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tv   Bloomberg Surveillance  Bloomberg  July 9, 2021 8:00am-9:00am EDT

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>> we are going to have another year or two of above trend growth, and i think that is going to be something we should be pretty encouraged about. >> some type of a pullback just seems natural and normal, and this is not a reason to exit the market. >> the market likes higher rates and people don't want to buy into that idea. >> you have the stockmarket rendering what the bond market knows, so there's a lot of negative pressure. >> when eventually rates rise, i think you will have a problem. but for the moment, the economic and monetary backdrop is very favorable. >> this is "bloomberg surveillance" with tom keene, jonathan ferro, and lisa abramowicz.
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tom: good morning, everyone. we welcome all of you. lisa abramowicz, off on a most unusual friday. it is a growth scare recovery. red and green has become all green. the nasdaq 100 is positive. jonathan: up 0.1 on the nasdaq 100. guess where the bond market is? lower. yields approaching 1.34% on tens. tom: i'm not willing to say it's over, but a lot of people were saying it was a growth scare. we went through it, and up we go. ben laidler really reaffirming that this earnings season will be definitive. what to me as unusual was on a friday, it is not jobs day. this has been most active. the 72 points from president biden on competition in america, every corporate officer will have to address that.
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jonathan: jonathan: we are on the same -- jonathan: we are on the same page on this. i think the next week for earnings is going to be absolutely fascinating. the divide on commentary for macro strategist and what you will hear from the c-suite from the corporate leaders from tuesday onwards could be very different. tom: it will be. what we see at sun valley, all of those elites are going to have to meet and say how do they adapt across 72 items. romaine: it will be interesting to see how many of those items become a reality. i think the message is clear that for the next three years, you have a regulatory environment that is going to be a lot more scrutiny over some of these deals. i think that could put a little bit of a chill on some of these mega-deals, but overall, the market seems to be taking it in stride. tom: let's go to the bond market. i'm looking at the real yield.
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we went down to negative one point whatever. we come back to a more attractive negative number. jonathan: up five points on tens. your yield, 1.3377%. futures positive by 0.5%. what is the new range over at bmo on the 10 year, low one 20's to 1.47% for the next month and a half? what ian had to say is even if i told you what the economic data point was going to be for next week, the week after, could you tell me with confidence and conviction how the market would respond to it? that's what the story is for me right now. it is not about the data alone. it is about how the market will respond to that information. that is where the critical information is at the moment. there is a belief from ian lyngen and others that upside surprise on inflation bring the federal reserve in, which means yields are lower, and is a bullish story for tenzan 30's --
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for tens and 30's. it is a flat her, not -- it is a flatten or -- it is a flattener, not a steepener. tom: the study of what gdp is doing has been the foundation study for all in the markets. david rally up ube asset management agrees -- david riley of bluebay asset management agrees. what does the slowdown gloom crew get wrong? david: i think they get wrong the extent of momentum that we have in the u.s., and i think also the global economy right now. we still do have continuing substantial fiscal support, and i think we are going to get more going forward as well coming out of washington. the recovery fund will start to be dispersed at the end of this year and into 2022 within europe, and with the vaccine rollout as well as supporting
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reopening. so i'm pretty confident. i've got a high conviction even though the market is challenging that conviction in terms of how the bond market is performing. we do have strong growth this year. we will have above trend growth next year. i can tell you where the market will reasonably contribute to recent challenges, but once we get past that, we are going back into a sort of secular stagnation of excess savings, loan growth, low inflation, and the fed is going to end up getting trapped in a way that i think the ecb has done. i am not as pessimistic as that. i think right now the market is overpricing the fed. i still think bond yields are going to end meaningfully higher by the end of this year, but i'm taking some pain and having to grin and bear that right now. tom: earlier on -- jonathan: earlier on we caught up with
