tv Bloomberg Markets Americas Bloomberg August 18, 2021 10:00am-11:00am EDT
♪ guy: wednesday the 18th. 3:00 p.m. in london, 10:00 a.m. in new york, 30 minutes into the trading day in the united states. welcome to "bloomberg markets." are you ready for your third shot? alix: exactly. i guess the question is when is that going to be. but it is coming, that is for sure. the market is starting to price data in potentially a little bit. cyclicals are the ones getting hard with the s&p materials, industrials lower. overall, the s&p is flat after one day of buy the dip, a second day of buy the dip, but then we did in yesterday lower. supply coming on in the 20 year old little later on.
still different than the buying we are seeing in europe. volatility staying pat around 17, 18. we had seen a rise higher as we were trying to do just what it might mean if we have a stay-at-home recovery, what it might mean if we have to get that booster for the fall. crude bucking the trend. cyclical commodities like copper, iron ore, steel, they are all getting hit quite hard today. we'll able to eke out a gain. i haven't even mentioned the fed once. guy: are the minutes today actually relevant is the question i am increasingly grappling with. 2:00 p.m. we will get the minutes, but incredibly rearview mirror. it feels like the world has changed an awful lot over the last three weeks, doesn't it? the delta variant certainly has changed the narrative. we are seeing collapsing confidence across a range of metrics. u mich is the data that stands
out on this front. has the game changed i think is a question we need to ask mike mckee. over to you. what are you expecting? michael: i wish i had a great answer for you. we are expecting the minutes to have some provisioning, but they are not as useful as we thought they might be. this greenline is when the fed last met. this is when the minutes are going to be representing. look what is happened since then. you can see the seven day moving average of covid cases just going up, up, up. this is the university of michigan sentiment index, and how it collapsed. we saw the sea with manufacturing in the empire index yesterday. today we get some disappointing news on housing starts, so maybe there is an impact. we just don't know. if there is an impact, does that mean the fed wants to wait a little bit longer to taper? the other question is what if it is not. what if there is no impact? what if it is still inflation
that is the fed's concern? take a look at the personal consumption expenditure index. that is the fed's favorite. we have watched the inflation expectations numbers hold steady and actually come down some. if the fed were to move up tapering, would that scare the markets into thinking there is an inflation problem, and then inflation expectations go up? this is how they break down at this moment. the we are not there yet party has two important members, powell and williams. clarida is not saying it should be in september. as long as the leadership is looking at it as we are not ready yet, they may be the minutes aren't going to suggest anything about an earlier taper. what we might get the idea of the fed telling us something about how they will taper. you can see here the last time they tapered, this is the treasuries they own, it took two years. will they do it faster this
time? a lot of fed officials in those pictures talking about me be we should do it in eight months. that is something we might get out of the minutes this afternoon. alix: mike at, thanks a lot. you look at new zealand, and there back on a taper talks. they had one case and they had to end up shutting down. president biden is going to unveil plans today that will give more americans coronavirus vaccine booster shots. the plan calls for high-risk groups including health-care workers and the elderly to get a third shot as soon as next month. here with the latest is max nisen, bloomberg opinion columnist. what are the details we are going to learn today? max: some of these have been laid out already, but we will get confirmation and a little bit more information of what we've heard from reporting, that the administration is likely to recommend a booster shot not just for the elderly and for health-care workers, but possibly for all people over the age of 12 from eight months
after their second dose. that is very broad, and i think it is more of a precautionary measure, one aimed at limiting the impact of delta to the greatest extent possible, rather than one that i think is necessarily entirely supported by the data had this, which shows there is some waning efficacy, but most of that remains in symptomatic infection rather than severe disease. while this will reassure people, do keep in mind it comes at the expense of the global vaccination effort, which is something of an opportunity cost. guy: absolutely. you look at what is happening in israel, and the high number of cases they are seeing and the mortality rate climbing. i was reading the "jerusalem post" earlier, talking about the idea that maybe the next two weeks are really critical. so we will see what happens on that front. heavily vaccinated countries looking at boosters as well. max nisen joining us.
