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tv   Bloomberg Markets European Close  Bloomberg  April 9, 2021 11:00am-12:00pm EDT

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guy: from london, i'm guy johnson. alix steel is over in new york. this is the european close on "bloomberg markets." germany's vaccine rate doubles. the u.k. delivers a roadmap for return to international travel with expensive testing and a traffic light system that would likely leave most of europe leave most of europe off-limits. and prince philip, the husband of queen elizabeth for more than 70 years, has died. we are seeing a selloff in the bond market. we will come back to that story.
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much of the action following that very strong, hot inflation data we got out of the united states in the former ppi. alix: -- in the form of ppi. alix: exactly. in the u.s., we are focusing on that breaking news amazon. they do win over the union. they reached a majority of ballots cast, with over 1600 votes. . this could have been historic if you did have a union formed in the region. that would have been huge for the beginning of what we might see in terms of union fights against amazon, but it looks like that is not following through their. also within the markets, we are taking a look at what is happening with yields, with inflation. in terms of the overall market, we see safety still being on the back foot. you have industrials, energy all leading the way, but it is a pretty flat market overall. you're just looking at amazon right now. the vix pretty much going nowhere.
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yields pushing higher, but that seems to be more of a european story. nevertheless, amazon up now by 0.5%. guy: we are also getting the budget details coming out, the skinny budget if actively being delivered by the biden adminstration. the biden adminstration is seeking an 8.4% fiscal year 2022 budget increase. that takes the number up to $1.52 trillion. the headline this dropping on "the new york times" is worth bearing in nine. basically, an increase in terms of the budget for fiscal 2022. the money just keeps pouring into the economy in terms of the physical process being delivered here. it is going to be interesting how the politics works around all of this. i continue to follow mr. manchin on that front. alix: so $14 billion in climate change investments, for ev and
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charging stations. that is a pretty interesting one as well. also, biden is now creating a commission to study expanding the supreme court. it is interesting because that has been sunday discussed once you had president trump at the last justice on the court. the real issue is how much more of that nondefense spending is going to be going to discretionary, the first time that can happen where there is a little bit more wiggle room. let's see where it winds up getting trimmed down. guy: absolutely. in terms of that amazon story, i think you're absolutely right in terms of what is happening here. but i think this is going to be an ongoing process. we have seen amazon victorious here, but i suspect it is going to be something we are going to be tracking in great deal over the next few months and years is this -- years as this process
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slowly unfolds. i think the fact that it is almost two to one, that is what i reporting was a little earlier on. it is going to be something that i think is going to be repeated. this time, as you say, it has not been an instrumental turn in the way the union evolution has been at work at amazon, but it is just going to be something we are going to come back to time and time again. alix: and the question of what big conglomerates like facebook, like amazon have done in terms of worker power is also something that many have been writing about over the last decade in terms of is that really preventing the phillips curve from working better. let's ask the economic expert on that. mike mckee is joining us. this was a win for amazon. what is the significance here? michael: it is significant for amazon in the sense that it does put a cork in the idea of immediately organizing all of their warehouse distribution centers, which would be a major expense for the company, although not as easy as it would
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seem, and it shows that in alabama. i think if you were going to pick a place to try to unionize any company, alabama would be about the worst. it is definitely a red state, definitely a right to work state, so they picked a tough place to try to make a stand. it doesn't mean we won't see unions rise in the coming years. joe biden is going to emphasize that in his rebuilding plan. but it does at the moment represent a bit of a setback to the worker movement. guy: in terms of what happens next, we have an administration that is prolabor. it is looking increasingly like that is the tone and tenor. you look at what is coming out of the fed in terms of its desire to make sure the labor market works for everybody. how do these two stories interact? the government is going to be spending huge amounts of money.
