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tv   Bloomberg Markets European Close  Bloomberg  March 31, 2021 11:00am-12:00pm EDT

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guy: live from london, i'm guy johnson. alix steel is a new york. we are counting you down to the european close on "bloomberg markets." the french president will address the nation tonight. reports suggest he will announce a national lockdown. deliveroo craters on day one of trading in london. the ipo on track to deliver the worst performance for a new listing in decades. andy president of the ecb tells bloomberg that the market can "test us as much as they want." we will bring you the highlights from that interview and just a moment. let's take a look at the markets. let's take a look at where stocks are on this final day of the quarter. european equities under a little bit of pressure, not by much, down by 0.2%. incredibly positive quarter. there is deliveroo. as we come into the close, half an hour away, down by 27%.
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not the greatest of starts. alix: that is truly terrible. in the u.s., the macro is what is happening with the infrastructure bill. we are waiting for president biden to hear about that. the industrial index down by about 0.3%. what's priced in is really the narrative. yields have had their jump, 80% in tenure yields in the first quarter. the bloomberg dollar index a little lighter, down 0.3%, but we are right around that 200 day moving average. quite relevant if we break on the upside. the yen still feeling some pain because of that. i also want to highlight the global x cannabis etf. we are just getting a headline that new york governor andrew cuomo signed a marijuana bill that has been coming down the pipeline, and it seems like now it will become legal in new york , so watching those canada stocks route the day here -- those cannabis stocks throughout the day here. guy: france, italy set to extend their virus restrictions. it looks like we are heading for a lockdown. europe struggling to contain
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infections. joining us from paris is bloomberg's any news farm. walk us through what the president is expected to announce tonight. he's been resisting a lockdown for quite some time. what has happened? what are we expecting? reporter: good evening. he will give an address, which never comes with good news. among these measures could be a ban on intercity travel and a closing of schools. he's been very proud of the country's ability not to close the schools, and has been saying that lockdowns would be a last measure. that said, the source i spoke to did say that as soon as schools are closed, as long as intercity travel is banned, this is
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effectively amounting to a lockdown. alix: thank you. we will be breaking this down throughout the hour. markets can test the ecb all they want. that was the take away from christine lagarde in her interview with bloomberg television's francine lacqua earlier today. ms. lagarde: we are very attentive to financing additions from upstream to downstream, meaning we look at interest rates, we look at sovereign bond yields, we look at the credit terms that are available for consumers or investors or corporate's. then we determine on that basis whether we should adjust one way or the other because don't forget, given the exceptional situation that we are facing, we are using maximum flexibility when we deploy pepp. we will deploy all of it or not, or more, and we will certainly
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adjust as needed, depending on the financing conditions that we monitor and that we evaluate very carefully. francine: as the economy recovers, bond yields will rise. how do you determine what is warranted and what is not warranted? how difficult is it to determine? ms. lagarde: yields that have increased quite significantly and quite rapidly, this is what has guided our most recent monetary policy decisions. the next worry when yields rise, because the economy is picking up, because consumers are consuming, because investors are investing, and because hopefully there will be a bit of price pressure exercised on our economy, then we will assess what is needed. but let me tell you this. given the distance relative to the aim that we have, which is inflation, i think that is going
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to be quite a while before we actually have to ask ourselves whether we need to tighten at all. francine: what is quite a while, a couple of months? ms. lagarde: that will be determined by our observation of facts, of prices, of indicators, and we are not going to be guided by the short-term movement because we know that in the short term, inflation is going to rise. there are some technical and paris factors that are going to lead to upward price pressures. that is going to because by multiple elements, whether it is the rebalancing of rates in the inflation assessment basket. we are going to see through that because those are not underlying fundamental factors that will increase prices in a consistent
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and convergent fashion. so this will be guided by observation of sustainable, solid movement, and by our aim, which is price stability as defined, and our commitment to economic players that will preserve favorable financing conditions. alix: what are markets playing at -- francine: what are markets playing at the moment? they seem to be testing central banks. ms. lagarde: they can test us as much as they want. we have a mandate. we have a name. we are going to be riveted to that, and we are going to do what is required to deliver on that. we have exceptional circumstances to deal with at the moment, and we have exceptional tools to use at the moment, and a battery of those. we will use them as and when needed in order to deliver on our mandate and on our pledge to the economy.
