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tv   Bloomberg Markets European Open  Bloomberg  July 21, 2021 2:00am-4:00am EDT

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anna: good morning. welcome to "bloomberg markets: european open." i am anna edwards in london. mark cudmore is back with us in singapore to take us through all of the market action this hour. the cash trade is less than one hour away. here are your top headlines. stocks shrug off monday's rout with the s&p 500 posting the biggest gain since march. asia and european futures track the rally higher. streaming slowdown. netflix forecasts another period
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of sluggish growth despite a second-quarter beat on subscribers. the stock recovers after an initial slump. plus a busy day for earnings in europe. we speak to the ceo's. all of that coming up just this hour. a very warm welcome to the european market open. it is later than that in singapore. mark is with us once again from singapore and he can tell us what is on his mind this morning good morning to you. mark: -- his mind this morning. good morning to you. mark: i go away for a few days and i come back and it has all gone crazy. probably my biggest take away is a slump in oil prices. the move in yields is starting to rebound but equities have gone nowhere to overall, the session in asia was quiet as people process those big three themes over the last couple of days. anna: we are under one hour away from the start of cash equity trading in europe where we have
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seen big moves over the last couple of days so let's have a look at the futures picture. during yesterday's session, we saw the tuesday rebound and we saw the european equity markets move higher. we saw u.s. equity markets move even higher and recoup substantially their losses from monday. cyclicals once again leading the way to the upside in this case during the u.s. session so we turn to the futures picture. we saw it for europe looks broadly positive and we have the u.s. futures picture looking flat to positive. the reaction -- take us through the gmm and what stands out to you after we have seen a couple of days of turmoil in equity markets and turmoil in bond markets but we seem to have been less with a much lower yield environment than we previously had. mark: absolutely right. the asia session was a all through from the u.s. session and we saw that strong rebound yesterday, very powerful, so it was a positive risk sentiment pay in asia despite the ongoing delta variant concerns but it did not have the conviction.
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it felt like a market going u.s. and europe sessions have been wild while we have been asleep in our late afternoons and evenings and we are not going to run away with us. we want to see how europe and u.s. consolidate in the session ahead. risk-on sentiment. equity markets were higher, but it was not anything to clear as a takeaway -- too clear as a takeaway. anna: still getting comfort from support of monetary policy, the extent to which we see growth ahead even if we have questions over its scale and perhaps from corporate earnings. let's get into those stories this hour. the swedish telecom giant reported second-quarter adjusted ebitda, meeting analyst expectations. the company with operations in the nordics and baltic regions says the pandemic has had a negative impact on roaming service revenues paid let's get the latest on the business with the ceo who joins us now.
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really nice to speak with you. thank you so much for joining us early on the european market open. your profit numbers, sales numbers, ebitda, better than the market was anticipating. i wonder what is the biggest uncertainty. we look at the markets overall and wonder what is clear and still uncertain. i wonder what is very uncertain for you at this point? >> we are delighted we posted our first quarter in almost five years where we return to growth on both the top and the bottom line. what we are seeing is as societies have opened up during the quarter, we have seen our customers return to stores and consumer sentiment improved and that was really evident in some of our market that had the stricter lockdowns so denmark in particular, we saw a real rebound during june and our tv business has seen a great turnaround. the advertisers are back and they have great content.
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clearly, it is the stability of that consumer sentiment. we are not yet seeing travel returning so we doubt we will see that return properly until next year if possible so for us, we need consumer sentiment to be there permanently. and we need that a course for the advertisers to come back to rtv media. a great quarter. a very strong quarter, delivering in line with our outlooks, and executing on the new strategy for the market in january. very much in line with our expectation. mark: good morning. what is your next focus in terms of monetizing your infrastructure and how will different levels of infrastructure ownership french e.a. telcos competitively in the future? allison: -- differentiate telcos competitively in the future? allison: in fact, we are seeing
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such interest in it from private investors. really excellent private investors that bring more than cash. we have done our first deal in norway and finland. great valuation. we have a great long-term partnership agreement with them. and with it being with work field, who own and operate the biggest footprint around the world, they bring real competence to help it run its infrastructure better in the future so we will certainly be looking at more transactions like that. we aim to maintain and control ownership of that. the way that i look at telcos in general, we have three different platforms of services. we have the core infrastructure that is absolutely critical for the societies that we serve and we want to keep control of those that bring in partners that value them to develop them in the future and we have our core connectivity services being
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upgraded by 5g and fiber and then we are combining those services with all of the experiences that we can bring, whether that be content for the consumer or security and services for the enterprise and that is the way that we look at our business going forward. anna: does that mean you are able to keep a control of costs? there has been a big push towards -- they are owned by tower companies. you said you want to keep control of those. does that mean you are better able to control costs? other players in the sector, there is a concern that may be costs are a little less easy to control. allison: absolutely. for us, it is striking the right partnerships that create long-term value. some crystallization of value upfront and that services agreements that bring long-term benefit to us as an operator and
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tenant going forward and then partners that really know how to operationalize and commercialize them in a smarter way than we can do on our own. it is key for us. mark: what do you see as a potential for further european consolidation in the telco space in the foreseeable future? allison: it varies by market. clearly, there are some of our markets with far too many players and that is not necessarily in the best long-term development of those markets but i think where there are more than three players in some markets, there is scope for further consolidation but i think you will see more consolidation at the infrastructure layer and at the serving of the enterprise and larger customer layer in the shorter term.
