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

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♪ guy: friday the ninth. 30 minutes to the close, this is what you need to know out of europe. the u.k. economy faltering in may as the destruction of manufacturing stalled on supply bottlenecks. hospitality and leisure bouncing back as society reopens. volkswagen shares jump as the complete forecasts first tap -- first half operating profits is nearly 11 billion euros. our woman got a -- they are warning that a lack of chips will cause problems over the next year. european leaders say internal divisions over minimum corporate tax rates will not derail a deal at the g20. we will take you to venice this hour. let's talk about where we are with the markets. most european equities are in the negative for the week.
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the rally wishes -- back up towards the top end of its recent range over the last month. we are at -- -- taylor: an all-cash deal for
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about $6.6 billion. that is one of the key movers on the day. a 64% gainer on the day. guy: let's talk about the news parents have been waiting for, a move taking place in the u.k. as well. the cdc out with new guidance when it comes to schools, telling schools to track local cases as they start to reopen. basically issuing new, virus guidelines. this is k-12, and basically suggesting that a step-by-step approach on easing safeguards is necessary, should be applied. masks, distancing's can reflect local editions -- local conditions for schools and how they operate. it is a debate similar to the one over here. up until now, if you had one child, the whole bubble would burst get everybody would go home. the government starting to alter that guidance, taking a more
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romantic -- more pragmatic testing driven approach. taylor: some other headlines that are crossing. in the meantime, let's look at the move in the world's second-biggest economy that could have ripple effect. we heard that china's central bank cut the amount of cash most banks must hold in reserve. they went further than many economists suggested and may suggest concerns about the economic recovery. let's discuss it with damian sassower of bloomberg intelligence. is this to try to get ahead of what the chinese government is looking at, which may be a bit of a slowing economy? damian: i do think so. if you look at the inflation data, the gap between the producer price index and the cpi in china is 800 basis points wide, so that is a prophet squeeze for chinese corporate -- a profit squeeze for chinese corporate's. this is clearly bullish for chinese government bonds. by way of reference, chinese
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government bonds, yuans in nominated bonds, is the only group that is positive your to date. many people referring to them as the jgb's for millennials, and i don't disagree with that in the least. guy: we've anticipated that this was going to happen, but it has come sooner and it is bigger than many people thought that we would see out of the chinese authorities from the pboc. the chinese economy has been out in front, recovering earlier than other major economies. now they are having to step in and take remedial action. are we seeing something that is going to be replicated elsewhere , the rate of change in terms of the slowdown we are seeing? will authorities elsewhere need to step in? and are the chinese authorities seeing something that everybody else isn't seeing right now? damian: that is just an awesome question. i think the global economy and many of the emerging markets which i cover need to take note of this action because perhaps
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removing stimulus may not be as forthcoming as markets currently anticipate and markets are currently pricing in. we have seen rate hikes implicitly was ill, mexico, russia, turkey, and perhaps the markets got a bit ahead of themselves. we are definitely at the front end of many others cur -- many of those curves. we may not see tapering as quickly as the data suggests. taylor: tired back with what we are seeing not only in yields, but also ppi. some of the inflationary numbers with a higher inflationary number in china, are they exporting some of that inflation to the world? or does it look less inflationary than maybe we would've thought? damian: that is a great question also. the mechanism for which chinese export inflation or deflation is a supply of the labor force, many people believe the labor force is now at full capacity. obviously there's the pandemic, but nevertheless, it is wage prices.
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in china, they are growing. they are going up. so you're right, are we going to see those inflationary pressures be explored abroad -- the exploited abroad? we are seeing that in commodity prices and what have you, but it has yet to take hold in the u.s. and other developed markets. i hate the t word, but that is the word everyone likes to use. i think the chinese markets are entering a more stable stage and it will require shrewd policy management to navigate some of these risks. the pboc seems willing to step up with a bit of a surprise today, but the economy is definitely humming along. we are going to revise upward our growth forecast for the third and fourth quarters. we have full year gdp growth in china at 9.1%. i imagine that is going to go up as well. guy: always a pleasure. thank you very much, indeed. bloomberg's damian sassower. let's continue the conversation. andrew pease joining us now to give his take from russell
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investments, the head of global investment strategy. i guess the question is a kind of big picture when here. i am seeing the chinese having to step into provide stimulus for their economy. the chinese economy was well ahead of everybody else. i am trying to understand the pace at which this cycle is operating. as the chinese step in, can i assume that the u.s. economy or the european economy may need similar stimulus to keep the growth trajectory on track in six months, nine months, 12 months' time? andrew: it is a complex question. the point you make is right, china was first into covid, first out of covid. it was first to start taking back the measures. what we are seeing now is a bit of a correction because one of the things that has been concerning is the credit growth, which tends to lead chinese growth i five to six months.