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guy: that was the esa be president christine lagarde asked the ecb president christine lagarde speaking with francine lacqua. you nice interview. she's taking on u.s. bond markets here, and i do wonder how big a challenge that is going to be. basically, she is saying the bond market can go up, yields can go higher, but we will keep yields nailed to the floor. i wonder whether she's got the governing council behind her. francine: and whether or not she has the tools come but the position of the ecb is such that, with the infrastructure package that may be coming, you see growth in the u.s., inflation in the u.s., but we don't have that kind of growth since we are getting lockdown in and out. so what choice does she have but to actually say don't test me? whether she will be able to is another matter, but she was
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firm. alix: in some ways, world leaders in europe are not making her job any easier, when you have micron looking to -- when you have macron looking to issue a lockdown. francine: the way that the vaccines work, they had to be negotiated, so now a lot of people don't want to be vaccinated, but she said she believes that lockdowns won't mean that we won't see a good recovery. it just could be delayed by a couple of months. she was very cautious in her outlook. there's encouraging news, but we can't declare victory yet. guy: were you surprised? her tone today was much stronger, and i haven't heard her be that strong.
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but i guess with what is happening in the states right now, we have talked to a number of people over the last few days that are expecting inflation to pick up significantly. i am just wondering whether or not you can separate europe and the united states. francine: not if you look at bond yields. but christine lagarde in the past has said we have to spend more. the recovery plan needs to be dispersed. remember, she was the european central bank president to try and get governments to spend. what they are doing now is spending a little more than six months ago, but there is chatter in europe asking for a second recovery plan. i think that is probably what she is hoping for. alix: francine, thanks a lot. really appreciate it. good to see you on the show. coming up, we will continue the conversation about the global impact of the coronavirus. the wto did turn a bit more
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optimistic on the prospects for trade this year. we will break that down with robert koopman, the wto chief economist. this is bloomberg. ♪
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♪ alix: live from new york, i'm alix steel, with guy johnson in london. this is the european close on "bloomberg markets." the wto out with its forecast for this year and next as prospects for global trade have improved. joining us is wto chief economist bob koopman. thank you for joining us. how do you take into account things like the slower rollout of vaccines in europe, potentially more lockdowns in
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europe, brazil still a real mess? how does that factor into your outlook? robert: well, it is factored into our outlook. trade is largely driven by gdp growth, and our estimates incorporate different scenarios for vaccine rollout. you will see we have an upside scenario that would add another percentage point to our baseline scenario, which is 8% for 2020. -- for 2021. so we would draw up another 1% of things go badly, and the variance had a bigger impact on the global economy than we expect. guy: how much of the positive surprises you're getting at the moment are driven by what is happening in the united states? robert: a fairly sizable amount because of the large stimulus
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and aggressive monetary and fiscal policy we see in the united states. it has really helped with the global recovery. many countries around the world have also taken aggressive fiscal and monetary responses which, compared to the great financial crisis, that has helped mitigate the downside impact of the pandemic. alix: part of that is going to be all of these stimulus checks that were cut to people in the u.s., and you can imagine how much more money is going to be flowing and because of the infrastructure plan. so as you look at world trade, what stuff is going to be moving where? robert: what we have is observed this past year, which was a surprise to us, is the pandemic has affected proximity related services much more than the overall economy, and consumers shifted to buying merchandise, goods, things they could get delivered from their local
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office supply store, and invested in redoing their homes or their flats. so we have seen a lot of that spillover of money not being spent in the service part of the economy into the manufacturing part of the economy, which is pretty highly traded. i would expect to see some of that continue into the coming year, although if we can reverse some of the health restrictions, you will start to see some of that for off taken off as people shift consumption back to proximity related services, do more travel, go out to beat, go to shows. -- go out to eat, go to shows. guy: you are the chief economist at the wto. we have just seen a major trade issue in the form of the blockage in the suez canal. can you give me the impact you see as a result of that? are we done with that now, or do you think there will be more lasting consequences? robert: i think the important thing to realize is that supply