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because that is where you need scale particularly and that is sick -- by having scale on either the infrastructure that you own or scale to partner with some of the biggest players that operate in our ecosystem today, that is where scale will trigger the need for further consolidation. anna: thank you for joining us. allison kirkby. coming up on this program, we carry on with our earnings conversations. the ceo's will join us to talk about their earnings. upgrades to guidance in the case of s&p. we will talk about the world briefly losing its richest person. jeff bezos blasts off to the edge of space. do not miss his first interview after touching back down-to-earth and as the ecb starts a heated tuesday meeting, we speak to the former ecb
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president, jean-claude trichet at 8:30 london time. please send them to us. it is the function to use. this is bloomberg. ♪
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anna: welcome back to the european market open. what he five or so minutes to go until the start of cash equities trading as futures look positive. that could partly be due to the earnings story. let's get into another earnings story. the push to get more customers onto the cloud is picking up pace. europe's largest software company has slightly raised estimates for full year cloud sales and profit. it said its business travel unit has seen its first signs of recovery after being battered by the pandemic. let's get into a conversation
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with s.a.p.'s ceo, who joins us now. good morning to you. you upgraded your guidance slightly at the bottom end of that guidance appeared i wonder what kind of message of optimism you are trying to communicate with the markets. >> thanks a lot for having me. and also, good morning. we had another fantastic q2, very happy with our performance. as a result, we await our guidance for cloud and software sales for the second time this year. we pull off a new strategy. customer satisfaction is at an all-time high and customers really wanted to inform business is now more than ever with s.a.p.. mark: good morning. you are understandably looking very happy with these numbers and i'm delighted to see there has been a recovery in the expense business because that means some of us can travel again sometime soon. can you give us a little bit more detail on the outlook over the next six months on the
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travel expense business? christian: i also ccs traveling again. customers are eager to meet in person and talk about the transformation. see a slight uptick so definitely, in q1, we reached the bottom of our travel business. in q2, we see a slight recovery. for the second half of the year, we do not expect yet a full recovery back to the levels before covid but we have the market-leading solutions for the cause of the next year and we will be an accelerated growth for our travel business. anna: you are also talking about an acceleration in cloud. how much do you expect that to continue? talking about the path accelerating, is that something that is a 2020 to story -- 2022 story? christian: we have very happy. we launched in europe.
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we are moving our customers not only to the cloud but also, we take them by the hand. we know best what our customers need to build resilient supply chains, to enable the future of work. personalized sales and commerce. this will continue to do so. our pipeline looks stronger than ever. we are very confident about the year to come. mark: your share price is up about 13% year-to-date roughly but it is a similar distance from the 2020 highs, or team percent off those highs. how do you feel about the performance year-to-date and when do you think those record highs will be broken again? christian: first, for me, it is important that today, you see our earnings results that the
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strategy is working and our customers want to move. they want to have those capabilities. it was the right decision last year. you see customer satisfaction is on a record high. we will see also now even more of an acceleration on cloud revenue and it is just a matter of time until also the share price will be back to the levels we had from last october and i even see much further potential because you also see with the business model change, you see a much larger revenue share. our cloud business starts to scale and that is what investors are asking or and this is also a future strategy for s.a.p.. anna: what is the attitude of clients to spending at this point when you talk to customers? what kind of journey have they been on through the pandemic in terms of their willingness to invest in their businesses?
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christian: there is definitely a high interest. when i talked to the ceo's, a lot have had to deal with supply chain issues. just look at the shortage. this is where we can help with our software. we bring them together in a large network so we can find a manufacturer which can still deliver in times like this. take a look at our sustainability portfolio. we want to make esg transparent so our customers can become more sustainable. we are helping them with their business model shift. our software is crucial to overcome the pandemic but also to be prepared for the time after the pandemic. mark: you mentioned to chains and esg as well. these are things adding to cost price pressures. with your business insight into your client's expense management, what is your general perception on inflation and how big the threat is? christian: we see also the
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rising concerns on inflation but also, we have solutions which helped our customers to optimize cash flow, to optimize their balance sheet. despite concerns around trade sanctions, there is technology out there that can help to build much more resilient as necessary as much as we see this concern, we also see the tech for our portfolio can help to overcome this challenge. anna: thank you very much for joining us, christian klein, the s.a.p. ceo. for joining us on the european market open. let's get a bloomberg first word news update with laura wright in london. laura: covid-19 is continuing its rampage through asia with south korea and thailand reporting record infections. japan's top virus advisors has new cases in tokyo could hit a record in early august before the end of the olympics. infections are continuing to
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rise in australia despite a strict lockdown across much of the country. in the u.s., the cdc says the delta variant makes up 33% of all cases in the country, up from the beginning -- 83% of all cases in the country, up from the beginning of the month. the 1.5 million stock appreciation is worths than estimated $50 million. jamie dimon, who has been the ceo since 2005, would need to stay on for another five years in order to capture a profit. bloomberg learned the u.s. and germany are close to a deal on the gas pipeline and under the draft agreement. germany would take unspecified actions against russia if it tried to use a weapon against ukraine. if confirmed, it marks a concession from chancellor angela merkel. global news, 24 hours a day, on
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air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. mark, anna. anna: laura wright in london. coming up on this program, it is a busy day for earnings in europe. still to come, we speak to the ceo of akzonobel. that conversation after 7:30 u.k. time. we will get into the markets and our next conversation. this is bloomberg. ♪
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anna: welcome back to the european market open. 40 or so minutes to go until the start of the cash equity trading session and european equity market futures bouncing. we do see some expectation that we will go a little bit higher. you have the benefit of a little bit of distance from the last couple of days given that you
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were doing other things over the last couple of days so you are back with your thoughts on these markets and the sort of journey we have been through. it big selloff on monday and then they rebound, digging under the hood of the selloff and the rebound. what do you conclude? are you comforted that we rebounded pretty quickly? do constituent parts give you reason to caution? mark: i'm worried you think those few days away have given me extra wisdom. it is impressive how quickly equities have rebounded. if you look at what happens to markets and you look on the change in's and left last thursday, equities have not done much at all. nothing dramatic. if you look at where they slumped to on monday, or even the early hours of tuesday morning, you kind of go, that is a pretty small correction. everyone buys the dip. i think the oil price move is -- in terms of inflation and what it means for yields and yields
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are the bigger move there. this is a move that has confounded me for a while. i thought yields have fallen enough when they were 15 basis points higher so i'm a little bit confused. i expect yields to go higher a little bit this year. that is one of the dangers when you express your opinions freely on a daily basis. you will get some things wrong. one of the issues -- the biggest take away is the market has gone from last thursday, being completely complacent about all risks to being concerned and i find that sudden switch quite surprising and dramatic and it does not like to me as if the economic outlook is that negative for the second half of the year. anna: i like to hide behind my journalistic islands which served me well for 20 years. it is really good to get your views on the program with your expertise. yesterday, we spent a lot of time asking whether the bond markets have been seeing.
