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tv   Bloomberg Markets European Close  Bloomberg  April 8, 2021 11:00am-12:00pm EDT

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guy: from london, i'm guy johnson. alix steel is over in new york. we are counting you down to the european close on "bloomberg markets." brussels urges unity on estrus vaccine -- on astra'a vaccine -- on astra's vaccine. vaccination rates are starting to pick up. accounts from the latest ecb meeting highlighting concerns that the slow rollout have vaccines will hit growth. "weakness in activity might continue well into the second quarter." we were talking about tesla just a moment ago. the company slamming germany's approval process for its new factory, describing the timeline as "particularly irritating." let's take a look at where we are with equities in europe and where we are with euro-dollar as well. the dollar starting to come under a little bit of pressure. the euro stocks up by about
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0.5%, and we have just retaken $1.19 in euro-dollar. alix: i love that irritating remark. it is sort of like germany is a fly that tesla is trying to swat away. three taking $1.19 on euro-dollar. it definitely feels like -- retaking $1.19 on the euro-dollar. it definitely feels like it is more of the safety trade when you don't want to take on the cyclical or value risk. the s&p tech index is up over 1.7%. yields down on the tenure by about three basis points. the vix is still very low, and it looks like implied volatility in the vix in the summer looks to be picking up. what that means i'm not quite sure. crude continues to take a hit. part of that story is india, suffering more demand, less need for gasoline, as cetera. call -- gasoline, etc. crude now below that $60 mark.
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guy: that astra vaccine really critical to what is happening in india right now. they are vaccinating huge numbers of people because the population is absolutely enormous, and that rate at the moment is really touch and go. despite concluding that the astra vaccine but if it outweighed the risk, europe is very much divided on how to interpret and implement that safety report. the health commissioner calling on the governments to form a coordinated strategy, saying it will be "easy for us to speak with one voice." germany looking to speed up the country's vaccination drive by spreading out the gaps between the first and second doses. many other countries basically limiting the astra shot for the over 60's. behind all of this is a pickup in the vaccination rate across europe, which is really positive and maybe a little underreported. joining us from brussels,
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bloomberg's maria tadeo. this is a question i am trying to figure out, whether or not we have reached peak pessimism it comes to europe. case counts, hospitalizations remain incredibly high. europe can't get his act together and be on the same page when it comes to what to do with the various shots it has at its disposal. you sent me an email earlier on which highlighted the fact that we are seeing a significant pickup in the vaccination rate. maria: yes, and to me in continental europe, that would seem to be the next story. we talked about europe being a mess at the beginning. we talked about a very slow rollout. but if you look at the numbers right now on the table, they are painting a picture that is much more nuanced, but also more optimistic. yesterday, germany had a monster day when it comes to vaccinations. it is vaccinating more than 60,000 people. that is what the u.k. would do in a good day.
