tv Bloomberg Markets Americas Bloomberg July 27, 2021 10:00am-11:00am EDT
alix: it is 3:00 p.m. in london, 10:00 a.m. in new york, 30 minutes into the trading day in the u.s. i'm alix steel in london. dani burger -- in new york. dani burger is in london. guy johnson is off again today. this is "bloomberg markets." dani: here in europe, you have unilever warning that earnings might look good, but cost pressures might crimp profits. alix: you can see that reflected in the s&p as well. take a look at the board here. the s&p is off area of the dow getting it the hardest. what you want to pay attention to is the 10 year real yield. do earnings even matter if the tenure real yield continues to grind lower? it is going to be hard to not
want to invest in some of the growth companies. bitcoin also getting a little boost. goldman sachs asset management thinking about putting together some kind of fund there, so that is hoping that i set class. maybe a little risk on in the bitcoin world. the story to me, it is going to be equities. dani: it feels like deja vu. we certainly are getting u.s. data in u.s. july consumer confidence index coming in at 1.29.1 -- at 129.1, so that is higher than the last rating. let's get more with bloomberg's international policy and economics correspondent mike mckee. what do we make of all of this data heading into a fed decision day tomorrow? reporter: -- michael: none of
this is really going to influence the fed all that much. they are more interested in the pce price index on thursday. as we look at the numbers from the conference board, we can see that not only did the present situation go up, but the expectations index also rose as americans grew more confident about the economy, and this probably has a lot to do with the labor market reopening in the country as a whole reopening. the present situation goes up to 160 from 159.6, and expectations up to 108 -- actually, it is unchanged at 108.4, because that is revised higher. it looks like people are feeling a lot better about it. the other number we wanted to look at is the inflation expectations, a little bit different than the university of michigan ones. they look at what people think it is going to be for the next
year, and it falls to 6.6% from 6.7%. so if anything influences the fed, it might be that. durable goods you did mention up 0.8%. put them together, you've got a good two month average, but it was a little bit disappointing. we can also mention the s&p corelogic home price index, which was the case-shiller index for years, up 8% on a your of your basis. home prices are rising at the same time that consumers aren't as worried about prices, it appears. alix: that is going to be interesting to see what housing looks like for the fed. let's get to china. the route driven by the government's clampdown on education is adding to broader market unease. you do see china education
stocks in the best trying to rebound this morning. damian sassower joins me now. your take on what is happening? how low do we go? damian: for a point of comparison, you look back to 2007 when we had the stock market bubble, you look back to 2014, 2018 during the trade war. we are only amidst a 9% correction, so there is certainly more to go, but i'm a fixed income guy. look at china credit spreads. look at china denominated -- china dollar denominated bonds. if you look at china invest my grade, spreads are on par now with russia and columbi -- russia and colombia. dani: traversing across the asset classes for us, thank you so much. that is damian sassower of bloomberg intelligence.