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the amount of bond buying, maybe it was not all about technicals. maybe it was telling us about the state of the global economy. i had a guest on yesterday specializing in the bond markets and it is very much about technicals. it is not necessarily telling us we are all doomed and the economy is heading for tragedy read what do you about these yields, down at one and percent? even if we see stocks back to where they were, we do not see yields that way. mark: as a general guide, i trust bond traders over equity traders. bond traders are more about mementos and economics, top-down rather than bottom-up, more aware of the macro scenario. when they diverge, i trust the bond market. garfield reynolds wrote an excellent piece talking about how the bond market divergence a couple of months ago was the leading indicator, saying not just for the pandemic but the trade war previously, the
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lingering costs are coming home to roost and therefore, the economic outlook is not so good. despite being all that, i am not so parish in the world economy. the second derivative is lower. it's not going to be these exuberant gains we have seen over the last year but i'm not addictively worried. we are heading towards a lower level of growth. anna: we will get further into the conversation around the virus next. i have some data to digest. mark on the team are available to you on mliv , the function on the bloomberg. coming up on this program, we are in france as the country pressure its population to get vaccinated, increasing the incentives to do so. we will talk about the vaccine passports over and france and what will that allow you to access, allow you to view? how much is this setting precedent for other jurisdictions or not?
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should it be dependent on the job? italy doing its own thing. legal backdrops will vary from one jurisdiction to another also so that is something we will bear in mind. europe tries -- this is bloomberg. ♪
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anna: welcome back to the european market open. half an hour until the start of cash equities trading. futures point tentatively to the upside. over the last few days, we have dealt a lot with the delta variant, speaking a lot about the delta variant. the spread in new jurisdictions and picking up pace in jurisdictions where it was already present and a big focus on the u.k. where we have seen another stage of the unlocking, not going as a government would have planned and we are seeing high levels of an action. what are the charts saying to you around the u.k.?
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mark: one of the most interesting things is the changed narrative of the delta variant. most of these trends that we are getting excited about are not new. we knew that case numbers have been searching for the last few weeks in the u.k.'s though -- they opened a little bit early. the u.s. has a slowing vaccination rates. we are much more worried about this whole thing globally. i wanted to bring a little bit of perspective. this is a chart of fatalities in the u.k. as a percentage of cases. there is no lag in there. it should be a slight lag but there is none in this one. it shows how high the fatalities were in february. averaging over 4%, which means they are not capturing all the cases because we don't think that the fatality rate of the disease is that high but now the seven day average has jumped up.
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the seven day average is only up to .1% so one in 1000 cases, people are currently passing away from this. every death is a tragedy. despite the fact that we are seeing cases towards the records and seeming like we are seeing a wave like christmas, this is a completely different problem for the u.k. and i think that is relevant because the u.k. is at the forefront of this. the u.s. raised it to high risk for travel again. u.k. assets have sold off and if the u.k. is not seeing a surge in fatalities to a crazy level, if this is one of the new epicenters which can cope with living with this, than many other countries that are doing well on the vaccination program have hoped but it does come down to how well countries are doing on vaccines. it is not a good sign for countries that are struggling on the vaccination program. anna: incredible test of the vaccine wall in the u.k. and if
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that chart stays, then it will be an incredible endorsement and so far it does seem to be an incredible endorsement of the rollout and the way it seems to be work. -- to work. so certainly, the u.k. case is very interesting to watch. let's step away from the delta variant and ongoing concerns about what that is doing to various populations and the global economy and get back to the earnings story. significant raw material price pressure is set to continue in the industry. europe's largest paint maker has reported earnings that beat the analyst estimates. very good to speak to you. you said this morning that significant raw material inflation is continuing. can you give us a little bit of insight into what it is you are seeing higher vices of and by how much? >> good morning. indeed, the inflation of raw materials is pretty impressed,
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to be honest. it is not only price but also availability. on the availability, some of our suppliers coming out of the covid disruption, that is starting to normalize. it was pretty hand to mouth for the last month but the inflation rate is pretty high so we see on average for the year, we expect to be in the high teens, which is pretty impressive for our business so that gives pressure for us to keep our inflationary pressures. we announce this morning that we already have prices up 4.5% across our global network that is not sufficient. we will have to do more because those pressures have been rising pretty quickly in our network. mark: that is so interesting. are there any specific areas where customers are really pushed back on those price rises going through? thierry: i don't think that
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there is any customer that embraces a by the price increase but it is pretty all-encompassing. most of the customers we talked to have seen rights increase announcements on whatever substrate they are buying and whatever services. typically, in industries, where you are customers trying to push back, this is a heated discussion in certain cases but to be honest, all of the players in the field should seeing the same rushers and depending on what their reactions are, the rise in raw materials is such that we have to act. we have been really keeping -- saying that you have to do this is not exactly -- it is not easy but i'm very proud of how the teams have reacted. making good progress but there is much more to be done in the second half of this year. anna: he wants to those prices rise and you tried to pass some
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of that on to consumers. you no doubt try and make sure you are secure in your supply chains and guarantee you have the raw materials that you need. what sex have you been taking to make sure that you have a secure supply chain? thierry: to be very honest, i will give you an example. if you look at performance coatings, it is a cocktail of many, many ingredients that go in there. if one is missing, the salt or the pepper, all of a sudden, you do not have the same out of demi moore. we have thousands of raw materials. we always have 10 to 20 force majeures. that rose to 500 and those were heavy items, base pigments, base resins, base solvents, that has subsided to maybe 40 but that is still a big disruption so what helps us to cope with that is
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basically a global network. we are a big customer for some of our suppliers so that helps to some extent also the fact that if it did not have a product or it was arriving too late to a specific site, we have the option to ship it from one of our other sites in the world. it was a big advantage we have versus the smaller players who may be only have one or two and not always in the same packing order to get the raw materials. basically, when materials came too late, it has been in many of our sites, people not being able produced during the day and having to do overtime at night so it was that close. i remember one event where we had to ship the raw material by train from china where it typically comes by boat because a boat was going to arrive four days later. stories that are pretty unheard of our industry. mark: this is interesting but i want to swivel slightly and ask what are the strategic benefits
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of the pending acquisition and what that is going to ring and how does it complement the existing poor audio of technology? thierry: you may know that akzonobel is the leading paints and coatings brand in a long time. we were almost not present i would say in the northern right of the continent. colombia, ecuador, peru, and central america. that is exactly where we are the leader so for us, it is like a puzzle piece where you have the south. we were already strong there and now we are at the north of the continent. we have a strong profile on sustainability and markets and a strong distribution network for central american region.
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immediate synergy for our products to get into those regions. for us, it is a missing puzzle piece that we put in there and it is on the list of the highest growth countries economy wise so we are very excited. we have been trying to have this happening years now so we are very happy that he has finally worked out. anna: that is one geography. let me ask you about china. i want to understand the demand outlook for china. many people very interested in watching the chinese recovery story. would you see it sequentially advancing china in the second half of the year versus the first half? thierry: the first half of the year in china has been strong across the board. if you look at all of our segments, the demand in china has been really outpacing the rest of the globe. we see that somewhat they will rising at a high level.