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they have now managed to bring in the general practices to help out. the french today confirming that we are going to hit 10 million vaccinated people by mid april, then take it to 20 million, then take it to 30 in june. we also have the spanish prime minister saying distribution will triple in the second quarter, and we are going to get to herd immunity in august, so that is a month before scheduled. they said september 21 was the cutoff date for herd immunity, so we do need to see whether that momentum picks up, but i think it is undeniable that the tone has changed. alix: such an important point. thank you so much. also joining us for his take, jacob kirkegaard, german marshall fund senior fellow and peterson institute for economics senior fellow. do you agree? are we at peak pessimism here? are things in europe no longer really bad? jacob: i absolutely agree with that. we are at the stage where
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europe, rather than looking backwards and looking towards other countries like the u.s. and the u.k., are really looking forward to the tripling, quadrupling of vaccine supply in the second quarter, but also beyond that, as one of the probably most important locations for vaccine production to vaccinate in the second half of the year is not just the european union itself, but actually the world. we had the commission today saying that they are confident the eu would reach its target of producing 3 billion vaccines at the end of the year, so this is very much a european union now looking forward rather than backward. guy: when does it start to have an impact in terms of hospitalizations and deaths? the u.k. locks down hard and vaccinated its populations. are we seeing a similar thing happening? is the lockdown that is being implemented in many of these countries strict enough to allow the vaccine programs to have as
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quick an impact as we have seen in the u.k.? jacob: i think there is no doubt that relative to the lockdown in the u.k., the continental europe lockdowns, almost all of them have been much less severe, and therefore we should unfortunately expect that hospitalizations and deaths will remain elevated probably for at least another two, three, maybe four weeks before we see improvement in vaccination rates. alix: what happens if things get worse? i spoke to dr. catherine janssen, one of the pioneers who devised the pfizer vaccine. here's what she had to say about variants. >> knowing that viruses can be very crafty at times, we need to also be prepared on getting ready should what i call the
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nasty variant really occur. alix: she's talking about a nasty variant. like, we haven't seen the nasty variant yet. if that comes up and we have recurring boosters we are going to have to take, is europe going to be in a different place? jacob: i think that is fundamentally the case because you are now starting to see the coming online of all of the new vaccine supply that has been building up over the course of the first quarter, and you are very much in my opinion seeing the benefit in europe of actually maintaining a high level of open trade and free trade in vaccine and vaccine components because europe is able to source supplies from around the world without the risk of any trade retaliations and the like, so yes, i am convinced that europe would be in a much better position to also produce any reject booster
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shot addressing new, nasty variants. guy: jacob, i hope we haven't lost you there. there has been damage done. i am wondering how severe it is, both in terms of the relationship that the eu has with its own population in the relationship it has with other countries. how significant is that damage? is this something that will fade quickly, or do you think this is something that will actually have an impact on the eu, its cohesion and its reputation for quite some time? jacob: i fundamentally believe that the damage that has undoubtedly been done is going to be largely mitigated by the fact that at the end of the day, europe will be at or very close
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to its target of 70% of the adult population vaccinated at the end of the second quarter, and certainly over the course of the summer throughout the eu. at the end of the day, that is leading to general reopening of the economy, and not that different from what you are seeing at the national level in the united states, or for that matter the u.k.. at the same time, i think it is part of the communication narrative that eu leadership has to emphasize, namely that it is the eu that has been taking the brunt work of vaccinating and exporting vaccines from around the world, something that the united states obviously has not done, the u.k. has not done, although we heard today that maybe they have been sending some vaccines to australia. but the point is that actually, it is the eu that has to be a good global citizen when it
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comes to vaccine production and exports, and that is a story the eu needs to make much more forcefully. and if it does so, i believe any reputational damage it will have suffered will be mitigated, and that ultimately, europeans will be vaccinated over the course of the summer and will mitigate the damage suffered domestically. alix: so would you book a plane ticket and vacation to the greek islands? are you that competent? -- that confident? jacob: if i were to do it in august, i certainly would do that. alix: guy, c, maybe you can go. it could happen for you. guy: it comes back to the issue of whether or not governments are going to be scared of variants, and i think this is the deciding factor. it will be interesting to see. what is your take on that, jacob? clearly, and we were hearing a little earlier on about the concerns of variants still to come, do you think governments will be more restrictive as to