we will get some announcements and continued to cover those as we work our way through the day on that third shot. target and lowe's each beating the street in terms of estimates for the second quarter. lowe's predicted its good margin growth would continue. abigail doolittle is looking into the results. abigail: certainly an interesting week for retail. you were talking about the mixed results for lowe's and target. target is down despite the fact they beat, but their growth is slowing, so investors not liking that. lowe's, on the other hand, beat and raised its margin. relative to target, one issue they are having is as we come out of the pandemic, you can see for online, last year 195% growth. the first order of this year, 10% growth. as the delta variant starts to rage, will they be able to ramp that up?
one issue retailers have is the pandemic room. as we go into the terminal, we will see that there was huge comp sales growth for both target -- excuse me, for lowe's and home depot, both above 20% throughout the pandemic. now that is a very difficult comparison for both of those companies. will they be able to deliver? alix: you can understand that part, but home depot did set the bar pretty low for lowe's. thank you very much. coming up, we are going to dig more into earnings, plus the stock market. are we looking at the end of the pandemic room? target's slowing growth sales could be a signal of weakening consumer demand. kim forrest of bokeh capital partners joins us next. this is bloomberg. ♪
ritika: -- laura: that's check in on the bloomberg first word news. afghanistan's president is now in the uae. president biden will unveil a plan today that will give more americans coronavirus vaccine booster shots. it is a move that has led to criticism that the u.s. is hoarding doses while poorer countries suffer through the pandemic. the president's plan calls for high-risk groups, including health care workers in the elderly, to get a third shot as soon as next month. the president of china has put the country's wealthiest citizens on notice. xi jinping offered an outline for what he called common prosperity. it includes income regulation
and redistribution. china's communist party has made it a goal to end party and build a moderately prosperous society. 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: thank you very much. let's get becky target. it did beat wall street estimates, despite a slowdown in growth. the target cfo spoke to bloomberg earlier following those results. he talked about delta's impact on the business. >> no big changes to report now. we know the delta variant is top of mind with the consumer, and it is certainly something we are watching closely. alix: so no major changes to report now. joining us now, kim forrest, bokeh capital partners cio. is the market underpricing the delta variant/third booster shot? kim: if you mean is the selloff
in retail too much, maybe. i think someday soon we will return to the office. i don't know when that is. it looks like it is being pushed back further. and also, back to school looks like it is going forward, but again, a lot of schools haven't really published what they are actually doing. so some spending might be on the light side in back-to-school, but someday soon we're going to go back to work and school, and spending will happen. guy: it is going to be interesting, the kind of timeline on which that happens. the delta variant does seem to be pushing things back a little further. i wonder whether that impacts fed thinking. is bad news good news from the market point of view? kim: i think so. i like to buy things that are on sale, and right now it looks like, at least yesterday, discretionary retail was on sale. so i was looking at things and
deciding what i want to have in the portfolio for that six months or so, and retail is certainly there. alix: there's a narrative that has developed in the past few weeks that we are looking at stay recovery. it doesn't mean people don't have money. it doesn't mean people won't buy stuff. but it is not a reopening recovery. if you do a stay-at-home recovery, what do you buy? what do you own? kim: i think you look past that because it is relatively short-term. it is not like the beginning of the pandemic, when we were like, are we ever going to go back? let's by -- go back to the gym? let's by a -- let's buy a peloton. i think what we are seeing, and what we heard from retailers like target, and to a lesser extent, home depot and lowe's, is that people are thinking outside of the house.