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chains are subject to shocks every day. whether they are domestic or international. the suez canal is a big potential chokepoint, but on a normal day, it is a facilitator of trade. i don't expect to see big knock on effects. some estimated around $9 billion a day, about 20% of global trade on a daily basis goes through the suez canal. largely it was delayed. i don't think many goods were ruined. so i think the overall impacts are pretty small. the things that are adversely affected, they not going to be happy. alix: for me, when i look at what happened in the suez canal,
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what is happening in the l.a. port, where there is massive congestion now, biden clearly once to onshore things like semiconductor production here in the u.s. i am wondering how you see the on shoring debate developing, or inventory stocking developing. robert: so i would expect more inventory stocking for sure, as firms get this risk versus efficiency trade-off bit right. between the trade conflicts of the past few years and this pandemic, i think it is making them a bit more aware that the have to have more diverse sources of supply and perhaps bigger inventories to deal with any disruptions. but in the data, we don't see a lot of on shoring. people have talked about re -onshoring, but we don't see it. you do see more trade diversification, and you may see more near shoring in geographic
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location of trade, and some will indeed come back on shore, but other things will move offshore. the trend does not show a lot of re-onshoring. biden policies may change that. we will have to wait and see. most of it seems to be about improving infrastructure and reducing the cost of doing business, which is a supply-side impact which could have positive effects on u.s. production and trade. guy: there's a geopolitical angle and all of this as well. i think it will be fascinating to see how this works out. wto economist bob koopman, appreciate your time. let's continue the conversation. france may be headed towards another nationwide lockdown due to the sharp rise we are seeing in virus cases. president macron do to speak at 8:00 p.m. paris time to the nation.
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services firm capgemini has seen positive growth this year, and today came out with some pretty nice new targets. ceo aiman ezzat joins us from paris. let's start with the issue of how you cope with this crisis. we are going to see the president announcing a new lockdown tonight. are you prepared for that? how do you think that is going to be impacting the business? how do you work your way through this pandemic? aiman: thank you for having me on the show. we have been operating for more than a year now, and we moved up to between 85% and 90% of our employees. the impact is really going to impact our clients in terms of operations. we don't believe so at this stage. first of all, it is really focused on france, which is only part of our business. i think it might provide some
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slowdown in some sectors, and transportation were retail, but we don't see a big effect in terms of lockdown, and terms of potential slowdown of the business. it is kind of the situation we had in november, so i'm not too concerned about what is announced tonight. but the interesting thing is we have seen a natural at upton -- a natural adoption of technology. that is really our business. so the increased adoption of technology is actually accelerating the business. although we had a little bit of downturn last year starting in q4, now we see in q1 the business is really moving into high gear, and the demand is quite high from clients, and it is really giving a very good level of activity. alix: on that, what kind of activity, and what are you noticing from clients based on where they are located, based on
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how open the economy is right now and how the vaccination rate is? are they just wanting things? aiman: i have a hard time seeing a difference, i have to be honest. and i look at our first and second quarter, when i look at the forecast, across continents, like we could see that europe is slower than the u.s. and things like that, we do really not see it today. our business in the u.k. is booming. we really don't see regional differences. we continue to see his differences among industries. we were very clear that the aeronautics industry suffered a lot. we don't see a recovery there. it is still very slow. on the other side, financial services with banking was really in high gear in the middle of last year and continues to be
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very strong. telco is very good. consumer products and retail is back. we see a number of industries, typically in the manufacturing where we see some slowdowns. but even there, as we start going into the second quarter, we see things getting in higher gear and we see good growth. guy: i appreciate that that is how your world works right now, but we are about to see an awful lot of money spent in the united states. we have seen an awful lot of money spent in the united states by the government. it is about to come out with a massive infrastructure plan. do you see yourself being able to get vintage of that? do you think your clients will be able to take it tentative that? -- take advantage of that? aiman: i believe so. in a number of sectors, i believe we should see acceleration, in terms of investments. this could drive some higher
