusing on 13 states including ohio, west virginia and georgia. it is a trial run for a tougher sale and in terms of the election those are all swing states. i wonder how that will end up playing in 2022 but we have time until we get there. guy: should we talk about the markets? because incredible things are happening. the move in bonds is something. i know a lot of focus is on the five year, but i am actually
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starting to watch what is happening with the two year. in the u.k., the two years moving. when the two year starts moving you want to pay attention because that is the market indicating that central-banks could start to ship ranks -- rates around. we are not quite there, but it is an indication that we are -- because it is just being nailed to the ground, the two year and then you get some positivity there and life gets exciting. alix: one, i was thinking the same thing because if you have higher short-term rates you have more pressure on emerging markets in a way that we are not seeing. also, this comes as we were thinking that treasury short-term rates were going to go zero or negative because of the lack of supply and demand. if we do not get that that will be a mess for investors as well. guy: i am to switch up my wd. italy up by 10 basis points. greece, up 10 basis points as well.
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the periphery is seeing a real backup and yields. marcus, what do you make of this and how problematic is this? marcus: it does not need to be problematic, it just needs to be reassuring for central banks. i think this works. what the treasury and the ecb could be doing is going in and buying quite aggressively. they talk about it, but that is what has investors worried. they are trying to talk it down and this is not the time for talk over action, just an unrelenting qe rate, and the next thing you know the yields will be heading down again. i think it should be done without any talk, we have plenty of ammo and we have is tax -- have stacks of qe and save the talks. alix: like an sop action. why aren't they doing that? marcus: they are waiting for
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this to blow over. what you have is a value problem where risk managers are going this keeps on going on. we need to hedge and hedge quickly. first we need to hedge for-- hen higher yields. that loss is a lot of money. with that much duration risk, there is pain out there. it has been a painful start for the year. i think this move caught everyone by surprise. everyone has been hedging and over hedging. central bank action is winding down. i don't think this is a problem. it can become a problem. alix: it does make some sense. guy: it is markets, so you
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cannot give him full credit. let's talk about the two-year. bear starting to get a little movement in the two-year market. i have not seen this yet. about a month ago, we had a little step up and yields on the front end. now, we are getting another step up. what is that signifying? what is the market trying to tell us? marcus: there is a bit of a right wing curve going inverted. sometimes, these things are just a mismatch between where qe and positioning has got itself. i think at the moment this is a positioning mismatch. he mentioned the five year earlier. having tripled the yield since august -- on the two-year, you are absolutely right. there is much more cyclical involvement in the banking system. i think the money market funds,
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they are 30 year bond. the long duration the two-year. that is money market funds hedging their risk. alix: always good to catch up. marcus ashworth of bloomberg opinion. we want to take you back to bloomberg live, the future event. joe: you have been pretty clear on this idea that you are not in favor of holding extra cash, especially given your views on monetary policy, the dollar, and so forth. what is it about bitcoin specifically versus other alternatives, or distribute any extra cash back to shareholders? what is it about bitcoin specifically that in your view makes it a logical asset for companies to put some of their money in? >> let's look at the big picture. i have been a public company officer for 22 years. when you could generate 5% to 6%
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short-term interest on treasuries and the cost of capital was 7%, you did not have to consider anything other than tradition -- conventional treasuries, may be taking a -2% year per year. i think when conventional treasury assets are 2% and you have a cost capital of 7%, which is the expansion of the money supply, -5%, people grit their teeth and go through it for the last 5, 6 years. now, in 2020, we see the cost of capital explode. 25% monetary supply expansion. the treasury strategies are now less than 1%. you have a negative real yield -25%. that is the cost of capital. that is turning up the heat that is causing everyone to realize conventional treasury strategy is broken. look at the last 12 months
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r.o.i. s&p is up 25%. if you invested all of your treasury assets in the s&p index, you kept up with capital. nasdaq is up 53%. big tech, the monopolies, they are extraordinary. they are staying ahead of the cost of capital. treasuries down 7.7%. gold up 9%. it is not keeping up with cost of capital. you cannot hold conventional treasuries. you are looking at a negative real yield against the cost of capital, 15% to 25% a year. i'm not a consumer. i have to manage shareholder value. and if you want to maintain or grow shareholder value, you have to grow your assets at a rate
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faster than the cost of capital. you growth rate is 15%. what are you going to do? joe: it is a different definition of cost of capital that you have than a traditional company would have. michael: i don't think so. i think a lot of people think about inflation and cpi. the cost of capital has always been, in a conventional advisory , if you talked to any institutional investor in the past decade, and you said my idea is i am going to invest your money at 1% or 2% or 3% interest, they would ask for it back. there is not a single institutional investor that can keep limited partner capital by promising 1% or 2% or 3% returns. all investors know, the cost of capital, it is seven or eight. if you look at the growth rate of the s&p, it is 11.4% for the
