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tv   Bloomberg Markets Americas  Bloomberg  June 7, 2021 10:00am-11:00am EDT

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guy johnson. ♪ guy: 3:00 p.m. in london, 10:00 a.m. in new york, 30 minutes into the trading day in the united states. welcome everybody to "bloomberg markets." these markets, it's not exactly ludicrous speed out there. unless you are in amc. amc in the last few minutes shooting higher. alix: guy is making a reference to tesla's glad that they took the -- tesla's plaid that they took off of. we missed you last week. guy: i don't the guy misted. judging by the price action today, it looks like there's a little bit more. today that's a decent pop and that stock, but it feels as if
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these markets are on holiday, looking for another analyst. maybe i missed on odd little about -- missed out on little bit of that last week. alix: you had some kind of catalyst with janet yellen and her remarks that higher rates are a plus. but no real reaction here. the nasdaq totally flat. you would think that if you have higher taxes globally for companies, a 15% minimum, that would affect companies the most. we will break that down in the next couple of hours as well. the 10 year yield plummeted seven basis points friday, now we are up by about one, but still lower range bound after that number, despite what janet yellen said to bloomberg. the bloomberg dollar index down by almost 0.2%. that is really the story on friday, pushing some of those currencies like the euro higher. that is going to be quite interesting. prude at one point -- crude at one point kissing $70 after a note about how bullish the demand recovery is going to be
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in the oil market. guy: certainly that move towards $70 is quite significant. it is going to become a cost at some point for the economy. if you're working from home, it is probably a little bit easier, but it will be easier to see whether or not that does become a tax on some of the growth we are seeing. talking of which, treasury secretary janet yellen defending president biden's spending plans in spite of the inflation concerns they are creating. she spoke exclusively to bloomberg, saying, "if we ended up with a slightly higher inflation rate environment, it would actually be a plus for society, for society's point of view and defense point of view." i've read the quote, and i think it is really interesting given the hats that janet yellen has worn, the former fed chair. what i want to know from you is how did she say those words?
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can you give us the context about how the conversation went? reporter: absolutely. it was actually slightly higher interest rate environment would be a plus for society's point of view. we were talking about the context of inflation, the debate going on in washington and around the world amongst economists and folks like us. i asked her would you consider pulling back on bidens for trillion dollar infrastructure social safety net spending plans if inflation gets out of control. she said all of that will fade away, and it is 400 billion dollars per year over 10 years, so it is not as giant a fiscal stimulus as many think. she wanted to reiterate that she would not give up. the quote was, "i will not give up on the next packages. she said there is nothing wrong with a slightly higher interest
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rate environment after years of central bankers dealing with slightly higher inflation risks and low interest rates. alix: we really appreciate it. it was a great's gro -- a great scoop, and definitely worthy of market action. headlines of the weekend on reaching a deal of global minimum taxes for corporations. sec. yellen: the g7 has taken significant steps this we can to end the existing harmful dynamic, making commitments today that provide tremendous momentum towards achieving a robust global minimum tax at a rate of at least 15%. alix: for more we want to bring in bloomberg's maria tadeo. what happens now? this is not buying -- this is not binding. what is the procedure? maria: that's really the key point. the other pillar which is
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equally important is the fact that they also opened the door to tax big companies outside of the united states in the countries where they provide their services, so there's no flipping around to low tax jurisdictions. the other thing to point out is this is a g7 agreement. it is not going to work if this doesn't become fully global. for that we have to wait until the g20 in july. i've been told the europeans are very excited about this. there's a huge change in tone from the administration and the u.s., but they say the effective tax rate needs to stay at 15% and we need to get a deal at the g20 or this is not going to work. guy: we will look forward to that event coming through in italy later this year. maria, thank you very much, indeed. let's talk about one corporate story that genuinely i think i am excited about and the world should be excited about. we are awaiting a decision a little later on from the fda
