tv Bloomberg Markets European Close Bloomberg April 21, 2021 11:00am-12:00pm EDT
from london, i'm guy johnson. alix steel is over in new york. we are now counting you down to the european close on "bloomberg markets." game over. the european super league project is abandoned less than 48 hours after it began. fan fury and government pressure forcing key clubs to abandon the plan. the german constitutional court clearing the path for ratification of the eu's 800 million euro recovery fund. the eu releasing the first look at its new rules for what are sustainable investment in what is likely to become a benchmark for the rest of the world. we also now have legally binding targets. a big day for the environment ahead of what is going to be a key summit tomorrow, led by president biden. let's figure out what is happening here. european stocks starting to recover, bouncing back from losses yesterday. it doesn't feel that convincing, but there's green on the screen.
the pound under a little bit of pressure. we are watching the dollar stabilize a little bit. we will talk about what is happening in canada in just a moment, but we are sub 1.40. brent crude down by 0.6%. we got a fresh record in palladium. the canadian dollar i think is in focus right now. we are starting to get some tapering. the question is, will anybody else follow? alix: i genuinely wonder if that is what kind of helps stabilize the market entering around. if you look at dollar -- the market and turn it around. if you look at dollar-cad, that is what you are seeing. the russell 2000 was headed for its worst month since march 2020. that has turned around, despite the fact that iata says the whole airline industry will see $400 million of losses.
netflix obviously the big loser, still down about 8%. guy was talking about dollar-cad , but the steep drop happened around that bank of canada decision. canada is really the first bank to move towards that tapering conversation. guy: it is going to be interesting to see who follows. we got the ecb tomorrow, but as you say, the canadian dollar strengthening. the central bank taking its first baby steps towards normalization, reducing asset purchases by 1/4, holding interest rates steady. policymakers now see that happening probably sometime in the second half of 2022. as i say, ecb tomorrow, than the fed, then the bank of england. danny blanchflower, dartmouth college professor of economics, joining us now. the bank of canada has decided
for a variety of reasons, the government relying less on fiscal, so there isn't the same issuance, the housing market on a tear from what is happening with the fiscal policy, as a result of which it is starting to taper. who's next? danny: we are obviously going to have to see. i keep saying to people it is very hard to know. much depends on long-run changes in behavior of people, what happens to the pandemic, what happens on the physical front. so i am going to duck the who next, but in the sense that they haven't done a lot. they have kind of just pulled back a little bit, waiting, looking. and i think that is the right way to go. the bank of japan you didn't mention. the bank of japan made it clear that pretty much, they are going to keep this thing going for quite a while.
so i think it is really steady as you go, and maybe there's mood music from one or more of the banks, but really, they are not in a position to do much of anything because they haven't really got a clue what is coming. pretty hard to forecast inflation, hard to forecast output. when you look at the data for the labor market, it is a complete mess. so i think the right thing to do is pretty much hold steady, weight, watch and wonder. alix: how does the ecb wait, watch, and wonder? the equity market is buying into this whole catch-up on vaccination, the european trade is on. is that the case -- if that is the case, you should see better growth and better inflation. does that pull forward the ecb tapering conversation? danny: maybe, but remember we haven't really got any history to tell us much about what you do in response to a giant shock,
where the vaccines are slow to come. but i keep reiterating what long-run changes are to come, these are based on assumptions. so i think you are right that the danger is you put your toe in and you make a step, and you may repent. recall twice in the 2013 may rate rises, and then regresses, the fed made rate rises and regretted it. it is hard for me to see why you just wouldn't keep on keeping on. just keep going, wait to see the kind of whites of the eyes of inflation and recovery, and basically say we are looking. in some sense, that is what the bank of canada and the bank of japan did. at the bank of england, we have seen the big hawk say there is growth coming. he has now quit. so i don't know.
there will be a balance of discussions on the committee. people will talk about where they are going. bond markets are worried about the uncertainty, but i just don't think you can make a credible forecast. guy: the press conference just started. talking about more confidence at the bank in terms of the underlying strength we are seeing in the canadian economy. economies are recovering. u.s. economy is certainly recovering fairly quickly. mohamed el-erian has been talking about this. if the fed doesn't act fairly soon, it is actually going to find it more difficult to taper further down the road. danny: i don't really buy that. and i almost always agree with hamed -- with mohammed, my friend. why would it be harder to taper down the road when you wait a little bit longer? i think it just means you might taper more, but i don't think it
is that hard. mohammed may be right. he understands how these markets work. but if you look back, remember that i voted for a 150 basis point cut in one month, and 100 and another month. so if you wait, i don't see why tapering is harder. i don't see why raising rates down the road is harder, mostly because the risks are always to the downside. if you think maybe there's a k-shaped recovery, the data from the labor market -- i mean, i'm a labor economist. i have no idea what is going on. we lose the bottom end of the wage distribution. what happens to those people down the road? i have no idea. i've never seen data like this. scotland has an election next week. unemployment rates in scotland are lower than they were in 2020.