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that fear? jacob: one of the areas where we will start to see it is that so far, from what we know, the mrna vaccine that band tech -- the biontech, pfizer, and return a use seems to be pretty effective ash and moderna use seems to be pretty effective, whereas what we are seeing from latin america and others is that other vaccines might not be. i think you are going to potentially see governments in the sizing or focusing melanie's --'s focusing more on these mrna vaccines, particularly in europe, the united states and the like, whereas you may see other parts of the world be vaccinated by other vaccines, and that will also mean that hypothetically, you can get some first and second tier vaccine passports coming into play where
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fundamentally, governments will be reluctant to let in people vaccinated with vaccines that may not have proven efficacy against some of these new variants. guy: that sounds like it is going to get pretty complicated. jacob, thank you very much, indeed. jacob kirkegaard, certain you -- take of kierkegaard, german marshall fund senior fellow. we will talk about the impact of this is having on the markets. the stoxx 600 on the course for a fresh record. just reached a fresh record high. karen ward, j.p. morgan chief market strategist, will be joining us. this is bloomberg. ♪
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ritika: let's check in on the bloomberg first word news. president biden will announce he is taking executive action to tighten gun restrictions, one of those aimed at so-called ghost guns. people are allowed to i kits to build guns -- to buy kits to build guns. they are called ghost gun's because they do not have serial numbers that can be traced by police. u.s. authorities detained more than 172,000 migrants in march, i 71% increase from february. the biden adminstration claims that the rise as part of a normal seasonal trend. u.s. unemployment insurance but italy rose for a second week. initial claims were up to 744,000 last week. that caused the un-megan the marcher -- the uneven nature of
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the market recovery. global news 24 hours a day, on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i'm ritika gupta. this is bloomberg. guy: thank you very much, indeed. european stocks continue to climb. the stoxx 600, another record. joining us now is karen ward, j.p. morgan chief market strategist for emea. the u.s. recovery when it comes to the stock market has been significantly more aggressive than europe, but europe is starting to play catch-up. we have been talking about the vaccine program, talking about the fiscal programs in the -- in europe. has peak pessimism in europe been reached? what is the market narrative, and will that valuation gap start to close? karen: i think that is an aspect of the story, but to me a great component is how the sectoral changes are really what is
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driving regional movements. the reasoning we've been making to clients is if you get the sectors rice, you're going to get your choice, given that the u.s. is much more heavily weighted towards tech and growth stocks and europe is so much more heavily weighted towards financials and value stocks. i think that is the key story of what is going on here. it is not so much about the macro. it is about this rotation we are seeing from last year's winners, which was clearly tech and online e-commerce, and those losers last year, financials, energy, industrials, and that rotation we are seeing. that's why think europe has pulled away from the macro story. i think that rotation still has room to run, and the macro tailwind relating to that rotation. alix: the other part of the macro tailwind is how much
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slower the vaccination rate was in europe. that seems to be abating somewhat, which leaves the potential for catch-up. where does that macro story interject with your rotation story? are there areas of the market that can have some extra juice? karen: i think there's a couple of ways. first of all, i think when we get to that point of synchronized global growth, i think that is when we see a further leg up in global bond yields. if we think about what happened in the bond markets through the course of the year, the first few months, we had bonds setting off, then the bond program was looking problematic in europe, ecb was cautious, and they really lead against the rising bond yields we saw on the continent. therefore the gain we have seen in financials sort of started to stymie off at that point. as we get that global thinker nice growth, we are going to get another leg up global bond yields, and that is going to
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help the financial story play out. the one other interesting area as we get into global thinker nice growth is going to be some of the other cyclical areas, particularly the industrials. i think it is going to be interesting to see that actually, investment comes back pretty quickly as that global growth story picks up. it is really surprising to me that they are pointing towards companies feeling quite optimistic about investors spending. europe can be a beneficiary of that, as well as climate tech, which we think is one of the key themes for the cycle. guy: you said something earlier which i thought was interesting. there seems to be disbelief that all of the values in europe and all of the tech is in the united states, yet evidence suggests that the value in the united states has better earnings momentum than the value in europe. if you think about u.s. versus europe on the value front, isn't there a danger that you get
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caught on the wrong side of that? karen: i think that is really fair. you are right, you are dissecting within global value. you could argue that there are areas of u.s. value where the earnings are likely to be more swift, and you can access that scale at relatively reasonable prices. so i think as a value comparison, you are probably right. it is largely in the u.s. favor, but the benchmark might become much more about where, if you are wanting to access global financial or industrial stories, that global rotation is the european benchmark which will give you some access there. alix: how do you look at china? the pboc is ordering banks to slow their credit growth. how do you thing about that part of the macro story? karen: it just feels like we get to this point every couple of years. alix: that's true. it's like a broken record.