they might be just in a pause right now about spending, not necessarily redirecting spending. guy: if i take a look at amazon year-to-date, it's gone nowhere. how do you compare amazon with what is happening in the retail space at the moment? why are shareholders valuing amazon or not valuing amazon in terms of its positioning in this recovery? kim: are people going to shop more at home? is that where growth is? i don't think so. i think we know people are going to return to stores for something. i think the pandemic has changed behavior. i think people are really comfortable and enjoy buying something from amazon, but the theory that amazon was going to become the only retailer for everyone, it is too extreme. but they did pick up a lot of growth during covid, but the
market rewards growth, and it doesn't look like amazon has any catalysts for increased spending for its users or picking up more users. so i think the market is reflecting that, and that is why amazon continues to tread water. alix: sort of on the same theme, if you take a look at airlines versus what we thought were the pandemic proof stocks, like the packaged food index, the packaged food index is up like 5% in two weeks. airlines not performing as well. is that representative of buying opportunity when it comes to airlines, or is that a trade you want to be playing on? kim: personally, i have stayed away from airlines because i think in the long run, the best they can do is be barely profitable, just because supply and demand can go up and down so much.
i guess for your short-term traders, a beekeeping ion airlines and whatever business travel because that is what happens during the later months in the northern hemisphere. when that comes back, that could be a short-term play. but for me, i look for longer-term situations, so i am not going to play in that space. guy: many would argue these markets look incredibly stretched right now, both equities and fixed income. what in your portfolio is going to perform best if we do see some sort of correction? kim: i think the technology names have catalysts for growth. that is the key to our investing , is identifying that. we will see increasing digitalization of just about everything, and real productivity being done through internet of things, meaning that companies will be able to
monitor remote installations of machines. i think that is a winner. over time, i think that is where you should invest, and he will be richly rewarded. alix: what are some of the names you like with that? kim: i am putting the semiconductor names, and i like xilinx because there it is a -- there is a bit of a discount there on a per share basis, the difference between amd and xilinx. so i kind of like that name. for the value people, i know this is kind of risky, but intel is still something i am participating in, and i think that they have a good strategy going forward, and we will see what happens with that company. guy: nvidia out after the bell. we will look for those numbers as well. you very much, as ever -- thank you very much, as ever. john kirby's briefing at the
pentagon right now, giving us an update on what is happening on the ground in kabul, indicating that currently, the u.s. has around 4500 troops on the ground right now. limited flight operations at kabul. in terms of what is happening, and terms of the numbers, 2000 people have been evacuated from the airport in the past day. 19 u.s. military planes arrived at kabul over that same period. fort mccoy is set to be used to host afghan refugees. alix: we will also hear from defense secretary austin at 3:00 p.m.. still ahead, tencent sales growing the slowest into two years amid china's expanding tech crackdown. this is bloomberg. ♪
laura: it is time for the bloomberg business flash. i'm la right -- on laura wright. for american investors, chinese stocks are become the asset not to own. influential investors like george soros have trimmed their exposure, and cathie wood's flagship etf no longer holds such shares. one says chinese adrs are on investable. a big reason, pressure from regulators in both the u.s. and china has intensified. t-mobile says over 40 million customer records were affected in a cyberattack. about 7 million current customers had information stolen. the other information came from past or prospective customers who applied for credit. t-mobile is offering people affected i the attack two years
of identity protection services. the world's largest sovereign wealth fund aid $110 billion in the first half of the year. the norwegian fund generated a 9.4% return. its investments in energy, finance, and tech companies helped drive double-digit gains in its stock portfolio. that is the latest bloomberg business flash. guy: thank you very much, indeed. the norwegians continue to be invested in china, continue to be invested in tech. tencent saw its slowest sales growth in two years, but that may have been enough to meet lowered street estimates amid the pressure on chinese tech companies. dave wilson is digging into the number. that's the numbers -- into the numbers. dave: you're talking about the company that is all over the chinese internet industry. you've got cloud computing, online advertising, social
media, games, all of it. it has really been in the crosshairs now of regulators at they try to rein in the technology industry on the mainland. what it has meant for the american terry receipts which trade over american depository receipts which trade over-the-counter -- the american depository receipts which trade over-the-counter here, they have been down over 40%. regulators scrapped the plan to merge a couple of game streaming companies. tencent's music streaming service had to give up licensing deals. wechat even suspended registrations for a little while. there's pressure on the via game industry -- on the videogame industry, too. 20% revenue growth sounds just fine, but was actually in-line line with average estimates. yet, it is the slowest in more than two years. that is really front and center. earnings beat estimates.