so i think it is hard to see your way through in this world of uncertainty where you can't but values on the probabilities. waiting and watching is probably the right thing. i certainly wouldn't be arguing you should do more, but i think now is not the time. that is being boosted by the stimulus in the united states. the rising tide lifts all boats, but that is problem at the case for the ecb on the back of england. alix: the nfib -- the ecb and the bank of england. alix: the nfib, you did hear some companies saying they couldn't get workers because they didn't pay enough, and they made more off of the unemployment benefits. what is the push back to that in the labor market? there has to be some truth to it if small businesses are clamoring about it. danny: again, it is unclear exactly what is going on. traditionally we have heard people say things like there's a shortage of workers. my response has always been if
you show me there's wage rises, that is something we will take as an indication. i don't think we see evidence across the united states of companies who suddenly had to pay more than they were. there's an issue about some people perhaps during this pandemic with their benefits were better off, but in general, people respond to work. we haven't really got a good steer on what's happened. go back to april 20 20. the unemployment rate goes to 20%. with the miscalculations, really 25%. so what is going on? we still have this low-end of the labor market talk about lots of folks not wanting to work. it is probably not right. guy: how do central banks judge this? you say you are a labor market economist. the data are really obscure at the moment. it is interesting actually, the
white house is trying to steer the world, trying to get everybody to understand what is happening in the labor market, what is happening with wages. wages are going to go down because more people are joining the labor market, probably at the bottom end of the labor market. there's definitely an effort to educate on what is going on here. just in terms of what that means for central banks, the fed in particular, but others as well, are basically saying they want to see the labor markets fully recover. how will we know what that looks like, danny? danny: that is a great question. i've spent much with you on these programs for a decade arguing that we need to try and understand how to measure full employment in these economies. the unemployment rate is no longer really a good measure. it isn't any good now because there's all sorts of things going on. the employment rate, the participation rate, underemployment. i think what we are going to have to do is focus on wages,
but deal with this problem, which is that the bottom 15% or so of the wage distribution has dropped out. so i don't believe, and i don't believe anybody credibly believes that wage growth is simply going to jump during this period. so i think careful analysis of what has gone on in the labor market, we have janet yellen -- people like me are trying to think about how close to full employment we are. i like measures like the employment rate. if you look at the employment rate in the fed had looked at it, and now jay powell has admitted this, if they had looked at the employment rate, they would have realized that 2015, 2016, 32020, we were nowhere close to full employment. so there is a complexity, a simplicity from the past that
has not been helpful, so when the various bank presidents say the unemployment rate is just below 6% and wages are set to explode, and we have to tighten rates, that was hogwash at the time. so the answer is we don't really know, but it is certainly tear that there's a lot of slack in the labor market, and the u.s. is nowhere near full employment, nowhere close to generating cost for inflation. in the meantime, unemployment rises, wages fall. it is in the other direction now. so i think no one knows what is going on. i don't. we are struggling, but everyone else is struggling. alix: i definitely don't know what is going on. that is a confirmed point. danny blanchflower, thank you so much. we are getting headlines from that presser at the bank of canada. it is definitely going to be a gradual, slow grinding process. guy: absolutely, but saying that the bank of canada could slow qe
further if the projections walk out. he is hedging his bets that the third wave, people calling this an exit wave, but who knows what it is ultimately going to look like, that is certainly introducing some extra complexity into this situation. but they are talking about slowing qe further if the projections start to pan out. the data are picking up in the states. the data are starting to pick up here in europe. what does that mean in terms of central banks? our markets being led down the wrong path? i think it is going to be an interesting one to watch out for. alix: especially when cases have been picking up, as you said. coming up, we are going to stay with the virus. the german constitutional court paves the way for approval of the eu recovery fund. very key. we get tv you from columbia -- we get the view from columbia
♪ alix: life from new york -- live from new york, i'm alix steel, with guy johnson in new york -- in london. this is the european close on "bloomberg markets." joining us now is bloomberg's german bureau chief daniel schaefer. the significance, particularly in light of the recovery fund, and where we are with that. daniel: the lockdown law has been passed in the bundestag,