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that has been a challenge, the high demand and that of the world versus the raw material issues that i just highlighted earlier on. we don't see that going into the negative direction. when i look at our decorative brands where we are a strong they are, our growth strategy that we outlined to go beyond the tier one and tier two cities and actually go much more deeper into the country, that is well on track so we think the chinese economy, for what we are concerned is frankly going to be a pretty -- continue to be a pretty positive effect for 2021 and early 2022. mark: when you are looking for future potential acquisition targets, is the focus more on technology, geographic presence, manufacturing capacity, or market share? thierry: i would probably have to give you a very boring, technocratic answer for that, but we do not do acquisitions
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for size. we really have our whole business split up in the performance unit and we have been looking at how can make this performance unit more performing so the acquisitions we have done like the recently closed one -- it is really to look at if we do m&a, do we plug it in and do we get a better, higher performing business out of that? it has to be in that region or it has to be in that technology. it is really very technical, like i just described on the south america story. the area where we would like to do more acquisitions and where it is often not easy is in asia. that has to do with the fact that the multiples for companies are so high on the stock market that frankly, it is difficult to compete with an acquisition offer versus somebody who wants put their company on the stock get so that is why we would want to do more but it is technically
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not very easy to do so. therefore, 360 degrees on how we can make our business better and what is the element to get us there? anna: thank you very much, thierry vanlancker, the action nobel ceo. let's get a bloomberg business flash. some of the other corporate stories we are following this morning. laura: the exodus of senior bankers is continuing with more than 30 having left the bank and another four executives are said to be leaving as the lender reels from the aftermath of the scandals. bhp is considering getting out of oil and gas in a multibillion-dollar exit that would accelerate its retreat from fossil rules. sources tell bloomberg the mining giant is reviewing its business and considering options including a trade sale. the business could be worth $15 billion or more. a jp morgan executive defended the long hours worked by a junior bankers on wall street. the ceo of the's business told
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bloomberg the intense workload is necessary people master the job faster. >> do you think 10,000 hours is about what you need to master any subject, if someone comes in and has a regular eight hour day job, five days a week, it will take about five years to have a base level mastery. on wall street, it is more like 12 hours a day, six days a week. that cuts you down to 2.5 years before you become mastered in something. >> that is your bloomberg business flash. anna: laura wright in london. coming up on the program, we are in france as the country is planning to pressure its population to get vaccinated. it is providing further incentives. we talk vaccine e-sports, next. this is bloomberg. -- vaccine passports. this is bloomberg. ♪
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anna: welcome back to the european market open. 15 minutes until the start of cash equities trading. we have a picture that looks slightly positive. we are also seeing buying across the treasury curve. yields coming down a little bit this morning so i will keep that in mind. let's think about where we are in the fight against covid-19 in europe and tools and governments disposal. the first part of emmanuel macron plan to pressure his population to become vaccinated goes live with health passes required for entry to cultural venues. later, it will be required for longest travel, cafes, and restaurants. for more, we are joined by caroline cohen on in france. -- caroline conan in france. what changes is an's putting in place today? this comes in the context of moving ahead of other european countries to test out what is possible and what can be used as
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leverage to try and persuade more of the population to get vaccinated. caroline: the french government is taking a rather radical push to control the spread of the delta variant and increase the vaccination rate. as you are mentioning from today, it will be necessary to access all cultural and leisure venues. if you want to go to disneyland or visit the eiffel tower or versailles, you need to show this qr code proving you are either fully vaccinated or tested negative recently so that will be the case for everywhere. we have more than 50 people and for every one over the age of 12. and then another change will come early august, quite radical again with the health pass required also to access restaurants, bars, big shopping malls, and long-distance train, but also in hospitals and nursing homes.
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from september, employees of those hospitals or care home to still refuse to get vaccinated could even lose their job so this is quite a radical approach from emmanuel macron but it seems to be working to encourage people to get vaccinated. since his tv address last week, about 3.7 million vaccination appointments have been taken in france and this comes at a time when that 80% of new cases in france are the delta variant. yesterday, for example, you have 18,000 new cases in france compared to 7000 last week. mark: i feel like you are teasing me by specifically listing all of those french tourist highlight but i'm curious, what is happening elsewhere in europe? or german really -- are germany and italy following those footsteps? caroline: italy is watching it
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very closely. the italian government is debating also the extension of their green pass. a decision could be taken as soon as the end of this week. in other countries, for example, portugal or is, people are required in some places to show vaccination proof of a negative test to eat at restaurants. some of these rules have already been lifted in germany but could be tightened again depending on the spread of the delta variant in germany as well. however, angela merkel, the chancellor in germany, says that she would not follow france in making vaccination mandatory for those working in the health care sector. something that all these countries have in common is that they are obviously monitoring extremely closely what is happening in the u.k. with the delta variant. anna: in the u.k., we have seen rules around health care workers coming into place and there
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seems to be a testing of the waters when it comes to covid passes here in the u.k., with talk of needing one in september to get into nightclubs and other large venues but some of that is not spelled out as we discussed yesterday and political pushback, too. we will keep watching that conversation in the u.k. as well. take you for bringing us the french perspective and broader across europe. the king at stocks to watch including asml. chip demand keeps on rising. or on the stocks we are watching this morning. a pithy earnings day for year. this is bloomberg. ♪
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anna: welcome back to the european market open. that's get to the stocks we are watching. our guests joins us from our equities team. joe, post lockdown pent-up
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demand, something that plays well clothing makers, it seems. joe: the u.k. high bellwether nexus saying they are -- their 11 week sales have been materially ahead of expectations. they are boosting their for your guidance and they are saying nails were 19% years ago so they are giving an important comparison that is pre-pandemic levels. they expect to use the extra cash to pay back some is this -- business rate relief even to the government and to consider special dividends so it looks like there is something for everyone in the report. they did bring it forward by two weeks so they are keen to get this news out into the market. we would expect keep an eye on other stocks today like jd sports and the owner of primark. could be a good day for the u.k. retail sector. mark: where was that wave of demand when it came to earnings?
