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tv   Bloomberg Markets Americas  Bloomberg  April 20, 2021 10:00am-11:00am EDT

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guy: tuesday the 20th. 3:00 p.m. in london, 10:00 a.m. in new york, 30 minutes into the trading day in the u.s. from london, i'm guy johnson. alix steel is over in new york. welcome to "bloomberg markets." equity markets just drifting. i am trying to get a sense of direction at the moment. people seem to be coming out this narrative that global cases are rising and equity markets are giving up a few gains on the back of that. i am struggling with that narrative. jon ferro has been pointing out that airline stocks have been down for the last 10 days. if this story was coming through 10 days ago, i would understand it. today i am really struggling with that. alix: i completely agree because you're not seeing such a voracious bond buying. yes, the 10 year drift a little bit lower, but not a ton. that doesn't seem to make any sense if you're going to have a rising global cases. you would think you would buy
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the dollar as protection. in terms of what is selling off, it is pretty much everything. it got apple's product unveiling, netflix after the bell. not a lot of movement either way. like i mentioned, the 10 year at 1.58%. the bloomberg dollar index continuing to go pretty much nowhere. yet you look at some of the commodities, with the exception of oil, copper still up. now looking at $9,500 a ton. that would signal some kind of reopening, not the global case rise that is instead the dominant narrative, which is why travel stocks should be down. so i am with you. it is confusing. guy: i think we are in one of those days where the narrative is trying to befit the price action, but the dollar is going nowhere today. it has been on a six-day losing streak, which is worth paying attention to. this is where we are. that is one of the key charts
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you want to be looking at right now. that is the bloomberg dollar index, but loki averages -- dollar index, but loki averages -- dollar index, below key averages. do we get a reaction from the dollar? i don't know. i'm struggling with the narrative. but we got the right person to try to give us a sense of direction here. mark mccormick, td global head of sx strategy -- of fx strategy, is here to help. what is going on with the dollar? it is starting to reverse a little bit. does that stick? mark: i think the next move is lower, and i think that is clear for april. what we are trying to figure out is extrapolate to themes that are blending together. 20/20 was all about the so-called global reflation trade, and 2021 has been all about u.s. exceptionalism.
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i think we are trying to extrapolate extreme points from those narratives. the dollar tried to extrapolate low reflation and missed the signs that were coming through that the u.s. economy was doing much better than expected. we are doing the same thing now which is basically extrapolating u.s. exceptionalism. you can't have an exceptional dollar with the fed doing what it is doing related to average inflation targeting. that is the view we have, that we've gotten really good at a, strings in the u.s. recovery, but the fed saying we are going to let the economy run hot. that is the backdrop of an improving global economy, and it is not great for the dollar right now. alix: from that perspective, what is leading what? is the fed leaving the dollar leading yields, or is it yields reflecting the fed story that then leaves the dollar -- that then leads the dollar? mark: it is a valid question. what we didn't see as of late
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2020 was a validation that the global economy was rebounding. non-us global growth excavations have risen substantially. the selloff in bond yields was validation that the economy was moving in the right action. basically, it is a global phenomenon. the u.s. had basically advanced faster than other major economies, along with the u.k.. now q2 and q3 is really about the ketchup trade because this is a global expansion, the cyclical recovery. all of these factors are playing together, so a big part of it is that move in rates was not just a u.s. move in q1. if you look at em yields, em central banks, they were much more hawkish than expected, largely because what we kind of need here is validation that the global economy is moving in the right direction. yields have moved to rise with
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the global economy, but now backed off a bit. guy: do you think the global economy is looking good? i want to come back to this theme of u.s. exceptionalism. you look at what is happening in india, it doesn't look good. there's headlines about what is happening in russia. the ema also confirming a causal link in terms of what is happening with the j&j vaccine. rare clotting causal link possible, a keyword that needs emphasizing. the u.s. is miles ahead. if the j&j vaccine is not part of the mix, the numbers still look fairly good. is there a possibility that we go back to actually the rest of the world not looking so clever, and the u.s. continuing to drive ahead in terms of what it is seeing in the reopening trade? mark: i think it will be challenging because the offset to the u.s. story will be the recovery in europe and what we have seen as the strings in the chinese economy. the data out of china recently
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was quite solid. if you look at china as a function of driving commodities and driving a global growth factor, it is doing quite well in that regard. so i think j&j is a big part of maybe the north american vaccine portfolio, but if we thing about what is happening in europe, the numbers are moving extremely in the right direction in terms of the vaccines. when we thing about q2, i think a big concern with j&j is it works within the u.s. vaccine portfolio, so part of what we will see in q2 is a pickup and convergence of what we are sitting across europe as we look at u.s. and european growth dynamics. asia looks quite solid if you look at korea, singapore, china, taiwan, australia, new zealand. india is struggling. there are definitely struggles coming through latin america as well. chile has struggled even though they have had good vaccine numbers. if you look at the big, driving
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forces outside the u.s., particularly europe and asia, there is a convergence coming through which is driven by demand coming from those economies. alix: what is your favorite way to play that then? mark: it's a great question because it is challenging. dollar is lower, particularly against some emerging markets. a lot of it would be focused in asia. you do see some value in latin america. i think chile is an interesting one. if you like the global growth story, the copper story, chile is likely to benefit from that. i think europe is quite interesting because i think the divergence trade is in europe. if you want to play the pickup trade where we have pushed back on the euro narrative is instead of buying euro-dollar, you should be buying euro sterling. i think that is a much better way to play the vaccine and gross convergence. isaac a big thing we have seen is that if you look at the mobility data which tells us what is happening real-time, it is quite alarming how high the u.s. mobility numbers have gone.