and it means that chancellor angela merkel is taking control over this lockdown policy and dependent policy and germany because what we have seen in the past few months is that the federal system in germany has really failed to properly deal with the pandemic in the sense that the original state leaders who all had to come together and decide jointly on the strategy really didn't come up with a proper plan which is why merkel has been taking control because the pandemic has been getting worse and worse. we are seeing that hospitals are overflowing. we are getting closer to the record number of people with covid-19 in icu's. so the situation has become really fairly bad here again,
which is why merkel has decided to take a step to take control over the pandemic policies here and to extend the lockdown with that. guy: there does seem to be a sense that you need to lockdown hard to give the vaccination program a chance, which is picking up quite sharply. it is the model that was followed by the u.k.. can i talk a little bit about the constitutional court today? it has blocked this case that had been brought by the plaintiffs that would've been problematic for germany in terms of ratifying the rescue fund. there's another case pending, but nevertheless, can i expect that germany will now be able to ratify this fund? daniel: yes, the top court has cleared that. that is going to go on for several years presumably, but what the top court has basically said is that while we don't know
yet whether there is merit in this case, ultimately we can't hold up this important decision and can't hold up against the economic effects of the pandemic in the eu because of this pending court case. so germany will ratify it, and the court case will be solved in a few years' time. guy: i kinda feel like we have been down this road a few times before, mainly related to the ecb, but this time on the frisco front -- on the fiscal front. daniel, thank you very much, indeed. it is important in terms of what comes next because europe is starting to gain a little bit of traction. let's talk more about this. columbia threadneedle investment head of multi-asset strategy anwiti bahuguna is joining us to get a take on this. i am wondering whether or not we are going to have a more positive christine lagarde tomorrow. i appreciate that germany is still lockdown, that france is
still in lockdown. but vaccination is starting to pick up and they are starting to have a measurable impact. we've also got now clearance of the rescue fund by the german supreme court. we are starting to get more positive things happening in europe. i am wondering when that starts to be replicated in the ecb, and to extort and -- and to a certain extent, more by the markets. anwiti: thanks for having me. i think we are already seeing optimism in german financial markets, and european financial markets. we've had nearly a 40% increase in euro stock equities from 2800 levels in fall of last year to somewhere close to 4000 now. so i think markets are afflicting that optimism around improvement in vaccinations. the generally positive tone from the ecb and probably even more
dovish in the coming few months as they complete their inflation strategy review, we have seen it reflected in the euro-dollar crosses, with euro-dollar crossing $1.20 quite recently, and this german constitutional court decision was another positive, another step closer to the fiscal transition from monetary to fiscal that we are looking for in the euro zone also. so i expect a generally positive tone tomorrow. alix: the flipside is what is already priced in. if you take a look at earnings revisions, particularly europe, if you exclude the u.k., it is that record levels. it's huge. have we priced and all of the good stuff -- priced in all of the good stuff? anwiti: i don't think we have fully priced in all of the good news yet because to a large extent, your earlier segment
actually talked about new restrictions on movement, new worries about variants, so i don't think the news is entirely priced in. i could cs get back to optimism in the next few weeks. we had a 40% upside in equities. we could see a correction of 5% or so, 10%, but i don't think for the next nine to 12 months the optimism is fully priced and. the trade -- fully priced in. the trade is still on in the global equity markets. guy: is buying the dip still the right strategy? anwiti: absolutely jon. guy, sorry. alix: they are kind of the same. [laughter] one just has more hair. where specifically provides the best unrealized opportunity? do you have to go to the peripheries now? anwiti: if you look globally,
where is the optimism most priced in? in my mind, that is in the u.s., and to some extent, in the u.k. and germany also. but the biggest opportunity in my mind is in the emerging markets, where you have already seen about a 10% decline in equities. that is where most of the negative views right now is around vaccination, the threat of the variants, and people have generally given up on ian equities in the last -- on e.m. equities in the last few months or so. we have seen quite a correction. so i would broaden my investment beyond europe to emerging markets now. guy: does that include india? because india is a real problem right now in terms of the virus, but the sentiment remains relatively elevated. anwiti: i would not start adding to india quite yet.