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there's a relationship with labor, a relationship with capital. how is this going to evolve? michael: the bottom line fight is going to be about whether having union workers required to do certain jobs or putting money into areas where unionized workers dominate the industry is going to be more expensive, and therefore you get less bang for the buck. that is the traditional argument on capitol hill. but in this case, you have the admin astray should pushing the idea of union jobs, and the reason is that over the years, since unions have declined, we only have about 10.8% of union workers -- of workers unionized last year, we have seen wages and salaries increases decline, and the administration is tying weaker wage growth for the bottom 99% to the idea that labor has lost power. so there's going to be a real push on that. the build back better plan, the
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infrastructure plan calls for prevailing wages. they don't say you have to hire union workers, but you've got to pay prevailing wages, so you would be looking at union type wages for many of the jobs that the adminstration wants to do. alix: michael mckee, international economics and policy correspondent. to repeat here, amazon wins over unions. the count is still ongoing. guy: let's talk about what is dominating the agenda over here in the u.k. prince philip, the husband of queen elizabeth, died today at windsor castle. he was 99. while he had no official constitutional role in the monarchy, he became viewed as one of the most influential members of the royal family. joining us with more is emma chandra. emma: he was the longest serving consort to a british monarch in history. the flag is flying at half-mast over buckingham palace, where
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we are also seeing people lay flowers both there and at windsor castle, where we understand prince philip died peacefully in his sleep. wall-to-wall media coverage here in the u.k., and also political leaders in the u.k. paying their respects and will be suspending campaigning ahead of local elections next month. in terms of next steps, we understand prince philip is to get a royal ceremonial through neura -- ceremonial funeral. it will be scaled back somewhat, and that is due to covid. the u.k. is still under some pretty stringent restrictions. the queen is going to sign off on all of the plans in the coming days. being the partner to the queen for the last 70 years or more means that prince philip is an international figure, so we are seeing global attributes coming in from commonwealth nations and the wider world. justin trudeau, the prime minister of canada, calling him a man of great purpose and
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conviction. the prime minister of india underlining his career, and ursula von der leyen speaking of her sadness at prince philip's passing. alix: we really appreciate that. thank very much. joining us now for more insight on the legacy of its is bloomberg editor-in-chief don micklethwait -- editor-in-chief john micklethwait. walk me through the last 70 years, the legacy that prince philip now leaves behind. john: i think he will probably be room embers for the kind of role he played. we all watch "the crown," we all see people trying to play him, but he took on this trauma to slick difficult role, and certainly it was a time when men were supposed to be the leaders and things like that, and he filled this role of always being beside the queen supporting her. obviously at times it was
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frustrating for him, but i think he did have quite a big impact. he did quite a lot to open up the monarchy. he did quite a lot in his own way to actually encourage things , young people and stuff like that. so i think he is renumbered with affection, as you can see by the flowers arriving at buckingham palace. guy: he was part of a team. he gave the queen a great deal of stability. he gave the royal family a great deal of stability. the queen's 95. does this in any way impact her desire to carry on as monarch? how pivotal a moment to using this could be? john: that phrase of calling the royal family the firm, where she was the ceo and he was the chairman, sometimes when one goes come of the other finds more difficult. it was a marriage, obviously, but it was also this kind of
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partnership which ran quite a big enterprise. it is no small thing, the royal family, just in the number of people that work for them in the global reach. i think it will be much harder, and i think there's also that fact that as you get old, you don't have the natural possibilities for other jobs. it is a tough job to be monarch, as we are all seeing. so it will be much harder. alix: i apologize if the question seems insensitive, but many couples that have been together for quite a long time, when one passes, the other one can as well. what is the conversation in the u.k. about succession? john: i think that has always been the question of who follows the queen. it has been endlessly debated. when prince charles has been particularly unpopular, people have talked about him stepping aside, may be going down another
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generation and so on. but in the end, if you are the royal family you believe in tradition. if you don't follow that, then every thing else comes apart. there is a famous old economist who said that you shouldn't let too much daylight onto magic, and i think that has been the course that has on the whole, the monarchy has tried to follow. it has had some difficult he following it in the age of television and so on, but that has been the basic way. once you pick away at the threats of why one particular family should rule, then you get into more trouble. i think they will keep on following the same system. guy: are we heading for a slimmed-down monarchy in the u.k.? john: i think in the end, you're lovely to go that way. there's always been elements, and we go back to the corporate
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side, element of being the big blockbuster monarchy on the global stage. you've got slimmer monarchies in places like the netherlands, and the british, for a mixture of grandeur maybe, but also through affection and tradition and some desire to be seen as much bigger than perhaps we are, we have always liked a big monarchy in that sense. so there is definitely an element whereby just the way in which these families of inheritance works, it tends to zero down with each generation. you have already seen that to some extent with harry and meghan. now william has got children, so the effect just keeps on going down. that has been the way it has worked. look at what happened when hit -- what happened with henry the eighth -- with henry viii and others. it is how it goes. alix: thank you very much.
