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tv   Bloomberg Markets Americas  Bloomberg  August 26, 2021 10:00am-11:00am EDT

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♪ alix: it is 10:00 a.m. in new york, 3:00 p.m. in london, 30 minutes in the trading day in the united states. in new york, i'm alix steel. my cohost for today, francine lacqua. guy johnson's offer the rest of the week. we have some geopolitical issues now surfacing in afghanistan francine: this just happened -- in afghanistan. francine: this just happened for five minutes go. we first heard from depressor terry of the pinta gun, saying there was an explosion -- the press secretary of the pentagon, saying there was an explosion just outside the airport in kabul. we heard from officials that this was probably the most hectic, dangerous phase of the evacuation. we don't know the size of the explosion that happened outside the airport, but the question is
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what does it mean for evacuation efforts from now on. alix: let's get your quick check on the markets. the news earlier this morning, it came from mr. michael mckee in his interview with esther george, saying let's get the party started. not a lot of taper fears clearly. where you are seeing the action is very similar to yesterday. we have seen a 10 basis point move in the last three days when it comes to treasuries. now you are 1.36%. it was led yesterday by europe, but continuing today here in the u.s. as well as in europe. we are seeing some kind of follow-through buying. you could make the argument it is a little bit of a safety trade. you have the higher yield, the
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higher dollar. equity market not moving much. francine: a lot of the movement will be on what the fed does. we start with the crisis in afghanistan. the pentagon is confirming that an explosion outside kabul airport happened. casualties at this moment are unclear. joining us is annmarie hordern, bloomberg washington correspondent. we are five days away from the event. how much does this impact the efforts to get americans come to get british and afghans out? annmarie: it is a very unprintable situation right now, given that we have the situation outside the kabul airport, with the pentagon confirming that news on the heels of the u.k. on the u.s. really in the middle of the night sending down a security alert to all americans, u.k. nationals, as well as other allies to stay away from the airport. british prime minister brett
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johnson answered a question about this, but the worries of a potential terror attack at the kabul airport. i believe he pointed to isis-k as the reason. this is what u.s. officials have been saying. the reason they didn't want to extend that withdrawal is because of what is happening in kabul with the sworn enemy of the taliban. the question is a very good one, given what is happening in this explosion. how do you continue some of those civilian flights before you even start to wind down the army? alix: we will keep you updated. stick around for us as well. we will keep you updated on the headlines at the cross. what will fed chair jay powell say about tapering in the virtual tax -- the virtual jackson hole gathering? officials underscoring risks, with the suction of esther george, kansas city fed president. she spoke earlier with
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bloomberg's mike mckee. >> we will have to see what impact this flareup in the virus might bring. you can imagine that it might slow down some of the returns to the labor market, but i don't expect at this point that it will derail the economy as we saw last year, when we first had to deal with the virus. alix: michael mckee, bloomberg economics and policy correspondent, joins us now. michael: that is after she had the conference derailed by covid . at this point, talking about the fact that the taper needs to get started. she didn't put a timetable on it. it could be anywhere between now and the end of the year. other fed officials have said they would look to see more data. it will be interesting to see if jay powell embraces that tomorrow. the data we got today, very read because i didn't tell us a lot. the jobless claims numbers went up to 348,000, but you can't even see the movement in the
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line there. that is probably just noise, not telling us anything about the virus and whether it is affecting the labor market at this point. the payroll numbers that came out yesterday was a revision to second-quarter gdp. doesn't tell us a whole lot, but we go up by 0.1% to 0.6% mode is really good growth. the only new information is this corporate profits. it is obviously important if you are investing in equities. corporate profits, the white lines here are at an all-time record for the second quarter, and the percentage gain, 9.2%, was double the percentage gain of corporate profits in the first quarter, so up to this point, even though it is backward looking, the corporate numbers are looking pretty good. the thing i should mention is corporate profits is put out by the government include private
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companies as well as the public companies, so the numbers don't necessarily match up, but they do show that if you're going to make some money in equities, or you made some money in equities based on that quarter. francine: thank you very much. a fantastic interview from esther george, and of course, on the back of these hawkish views drifting a little bit lower. tune into bloomberg tv for the jackson hole symposium. we will bring you all of the key moments he is throughout tomorrow. butch banks asset management arm slump asked deutsche bank's asset management arm -- deutsche bank's asset management arm slumped. joining us is sri natarajan, bloomberg banking reporter. this feels like a huge deal not only for dws, but just in general, how the financial community needs to avoid greenwashing. sri: let's take a step back and look at what has happened.