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what they have done with the rrr is an important indicator that maybe we are starting to see that growth come through, which is important for next year. they were talking about the issues for forecasts for china. next year's growth forecasts are arguably more important. the consensus is looking for a tip in gdp growth. we have seen sub 5% gdp growth in china, and that would have a lot of implications for asset prices in economies around the world. i think we are seeing stabilization. i'm confident we will get that 5.5% to 6% growth number. in terms of what it means for the other economies, they continue on as is. the risk for europe is that if china continues to weaken, china has been such a big growth engine for the world, and europe, relative to the united states, much more exposed to the global economy and having an export sector. there's also a risk that if china continues to weaken, that could dampen the outlook.
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i think the news we had this week is quite significant in terms of seeing where i was makers in china are going. taylor: for a lot of analysts lashawn e.m. given those high growth rates -- analysts bullish on e.m. within those -- e.m. given those high growth rates you mentioned. are we seeing a crackdown and regulatory measures among those? andrew: there's regulation coming on the tech sector, and the financial sector. the difficulty of being bullish on china is it is heavily tech represented. a lot of the broader outlook comes down to how does the vaccine rollout progress, and so far the evidence is that we are seeing an accelerated vaccine rollout across a lot of the
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economies, so that is good news. the other thing is what is happening with the u.s. dollar. part of the reason we have seen this tightening and financial conditions across a lot of the other economy through the past quarter has been because of that rise in the u.s. dollar. the u.s. dollar resumes that downward track which thing it will if the chinese press story takes it away. that will take a lot of the pressure off of the economies. guy: i want to think about what has happened this week in terms of the move we have seen in yields, lower both in europe and the united states. kind of relate it back to what we are seeing in china. as you say, they tightened credit. they are having to course correct because of that tightening that they have delivered. you are starting to see a settler thing with the fed. you can see what it has done in the credit market. and again, i am wondering what you make of the price action this week that we have seen, and whether or not that is a reflection that the market for
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that the fed is in danger of making a policy mistake. andrew: my take is the market is overanalyzing where the fed is right now and what happened with the dot plots. we had a very big initial recovery out of the rock downs, but now we are seeing growth decelerate across my three major economies, but still very strongly above trend pace, and that is quite complex for markets to deal with. the surprise for the dot plots was six or seven basis points move more hawkish, but nothing that has come out of any of the comments made by james howell. much more hawkish over the past few months. the fed i think is still on the slow trek. the market has been a bit over analyzed, and i think we are still probably at least 18
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months to two years away from the state actually doing anything meaningful on monetary policy, like hatchery -- like actually raising interest rates. . taylor: thank you so much. you write to where we are going next as we get headlines from the federal reserve, this coming from the sinew a mental -- the semiannual report. we heard all this report, pretty backward looking. that is a pretty balanced testimony to congress that week. congress saying the upside has aided in some of the strong economic progress. so those are going to be headlines that we continue to follow as we just heard at least from the market, figuring out how to price in where the fed is moving and where the fed is going next. up next, we are going to take a look at how rising infection rates could put the recovery at risk. we have a chief u.k. economist
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at our place joining us next -- at barclays joining us next. this is bloomberg. ♪
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♪ guy: some signs may be that the u.k. economy is starting to stall out little bit. a huge miss on today's gdp number, and maybe we are starting to see actually 21 gdp growth expectations eking out. 6.715% is the survey we are looking at. what you've got here today was a service sector, a leisure and hospitality sector the came roaring back, but actually, the construction sector, maybe a
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little bit of capacity constraints starting to stall a little bit. not everybody was impressed with today's number. in fact, virtually nobody was impressed with today's number. this is what the bank of england governor andrew belly had to say -- andrew bailey had to say. >> growth in the u.k. was lower than any preceding period and lower than desirable. guy: he's talking there about productivity, not necessarily the gdp number. an important distinction. but nevertheless, a disappointing dataset from the u.k.. predictable? apparently not. a lot of economists were expecting's family more. breece -- fabrice montagne, chief u.k. economist at barclays, joining us now. why did we get so little delivered? fabrice: to be fared, we got so much more out of previous months. we surprised to the upside.