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this is bloomberg.
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♪ >> we are seeing that with increasing numbers of deliveries, the number of vaccinations is increasing as well, and thus we can see this pattern of development. alix: that was german health minister jen spohn -- minister jens spahn. walk us through the current vaccination efforts and how they are doing. maria: if you look at the numbers out of germany, germany had a monster day yesterday. they had more than 700,000 vaccinated in one day. that is what the united kingdom
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would do on a good day, so clearly the numbers are picking up. there's two reasons for this. one clearly is distribution, the fact that you have more vaccines. from now on, in theory they will double each month. secondly, the germans have no open this up to general practitioners, two doctors who are closer to patients. that could make it go quicker. fundamentally, it is also the idea that vaccines are flowing in bigger amounts than they were prior. the one thing i would say is if you look at the german health minister, he did say everyday from now on is not going to be a record, but what is important here is that the system now appears to be working, and it is moving fast. guy: how even is it? germany is moving ahead. are others? maria: if you look at other countries, spain has had a very good week, and they put it down to finally being able to get the
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vaccines and get the distribution to the region. if you look at the french, they had more than 400,000 people vaccinated in one day, which is a record for 24 hours. they were also able to get vaccines to pharmacies. this is similar to the german strategy, to give it to people that are closer to patients, not to have to go to a vaccination center. at this point, italy, mario draghi said he wanted to make this the number one priority. the numbers there are not pickin as quick. alix: just a quick note on the economic data as well. there's a lot of information about production from france and germany, in particular in germany. industrial production was down when new orders were up. it speaks to the issues of those lockdowns. can you walk us through? maria: when you look at the numbers and especially the industry for germany, that data is backward looking, and it was softer than expected, but now
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you have a situation that is really very difficult to read against. on the one hand, you have more vaccines. the distribution does seem to be going faster. but of course, we are still very much led by the infection rates, and restrictions are still happening. so we're are looking at potentially mid-may or april to see an opening up in the european economy. it is very difficult to track because in some ways, they are moving on two different paths. guy: have a great weekend. thank you for the great coverage this week. bloomberg's maria tadeo. ecb policy makers warning of economic chaos for the region if policy moves too slowly, particularly when it comes to the next generation fund. a long delay would be "a disaster," and the risks of a correction are increasing, especially if the economic recovery falls short of expectations. joining us now is geraldine su
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ndstrom, pimco portfolio manager. we've got several picking up the pace when it comes to vaccinations, but others are worried about what is happening on the fiscal front. what is your assessment of the economic trajectory that the eurozone is on at the moment? geraldine: first of all, good afternoon, everyone. i think you cannot time it for a couple of weeks and months, but certainly what we are seeing is the manufacturing sector is in good shape. the order books are pretty full. as we reopen, the service sector is going to catch up. fiscal is going to come, and monetary palace he remains extremely accommodative in europe, but in most countries throughout the world, so i would say the future, especially the summer, looking bright. alix: we saw a huge print from
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ppi here in the u.s. china also had one overnight. are we going to see the scene kind of print in europe, or something different there? geraldine: the ppi tends to be global, a lot of raw materials which touch every country globally. so i would say the one million-dollar question is this ppi pressure is likely to be ongoing as we have a strong recovery, how it will filter to consumer prices. we are seeing that it might not follow through that much and on an ongoing basis beyond the boost within the next couple of months. that is a lot of input patients for margins, for companies and the like. guy: in terms of what this all means for the bond markets, i've got bunds at -29, btp's at