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joe: it looks quite different in terms of their momentum. it looks like they are losing market share. there was some outperformance in latin america and some parts of asia but it does not look like it will be enough to boost their earnings guidance so it could be a negative one. they have poached him to come to the company. it does look like he has a bit of a turnaround on his hands and he will to hire in a new creative director but in terms of today, that will probably be a negative move over in italy. anna: i got all the upgrades today. incredible. a company the size of asml, 200 or or so billion euros is the market cap of this business and they are raising their growth target to about 35%. joe: that is right and some huge numbers. they are showing the chip industry needs these machines that they make in order to boost
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their supply. we know about these huge shortages in the industry. they say their quarterly sales orders. the orders ahead, up around $.74 so they are seeing huge demand. they say they will pay russia dividend of as much -- buyback as much as 9 billion euros to really a positive one for asml. that stock is quite strong this year already so potentially not too much upside. anna: we will watch that. thank you very much. mark, we will see whether these earnings stories cut through. mark: seems to be providing a little bit of positivity at the moment, slightly today. one extra stock market that has done really well despite the risk aversion elsewhere is the small caps in china and that's a negative -- an interesting message given the negativity about china otherwise. small caps are booming to
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franchise. anna: the authorities deciding to do that rrr cut. people ask why that was necessary. that is a positive sign. look for further positivity as we rebound. this is bloomberg. ♪ and you can get a roundup of --. ♪
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♪ anna: welcome back to the european market open. here are your headlines. buying the dip. stocks shrug off monday. european futures track for rowling higher. u.s. netflix forecast another period of sluggish growth. the stock recovers after an initial slump. earth briefly loses its richest person, as jeff bezos blasts off to the edge of space. we will bring you his first
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interview after getting his feet firmly back on solid ground. let's take a look at the futures picture. just 15 seconds to go until the start of european equity market trading. unlikely we will be off like a rocket this morning but we saw a decent rebound in yesterday's session. we had the moodiness of monday, followed by the turnaround on tuesday. we will see what wednesday delivers. we certainly have the ftse 100 opening to the upside, opening up by just 0.1%. concerns about the delta variant no doubt still there in markets and the extent to which it will result in any further restrictions or lockdown measures in certain places. we have corporate profits coming in pretty well, we have supportive monetary policy, high-growth estimates for the global economy. all of that very much in the mix this morning. as we see this wednesday morning, european equity markets
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continuing yesterday's turnaround bounce, up by 0.5% on the ftse 100. european equity markets opening higher, as traders continue to assess the economic impact of covid flareups. u.s. futures fluctuating after the s&p 500 all but erased monday's slide. roger lee, investec bank head u.k. equity strategist joins us now. let's start with your risk appetite, given the roller coaster we have seen this week, the real selloff on monday, the turnaround on tuesday. what is your risk appetite looking like in terms of equities? roger: we think equities look pretty attractive at the moment. the best way of thinking about monday is that right through the start of the pandemic, markets have been really buffered by news -- infection data, news,
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especially when that data starts to rise rapidly. if you go back to the start of the pandemic, one of the biggest -- we saw in the market was when the nba suspended the rest of their season and that produced an s&p down day. it's not often that basketball has a material impact on markets. the news flow around the infection rate, the restrictions that are imposed do have a very negative impact on markets. that is essentially what we saw on monday following on the news flow over the weekend of increased restrictions in asia, europe, the u.k. and across the u.s., advising not to travel to the u.k. what was interesting about monday is that the markets seemed to ignore that this is different this time, very different. the vaccine demonstrably working
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in removing the link between hospitalizations and infection rates. that seems to be what the market was missing on monday that very much got it on tuesday. going forward, to answer your question, i think as long as the vaccine continues to demonstrate efficacy, i think the appetite for equities should continue to be robust. anna: what message do you take from such a low bond yields? bond yields have been flagging this for a while. maybe we should not be quite as optimistic about the recovery amidst delta variant. there could be an outside chance that we see further restrictions introduced into the united states, where we have seen pockets of very low vaccination. parts of california reintroducing mask mandates. will that be a concern as we go towards the autumn and into the winter? roger: yes, very much a concern.
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that's the tension in the market. the tension in the markets is essentially between the clear consumer behavior when we get an opportunity to reopen versus the ongoing restrictions that are being imposed. that has been essentially the tension that we are seeing really since the vaccine news back in november, and i don't think that will change. from a risk perspective, one has to believe that the vaccine will work and that will continue to normalize behavior. the alternative is we are really going to live in a world of ongoing restrictions where we will never normalize. that is probably quite an extreme view. you are absolutely right, that is the tension in the market. broadly speaking, that's what the bond market is telling you, is that the growth rate is going to be so slow because of these ongoing restrictions and lockdowns that we will not see
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any growth going forward. again, we think that is an extreme view to take. anna: maybe that's an extreme view. let me ask you about one of the other impacts we have seen from covid, problems with supply chains and higher raw material costs resulting as well. we just heard from one company this morning talking about the crisis easing from raw material inflation but still talking in quite punchy ways about the extent of those raw material price rises that they have seen. where do you see that commodities, raw materials story heading from here? roger: you really hit the inflation story on the head. this is the tension. is there going to be ongoing commodity price inflation? we have seen significant commodity price inflation in copper, iron ore. is that going to continue or is that going to abate? if you look at lumber, which was
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really the sort of poster child of this surge in commodity prices, really because it's the principal component of u.s. housebuilding, and we saw this surge in lumbar pricing. lumber has now fallen 17% from its peak. it is now trading back at pre- crisis levels. on the other hand, copper, iron ore, the bloomberg commodities index is still within 3% of its recent highs. there is some evidence that some of this commodity price inflation might be transitory, like lumber. there's quite a lot of evidence that for a number of supply-side issues, some raw material prices are staying high. there is every possibility that that may continue for some time. anna: stay with us. roger lee, investec head of u.k.