from china to the u.s., let's look at live pictures of congressional hearing into the january 6 capitol insurrection. the inquiry at the moment is being headed by seven house democrats and two republicans. our bloomberg washington, d.c. correspondent annmarie hordern joins us. how is the hearing shaking out so far? brooke: --annmarie: very dramatic and emotional at the start. they were showing videos of the january 6 insurrection. we are hearing from one of the police officers that was there at the scene, giving very emotional testimony. we also heard from represented liz cheney, one of two republicans on this committee, talking about the fact that numbers of congress should not be defending the indefensible, and talked about the fact that if there is no investigation and we do not get answers as an american public about what went on on january 6, it will be a cancer. so a very dramatic scene shaping
up here as we continue to hear the testimony from these police officers, and a lot of graphic content as well. a lot of questions remain on how long this investigation will go on, and the new york times were boarding as well we could potentially see former trump officials come to the testimony as well. alix: real quick, where is infrastructure than? there's a lot going on in terms of the hearing, but also infrastructure continuing to permeate. annmarie: infrastructure deadlines, if you have passed. negotiations are continuing. there were negotiations overnight and last night. they said that 90% is done. the past is moving forward in terms of getting agreement, but there are a lot of hurdles. alix: annmarie, thanks a lot. wrapping it up, a new number of vaccine mandates are being enacted across the u.s. you have covid infections rising
with again. here with more is bloomberg senior health care editor drew armstrong. where are we with vaccine mandates and potentially more mask mandates coming down? drew: we are beginning to see the start of a real push, it would seem, for these vaccine mandates in workplaces. we had the veterans administration begin to mandate for health care workers, new york and l.a. beginning to do the same things for some of their city employees. health systems increasingly start to push mandates for their workers now. a lot of these do come without saying that you need to get tested once a week, which is the case in some places. really, but i think we are beginning to see is we had vaccinations amongst the highly willing and enthusiastic relation, and right now, -- enthusiastic population, and
right now we have public health leaders looking around saying we need to strengthen the measures they use to get those numbers up. dani: it is certainly a careful line they are walking. just seeing lines from oven what the new york times" at the seat -- from "then your times -- from "the new york times" that the cdc will begin commending mask wearing for some -- begin recommending mask wearing for some vaccinated americans. it is a big week for u.s. earnings, with companies worth $9 trillion reporting alone today. so a big chunk of the market is going to be giving us their results. we are going to discuss it with victoria fernandez come across mark global investments chief market strategist, next. alix: now a live shot of the congressional hearing into the generally six capitol insurrection. this is bloomberg -- the january 6 capitol insurrection. this is bloomberg.
♪ dani: live from london, i'm dani burger, with alix steel in new york. this is "bloomberg markets." it is a big week in u.s. earnings. let's see what the scoreboard is with bloomberg's abigail doolittle. abigail: a big week indeed. more than $20 trillion worth of companies are reporting earnings for the second quarter, that june period, this week. it has been a very strong reporting period so far. you have companies beating by 18 fo -- by 18.4% for earnings.
you see a huge percentage overall are beating even if the beat isn't huge. 81% on sales. you can also see huge growth in 2021 versus 2020, not surprising considering the pandemic boost coming out of the pandemic. then you also have big growth. overall, the stock response hasn't been huge. up about 0.6%, so you could say some of it is priced in. as for the big earnings movers on the day, tesla reversing earlier. had been higher. they put of a very strong second quarter, their first $1 trillion quarter, but they got a little bit big, according to some analysts. they can see this year's decline continuing. ge moderating its earlier decline, the tape weakening overall. they boosted their free cash flow view on strong aviation. sirius still holding onto a big gain. ups a big laggard, down 8.8%.
there margin view, operating margins view, coming under pressure, not meeting. plus, the idea of the pandemic coming to an end, is that going to hurt ups? this is a were markable chart. this is the percentage of the companies eating. 80% of companies have made earnings, and this is a big move up over the last decade. it probably points to the idea that companies' management teams have really learned how to guide expectations. alix: also, easy comps this quarter as well. thanks so much. let's get more with victoria fernandez, across mark -- crossmark chief asset strategist. victoria: we probably are at peak earnings at this point in time. we look at the beats abigail was showing us, and they are huge,
but they have easy comps, so that is helping. plus, they have been able to start through some of the price increases. you have heard from many companies, unilever, coke, pepsico that they have been passing through those prices, and consumers are willing to pay them right now because consumers are flush with cash. i do think we might be at peak earnings, but look at the third quarter, the fourth quarter of this year. expectations for earnings growth are still pretty strong. next quarter is still mid-20's. fourth quarter, still mid to upper teens on eps growth. so we still have a solid foundation going forward because we do have this loose monetary policy. corporations have a lot of cash on their balance sheets. consumers are doing well. so we will continue to be solid, but we probably are at peak earnings at this point in time. dani: that is a really interesting point because peak earnings, but solid. what does that mean in terms of
how you recalibrate your equity exposure if you are expecting that earnings can continue to hold up at the rates they currently are? victoria: i think when you look at your portfolio, you do have to recalibrate. that is the perfect word to use. it is not just we calibrating holdings in your portfolio. i think people right now are recalibrate their expectations for the market and for the reopening trade that many people put so much emphasis on. we saw those value names really outperform through the middle of may, and may with the delta variant, with concerns about peak growth and peak earnings, then we saw growth start to catch up again. you really need to build that balance in your portfolio. you need to have some of those growth names, and we do. we have big tech names reporting earnings. we have other names within the 5g space, within data infrastructure that have that growth potential. but we are also buying names and that value space.