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[laughter] karen: the fed is like, we want quantity growth above quality, so we are going to focus on deleveraging slightly. we thought, goodness, beijing is going to implode, but their ability to find tune that economy is absolutely spot on, and every thing is fine. i think people see exactly the same thing again. i think beijing are just taking the right long-term approach to managing this economy. they don't want to see property froth. therefore they are a pretty controlling credit, but will the macroeconomy be affected by that? now the other thing to remember -- no. the other thing to remember is that yeah, growth inside of the pmi's are not going to be at the level we see in the united states or europe because economies are not going to boom
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in the same way. so the level of activity is already at trend. to me, china is still steady as she goes, although from a macro perspective. i think that growth across asia will broaden out as part of that industrial upturn. long answer, but i'm worried. alix: ok. that sounds pretty good. karen, thanks a lot. we appreciate it. karen ward of jd -- of jd morgan -- of jp morgan asset management. this is bloomberg. ♪
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sec. yellen: we are working with g20 nations to agree to a global minimum corporate tax rate that can stop the race to the bottom. >> what want to hear -- relative
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to this. >> there is a unique window of opportunity to have a new international taxation system which would be more efficient and fairer. >> the part of the usa gives this initiative as a tailwind. >> the hope is by this summer, we will be able to reach agreement on the tax issues. >> it would make sure that profits cannot end up in tax havens. we have a blueprint which is ready. building on the blueprint, i think we could have such an exhibition by this summer. >> taxation will play less of a role in the future of attracting companies if we have a common framework. >> we have had to stop the race to the bottom on corporate taxation. alix: you just heard some of the world's finance and economy chiefs giving their view on the global minimum corporate tax, but what is l.a. interesting --
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what is really interesting is the biden adminstration blew this issue wide open and really shook up negotiations that have truly stalled under president trump. guy: i think nobody expected this. it has caught a lot of people by surprise. it was interesting to here with the irish had to say to us, but it is also interesting to compare and contrast that with a much more positive view. i think it is going to be difficult for certain tax jurisdictions to continue in their current policy, but it is going to make like very difficult -- make life very difficult. anyway, the european close is next. this is bloomberg. ♪
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guy: we are wrapping up the thursday session in europe. let me give you some numbers.
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the stoxx 600 continuing to push up to further press record highs. europe has taken a longer time to get there. 436 is the number on the stoxx 600. up around .5%. volume beginning to come back. let's walk you through what we are seeing around europe. i want to start with the ftse 100, having a relatively positive day. beginning to approach the 7000 mark. the dax, low bit of a laggard. the ftse mib in negative territory. some of the banks have been acting avenue a significant drag. -- have been acting as a significant drag garrett in the currency market, we are continuing to see a little bit of a return to warm for the euro. euro-dollar back a bomb -- back above 1.19. as you can see, 1.1902. the dollar more on the back foot
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over the last few seconds. the euro making up a big component of the dollar basket. in terms of the play we are seeing in europe and the rotation we are getting, much more defensive skew at the top of the market in terms of what is working well. utilities, you have health care, you have some of the staples. the bottom end of the market, energy underperforming. the car sector coming down. banks are under pressure, down .5%. i want to wrap up on this. we are seeing a similar story in the united states. this is a more tightly defined but still interesting volatility index for europe. we are trading at 16. it got up as the pandemic hit. 13 was the pre-pandemic level. we continue to track lower and lower. that move pushing further on.
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we are beginning to get down to levels we were pre-pandemic. 16 now, 13 pre-pandemic. alix: ecb president christine lagarde says government cannot afford to let up evidence -- to let up efforts to support the region's economy. that is policymakers decide to ramp up a bond buying under their $2.2 trillion emergency program. joining us is bloomberg opinion columnist marcus ashworth and still with us is karen ward. marcus, what did you make of the fact that we saw such strong demand for assets out of italy today? marcus: the fact they priced it cheaply. i get the point they have not issued in five years and they have to make sure this went well, but there is cheap pricing and there is ridiculously cheap pricing. there is a 2067 existing bond.