alix: earnings still grow. services was up like 40%. i wonder, where is the pathway to growth what we don't know where the chinese government is going to land? dave: that becomes a real question here. the biggest chunk of their revenue is from online games. don't forget, it wasn't that long ago that you saw the phrase spiritual opium show up in state run media when it came to describing the gains. tencent has already responded. they put in was a five -- put in more safeguards and children overusing their gains. how much are they going to do to try to head off any particular
regulatory issues? alix: thinks a lot. i appreciate it. this raises the broader question of how do you invest in china. clearly, if you are a company or an investor, you're going to want exposure to the consumer there. how do you do that now, when the middle-class ones of doing things that tencent provides and government cracks down on you? guy: do you want to invest in the big companies, or the middle? sized companies there was a piece on the bloomberg looking at china going down the europe route, not focusing on big companies, focusing on midsized companies and whether or not that is going to be where ultimately the growth comes from. alix:alix: but then when you are a middle sized company and you get bigger, they are going to clamp down on you. there's going to be some kind of ceiling you keep hitting. how do you grow a business when you know there's going to be a
natural top to it? guy: it is going to be interesting to find out. germany seems to have managed it, and these companies haven't consolidated maybe the way you would've expected them to do to do. they come also with a funding structure. you do wonder whether the chinese are going in that direction. there's a data law purely coming out friday which will make things even harder for companies like tencent. alix: come up, we will go from tech to doughnuts. a sweet earnings report for krispy kreme. we will glaze over their earnings and talk to ceo mike tatters field -- mike tattersfield. this is bloomberg. ♪
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johnson. alix steel is in new york. this is "bloomberg markets." we started the show talking about the third shot, the booster, that looks inevitable. israel is already doing it. it looks like the u.s. could be next. alix: in the meantime, i should point out that "the york times" is reporting -- "the new york times" is reporting that restaurants are suing new york mayor bill de blasio over requiring masks inside. the cdc is offering booster shots starting the week of september 20, recommending that america's get the booster shot -- that americans get the booster shot about eight months after the second out -- second dose. all i hope for is that it is going to be a lot cleaner and smoother than it was when the first vaccine was rolled out because it was like eat or be eaten trying to get a vaccine shot. hopefully this will be a bit more orderly as we gear up for that.
guy: we are going back to the beginning of this process because we are going to be going into care homes and vaccinating the elderly. it is basically those people that were first in line that are now going to be first in line this time around. i think your point is well-made. at that point, things are incredibly chaotic. hopefully things are stabilized a little bit, but it does seem as though we will be progressing for roughly the same process. i do wonder whether this exacerbates the kind of vaccine divide that exists within the united states. we will get more information a little later on. dr. murphy, dr. fauci, dr. walensky going to be briefing at around 11:00 a.m. alix: krispy kreme beating second quarter earnings today and its first earnings report since going public. the doughnut maker betting new items and its online business will have soften the impact from covid-19. here to help break down the numbers is applico doolittle -- is abigail doolittle. abigail: they put up a strong
quarter. they beat on sales by 5%. the strength really coming from the international area, up 150 9%. but canada and u.s. not so bad, up 25%. they also raised guidance. they raised red across the board, from sales, ebit., and net income -- ebita, and net income. for a newly traded company, it is pretty positive that they have brought up their numbers. however, speaking of having recently ipo would back in july, this is also a little bit puzzling. here's the range you can see, that they are beating the analysts in terms of what they put out there. relative to the stock from its ipo in mid-july, it is down. that is puzzling given the strong start for their first publicly traded quarter reported. however, consumer growth stocks are also down, so perhaps that helps to explain it. guy: absolutely. thank you for the set up. let's carry on the conversation.