it is really quite elevated. it hasn't fully reflected what we are seeing in the threat of the virus, and we haven't really seen any improvement from the lockdown's. the lockdowns have really just started again in india. alix: we are going to get you back to talk more about that as well. anwiti bahuguna, columbia threadneedle head of multi-asset strategy. this is bloomberg. ♪
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still have not filled up the whole we created in the session earlier in the week. intraday up around three points. well above 400, 436 on the stoxx 600. a turnaround which is seeing -- the ftse is up, the dax is up, the cac 40 is up. you do have the bond proxies not performing well. the earnings season is underway. there is a lot of earnings action under the single stops. that is where the driver is. the bottom end than the top end and the way this market is going. u.s. traction gained over the last hour has helped out. let's talk about what is happening in terms of some of the foreign exchange stories and also the scepter breakdown factor we need to roll into all of this. retailers help -- retail is up. the lift on graffiti business is quite good -- the l
iftography business is good. health care technology doing well. the banks are also bringing up the rear as well, as is the car sector. volkswagen trading down in germany. a quick look at single stocks. let's work our way through what is happening. earnings season is underway. heineken, people were expecting native beer volumes. understandable. we are in lockdown throughout most of europe. as a result of which, coming through the flat numbers, much better than markets anticipated. the market was anticipating negative four. we need the restaurants and pubs to come back, not at home. the market marketing that stock
up. and we come to juventus. complete round-trip during this week. started out with a big upside on the back of the super league. that is falling flat. everybody has pulled out. that stock round tripping today. down nearly 14%. alix: let's get more on that. it was an incredible three days. europe's rebel football league crumbling after its launch just days ago. all six english clubs involved pull out. the european commission executive vice president gave us some thoughts. >> i think we will have to look at it. i am kind of relieved now some of the clubs are dropping out. as you've heard my colleague very strong this is not the european way when it comes to football. alix: obviously talking about not wanting to get antitrust involved if something like that happen. alex webb, bloomberg opinion columnist joins us now.
how did this fall apart so fast? alex: just the response. the response was uniform condemnation. it is hard to find anyone on this side of the atlantic who wanted this to happen outside of the board rooms of these companies. even the players themselves that they did not want this to happen. the manager of manchester city said at a press conference that a sport where losses do not matter is not a sport. in the face of all that it was hard to say how they would carry on. guy: is it going to be going back to where it was before? this came about because there is a problem. that sustainability of earnings. how does football solve that problem? alex: it is a real problem. there are changes coming through with the champions league. that is the premier club competition in europe, which will come into effect in 2024.
there is an underlying issue that clubs have unpredictable revenue, because if you have a good year you could be rolling in money at the next year you could be posting painful losses. the revenue problem on one side and on the second part is there are caps -- no absolute caps on player salaries and how much you can spend on a player and positions. no matter how much money your clubs earned, they will always end up spending the mast -- the vast majority on the playing squad. you end up with a persistent arms race were salaries climb and climb and it is hard to post a profit. guy: -- alix: how does jp morgan get caught up in this and get caught so flat-footed? alex: i am not inside the meetings, it is hard to know what they were thinking. there is a huge gold rush at the moment over broadcast rights. given the huge appetite for streaming content, finances
looking at anyway to find a play. that could be documentaries for netflix or amazon prime. it could also be live sports. rather than trying to get into the existing leak structure, which are quite saturated, heavily overpriced, look like jp morgan thought it was being quite clever creating a new system or it could come in on the ground floor and do it in what appears to be a debt funded way so they their risk, and then sell this for huge amount of money, both domestically in europe and abroad in asia and the u.s. it seems like they were not the only people to misread the room. guy: was the room misread because many of these clubs are owned by foreign institutions, foreign owners who do not have a connection with grassroots
football? how does that reconnection work? do you think this will make european football less attractive, more attractive? i'm wondering how european football, which is such a big part of sport worldwide, you can go to bars anywhere in the world and watch european football, does that still happen in the same way? alex: in the u.s., even yesterday talking to colleagues on bloomberg tv they were saying i do not understand why you do not want to see the best teams playing the best team spirit -- the best teams playing the best teams. the fenway sports group, owner of the -- owner of the red sox, same deal with manchester. they are not at the match space every week and have not been for the past year given the lockdowns. i imagine there must've been a
