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tv   Bloomberg Surveillance  Bloomberg  July 29, 2021 8:00am-9:01am EDT

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>> unless they want to start buying equities or putting on cheerleader outfits, i am not sure that the fed is going to stand by. >> some of the more aggressive timelines for signaling the beginning of tapering and perhaps starting that, you have to push those back a little. >> monetary policy cannot combat the major forces in the economy. >> we have shown that if you given a fiscal stimulus, you can get a strong economy. >> having some cash to deploy and looking for selloffs is a good idea. >> this is "bloomberg surveillance" with tom keene, jonathan ferro, and lisa abramowicz.
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tom: good morning, everyone. a simulcast, bloomberg radio, bloomberg television. after the fed meeting, we move right back into markets, signaling whatever your view is. as we heard in the opening, there's a few views out there. jonathan: i like that. markets signaling whatever your view is. next stop, payrolls. we are looking for something close to one million. we need a few months of that to set us up for the taper debate. we have progress towards substantial further progress towards their goals. tom: the bundesbank fear, i know your terminal is a little slower than mine, german inflation rate rises to 3.1%, above the estimate of 2.9%. that is the angst of the inflationistas, isn't it? jonathan: just look at the forecast for the ecb for the next couple of years. cpi 1.4% 2023.
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the german central bank is going to have a tough time arguing the doves over to their side. tom: we will try to cater our opening to get to geoff yu as fast as we can. lisa, your observation on chairman powell. was he successful? lisa: he was successful in terms of doing nothing in terms of the market, and that they are going to start talking about the taper debate. however, very confusing in terms of the bond market response, but the bond market will look like, and what they actually mean by substantial further progress. tom: renew didi this morning. review what is going on. jonathan: dow jones out this morning, thing perhaps they would go private. then reuters comes out and says no. the company itself says no. ipo price is 14, trading now in the premarket.
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still, on this name specifically, we don't know enough information about what this company knew before they went public and what they failed to disclose to investors. we so often cut clear answers to that. the story is not over. tom: the movable feast here is the market reaction, and maybe some of the childish interpretation into very sophisticated political economics. geoff yu has made a career of this at bny mellon. why don't you bring in geoffrey yu with his perspective synthesizing all of this together? jonathan: geoff yu joining us from bny mellon. as always, you are going to be super helpful working the -- working your way through this issue for us all. tell us what is worth ignoring. geoff: firstly, pay attention to differentiation. what you are seeing with individual companies in china, individual sectors, the eglin
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tory crackdowns, some have to do with international capital involvement, especially in the education sector, for example. there is so much money pouring into chinese families to get there kids ahead, it is -- into these from chinese families trying to get their kids ahead, so they are trying to treat this on an individual basis. the second part of it is this framework of international investors investing in china. how should it be done? should it be in the u.s.? should it be closer to china? here's where geopolitics could come into the fray. we are talking too much about the equity market right now, talking too much about individual companies. what about the growth environment? no one has talked about more that may come. no one is talking about the delta variant starting to spread in multiple provinces. growth expectations are coming off, and this is what we need to be attuned to heading into the second half of the year. jonathan: the degree to which
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the issues in the property market are linked to perhaps a downgrade to the outlook on the chinese economy. geoff: two things here. firstly, any day now, normally around the end of july or early august, we get the 2021 financial stability report from the pboc. this is a brilliant report, and they stress test the entire banking system. last year's numbers, if you have this 15 percentage point rise, you could see added ratios within chinese banks go from 15% down below the regulatory limit. individual companies are looking at exposures as well. is it manageable? yes. is it systemic? probably not at this point, but the damage to consumer expectations will drive grow slower as well. tom: i look at where we are, and it is not a crisis, but this moment for china, this moment for the pacific rim, and the elephant in the room is we don't
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have hong kong anymore. it is a different hong kong. how do you perceive the western banks, and i don't want you to speak for the management of bny mellon, but how do the western banks adapt and adjust now that hong kong is different? geoff: they would adapt to looking at china as a whole for the new opportunities. look at what the five-year plan details. it was welcoming foreign investment into china, welcoming foreign funds to drive china's sovereign reliance. at the end of the day, it has to be done in a way which is manageable and does not introduce systemic risk or other risk. going back to the education issue, this is not a financial systemic risk or something like that. it is in the prism of falling birth rates and demographics. that is a serious challenge. if foreign investment is seen as
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broadly damaging, any regulator will bully, they are going to ask regulator globally, they are going to want to do something about it. we have more index inclusion. all of this is going to happen, just calibrated at the right pace because even with good intentions, you can actually end up with bad outcomes. lisa: this is one reason why a number of investors said in particular in the education sector in china, but other shares as well were on investable following -- work -- were un-investable given further crackdowns. do we have a sense of how far or not they are willing to go crackdowns, with restrictions in specific industries that could further roil markets?