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acceleration in terms of the business of some of our key clients, which could have a positive effect in terms of acceleration through the year. but right now, we don't want to speculate too much on that, although we anticipate some potential growth in north america based on that. alix: i appreciate that the plan isn't out yet and we don't want to speculate, but we already know the ideas of where money will go, and terms of the smart grid or building out rock band. can you give us a little more color? aiman: in terms of some of the infrastructure companies, utilities, these are areas where we are very well positioned in terms of taking advantage. these are things that will expand the use of 5g. we have probably the broadest and most comprehensive offering around 5g in the world in terms of services, going from network design. we work with chip manufacturers, network equipment providers, and
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with applications. so i really see an opportunity to get vintage of that. that is definitely one area we see good potential. utilities could be another area where we are very well positioned in terms of evolution. guy: you've raised your target. the market has responded quite well today. i saw one analyst calling them ambitious, but realistic. do you see more upside in those targets then downside at the moment? where is the risk? do you think there is a chance that you outperform the ambitious targets you set yourself? aiman: well, i like the term ambitious but realistic because we set them at the right level from our perspective. there is always some potential upside at one moment or the other, but we raised our annual growth rate over five years. some years will slow down a
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little bit, and some will be higher. maybe going into 2022, we should see some acceleration, and you could hit the higher end of that. we will have to see as we go through the cycle, the hold up in terms of economic improvement and the massive amounts being injected into the economy. that should fuel a higher level of technology investment and get us to the target and one euro to. alix: there's a lot -- in one year or two. alix: there's a lot of vaccine hesitancy over astrazeneca and europe. have you gotten the vaccine? will you require employees coming back to the office to get the vaccine? aiman: we cannot force our employees to vaccinate. we have a global policy around vaccines that has been reviewed, shared with everybody come around how we put vaccine and
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the nondiscrimination towards employees. in addition to vaccination, it is private and confidential data that we cannot share. alix: thank you. it is always great to get your perspective. guy? guy: we are about to wrap up the quarter here in europe. to be honest, the session from an index point of view is really quite dull. ftse, dax, cac barely budging away from the flatline. nevertheless, deliveroo something of a disaster today in terms of the ipo. we will show you those details in just a moment. we will deal with the end of the quarter as well. it has been an incredible quarter for european equities. the banking sector has done really well. we will break down the detail in just a moment. this is bloomberg. ♪
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guy: we're wrapping up the session, the month, and the
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quarter here in europe. let's look at what happened today. today is interesting. like volume i think is interesting. i think a lot of people took this week off. the u.k. lockdown starts to ease and maybe people decided to go on holiday. the volume is a little light, which i think is interesting. we are down by around zero point 1% on the stoxx 600. -- by around 0.1 percent on the stoxx 600. i want to talk about credit suisse. let's start with day one, not the lifting you hope for. it has been a really tough story here. they lowered the guidance and the stock really has had a very, very rough day. the community is concerned may be more than we expected in terms of the right of welfare issues and how that fits into the narrative. maybe they did not think the
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timing was good. u.k. coming out of lockdown. maybe people want to go to restaurants, have food delivered. i don't know the narrative, but the result is 27% drop in deliveroo. cd projekt is basically behind "cyberpunk," the game. there was an update today. the market really unimpressed. look at the downgrade. cd projeckt down very hard on the back of that. and credit suisse has had a really tough week. the arche goes -- archegos story kicking off the week. you continue to see downgrades coming through the equity and credit side. that stock down by another 5% today. that is the today story. i want to talk a little bit about what is happening on the quarter, because it has been an incredible quarter, absolutely
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incredible in terms of the wittiness we have seen -- wh ippiness, the story in the bond market which i think is the real driver of what is going on. look at the sector breakdown. the car sex has been an -- the car sector has been an absolute flyer. volkswagen made an april 1 joke about voltswagen. they have done incredibly well changing the narrative. travel and leisure continues to do very well, which is surprising when you look at the news flow. we are about to see france go into lockdown. we will see an extension of that story in italy as well. the market has suffered as a result of what has been going on with the yield pickup. sectors in negative territory.