disconnect in terms of what expectations are and how they align with what fans do in the u.s. the driving force behind this was realogy it and you ventas -- was real madrid and junventus. they read it just as badly or worse. guy: bloomberg opinion columnist alex webb. we just heard from the european commission talking about football. let's hear from her now talking about the biden administration's goal of reaching a global deal on digital taxes by the summer. she spoke earlier to maria tadeo. >> the normal privacy rules still apply. this is basically to say the kind of technology where there is a risk of something fundamental, discrimination or racial bias, there we want to be more strict, but otherwise is just normal privacy rules. maria: the other big theme that
is happening in the global conversation has to do with the potential new digital tax on the digital innovation and how we will essentially tax it going forward. are you more confident that we make it a deal on the digital tax in the summer? >> i have learned never to be optimistic when it comes to taxation or inpatient. i find it is encouraging with the new signals from the biden administration. maybe yes, something could happen positive. maria: this also feeds into a bigger theme, which is about the way we tackle innovation, the way we look at corporations. do you get a sense of the macro trends are changing where you may get a global standardization of rules? >> actually the trends are
changing because all of the sudden we have a global conversation about technology, what role should play, what risks can be mitigated. we may not do exactly the same piece of legislation, but i think the trend is the same and that is good news, not only for citizens, but also for the many smaller businesses who would like to see an open market where they can scale their businesses. maria: you mentioned innovation. we often talk about competition and american companies and finding american companies. the other element is making sure big innovation. what kind of measures already looking for in the short to medium-term to prop up innovation? v.p. vestager: the fundamental point is you have a magician as the driver for innovation. there is no one who can rest on their laurels and hope for the best when there is still this driver by competition to keep you innovative. that is a fundamental, also in
the european markets. we are investing in research and development that we risk competition being distorted. i think investment and a competitive drive is an excellent combination. guy: that was the european commission -- alix: that was european commission executive vice president speaking with maria tadeo. it echoes what is happening in the u.s. with taxes and the constant scrutiny the industry is coming under. today you have apple and google executives will head to d.c. for an antitrust conversation with some regulators. they are low-level, but still, the constant scrutiny. guy: and it is a discount that has to be applied to the stocks. it was during lockdown. increasingly there is a storm brewing for this sector in terms of what is happening. you look at what has happened with netflix, the forward trade,
tech did very well. interest rates are going up. you have the added scrutiny. one of the biggest shifts is the biden administration shifted on taxation it's going to have global ramifications and will allow taxation in a much different way to take place. it will be something i think europe is so to take advantage of. text is in the spotlight. alix: most european countries. other ones are like do not do that to us. guy: ireland in particular. european stocks have wrapped up. these are the final numbers. we are seeing some of the more defensive, the more bond-like proxy stops fading. equity markets bouncing back after getting battered in earlier sessions. we will get the view from the ground and hear from the virgin atlantic ceo on the challenge of reopening the travel industry. that is next. this is bloomberg.
ritika: this is "the european close." coming up -- this is bloomberg. let's check in on the bloomberg first word news. vladimir putin is morning countries not to cross russia's redline or else face retaliation. in his annual state of the nation address, putin says moscow's response would be asymmetric, quick, and harsh. he devoted most of the address to domestic issues. he promised more spending on infrastructure to increase living standards. a new twist in the story of credit suisse and the collapse of archegos capital. the executive who oversaw a risk had earlier seen sales to arcade
goes on the swaps desk. when archegos in -- it raised questions of whether managers prioritized revenue over managing against the downside. global news 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. i am ritika gupta. this is bloomberg. guy: thank you very much. iata widening its estimate for losses, blaming flareups on the pandemic. tim clark is hoping for a recovery, but he is also preparing for the worst in terms of figuring out what he needs to do to keep his balance sheet sustainable. how's that going to work? that was a question i asked him earlier on joint -- earlier on. tim: if all of this continues through the next three, six, nine months. the carriers other than emirates
will have to resort to other sources of cash instruments to try to get their balance sheets sorted out. frankly no airline, no business can sustain this kind of lack of demand and use of its products. as far as emirates is concerned, we are good for another six or seven or eight months in terms of cash. we have sufficient cash coming in to keep the day-to-day operations on a neutral basis. like everybody else, if in six months global demand is where it is today, we will all faced difficulties, not emirates. guy: are you ready for that moment? is there conversation ongoing with the governments about raising money? tim: we will make the reservation -- the recommendations to the government as to where we go with rates for cash.