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geoff: i think china is learning, like any regulator, this is the new environment of how the international community is in certain sectors. so they wanted to gauge the market fallout as it has become excessive, and you saw a three-pronged launch from the main financial papers in china yesterday expressing that over the medium to longer term, china is welcoming global investors to that. of course, they don't want to damage sentiment either. know how interlinked it is, and the company needs to stay interlinked. so they will learn as well from this, and may be able do it differently as well. so just pay attention to the strategic initiatives. they want to communicate. something somewhere happened a few years ago to the childcare sector, exactly the same language, not allowing businesses to make profit and businesses to make money. they wanted to smash the
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nationalize framework. we are learning by doing, as we all are right now. jonathan: we spend a lot of time talking about the risks to frame the situation. where do you want to put capital to work, considering everything you just said in the last several minutes? geoff: firstly, on renminbi, they are worried about cpi and the ppi divergence. exports are still very important, so it is probably not unwelcome. in europe, i think the ecb has done very good for european equities. i think those trades on a hedge base will work by entering expectations. u.s. and the dollar, we are not ready on the dollar strength by any means. it is still going to lead the way in policy, so these carry trades, you want to own dollar carry especially in asia i dollar as well. jonathan: interesting stuff.
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geoff yu of bny mellon, a strategist i have known for a long time and one of the sharpest in the city, that's for sure. tom: he synthesizes things -- folks, this is something we try to do with all of our guests. it is one thing to be an expert, but as you mentioned, the ability to synthesize is really important. jonathan: not giving up on the dollar call. right now, dollar index 92. lisa: a lot of people saying the fed has to be differs mover when it comes to raising rates among the big developed market banks. what is going to pressure the dollar weaker? jonathan: when you think synchronized global growth, that was the call at the start of the year. we were looking for global secret as growth. naturally, we all thought it would engineer a weaker dollar. that was the consensus view. the dollar -- the euro-dollar topped in the first week of this year. tom: we haven't gone there this morning because we have spent too much time looking at the
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didi news up and down. given the news from madame lagarde and the rest, is the angst of a $1.25 euro now at $1.22? jonathan: we are not there yet. not even $1.19. that has been a concern of theirs for a while now. they've got much bigger concerns. the fx channel is not going to solve things for them. tom: or for china. jonathan: the forecast on the ecb of inflation coming down to 1.4%. we don't want to get into an argument over to basis points. we will let the central bankers do that. but the ecb is clearly not happy with that. tom: same with women be in china. yuan -- with renminbi in china. yuan is not going to fix things for china. jonathan: your equity market up nine, advancing 0.2 percent. heard on radio, seen on tv, this is bloomberg. ♪
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leigh-ann: with the first word news, i'm leigh-ann gerrans. the u.s. has voted to move ahead with that infrastructure package just hours after a bipartisan group of senators and president joe biden reached an agreement on a $550 billion spending plan. lawmakers expect final passage to last into the weekend and possibly even next week. meanwhile, senators are looking at cryptocurrency taxes as a way to help fund the infrastructure plan. the proposal with those -- proposal would impose fees on cryptocurrencies for the irs. it could raise up to $28 billion. google says it will push back its official office return to mid-october. plus, workers at its campus will be required to be vaccinated. lyft is postponing its return date to february.