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we see the exact opposite in the u.k.. there's a lot of anecdotes around u.k. reopening on the economy doing well, but the mobility numbers are very low, one of the lowest in the world. so if you want to play the european convergence, it is buying euro sterling, selling norway versus sweden. sweden would benefit right now from the pickup and european growth, where norway benefits from the global economy doing better than europe. i think another way to play this as well is selling sterling, which is another european trade fading the recovery in the u.k. and thinking about the upcoming event risk in scotland. guy: you turned negative on the cad and the -- if china is doing well, i am
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resuming oil prices are going to pick up. we are certainly seeing evidence of that. alix pointing out what is happening with copper at the top of the show. walk me through some of these commodity currencies. mark: i think the key part is how much of it is priced in, so a lot of that reflection in norway is really what is happening in april. norway and canada i think are the two stories where at least for this month, i would rather underway to those versus other currencies. if you want to think about the cad, buying the new zealand dollar versus the canadian dollar dollar is a much better play, and norway is another one where norway would do quite well as the global economy is advancing, but how much is priced in? the norges bank is priced in now, the oil story is priced in, and norway is trading at about a 2% risk premium on our medium-term valuation models. i think part of it is we want to
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buy the commodity story. chile is a prime example. another when is col -- another one is colombia. that acadian dollar is really not an -- the canadian dollar is really not an oil story. what we are trying to do is find divergences where things have moved too far in one direction, and find ways to trade those. it is a short run, but i think norway is going to be a good story over the next three to six months, along with the canadian dollar, along with the australian dollar and some of these other producers. alix: i deftlyt envy your job -- i definitely don't envy your job right now. mark mccormick, thank you. the eu drug regulator says that the j&j shot benefit risk remains positive. however, they do see possible blood clot links in the j&j shot.
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they also point out all of those cases occurred in people less than 60 years old, with the majority being women, but the specific risk factors have not yet been confirmed. they do see the risk-reward benefit remaining positive. that is a hard line to toe. the not reacting. that is hard to get people to say the -- to take the vaccine when they say there is a possible link between those blood clots and the j&j shot. we will have more on that and what it means for j&j because that company had pretty strong results for the first quarter. the drugmaker did hold off on forecasting on this vaccine sales. we will break it down with an analyst who is bullish on the stock, matt miksic of credit suisse. this is bloomberg. ♪
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alix: live from new york, i'm alix steel, with guy johnson in london. this is "bloomberg markets." we want to get a visual. with more is bloomberg's michael mckee chart is stunning. michael: youth inc. of it sort of like a balloon. you squeeze one area and it -- you think of it sort of like a balloon. you squeeze one area and it expands in another. two of the countries that have vaccinated the most, cases are going down, but look at what is happening in india. they are just exploding and having an and norma's problem. the prep -- having an enormous problem. the problem with that is if we have a country were to are many that don't have cases under control -- a country or two or many that don't have cases under control, that can mean variants,
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and that means problems around the world. israel and the united states leading the world in the major country category of people who are being vaccinated, but to get back to the point i just made, there are 83 countries with 0.5% or less, most of those with no vaccinations at all, so the globe still has a real problem. let's take a look at what is happening in the united states. 23% overall. alaska is doing the best job. new york, 26%, moving up. michigan not far behind. it is not like these states were really far apart in the percentages, but michigan is having a major outbreak. utah is the worst in the nation, still at almost 18%, compared to most states a moche are in the 20's, so the u.s. is doing a relatively good job, but we have to worry about the rest of the world. guy: and that is why the j&j