we like anthem. we bought that recently. we put a small percentage of ford in our portfolio. adding those names that still have a gross component to them over the next couple of years because we are longer-term investors, building that balance in your portfolio. alix: something that has come up in the last two days has been record low yields in the 10 year yield. want to show a chart to the audience, the 10 year real yield in the s&p versus the nasdaq 100. basically, the lower it goes, the more the nasdaq 100 is outperforming. can see over the last few years that you have seen the 10 year real yield move in opposition to the nasdaq 100, meaning go buy growth stocks because you're getting no yield anywhere else. from that perspective, how much do fundamentals ever matter when the 10 year real yield is at a record low? victoria: you know i am not going to come out and say fundamentals don't matter. that is kind of the core of what we do. it is extremely important,
especially in times of volatility and uncertain, which i think is where we are sitting right now with the expectations of how things play out over the next couple of quarters. you do have to do that fundamental research and look at the balance sheets, look at the cash flows to see where these corporations are sitting and what their guidance is going forward. but looking at the real yield, it really is just outstanding to sit here and see real yields going negative to the extent they are, to have nominal yields at 1.25%, and at the same time, commodity prices only a couple of percentage points away from their all-time highs, and you have these growth expectations going on and inflation expectations going on. so there's a real conundrum on what is happening, and for us we think it will play out over time. i think the way it is going to play out is bond yields will trend higher over the course of this year. does that hurt the growth stocks? i don't think it is going to be such a swift and fast move that you see a big rotation, but over time, we think you are going to
see those value names come back which is why we like that balanced approach. dani: i kind of wonder the opposite side of that argument. if we don't see yields pickup, is there a world that cyclicals can outperform, or do they necessarily need that lift from a bond market that cooperates with them? victoria: i don't think they necessarily need a lift from the bond market, but what they do have is the support from the federal reserve and from central banks around the globe. you have all of this liquidity, all of this accommodation. that is going to give people the confidence to go out and do loans, do more remodeling on their homes, more durable goods purchases. that could help those cyclical names. the reopening trade continues even though it is going to be dragged out maybe a little longer than people anticipated. that it's some support to those that -- that gives some support to those cyclical names. for financials, we think it will probably be at a slower pace
than people anticipated a few months ago. alix: the nasdaq 100 extending declines, about 1%. tech has also gotten hit hard because of what we have seen in china over the last couple of days. we are maybe seeing a dead cat bounce with technology stocks from china here in the u.s. do we see a contagion? victoria: i don't think we see it immediately. i think people are taking a step back, looking at what their holdings are, and our global cody income strategy, we don't have any exposure to mainland china, maybe only about 1% exposure to hong kong. so i think people are looking at their portfolios and saying, do we reduce some of our exposure to these areas where there is increased uncertainty? but i don't think we will see full contagion, at least in the short term. we are not sure how it plays out longer-term at this point. dani: when we get that longer-term picture, we will definitely have to have you back with us. that is a tory of fernandez, crossmark global investments --
surging prices have made it harder for buyers to find properties they can afford. shares of general electric are rising. growth in ge's jet engine division promises to raise its cash outlook. that has led to optimism that improving air travel will give a boost to ceo larry culp's turnaround efforts. shares of tesla are higher. the electric car maker better-than-expected second-quarter earnings. strong sales delivered $1 billion in net income, and now stone for elon musk's company. that is the bloomberg business flash. dani: thank you so much. five of the largest companies on the s&p 500 are reporting quarterly figures just this week. bloomberg stocks editor dave wilson has crunched the numbers on how they affect the market. $9 trillion reporting today alone. is this going to have a massive read across through the entirety of the market? dave: the bigger question is whether, even if the numbers are
positive out of all of these companies, starting with apple, microsoft, and alphabet after the close today, what is it going to mean for the broader market? the s&p 500 really hasn't much in the week so far, so the question becomes what happens by the time we get to the end of the week and all of these companies have reported. looking at the history of when all five companies, including facebook and amazon, have reported in the same week, it is a relatively small sample size, but it doesn't necessarily bode well for gains as the week goes on because three months ago, you find out that the index fell each week when you had all of these reports.