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bmo. you made the point it is not what you expect, it might be a little more counterintuitive in the future. upside surprises on cpi will actually lead to you lower yields in the long and. are you pushing back against? david: i think in the near term, that is because the market has interpreted the last meeting of the fed as this hawkish pivot, and basically decided that the fed has blinked in terms of its average inflation targeting regime. two if you get higher inflation in the near term, that makes the fed more likely to hike rates. . we will see higher and stickier inflation, as well as stronger growth, but also i don't think the fed has become meaningfully more hawkish. at some point i expect the curve
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to steepen back again and to get back to that more reflationary trade. jonathan: tom and i hate the wind questions, but i think it is important when you think we will have sufficient information to challenge the current consensus. when you think that will happen? david: i think we will be looking at september, october time. what is important is, in addition to the inflation numbers, what is happening in terms of the labor market. although we had a pretty strong payroll headlines number, the un-limit rate picked up. our forecasts to just unemployment is going to be approaching 4% by the end of this year, so i think when we get to october, we had a number of payroll reports, including the september payrolls, which will start to reflect some of the runoff in terms of the center of unemployment
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insurance. kids returning to school, getting more access to the lamer market as well i'm supposed -- the labor market as well, so some of those labor constraints might start to disappear as well. romaine: as you try to assess this growth story, can you maybe walk us through the divergence we have seen lately between what has been going on with regards to sovereign debt, and what has been going on with regards to corporate credit. they seem to now be uncoupling maybe just a little bit. david: one aspect of what we have been seeing of late is that we have seen volatility in the rates market, we have seen the equity market starting to respond to that and thinking the bond market is telling us that growth is slowing. credit actually held up pretty well. in part, credit doesn't need really strong growth and corporate earnings growth in order to be relatively
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attractive from a kerry perspective. but i do think the credit market right now is saying maybe growth is moderating, but it is not w aving any red or even amber flags, and my opinion. tom: riley is focused on one thing, and it is what england is going to do against italy. how do they do this? does england have to come out strong? when does england do it? do they come out strong in the first half, or do they have to be patient and come out strong in the second half? jonathan: i think a lot of it comes down to one player, sterling. he's been a standout performer for england. if he turns up, there could be a bit of trouble for italy. he's been absently fantastic. david: i actually think italy overall are the actual better team, but england have hold
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advantage, so i'm hopeful that that will be enough to get us over the line. but raheem sterling i think could cause them some problems, particularly if they touch him. jonathan: and of course, the one against belgium and against austria. the city of london unbeaten in 30 plus games. the city of london monday morning, how does that work? what of these had to your team. are you saying i don't expect you to be an early monday morning after the big game? what are the expeditions from the staff in the city? david: i've told them don't expect me to be in. [laughter] jonathan: what about them? david: there's got to be someone to work. [laughter] then again, i'm a lot older. i do need my sleep.
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hopefully, there will be a little bit of positivity and the euphoria for a bit of long sterling trade. jonathan: we should send the camera out two station on monday morning. i am telling you, tumbleweeds all the way through to lunchtime. tom: it's called bunk, right? what i noticed here is david riley is not focused until we brought this up. he's just full on right now. jonathan: i would agree. david riley of bluebay asset management, chief investment strategist. monday morning it is going to be dead. i'm telling you. no one is turning up. tom: even the prime minister, you sought the end of the game prince william clapping as well. let me ask, does the queen show up? jonathan: i don't think the queen is showing up. i imagine prince william attends again. the first major final since 1966, tom. it has been a while for the
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england national team. it is a big moment for the country. tom: how did they get here? jonathan: they had a favorable draw. two points i will make. . they had a favorable side of the bracket. unlike the previous england teams, which i detested because of the attitudes of some of the players, this team is really quite likable. it really is. tom: like "bloomberg surveillance." jonathan: like this team, too. with the exception of you and i. on the s&p, up about 0.5%. tom: lisa, come home. jonathan: guy johnson writes in, "it's debt on monday anyway -- it's dead on monday anyway." thank you, guy. guy johnson coming to'you in about two hours time. -- to you in about two hours' time. ritika: president biden is signing a wide-ranging executive order today, aimed at promoting competition in the economy.