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now we've got the flip side of a quick and punchy recovery. we are in uncharted territory. we clearly don't know how to forecast the recovery. every new data point we learn something, and today there is a lack of underlying momentum for all of the sectors that are close to normal pre-pandemic levels and pre-pandemic trends, and this growth is driven by those sectors reopening. if you take out the contributions of restaurants and food services, take away the contribution of entertainment, there's nothing left, and all the various movements you see in the rest of the economy are related to the weather for, as you put it, to the supply chain disruptions. the six to percent of cars that weren't produced in may -- if
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the 60% of cars that weren't produced and they were produced, we still would have missed the expected growth in the month of may. so it is a soft number, but the way we took it, we have revised lower our expectations for q2, but we revised up a little bit q3 because we still believe the recovery is happening. it just might be a bit more gradual. guy: that's the point, isn't it? is the sluggish growth now ultimately going to mean that the recovery goes on for longer? a lot of people are talking about the fact that this economic cycle is happening at break neck speed. do we need to revise that? as growth is maybe tamped down a little bit, it is going to become more sustainable. fabrice: sustainable, yes because it is more normal in the sense of pre-pandemic. we didn't have any shortage of sustainable growth that we had pre-pandemic area but it is so much more complicated.
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we see so much more offsetting factors as people normalize their behavior. [indiscernible] -- at the expense of retail food. we have seen those offsetting factors more and more in the economy as we get closer to normal. one point on labor markets, just to highlight that there is still economic scarring in the economy. we still have 1.15% not in the workforce. [indiscernible] -- at least not for the lower yield workers. we have data that tells you it is more complicated today than pre-pandemic to find a new job. these are all indicators that tell you that it might still be doable to recover to 1%, 2%, 3%,
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but will be in cuddly hard to close this gap, and that is economic scarring, and that is what will take a number of years. taylor: here in the u.s., we repeatedly heard don't worry about debt and deficits during the wartime, but once the war on the pandemic is over, you have to start to think about how all of the stimulus programs and the rising debts and deficits eventually will start to weigh on growth. with your u.k., how are you thinking about the headwinds and some of the weight on future growth with rising deficit? fabrice: to be honest, we are not thinking too much about that because let's talk about climate change transitions. that's another decade of public spending that is ahead of us, so we will need a lot of public financing moving ahead. i think that has more to do with the idea that even if rates stop
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increasing, they would still peek at a lower level than they did a decade ago. that has more to do with this kind of recent thing than outright sustainability issues. guy: some are suggesting we may get the bank of england hiking next year. after today, how credible is that? fabrice: the interesting thing about market expectations is that you have hi-fi before the end of -- you have half a hike for the end of next year. that is usually not what we call a hiking cycle. it is most likely an average between the cycle, and another cycle will have some, possibly not at all, or much later.
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in your camp we are clearly on the more hawkish side. we think the number today clearly gives more time for central banks to assess the situation, and clearly the u.k. is not in a hurry to send any signal. taylor: fabrice montagne of barclays, we really appreciate your time and your comments. this is bloomberg. ♪
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♪ ritika: it is time for the bloomberg business flash. i'm ritika gupta. eyewear brand warby parker is betting its future on hundreds more stores. that is quite a turn for a company that last decade ignited a boom in digital brands. warby parker has 140 stores now
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and plans to a pu -- plans to open another 130 before the end of the year. in london, the number of job openings in the finance industry almost tripled last month from a year ago. the recruitment firm morgan mckinley said they were morty 300 job firms available at the end of june. the uk's upcoming exit from covid restrictions is stoking optimism about the economy. that is your latest business flash. guy: thank you very much. the numbers have been picking up. i guess a lot of firms haven't been posting jobs simply because they haven't been bringing people back. they don't know what the clarity looks like in terms of the way it is going to develop. now that people are allowed back into the office, the jobs are starting to pour in. it will be interesting to see how many are filled and how many of those jobs are going to be in person, and how many of them are going to be flexible, how would he people want to take one and
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have any people want to take the other. taylor: i thought in a post-brexit world, there were no jobs in the finance industry in london. this goes against everything i was told, guy. guy: significant numbers of jobs have moved, but not as many as people thought would've happened. so jobs have certainly moved. jp morgan, for instance, moving its trading operations to paris. jobs have gone to frankfurt, dublin, amsterdam. but london is still the preeminent financial center in europe. there are still plenty of financial jobs here. we see the numbers starting to pick up. taylor: are you still coming to work monday if england wins versus italy? guy: there's rumors of bank holidays. fingers crossed. the close is next. this is bloomberg. ♪