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relating to biogen's alzheimer's treatment. it has been an incredibly difficult journey. the stock has had a fairly good run recently, but nevertheless, this is a huge binary event. if the fda pushes back and says you need more studies, the shares could go quite aggressively down. if we see may be a green light here for this therapy, maybe the stock really starts to climb. let's talk about the risks around this decision, how difficult a decision it has been. joining us now a senior health care editor here at bloomberg drew armstrong. tell us how binary this decision is. drew: it is binary not only for biogen, for the entirety of the health care system in the united states. keep in mind here, you're talking about a massive disease population that has no available effective treatments for a drug that is going to be incredibly expensive and almost certainly a big moneymaker for biogen if it
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does get approved. so this isn't just about the company. it is about the country as well. i think no matter what happens, presumably later today, it could be late at night, it is going to be controversial given the studies around this drug which have been mixed at best, given the dismissive report by the fda's outside experts last year. no matter what happens today, i don't think we are done with this, and a lot of other places like insurers and patients and hospital groups are going to weigh in, no matter what the decision is. alix: especially because the majority of individuals taking are going to be on medicare. thank you very much. really appreciate it. drew armstrong, senior health care editor. some summer vacation jam has started, even though guy is back. bloomberg's abigail doolittle is looking more deeply into the
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moves. abigail: there is a bit of a vacation feel here. prior to last thursday and friday, when they were relatively larger moves for indexes, there were very small moves prior to that, so it does seem there is lower volume, smaller moves. we have the vix fear index slightly higher, matching the s&p 500's slight the klein -- a slight decline. the 10 year yield up nearly two basis points to get so net net, this is probably a neutral market tone. not a lot of fireworks up or down. where we do have fireworks just on the day, but over the last year, the meme stocks and bitcoin. if we take a look at the comparison, over the last year, bitcoin is up it very healthy, and in normal times he would call of absurd -- times you would call it absurd. but amc at one point up 870%, it
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is pretty amazing. bitcoin nearly a 300% gain over the last year. during normal times, that would be frothy, publishes, -- frothy, bubblicious, outrageous. guy: that would have a plaid sort of trail behind it, amc. it kind of links the movie theme to what is happening with the stock. we are talking about "spaceballs " here. alix: have you actually seen "spaceballs?" guy: i have. we had this debate amongst our team a little earlier on, who was actually live in 1987. i was definitely alive in 1987. alix: just you and me. guy: pretty much. [laughter] a few others, not everybody. abigail, thank you very much, indeed. we are going to be talking about that tax deal next. we need to get a look at what it
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means for the tech giants. we are going to do that with managed upon the -- with many's despond -- with manish d eshpande. that is coming up next. this is bloomberg. ♪
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♪ alix: live from new york, i'm alix steel, along with guy johnson in london. this is "bloomberg markets." let's go back to our top story about the g7 agreeing on a minimum global tax of 15%. the idea is to really get into some of the big tech companies like amazon or apple or google and get some of that money from them. what is interesting is that may not happen for some of those companies. the idea is you are going to tax
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the profit that exceeds a 10% margin, and that is in the case for companies like amazon. apple profit margins, this is from bloomberg intelligence, is 21%. there effective tax rate is about 14%, so that could go up a bit. facebook, same deal. but what is interesting is amazon's profit margin is 5.5%. that would not qualify under the guidelines of this global minimum corporate tax, and they pay one of the lowest in taxes at about 11%. i should point out that nvidia has a very low effective tax rate and could be hit. the markets just don't seem to care about that. guy: they don't. what is interesting about amazon as well is this is because they reinvest so heavily, but janet yellen talked about the fact that these complete will qualify, so it will be interesting to see how they tighten up these rules. this whole story feels like it has a long way to go. that is why it feels like the market is actually taking this largely in its stride at the
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moment. there are many hurdles that need to be crossed in order for this tax deal to become a reality, congress being one of them. you got to get through to g20, get through to the away cd -- the oecd. it could be significant he changed. that could account for what we are seeing here. but i think there's a broader theme. we are going into the summer. volatility is starting to come down. this is a very long-term chart, all the way back to 1992, but we are coming into an area that is probably fairly good for stocks. remember, european stocks are trading up near records now. i know it is a really quiet monday, but nevertheless, we are at very elevated levels. the vix is at 17. that is pretty low, and could potentially go lower. you are finding yourself in a situation as well where it is not just equities, but you look at the move index, for instance, and the bond market, it is low and seems to be tracking lower. money's despond a -- maneesh deshpande is joining us.