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masks are required at most apple stores in the u.s. it was one of the most anticipated listings this year. robinhood raised $2.1 billion in an ipo priced at the low end of the market range. that gives the trading company a market value of just under $32 billion. robinhood shares begin trading today. citigroup's asia-pacific pacific wealth management union just posted -- management unit just posted one of its best quarters on record. the bank has added several hundred wealth professionals in hong kong and in singapore this year. 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 leigh-ann gerrans. this is bloomberg. ♪
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>> i have enough confidence in the market that most of these
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bottlenecks will be overcome. we saw that in the case of timber prices. went way out and then came way down. is there any fundamental reason that we should expect this to be other than transitory? i think the answer is no. i think that is where the imf is. that is where the fed is. jonathan: from new york city, good morning. alongside tom keene and lisa abramowicz, i'm jonathan ferro. equity futures advancing about zero point 2% on the s&p 500 this morning. tom: if you want to clear it up, you can go to wikipedia and see the theory the pros use off of what chairman powell wrought yesterday. one of those experts on the theory is william dudley, the former president of the new york fed, obviously for years at goldman sachs. you separate the men from the boys, the women from the girls with the logic theory of
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necessary efficiency in an undergraduate class. you speak of the necessity and efficiency of chairman powell yesterday. what would you say he said yesterday that was not sufficient? william: i would say he did a good job edging closer to the notion of we are going to start to taper, but not so much that it put the markets on edge. the general expectation at this point is that that probably won't start, they probably won't make the announcement of tapering until september. where i would say the fed hasn't gone far enough is the change in terms of their standing repo facility. they could start to have a standing repo facility, but they capped its size at 500 billion dollars and limited access to only primary dealers. the access should be considerably broader than that
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to support the function in the treasury market. also, they need to make changes to the capital requirements so that when the fed buys treasuries and issues morgan back -- issues mortgage backed securities, that doesn't interfere with market functioning in the treasury market. tom: these are delicate phrases, and we appreciate the candid former fed official. if the market goes above $1 trillion, how will the market adjust to that? william: there's no magic number where if the fed is soaking up $1 trillion of repose through their rivers overnight repo facility, that is not a problem. but i think it does tell you that there are consequences of the fed's asset purchases. banking systems are potentially awash in reserves, and that is making the leverage ratio more binding, which is constraining bank activities, and also
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causing banks to essentially push away corporate deposits by making changes to how the leverage ratios are calculated. i think they should do this sooner rather than later. lisa: is the treasury market as it is broken? william: i don't think it is broken. i think it just needs more voted suspenders. as a report published yesterday points out, a lot of things need to be done to the u.s. treasury market. a central clearing of treasuries for customer trades would make the market a lot more solid. there are talks about increasing the transparency in the u.s. treasury market. so having a standing repo facility is a good start, but there's a lot more to put the u.s. treasury market on firmer footing. lisa: this is the underpinning of what we pay for, all of the loans that we take out, underpinning the function of wall street. there's a question about the functioning of the treasury yield as an indicator right now.