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the ws the stock has slumped most in 18 months after reports last night first emerged that they are looking into reports from a whistleblower that the asset management firm has been painting a rosier picture. what is that led to? this morning, now that there are reports of investigating german regulators, the stock was down 15%, the most since march. why is the ws important? but you bank owns about 80% of the firm. therefore, its stock is also down roughly 3% earlier today. it is not just contained to dws. they have seen a flood of money come in. everyone has been touting the credentials and trying to attract investor assets, but
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with that kind of frenzy, there's also the risk that some people might have been cutting corners, and in the last two years, between 2018 and 2020, nearly $2 trillion in assets from european asset managers had to be stripped because regulators weren't convinced that they were applied correctly. i imagine the concern for the sector is that everyone would be under the lens of how they are using their esg criteria. alix: thank you very much. super solid. coming up, markets are all about what fed chair jay powell is going to say tomorrow. the distention between tapering as well as tightening. greg jensen, bridgewater associates co. cio -- associates co-cio, will be joining us. this is bloomberg. ♪
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♪ alix: we want to keep you updated on that breaking news from earlier. there has been a bomb blast outside the kabul airport in afghanistan. there's up in the got -- there's a pentagon briefing in about 10 or 15 minutes. will bring that to you as we try to get more details. let's get to the market. looking at a live shot of afghanistan, looking closely outside the airport there as well. we will bring you any headlines as the cross. let's get to the market. bank of america lowering its 10 year rate call all the way back to 1.55%. that is a pretty punchy move in the bond market over the last few days.
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abigail doolittle is here with some of the technical levels. alix: --abigail: we do have this big backup and rates, closer to 1.1%, no closer to 1.36 percent, so a pretty big backup in a very short time. some folks are paying attention to what looks like it should be a death cross, when the 50 day moving average moves through the 200 day moving average. if we go into the bloomberg terminal, that may not be exact a what we are looking at. this is a five-year chart of the 10-year gilts. since this has been in place, there have been roughly seven death crosses. most of them do signal downsides of the 10 year yield, but here we have one head a backup and yields, and i would make the case here that it is hard to know whether this is a death cross or a golden cross because you see the 200 day moving average going sharply higher, rep is ending the massive backup
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and yield out of the pandemic lows, while the 50 day moving averages moving down. there are other reasons in fact to think that you are going to see the 10 year yield continued to climb, continue to hold that uptrend over the last year. b of a securities, the head of technical analysis thinks that whole area, at current levels hold, bring us back closer to 3%. it is going to be very interesting to see what happens. either way, lots of volatility had for yield. francine: thank you so much. bloomberg's abigail doolittle with some of the technical levels we should be watching out for. joining us is greg jensen, bridgewater associates co-chief invested officer. thank you for joining us on a day when we look at some of the foreign affairs, but much more than that. we look at jackson hole, jay powell could say. we had to hawkish comments not only from jim bullard, but from esther george.