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he looks after derivatives and has a pretty good idea of what a normal summer looks like when it comes to the derivatives market. thanks very much for your time today. let's talk about what you do with the vix. the vix is circa 17 right now. do you think you want to be short of that? how do you get short vol going into what is traditionally a quiet summer period? maneesh: of course, you can't directly trade the vix itself. if you enter the summer months and then realize volatility is what matters for the vix index that continues to be low, you do expect that to capture but the market is expecting and what turns out to be the case tends to be a profitable strategy. so just to give you an idea,
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credit spending was very bad, but the demand for vol goes up. that's one of the reasons why a low vix at 17 looks relatively low to it was last year, but still pretty high compared to what usually is. alix: so what is the cheapest trade to express that view in the equity market, but also, say, in the fx market and the rates market in particular? maneesh: those are the smartest ways to focus on short dated volatility. what that does for you is you realize if volatility remains low, you capture that premium.
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but if it spikes again, that is one key reason why you want to short date it. you do want to hedge in various ways, and we have different techniques of doing that. [indiscernible] -- longer dated options, and a hedge against selling the short options, so something like this, options obviously got hurt in 2020, but the hedge was one way the drawdown was quite significant. guy: let's talk about what is happening in single stocks. i headline crossing a moment ago, the sec is monitoring ongoing volatility in certain stocks. we talked about amc at the top of the program. let's talk about some of the single stocks that are experiencing significant volatility at the moment. can i extrapolate what is happening with these single stocks into the wider market? is there a connection there? maneesh: i think the interesting
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thing is that obviously, specific stocks have really led headlines at the beginning of the year, and this has been driven by retail investors, but there's a deeper story here that the retail space, especially in the options market, actually exploded last summer. at that time, the focus was actually on large-cap tech stocks. the core valuation that we saw could be partially attributed to that. basically, what happened was -- so that has what and happening. -- so that is what is been happening. volatility has been coming down over the last few months, so the focus has shifted to specific stocks grabbing headlines. that has fewer ramifications as
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compared to the large-cap stocks driving the prices at the headline index. alix: before we let you go, we want to tie-in your specialty with the macro theme, and that was janet yellen talking about potentially higher interest rate environment, that being maybe a good thing. yields obviously don't go anywhere, but if we get an environment where we see persistent pressure upward on yields, what is going to be the reaction function of the equity market? that has been the story for months, and i am wondering what is actually priced in and what needs to be priced in. maneesh: i don't think high rates, at least moderately higher, is a big problem for equities. the correlation between high rates usually leads to higher equities. the question is is the fed doing the right thing in the context of where growth is. as long as the market is comfortable that the fed is not
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being too ahead of the curve, equity markets can still go up. in the mid to thousands, the fed kept hiking. it is only during periods when the market is trying to figure out how aggressive the fed is, that is when you get this access vol. guy: always a pleasure -- this access vol -- this excess vol. guy: always a pleasure. thank you. we're are getting some headlines from the airline sector. monday morning, you don't want to be doing this after a week, trying to play catch-up. [laughter] virgin atlantic, american, and delta ceos have been talking over the last few minutes. basically, they are saying they want to see the north atlantic reopening. this obviously comes ahead of the g7. got a bunch of leaders coming over to the u.k. later this week, including joe biden, but
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the pressure is to try and reopen the north atlantic. they want to see the u.s. on the green list and u.s. curbs being lifted. delta talking about vaccinated travelers should not face restrictions. they are trying to put some political pressure on this highly profitable route. they wanted to reopen. but i wonder whether the indian variant is going to provide problems here in reopening that route. alix: virgin atlantic wants to see the u.s. on the green list, but look what happened to portugal. coming up, we are going to stay focused on tech because apple is making its case to developers that it is the best place for them to sell software. more on what to expect from the annual conference next. 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." apple's worldwide developer conference kicking off this afternoon. bloomberg's dave wilson joins us now and is looking through it. what are we expecting? dave: lots of software updates, specifically new versions of the programs that run the iphone and the ipad, so a lot of those kinds of developments. also focused on new tools for privacy. apple has made a real point of trying to allow subscribers to stay private in terms of their communications and all the rest. but really, the bigger issue overhanging the proceedings is what is happening with the app store. it is an area, when you look at apple, they are really trying to focus more on services because they haven't had the growth on the product side of their business. specifically with the iphone, you see the decline in the most recent fiscal year which ended last september, and they've had
