tv Bloomberg Markets European Close Bloomberg October 5, 2021 11:00am-12:00pm EDT
invested in real estate and infrastructure and companies that can grow in this potentially higher rate environment. you really want to be cautious about long-duration fixed income. alix: if 1.5% is still bubbly on the 10 year, what should it be? jonathan: if you went pre-covid, the 10 year was 2% and inflation was 2%. today, inflation is running over 5%. some of that may be transitory. 10 year is 1.5%. that spread is almost four today. i feel like that could narrow. inflation could come down as we get through bottlenecks. i think it is going to be higher. we have 35% more money supply in major markets around the world. i think the likelihood of more persistent inflation continuing, even at a lower rate than today, that likelihood is very high. the 10 year feels-like it should be higher. it will impact almost every asset class. there are insurance companies that will be able to do better.
you want to be mindful of this as an investor. alix: brilliant. i appreciate it, it was so great having you in person. jonathan: thank you so much. alix: invest global continues with a conversation about -- we hope you stay with us. guy: yet been listening to alix steel talk to jonathan gray, blackstone's ceo. this is day one of the bloomberg invest global. you can watch it on your terminal. all you have to do the bloomberg website. this is bloomberg. >> the countdown is on in europe, this is "bloomberg markets: european close" with guy johnson and alix steel. ♪
guy: tuesday the fifth, a lindell -- a little under half an hour until the europe markets closed shop. u.k. gas is up 20% today. there could be more still to come. force johnson says the u.k. does not face an economic crisis. we heard what mr. gray had to say a moment ago. how will they pay workers more to deal with the rising cost of living? we will update you through that story. leaders are about to sit down to a dinner, the focus of which is going to be the eu's approach to china. that should be a fascinating conversation. it will set the conversation for u.s. and china. we are watching what is happening in descendant, elizabeth warren will be speaking in a few minutes.
it could have an impact on where we see the fed transition in terms of leadership going next. we will come to that in a moment. let's check on where we are with the markets. indices on both sides of the atlantic are well bid. we are reversing the narrative over the last couple of days. the steno story is right here, that number is not a six-month gain. that is a two-day gain. u.k. gas futures are up by 20% on the day. it is spectacular what is happening. we have heard trader after trader talking about that there could the more room to run here in terms of how high gas prices could go. they come down -- it comes down to what kind of winter we're going to have. with regard what is happening stateside, abigail come over to you. abigail: it is extraordinary. there is still a lot of
liquidity in the system seeking a home. as for in the u.s., looking at the best day for the s&p 500 back to july, up 1.4%. better-than-expected ism services given that -- suggesting that u.s. consumers love confidence. you can see that big tech, your apple, amazon, facebook doing very well. it is up to .4% despite the fact that yields are higher. the 10 year yield is backup five basis points. that supports a risk on tone. yesterday you had the tech rack when the 10 year yield was at 148. one piece not fitting the risk on picture, today it is copper, down 9/10 of 1%, hugging bid 200 day moving average. perhaps a sign that the volatility we have had recently
could just continue. guy: we will continue to cover what is happening. we will hear from elizabeth warren shortly and we have the facebook story unfolding. all of that will be folded into the markets. the fed is firmly in focus not only because of what elizabeth warren is about to say. the bloomberg invest conferences on. i had the pleasure a few minutes ago to speak to luke ellis, talking about a range of things, including the story around bonds. just getting his take on where the markets are right now. >> if inflation scares the central banks into raising rates in the near term, that would be a problem. personally, we are getting a bit of a shutter here and we will start another march quietly upwards, not at the rate we saw the last few months. if we got reasonable growth equities, they are the only
tentative to most people. guy: goldman sachs senior strategist joining us now. do you agree with luke? >> i agree with the point that yields and bonds are guaranteed negative in real term unless we have deflation. given gas prices today, that seems unlikely. they provide some protection against inflation. guy: is europe a better place to be in this environment? europe looks like it does not necessarily have reflationary impulses hitting the u.k. and the u.s.. does that make europe easier to park money in? sharon: i think these inflationary impulses are global, really. europe is also seeing tight supply, tightly per markets, in
some cases seeing gas prices go up. european equities are quite interesting because they have large sectors that gain from where inflation. the commodity sectors, banks, financials, etc. those types of sectors will do well. europe has no weight in tech and long-duration high-growth areas. alix: i am back, by the way. i have not seen you all morning, guy. we both had different expenses talking to different investors. i was talking to jonathan gray and he still likes the u.k. even though they might have some short-term problems. they like the rule of law, they like the opportunities. what do you do with u.k. assets now? you still have high inflation and potential rate hikes. sharon: i completely agree in the near term.