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is this a timeline problem? if you want to make sure that you can work with interest rates, tapering needs to come soon, and a matter what happens with inflation. greg: i think the important thing, as you talk about interest rates at the fed, is recognizing how different the world we are in today from the world we have experienced. when you talk about interest rates, it is really not the private sector driving interest rates, reflecting economic conditions. it is much more what policy do central bankers want to have happen. so the move from controlling short rates to controlling long rates, and to some degree controlling spreads. if you think about the policy they are trying to drive, the big thing that is going to drive bond yields is the fusion of monetary and fiscal policy creates outcomes that the central bank no longer desires. that is where we sort of our. right now we can control the interest rate through fiscal
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policy and control nominal gdp, but there are consequences. the consequences are higher inflation, bubbles, and eventually currency risk. to art of three, there is certainly some bubble activity in different areas of financial markets. there is certainly inflation well above their target, and with get will continue to accelerate if the fed doesn't move. the third thing, as you get these types of policies, you will see more currency volatility. that is i think what the fed will be watching, and as a result of that, we expect the tapering to be faster than markets are currently, rates to rise faster than markets are currently expecting, because the economy is going to pull the fed. so the economy is going to pull the fed gradually. alix: in that case, what do you need to be buying in equities? 13f filings, the recent additions, all of the safety
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guides. link the two together for me. greg: i think the biggest arbitrage you can take in the world right now is take what the policy makers are giving you. they are giving you incredibly low interest rates relative to high nominal's if you can hedge that, if you can take in cash flows and hedge come being short treasuries or other instruments that allow you to hedge the risk , the main risk is the fed has to tighten faster and create bubbles that will have to be the drawn. some equities that will have cash flows and earnings driven by nominal gdp should be ok. the assets that require constant liquid the infusion because they are not profitable, they are not themselves able to support the cash flows to support the asset prices, but require more and more liquidity and financial markets to all those asset prices, that is where we would
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be nervous about those equities and more bullish about the equities whose cash flows will be driven with continued strength in nominal gdp. alix: how do you look at the delta variant? if the delta variant gets worse, can the fed still withdraw liquidity without derailing the economy? greg: it certainly slows the timeline down to a certain degree. overall, we monitor the data on mobility that suggests many economic participants are still moving around. it is a negative. it does slow the timetable. you're seeing it to a certain extent in the economic stats. but the bigger picture direction appears clear, that one way or the other, the economies across the world are coming back online. the u.s. is leading because fiscal policy has been so extreme but the rest of the world is lacking and following,
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and that is occurring despite the difficulties that the delta variant and probably future variance will cause. so it matters. it certainly affects the timeline of these decisions, but it is not, in our view, changing the fate in the likely direction. alix: that kind of leads me and direct way to china because china seems to have adopted a zero-tolerance policy, which is really put the government and someone of a bind. we saw today and one of the papers that fronts with the government says, that they're going to keep think it into the economy as they have this zero-tolerance policy. on the other hand, you have this regulatory cracked on in big tech and other sectors as well. how do you play china with those two things in mind? greg: when we watched china, we see them balancing several important things. con prosperity, the fact that they want to change the district and at the same time they are trying to build financial markets.
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you must have viable financial market. so it looks like they are moving away from the desire to shift towards financial markets, but it is more balancing multiple goals simultaneously. they have generally successfully handled multiple goals simultaneously, and we expect that scenario today. and with the variant, i thing it is important across the world to say if the variant gets worse, what will happen with policy? you know what will happen. there will be easier monetary policy and fiscal support if the virus gets worse. so actually, the biggest risk to markets is less a downturn because we know how policymakers will respond to that. it is much more that inflation and bubbles create a need for the central bank to tighten faster than people are expecting. that is a much more significant risk that needs to be hedged because policy makers will ease
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if necessary with respect to the virus. francine: is there anything in the chinese equities space you would be buying? greg: overall, the big thing is we think sony people are underexposed that the reverse is basically the problem you see the most, that everybody is overexposed to u.s. assets. u.s. assets are the most expensive, probably face some of the biggest challenges around the liquidity policy being the quickest, and inflation challenges. so when you look at that and you look at how 60% of global investor portfolios are in u.s. equities that make up something like 25% of the global economy, he reverse that and you see global investors have something like 5% of their assets in china , where china makes of almost an equivalent amount of the economy. we expect a decade from now that it will be reconciled one way or another.