joining us now is krispy kreme ceo mike tattersfield. i want to rewind a little bit. we were breaking the news surrounding what is happening with the third shot. the response to what is happening with delta, which is rolling across the united states at a fairly ferocious pace. can you just give me a kind of instant update as to how your businesses are adapting to what is happening on the ground? michael: we will always focus on safety first. i think it is pretty critical. that is what every company needs to do. the real interesting thing is we are rolling back the clock, so if you think about march of 2020, we really put in safety procedures and started to evolve to this omni-channel approach. our u.s. business last year had one of the best years they've ever had, so our teams are very capable of adjusting and moving
towards where the customers are, which is a very different model, and make sure we use points of access to get to customers where they are, whether that is in a shop, e-commerce, or in a grocery business. if you think about a pandemic and unknown, it gets a lot more certainty of how our business can fluctuate and work not just in u.s. and canada, but around the world. alix: it seems like in that way, you would be a stay-at-home stock and a recovery stock. you could play it both ways. can you do that and actually continue to grow your margins while your input costs rise? michael: first off, q2 was one of our best quarters the company has ever had, and i think all of the krispy kremers. we took a majority ownership in our international business, took 85% control of the u.s. the next transformational piece
is actually building this omni-channel model, so you use your hoplite shops to send doughnuts to where the customers are. it is a frequency play, and when we build these points of access, the biggest one there will be in the grocery and convenience business, so making sure we can get the donuts there. the frequency will drive that awareness. we like to keep our hoplite shops. there's only 400 and the world, or a little less than that. we want to keep them special. we can use the hot light coming use the glazer's -- hot light, use the glazers. we sell by dozens. we do have pricing power so we can manage that through. we still want to have an accessible price point, and clearly we are global, and we saw how it really worked in our international business. they had an outstanding second quarter. you can see how that model of access really works. there really driven.
on average, some of them are 16, 17 years old, so they were built in mind with an omni-channel approach. you can see how that access will he works for them. guy: let's develop what happens next. alix brought up the issue of rising input costs. it is a factor many companies are having to deal with right now. how big of a fact is it for you? if those costs are rising significantly, is that going to crimp your ability to invest in that on the channel approach? michael: when we think about a 10% to 12% growth rate, we are hedged in a lot of our food costs, so we do have pricing power. the unique is this is not an individual occasion. we sell in dozens. it is an accessible price point. we will continue to invest particularly as we start to build out the omni-channel model in the grocery segment. when we have the same price point in the same fresh
doughnut, we stand out. we do believe, and we have seen it even in many of our countries, this is actually working. alix: how much have you raised prices in the last year, and how much do you think you will have to raise the next year? michael: i won't get into too much of where we are going to take pricing forward due to the competitive nature, but we have raised about 4% so far this year. alix: but you had no trouble doing that? michael: no, if using about how we can actually make that statement is as we went to the fresh product and the wholesale channel and he delivered fresh doughnut business, the cabinets you will see in select shops, there was a price range that happened there. so there is pricing consistency across the channels, and the consumers accepted it. that is where we can see how we evolve forward. guy: already krispy kremer --
are the krispy kremers getting pay rises right now? michael: we will continue to look in every channel where we are across the world. we did not furloughed the majority around the world of our employees, so culturally, that made a huge impact. but this omni-channel model, we are looking at drivers, doughnut makers, frontline folks. it is a big growth story. when people come into a company that has beyond just where they are and they have a career, you will be competing in a market where everybody is looking at the best talent, and we will go in make sure we can do that as well. alix: when you are hiring right now, what is the biggest hurdle in filling the right positions? michael: i think the biggest challenge right now is one opportunity in the marketplace for drivers to do the routes system. that is a very competitive space . we are able to bring on folks
that we might have a momentary pause, but we are able to attract a lot of folks. we just broaden 1700 folks last quarter. we will continue to bring in folks as we continue to build the business. guy: how many of the team are vaccinated right now? michael: from a shop perspective, we don't get into if they are vaccinated and wearing a mask. we are not really tracking that at a shop perspective. by county or by city, they are required in new york, so they will all be vaccinated. that is how we look at it. alix: we really appreciate your time today. it is always great to get the c-suite perspective. michael pattersonfield, krispy kreme ceo, thank you very much. i want to update you on some oil inventory numbers. you've saw a really solid draw and overall inventory numbers. on the downside, you so i build in gasoline inventories. that is a concern.