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issues with growth in the iphone business this year, even as you've seen the transition to 5g handsets. so it has become an area that they are really focusing on, now that they have all of these mobile devices, mac computers, and all the rest. they are looking for a way to capitalize on that install base. so you have seen increasing growth in terms of services as a share of apple's revenue with the fiscal year ending in september, and they are looking to move higher from their. guy: it is fun to focus on the software. it is fun to focus on the new hardware. my question to you is does any of this get the share price moving? dave: that becomes a big question because we know the shares have not been moving all that much lately. that is really an issue. given the size of the company, if nothing else, the biggest in the world by market value, where
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do you go from there as opposed to the question? you could argue the broader market has as well, but a lot of that is tied into what is happening with the likes of apple, so something to watch as this conference unfolds, do you get some kind of a move in the stock? apple has actually been a bit lower in the early trading. guy: dave, always a pleasure. thanks very much, indeed. what have we got coming up for you? the u.s. congress is back in session. greg valliere of afg is going to be joining us. we will talk about bidens agenda. we will talk about his trip to europe as well. that is all coming up. this is bloomberg. ♪
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♪ >> this is a big week. >> i think we can find a
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bipartisan deal. >> this has got to be done soon, and without putting a specific date on it. >> there's no hardwire deadline. we are doing the work of legislating. we are going to continue the work of doing our job and trying to get a bipartisan agreement. alix: president joe biden and republican senator shelley moore capito are meeting again today to discuss an inference or agreement. bloomberg government -- infrastructure agreement. bloomberg government reporter emily wilkins is joining us with more. what is the reality on the ground of what we will see right now? maria: --emily: it is that both sides are still pretty far apart at this point. you saw biden reject the latest offer from senate republicans. we are keeping our eye out this morning to see if there is some sort of counter offer before they meet again. at this point, there are really big divisions and how much this bill should pay, how to cover the cost of this bill, whether
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or not through taxes. biden's most recent proposal of having human mom corporate tax rate has been shut down by a number of -- having a minimum corporate tax rate has been shut down by a number of republicans. president biden is under a lot of pressure from his own party, mainly progressives who say these negotiations have gone on long enough, we have done good faith efforts, we have to begin writing a bill because remember, just because it is only democrats who might be moving the legislation through congress does not mean it is something that is going to be easy to do. you need to get moderates and progressives on board. that is going to take time, and democrats really want to make sure they are getting a bill done before the end of this year. guy: great stuff. thank you indeed. emily wilkins of bloomberg government joining us from washington. so you've got the talks with biden happening today. if they don't progress, maybe the democratic party want to proceed. there's talk of that happening by wednesday, the democrats going it alone. but is that really possible,
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with senator manchin saying what he is saying right now? greg valliere of agf investments, u.s. policy strategist, joining us now. that is the big question. if the talks with republicans go nowhere, if the number isn't right, can the democrats do this on their own given the divisions they have within their own camp? greg: no they can't, they cannot do it alone. you've got joe manchin of west virginia, immoderate democrat who believes in bipartisanship -- west virginia, a moderate democrat who believes in bipartisanship, who lives in a world were there is no bipartisanship, so he could grind everything to a halt. the democrats have all these techniques they would like to use like it reconciliation, but you have to get to a tie 50-50 that, harris would break. -- that kamala harris would break. you can't do that with joe manchin. so this does not portend well
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for the biden agenda for the next few months. alix: we are obviously talking about that he is not told to support a key voting rights bill. he's not on board with the entire agenda that some of the democrats are. if that is the case, what do they have to do? what do they have to change in the infrastructure bill to get manchin on board? greg: they are going to make it cost less. they will not have anything but the basic roads, bridges, water, stuff like that, and that may be sufficient to get him on board. but the other parts of the biden agenda, the family aid, free community college tuition, child tax credit, that i think has very slim prospects, and the final when is the tax hikes. they look like a train wreck right now. i am not sure we are going to get much on taxes. guy: let's talk about taxes and a little bit more detail. different perspective, but the broad narrative. we have this g7 deal that was