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let's talk a little bit about the stoxx 600 on the quarter. it has been an incredible run. if you are an investor -- that is if you are a euro investor. 7.75%. let's show you some individual stocks via the mrr function. we are talking about stocks out of stockholm. look at the car sector. a similar narrative. a gaming story. and then you have porsche, volkswagen doing incredibly well, absolutely flying in terms of their quarter thus far. cd projeckt down at the bottom and is well, but a bunch of yield plays. but the car sector i think has
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been an absolute star this quarter. the question is, are we going to finally see the sector being valued away from the near dead position? certainly a very strong start. alix: you just want to keep saying voltwagen. guy: it makes me chuckle. it was a really good joke, i thought. alix: a really weak public debut. sophie legate, senior equity analyst, joins us. what was your take away from this 27% decline on the first day of trading for deliveroo? sophie: fundamentally, this was a shock. i have always thought that delivery had issues and there were some negatives that were unanswered going into the ipo today, but the sheer scale of the drop-off i think has been surprising across the market.
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that is really about the anxiety relating to workers rights. guy: is that what it is, or bad timing? they are basically coming to market with a product that delivers food to people's homes at a time people probably want to go out to restaurants. sophie: we are seeing a perfect storm. i think you are absolutely right to bring that up. it is a bitter pill. the timing is not ideal. but at the same time, you can also understand why they would choose now, because conditions are about as good as they are ever going to be. the general market, outside of delivery controls, it has not been a good day. this selloff has been particularly severe. it is my belief that it is
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largely to do with the huge concern over the commentary re. alix: let me ask you that. if it listed in the u.s., would it have been the same kind of ipo? sophie: this is a really good question. it is absolutely right and i think it's fair to say that london is potentially -- it is less accommodating to profit or lossmaking companies. if you look at the nasdaq, it is more of a norm for these may be more speculative options, and it is not as much of an outlier, whereas london is potentially more conservative. that is something we heard -- we want to try to change that. but at the moment, we are not necessarily welcoming profit. guy: if i am next in line, what
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do i think about what just happened? if i am thinking about a london ipo, what do i think? is it going to put people off, send them elsewhere? sophie: i think it is fair to say that from a london p.r. perspective, today has not been good news. it could potentially put people off, yes. the extent of that, when the trade moves on, when things have calmed down a bit, it might be that that is completely incorrect and that is a bit of an overly cynical view. but i do think it could put some people of london, yes. alix: it is interesting that you said before the u.s. is more accustomed to lossmaking companies and has a different stomach for it. the narrative is that london wanted to become this area where all these new ipo's were going to go. but it feels like they don't want it. do you feel like the market environment is saying no to these type of tech companies and yes to the boring minors?
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sophie: based on today it is not a huge leap to say maybe that is a mindset still existing. whether we are seeing a shift potentially, you could consider whether choosing london is a step in the right direction. i think we are going to see a shift. it is just maybe slower, the movers sinking. this could all kind of be -- it could flip. if delivery is done -- if delivery had done really well, we would be having a different conversation. guy: it would be interesting to see how the rule changes react to this, but i think a lot of people are really surprised in london as to how this has gone. this was really built up over the last few weeks as being a pivotal moment in london's transition. really appreciate your time. sophie lund-yates, thank you
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very much indeed. a final look at numbers, deliveroo is certainly a factor in london. the auction process, these are the closing prices for the quarter here in europe. a slightly negative day-to-day, london on performing a little bit during the auction, down by 0.9%. ♪
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>> coming up, dallas fed president robert kaplan at 1:00 p.m. in new york, cyclic p.m. in london. this is bloomberg. -- 1:00 p.m. in new york, 6:00 p.m. in london. this is bloomberg. guy: welcome back. the news flow moves quickly. the traffic flowing again in the suez canal, according to the suez canal authority, 81 ships crossing the waterway today.