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in the short term, of course, there's all of these challenges in the relationship between u.s. and china, and that will be ongoing as well. but the big deal is the difference in asset prices in the u.s. that reflect very low risk premiums. alix: that is such an excellent point. we appreciate having you on, as always. thank you so much. we want to update you on those headlines coming out of afghanistan. just to recap, depending on says explosions have happened outside of kabul airport. the u.s. believes at least three u.s. troops are injured. other outlets reporting that u.s. officials have said there have been casualties, either those injured or killed. the pentagon was due to speak for their daily briefing in afghanistan, and that has not been pushed back. we do not know when that briefing will come, but we will take that for you when it does.
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it looks like potentially, the u.s. believes at least three u.s. troops have been injured, according to dow jones. this is bloomberg.
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♪ francine: investors getting conflicting signals on the reopen versus stay-at-home trade. both seem to be stuck in the earlier peaks. bloomberg's dave wilson is looking at the contrasts. what you have? dave: if you look at citigroup index of stay-at-home stocks, the goldman sachs index of reopening stocks, they are kind of telling the same story, to some extent. citi's index peaked in february. the goldman gauge in june reached its high, and it has
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been coming down as well. it's all as much as 14% from that peak -- it fell as much as 14% from that. the back-and-forth between people staying at home and going back in to work again, you can focus on some data that plays in the reopening argument. whether you look at people going back to the office or u.s. airline passengers going through security, or restaurant patrons, the data series that track those, a kind of rolling over as chart watchers would say, numbers have been coming down the last few weeks. so you asked to see the shares follow along, and indeed, the numbers really do tell the tale when it comes to the effects of the delta variant spread, when it comes to people being willing to get out and go to work, take
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a flight, go eat out at a restaurant. you can see it here in new york city with the latest data from the partnership for nyc and political together, and it does tell you why the stay-at-home trade, they reopening trade has struggled. alix: dave, things very much. we want to recap those afghanistan headlines for you. depending on says an explosion has to can place upside kabul airport. dow jones reporting that the u.s. believes at least three u.s. troops have been injured. the nasdaq 100 and the s&p 500 have dropped now to a session low. we are going to bring you more headlines and updates as they cross. this is bloomberg.
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francine: live picture there,
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listening to what seems like a lot of commotion on the ground at kabul airport in afghanistan. the u.s. have confirmed that there was a blast and -- blast at an entry gate. the u.k. has once again warned afghans to avoid kabul airport due to possible more terrorist attacks. that puts in question the evacuation efforts. . joining us now is annmarie hordern, bloomberg's washington correspondent. we are in touch with various authorities to try to understand exactly what is going on. the first concern is the health of the people on the ground and what this means for evacuation efforts going forward. annmarie: it is a very unpredictable and fluid situation. what i know is that the president has been briefed about
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this explosion. what officials are telling reuters is that it was via a suicide bomber, this explosion, and there are casualties. we do not know whether that means injuries or fatalities. they are focused on the immediate threat to the airport, and we are awaiting more details from the pentagon, but this is what we know so far. alix: we are going to get back with you in just a few. thank you very much. we want to take you to some other breaking news. blue origin is gearing up for another rocket launch. this is the new shepard. its next mission is going to fly a nasa lunar landing technology demonstration. the reason why this is nick and his you are looking at reasonable rockets. this is the 17th new shepard flight to date, dedicated to flying payloads to and from space.
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>> 1, 0. [rocket engines] >> and lift off from west texas. mission control has confirmed new shepard has cleared the tower, on her way to space from the west texas desert, carrying lunar landing technology, as well as the first ever art installation. you can see we are gaining speed as new shepard lifts off towards space. in about 10 seconds, we will be coming up on the toughest point of flight for the vehicle.