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even fed chair powell said he didn't quite understand why yields were where they were, and a lot of analysts have raised the issue of liquidity, the fact that there are these malfunctioning aspects of the bond market that make it very difficult to get a clear signal from treasuries. do you think that is a factor in yields that are persistently low given the inflationary outlook? william: i'm surprised by how low long dated treasury yields are, given the fact that the economy is of no recovery mode and the fed has set -- the economy is in recovery mode and the fed has said they will remain patient. i thing what is happening is quantitative easing is very powerful. as the federal reserve buys more and more assets, that creates deposits in the banking system that people don't want to hold, and if they don't want to hold those deposits, they bid up other financial assets. so i think we find quantitative easing is very powerful in pushing those prices. tom: we toss around the phrase
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reaction function in the media like it is a mint. there's a mathiness to which. can we generate constructive reaction functions given the wall of liquidity, or do we need to become inerred to the idea that we will have suddenness over the next two, 3, 5 years? william: we will have some suddenness in the fact that the fed will go from maximum monetary policy stimulus to something else, and at some point the fed is going to lift the rate. at some point the fed is going to try to minimize that dumb function by communicating clear -- that jump function by communicating clearly, and that is going to take place in a gradual and organized type of way. tom: before we came on, we were alluding to alan greenspan and arthur burns. you just assume, and i say this very carefully, that we have, as
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we become less accommodative, a measured greenspan-ian approach, or do we go back to a market that is more ad hoc like in the burns era? william: i hope we don't go back to the burns era because at that time, the fed was very late in terms of raising interest rates and pushing down inflation. that would be a very bad model. i think what the fed is doing is basically saying we don't really know exactly where full employment is, so we want the economy to run a little hot. we can find out where full employment is and make sure we employ the maximum number of people we can without having long-term inflation problems. jonathan: always good to get your views, especially after the fed has met. bill dudley, former federal reserve bank of new york president. there is something i am calling the dudley argument, which is the longer they wait, if they are going to be patient when they start, the argument bill has made repeatedly over the last couple of months is that when they start, they might have
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to move more quickly than people anticipate. just the idea that it will be a slow start, but to won't be as shallow as some people expect. tom: with this release of the essay today for bloomberg opinion, i know we are biased, bill writes for bloomberg opinion, but he is the senior public official driving the debate. jonathan: we will hear from the deutsche bank cheaper,'s -- deutsche bank cheap economist -- deutsche bank chief economist on this in a few minutes. advancing eight or nine points on the s&p, advancing 0.2%. in the bond market, yields higher by two or three basis points to 1.2576%. euro-dollar positive 0.25%. wti, 70's you dollars $.62 -- $72.62. after amazon, can we say earnings season wraps up? tom: no, no.
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dave wilson keeps going. jonathan: dave wilson keeps going. how long for? tom: like three weeks, at least. jonathan: you think it is overcome alisa? -- over, asa? -- over, lisa? lisa: yeah, i think it will trickle out. jonathan: on radio, on tv, this is bloomberg. ♪ erg. ♪
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jonathan: for our audience worldwide on tv and radio this is "bloomberg surveillance." alongside tom keene it lisa abramowicz i'm jonathan ferro. waiting for equally -- waiting for economic numbers in america. yields are higher by three basis points on 10. it is the wrong side -- the wrong kind of upside supplies -- the wrong kind of upside surprise on jobless claims. waiting to see if we get a revision. the wrong kind of upside supplies. 400,000, the median estimate 385,000. gdp, 6.5%. downside surprise. 8.4% median estimate. tom: will have to watch the
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market reaction. two important data points. two weeks in a row of challenged claims. you heard me say the chart is elegant, it is not elegant anymore. a revision off of 419,000 last week is important. good morning david rosenberg and others cautioning over enthusiasm over present gdp and jobs. 8.4% to 6.5%. jonathan: not what we were looking for. here is the price action. equity futures unchanged, up six on the s&p 500 advancing little more than .1%. into the bond market, yields were higher by public basis points, now higher by just one. 1.2442 on the 10 year. tom: chairman powell looks
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brilliant off of this. we just got the revision. a little bit above where it was last week. this is two weeks in a row. not that it is a big deal, but it is not moving in the market direction. i don't mean the equity market, i mean the thinking about a constructive american economy. jonathan: we have payrolls next friday. this is the language of the federal reserve. the economy has made progress towards these goals and the committee will continue to assess progress in the coming meetings. meetings, plural. we have some time to work through these data. lisa: a lot of analysts say december is the most likely time when they will begin their tapering. the two year yield is where we are seeing the biggest reaction. more than gdp is jobless claims that get peoples attention because this is where the fed focuses. jonathan: upward revisions from
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the previous month. we were looking for a much bigger decline from the previous read. down to 400,000, just not down to the 385,000 we were looking for. the gdp read, 6.5%, we were looking for 8.4%. tom: consumption is there, we will get a break out that data as it comes along. that goes to where david rosenberg is, which is not the numbers we are looking at right now, but where are we right now? that is a raging debate. let's go right to this with matthew was that a. this data, totally unfair question. does this data allow deutsche bank to adjust to a more cautious economic growth?