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spot 70. the fiscal is starting to come through. the impact of the vaccine starts to make itself felt. the ecb is saying it is going to continue to hit the bids, but the data over the last few days almost feels like a taper. what is the outlook for the european bond market? geraldine: i think we need to distinguish two things. one is a one off from the reopening, beget a booming growth or a big spike in inflation, and one is an enduring trend. this is really the difference we need to make. i know markets tend to have a short fuse and are very impatient, but our view is that this inflation is a head fake. it is going to ramp up, but by the end of this year, it is going to be tame again. we think this will enable central banks to remain accommodative, and that is the case also in the united states. so this boom is partially a head fake in terms of inflation, and
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therefore, you would levels might be creeping really slowly, and it will be a while before central banks actually hike rates. in the case of the ecb, we don't even have it on our forecast horizon, and in the u.s., we say not until very late in 2023 or even 2024, so for the markets, this is light-years away. alix: if that is the case, have we seen the recent top in bond yields in europe and the u.s.? if that's the case, what is the trade? geraldine: once things have repriced in the context of a multi-asset portfolio, we will have risky assets and we need some safe haven on the others. you have much more attractive entry points. so while i wouldn't bang the table that this is something to buy in large size, it is certainly a moment where in our portfolio, we went from
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underweight to a much more neutral stance, and as yields creep higher, we might be seeing that fall. guy: what do you think of what is happening in credit right now? yield continues to compress. high yields, even the bottom end of the high-yield continues to perform incredibly strongly. how do you compare and contrast what is happening in the united states and europe in terms of the way the recovery is developing? geraldine: i think it is just a question of sequencing. the u.s. is, of course, add of the pack because vaccinations are moving much faster and they are able to reopen their economy. but because the manufacturing sector and a lot of the high-yield names are in the manufacturing sector, they are in the sort of raw materials and all of these areas. it is natural to see credit spreads relatively supported in the same way that equities are. risky assets have all of the reason to be strong at the moment.
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the only thing that could derail this bull market is probably inflation, where to push central banks into action, but this is not our forecast. alix: we only have about a minute left, but i am curious, what is your strongest conviction trade right now, in light of a lumpy and confusing environment? geraldine: i suppose we are looking at those strong secular trends. we are going to have a green and digital recovery, and there are certainly some which happen to be in supported growth areas that are going to get a lot of tailwinds from monetary, fiscal, regulatory tax perspectives that have high barriers to entry and big pricing power. this is where we want to be, semiconductors, forestry, and the food supply chains.
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one is very traditional, the other very more technological in hardware, but we are trying to position ourselves in those areas as neighbors of the recovery. alix: forestry, i don't thing we have heard that one on the show. we've heard boats and trampolines, but i don't know if we have heard forestry. guy: well, thing about what is happening in the lumber market. alix: and the housing market on fire in the u.s. guy: hopefully not. [laughter] let's talk about what's happening with the ftse 100, down 0.3%. the dax picks up volume. we will have details on exec he what this european close looks like next -- on exactly what this european close looks like next. this is bloomberg. ♪
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european equities closing down. let me so you -- let me show you where we are in terms of the session. what we are seeing today is emblematic in terms of what we have seen throughout the week. volume has been like. a lot of people have remained on vacation although you cannot go very far. we have seen the market drifting a little bit higher, not by much. the story remains below the surface. we have pushed up to these record highs. the market trying to focus on what the next catalyst will be. below the surface things are happening. look at what the bond market is looking like, i think gold's reaction to the data on inflation and united states was fascinating. euro-dollar under pressure. in some sense under this run the dollar has seen a starting to fade. today it comes back. we are also seeing the bond market reacting.