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amongst other things, it calls for supporting programs that would import cheaper prescription drugs from canada, save on internet bills, and make it easier for people to get refunds from airlines. the president also seeks greater scrutiny within the tech industry. the largest business and labor organizations in the u.s. are joining forces to push for the infrastructure bill. the chamber of commerce and afl-cio are on board, along with groups representing manufacturers, retailers, and builders. president biden and i bipartisan group of senators brokered that agreement last month. billionaire richard branson made his reputation with a series of daredevil exploits. he returns to that on sunday when the 70-year-old is scheduled to take a rocket powered trip to the edge of space. the test flight of branson's virgin galactic spacecraft would be a step towards get buying passengers. bloomberg will have complete coverage of the launch this
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monday starting at 9:00 a.m. eastern. 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. ♪
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jonathan: from new york city for our audience worldwide, live on
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tv and radio, this is "bloomberg surveillance." lisa abramowicz is back with us on monday. here's the price action this friday morning. equity futures positive 21, 0.5% on the s&p. the nasdaq 100 advancing 18 points, 0.12%. outside of that, taking our cue from a bond market that has seen eight straight days of yields lower. today, yields higher to 1.3 360. -- higher to 1.3360%. after all that soccer talk, someone writes in, "those of my generation don't have any interest in soccer. using your head to strike a ball is just dumb." romaine, is that your ghost account on twitter? [laughter] i understand people feel that way on that particular sport. tom: i do enjoy watching.
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the big distinction is americans were foisted subpar soccer. when we see world-class soccer, we are like, oh. it is really interesting. jonathan: if we had the world cup here tomorrow, it would be massive in this country. i think it would be huge. it would be nothing like 1994, when there is very little interest. i think if it were held now, it is going to be huge. tom: dr. dudley is going, what are they talking about? joining us now is william dudley , of berkeley, of goldman sachs, and the former president of the new york federal reserve. we are thrilled he could join us. he writes presciently on labor this morning. i don't want to go into the details of president biden's 70 do points on the powers of corporations and the consolidation of corporations and the weakness of labor. you address it this morning in your note. but i want to go back to an
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important article you wrote six years ago. what kind of jobs have been created? how did we get here with declining labor share? william: it is not really clear exactly why labor share has declined so much over the last couple decades. presumably it is because corporations have more power. policy has been less aggressive, particularly when and i get but if -- particularly from anticompetitive stance. we only got close to full employment at the end of the last economic expansion, and then the pandemic hit. i think the key is going to be can the fed drive the economy to full employment, and i would expect labor to do better and pick up a bigger share of that. tom: the primal scream of this
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document and the political energy that supports it, that supports president biden, seems to be about a blanket of technology over this generation. do we underestimate the technological effects on our labor economy, on our american economy? william: i think there's no question that the digitalization of the u.s. economy has had an effect on returns on capital and reach around labor. i think the ability of people to search through the labor market and find people to employee is vastly different asked to employ -- to employ is vastly different than when you needed a help wanted ad. jonathan: there's a belief that labor will start to get more power through this reopening. you have written today in your column, is the labor market to loose, or is it tight? your answer is both. can you walk me through your thinking and your latest piece? william: it is loose in the
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sense of the unemployment rate, still elevated to where we were in february, 2020. right now it is 3.9%. it is 7 million jobs short of where we were in 2020. if you look in terms of how many job openings there are, the number of john openings -- number of job openings is at an all-time high. you hear it anecdotally and the fed beige book, about how businesses can't find workers to higher to do their work, and some businesses are cutting back their hours of operation because they can't find enough workers to keep their output up. tom: when we talk about the power of workers here, when you go back decades prior, there was an argument to be made that it was the mobility of workers that also gave them a lot of power, and that with the consolidation