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shot was seen as being so critical. one shot, and it doesn't have storage problems. bloomberg's mike mckee, thank you very much indeed. concerns over the covid-19 continue to be an overhang. we just got news from the ema in terms of what they are saying. basically, the benefit continues to outweigh the risk, but there is a potential link. matt miksic, credit suisse u.s. medical supplies analyst, covers j&j and has a one under $93 price on the stock -- a $193 price on the stock. let's talk about the impact that these problems with the vaccine are going to have in terms of this as a business. what is the link? what is the correlation between how well this vaccine does come of the problems it is having, and how the stock is going to perform on the market? matt: sure, and thanks so much
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for having me. the vaccine at j&j has been kind of an interesting dynamic over the last year because as much as it is a potentially large opportunity, and has also been viewed, because it is a not-for-profit operation, it is viewed as really not a stock driver. having said that, the ups and downs in the vaccine have picked the stock up a little bit, but for the most part, we just haven't seen the pause in the company outlook or the way that investors think about the stock. alix: do you feel like there's going to be reputational risk going forward? i know someone who has gotten the j&j shot, anecdotally, and has been in a state of panic about this.
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do you feel like there is reputational risk if they don't confirm anything soon? matt: it is a risk any time a company like this launches a drug or a vaccine. it is hard to predict. it would say that with company has done and regulators seem to have done, they have acted with abundance of caution, and that puts the company and everyone involved in about the best like that they can be. they are trying to understand how to isolate these events and maybe better use the vaccine for patients who are less likely to have such an event. guy: is there a wider implication? astra has had this problem, j&j has got this problem. the science is pretty similar in terms of the vector. but in a virus -- adenovirus is going to be put to one side now. do i want to focus on companies that have got rna links?
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this is kind of old science, and that is the new science. is there a wider implication there? matt: i'm sure there's fans of the new technology and some of the new programs that moderna and pfizer would say this is why we need to move forward. i would also say that these are pretty well-established and proven vaccine platforms that j&j has used a number of times in the past, and i think it is probably a little bit early to decide that we are moving away from that. alix: i wonder, when you talk to the mrna guys, the question is heavily believed comes once covid is over, but also you going to develop? do those kind of coexist with the j&j, or does j&j increasingly become more of a med tech company? matt: j&j has a lot going on in pharma besides vaccines.
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they have a huge oncology program, immunology business, and all of those businesses are doing, really operating at the top of the industry. so like any other drug, whether for cancer or anything, think these vaccines will have to compete in the world of long-term results and adverse events, and regulators in the market will decide which ones will dominate and be preferred over time. i think that is the way this is going to work out. all of this is super new because this was developed fast, so it is early to say. we will learn more about that in the next year or two. guy: we are trading $164 now. the high was $170 over the last year. what gets this stock to your price target? matt: great question.
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to the extent that there is a recovery trade underway and investors are rotating into names both inside and outside of health care that are exposed to a bounce back, and utilization and consumer activity, j&j in that environment is never really going to operate in a near-term basis against that trade. it is in a defensive sector, health care. so in the near term, it has got headwinds against it for the reasons i just described. in the intermediate and long-term, say for the rest of the year, one of the things we are excited about is not only the outperformance of pharma, which was very strong in the quarter and we think will were main strong throughout the year, but also the increasing investment the company has made in digital surgery and their overall digital strategy in transformation devices. there devices for a long time
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for j&j have been a slower growing, underperforming asset if you ask analyst investors across the street. we think there is an opportunity there to be re-rated higher as they roll out these digital platforms at been the chili -- and potentially take the stock higher as well. alix: matt, i appreciate it. taking all of those emea headlines in stride. matt miksic, credit suisse u.s. medical supplies analyst. this is bloomberg. ♪
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alix: you are looking at a live shot right now of the bloomberg new economy forum, as you have prominent individuals speaking about many things. i think in this one, they are talking about crypto. are we listening in on this?