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matthew: thank you for having me. i do not think it changes too much. we will have to see the details. it looks like consumer spending was stronger than expected in q2. it is a quick -- it is a key question for the trajectory, it is a lot about inventories. we expect to get a big boost in q3. this data is backward looking. it is q2. what is most important for markets is the labor market data and the stalling on the jobless claims we have seen is an important development. it is evidence of some stalling out or some softening in the improvement we are seeking. -- improvement we are seeing. if that continues it is a develop it from the fed perspective. jonathan: for many people september and q4 is huge.
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it will be massive to shape some of these debates. goldman out earlier suggesting the service sector recovery will take more time. where are you in the team at deutsche bank on that argument? matthew: this is the area of debate. coming off durable goods spending, housing coming off, we anticipate services will help lift the economy to a stronger growth profile. obviously the return of covid at the delta variant is the downside risk to that. i view it as a downside risk, not something that impacts -- if we look back at these past waves, they were not as impactful as we were anticipating. i anticipate that will be the case again. when we look at the states that have lower vaccination rates, there less likely to bring back restrictions and less likely to see people pullback from
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economic activity. it is no doubt a downside risk to growth, but that is how we are viewing it, not affecting our baseline outlook. lisa: if you dig under the headline of the gdp number, are we getting whiffs of stagflation? residential investment spending fell about 10%. it had to do with supply chain issues and the high prices. are the high prices a headwind to growth at this point? matthew: in certain areas they certainly are. housing is one. there are supply chain issues but we are seeing demand, off -- we are seeing demand come off. demand is being impacted. we have seen durable goods spending was 15% above where it was pretty covid. housing jumped above pre-covid trend. this was that unusual recovery and unusual recession.
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we anticipated the sectors would come up even if we did not get the price pressure. the service sector is critical to the trajectory of the economy. lisa: do you think the weakness is indicative -- i do not want to call 6.5% growth week as, but we have gotten disappointment after disappointment. does that indicate a trend that will carry into the end of the year, or could things change in september when kids supposedly go back to school? matthew: from the labor market perspective we are all anticipating that will help to open up labor supply. we have focused on covid as being a big driver, not necessarily unemployment insurance benefits. whether or not schools are able to reopen significantly in september in person is a critical question for the labor market outlook. at this point we just do not know. we'll have to see how the
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variant evolves over the next couple of months, how policy evolves. that will be an important consideration for getting back to maximum employment with these labor market numbers the fed wants to see. jonathan: there's a lot we don't know. there a couple of things we can take a good guess on. this is what luke kawa had to say. the drag from q2 is not sustainable in the slightest. yesterday's drawl equals tomorrow's demand. that seems to be what has led us to the downside surprised. matthew: absolutely. we were below consensus on the gdp print. the key driver being a big drag from inventory. we know we have it the retail and auto sector. very low inventories. i think we can see in these numbers that final demand is actually pretty strong, you should get a reversal in inventory that should help lift
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your q3 growth numbers. michael: -- tom: when you use the word jean-claude trichet loves to use, that is diffusion. there is a mystery about the diffusion from a good centered consumer over to a service sector consumer. we see that in the data or it does that wait for another quarter report? matthew: we have been seeing it in the monthly data. no doubt we have seen retail sales in nominal terms have flatlined over last couple of months. adjusting for prices given how strong pricings have been, we've seen weakness in real spending of goods. that was to be anticipated. we were well above trend and price pressures are obviously having an impact. we expect the handoff to the services sector to continue over the next couple of months. we are still below where we anticipated we would be in leisure and hospitality and all