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of industries, the decline of labor unions, that sort of leverage is just not there the way it used to be. is it possible to break that back is it possible? -- is it possible to break that back? is it possible for that to be done at the behest of policy? william: i think it is difficult to move from one geographic location in the other today than it was 20, 30 years ago. part of that is the population are older. they are more attached to where they have lived historically. i think it is really about the fed getting the economy to full employment. you can make the labor market fully tight, then businesses will have to pay workers to get a piece of the pie. jonathan: you've talked about the balance of risk around a federal reserve, that once they do lift off, that trajectory won't be as shallow as the trajectory we saw in the previous cycle, a fed that you
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were a part of. do you still feel that way? william: they basically said we are not going to begin to raise short-term rates until the economy is at full employment, and they have to be confident that inflation is going to grow above 2% in the future. that is very late to actually begin the tightening process in terms of short-term interest rates. before, they should off early with the idea of hitting 2% inflation, full employment, and a neutral federal fund rate at the same time. jonathan: bill, good to hear from you, as always. that piece is out on the bloomberg terminal this morning and at is the labor market loose or tight? the answer, it is both, from ill dudley -- from bill dudley. tom: i remember standing on a louisiana subdivision lawn where he did a political event and started talking about to america's. that is exceptionally did at
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jeffrey sachs on the challenges to labor in america. blanchflower of dartmouth said it is there, it is policy. does it have any power? does it have any strength? it is a margin call for corporations to respond every single one of those items they are going to have to respond to it. jonathan: the emphasis is clear, and worth pointing out. this is about competition. i think it is something we all want to see. romaine: and when it gets to tom's point -- when it comes to tom's point, does this may be give you second thoughts about this, or do you move forward with it and try to test this new policy and this administration on what it thinks about anti-committed to practices. jonathan: we will talk to terry jane's -- to terry haines of pangaea policy about this very issue. alongside tom, i'm jonathan ferro, together this morning with romaine bostick. i believe lisa is back on
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monday. tom: hard to believe. jonathan: getting some sleep maybe next week, romaine? do you go to the gym? romaine: i used to, before i started doing this show. [laughter] jonathan: this is bloomberg. ♪
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jonathan: from new york city for our audience worldwide, live on tv and radio, alongside tom keene i'm jonathan ferro together with romaine bostick. lisa will be back on monday. here is your price action. up went 5% on the s&p 500, we advanced 21 points. yields higher by around three or four basis points. we need to head to washington, d.c. and catch up with our washington correspondent annmarie hordern. this administration very focused , competition, competition, competition. annmarie: it is across a plethora of industries. agriculture banking, shipping, internet. what is distinctive of this
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executive order is it is similar to the obama administration, but under the obama administration, a lot of the things and that executive order have been rolled back under former president trump. this executive order is targeting a number of industries. big tech is one of the biggest. what is interesting about big tech's this could have bipartisan support. it is going to agencies and regulators but we could see congress look at some of these executive orders and want to push through some amendments in terms of legislation. we see house republicans looking at taking on big tech, especially when it comes to censorship. pharmaceuticals is another big one. yesterday speaker pelosi was talking about similar legislation she wants to get through reconciliation when it comes to lowering pharmaceutical companies. this administration is not just encouraging it, they're laying out very poignantly what these
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agencies can do to start fixing where they say there is not enough competition. jonathan: the score sunday? annmarie: i don't know what the score will be but i hope rome brings it home. jonathan: a lot of people reaching out about the score on the bloomberg terminal. "the nonstop play and still exhibited by top soccer players of publicist the timeout in an average nfl game." i heard a great line on the nfl. if they had the same time format as soccer, you would have a very different physical appearance of football players because of the endurance that would be required. the game would be more intense and far more interesting. tom: i sat on the couch does joe ago with denmark and i said to misses jean -- -- sat on the