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strategy stays with us longer. julius baer reports its best first half on record. don't miss our interview with the company's ceo. more of that conversation between manus cranny and the ceo coming up on this program. this is bloomberg. ♪
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♪ anna: welcome back to "bloomberg
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markets: european open." nine minutes into our trading session. positivity across these markets, certainly on the ftse 100 and cac. the dax looking different. we have movement to the upside of 0.7% on the stoxx europe 100. we have had plenty of earnings this morning. let me mention an ipo, a rare private equity ipo. bridge point coming to the market in the u.k., surging in its debut, jumping as much as 21 percent after a 789 million pounds london ipo. we will keep an eye on that one. pricing at 350 pence per share. let's have a look at some of the other movers. starting in the u.k. with the next share price up by 9.8%,
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raising guidance for the rest of the, talk of restarting its dividend, it is paying a special dividend. sap also in focus today. you might have thought they were due to some upside given they did give an upgrade to guidance. the upgrade was not very substantial. it was pretty minimal. may be the market was expecting something bigger. we see that stock down just shy of 4%. let's go to the daimler share price. we are down on the daimler share price. this is a heavyweight company. it is down by 2.3%, to some extent weighing on the rest of the sector. they have cut their car sales outlook, once again, ships the issue -- chips the issue. julius baer saw a net income rise by 23% to 606 million
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francs. manus cranny has been speaking to the company's ceo. he started by asking him if there has been any slow down so far in the third quarter. >> we came into 2020 without a crystal ball. in our last conversation, we were also discussing about how is client activity evolving? the first half of 2021 in a sense has surprised us with all of the activity that has happened, with the continued very strong interest of clients in the market. we would apply the same -- going into 2021 that we apply in the second half. we have on the one side, record valuations, but we have also a record earnings season. we have macroeconomic factors, a diverging recovery curve now as many nations come out of the pandemic. i think there is plenty to go about with volatility, with
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client interest. there is also an element of caution. this is a time for active management. >> bonds trading down, bond yields shouted a warning shot to me. what did they say to you? >> a similar level of pcr tests last week when traveling. obviously, we take a cautious stance to the recovery patterns across the globe. i don't think we are there. it's not that we can go back into party mode and hope this crisis is over. i think we will be seeing vastly diverging patterns over the next 12-18 months. there will be some countries with the great recovery rates, others will struggle much more. maybe those who have been running more containment based strategies will have a harder time getting out of this. this is not over. >> let's get year view on inflation. transitory or a little bit more
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enduring? >> i am a more in the first camp. there are base affects. i don't think that this level of inflation is a precursor for a large inflation boost. obviously, one needs to watch this very carefully. >> you are free to do deals. i am not active, but the ban on the large transactions is done. is the usa top of your agenda to return to? >> i think growth is on top of our agenda, and smart and profitable growth. there are different ways of doing this. there is a way of having relationship managers, something we have done successfully in the past at large-scale and something that can be redone moving forward. there is the opportunity for acquisitions. i think we will see now, as the pandemic absolves, more opportunities in the market. we will be ready for those if they come at the right price, at
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the right quality, in the right market. i think we first look within our existing core markets, obviously have a wider radar screen across the globe. what are the untapped potentials? >> are you tempted by america? >> i am always tempted by large markets with great profit pools. on the other side, it's also a highly competitive market. those decisions have to be taken very cautiously. anna: the julius baer's ceo speaking to manus cranny. roger lee, investec bank head u.k. equity strategist is still with us. you think about financials, but maybe with more of a u.k. focus. what are the opportunities in u.k. banks? roger: u.k. banks, or the financial sector more broadly, is one of our key overweights at the moment, and it's really based on a valuation call. the ftse 350 bank index, as of
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monday, the selloff on monday, the bank sector in the u.k. is trading back at levels we have not really seen since january and february earlier in the year when we were in the midst of a very severe lockdown. it seems anomalous to us that the price of the bank should have retraced back to where we were in january and february of this year, when clearly the operating performance is going very well. -- has the highest loan growth since 2016. clearly, we saw very good numbers out of ubs, and as you have been reporting out of julius baer. we think the bank sector at the moment looks very attractive. the headwind clearly is the yield environment at the moment, if yields do stay around 1%, which we don't believe they will. if they were, that would be a big drag for the banks. on an operating performance basis, they look to be doing well. anna: how would you expect to
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see payouts from banks develop? they have been controlled during the pandemic. some of those controls are going. the u.k. seems to be lifting them a little more enthusiastically than other parts of europe. would you see payouts on the rise from now? roger: definitely. i mean, there is some debate about whether the payout ratios will be slipped between dividend or buybacks. we saw very clearly the u.s., there is a significant amount of surplus capital sitting in these banks at the moment. they are talking about the highest core equity that they have ever had on record. i think we are going to see this across the bank sector. the reserves they took last year really have not been used, so at some point, they are going to be released. with that, just as we saw with u.s. banks, we think the market will take that positively. these banks are trading at valuations that are at a
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discount to their history. anna: let me ask you about private equity and the way they u.k. values assets. a lot of people pointing to the amount of activity we have seen in the u.k. and saying, does this mean public markets are not effective at valuing assets? that's why the industry sees things different. i am talking to you on a day where we have seen a private equity company deciding to list itself. bridgepoint listing today. what do you take away from the levels of pe interest we see in u.k. assets? roger: it goes back to your first question. we think equities are attractive. u.k. equities are certainly trading surplus 14 times compared to the msci trading at 20 times. that is a significant discount to the world indices, and actually high relative to where
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it has been in the past. we think u.k. assets are attractive, and private equity is clearly seen this as well. u.k. is attractive. over 50% of all private equity takeouts across europe, whereas europe only represents about 20% of the msci europe. a disproportionate amount of interest is being taken in the u.k. the private equity take out in the u.k. running at the financial crisis. it comes back -- running at the highest level since the financial crisis. if the public markets don't value private equity assets properly, the private equity market will. anna: roger lee. coming up, netflix suffers a slow down after lockdowns sent memberships soaring in 2020. the streaming giant promises that is still room to grow.