so you have all of this focus starting today. the bigger question is what it means for the broader market. dani: we really -- alix: we really appreciate it. we are going to leave it there. the cdc is planning a 3:00 p.m. media update on the pandemic, and we have what looks like some early releases from that. the cdc is going to ask people living with unvaccinated people to mask up, and anyone who lives with the immunocompromised to mask up as well. potentially, "the times" reporting that the cdc will recommend some vaccinated people wear masks indoors. no real reaction in the equity market and the bond market. we are still kind of off the lows, off by about five basis point on the 10 year. does this start to change what individuals do, what we spend, and how we do it? that is going to be the key for
the markets. dani: especially if it means that companies letting their employees back in, if that slows down, we heard from apple, but the cdc said they wouldn't change their mask recommendation unless the science changed, so one of the big questions is what has changed in the science as the delivery and starts to spread. alix: that is such a good point. i wonder also if this becomes any kind of deterrent for those who are unvaccinated getting vaccinated. we are looking forward to that briefing. we will have more of those headlines as they cross. coming up, unequal vaccine access is widening the gap between advanced and developing economies. we will have more on the imf global outlook with g to go been off -- with gita gopinath. this is bloomberg. ♪
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it is the big vaccine divergence leading to economic divergence. the imf just released its latest world economic outlook report. the growth estimates are bang in line with where it was, but it is where they are getting the growth that is changing, upgrading the growth in developed economies, downgrading in emerging economies. with us now is gita gopinath, imf economist. walk me through how the delta variant played into your forecast for this year and next. gita: thank you for having me on your show. the delta variant is now the dominant variant in the world, and it has already affected our update. for instance, the downgrade for emerging and developing economies is being driven by significant downgrade, and that
is a confidence of the variant spreading significantly in that region. we have this in india, where the variant originated, and we have cases going up very sharply in malaysia and indonesia. this is one of the biggest factors behind the downgrade. we see cases going up in the u.s. and in other parts of the world where vaccine coverage are higher, so that will help with hospitalizations and deaths, but this is an important risk to our outlook. dani: it is stark how different things are than 2019, when we didn't have this threat present, when there were hopes of a global synchronized growth. what you are describing, it seems like we are very far away from that global synchronized growth. is there anything that can be done now to even out the growth, to lift up the developing nations? or is it too little, too late? gita: this is unfortunately the main message of this, which is a
dangerous divergence, and we are seeing that get worse in the most recent data that we are looking at. in fact, if you look out into 2025, we have almost no scarring for advanced economies projected and very sick and scarring for developing economies. in terms of what needs to be done first and foremost, we need to get vaccines to a different part of the world where we have less than 1% vaccination coverage. that requires the rich nations that have ordered many multiples of what they will need donating about one billion doses between now and the end of this year. not one billion doses for next year, but between now and the end of this year. that has to happen as soon as possible, with 200 50 million doses hopefully by september. that is the number one priority. the second, the source of the divergence is that the resources
developed economies have is much greater than the rest of the world. the imf allocation, if that is completed, that will help countries deal with the difficult trade-off they are facing right now. alix: it would be great if wealthier countries could donate all of that, but i am wondering if that thesis needs to change because of the pickup and the delta variant in places like the u.s. on the u.k. you feel like they will be reluctant now to part with those shots in case there needs to be a third dose. what is the impatient? gita: -- what is the implication? gita: we estimate that these countries with surpluses of around two blood -- around 2 billion doses is once they get to 75% coverage of their population. the u.s. has only fully vaccinated around have 2%. it can go all the way up to 75% and still have enough doses to send around. in terms of boosters, the science is still out there. there is no agreement on that front, whether boosters will be needed. it might be needed for some
immunocompromised individuals, but so far, the cdc has made clear there's no reason to think that boosters will be needed for everybody. dani: if advanced economies see little scarring going out to 2025, i wonder if the bigger threat the possibility of inflation and tighter financial conditions. where do you pin that risk in terms of economic outlook? gita: the inflation story is not one for the world. if you look at advanced economies, and if i take out the u.s. from most other advanced economies, inflation is just fine. it has gone up, but for many of them it is still below their targets. the u.s. is seeing very high inflation numbers, including core inflation. that is what is generating all the jitters. our study of the data tells us that much of this should be transitory.