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done over the weekend. a lot of people are taking credit for it, but certainly janet yellen's involvement has been hugely significant here. my question to you is the markets seem really relaxed about this today. is that the korea reaction -- the correct reaction? people are making the sums and that this has a long way to go, but significantly as well, it's got to get through congress. greg: i fully agree with the market premise right now. it is going to take a very long time. two big problems for janet yellen, and you have to give her credit for getting this deal, this initial step, but problem number one is that you've got a lot of smaller countries like ireland that are not interested in doing this. they want to go below, they are below 15%. problem number two, even bigger is that this is a treaty. a treaty has to be ratified by the senate, a 2/3 vote. we can't even get 50 or 51 votes in the senate. the idea that you could get a
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2/3 vote for this in the senate anytime soon is very unlikely. alix: well said. janet yellen is hugely respected in the international community which is part of the reasons why this gained a lot of momentum. what is the relationship with congress itself? greg: i think it is pretty good. i think the markets like her. i think people in congress like her. but she has set a couple of things that are frankly a little indiscreet. she said over the weekend she thought inflation might get over 3% for a while, and then walked that statement back. so she's learning. it's a tough job. it's not like being fed chair. treasury secretary is different. but she can't get to up about a tax deal. i think a tax deal that is finalized is months and months away. guy: the president first big foreign trip -- the president's first big foreign trip coming up . he's potentially going to meet
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the queen, then going to nato, then an eu summit, then meeting vladimir putin later in the week in geneva. what does he need to get out of all of this? greg: i think it is atmospheric. i think he needs to show the world that the u.s. is back to a more normal relationship, unlike the one we had with donald trump. i think a lot of europeans are going to be a little wary of the u.s. they have seen, number one, trump is back, and they have seen biden can't get his agenda through. i think a lot of european leaders will be cautious with him, but it will be a better five, no question a better vibe then we saw in the last four years. alix: great to catch up. i did send you that video of trump-pence -- of trump's pants. that is what everyone was talking about of the weekend on twitter. coming up, bond investors taking on secretary yellen's comments on inflation.
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the day when the fed starts to sell some of the corporate bond etf's as well. this is bloomberg. ♪
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ritika: i'm ritika gupta. coming up the visa vice chair and ceo. this is bloomberg. ♪ let's check in on the bloomberg first word news now. in mexico, president andres manuel lopez obrador's party took the lead in elections for the lower house of congress, but a survey indicates his coalition won't retain a super majority needed to pass constitutional reforms. in peru, the presidential runoff is still too close to call.
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u.s. treasury secretary janet yellen has higher interest rates would be a plus for the u.s. and the federal reserve. in an interview with bloomberg news, yellen said president biden should push ahead with his $4 trillion spending plans even if they trigger inflation. she says any spur in prices resulting from the rescue package would fade away next year. today the fed starts liquidating the $13.7 billion corporate credit portfolio it built up during the pandemic. the fed will start with exchange traded funds and begin sales of corporate bonds this summer. 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. alix: thank you so much, ritika. in terms of what janet yellen was saying, she also went on to talk about slightly higher interest rate environments that would actually be a positive from the fed's point of view. interesting on many different levels, but she said again that
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she keeps talking about higher interest rates, which we thought maybe she wasn't going to do. guy: it turns out she's not quite prepared to give up that fed role just yet, but there's been plenty of opinion pieces that i've read today that basically seem to indicate that she's doing the fed a solid here, giving them cover to start that process. but i guess if you look back and look at the payrolls numbers friday come you look at what is happening within the labor market, it hasn't recovered may be as quickly as somewhat of anticipated. maybe that doesn't start to change now because obviously, some of the benefits are going to start rolling off. maybe people do start going back to work. it will be interesting to see how the fed manages what it has been saying in terms of that inflation narrative, the labor market narrative, and whether or not actually it is going to ignore yellen for now. alix: it looks like it. guy: the market certainly seems to be ignoring yellen for now, which is interesting.
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let's bring another voice into this conversation. mckay shields' senior credit analyst. alexander, thank you very much, and deed for joining in talking about this. the market seems to be taking a calm approach to what janet yellen said. she's talking about higher interest rates. she's talked about them before. is that the correct interpretation? the fed is still largely going to stick to what it said it was going to do. >> yes, thank you so much for having me. it is a pleasure to be on with you. from our perspective, rising interest rates go along with an improving economy, and as fixed income investors, we welcome that. it is all about the speed and the change in which it occurs. if you have a two-point move on the long bond, that obviously impacts meaningfully our total return profile.