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look at argo -- look at her go. we have successfully punched through max q, where the aerodynamic stresses on the vehicle were at the maximum. such a beautiful, clean burn on that engine, and you see the west texas desert disappearing away. as you can see on your screen, that outdid monitor and that velocity are on the bottom. she is really picking up speed and her way to space. keep an eye out for that main engine cutoff, where it will cut
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off that e3 engine. new shepard is now coasting at over 1700 miles per hour. and there we have it. main engine cutoff. new shepard is at 2000 miles per hour, and those experiments are just seconds away from getting there several minutes of microgravity and performing the research. there is that zero g indicator on the screen.
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shortly, you will start to see those two distinct crafts as the booster starts heading back towards earth. alix: you're watching the 17th launch of the new shepard mission, the eighth flight for this particular vehicle, which is flying scientific and research payloads to and from space. that reusable rocket key to making spaceflight cheaper, as well as more efficient. you just got a successful launch from the new shepard launch. what is the significance of what we are watching right now? >> the big thing is the sensor test blue origin is testing for nasa. this would be how we land on the moon, as well as some radars
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that are needed for positioning and how to do that. it is a really interesting situation because you also have blue origin with nasa and washington about not getting a lunar lander contract earlier this year, which went to spacex. so they appealed, i know they have gone to a federal administered of court, trying to get this overturned so that they can get a piece of this work for themselves. alix: how does that play out? why does blue origin want/need that so much? >> and lot of ways, this has become a personal issue for jeff bezos. it is really about the message that spacex is not the only game in town. there are other players that want to do this kind of work, and government contract work is a very lucrative, steady stream.
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it is good work if you can get it. i think that is part of what we are seeing here. alix: talk about these kids that this is the eighth flight of this particular vehicle, where we get the 17th new shepard mission today date. these are very high numbers in a short amount of time. >> this is really what we are talking about the future of rocket reusability. spacex has flown one of their falcon nine boosters 10 times already. they say they could probably do another 10. i think the key to getting costs down is really being able to reuse these. that is what you are seeing these two big companies do right now. alix: we are looking at the booster landing. what we threw what is happening right now. >> the booster does come back
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first and land on those legs, and that is one reason why they can get ready to fly again in three or four weeks pretty quick. alix: what happens next for blue origin? what is going to be next for them? >> they said they have another human flight plan for this year. we can expect that in the next couple of months, i think. it is possible they could do two, not just one this year. the big news around this company is really what happens with nasa in their future as this goes through the courts and all of the appeals for getting astronauts back to the moon. alix: we are looking at the booster now coming back into the atmosphere. >> there go those drag breaks. this is a critical step in slowing the booster down on its approach. you see this velocity decreasing quite rapidly on the left side
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of your screen. those in west texas are now hearing that sonic whom area new shepard is on approach. that engine relay confirmed. landing gear deployed. that beautiful hover. and booster touchdown. look at that. just like she was landing on the moon. hopefully those nasa lending centers -- alix: you heard that the booster landing was successful. this is the new shepard mission, the eighth flight for this particular vehicle, to see if the booster can land because it is how it is going to be reused. that cuts time and cuts costs
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for movement into space, whether you are delivering payloads or people. bloomberg's justin bachman, thank you very much for joining us in this critical shift and move into space for the global economy. francine: let's al go back to the developing story and afghanistan. it was 49 mins ago we found out through the pentagon press secretary that there was an explosion outside of the kabul airport. since then, we are trying to piece together except what happened. there are various reports of casualties, even a people dying. the u.s. has confirmed there was a blast at an entry gate to the airport, hours after western intelligence agencies warned of this imminent threat. we understand through media reports that this could be an islamic. we had i think yesterday heard from the u.s. president that there could be islamic state insurgents that could be planning attacks on the airport,
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so plenty more on this throughout the day. these are live pictures from afghanistan.
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alix: this is "bloomberg markets ." larry varma -- mary barra, chairman and ceo of general motors, is coming up. this is bloomberg. ♪ francine: about 58 minutes to go. we heard through the twitter page of the pentagon of an explosion in kabul. now we are monitoring the number of media organizations and
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people on the ground to try to figure out exactly what happened. we understand through various sources that there are casualties. just five months ago, depending on -- alix: -- from politico that specifically says in isis suicide bomber was responsible for that explosion. so we are still trying to couple the details together on that. let's get more details with bloomberg's marty schenker and annmarie hordern from d.c.. set the stage for us here. first of all, was this a surprise? what is happening right now on the ground, and your best knowledge?