one of those could be of further injection of equity from the shareholder itself. others will be taking more debt onto the balance sheet. where the balance sheet is strong, regardless of what has already happened, we are ok there. there are other pleasures we could take. we are preparing ourselves for that case. to be honest, i am hoping the demand will return during the course of the summer and virus variance will be dealt with and the vaccination program will continue apace, particularly in the market, not just europe in the west but the developing world. guy: tim clark, the emirates president talking to me at the world aviation festival, virtual still because we cannot fly. reopening the north atlantic will be one of the critical factors for virgin atlantic. when will that happen? shai weiss is the ceo of that business. i caught up with him earlier on to get his take on when that is
likely to happen, when the british government and the u.s. government will allow that to happen, and what kind of spending will we see? will it be business, will it be leisure, how much demand is there? shai: nothing has changed the fact that there should be the resumption -- may 17 should be the resumption of international travel at scale, subject to the traffic light system which we welcome. we think it does not go far enough in terms of benefiting letterman's progress of vaccinating. the positions for travel over the summer will continue to materialize. guy: what does this travel look like? how much of it comes back? how does the mix change? i am hearing a lot about -- bfr is a big part of the business for the u.s. carrier at the moment. how you see your exchange -- how do you see your business changing? shai: anyone who says they know
will be the emerging mix in the back end of this year and into 2022 is mistaken. it is impossible to predict. i believe business travel is going down. will it come back by 2023? let's assume it does. in the interim it will come down because there are certain things we can now do. we have all done a crash course on remote working and digital first strategies. it will change. that mix is changing. there will be longer trades. people will augment a holiday plus work. there will be no masks anywhere in the world. we will see the emergence of the premium leisure market. people have saved a lot of money. i know you covered this quite a lot in your program. the savings rates in developed countries for those people who've been fortunate enough to keep their jobs, the saving rates are unbelievable. guy: how price competitive will
jetblue be? shai: lower today because of the price of planes, availability of the various airports. we know they are a serious competitor and we will take them seriously. it is not just virgin atlantic. virgin atlantic works in a joint venture with delta and air france klm. the ability to connect to flights across the united states is a major element. from london going east and south as well. let them come in. we will take them extremely seriously. our job is to make their lives difficult, and provide a level of service that our customers are accustomed to. guy: i will be talking to jetblue's chief operating officer tomorrow. that was shai weiss, virgin atlantic ceo.
it is interesting. a number of airlines have told me over the last few days they see their business classes being filled up with basically people wanting to go on holiday. they have saved a lot of money and now that the leisure market starts to reopen, that is what will fill that. it will not be a higher price. there are going to be opportunities to go on nice holidays and sit on a decent seat. alix: wasn't it united that announced flights to iceland, croatia, and somewhere else, three regions where they have never flown before because they feel it is a safe court order to do that? other airlines have been doing something similar. i wonder how that changes the competition dynamic? guy: it will be fascinating. the thing with u.s. airlines is domestic is opening up, but to make serious money, you really need the international to open up. alix: it is good for spirit airlines. guy: it is great for jetblue,
because all of these routes are open. for the big legacy carriers, they need to make money on the international routes. the airline sector has hit the brakes. certainly in terms of the share price. i wonder whether there is a growing realization it will be harder to reopen those international routes because is -- because of what is happening in places like india. alix: i soft booked my airbnb in paris for the fall. that is how far i will go. i am too scared to buy the tickets. this is bloomberg. ♪
explaining to do. certainly in expectation there. you have the climate summit. credit suisse will be fascinating. alix: very much looking forward to that as well. also, we were just discussing there was, looking at potentially a diplomatic boycott of the beijing olympics from the u.s.? what you think about that? guy: it does make it more difficult to try to convince everybody to be on the same page when it comes to the climate when you threatened to boycott their olympics. i remember a brit winning the 100 meter final when the u.s. pulled out the moscow olympics. that was long time ago. alix: your old, so that is all right. coming up, nathan sheets will be joining "balance of power" with david westin. 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 start with news from the white house on the pace of covid vaccinations, with president biden expected to speak at 1:00 eastern on the subject. we have a sneak peek. joining us is bloomberg news white house reporter josh wingrove. the president set some lofty goals. initially it was 100 million in his first 100 days, that it was 200 million. josh: they will hit the 200 million goal on thursday. we expect him to talk about that. a bit of a pipit from him and that he will issue a call from employers long and small to get there workers vaccinated. this is an implicit side they are running out of arms of people who are eager to chase down the shot and they are pivoting to try to make it easier for folks who want a shot and are willing to get one but are not as motivated to hunt e