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but if you have a gradual rise in interest rates, a reflection of a debtor economy, that is a great opportunity for us to invest. we get in current cash flows we could put to work, and we have a lot of participants in the marketplace that are looking for yield right now. alix: i just wonder how that relationship winds up playing out in the long term. i was interesting in mervyn king, the former bank of england governor, who wrote a piece talking about the relationship between governments and central banks coming out of this crisis, saying the company should of pressure to assist in financing budget deals, promises to not tighten policy too soon, growing involvement in political matters all point to a growing risk that central banks are going to respond to slowly to higher inflation. -- respond too slowly to higher inflation. they catch ups will mean hikes, and that is really going to destabilize. do you hedge that? do you play that? alexandra: at the end of the
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day, the fact that you have janet yellen with her fed experience is actually a benefit. they are able to speak the same language. they know what policy tools they have available to themselves, and they are trying to communicate effectively and in a measured, methodical way to the marketplace so that you don't end up in a sort of taper tantrum environment. from our perspective, it is broadly speaking a benefit that they have that language they speak collectively. alexandra: -- guy: in terms of how you see the labor market developing, clearly it has become a huge issue for the fed and the fiscal authorities as well. the data friday and the previous number as well really didn't deliver what markets were expecting. do you see a sort of catch up trade in the labor market happening over the next few months, and does that put the fed in a different position? alexandra: it is something we are spending a lot of time on. we are paying a lot of attention to the data.
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as a long-term investor, you're not focused on each single print , but focused on the trend. the imbalance in the labor market does have the risk to changing at a very rapid pace, which could put you at risk for a policy error. that is not our base case, but given where credit markets are priced, we are sort of christ to perfection. so should you have something that happens there, there is some risk on the table, so we are constantly looking at that and positioning appropriately should that occur. alix: do you think we are going to see any sort of medium reaction to the fed selling their corporate bond holdings today? we talked about how the fed is going to navigate stuff, and yes, you could say it is not a big deal, but you could also make the argument that this is how they are going to start talking about talking about tapering. using there's going to be a market here to react to? -- do you think there's going to be a market here to react to? alexandra: the size of the asset
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sales are really an issue for us. that is why you didn't see a material moving sprites last week or even today. but what is important is in the checklist of moving towards broader tapering discussions, you can't have the corporate credit facility still open. it is not even of youth given the breadth of the market, and the fed does not want to be writing puts to corporate america, so it is a very important part of that transition in the wind down. you have to get away from the credit market and then talk about mortgages or treasury. guy: you look at how quickly the fed came in, you look at the size that the fed came in with, they can sort of back out of the market, but there has to now be disbelief in the credit market that any kind of problem, the fed is going to come in and size. the backstop is there, isn't it? alexandra: not necessarily because if you look at the past
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10 years post global financial crisis, you had multiple instances where the fed did not intervene for the credit market. this was truly, from our perspective, somewhat of a unicorn event because you had the pipes of the fixed income system, which really is the lifeblood of the economy, getting clogged up not just from the money market perspective, but all the way to corporate credit and the inversion of credit curves. so i think it would take another tale event for the fed to jump into the magnitude that they did. alix: do you think there is enough room for credit spreads, inflation breakevens, etc. to trade independently of that? as income of the market won't think it is a backstop, and we can get the real understanding of where spreads should be, and how you truly should value them? alexandra: yeah, and i think the fact that reaction functions did not react to them stepping away is a fence in of that, and they stayed where they are seeing balance sheets improve, cash
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flows improve, but you also have this global low yield environment, and the u.s. is still very attractive on a relative basis, so i think there's an element of that into how we are trading. but i don't think the majority of investors think that that safety belt is going to be there forever. alix: we appreciate you spending some time with us. alexandra wilson-elizondo of mckay shields, thank you. biogen is halted for news of the fda decision pending. this is their alzheimer's drug. biogen was at a four-month high ahead of this verdict. it is going to have repercussions all across the medical industry, the insurance industry, and the biotech industry. those shares are halted. we will keep you updated on any news as they cross. guy: we are also getting a briefing in the house of commons from matt hancock, the health secretary and the u.k.