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>> i would love to see a use case that applies to the everyday consumer, and we are working with all of those people to innovate in this space. that is why we have a very friendly fintech partnership program, so we can identify those use cases together. i think it starts with a consumer problem. we have to keep consumer safety and security in mind and compliance in mind. >> last friday, the price of the internet mean token -- alix: you have been listening to some of the new economy forum. you can go to live if you want to keep listening to that. with what we have been seeing with doge coin, and the last
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week it has a 400% rally. you are basically looking at a bigger market cap of doge coin to ford and kraft. that's bananas. guy: this was quite literally created as a joke. now we find ourselves in a situation where we are spending some time talking about this. but the fact that it is doing what it is doing i think probably is another example of a lot of liquidity floating around the system and trying to find a home, and this feels like exactly that. alix: football leagues, doge coi n, sure. also some liquidity, a $30 billion offer. we will speak with canadian national railway's ceo for their bid for what could be one of the industry's biggest deal in decades. this is bloomberg. ♪ rg. ♪
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alix: live from new york, i'm alix steel, with guy johnson in london.
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this is "bloomberg markets." canadian national railway has offered $3 billion in a bid to steal kansas city southern away from its rival. john tucker roost -- jean-jacques ruest, the ceo, joins us now. why now, and why didn't you do it earlier? zsa zsa -- john joc -- jean- jacques: basically, railroads don't come for sale very often. kcs seriously wants to do a transaction right now with a strategic partner within the railroads.
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number two is really about the economy. our vision has been for a long time that -- for a long time is for a network that can capitalize on the market. finally, there's also an economic side for the relationship with china, challenging the labor cost and the coastal province of china that is probably higher than mexica right now. you can see some supply chain want to move to this continent. finally, the balance sheet is solid. we've kept our powder dry for the last two decades, waiting for dental big transactions to come around.
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so we are putting our best offer this morning for kcs to partner with us and what will be the railroad of the 20th century. guy: why is this business worth 20% more to you than your rival? jean-jacques: we have a bigger mode. we look at north america and where north america is heading right now, the overall economy. the service sector is the biggest sector of gdp. that means people have good paying jobs with disposable income, and therefore they consume. they buy goods, products from abroad. that is really the future of freight railroad in north america. moving large quantities over long distances to people who live in big cities who can actually consume, but also people who live in smaller automotive towns.
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so the mode here is basically the north american economy and what kind of rates it will generate. alix: i don't think we are arguing the point on the fundament is of the deal. it is just the timing and the price. now you can enter some kind of bidding war. you offer 20% over, whereas if you had offered something before canadian pacific did, you may be in a different spot. can you walk us through why you were late to the game? jean-jacques: i'm not sure it would have changed anything. i think the opportunity today is to crystallize value for their shareholders. may have been in the same situation. combining railroads is something that creates a lot of value. we also have the balance sheet to offer the full value of what
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these two railroads combined together would be. so it is partly set by the board of kcs. if they decide it is time to crystallize the value, the real value of the company will show in the results. guy: do you expect pacific to come back? do you think you are in a bidding war? jean-jacques: no, we are focusing on kcs and offering them the customers, the employees, and everything investable for something they would value not only from a financial point of view, but also the kcs team is very solid commercially and operationally. we are also very mindful of their role as stakeholders in all of the cities and places where they have businesses, where they have jobs. in that mindset, we are offering kcs for kansas city to remain the headquarter of all of their combined u.s. operations, and the whole transaction is based on growth.
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it is not a major effort in reducing jobs, but creating jobs for those who are banking on the usmca as a basis from which they will grow their own business, whether manufacturing or consumer goods. alix: definitely a good point when it comes to regulators. can you talk me through the conversations you have had with u.s. regulators? because this would create north america's third-largest railroad. some analysts think that is going to pose a higher regulatory hurdle than if canadian pacific bought kansas. jean-jacques: when you look at regulators, the biggest hurdle in this issue is the stb, the surface transportation board. inside the united states, definitely the way we create the value we want to create, we need to connect the three countries
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through a solid network all the way through mexico city, to toronto, calgary, and michigan. from that point of view, the four big railroads in the united states are going to remain big for combined u.s. operations. but you have to go back to value. they are focused on the stakeholders around the network. they are focused on the environmental impact of with this, nation would do. -- this combination would do. our story is really focused on removing quite a number of obstacles. the rail infrastructure between mexico and canada is fragmented. so what we offer is really targeting in large part about 70% of the synergies. so the commercial and
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environmental benefit is much more obvious because railroads are four times more fuel-efficient than trucks. therefore, our emissions are four times less. guy: it is fascinating how many ceos like you now talk about esg credentials of the deals they are looking to do. certainly increasingly becoming part of the narrative. to that point, do you think of it is not this asset, it will be another? do you think the argument could stack up with other rail networks? or is it something about this network that is a particularly good fit? jean-jacques: i can't speak to what other rail networks may have in mind. guy: sorry, if you don't buy this asset, will you be looking to buy other assets? jean-jacques: if you look at the history, certainly within the ipo, we have been publicly traded number 25 years. our growth history has been to front -- has been on two fronts.