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past decade. nasdaq is faster. it is 17%. big tech is better than the s&p. if you look at the compound annual growth rate of bitcoin for the decade, it is 198%. why bitcoin? i have two choices. recapitalize the company or invest the money into something which is going to keep up with the cost of capital or exceed the cost of capital. let's talk about giving the money back. the road to serfdom would be for you to surrender all your assets with cash growing exponentially weaker. no family would do that. no investor is going to give all their capital back to the limited partners. no limited endowment is going to work, no university. no company can function by surrendering all their capital and working harder exponentially
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for currency growing weaker. the robots are taking over the country. we are automating everything. for amazon to succeed, 15,000 retailers are destroyed. for google to succeed, 15,000 media companies are destroyed. for apple to succeed, 15,000 device manufacturers are destroyed. joe: are you thinking about your portfolio right now, your rates of return? michael sailor -- syalor having a good idea of the capital concerns. he is speaking to joe weisenthal at the bloomberg event, the crypto summit. if you want to continue to watch , you can do that online. able to offer you multiple choices here today. let's talk about what is
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happening with european equity markets today. equities certainly having to react to that. session lows -- we were actually at session lows here in europe. the bond market move is really worth paying attention to. i, the spanish market -- ibex, the spanish market is outperforming today. the dax, you can see, is down by 0.7%. the european central bank continuing to do relatively well. in terms of the bond markets, i think this really is where the action is. i know bitcoin is exciting, but bond markets, worth paying attention to. thinking of the potential for the blue over -- blow over is definitely there. you can see eight basis points in germany.
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france is eight basis points. the ecb could push back. what marcus was saying -- the interesting thing would be to buy. hit the bid hard, and not the market back. we are seeing the curve moving, almost across the curve, to the upward. in terms of the sector story, we are up by 1.82%, trading on the upside. thanks are picking up today, which i think is interesting in terms of what is happening with this bond market move. remember, italian banks have huge exposure. chemicals are down today. a really big move over the last couple of days. health care also coming under a little bit of pressure.
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we have had the ceo's appearing in brussels today. let's talk about some of the individual names, and what is happening here. let's start off with anheuser-busch. ab inbev down 1.6%. in terms of what we've got here, what the market did not like -- it is the margin story that i think is a cause for concern. unloved by one of the analysts. you would have thought, as we come out, there is the potential for higher beverage consumption. it will be interesting to see how big events come through. cost is a real factor here. cost is a good factor.
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the miners continue to do well. they continue to outperform. anglo american up by 4%. the numbers look good. the outlook, the super cycle story, everybody is watching to see what happens next. the question is, how sustainable would it be? alix: how sustainable would it be, and what is the knock on effect? the johannesburg stock exchange reporting results this morning, 30% waiting -- weighting of the index of south african miners. the company did raise its annual dividend. joining us from johannesburg is the jami ceo -- jme ceo. the super cycle, how much upside do you think there still is in miners? >> certainly, we have seen an enormous run, year-to-date.
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our resources sector is up 17.3%, year-to-date. many of our mining companies announced results in the past week. that has caused stocks to rally. there is the dynamic of our exchange rate, which did take a dip today. that has caused quite a surge in our resources on a tactical day on day move. alix: -- guy: the currency moving because of what has happened with budgets. the president saying -- toby a difference on exchange do you see between the prospect of domestic facing companies and those such as the miners that have international exposure?
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how do you manage those competing camps within the market? leila: we do have a very diverse market. companies are obviously dynamically connected to the international market. in addition, a number of large tech companies, some of which earn 30% of tencent. there is a very tight dynamic. we have a large number of fuel companies. in addition, the rand is functional, dynamic. it is not just a function of the local dynamics. that is an interesting trajectory and an interesting analysis. alix: no kidding.
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i'm wondering what you have noticed in terms of trading, in terms of outlook, as you see the selloff in the bond market in the u.s. the yields are going to at some point put pressure on emerging markets. leila: we have our own microenvironment in that our finance minister -- there is an enormous rally in the rand and bond market immediately after the speech. the rand is trading quite a lot weaker than it was. our 10 year yield is up about 9%. that is an indication i think more of level flows. it is a very strong response by the markets.