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u.k. covid hospitalizations broadly flat. this is critical. there he is speaking live in the house. case count is starting to rise. i think sunday the number was up around 50%. this is the delta variant, which seems to be about 40% more transmissible. but there seems to have been at least some severing of the link between cases and hospitalizations, that maybe the reopening on the 21st will be able to go ahead. the u.k. is also announcing it is going to start vaccinating people 25 to 29 from tuesday. there's now starting to be some evidence that we could actually be vaccinating teenagers towards the end of the summer as well, obviously with the return to school in september. but certainly the hospitalizations number is the one you want to watch out for. alix: but i am trying to gauge here is the fact that the astrazeneca to shot is not as effective against the delta variant, or are things, is
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testing just better in the u.k. than anywhere else, so we have more cases? i agree that the hospital count rising is the red flag. what i'm trying to get, are we six weeks behind you guys, or is it the fact that the u.s. has more pfizer and moderna going to be ok? guy: i think that probably is a factor in all of this, so efficacy is going to be something that you will want to watch out for. but nevertheless, the fact that most of the cases, particularly those cases that have been hospitalized, tend to be in a younger cohort that hasn't been as fully vaccinated, would seem to suggest that the vaccines, be it astra, be at pfizer, is having some effect and is breaking that link with hospitalizations because yes, the case count going up as a red flag, but i think the green flag here is the fact that hospitalizations here are not rising significantly. i think that is probably the crucial piece of data that a lot of people are going to be watching out for. alix: nevertheless, very
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cautious from the government. hancock saying they will assess covid outcome i had of that reopening of june 21. coming up -- >> they've gone to plaid! >> we passed them. alix: we will tell you what this 19 eddie seven sci-fi comic -- 1987 sci-fi comedy has to do with elon musk. this is bloomberg. ♪
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♪ ritika: it's time for the bloomberg business flash, a look at some of the biggest business stories in the news right now. it would be one of the biggest leveraged buyout of all time. a consortium of private equity firms agreeing to buy medical supply company medline industries. the transaction is valued at more than $30 million. the consortium includes blackstone group, carlyle group,
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and hellman and freeman. the world's richest person is going into space. jeff bezos will be one of the passengers next month when his company blue origin since humans into space for the first time. bezos and his younger brother will join the winner of an online auction. the company is conducting suborbital flight 15 days after he is set to resign as ceo of amazon. shares of amazon are lower. the electric carmaker set out plans to build a model s plaid plus. the tesla ceo tweeted out that it would be just so good. alix: thanks so much. apparently, and i didn't know this, it was named plaid in part because of that "spaceballs" cliff they showed that you go so fast, ludicrous speed, that you wind up having plaid because it
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blows everything out. guy: it's obviously a parody, and you don't really have that kind of star wars-esque lightspeed moment, but they go beyond that and it goes plaid, and obviously elon musk is something of a fan of this movie. alix: who isn't? guy: there is. fantastic. then they go past them. such good stuff. you wouldn't go into space, would you? alix: not in a moment. if han solo is there we would talk about it, but no. most likely no. [laughter] guy: not jeff bezos. that doesn't do it for you. alix: not so much. sorry to break it to you. this is the han solo of decades ago. guy: ok. i think we've nailed down a number of different points there. the european close is coming up next. this is bloomberg. ♪
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guy: breaking news from the fda. biogen's alzheimer's treatment,
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early-stage alzheimer's, has been given the green light. the treatment has been approved. it is the therapy that is very much in the early stages of treatment of alzheimer's. but the level of unmet needs in this space is absolutely enormous. this therapy has already had a very rocky journey. this is a huge win not only for biogen, not only for biogen's shareholders and scientists, but it will be fascinating to see exactly how this gets rolled out, how the rest of the health care industry gets involved. but this is a huge unmet need, as we all know. alix: it was halted about 15 minutes ago, pending news from the fda. it was just around a four-month high earlier in the session. as you pointed out, eli lilly for example is just working on its own alzheimer's drug. there are also some small cap drugmakers also working on something. but

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