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we have made a number of accusations -- of acquisitions, and also around growth. the kind of growth the network currently has, and also combining to do acquisitions. this one today is very strategic for our long-term. kcs has managed well for creating a real north-self network, and it is that reason that we are making the offer. i just went to emphasize the point you made on esg. esg is critical to the future, especially in transportation. there will come a time when people will ask more and more questions, what are we moving. are we moving more consumer goods? what is our carbon footprint? so we already see 15% more fuel efficiency for the average north american railroad, and we are
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working on the technologies of the future to eventually convert diesel fuel into biodiesel, and also do some trials with electric locomotives. we have increasingly become a mode of choice as the economy needs to move and will move towards the lower carbon footprint. guy: i guess my point was it is just part and parcel of the narrative now. it doesn't sound out of the ordinary. it is part of the narrative, that every single company, every business has to screen for right now, and as you say, particularly in transportation. airline ceos are having exactly the same conversation, trying to figure out how it fits into their business model. great to talk with you. you very much, indeed. jj ruest, the ceo of canadian national. we will talk more about that throughout the program. coming up, the archegos implosion and the ripple effect throughout the world.
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sandy rattray of man group is going to be joining us. that is coming up. this is bloomberg. ♪
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ritika: this is "bloomberg markets." coming up in the next hour, easyjet ceo johan lundgren. this is bloomberg. ♪ let's check in on the bloomberg first word news. i'm ritika gupta. day two of deliberations in the minneapolis murder trial that sparked nationwide debate over police use of force. a jury is deciding the fate of derek chauvin, the white former police officer accused of killing george floyd during an arrest. prosecutors say he violated department policy. his defender says the video does not tell the whole story. in germany, armin laschet has
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won the battle to lead angela merkel's conservative bloc in december's election. laschet is the chairman of the c du. he would likely continue merkel's moderate policies if he wins. authorities in tokyo have been urging a state of emergency just three months before the start of the summer olympics. 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. >> you're watching "bloomberg markets." i'm erik schatzker in new york. the spectacular collapse last month of archegos is the exactly -- is exactly the kind of event that captivates people like sandy rattray, chief and desmet
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officer at man group -- chief investment officer at man group, the $100.5 billion hedge fund . he's even written a book about it, "strategic risk management." good to see you. you have identified a risk in the fallout from the archegos collapse, and it concerns counterparties. the wall street firms largely that investors like man group and others have to deal with. tell me about this risk. sandy: the risk is really that there are less counterparties to deal with today than there were 5, 10, or 15 years ago. that might be as a result of regulations, as a result of competition, but what is clearly happening is, especially for prime brokering services and other clearing services, there
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are fewer competitors today than there were a few years ago. erik: we already know deutsche bank and others have been pulling back from prime brokerage, even though it was one of the businesses that did business with bill hwang and archegos. do you fear that the damage to credit suisse, for example, will shrink further the availability of counterparties to an investor like man group? sandy: i think it almost inevitably means that you will get a strengthening of the strong and a weakening of the weak, and some exits probably from the prime brokering and other clearing businesses, with a result that we have fewer firms to deal with. i don't think it is a dangerous tipping point, but we certainly don't like the idea that there are less firms we can deal with. alix: and you don't --erik: and
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you don't like the idea why, because it gives you less negotiating leverage on things like fees, pricing? or is it a diversification robustness thing? sandy: it is both of those. it is clearly the more competitive a business is, the more you will be able to drive prices down. you want to have multiple counterparties for everything you do, so having more is always going to be better. but i think the other thing is even strong counterparties hit difficulties every now and then and can withdraw from businesses. if you don't have enough or you are getting an ever reducing number, you are more exposed to that risk of somebody that you thought was strong no longer being strong and withdrawing. so i don't think it is at a dangerous tipping point, but we have been in a one-way move for the last 10, 15 years, especially for prime brokers. erik: before the financial
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crisis, morgan stanley and goldman sachs had something of a duopoly in prime brokering. are you concerned we are going back to those days? sandy: i think your words are well chosen, something of a duopoly. those weren't the only two, and we certainly have more than two today that i would consider strong. but a lot of people that strengthened after the financial crisis seem to be withdrawing in one shape or form. what you are also seeing in other areas is some banks, particularly the european banks, deciding not to be brokers and equities or not to be brokers in fixed income or something like that. so you are getting quite a small number of banks you could really consider full-service investment banks, and that is problematic because for us, we really like to thing about counterparties across a broad range of products rather than having a sort of pick and choose type of effect.