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hundreds of vessels still waiting to get through. for more on how this blockade is affecting supply chain and how business is going from here, the ceo of purell he -- pirelli, the italian company that produces tires for motorcycles, a big part of the ev transition. we really appreciate your joining us on this capital markets day. i wanted to get your take on how your business is doing right now. we are seeing many companies that we are talking to complaining, worried about how their supply chains are being affected. with a shortage of shipping containers and everything else, are you suffering a similar problem right now? how are your supply chains holding up? marco: with the supply chain, luckily, we control this with
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some cost, to shipment via air. anyhow, we are not interrupting our production. the costs in the markets where raw materials are growing, we are cautious about prices. alix: that is supply. in terms of demand, do you see right now as europe remains very much locked down? the vaccine take up, very anemic. marco: we see a very strong market in china. we see the market in the u.s. recovering quite strongly in some areas. europe is obviously under the effect of the lockdowns. but there are some signs of willingness to return to consumer attitudes positively.
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i am confident that in a couple of months, the environment will change. guy: and things will start to pick up. you mentioned a moment ago that you are trying to push prices higher. you are facing an input cost issue and you are trying to pass that on. what is your ability to set prices higher at the moment? are customers willing to take higher prices? marco: i have to say that at this moment, prices are going through quite easily because our customers, they have stocks that are very low after 12 months of pandemic. we saw everyone reducing stocks. we did the same. now there is demand becoming stronger. there is a growing trend, as we mentioned. but those in some regions of europe, it is tough.
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alix: how long do you anticipate the pricing power to stay for? how much inventory build do you expect until we top out? marco: i expect we will have a couple of months of rebuilding inventories. then, the demand of consumers, we saw in china, will begin quite strong. so now is the so-called cell-in the. and then the sell-out will come. and in china and the u.s. coming out of pandemic is very positive. we split it into two points. one is small businesses, tourism, restaurants. others have had income and have been saving money in the last 12 months. and the governments are trying to support the weaker parts, also to inject money to support business.
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guy: marco, this month, this quarter, has been dominated in europe by a complete review by the markets of the auto sector. it has been led by volkswagen. alix and i were joking the company now wants to call it self voltswagen, i think in april. . pushing this hard, how is that ultimately going to affect you? tires are not going to be different on ev's. i'm curious how we will evolve from here and how the margin is going to compare with internal combustion vehicles. marco called the ev tires, where we are focused, they are asking for more technology. you see the acceleration of prestige cars.
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ev's or traditional engine, it is absolutely amazing, the difference. the structure of the car is different. the momentum, the acceleration is different. also, we have to produce lighter tires that have better resistance, to reduce the consumption of energy for the batteries and to sustain that the batteries make the cars heavier. the technology, when you face a premium car electric engine, you see the difference, because the acceleration is immediate. it is immediate. it is really in need of more technology. that is why we have better prices for the electric tires. alix: to beef up offerings, what is the likelihood you may look at m&a?