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guy: we are wrapping up the
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session, we are wrapping up the week in europe. let's talk about where we are and where we have been. it has been a fascinating few days. today bond yields backing up, cyclicals getting back into gear. that has been the narrative. i will so you -- i will show you some stocks on the move. we are getting back up to the top of the recent range come up 1.20%. you are seeing is off in bond, a bid back into equities. -- you are seeing a selloff in bonds, a bid back and equities. this chart gives you context of how big of a week it has been or not. the range for the stoxx 600 has been circle 450, up to 460. yes we have seen gyrations, we have seen volatility, but we have not broken out of what has been a contained sideways pattern. 450 to 460 for the stoxx 600. we are back near the top end of
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that range. we did break out significantly towards the bottom end of the range. below 450 once again. we are not breaking out. this week it felt like a lot of sound and fury but in reality, when we look at the price action, we have gone nowhere. let's take a look at what is happening with the grr in terms of how we are wrapping up the rotation we are getting. real estate coming out on top. it is fascinating to see what is happening. we have an eclectic mix at the top end of the market. real estate climbing. the miners are back. chemicals coming back, basf having a solid day on the back of its numbers. it has upgraded its forecast. german cyclical doing well. the energy sector, the car sector is where we are seeing the weakness. this is over the last five days. the session today may be a
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little bit more instructive as to what is happening. let's talk a little bit about -- let me go back. i want to talk about the ftse, the dax, and the cac 40. underperformance coming through the ftse. oil is on the downside, miners on the upside. lvmh and airbus driving. airbus up 3.34%. strong delivery numbers out of toulouse. we are expecting them to be strong. you hand over airplanes, you get money back, they need to keep that going. the numbers look solid. we get boeing next week. basf, the headquarters of the german chemical giant, just upgraded the numbers. a german cyclical, talking about a solid story. expectations it get better from here.
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volkswagen is trading up 6.2% today. the reason, they always come out and surprise us with the prerelease. the numbers strong. there are warnings about the second half what is happening with the chip story. guy: let's do -- taylor: let's do more on that story with bloomberg's chris robot who joins us from frankfurt. you have to say want chip shortage? look at the prophets. chris: there have been a lot of concerns about the industry. when you look at the results from yesterday and volkswagen today, you wonder to some extent, what crisis? i think what has to be taken into account is the timing has shifted. both slant does and volkswagen worn it still could become an issue and way on earnings the second half of the year. we will watch that space.
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guy: these are strong numbers come at the market reflecting surprise on the upside. stocks trading up over 6%. volkswagen is having a strong year. we have seen a huge uptick in the beginning of the year when we have the volkswagen sacco that came out. -- the volkswagen saga that came out, highlighting what tesla has done. now we see the evidence of that. the numbers are coming through strongly. is this sustainable? is this something volkswagen can continue to do, drive the profitability, drive the cash flow through the energy transition? >> i think investors will get critical updates next week to see if volkswagen can continue this performance. on tuesday volkswagen will unveil their new strategy through 2030, which will focus on electric cars and software
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and all of these factors, and only a date later the european commission is going to introduce their emission regulation targets, which will determine how many combustion engine cars you can sell on volkswagen's home turf. at the moment it is difficult to say how long and how resilient volkswagen's earnings are. for the time being, especially when you look at the cash flow, that is a pretty extraordinary number with $10 billion in the first half of the year. that is something very few industrial companies can generate. taylor: we are getting the proposal from the eu paper showing it could cut our emissions as we seek to end the era of combustion engines. where is vw placed relative to its global peers to capitalize on that shift? chris: among the traditional car
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manufacturers they are one of the front runners. they have been very early among the traditional manufacturers to start the switch to electric engines. at this point the diesel emissions scandal that erupted in 2015 provided a catalyst. only a year later they started developing their own dedicated electric car platform. now they've launched the first two cars based on the platform. this year these electric cars are going global in europe, in china. next year in north america. in terms of comparison across the industry, volkswagen and gm are among the front runners among the traditional manufacturers. guy: how does it break down with the individual brands? that is something a lot of people are starting to pay attention to. porsche going fully electric. other parts of the business, how even is this going to be across all the platforms?