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and a positive outlook on the financial markets. guy: what are you going to do with the exchange? what are the opportunities? what are the partnerships? what are the dynamics in terms of who is trading around the world? what has been happening with the robinhood trade over the last few weeks -- what opportunity do you see? leila: the covid crisis accelerated the megatrends in trading. we see that with the robinhood trade. we also look at the growth in southeast asia. the shanghai stock exchange, we are interacting with singapore at the moment. we are prioritizing countries such as japan. we are trying to create a
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highway for listings, as well as start looking at potentially low latency or general traders to be trading through our brokers and back onto to our markets. our investor base is highly institutional. it is more of a retail base. we are heavily focused on sustainability. we're focused on sustainable bonds, which will allow companies to transfer debt finance. we are also working with public and private sector flows as the cycle changes.
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with the emerging market, we are looking to impress those countries. guy: thanks very much. greatly appreciated. leila flory -- leila fourie joining us from johannesburg. european stocks down for the day as we head into the break. the action today has been in the bond markets. we have seen equity markets reacting to that. energy stocks, certainly the big factor. we have seen a negative close pretty much across the peak when it comes to major markets, the dax and the cac in europe. ♪
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corina: this is bloomberg markets: european close. coming up, and explosive interview with miguel martin at 8:30 p.m. in london. this is bloomberg. alix: breaking news for you.
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the nasdaq 100 extending its decline to percent. tech stocks sink. that is very difficult. red yellow -- red leather, yellow leather. guy: you are not wrong. tech stocks are having a tough day today. there is a bad smell been generated because of what is going on in the bond market. you sell tech, it seems to becoming something of a knee-jerk reaction. down by 2.15%. current performers from the work from home trend -- operating in 80 countries, recording record growth for 2020. danielle, how much of what has changed over the pandemic is going to stick?
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every time i bring somebody up -- it is not a call center anymore. it is somebody at home that is plugged in and able to use the technology to be able to work from home. how much of a shift is that going to be? >> i think after the end of the pandemic, we are going to live in a hybrid world. some of the business is going to go back to brick-and-mortar, and some of the business is going to stay work at home, for two reasons. or three reasons. we have the security. and in the context of global well-being -- for us, we don't know if the split will be 40/60.
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but a significant part of the business is going to stay work at home. that is the reason we developed a digital platform to manage into and the relationship in a total digital way with our employees. alix: i'm sure you also had to pivot very quickly to accommodate all of that. what are you going to buy this year to help facilitate that? daniel: you know that today, at the end of december, we had 260,000 employees working from home. we are able to make this transition from additional -- traditional capex. we have been able to deliver a
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pretty good bottom line in 2020. in 2020, it looks extremely strong. you know what happened? people being more at home, they feel the need to communicate more. that has been a movement in direction. guy: one of the things you do do is -- for governments, you help out. it has to be a tough business right now. what is your sense of whether or not that comes back, pursuing visas? are businesspeople going to be traveling again? when do you see that happening, if at all? daniel: we have been hurt significantly in this business in 2020, and we were able to
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make a great 2020 despite this difficulty. the first half of 2021 is exactly like 2020. maybe we are going to see a little bit of recovery, second half of 2021. but i do not expect anything until 2022. it will not be exactly the same. you have the digital platform, and people are going to think twice before they travel as intensively as before. alix: back to what you are looking at in terms of acquisitions, what are you looking at in terms of acquisitions? what is on your checklist? daniel: first, i never disclose my checklist before it is done. alix: categorize it for me.
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daniel: we have a strategy. we never buy companies who are in difficulties because it is a distraction. we grow our group by integrating very, very strong companies that can help our group to provide a stronger, better, larger service. we are interested in the i.t. services. the digital business -- companies had specific experiences in what we serve. whether it is thank finance service insurance or something else. alix: thanks a lot. we really appreciate you talking with us, daniel julien. the nasdaq 100 really picking up. off by over 2% as yields grind
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their way higher. really big selloff, particularly in europe. it is really at the belly of the curve now. seeing the biggest shift there. it is going to be really interesting to see how it shakes out. monday, it was "buy the dip" on twitter. i don't know if we will get that today. what do you see with these big bond motives? guy: it will be something to watch out for. alix: ecb. coming up, you have congressman dan tilly joining from michigan, joining "balance of power" with david west. guy: and you and i are going to radio. we are going to talk about these amazing moves we are getting today. ♪
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david: from bloomberg world
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headquarters in new york to our tv and radio audiences worldwide, welcome to "balance of power." jay powell spent two days this week giving his take on the economy. this morning, we got new economic numbers that seem to bit stronger than expected, at least on their face. to tell us what they really mean, we turn to our election politics correspondent, mike mckee. you are really good at going below the surface and maybe we start with durable goods. michael: a little strength in durable goods but not as much as the headlines would appear. these are january numbers and we are almost into march, so there's -- we are a little it behind. 3.4% for durable goods orders which was more than forecast, but look at where the strength came from. boeing started selling 737s again and started flying off the lot, so almost 400% increase in civilian aircraft.

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