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clearly the inflation data out of the united states and china is something worth paying attention to. yields moving higher, prices moving lower. gold on offer. fascinating. john authers writing a nice piece, maybe bitcoin is a better inflation hedge. the dax fights back as the session has progressed. it is peripheral markets where we have seen week spirit amadeus under pressure in madrid. the banking stocks acting as a significant drag on that market. let show you what is happening terms of the sector rotation narrative. this is where i think the focus should be. health care, construction, retail. energy, basic resources, the miners have been under pressure. copper topping out. the energy sector coming down. that run starting to fade. telecom is down as well.
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keep an ion the relationship with the bond market. in terms of individual names, she week -- chewey. today we had the united kingdom talking about the way traffic will work. there'll be a traffic light system for both of europe. probably struggle to get to the green level of the traffic light system. it will be hard. that is what the pushback will be. tui down but reacting to the convertible being priced. puma a record high. i want to wrap it up with astrazeneca, up .4% despite more nations citing they will restrict the use of the vaccine. updates on other therapies. astrazeneca up around .5%. alix: astrazeneca says it has cut this planned vaccine delivery to the eu.
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does it feel like this applies the problem for the eu, particular in the second quarter. let's stay on banks. credit suisse is planning on overhauls. also center the archegos capital blowup. we are joined by sonali basak. they go around to all of their clients and say we will reassess the leverage you have. what are you hearing? sonali: i have been reporting on this all morning. this is the expectation. while it is somewhat expected, it does have a lot of shockwaves across the industry because others may follow suit and other products may be impacted. who does this impact on the client side? it impacts arbitrage, it asked the highbury -- the highly leveraged wants. my sources are saying there is a chance the biggest banks might get more business out of this, morgan stanley, j.p. morgan,
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goldman sachs, because they were able to walk away relatively unscathed, while credit suisse and smaller brokerages, it will be harder on their hedge fund appliance. what is more is if you are a big hedge fund, big highly levered want, you will be able to bear more easily on this environment. what does that mean? more concentration if this is not done regularly. -- not done correctly. guy: is there a market impact? if there is, i'm wondering where it is. the process will be more difficult for some of the strategies. how does that work its way into the market? sonali: if you are seeing more concentration risk we are seeing how that played out the last couple of years. it means a price swing. that is what i am saying. there is a chance if this is not done correctly that that concentration happens more, you
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see more volatility in some ways at the end of the day in the near term. we have seen years of hedge funds levering up to record levels. in the near term that money will be harder to come by and it will be especially harder to come by if you're not one of the biggest guys. alix: exactly. you see more consolidations and closures? sonali: closures is strong because in the near term we have seen three years of pressure on the hedge fund industry. this is what is ironic about all of this. in the last 12 months we have seen new startups and more money raised. you look at the story we have today on the renaissance and the insiders have done so well, one of the best years ever, and they are getting a pay cap. this is coming out -- they are getting a pay cut. this is coming at a good time with a few major hiccups with archegos.
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how to the banks keep the business flowing while also clamping down on leverage after 70 years of flying away with it? guy: i think we'll be seeing a lot of fallout from this. fascinating to follow. thank you very much, indeed. bloomberg's sonali basak. joining us now is emmanuel cau, barclays head of equity strategy research to talk about what is happening in europe. we were talking to tobias levkovich at citigroup. his only call out of europe is the u.k. i'm hearing that a lot at the moment. what i am also hearing his money continues to flow out of the u.k. market. what is the balance of risk in terms of the way people are treating it? everyone says it is cheap, but money continues to move away. emmanuel: good afternoon. we also believe it is the case
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-- a version for a lot of clients for the u.k. market. we have seen some assets reacting well to the prospect of the news and the successful vaccine rollout. the trend has been the proximate way to express a more positive view on the u.k. the equity market has been hurt by the strength of the credit theme. stronger currency is not good, but also in a risk on market, the u.k. market could not [indiscernible] a lot of defensive sectors in the u.k. index -- clearly markets have not been -- [indiscernible] there is the case for the u.k. to become more relevant in investor portfolios come in particular in the market returns
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over the next few months normalized. less bullish. alix: is that going to come in the form of large caps or medium and small caps beating that like they did last year? emmanuel: the price action has been very bullish in the small caps space. the money has come back. quincy investors coming back to the u.k. -- you see investors coming back to the u.k. and buying the clarity. there is much more skepticism which we saw dominated by financials. we do see the sector composition which is a mix of financials and materials, and at the same time -- [indiscernible] could be interesting.