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that story coming up next. this is bloomberg. ♪ ♪
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♪ anna: welcome back to the european market open. 22 minutes into wednesday's trading session. european equity markets, we were down on monday, up yesterday, up this morning. let's get to the earnings story,
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but the u.s. earnings story. netflix earnings were a mixed picture last night. subscribers topped analyst estimates, but it's forecast disappointed with 3.5 million new subscribers projected in the third quarter, short of the nearly 6 million wall street had expected. executives dismissed concerns about growth and reiterated their confidence in the prospects of the streaming giant. >> there is still confidence to our growth. we had the big pull forward in 2020, we also had the push in production at some of our key returning titles and big, tentpole new releases until the latter part of the year. overall, the business is performing well. anna: for more, we are joined by alex webb. is it all about this guidance? did that because disappointment in markets -- did that cause
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disappointment in markets? >> the forward-looking piece is always more important. there was a bit of a let down north america in particular, where subscriber numbers dropped. that thing we have seen is that the pandemic has had a dual effect. on the one hand, massive subscriber growth last year. on the other side, there is the effect on production, namely that shows that maybe had expected to be made last year were not necessarily all made. that is now ramping up or has ramped up. it means that perhaps the delay, the kind of dearth of shows this year will start to accelerate, the number of shows being made available to watch will accelerate. anna: how does the company rationalize losing domestic comforters -- customers for the first time in two years? >> it has to do with the
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lockdown, with the pandemic. they said they had set expectations that it was going to be more difficult this year than it had been last. perhaps they did not do quite as well as the market had expected. the growth outside the u.s. has been good, perhaps not as good as everyone expected. that plays back into this consideration of, what have they been able to produce? the shows they want to produce are not necessarily english-language. the growth outside of the u.s. is really dependent on having shows in french, german, italian, spanish, whatever. anna: let me ask you about the sort of new areas of focus. international has been a focus for a long time, but also gimmick. part -- gaming. how substantial will this be for netflix? alex: the details are quite slim. the key question is going to be, are they going to be doing
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legit, big, blockbuster, console type games or mobile games? if it's the latter, i would suspect it's a device of stickiness to keep people using the platform. it's not necessarily going to be attracting new customers. they need big-ticket games to attract new customers and that's hard to do. it takes a long time to get that up and running. google has tried its own gaming streaming service. it's a tough challenge. it may also be that it's too early in the cycle, namely that technologies are not quite there yet, but they will be soon. anna: thanks for joining us. alex webb from our bloomberg quicktake team casting his eye for us. coming up on this program, we will be back to the macroeconomic story. we speak to former president of the ecb, jean-claude trichet. he will be with us next.
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where does he see inflation threats coming from? what does he make further european inflation outlook but also the global inflation outlook? what does he think about the recent strategy reviews from the ecb? we will talk to him next. this is bloomberg. ♪ that is what we will do.
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we also launched this global raffle today. $10 for a pair of tickets to win a raffle so they can go up. hopefully, that will enable many, many people to go up to space. >> what does it change for july 20 second? >> we have a new framework. it is approved by the governing council. we will look every six weeks. we will look at the circumstances. we will look at what foreign guidance we need. we are going to look at calibration of all of the tools we are using to make sure it is aligned with our new strategy. and i think, given the persistence we need to demonstrate for our commitment
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for guidance. >> does it give you extra tools? july 22, is it an even bigger meeting? >> it is going to be an important meeting because we will communicate differently. anna: welcome back to the european market open. european equity markets increasingly to the upside, up .9% on the stoxx 600. you can see the rebound from monday's losses. we continue that into today's section. we can see that all sectors are in positive territory. there are few stocks in negative territory. even the auto sector is not seeing negative territory. the dax is positive, up .3%, but
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not as positive as other markets. there are reduced car sales by bmw. porsche is also down. it's about the leisure, it is about gaming, but it is also about travel. carnival, airlines also moving higher. a mixed bag of stocks bringing travel and leisure to the upside. let's talk about the global economy and the story at the ecb . they have a potentially heated two-date meeting today deciding how the monetary easing strategy will affect things. it is unclear what this means for interest rates and bond buying. let's get into a conversation with jean-claude trichet. he joins us now.
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you for joining us. let me start with a global perspective on inflation. we can delve in to some messaging from the ecb and strategy. i would like to get your take on inflation globally and how transitory it will be. jean-claude: it is obvious that we have a very important spike on inflation, particularly the u.s. and the u.s. economy has a very important influential hold on the world. i see elements that call for great attention. now, in europe, we're ina different situation. it is clear that the inflation is higher, not surprisingly, because of the spike of oil and commodities. on the other hand, we have a situation where the full
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inflation remains at a low level . it is still at 0.91%. i think that the ecb is not wrong when it says it sees the hump of inflation in europe as transitional. you always have to be pragmatic in that domain and remain vigilant. it would be a total loss of credibility, whether it is in the u.s. or the rest of the world. anna: do you think any global central banks are risking credibility with that in mind? jean-claude: the central banks a sk the observers and their own people to judge them on the basis of their results.
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under the scrutiny of their own citizens. it is two in the u.s., two in europe and two in the rest of the world. you cannot let inflation gather. i have also to say that this succeeded in preventing the materialization of the deflationary, which has been a very important risk over the last 10 years. seeing inflation going up is very good news. anna: thinking about that, we now have a new strategy at the ecb, the first time in 18 years, that gives the ecb asymmetric 2% target in the near term. what do you make of that? are you pleased with what the ecb is doing now?
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jean-claude: i am very happy there was unanimity in their decision. it means a lot. for me, this is a clarification. what they said 18 years ago, c lose to 2 meant 1.8, 1.9. i was very proud in berlin when i left when i said we succeeded in having a solid currency. average inflation since the inception of the euro is 1.95. the idea was to be symmetric. to have from time to time, inflation higher than the 1.5, the 1.95, and from time to time, lower. in my own term, i had inflation at more than 4% at certain
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moments. it is normal that you have from time to time inflation up or down from your explicit or implicit target. in my view, it's not a big change. it's a clarification. it is important that all central banks of advanced economies are at the same figure, 2%, europe, the u.s., and japan. we were the first. anna: it is certainly catching on. if we had had this new strategy in place when you were at the ecb, would it have made a difference in the strategy decisions you made?
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jean-claude: i do not think so because the figures are there. since the inception of the euro until i left we had inflation more than 2% half of the time and near to present have the time. at times, we had inflation going up to 3% or 4%. after the great financial crisis, we had a threat of a deflation risk and inflation very, very low in the u.s., japan, and europe and that was creating the sentiment that the central banks had policies that were not appropriate. that came from a lot of other factors that were associated with the crisis. it created an additional problem for central banks. it is not because we had 2% that
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my successors had figured to reach the one point 9% or 2% that i mentioned. it were a lot of other factors. anna: i was just going to ask you what this meant. now we have the new strategy and we have to turn that strategy or the ecb has to turn it into strategy around the markets. what message do you think that ecb should be sending this week? jean-claude: the strategy is very, very tense. the governing council says that it is 2%. half of the time, we will be higher than 2%. half of the time, we will be
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lower than 2%. this is true in europe, not only as a whole, but for each country . each country's own national inflation must half of the time be higher than 2%, half the time lower than 2%. it is a clarification that is welcome. i will not, in advance suggest what we should do now in terms of its own forward guidance and explanation. the marks will be different, not only because of the 2% now. it has been affirmed. also, because of the monetary policy analysis. there is no mention of an
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integrated assessment of all economic factors. they are monitoring financial analysis. they are doing it in a slightly different fashion. this is important, in my opinion. what is important is that they need not abandon these issues, because it is very important and proved important in the last initial crisis. anna: thank you so much for joining us. thank you for spending time with us on bloomberg tv. let's get updates on the first word news. >> jamie dimon got a payout to stay at j.p. morgan for another significant number of years. it was an estimated $15 million according to one estimate.