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of these other service items. that should continue to be the key driver for growth going forward. jonathan: met was eddie of deutsche bank, good to -- matthew luzzetti of deutsche bank, good to catch up. -- eventually inventories will need to be brought into line with final demand, when that happens topline gdp growth will surge. this is good news for factory production." some of the takes from wall street off the back of the mess. -- off the back of the miss. the consensus view is as the year grows older the supply side will heal in a more profound way and maybe we can sort out some of the issues. jonathan: the part -- tom: the partition between optimism and the more cautious is when does the service sector kick in? maybe we will see indications towards where we are in q3. jonathan: to what extent has that been delayed given what
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we've seen of the couple of weeks? lisa: especially because we are not seeing the friction in the labor market. there is a forward look in the gdp figures that is more positive. the jobless figures stubbornly high. you wonder why. jonathan: we will have that conversation in about 15 minutes with subadra rajappa. david kelly of jp morgan joining us as well. your equity market not doing much today. seven points on the s&p 500. advancing a little more than .1%. the dollar breaks down a little bit. back down through 92. on radio and tv. i will leave the space for you. are you good? tom: didi. jonathan: you enjoy your time off. i will see you monday. lee-ann: the $550 billion
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infrastructure passage has cleared its first area of capitol hill. the senate voted to begin consideration of the bill. 17 republicans joined all democrats in voting for the measure. lawmakers expect the final passage to last into the weekend and even next week. the new chair of the federal trade commission is bowing to return the agencies trust busting roots. she told reporters she intends to use the fcc's -- the ftc's full arsenal to take on companies that prevent competition. she is not afraid to take on risky cases officials have shied away from in the past. china may be preparing for a period of prolonged tension with washington. beijing's new ambassador is a veteran diplomat known for pushing back against western criticism. they most recently served as vice foreign minister. he told reporters he will work to put u.s. china relations back
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on track. it was one of the most anticipated listings this year. robinhood raised $2.1 billion in ipo priced at the lower end of the market range. that gives a market value of just under $32 billion. shares to begin trading today. -- the company signed off a record number of new internet customers. there was a third of -- comcast continues to lose cable customers as more people turn to streaming. still 399,000 video customers who took the survey are fewer than expected. global news 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. i am leigh-ann gerrans. this is bloomberg. ♪
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pres. biden: a straightforward
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solution. support and grow more american-based companies. i can sum it up in two words. buy american. tom: the president of the united states talking buy american. it is an electric car company and it has been statements made from the gentleman from utah who basically came out of school as a sales and marketing executive and now is a bit challenged. he is trevor milton. the u.s. attorney in new york on seals and indictment against trevor milton. much more on this. i believe there is a scheduled press conference at 11:00. bloomberg will be following this on the island of manhattan this morning. right now, this is really important for your infrastructure, we go to the gentleman from flint. dan guilty is someone -- dan
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kildee is someone with a view of america different from inside the beltway in washington. dan, you and your family and your constituents have lived the worst water crisis in america. you know better than anybody about lead pipes, about water structure. is this bill good for flint, michigan? >> it is hard to say. it is a step in the right direction. the question is whether or not there is enough of it emphasis on water infrastructure to prevent the next flint, michigan from happening. ironically, flint has some advantage in the fact that the failure of flint's infrastructure occurred in public view. i was able to get help for flint even when i was in the minority to protect the red -- to protect the lead pipes. will the warning that flint
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provided the rest of the country be heated? will we have enough in the legislation to replace every leadpipe in america? i'm not sure if we do, but may be is a step in the right direction. tom: in the third world prices of flint michigan and water there was no discussion of pay-fors. it is like let's go and let's fix it. how do you respond to the juvenile debate on how we will pay for this? rep. kildee: the point is to point out when it comes to water infrastructure or other infrastructure failures we will all pay for it. you can pay now or you can pay later. flint is a good example. if flint seven years ago had $30 million or $40 million available to switch out its red pipes, we would've saved what is approaching $1 billion in costs of compensation to victims