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couch two days ago with denmark and said the nfl would be so much better with the clock. jonathan: to have that kind of endurance through 90 minutes with only one break? tom: i was on the back end. you played offense and defense. there was a lot more. i have immense respect for the clock of soccer. let's get to it. they still seem to make a little bit of money around it. it is the most interesting friday. none of us were prepared for how fascinating this is. the vix in nicely. the dow futures just barely below their high of july 6. we want to drive forward the conversation of the washington response to this historic -- this extraordinary document by the biden administration. terry haines is a student of
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washington and all the white marble buildings. who will be most affected by this document? republicans or democrats? terry: affected politically? i think what bided is doing politically is trying to shore up the left flank. he is giving progressives a lot of things they want. for markets i would say two things. bided is getting a lot of good government why not things. drug pricing, but this is a long-term wet blanket on merger and consolidation activity, which as you know is a very large driver of the u.s. economy, and it is something common to use george will's great definition of american football, committee beatings punctuated by violence -- committee meetings punctuated by
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violence, you have these meetings with regulators and then they will do things. the market impact is mitigated by the fact the regulators have given a roadmap by what they intend to do. you can at least defend against it. tom: i will go early three dog night and go back to 1970 and do this on the 50th anniversary of crosby stills nash and young stage of the. let's go back to 1970 and the book all of us had to read. you had to carry around campus. the future shock of all of this was too much change in too short of time. is this too much change for moderate democrats to see a liberal manifesto? terry: there is a lot of pressure in the democratic party right now. i've been preaching four factions in washington, not two
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political parties. the tectonic plates are rubbing up a lot of ways. what this does for joe biden's buys him political goodwill with progressives and takes a lot of pressure off the centrists. they can all point to the regulatory agencies, which congress created and by and large exercised congressional power, and they are investigating, we can deal with this. in some sense it is normalizing the calls around changes in big tech and other things. you see the pace of a lot of this stuff for markets becoming more deliberate and therefore easier to defend against. jonathan: in terms of this order, this is an executive order. is there some substance you think republicans might be able to go along with, particular on the competition? terry: on the competition stuff, i think not.
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what is underappreciated is everybody in washington wants to criticize big tech. nobody agrees on the what are the how or the why. republicans do not care about the size of these companies. they are concerned about censorship and being able to make sure points of view are put together. the principal criticism from democrats, particulate progressives, has to do with the size of the companies and not so much with the sorts of things they are putting out in the censorship they are engaging in. there is no commonality behind a lot of this stuff. i always find this idea that big tech is under the gun to be overblown. it is their turn in the barrel, but that is different than assuming there is some sort of large imminent action that will happen. even if it comes from the regulatory agencies it will be litigated. it is more like that 70 show is
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entirely apropos. it is more like the at&t consent degree and large regulatory matters that happened in the 1970's that it is anything quick and decisive. jonathan: for people watching the program and listing, some of the names in big tech, it might be bad and it might be good if they get broken up, but you think the regulatory pushes no real substance, no heat? terry: i think they intend a substantive push. do i think there's anything the short to medium-term that ought to concern investors? i don't. it is headline risk and nothing else. romaine: there is also an idea that some elements of this could actually benefit workers, some elements that will not receive as much pushback that some of the competition issues themselves, meeting the headline consolidation issues.