we have a high inflation reading for this year of 4%, but by the end of next year we will get down to about 3.5%. we still have the pandemic. there could be supply shocks and breakdowns. it is figuring out how inflation expectations get set is a real challenge. there could be persistent inflation coming, the risk of persistent inflation, and in that case, if u.s. monetary policy moves much quicker to raise rates, that could indeed trigger a tightening of financial conditions which is costly for advanced economies where you have some very inflated valuations, but also, importantly for the developing world, which relies very heavily on financial conditions staying they way they are at right now. alix: let's pretend that the emerging economies do get the doses that they need. what is the upside risk to your forecast? how quickly can these economies
get back to whatever normal is that you are looking to model? gita: if they get back much faster, we have done multiple calculation's of this, where you could it a significant bump on the 1% to their growth, depending on how the coverage plays out. but that is the scenario you want. you want a scenario where we are closing the gap that we are seeing here. also because the bigger the gap stays, we are going to have more variance. the delta variant is the one we are dealing with now, but that could get worse. we have trillions more that could be added to the global economy if we get this right. dani: does it concern you to see various countries, here in the u.k. it is definitely existing, where we are seeing some of the restrictions start to relax and possibly spread more cases, and have different variants of coronavirus? does that scare you when you see other economies opening perhaps too early? gita: the u.k. is a country which has really quite sizable vaccine coverage, 70% in terms
of first doses. that is a pretty high mark. but yes, with risks remain, and taking a basic amount of precautions, i still wear a mask when i move around even though i am vaccinated. these are the kinds of cautions that countries should still keep in mind. we are not out of the woods yet with respect to the pandemic. alix: we are definitely not, and we are hearing today that we will get an update on updated mask guidance. the markets will he took that headline in stride. i am wondering if you see any renewed masked guidance, anything along those lines, or a pickup in the delta variant in the u.s. that continues, does that affect both at all? is it more the psychology of the individual, that we are ok, so we will not feel the effect? gita: if we compare this to what is happening in the u.k., the expectation would be that cases would go up sharply, but given
that there are reasonable levels of vaccination and high levels among the high-risk groups in the u.s., we shouldn't see the same thing happening in terms of hospitalizations and deaths. psychologically, it might still be the case that people remain confident about the recovery, they remain eager to go out and spend and go to restaurants for meals. but for now, these could be headwinds in terms of maybe slowing the recovery a little bit, but nothing at this point that points to some big reversal. dani: thank you so much for your time today. that is gita gopinath, imf chief economist and director of research. coming up, we turn to the earnings season and what to watch when apple, microsoft, and google release results after the bell. we will have all of that for you next. this is bloomberg. ♪
laura: this is "bloomberg markets." coming up, larry culp, chairman and ceo of ge. that is at 12:00 p.m. in new york, five a clock p.m. in london -- 5:00 p.m. in london. this is bloomberg. ♪ let's check in on the bloomberg furred word news. -- bloomberg first word news. i'm laura wright. on capitol hill, talks to come up with a bipartisan infrastructure bill have run into a number of obstacles. senators ended the day still trying to resolve differences over transit funding, water projects, and how much and spend covid money can be used to pay for infrastructure. lawmakers insist an agreement is still possible. the two koreas have improved prospects for a breakthrough in the stalemated nuclear talks. north korea's kim jong-un and south korea's moon jae-in have agreed in letters to restore relations.