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marty: there are a number of new sources -- joe biden specific he warned that a terror attack was quite possible, so to the extent that he did warn the public, but still, this is a shock and a surprise certainly to the people on the ground. it just adds to the narrative that this is a chaotic departure from afghanistan. francine: what does that mean for evacuation efforts? it hasn't even been an hour yet. i know a lot of diplomat in's are trying to figure out who was hurt and what happens to evacuation efforts. annmarie: i imagine we will get that news throughout the day. the president at the moment is with his national security team in the situation room. socialist told our for jacobs. when he comes out from that and we finally get that pentagon
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briefing, we will get an update on exactly what is happening on the ground in terms of casualties. are these injured, are these fatalities? was it a suicide bomber? how many of these explosions were there. the president has set himself, we heard from the sectary of antony blinken saying it is a very real threat about security concerns given isis-k. i thing marty would know about this as well, i think it is important to distinguish between the taliban which is controlling kabul, but isis-k, which is an enemy of the taliban, and there is still about 1000 2000 numbers of isis-k, and they are a very strong militant terrorist group. they are an offshoot of what you have seen, and we know the president is being briefed on all of this, and it is going to hinder, as you say, those evacuations.
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we heard in the middle of the night that the u.s. embassy was sending out this security alert, letting americans know to stay away from the airport. if you are near a gate, get away. we already knew things were going to have to slow down because they were concerned about the security of those near the kabul airport. alix: marty? marty: annmarie is absently correct. isis-k is a splinter group. they have no friendly relations with the taliban, let alone the united states and nato allies, so this was always a threat. to a certain extent, the consolation is our intelligence seems to have been quite good that there was an imminent attack possible, and hopefully, americans did stay away from the airport on the basis of this warning. i would assume that departures of aircraft will resume once
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they have secured to the area, but it does slow down the evacuation, no doubt about that. alix: i am to 10 how it slows it, but i can also imagine that the urgency to get out is greater then before that deadline. marty: the number of people that were being pulled out of kabul was fairly amazing. tens of thousands of left. there have got to be thousands more who want to leave and you are scheduled to leave. the issue that joe biden as admit -- and his administration face is that you cannot leave americans behind. the political danger of that is great, let alone the humanitarian issues. as soon as they can resume flights, you can bet that they will be leaving fast and furious. francine: there was that deadline of august 31 for americans and allies to get out.
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does that now get extended? francine: -- marty: joe biden has steadfastly said they will stick to that deadline. there are some logistic issues. the last people to leave our the military themselves, and there are varying reports of how long that alone will take. you can start doing that until you've gotten all of the people out, so it is going to be cuffed to meet that deadline, but so far the biden administration is sticking to its commitment of august 31. alix: thank you very much. you will be sticking with us and will give us any updates as they cross. joining us now is cumbersome and warren davidson -- is congressman warren davidson of ohio. what do you know right now? rep. davidson: a lot of what you are reporting, but just before
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the news of the explosion, received reports from americans on the ground that they were unable to evacuate at kabul, so then there was an explosion. so the security situation at the kabul airport had already started bringing down ahead of that explosion. there were obviously warnings that there could be an isis or al qaeda attack, so the taliban doesn't have full control of the area, or if they do, clearly they are accountable for raining and isis and al qaeda. that is why we had to go in and impose order, i don't agree needed to for 20 years in the way that we did, but the reality is we did and we kept isis and al qaeda at bay broadly. they conducted terror attacks all throughout this stretch of time. with this amount of people in one location, it is a target. francine: do we know the amount