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fixing the infrastructure after it is broken. yes we do need to come up with a way to pay for it, but we cannot start with the premise we will not pay for it if we do not do it. if we do not fix our infrastructure, there is a big bill coming our way, much bigger than the cost of fixing it in the first place. jonathan: the 550 -- lisa: $550 billion is not that big when spent over eight years. how much in the conversations you have and the negotiations that burn the midnight oil as you eat tacos and chicken parmesan each night, how much is connected to the 3.5 truly dollar plan senator sanders is working on right now? rep. kildee: it is connected because if we have a bipartisan deal, many of us have been committed to do as much as we can a bipartisan fashion, that does not meet our work is done. that pushes more of what we need
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to do into a reconciliation package. the concern is that some of our senators who seem willing to work together on a bipartisan piece get cold feet and we think about the reconciliation package. i am talking about democratic senators. we have a lot of business ahead of us. if we do not fix this stuff, it does not mean it goes away, it does not mean china is not spending 10 times what we are as a percentage of their gdp on infrastructure. what i'm trying to convey to my colleagues is we do not have a choice. we have to do this. we cannot have an infrastructure bill that says one out of four americans get to have 21st century infrastructure. the rest of us have to compete with 19th and 20th century infrastructure. sooner or later we have to fix it. more of it may have to be pushed into that reconciliation bill if we do not get enough in the infrastructure package. lisa: which raises the question
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about unity among democrats. there's been a lot of talk about the splintering of the party, the progressive versus the moderate wing. given the conversations you are having, how difficult will it be? can you characterize whether people are coming to a more unified position? rep. kildee: it is hard. one of the hard things about having a party with a lot of diversity of thought is we have a lot of diversity of thought. the tough thing is if we are all being asked to compromise, we all have to compromise. we cannot have a situation where somebody on the left says the right has to compromise or the middle have to's compromise. if we are going to come together everybody has to acknowledge the final product is something that if they were doing it by themselves they would not do it. i am not sure we have completely landed that message. too many folks are taking the absolutist approach. without my priority i will not help. that is not the way this place
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is designed to work in the american people do not care what the excuses are. they want to get this work done. they want to get the work done that affects their lives. the beltway arguments are of no interest to the people i represent. tom: i have 14 more questions but we do not have enough time. dan kildee of flint, michigan. the congressman from the fifth district in michigan. lisa, what is so interesting about that conversation, this is a guy with family heritage of the district and he is part of the free thought caucus in washington. i think there are 12 members. that is all they could get, looking for reason and science within the state of public policy. lisa: they are leading when it comes to driving some sort of bipartisan agreement. interesting to see how they will rankle all sides. can i say something?
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as we were talking mastercard released earnings and this is interesting. card use in the u.s. sword 36% -- card use in the u.s. soared 36% and purchase volume climbed to $1.47 trillion. the idea of the consumer is strong. with more supplies chain constraints and getting inventory holding up some of the growth, but to me as far as the consumer goes they have a lot of money and they are spending it. tom: there will be a second look. i agree with a lot of the people , jon ferro mentioning neil dutta earlier. let's focus on where we are right now. dare i say there is a huge mystery to q4. nobody has a clue. jonathan: a lot of this has to do with how quickly some of the frictions get evened out. corporation saying it could be a long runway.
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these are the push and pull effects. tom: the news through the day on the pandemic and on masks. part of the conversation, "balance of power" at 12:00 noon with the senator from florida, rick scott. stay with us. this is bloomberg. good morning. ♪
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jonathan: good morning, good morning. the wrong kind of surprises on economic data in america. 30 minutes until the opening
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bell. "countdown to the open" starts right now. >> everything you need to get set for the start of u.s. trading. this is "bloomberg: the open" with jonathan ferro. ♪ jonathan: from new york we begin with the big issue. talking about tapering. >> the primary objective was legally in terms of tapering. >> take some steps to get them out of the way. >> talking about tapering. >> prepare the ground for tapering. >> the fed was reasonably clear. >> some clarity. >> the markets are fairly stable. >> i did not hear any encouragement to the view of an early tapering decision. >> they will not be doing any
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