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erik: entirely separate from the issue of counterparties is another question very much in the minds of investors in equities, and that is to say can value continue outperforming growth, as it did spectacularly in the first quarter and still has to a degree since the end of march? sandy: you are absolutely right, there was spectacular outperformance. but the pain of value investing was pretty significant over a decade, so it was a long period of sticking with it. those that were able to stick with it had a fantastic first quarter. a lot of quant strategies in equities are very value focused, so many of them had really strong returns in the first quarter. people might be saying, is that it? i think i would argue you've had 10 years of underperformance in
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value names. you had one quarter of outperformance. that is a very small move back in the right direction, or in the normal direction, and what you tend to see in markets is over very long periods of time, everything turns out to be cyclical. so you have these long negative cycles of value. often you will have quite rapid reversals. to me it looks as if we are just a short way through that rapid reversal. that doesn't mean there won't be bumps along the way. the reversal has certainly slowed down during april. but it does mean that there is a long way for this still to run, and that we shouldn't be thinking that this is the time to take off positions on value names. erik: man group is largely, not entirely, a quant manager. is the value rotation a good thing for quants like man? sandy: it is certainly good for
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some parts of what we do. i would say the more what i call traditional quant equity investing tends to have somewhat of a value focus to it. it is easier in equities to determine value that it is to determine growth. but people often think that quant is one thing, and it is really not. it is hundreds of different things. so many of our strategies have nothing to do with value, and we have had a convertible time when value is doing poorly. so it has been good for that one segment suffered in the last couple of years. erik: you have flagged previously elevated volatility as a risk that may persist in equity markets for years, and risks of course are the core subject of the book you have written. but i want to talk about another risk, and that is the risk which
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you also address in this book of diversification failure. many people have talked about the fact that the 60/40 portfolio no longer works because we are no longer in a bond/bull market. it lasted for 40 years. it's over. what are the practical implications of that diversification failure? sandy: well, i don't think the diversification failure has necessarily happened yet, but i do think we should be really attuned to it. the failure, i think, could mean that people, if they are not running 60/40, they are going to run something else. we have come across investors running 80/20, for example, which is a tremendously risky portfolio, especially if equities turn out to be riskier in the next five to 10 years than they have been for the last 20 years. so it is driving the fear of rising bond yields. it is driving people into less
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diversified portfolios. that is one observation. the second is i think the best way to manage this risk of do equities and bonds carry on diversifying each other is to try and build a risk management approach which allows you to really work out when bonds and equities are failing to diversify. i would argue that to do that, you need to be really able to move positions quickly in these periods, and the periods you are really worried about is when bond yields move up and push equities down. that is not something we have had for the last 20 years. typically, you have had negative correlation between equities and bonds. when equities fell, bonds saved you. that was your protection asset. but it looks to us as if the risks today that bonds failed to diversify, that is really what you have to worry about. alix: sorry to end if, sandy.
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thanks for being with us here on bloomberg television. that a sandy rattray, chief investment officer man group. this is bloomberg. ♪
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♪ guy: lots of things happening over the last couple of minutes. the cdc out with details related to j&j. no new blood clot cases have yet been confirmed. a handful of potential new cases reported. we are seeing an aggressive selloff over here. the markets stateside started to sell off as well. we got great guests lined up. guntram wolff of bruegel going to join us on the politics. johan lundgren of easyjet as well. this is bloomberg. ♪ . this is bloomberg. ♪
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guy: live 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." the european medicines agency finds possible blood clot links to the j&j jab, but says the benefit-risk ratio still remains firmly in favor of the shot. we will take you to wear a press conference is about to start. armin laschet to become angela merkel's with placement as the center-right candidate ahead of elections. the cdu embracing efforts to cut emissions. we will get they reaction of easyjet's ceo. that stoxx 600 is down by one point 8%. the travel and leisure sector really under pressure as well. two

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