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adding an extra four or five years should not have much of a curve affect. they priced it 14 basis points cheap. whether that is the right measurement or not, look at where it trades now, which is three bond figures higher than where it came. that is an awful lot of money to leave on the table. no wonder you get 12 times coverage of the deal. it was an absolute after. -- it was an absolute gift. guy: karen, you talked about the financials within europe. in terms of the backdrop we have in europe, how different is it what we are seeing in the united states. curves are unlikely to remain incredibly flat versus the united states. there is a macro backdrop and the bank should be the high beta play on the recovery in europe. are we buying european banks for different reasons than we are buying u.s. banks? karen: for the u.s. bank, what
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is slightly more obvious is not only do you a bit of a tail wind from what is happening with the yield curve, but there is more scope for earnings growth from a credit cycle. we've all been focused on governments leveraging up and taken our eye off the fact -- 10 years ago household debt was 100% of gdp it is 78% today. now we have these low interest and households have received a load of stimulus checks. the economy is improving. i think we will get a credit cycle. it will be one of the areas that will cap us out in terms of how much the u.s. booms. that is the aspect of the story that is less obviously apparent for europe. i think you will get the tailwind from the curve. still steepening slightly. do not forget the first six weeks of the year when it was not just the treasury selloff.
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we saw global bond yields everywhere pushing up. it is important to remember about how interest rates were affecting the financials. being repriced is the idea interest rates will be stuck at these levels for the next two decades. as we recover in those expectations start to come in, out be at the interest rates will stay low for the near term but not forever. that helps the financials. i take your point. given extra story in the states. alix: with the infrastructure bill for sure. i'm starting to read about the doom loop for banks. they are buying their own country's debt. is that a thing? are we going to be talking about this again? every three years are we going to have the same conversation. marcus: every three years? it is every three weeks. it is a real thing. i even had a conversation about target two worries.
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six months ago it was at a peak. it has come down since then. if you put a lot of qe in the system on top of already existing qe and the regular asset purchase programs, these bonds have to go somewhere. logically if you are funding your banks in europe at -1% through the tltro's, they have a complete free round-trip. no wonder they by fifty-year equity or whatever it may be. you are making so much money. at some point they may even lend in the real economy. at the moment there is no doubt about it that every bank got a free handout in the european central bank world and they will get supported and they will make lovely money. that is the logical reason for worrying about the doom loop. one should worry about it but that is for much longer reasons.
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guy: the way to get out of the doom loop and deal with the issues europe faces in terms of its debt levels is to generate growth. the mario draghi press conference, the prime minister of italy just starting right now. he is talking about infrastructure spending. recovery planning to cover all of italy with optic fire. this is what mario draghi is talking about right now. there has been a narrative that europe is very slow in terms of the rollout or the recovery funds that are produced months and months ago and nothing has been done. the french finance minister was voicing his concerns about this. i had to come back to the compare and contrast, but the narrative for u.s. investment is europe is not delivering on the fiscal front. is that narrative correct and you think europe is capable of delivering infrastructure same way the united states is? karen: when we compare fiscal,
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the difficulty comparing the u.s. to europe is they are not headline announced packages the same way they are with the states. biden announces 1.9 trillion fiscal stimulus package. we can get into arguments on what additional booze that is to the economy. so much of europe is by the automatic stabilizers. if we compare how household incomes have been propped up or employment has been propped up, it is difficult to contrast. there is no doubt, biden is demonstrating to the world an interesting experiment. i am fascinated to see over the next six months how an economy is already recovering and they are at 8% gdp and savings already waiting to be spent, and then you stiffen other 9% of gdp on top of that, what happens? i think it will get interesting and i do not think europe will follow suit and anywhere near
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that kind of negative. governments everywhere will be taking note of what is happening in the u.s.. they are under no desire politically to go back to austerity your this is so important. this is how this cycle is going to look completely different to the last cycle. i do not think government are going to turn back to austerity anytime soon. i think the growth but also the inflation contours could be very different. alix: to that point, mario draghi talking about the government focusing on high-speed rail links to the south and north. it is the dream. marcus, question from a viewer. they wanted you to expound on the target two fund. can you break that down? marcus: target two is the plumbing of the european union, it is simply how you bond a purchase of -- how you fund a
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purchase of washing machines made in germany for a department store in spain. it goes to the corresponding banks to the national central bank in than the central banks of an offsetting accounting measure and attracts the flows of goods and capital. qe makes it very difficult to read into what is really going on, the transfer of money is between germany and spain. what we have noticed is the overall balance have grown, where you have almost underfinanced, the high production exporting countries, have a debit versus a credit where the peripheral countries in europe have a big debt. it is not actually how it works. it is just how the euro system is financed. it is exactly the same as how it works in the federal reserve. it would be of no relevance at all if in north carolina somebody decided to leave the union.