maybe take a step back as well. one of the reasons they have higher inflation is because the recovery has been good in the u.k. and europe. he recovered backup more or less to pre-pandemic levels of gdp. demand is strong and it is hitting supply bottlenecks. i think some of them will be more consistent in a few months. where just seen the end of the u.k. i also agree with the comments about rule of law, a government that is keen on that as well. we have a physical event at the end of october -- a fiscal event at the end of october. i think the government will be looking to the sizemore investment, bringing up productivity growth. guy: talk about the u.k. in more detail. i want us to go back to the
conversation with luke ellis. his concern is the central banks react to this inflationary story and tied it into it. there is a danger that we are tightening into a is in the u.k.. because of the inflation narrative, the bank is forced to act. that is a dangerous combination. sharon:. i agree. -- sharon: i agree. we think the bank of england will raise rates at the end of next year. we expect them to start raising in may but do it very slowly until the end of 2023. there is a risk that their earlier than that, even this year. i think that would be tightening into a period where we still don't have information about the labor market. alix: in terms of the potential
for longer-term opportunities there, you mentioned banks. i wonder where the biggest opportunity in banks will be. is everyone allowed to raise their payout? how will we know what the difference will be? sharon: you may actually stop paying dividends? alix: yeah. sharon: that would be great for european banks. european banks are very low growth as a sector. what you get is you want your cash returned to you -- returned to reasonable yield. my cutting dividends, it has improved capital and the banks have performed well this year partly because of the recovery and because investments have been good. the dividend yield in europe is actually good, 5% to 6% dividend yields.
you will not get a huge amount of growth but that is a good comparative yield. going back to comparisons with other asset classes. guy: why wouldn't you own u.s. banks? it looks like we're going to get higher rates in the u.s.? why would you own european banks when it looks like u.s. banks are going to remain on the floor? sharon: i think u.k. banks are interesting. they play a big part in the pan-european banking universe. as long as u.k. growth is okay, and because of better growth, not just slightly higher inflation, the bank of england starts raising rates towards the end or middle of next year. i think it would be good for the u.k. banks.
the mortgage market should be happy as well. we do like the mistake u.k. banks. in comparison with the u.s., u.s. banks are more expensive. we also think the fed -- and of the market is expecting the fed to raise rates quite early, maybe into next year. we think they will wait until 2023. alix: we have to leave it there but i proceed to sticking with us. i was happy i was able to make it back to talk with you, sharon bell from goldman sachs. elizabeth warren is speaking expected to make claims of fed corruption. >> this gathered at the expense of and by legislative mandate. there is no room for even the appearance of self-dealing.
every member of the federal reserve should know that without a reminder from congress. evidently, there is a problem at the fed. we don't know the scope of the problem or how long it has been going on, what a very disturbing picture is emerging. last month, it was discovered during the economic turmoil of 2020, as the fed was called on to take extraordinary measures to support our economy, robert kaplan, the president of the federal reserve bank of dallas made multiple million dollar plus stock trades. it was also disclosed that in the same token, aaron rosen graham of the federal reserve bank boston made old people purchases and sales in relation to his trusts and other securities. a report last week revealed a third key fed official, vice chair richard clarida also traded between 1 million and --
$1 million and $5 million out of a bond fund into stock funds exactly one day before fed chair powell suggested policy actions that would affect bonds and stocks. the federal reserve makes hugely consequential decisions, decisions involving interest rates, trillions of dollars worth of lending and debts, and regulation and supervision of the banking and financial system. 2020 was a particularly consequential year with the fed taking unprecedented steps to backstop financial markets in response to the pandemic. to make these specific decisions, fed officials needed access to vast quantities of proprietary, nonpublic data and information about individual firms, the state of the economy,
and upcoming fed actions. under these circumstances, for fed officials to actively trade in the market raises legitimate questions about conflicts of interest and insider trading. these fed officials' actions show at minimum a very bad judgment. they also suggest that some of fed officials believe building up their own personal wealth is more important than strengthening the american people's' confidence -- the american people's confidence in the fed. it is not clear why chair powell did not take steps to prevent these activities. surely he understands that this kind of behavior by federal officials corrodes the public trust in the fed and that in turn, such corrosion undermined