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with regards to some of the issues, some of the right to work issues, do you think there is the potential that could make it through relatively intact? terry: i do. there is an awful lot. i'm glad you came back to that. there is an awful lot of good government things here. you bring some of them up. things that will be broadly popular with voters and get bipartisan support. airline refunds, drug pricing generics are two things that come to mind. the markets completely underestimate the likelihood of drug pricing reforms this fall. i have it now up to 70% likely. there is a big push from congressional democrats and bided would sign it if it came to him in a spending bill. that stuff is hugely popular
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among republicans and democratic voters alike. a lot of this stuff is heat, appropriately if you're the white house, to make sure you get credit for what the regulars do, that is fair enough because he appointed the regulators. it has a political benefit for him and up local benefit for congress and i think some of that government stuff happens, sure. jonathan: terry haines on the executive order from the white house this morning. ongoing dialogue with our audience this morning on my football, you call soccer. "the single most difficult thing to accomplish in sports is hitting a small round object traveling 95 miles an hour it hitting it 380 plus with a wooden bat, not kicking a ball the size of a watermelon." some of the feedback i'm getting. is that hate mail? tom: that is hate mail.
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everyone should sit once behind home plate directly and watch the ball movement. you do not see it on tv. it is frightening. 95 miles an hour plus. on radio i moving my hands around. you know what i'm talking about. the ball movement is stunning. jonathan: also something that surprises you when you get at that level. the arm on some of those players. that throw from third base, from right through -- from right field to third base, watching aaron judge do that, it is phenomenal. tom: to do that at comiskey park in the depths of right field is something. romaine: really something. is there a soccer chat i am not a part of. jonathan: just incoming messages from the viewers on the bloomberg. tom: romaine, can you get
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caroline hyde to step it up in the afternoon on english football? jonathan: i do not think that is what romaine wants. romaine bostick coming up later on the close with caroline hyde and taylor riggs will on monday we will catch up with lisa. mohammed will be joining me along with a whole host of guests come and on to really yield later this afternoon. jonathan: anything -- tom: anything after really yield question mark jonathan: i will be going home after and having a nice weekend. this is bloomberg. ♪ ritika: with the first word news, i'm ritika gupta. president biden is sending an executive order that will lead to new regulations on everything from airline luggage fees to noncompete clauses. it is designed to promote competition across american industries. regulators are being called on
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to promote scrutiny in drug prices and much more. president biden's team is concerned time is running out to revise the iran nuclear deal donald trump has abandoned. there been six rounds of negotiations in vienna and little sign of when a seventh might start. the talks are compounded by iran's technological advances in the election of a new hard-line president. the central bank has cut the amount of cash it must hold in reserve. the people's bank of china cut the ratio by one half of 1% for most banks. that should free up millions of dollars into the economy. cash is still ok. -- cash is still king. -- that disappointed cryptocurrency plans. they hoped the buyer would take up the offer to pay in bitcoin. global news 24 hours a day, on
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air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. i am ritika gupta. this is bloomberg. ♪
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>> i am quite confident. a lot of work has been put into these negotiations there was a
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major breakthrough with the new administration on the others of the atlantic. i'm confident we will have a deal that sets the basis for appropriate legislation throughout the world. tom: the discussions at the meeting in venice, italy. a spirited meeting, very important for europe as well on taxation and such. we need to get an update. romaine bostick in for lisa abramowicz. i'm tom keene. jonathan ferro getting ready to drive the market forward. joining us from the depths of eastern venice, maria tadeo joins us. what is so important to understand is you go down past the acclaimed restaurant and you go along the canal at the water, and you get over come in just a little bit further, is harry's bar. maria tadeo will get there
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today. within the celebration, what is actually getting accomplished at this meeting? maria: on the one hand, it is an interesting question because a lot of the ministers are very positive there will be a deal on taxation. they say there is nothing short of a tax revolution we are seeing. you see behind the scenes, ministers tell you there are a lot of issues pending. one is the 15%. we know for the irish a minimum corporate tax at that rate is very problematic. the french say they want to take it even higher. for the americans the fact the european union is going ahead at their own digital tax is problematic. all of this is happening in the context of coronavirus. this new wave taking hold in europe. a lot of smiles as well as pictures happening because it is a beautiful day in venice. behind the scenes there's still
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a lot happening that needs to be resolved. tom: are secretary yellen enter troop visible, or are they down at harry's bar? maria: we saw her with a big delegation crossing the river on the boat. we have not seen her on site. we did see christine lagarde taking a walk. we have not heard from her or seen from her yet. tom: on radio, the boat in the background. romaine? romaine: a very tough assignment for maria. another one there. maria: i took one for the team. romaine: we know taxation a big topic of discussion. trade policy also has to be a big topic of discussion. the idea of keeping these borders open and keeping the
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wheels of the supply chain, the global supply chain greased. that has to be a concern that is on the table. maria: certainly. the americans in particular will want to show this is the end of politics by tweet and the united states is very much at the table with this. on that note, i have to stress the european union is putting forward a digital levy, they are also putting forward a carbon tax, and there is concern this will be difficult for the u.s. congress to approve. a lot of these companies are based in the u.s. this is still very much playing in the background. i do have to say they want to stress this is a very different mood now that president trump is no longer in the white house. romaine: that raises a big point.