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of americans still left on the ground in afghanistan? it seems critical to what u.s. troops due on the ground in the next couple of days. what could that look like? rep. davidson: i hope it is that joe biden quits worrying about a date and starts worrying about getting every american out. there's no limitation on the amount of force joe biden and this in mr. risch and could use against the taliban, against isis, or against al qaeda and afghanistan, to give americans secure. there's no restrictions on his ability to use force. the restriction is his will to do it. the authorization should be clear, we will get every american who wants out out, and we should do the same for our allies and those who helped us. we saw poland say that they are going to stop evacuating. i don't know that they've got every polish person out that they want to, but those who helped us, we should be hoping them get safely out of
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afghanistan. alix: what in actual at a does that mean? that obviously does not gel with getting everybody out by tuesday. does that imply we need more troops on the ground? is that something you would advocate? walk us through what that would actually look like. rep. davidson: i was in ranger regiment a long time ago. in high-risk operations, they are under extreme security editions, and you see one of the most extreme in history going on right now. aside from what goes on at the airfield or hopefully multiple airfields throughout afghanistan , you have to establish a secure perimeter. just like at the airport, there might not be has been --
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and might not be as many people, so we put them at the gate. there's always going to be a perimeter, but you have to keep that area secure, so that requires a different posture and what we are easing right now, and whether we need more troops are not, we just need the engagement throughout the population to keep that area actually secure. clearly there is a breakdown in that today. francine: there are reports that this comes from islamic state insurgents. if it is isis-k, basically a splinter cell that 60 taliban are too soft -- that sinks that the taliban are too soft, how should the u.s. deal with them? rep. davidson: my hope is that not just the united states, but our allies and perhaps even the taliban -- isis once to establish a caliphate. it is not clear that the data land -- that the taliban has
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some influence inside pakistan. so we may find that the taliban also doesn't want isis there. that is certainly the only way they're going to be up to coexist because it is clear the united states doesn't really want to stay in afghanistan. but the way we were in syria and iraq was a much better way to go about it. we defeated isis. they lost all that they had in syria and iraq because we had a different approach, and if we can have the taliban as allies to take out isis and al qaeda, be there's a pass for the taliban to exist in afghanistan. but if they don't, then they are clearly the same enemy that we had to root out 20 years ago,
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and we just can't allow asexually for terrorists. alix: before we let you go -- allow a sanctuary for terrorists. alix: before he let you go, how do you think the u.s. should work at the taliban today if this is in fact a splintering? if this is a terror attack on salomon soil, how do we do that? rep. davidson: i don't know that we have to work with the taliban ever. working with the taliban hasn't gone well. they haven't met the conditions there. we didn't negotiate our way into afghanistan the first time. we certainly shouldn't feel obligated to negotiate our way out. if the taliban wants to have any future in afghanistan, they are not going to be able to have it by attacking american citizens, so it would be in the taliban's best interest, with no call or prompting from anyone in the
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united states of america, defined isis and root them out. because if they don't do that today, they're not going to do that you're from now, five years from now. no matter how money times isis comes up somewhere, we are just going to smoke them. that is what we need to do. francine: punk rissman, thank you so much. oren davidson of ohio. what we know is there has been a reported suicide bombing at kabul airport, unconfirmed, but a number of forces saying that there could be at least 10 debts. the incident, we understand is that -- we understand, is at kabul airport. alix: we are now off by about 0.5%. you are seeing the dollar stay on with that safe haven bid, up 0.3%. yield holding steady. the european close is next. this is bloomberg. ♪
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>> the countdown is on in europe. this is "bloomberg markets: european close," with guy
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johnson and alix steel. ♪ alix: from new york, i'm alix steel, with my cohost today, francine lacqua. guy johnson is off. in the gun confirming there was a second blast -- the pentagon confirming there was a second blast in kabul in afghanistan. also confirming multiple u.s. civilian casualties. that second blast is near the baron hotel. francine: there are a number of reports, and we are trying to go through all of them to see what is confirmed, what is not concerned. the u.s. has said there are a number of casualties. there are no records of british casualties so far. the incident we

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