the effectiveness of the fed. surely he understands that the fed officials." -- the fed officials' trades run afoul of guidelines which, " should avoid in dealings that might even appear as a conflict in their personal interests, the federal reserve system, and the public interest." surely he knows that according to the fed's policies, it's officials, "have a special responsibility for maintaining the integrity, dignity, and reputation of the system. accordingly, they should scrupulously avoid conduct that might in any way tend to embarrass the system." shortly -- surely, he is aware
that the fed policy's instructions to, "carefully adhere to the spirit as well as the letter of ethical conduct " -- ethical conduct" and "the highest standards." the responsibility to safeguard the integrity of the federal reserve rests squarely with him. setting the right culture at the fed and making sure safeguards are in place to prevent the self-dealing and to protect the public's confidence should be the minimum standard any federal reserve chair should meet. once there is a problem, a quick and aggressive response is critical. chair powell has failed at both tasks. last week, i said i would not
support chair powell's renomination because in one decision after another he has consistently failed to serve as an effective financial regulator. that is not his only failure. chair powell has also failed as a leader. our nation needs leaders who are willing to set aside and enforce strong ethics standards and to asked -- and to act sweetly -- and who act swiftly. our nation does not need a get along leader who does not know or does not care when on his watch people with great responsibility advance their own interests over the interests of our nation. or, someone who drags his feet in dealing with problems that shake the public's confidence in the institution t leads. we need changes at the fed.
i have called on key fed officials voluntarily abide by stricter ethical standards. i asked the fcc to investigate these -- the sec to best get these trades to determine if these fed officials have broken laws on insider trading. i will continue to push chair powell to vigorously enforce the ethics standards that already exist and to put stronger ethics standards in place at the fed. unless -- i introduce the anticorruption integrity act which would ban all individual stock ownership by members of congress, by cabinet secretary's , by senior congressional staff, by federal judges, by white house staff, and by other agency officials while in office. it would prohibit all government officials from holding or trading stock if its value might
be influenced by their agency, department, or actions. it would require senior government officials and white house staff to the vest from privately owned assets that could present conflicts of interest. this far-reaching legislation would also tighten conflict of interest and refusal requirements and shut the revolving door between industry and government. look, this proposal will not solve every problem. for any officials who have engaged in in -- in illegal insider trading, we don't need a new law to hold them accountable. this proposal would reduce the possibility for any appearance of impropriety at the fed and at every other federal agency and in congress and in the white house. i urge congress to pass this
legislation and to restore americans' trust in our elected leaders and officials who make key decisions not only about the economy but about public health, the environment, and every other aspect of government. there is a lot of housekeeping we need to do. the faster we start, the faster we get it done. thank you, mr. president. i yield the floor. guy: you have been listening to senator elizabeth warren on the senate floor, very much addressing the issue of fed corruption. she started this conversation a few days back calling jay powell a dangerous man. she has followed up with a speech about wider changes being required not only in the fed but more broadly across government agencies. this comes clearly at a time when everybody is focusing on the fed, figuring out what role
it will play, particularly as we did with the debt ceiling debate. senator warren is throwing extra grid into the machine. alix: it is no surprise she is coming after chair powell so hard. powell has failed as a leader. last week she said i will not be endorsing you, i think you are a dangerous man. this does really feel like mounting another attack on fed chair jay powell. even if we were to get a different fed chief who be dovish, there will be some recalibration in the market as that leader proves themselves, what their rhetoric is, how they deliver press conferences and that is a jumpy time. guy: it is uncertainty, we don't know ultimately what it will lead to. the market will have to discount that. i think the emphasis will be more in terms of the change falling on the regulatory side
but monetary policy could be critical over the next few months. we are dealing with an inflationary resurge. how is the communication go to change? all of that is obviously usually important for the market. i think you just need to fold to what is happening here because she is pushing at something that is part of a wider narrative. that is that you have this huge tussle and the democrats between the moderates, those more center, and those further to the left. we be those to the left don't get what they want in terms of the spending numbers. they be one way to deal with that would be to deliver change at the fed. it seems like a stretch to go that far, but this is what we are dealing with. guy: -- alix: i thought monetary policy and fiscal policy were supposed to be separate, not the fed getting course traded to get an infrastructure bill through.