higher gasoline prices, and if you're not going to be driving as much as we thought, you will not have that robust draw on the gasoline product side. we'll moving lower on the news. guy: and alix takes her point yet off -- pointy hat off. alix: until the next market check. [laughter] guy: we will take a look at what is happening with the delta variant. we were hearing about the third shot. it is certainly something that moderna is gearing up for. the vaccination effort looks like it is going to be continuing for quite some time. a conversation with the cofounder of moderna. that is next. this is bloomberg. ♪
will start offering booster shots in late september to all vaccinated americans as the coronavirus delta variant continues its nationwide spread. we want to go now to bloomberg's john bowerman, who has been following that story. lots of questions -- lots of questions to unpack with this. does a j&j need a band -- can we mix shots come or does a j&j need a j&j booster? reporter: we've already heard a little bit on this topic, when the cdc gave its recommendation on third shots for people with weak immune systems, with immuno compromising conditions. what they said is if you have received one shot, say a moderna shot, and that isn't available, go ahead and take pfizer for your booster for your third shot guy: is that going to alleviate any of the complications as we work our way through this process?
because it looks like we are rewinding back to the beginning, starting with the elderly, starting with care homes. we all remember the chaotic scenes when we first started the vaccine rollout. is this time going to be easier? have we ironed out the wrinkles? reporter: there's always wrinkles. i think internationally, we are looking at political policy rickles. who is already saying they don't think it is such a great idea for vaccine rich countries to start handing out boosters before the vaccine poor countries get their own boosters. we still have lots of hesitance to overcome. there's many people still working in nursing homes who haven't even received their first shots, let alone a booster. so i think that is going to be one of the wrinkles that remains to be worked through. our people ready for a booster shot already? alix: you raise a really interesting point because the u.s. has said we have enough
vaccines for, as well as to ship vaccines overseas. does the science truly confirm that a booster is needed? john: i think the jury is still out on that. the public health officials are claiming that the protection is waning. it is waning slightly. there are signs we know, for example, the people, vaccinated people who get infected with delta. do they actually get sick, in most cases they don't. in some cases they do. so i think they are going to start really making their case that boosters are necessary. guy: what happens to those who got the j&j shot? we know they probably are going to get a second shot. what do we know about the science surrounding this?
john: u.s. health officials are studying this issue. j&j was cleared after the pfizer and moderna vaccines, so we haven't really seen the performance of the j&j shot in the population for quite as long as we have seen the performance of the mrna shots. they say they are still studying that, and in the coming months, they will make some sort of pronouncement on whether those folks need boosters, when and with what. guy: thanks for the update. bloomberg's john lower meant on the third shots that are going to be rolling out norcross the united states. we will get a briefing in around 12 minutes on what exactly is happening from hhs. we will bring you more details from that briefing. let's stay with the subject. as governments around the world debate whether to authorize the booster shots, moderna cofounder and chairman envisions a time when the shot could become routine. he discusses that very issue and moderna's efforts to fight the
delta variant and beyond on the latest episode of "the david rubenstein show." >> we are preparing for any eventuality, including looking at what our baseline vaccine after two doses does, which so far, six months data, is very robust. we haven't seen any real deterioration of our protection. against the delta virus, we have very strong protection, and we expect that will continue for a period of time. the problem is we don't know for how long because you find out new guard is down after your guard is down. in order to prepare for that eventuality, we have begun to make variant vaccines, vaccines that have different sequences that, if needed, we could accelerate so we could actually use that. i think we will work very closely with regulators to figure out. the beauty as we can do this type of rapid response is
conventional biotechnology that takes years to do same thing. >> i got two moderna shots. do i need a booster shot? >> i think the best advice so far is that people after a certain age, and i cannot tell you what that age cutoff will be because that will be set off by the government, will need a booster to be well protected against the variant, and over time, public his will -- public health officials will have to decide if everyone needs a booster. given enough time, we may end up having yearly, at a min mom, vaccinations, just like the flu -- at a minimum, vaccinations just like the flow. -- just like the flu. alix: are you working on that -- >> are you working on the kind of thing up already? >> absolutely, a very big part will be in beating the lead vaccine developer with mrna
technology, but also additional new technology we are considering to augment target ability. i should also say that within the broader pioneering context, we have multiple projects as well looking to expand the security net for future pandemics. alix: that was the moderna cofounder and chairman. you can catch that full interview tonight on "the david rubenstein show," nana talk p.m. in new york, 7:00 p.m. in london -- 9:00 p.m. in new york, 7:00 p.m. in london. morgan sachs and morgan -- goldman sachs and morgan stanley brought workers back to the office. bloomberg's sonali basak is here with more. sonali: this situation is fast changing. i was at goldman sachs just this week, and while it feels like some people are on vacation, there are still a lot of people there. there were no masks in the building. that may change.