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we keep hearing about components and breaking discs. what are the -- braking discs. what are the conditions of that? marco: we have a very good relationship with rainbow. we see synergies between the two companies. so we have a good relation. but we would go toward a technology that is proprietary in the future. we are open to any agreement that creates value. alix: marco, we appreciate your time. marco tronchetti provera, pirelli ceo. we will speak to a university college economics professor after the break. ♪
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alix: french president emmanuel macron will address the nation in a few hours. he is expected to impose a new national lockdown come up with covid cases a big setback for europe. we are joined by an economics professor at the university college london. she has written extensively on national responses to the pandemic and what can be learned from them. she is now the author of "mission economy: a moonshot guide to changing capitalism." what can europe learn from the disaster that has been the vaccine failure and shut down? mariana: different countries across the globe are performing differently. it is interesting to see how developing companies like vietnam have done well on the back of investing in public administration for the last
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decade, because of the prices they have gone through. what we have seen in europe is this complete lack of preparedness even to get basic stuff like personal protective equipment to front-line workers. this is still a problem in the u.k., where i am standing today. with the vaccine rollout, we have been much more successful here, but not because of any deterministic trend around innovation, but because it was connected within the national health service, the actual rollout of the vaccine, so within a community-based practice, every different from how we did the custom trade system, which was outsourced to deloitte and did not do too well. how we govern in crisis matters. the digital divide is another huge problem for students across the globe that today are not accessing education in the same way. guy: is this a failure of leadership or a failure of investment? mariana: i think it is a failure of both. wait things we have done
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including going to the moon was with public and private sectors together. but how they worked together was, but i say in my book, mission driven. it was clear what the role was. and how they designed the procurement contracts was equally ambitious. they even had a no excess profits clause. this might be useful with the vaccine. different vaccines we have have received $12 billion worth in public funding globally, and yet we are not governing that process in a way that guarantees intellectual property rights do not get abused. this is something the world health organization is calling for. they call for a people's vaccine , so we need to make sure we have collective intelligence and not rent seeking. alix: are the right leaders in charge right now? mariana: it depends. you were talking about the automobile industry before. what micron did in france with the covid recovery scheme was quite ambitious and said he is
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not there to bailout air france and renault, but make them better companies. they have to commit in order to get the french recovery package to lowering carbon emissions over the next year. in the u.k., we gave a hand out easyjet in the sense that recovery should not be a bailout, it needs to build back better. that does not happen in less it is within the contract. that is why a mission, purpose-driven approach is how to set up more symbiotic public-private partnerships. guy: in the united states thus far we have subsidized income and now we move onto the next phase of the infrastructure plan. my question is, are we going to see that plan delivering the jobs the united states needs so desperately? we are in a moment, i think, in transition in the states, but is the big government going to benefit everybody within the u.s. in terms of the jobs we are
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going to be providing? mariana: hopefully it will. don't forget that even after the financial crisis there was a huge injection of liquidity in the system globally, but particularly in the u.s., and unfortunately most of that went to the financial sector. this time around, we have a more ambitious plan through the american recovery plan and the build back better infrastructure investment which might be up to $3 trillion, $4 trillion. it really does build back better , depending on what we mean for infrastructure. we need to have a green transition and a vision, a green deal, which the u.s. was picking up quite a bit for covid struck. what does it mean to have a green lens on the covid recovery infrastructure plan? i think that is where the discussion is going to be, but also how to make sure we don't just end up bailing out a lot of sectors, but help the u.s. economy become less financial iced, with -- financialized come
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up that engages with workers, not massive share buybacks. something like $12 trillion just to buy back shares in the large corporate companies. there is something to making sure we rethink that as well. that needs to be embedded within the conditionality's of the recovery program itself. guy: thank you very much indeed. really appreciate your thoughts. interesting book. mariana mazzucato of university college london. the big story is waiting for biden's speech. alix: neil bradley will be joining "balance of power" to talk about this, so don't miss that. guy: and you and i are going to radio. this is bloomberg. ♪
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>> from bloomberg's washington, d.c. borrow -- bureau, i'm kevin cirilli. taylor: and i'm taylor riggs. kevin, love that we are together today, because there is such an important conversation going on about the world of infrastructure. kevin, within the markets, you take a look at repricing, that reflation, inflationary trade. we are still at 1.71 on the tenure. the russell 2000 the big outperform her yesterday, gaining again today. what we see around that infrastructure plan, what is the narrative in d.c.? kevin: our worlds finally collide, taylor riggs. it took long enough. here is what i will be watching as president biden goes to pittsburgh. we have to talk about taxes. we know the democrats want to raise the corporate tax rate from the currentev o

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