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likewise if greece would leave the european union. guy: on that note we will leave it. bloomberg opinion columnist marcus ashworth and karen ward of jp morgan. european close final numbers. equity market bid, stoxx 600 up to a record high. we have seen notable laggards. italy is one. financials under a bit of pressure. ftse 69, nearly at the 7000 level. we have been through the 50,000 level on the dax. the dax has been surging. u.s. investors looking at what is happening with the industrial story. interesting to see what karen ward had to say. this is bloomberg. ♪
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ritika: this is "the european close." coming up tomorrow, an exclusive interview with richard clarida at 8:00 the new york, 1:00 in london.
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this is bloomberg. >> if you do have a great company, you can hold it if markets go up and go down. spac can be great -- such as the merger we did. i would emphasize -- if the market closes, then we close the companies for longer and continue to stay invested and ultimately -- guy: blackstone senior managing director and cohead of u.s. acquisitions for private equity. the private equity group within that business. let's stay with m&a. global volumes reaching $1.4
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trillion in the first quarter of 2021. it accounts for 70% of all the deals. joining us is carried coachman -- cary kochman. sonali basak has also stopped by. there is an m&a boom. spac's are a big part of that. you get a sense that story is now starting to slow down. do you think there are concerns growing about what is happening in the spac market? cary: in general the market has rebounded incredibly from where it was in march and april, which was a standstill. the volumes you are talking about are incredibly robust. in terms of overall activity, spac for the first quarter accounted for just under 13% of level activity. there of a lot of spac ipo's, a lot of capital raised. the market is processing that. i think it is a corporate
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solution that offers a lot to the various constituencies. i think it will continue apace. sonali: why is it that you've seen major spac whales, why is it so hard to get a deal done? bill gates had made the point that maybe some of these companies are going public too early, right? cary: there's probably a bit of indigestion in the market at the moment. that is the primary cause. i presume that will get work through. you have rapid growth in the funding of the ipo side of this. in terms of too early, let's be clear. the pipe process enables institutional investors, legitimate institutional investors to invest in companies that they want to get investment into earlier. many of the companies that are undergoing spac have late rounds of opportunities. they have lbo opportunities,
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live sale opportunities, they have ipo opportunities. they have spac opportunities. alix: it is alix in new york. i wonder if there has been lessons learned about previous m&a, like facebook buying instagram back in the day. now we have heard that twitter may be approached clubhouse. where there lessons learned previously, like you want to stay private longer? cary: if you think about it, there are major things and non-things that benefited by being public. i think the tide has reversed. the access to capital the public markets affords makes a lot of sense. also we are at a moment where public market valuations, even pa multiples, are in excess of private market multiples. that is very rare.