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how much can investors and the public expect these agreements to hold? maria: we will have to wait and see. when you look at the corporate tax, what critics will tell you is companies always find a way to reduce their tax bill. 15% for the europeans is not that much. many of the european countries pay more than that. what you see will be the shifting where you no longer going to low tax, but you're able to pay and the country where you make your services. that is the key for europe. not the tax rate, but the fact they will finally be taxed according to the nation. tom: after you are at harry's bar you will go to all of that. is venice back? is your observation venice is up
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and running with summer tourism or not? maria: that is an excellent question. i did go, i did not go inside. here in venice they are all americans and that was to me quite striking. usually you get germans from you get french, you get a lot of europeans in venice. yesterday was purely americans. i would say half of the normal business you see. no chinese tourist. that is a huge hit for a city like venice. tom: it is. i have witnessed that myself. maria tadeo, thank you so much. reporting from venice. let's set up the market. a most eventful week next week. what will you focus on this afternoon? romaine: it is look ahead to next week. you get the big bank earnings, if you earnings out of the health care companies. jay powell along the hill for two days.
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there'll be a lot of focus on monetary policy. a couple treasury options on monday. on top of that another read on inflation data as well as retail sales. investors will have a lot to chew over and make a determination over the so-called growth scare we got this week, whether that is something you need to be worried about. tom: mohamed el-erian will be with jon ferro in the next hour. i'm not sure which property, but dr. mohamed el-erian, watching maria in venice, dazzled by the need for "surveillance" to go to venice and a remote. he says he will show up. romaine: i was jealous of that shot, and here we are stuck in the studio. next time i cohost with you it has to be on vacation. tom: it could be monday. we do not know if lisa will be back. these conference calls will be never more scrutinized than they
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will now. romaine: everyone wants to hear the commentary. the numbers matter, but at the end of the day it is about the sentiment we hear out of the ceos come out of these cfos about the businesses going forward, about how customers are interacting, clients are interacting, and the overall tone about the trajectory of this economy. tom: it will be most interesting. a special program note. we will have mr. bezos from sun valley in idaho out to his efforts to the edges of space. richard branson will as well. they are doing and alan shepard. we can go back to mercury, before jon klein come at the time -- before jon glenn, to get to the edge of space. look for that sunday as virgin galactic launches at 9:00 a.m.
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i believe at 3:00 new york time there'll will be a football, soccer game. romaine bostick may tune in. we are not sure. stay with us on radio and television. ♪
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jonathan: from new york city, for our audience worldwide, good morning. equity futures positive .4%. this time yields are higher.
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"the countdown to the open" starts right now. >> everything you need to get set for the start of u.s. trading. this is "bloomberg: the open" with jonathan ferro. ♪ jonathan: from new york, we begin with the big issue. what is going on? >> you had a correction encyclical equities. >> cyclical parts of the u.s. economy slowing. >> 40 basis point move lower is no joke. >> the bond market is leaving me scratch my head. >> we are at the half and it is one all. >> yields backed up too far too fast. >> the central


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