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a barbell composition could be quite interesting for investors. we need to have a client upside and the value exposure, which have all the habitat of a defensive for the u.k. markets guy: let's talk about what happens if european equities react to positive vaccine data. how much good news is there in european equities right now? we are starting to see a pickup in the vaccine story in germany. starting to see it in france and elsewhere. spain starting to pick up. it is not widely reported at the moment in terms of what i am seeing in market coverage. once it does start to embed itself, how will that change the narrative, particular for u.s. investment? emmanuel: there is a clear degree of optimism in global equity markets.
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europe has not been immune to that. we saw yesterday the pan-european equity market outperforming the u.s. even though europe is lagging vaccine rollout. the market has been trading on the global news flow supported by the pickup in demand, fiscal stimulus. as you said, we have not seen money coming back to european markets. the participation has been fairly light. money speaks to global firms, and we've yet to see investors buying into this. as we get toward the more advanced phase of vaccination, and we see more evidence of reopening here and there, there could be a bit of an -- a bit of redemption for investors. a lot of global investors.
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i do not feel much interest for them to come back to europe. there is a bit of wait and see approach. they want to see when you're -- when europe will reopen and how strongly the economy will react. alix: that would mean you saw a stronger euro along with that and europe at their act together -- and six months ago when it looked like europe have their act together dealing with the virus. what is your fx outlook? emmanuel: remember in spring 2020, early summer, europe was ahead. europe was the first to reopen. optimism came back to european markets. we see that currency strength took away some of the upside for the market. now we have seen year to date -- [indiscernible] if you see a bounce in the trend , we see for now -- in the
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second half of the year if we see europe catching up on vaccination and recovery strengthening on the back of that, europe could go back to one .20 -- the euro could be back to 1.20. [indiscernible] reopening very strong -- some support to the dollar even if the rest of the world is catching up. guy: have a great weekend. emmanuel cau of barclays. let's wrap up the auction. the settlement is in. the ftse 100 down .4%. oil is down. mining stocks under pressure. the dax has cut back. up 31 points. the cac 40 had a quiet week in terms of what it has delivered.
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we will continue to monitor what this looks like. we will also turn our attention to the u.s. it has been a quiet week with an interesting rotation. the action is in the bond market. this is bloomberg. ♪
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ritika:ritika: this is "european close" coming up, artist and entrepreneur will.i.am. this is bloomberg. alix: amazon shares up over 1% after clinching a victory in historic collections to determine whether workers at a warehouse in alabama will become the first in the u.s. to join a retail union. joining us is ian cauldron of bloomberg industries. what is the significance of the union not making it this time? ian: just a few minutes ago,
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amazon clinched enough votes to defend against a union drive at the foot bill moment center in bessemer, alabama. -- at the fulfillment center in bessemer, alabama. it would've been the first amazon warehouse on u.s. soil to form a union. there are some overseas that have done that. none in the u.s. have done that. amazon was extremely worried this was going to start a domino effect that would lead to a lot of it's other warehouses being unionized. that threat seems to be beat back for now. guy: we just walked through why amazon would be worried. what impact would this have? ian: amazon is a company that prides it thou on efficiency -- that prides itself on efficiency and delivery to the consumer at all costs. the union require them to sit at
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the negotiating table with the workers collectively, work out a contract that may be has benefits for the workers, which have complained of ruling hours and bad working conditions, but they have threatened that delivery that has made the company distinctive from its competitors. it would certainly erode the control of management, which is not something any boss wants, let alone executives like jeff bezos. alix: this is just alabama. our other states going to take this up? ian: that is a great question and that is what we will all be watching and waiting to see. there has been some theories this was a test run for the unions. alabama is not the most union friendly state in the country. it was a tall order to begin with. now the question is whether this
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union or other unions are going to start going to warehouses in california, in new york, where there has been activism in the staten island fulfillment center, and try to do the same thing more successfully. guy: in terms of what would prevent that happening, is amazon changing its approach to its staff? i appreciate what you said about making sure it fulfills its fulfillments, its requirements for its customers. are we seeing amazon changing the way it treats its staff? we may not get unions but we may get better conditions. ian: certainly one thing amazon has been touting throughout this drive is it pays a high percent of its workers $15 an hour, which aligns with what many left-leaning democrats in
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congress want. as far as the actual conditions in the warehouses, we have not seen any profound change as a result of this. it will be interesting to see what else the company thinks it might be able to do to send off this union threat, as they see it elsewhere. guy: we will leave it there. thanks for the analysis. ian kullgren of bloomberg industries covering the union angle. joining us is brian fitzgerald, wells fargo security senior internet analyst. he has an overweight rating on the stock. how significant is this? brian: it is significant because it backs up what amazon has been doing for their employees. in 2018 they raise the hourly wages to $15.