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we go back to the 2006 timeframe , it was very much the inverse and we saw a lot of companies going private. do not think any of this is unexpected at the moment. guy: alix brought up facebook and instagram, which brings me onto what comes next for the biden administration and the new regulatory approach likely to be taken. what kind of deals do you think are not going to happen under this administration? how different is the landscape going to be? cary: it is difficult for someone to speculate on deals that will not happen. what i would say is there is a fragmented, robust enterprise art of technology. i would say there is tremendous innovation going on across health care, across ev, cross electrical. while this is certainly an
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administration that has suggested it is going to take a harder look at antitrust issues, i think there are lots of segments where i do not see that being an issue for the receivable future. sonali: if you took a look at the lead tables and what is going on in steelmaking, the biggest deals, the once over $20 billion are boring. it is aviation, it is railroads. alix: it is for guy. guy: aviation and railroads is not boring. sonali: highflying tech names when you look at the rest of the year and what people are talking about, what kind of scale are we talking about? how many mega deals and where could they be coming from? cary: i do not think those are necessarily boring. what you're saying as they are non-tech strategic deals. this is a market that is
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characterized by strategic activity. 70% is purely strategic. even when you look into the pe side, 90% is buying and selling. i think we will see, and we certainly are seeing increasing activity amongst the larger strategic deals. the part of the market that has come back strongly and driven the market in north america is the $10 billion part of the market, the part of the market we should look to return is $20 billion plus the strategic deal market. in fact the transcontinental art of the market. in the first quarter of the 10 largest deals, only one was transcontinental. sonali: there is been a lot of talk about young bankers and how they've have been managing the deal flow. we had the news earlier this year about citigroup making those zoom free internal spots for folks. what else may be doing for the young folks?
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we just her this morning about bank of america offering more cash to their younger people. we have heard all sorts of things. what kind of feedback are you getting? cary: we are doing numerous things to improve more out -- to improve moral and we are tremendously focused. having community and interaction from seniors with the most junior members is critically important. we all look forward to a day when we can have a better sense of community and return more collectively. it is a significant issue in an apprentice business where you have high turnover in the junior ranks. we are taking and redoubling all efforts on the matter. alix: young people makes me feel very old. thanks a lot. kerry coachman, citi cohead of
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m&a breaking news on visa. u.s. antitrust investigation being opened up on the company they will scrutinize the deals the company now has with banks to entice them to process more online debit card transactions over its network that obviously surge during the pandemic. it looks like it is basically a facing potentialcrutfrom antitrust investigators. this is bloomberg. ♪
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alix: in just a few moments president biden and vice president harris as well as attorney general merrick garland will be addressing the public in the rose garden, talking about gun violence prevention. we are expecting them to talk about ghost gun's, where you can assemble guns that do not have a number so they cannot be traced. we will bring that to you and
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any headlines that cross as well. also in a few minutes, j powell -- jay powell will be on a panel at the imap spring back meeting. that could be something. that could be fun. nothing different, but still. guy: the messages consistent from the fed which is fascinating in terms of communication strategy. i think it will be interesting. q&a, we will get that from the moderators. i'm certain confined that online on your bloomberg. we also have the mario draghi press conference as we see the president walking out to the podium. we are getting the vice president kamala harris making initial remarks. we'll hear what is said over the next several minutes continue to bring them to you. alix: will update you on any of those headlines. there is also other stuff in the next 24 hours.
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you have german thomas payne, and france industrial production numbers. rio tinto has a huge amount coming from the dirty stuff no one wants to talk about. most of the revenue comes from coal. how do they green coal? that should be a big question. guy: copper will be fascinating as well. balance of power worth paying attention to, seeing what is happening in switzerland and credit suisse. alix and i will go over to the table with discussion on what is happening in the markets and monitor the discussions we are getting from the white house. this is bloomberg. ♪
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david: from bloomberg's world headquarters in new york to our tv and radio audiences worldwide, welcome to "balance of power," where the world of politics meets the world of business. i am david westin. we have two ongoing events at this hour. jay powell will be speaking on the economy at the imf and we'll bring you highlights of that throughout our program. at the same time, president biden has just begun speaking at the rose garden. he will be announcing executive orders including ghost gun's. you can watch that using the function live go on your terminal and we will bring you any headlines. let's check it on the markets with abigail doolittle. it has been a lackluster week. low volume. abigail: not a lot of action. yesterday crickets was the name of the game. today more. we do have gains with technology shares. that has to do with the fact that rates are lower. the s&p 500 is up about .3%, carving out a new all-time high. the nasdaq outperforming, up closer to 1%. that has to do with tech.

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