they released what appeared to be coordinated statements calling for reconciliation on the peninsula. that happened on the 68th anniversary of the armistice that halted the fighting in the korean war. a stunning develop into the summer olympics in tokyo. american star gymnast simone biles withdrew from the team finals for an industry -- finals with an injury. all u.s. officials will say is that biles had a medical issue. global news 24 hours a day, on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i'm laura wright. this is bloomberg. alix: thanks very much. this is huge. when this headline broke, this was by far top stories because she competed on the vault, and basically did ewald that was less competitive that -- did a vault that was less competitive than she normally does, and then
ducked out of the competition. her replacement ended up falling on the floor, and they just couldn't pull it out. dani: i have to be 100% honest, i care about a lot of olympic sports, but the only one that i actually will deliberately tune into his whenever simone biles is competing. she is so impressive, and this is a devastating loss for usa gymnastics. one of the amazing things is that they had one of the young women compete on bars and beam, and someone else didn't know until isles dropped out. alix: i also take the dorky finance view of this, stealing it from my conversation earlier with david westin. this is also a big hit to nbc because not only do you have the japanese tennis player out, simone biles out, it is really like, why are you going to tune in of all of the big stars are out? dani: naomi osaka, yeah. alix: we don't know if simone
biles will be competing in other individual events. dani: now that skateboarding is over, i have nothing else to watch. [laughter] alix: exactly. i have nothing else to say to that. dani: i have nothing to add, so fair enough. [laughter] it is a really big week not just for the olympics, but for tech as well. we have microsoft, apple, and alphabet earnings today. let's start with apple. matt bloxham joins us. you have been all over the story today. apple, did they have enough fancy new tech to entice buyers in to make a strong court of them? -- strong quarter for them? matt: i think the iphone is going to come through, and they also lunched new imacs and ipads. the services business as well which is now over 20% of total sales come a higher margins than
the product. so i think there's a lot of focus on how well that business is doing. expectations are pretty high, so they might struggle to surprise people, but it is still going to deliver strong growth. alix: and we are seeing the stock lower into those results. also, microsoft is coming out as well. analysts feeling good about the stock as i.t. budgets benefit from the work-at-home trend. you are the more is our senior analyst for i.t. at bloomberg intelligence. what do you expect? reporter: for this quarter, i think both the growth rate and the margin is going to be good, largely because we have seen a massive pickup in i.t. spending over the last quarter. with microsoft coming in, we expect cloud to be good, gaming to be good. search should be good. i don't see any real way you falter in terms of the growth story. the gross margins are going to be fine this time. there is some accounting change that should help gross margins, but the real kicker for us is
going to be what the guidance is going to be both for margins going into next year, because this is going to be the one factor within our view that is going to drive the stock. dani: thank you very much. thanks for your time this morning. onto google, where alphabet is enjoying some of its highest earnings growth rates in recent years, yet its outlook might be slowed by an antitrust headwind. , our senior analyst at bloomberg intelligence, joins us. what is the risk here? mandeep, we might have a little issue with your mic. when it comes to google, we had not just twitter earnings, but snap earnings as well, snapchat seemed like it had been left for dead. it was so unloved by the market. but the advertising revenue just smashed expectations, so you've
got to imagine the bar is set really high for google. alix: exactly. the revenue is still expected to rise more than 45% from a year ago. if that is the case, that would be the fastest quarterly pace since 2007. the comps will be easing in that respect, but you will also want to see how the youtube monetization is going and how ad sales are going. the readthrough, as you mentioned, from snap and twitter, quite good. so the expectation is that they could really deliver, but again, these stocks have run, so how much of that is baked in? dani: if i can put on my broader stockmarket hat here, this is such a large part of the market, these big cap tech. they have overtaken in terms of weight for the market. it is not just important for these companies, but if you are an owner of the benchmark, it is going to be important as well. we have mandeep singh back with us of bloomberg intelligence. let's start where we left off. what is expected out of google today? men deep -- mandeep: we know the