now goldman executives are considering ways to get ahead of the situation, potentially have masks in the building, ramping up testing. we have morgan stanley asking for proof of vaccination if you're coming into the building. before that was on an honor system. so the rules are changing bank to bank. something else, the information they are not giving out for employees is how much they are seeing in terms of breakthrough cases in the office, which is really the stat making employees nervous that when they come to work as they are being asked to, what are they walking back into. guy: there doesn't seem to be any consistency. every bank seems to be operating a different strategy. how is this ultimately going to end? is there a sense that wall street is heading back to the office? are we going to end up with a completely divergent world when it comes to office politics with these big banks?
at the moment it looks incredibly confusing. does management have a grip on the situation. sonali: i have a spreadsheet, so it already is very different. it is every bank that is different, every asset manager is different. i have a round-robin spreadsheet in talking to them to see if they have made decisions yet or not, but a lot of them are weighing different options, including delaying the return to office for those who haven't brought people back in yet. there's tons who are still considering closer to october, and who knows what october looks like. we've already heard from blackrock, wells fargo, but there are tons of firms that said they would come back after labor day that have taken a more cautious approach. we were speaking to somebody earlier on bloomberg tv that is bringing people back no sooner than 2022. so that if the range of the decision-making you're seeing on wall street. the question is how do employees feel at the end of the day, and how much leverage do they have
in working from home as their executives make this is a certain -- make this decision. alix: does that give them more ammunition to try to negotiate for work from home and not return to the office? sonali: people have to be flecks of a right now. i think that is the key. but there is a pressure to win business in the time of moderating revenue. guy: it has a ripple effect into the housing market and many other sectors as well. thank you very much, indeed. an interesting spreadsheet. alix: not surprised she has a spreadsheet. ♪
payments. it has exploded in popularity in the u.s., especially among younger shoppers. since paypal began offering it last year, customers have used the service to make $3.5 billion in purchases. more evidence that supply and labor constraints are holding back home construction in the u.s. while demand has slowed, housing starts fell more than expected last month. that is the bloomberg business flash. guy: thanks, laura. there's going to be a briefing at hhs. we will hear from dr. fauci, wolinsky, etc. on these third shots. it looks like delta fears are certainly ripping through the markets in a fairly big way. the lgim chief investment officer joining us next. ♪
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johnson and alix steel. ♪ guy: wednesday the 18th. 30 minutes to the close. what do you need to know out of europe? case counts continued to climb sharply across europe. israel says the next two weeks will be critical as fatalities continue to rise in that country. data from israel showing the third pfizer shot 80% effective in those over 60. a briefing is about to start in the united states at the hhs on those third shots. we will bring you details in a moment. as the taliban sets up checkpoints in kabul, boris johnson calls on allies to stop the humanitarian crisis in afghanistan. a key ally of german chancellor angela merkel slamming washington