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chris: that is a very legitimate question. so far the premium and the luxury car brands have been the main profit drivers. porsche accounted for 50% of operating profit at volkswagen last year. that is pretty extraordinary considering they do not sell very many cars. at the same time, the core volkswagen passenger car brand has been struggling for some time with high cost. it will be critical for them they streamline the mass-market car business and do not risk relying on the premium car brands, audi and porsche. taylor: i am sitting here in new york. there's been so much of a focus, we received orders from the biden administration looking at beefing up our chip supply, beefing up our boundaries that were relying on places like taiwan.
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china gets in the way, taiwan semiconductor over there. there has been a focus on nationalism with chips. bringing it back to bw, how are you thinking about reducing the global supply chain, making sure we do not face chip shortages in the future if there is a disruption in the global supply chain? chris: there is definitely going to be a certain degree of rebalancing the supply chain. at the same time, this is lest cost efficient than saying you produced technology in places and ship it where it is needed. the pandemic had exposed the vulnerability of the system, and volkswagen and other manufacturers will definitely try to do more local procurement. for example, the batteries into electric cars, this is not something you want to ship across the globe.
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that will definitely be part of the industry transition. the supply chain will change big-time. guy: always a pleasure. thanks for the analysis. chris rauwald joining us on the bw numbers. we are wrapping up the week, wrapping up the session in europe. higher during the auction. final numbers in europe. the ftse 100 up 1.3, the dax up 1.73. good performance from vw today and good performance on basf. the cac 40 outperforming. heavyweights like lvmh coming back strongly. airbus coming back strongly. driving that market sharply higher. the bond market, yields backing up, that certainly helps. taylor: certainly helping within the u.s. we are at session highs as well. we will go to the g20 finance ministers conference in venice. we have an exclusive interview
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with mexico's finance interview -- finance minister next. this is bloomberg. ♪
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ritika: this is "the european close" coming up, the visa cfo joints at 5:00 new york, 10:00 p.m. in london. this is bloomberg. it is time to the bloomberg business flash. bloomberg has learned chinese aviation officials are open to conducting test flights on boeing 737 max. that would be a step towards lifting the plane's grounding after more than two years. even if a test flight is main suit it could be months before the 737 max man is removed. -- band is removed -- ban is
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removed. earlier this week, mercedes parent daimler warned sales would be further curtailed by the global chip shortage. a number of people on twitter are threatening to boycott china because they are unhappy about a video the dutch posted on social media showing a group of senior citizens dancing in a club and ending with the message the night longs to the vaccinated. some call the video propaganda. heineken says the ad is all about supporting bars and restaurants. that is latest business flash. guy? guy: they look like they're having fun. g20 finance ministers are sounding confident they can reach an agreement on a global been among corporate tax. bloomberg's maria tadeo is in venice into standing by with
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another great interview. maria? maria: let's go straight with our guest, the mexican finance minister arturo herrera. good morning. min. herrera: good morning in mexico, good afternoon in venice. maria: we are hoping to get this deal on the range but also being able to tax companies in places where they make their money. how confident are you we get the deal? min. herrera: very confident. last year and the previous year we also -- we almost reach an agreement. we have 19 out of the 20. the whole that was the u.s. -- the holdout was the u.s.. the u.s. has become one of the leaders. maria: you mentioned there's
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been a change in the u.s. administration. for mexico that is very important. min. herrera: it is actually working pretty well, both in terms of the new administration but also in a practical sense. it was in the middle of the pandemic and the economic crisis. of been able to recover all of the jobs lost in the pandemic. the border with texas, and baja california which borders with california will pull out activity in the u.s.. min. herrera: they are beautiful places. you mentioned the economy. we are now recovering from this pandemic. there is a big conversation as to whether or not the variants will be a problem. exit co. is a big -- mexico is a big country. how much you worry about the
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variants? min. herrera: we are pretty confident we are doing the right kind of job. we took a risk management approach, many different contracts. to give you a brief idea of the numbers, we have under contract close to 364 million vaccines which are the equivalent to 143 million treatments and we only have 126 million mexicans. older than 12, only 92 million. maria: the other big aspect of mexico is inflation. we have seen an uptick in reflation in mexico -- in inflation and mexico. mnst. herrera: something we need to monitor. there is a huge debate if the inflation we are seeing is