advertising sector will be really good, given how well snap did. cloud will be another one to watch out for. we are in that sweet spot of pretty good cloud spending environment, and that will show in the cloud segment. investors will focus on plowed margins because that has been an area of concern. the other thing i would caveat here is given what is going on in china right now with all of the focus on data and targeting big tech, this is a big risk for both alphabet and facebook, and that is one area i think investors would once more clarity on. what if there are more data privacy restrictions? what does that mean in terms of of of its business model when it comes to advertising, and how does it translate into long-term growth? those are some of the questions, but fundamentally, the business is strong. you are going to see margins expand, given the pricing
♪ laura: it is time for the bloomberg business flash, a look at some of the biggest business stories in the news right now. the petrochemicals division at exxon mobil is supercharging its financial turnaround. the often overlooked segment of the oil giant's business will probably post record high earnings this week because of the surging prices for plastics. demand for products such as packaging and materials held up
during the pandemic and have risen during reopening. china's tencent holdings is expanding new user registrations for its wechat services. that had to uncertainty for the tech sector in the midst of a two day selloff. investors have left tencent and its peers after china announced the toughest ever curve on industry. beijing also issued a series of other edicts for governing online activity. goldman sachs plans to offer a cryptocurrency related exchange traded fund. the fund will focus on decentralized finance and blockchain companies. numerous companies have been going public in recent months. that is the bloomberg business flash. alix: thank you so much. appreciate that. i found that interesting. it is in some ways no surprise that goldman sachs asset antigens will be getting into it because you've got to find a way for them to meet it.
i just feel like it is going to be quite confusing for investors to understand what you are owning until those rules and regulations are clear. dani: that is such an excellent point. presumably a lot of the companies in this index are different, they are involved in different parts of that as well. of course, that will make a difference in terms of how it performs. i do want to bring us some baking lines on moderna, saying that manufacturing partners face delays outside of the u.s.. of course, we know there are a lot of supply chain issues throughout global corporations, but of course, it is a big issue if it means it is also hitting the health care supply chain as well. alix: this come as we know moderna is trying to expand their child vaccine trial to get some more safety data. they say the problem isn't -- is due to some lab testing, and
could cause some short-term supply chain issues. that stuck falling to session lows on manufacturing partner delays. that is part of the covid story, but you also wonder how this one's up affecting distribution to emerging countries which is exactly where the imf says it is a big shortfall, which will be weighing on growth as the global economy tries to pick up here. dani: i think your question to eat a -- two -- to gita was on point that the concern amount delta might mean that they don't give to developing nations. i wonder what is the picture if you know that a lot of these vaccine manufacturing can face issues on the supply chain. does that mean that you hold even more closely tied to the vaccines you own and make it more difficult to distribute them to developing nations. alix: the stock off by over 3%.
moderna saying their manufacturing partners are facing some delays outside of the u.s. due to some lab testing that will cause some short-term changes to supply. that's get an overall check on the markets because the s&p did close at a record yesterday, and we are off those highs, but it is really big tech getting hit. my thing is, if you have the 10 year real yield at a record low, 100 14 basis points was the low earlier this morning, how do you not by big tech -- 114 basis points was the low earlier this morning, how do you not buy big tech? earnings coming out. what do you do, particularly when it comes to exposure to china, as those stocks get hammered? mark mobius will join us, mobius capital partners. this is bloomberg. ♪
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