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during the pandemic they extended hourly pay and increased over time two times for workers this time last year. they increased paper warehouse and delivery workers by two dollars. they are backing up their employees. they committed 4 billion in profits to ensuring they continue to operate during the pandemic with safety for customers, but for employees as well. alix: are they going to have to do more to avert any other union calls in different states? do they need to amped that up even more? brian: i think 15% of costs for a $100 widget bought go to logistics costs, sorting, warehousing. it could be impactful. it would have raised that to 20%. that is the puts and takes up it. at the margin, what amazon is
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doing is bringing algorithms to bear to streamline from end point to end point the delivery of stuff. they are investing in infrastructure and employees. they now employ over one million people. that was up 50% during the holidays. 10 years ago that number was 100,000. they have grown tremendously and they are using technology and data to help lubricate that growth. guy: doesn't put them on the wrong side of the debate from the administration's point of view? brian: i do not. i think quite frankly they are at a time when local employees were out of work because local businesses were closed, these guys, amazon and other companies
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we cover, we have a buy on ch ewey, they got a halo effect because they were stepping into markets and employing people out of work because of the pandemic. alix: are there other companies that also have to contend with this that it may be material? brian: from my coverage perspective it is amazon that was front and center in terms of the labor union. alix: interesting to see the rhetoric that winds up coming out of this. that stop is up 1.5%. -- that stock is up 1.5%. brian fitzgerald of wells fargo. this is bloomberg. ♪
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alix: this felt like a month of a week. next week will be pretty whizzy. guy: it was a short week for me
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-- next week will be pretty whizzy -- pretty busy. alix: it was a short -- guy: it was a short wait for me. alix: next week will be busy. we have bidens economic advisers meeting -- you have opening. schools in france, you can go to a pub on monday. guy: a big day. lots of people taking the day off to go to the pub. whether you can get a table remains to be seen. cpi tuesday will be interesting. the chinese trade sector will be worth focusing on. a lot of supply coming through. you have the banks to focus on wednesday. we kick things off. i am looking forward to seeing what they have to say given the positive answer behind that sector. big bank supporting numbers. alix: can you make reservations for pubs? guy: you can, but it has to be
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outside and there is limited capacity. it will be challenging, but just knowing they are open will make people feel a lot better about what is going on. alix: it was a long three months for sure. a lot happening next week as well. coming up, richard trumka, afl-cio president be joining "balance of power" with david westin after the amazon union win. guy? guy: we will continue the coverage on bloomberg radio as well. the cable is coming up on dab digital radio. 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. the votes are counted in the amazon warehouse workers in bessemer, alabama have voted not to be represented by a union, which will likely be challenged by the union as a result. we want to bring you up to speed on what the possible effects are for amazon and organized labor. for that we turn to bloomberg's michael mckee. not entirely unexpected but how important is it? michael: it is important for amazon and the unions. there may be some hope down the road. union went into the heart of antiunion territory and tried to organize the amazon warehouse in bessemer, alabama. they got 1798 no votes out of 3200 cast. a decisive loss. that does not mean the union movement is dead because it does have the support of president joe biden

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