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temporary or if it is structural. most of the data we have points to temporary. we have climate related issues, so we have a reduction in the production of corn, which is a big issue in mexico. then we have some uptick, very interesting and mexico because there pandemic related. the price of laptops, of teepees, even for goods -- of tv's, even for goods and materials, we assume as the vaccine rollout keeps moving and people are going back to school and work they will need less of these goods and the prices will go down. maria: you expect rises to come down? mnst. herrera: other prices will go up. airline tickets, restaurants -- these activities are more
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contact intensive they have not been able to perform. once the pandemic starts going further down these will go back up. maria: the currency -- that does have a impact on the currency. where you see the mexican peso going? mnst. herrera: it looks in the right direction. we had five pesos per dollar in february last year when the pandemic hit. that is very strong risk aversion behavior by the markets. in just five weeks it moved from 18.45 to 25.3. everybody starts learning how to deal with the pandemic, including the market, the pace of starts going down. now it is less than 20 pesos per dollar. maria: you expect that trend to continue? mnst. herrera: we hope it will be stabilizing around that level. maria: there was a huge fire a
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few days ago. i wonder if you have heard anything from the company in terms of what happened? you said you want to help them keep down the borrowing cost. i wonder if that means issuance of bonds or anything of the sort? mnst. herrera: what we are doing with respect to the companies, we would like to make a broad analysis. if we look at measures [indiscernible] it is really between shell and chevron. among their comparable peers. the numbers deteriorated, and debt services are the starting period. [indiscernible] two problems, overtaxed, and overlap like. we are working on that -- and over leveling. maria: a big corporate story in
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mexico. minister, thank you for joining us. arturo herrera joining us from mexico. taylor: bloomberg's maria tadeo, thank you for bringing us this great interviews. we are not done yet. what are you doing this weekend? watch football, watch soccer? i am watching richard branson. he is going to space. more on the space race, next. this is bloomberg. ♪
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guy: this weekend i will be watching football. richard branson has other ideas. on sunday a flight that is basically 17 years in the making. it will carry the billionaire and a full crew from new mexico to the edge of space.
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the risks he is taking, the history in the making, matthew bloxham who covers all things technology in space. how big of a risk is richard branson taking? matthew: some risk, but he is used to that. 17 years of technology development, they have done a number of test flights recently. they have approval to take commercial passengers. at this point it is a tale risk. it is not zero risk. going to space is still a dangerous endeavor. taylor: are we still assuming this was not to get ahead of mr. bezos's flight happening a few weeks later? matthew: absolutely. richard branson is the master promoting his own company. there's a lot riding on this in the future virgin galactic.
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the stock is worth $12 million. they have lots of customers who paid hundreds of thousands of dollars a long time ago still waiting to get up there. he still wants to get up there. guy: he is very good at pushing the brand. he has had all kinds of schemes over the years in terms of balloons and boats and everything else. in terms of the impact, if this goes well, how bit of a -- how big of a springboard is it? matthew: it is a big one if it goes badly that is real trouble. if it goes well it is a real spring pad for them to open up bookings again and get their current customers happy they will see flights soon and start taking more money and more deposits. it will help to fund the continued development and cushion the cash burn they will still have over the next couple of years. an important flight in terms of the future of the business. taylor: matthew bloxham of
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bloomberg intelligence. come on. tune into bloomberg sunday at 9:00 a.m.. forget soccer, forget football. we have coverage of richard branson's flight to space. happened sunday at 9:00 a.m. if you follow soccer football i will let you know what happened. coming up, jacob kierkegaard joins balance of power with david westin on bloomberg tv and radio. guy: i will still be watching the football. the cable show taking to the air at the top of the hour on dab digital radio. taylor, thanks for being with me this week. greatly appreciated. from taylor and from me, this is bloomberg. ♪
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>> from the world of politics -- >> how do we find ways to build more housing in this country? >> to the world of business --
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>> it is climate, it is recovery for emerging markets, and crucially, the global minimum tax. >> this is "balance of power" with david westin. ♪ david: from bloomberg's world headquarters in new york to our tv and radio audiences worldwide, welcome to "balance of power." we start with a check on the markets. joining us is kriti gupta. it looks like the markets are saying let's go back from where we went. kriti: absolutely. saying it did go too far. we are reversing the trait. you see it in the stock market. the real selloff that was so brought yesterday, massive risk off move into treasuries, regardless of whether you are a tax a pavement or a volatile energy stock, they did not want in. today it is the opposite. tech is underperforming.

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