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he has been with the bank since 2005. he would need to stay on for another five years. the u.s. and germany are close to a deal on a pipeline. germany would take unspecified action against russia if it takes action against the ukraine. angela merkel had curiously balked at an independent move against moscow. a former top aide to donald has been arrested on a foreign government. tom barrack will remain in jail until a hearing next week. he said that he made himself voluntarily available to investigators from the outset and will not be pleading guilty. >> from my simple beginning to
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where i came from having the gift and the opportunity to be next to a president of the united states, to have the honor of running an inauguration, to be up close and personal on some issues that affect world order, i paid a personal price for it. the adversarialness of america and squaring off on both sides is something i still do not understand. anna: global news 24 hours a day and on bloomberg quicktake howard more than 2700 journalists in more than 120 countries. anna: coming up on the program, jeff bezos off to the edge of
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space. do not miss his first interview after getting back on solid ground.
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>> mission accomplished for jeff bezos. along with his brother mark and an 18-year-old, they
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successfully traveled more than 62 miles above the earth. they unbuckled, they did somersaults and they threw ping-pong balls to one another before exiting. he said that while this is a landmark moment for the company, it is a bigger event for blue origin and space. >> are building a road to space. ed: this is progress on space tourism. there will be six flights this year and potentially six flights next year to carry customers into low space. they want to compete with the likes of space acts for nasa and commercial contracts. they are developing a much bigger and powerful rocket that hopes to do world -- orbital
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missions. the rationale is that he believes we need to take heavy industry away from earth to protect earth in the long-term. right now, the focus is on ramping up progress. there are currently progressions and launch alliance, another project that is behind schedule. the future for space looks very bright. anna: landmark moments there in texas. after planting his feet solidly back on earth, jeff bezos described the experience. he was talking to emily chang. >> welcome back to earth. how did it deal. my goodness, wow. this is your first interview since landing. we all want to know the reality
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of seeing the earth from above. didn't it live up to the dream? jeff: honestly, i am not talented enough to describe this in words. it is awe inspiring. do you have words? >> i do not have words. emily: now that you have accomplish this, what is blue's next move? jeff: we are building an orbital vehicle. we just flew our sub-orbital tourist vehicle. it is practice for the orbital mission. this fragile, beautiful earth that you cannot imagine. until you see it with your own eyes, maybe we can send a poet up or something. it is just this thing. you can see that it is just one place. there is no boundaries, no
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national lines. earth's atmosphere is so big. we live in it. when you get up there, you see it is this teensy thing that we need to protect. >> i was surprised at how easy it was to move around in 05. jeff: it almost seemed like we were evolved to be in 0g. emily: how do you think this will benefit us on earth? jeff: we are building a road to space so future generations can build the future. we live on the most beautiful planet in the solar system, by far. we have to keep it safe and protect it. over decades, we have to move all polluting industry into space.
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that is what we should do to keep this planet the gem that it is. we need low cost spacecraft. we have to practice. emily: i have four kids. how do you want this to inspire them? jeff: kids -- every kid has so much potential inside of them. what i hope we are doing a little bit is unlocking that. so for kids everywhere, the way you unlocked potential is with inspiration. i was inspired as a little boy by the apollo astronauts. this is the next phase of commercial space development. i hope that inspires kids too. anna: that was jeff bezos just after returning from space. really moved by the experience. do not miss bloomberg's special on the space race.
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coming up on this program, a busy day. we get back to the markets next. this is bloomberg. ♪ >> we are going to talk about the nature of the mission. do you see this becoming truly democratized at the moment? the fact we are having
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discussions about whether you can get in on ipo's. are there opportunities to make your way within the financial world? >> there will always be progress to be made. there are many banks helping. we have seen a lot of success where digital instruction can help with some of these groups. that is not really our target audience. we want to offer great advice to everyone. we think there are a lot of folks going after that marketplace. there is always more progress that we can make. you are right, private investing, there are still pockets of the market where you have to be in the know.
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anna: welcome back to european market open 53 minutes into our trading session and making gains. up by one and an 8%.
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making big gains on the ftse 100. less on the dax. our macro strategist joins us. what do you make of this? it seems to be this risk on, risk off reflation trade? some companies are being crushed if earnings is not what was anticipated. >> earnings is adding to that recovery risk assessment the are seeing. travel and leisure is at the front. like you mentioned, the dax is struggling to maintain those gains on the back of daimler earnings. chip shortages are going to impact their production. you are right, this is a bigger picture around market narratives battling the ongoing spread of the delta variants against the
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ongoing recovery. that is going to set us up for choppy action ahead. markets are relatively complacent around biosphere's. i do expect we will see bouts of volatility going forward. anna: we could still see some volatility. we are still asking, what does the bond market know? now the bond buying takes a pause. we see a bit of pausing. those equities are rising just a bit. laura: we are seeing some reprieve in the bond market rallies. technicals do suggest that we could see that kicking off once again with yields heading towards that 1% level. price action remains confounding. this is still a u.s. recovery that remains strong. we are seeing the fed price in about two rate hikes in 2023.
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when i look at the overall bond market, temporary inflation is likely to be the case. if you look at what is happening in terms of consumer expectations and what businesses are telling us and what is likely to come out of earnings reports, i would expect persistent inflation come bubbling back to the surface and the market rally take a pause. anna: the dollar is higher. what is happening there? laura: the dollar has been struggling for a while. that is haven support. real yields are actually near those at record lows once again and that is not providing a downside to the dollar. it is actually hurting those emerging market currencies. ultimately, these global growth spheres still linger. anna: they'll be tracking you
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through the european session all the way into the u.s. session. the trade higher in europe. this is bloomberg. ♪ [ "me and you" by barry louis polisar ]
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♪ me and you just singing on the train ♪ ♪ me and you listening to the rain ♪ ♪ me and you we are the same ♪ ♪ me and you have all the fame we need ♪ ♪ indeed, you and me are we ♪ ♪ me and you singing in the park ♪ ♪ me and you, we're waiting for the dark ♪
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>> you have got to do with the same way we did it with travel. we are really in the barnstormers phase. >> complete carbon neutrality by 2050. in order to hit that we must make a new cause -- cars run gasoline by 2040. -- non-gasoline by 2040. francine:


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