it really feels like it is about what joe manchin and kyrsten sinema want, not the other way around. let's get more perspective on how all of this feeds into each other. wendy, the managing editor of the u.s. government joins us now. wendy: this is the continuation of elizabeth warren's battle against chairman powell. she does not want him to be renominated to the chairmanship which president biden is considering. she has clearly taken this trading scandal as the wrong she can hang onto to push for serious changes at the fed and hopefully convince the president not to reappoint him. guy: it is a separate issue to
what is happening more broadly with the debt ceiling debate? is this separate, can i compartmentalize this, or is there a link back to what is happening there? wendy: i think this is a separate issue. the debt ceiling issue is tied up in partisan politics and if the republicans will allow democrats to vote alone. the infrastructure plan and biden's agenda is all over here. senator warren is focusing on chairman powell and the trading scandal and what she believes is the need for stricter oversight of the fed. alix: you don't think they are related? there won't be any horsetrading because of that? wendy: you mean horsetrading about chairman powell's future? alix: if they don't get what they want from the fed, then they may wanted in infrastructure. wendy: it depends on the timing.
the white house says they're not focusing on the fed chairman search. i think the progressive democrats are certainly filling their oats -- the filling their oats. they are winning more and more, as you talked about. they are feeling the power they have two work the white house over. guy: great analysis, thank you very much. wendy benjamin seven, thank you very much -- wendy benjaminson, they give a much. david westin will be speaking to elizabeth warren. this is bloomberg. ♪
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a positive session as you can see on the screen behind me. most of your bright green. the cac 40 up 1.5%. the dax up over 1%. the relative outperform or today up .9%. basically a bounce back. this is being delivered on fairly decent volumes. the volume on the upside, the buying the dip mentality seems to be fairly good. that is worth bearing in mind when you see maybe the market coming back. it has been a verily significant -- it has been a fairly significant selloff over last few days. europe clawing its way higher throughout most of the day. it was not until we got traction in the states i think the rally really took off and you can see that in the last couple of hours. the u.s. market up one point 2% for the broader stoxx 600. i want to show you a few other asset classes.
the first one i want to show you is the u.k. natural gas. the price has gone up 20% today. this is not a one-year story, this is not a one-month story. today u.k. gas prices have gone up 20%. we are off our highs. that is the other thing. he read the trading comments, we'll get loads of notes, the sense seems to be there is more to come. the short-term inflationary narrative is certainly represented. you're also seeing the broader energy market, we sought in brent, the push has continued. we are treading on the brent crude up at 8288. the pound bouncing back a little bit. a bit of dollar weakness. it is reasonably broad but we are seeing a bit of a bounce back in the pound. boris johnson trying to
emphasize the positive rather than negative and what he is been saying about the u.k. economy and he does not see the shortages as a negative, he sees this as a transition for the british economy. we were talking to the blackstone boss a few minutes ago talking about the fact they like the u.k., they see it as having good rule of law, all of those factors coming into play. let's talk about what we are seeing in terms of the sector breakdown story. banks are up, yields are higher, banks benefiting. technology bouncing back. the energy sector continuing to surge. every sector in positive territory. let's focus on what has been happening. we are getting updates on sales. greggs is out with a trading update. it is t, doughnuts, that kind of stuff. they are pushing ahead and
hoping to accelerate that plan. the market likes what it heard. greggs up 10.51%. the update from nvidia on up -- the update from infineon up. you go down the 303 in the u.k. and you go past wincanton, one of the largest trucking companies in the u.k.. a trading update today. we have a shortage of truckers, the fear was as a result of which you would see wage inflation eating away at the margins. they have held their outlook fairly steady. the markets have a huge positive. wincanton up 7.5%. alix: supply chain issues are the talk among all of the ceos that have come onto the bloomberg television. some morning these issues are here to stay for longer. >> we have people that have over
100 containers sitting in various ports and factories because they cannot get a vessel due to scarcity. >> we need to speed the velocity throughout the domestic supply chain. >> in the international markets you're looking through at least february and march before anything will change, and personally it will go along after that. >> what the big chipmakers are saying is the constraints will be with us throughout 2022. >> i would not be canceling christmas just yet. christmas is definitely happening, it just may be happening in a different way across the supply chain. >> domestically we will have ups and downs for the next year. alix: there you have it. we will have christmas, but how much will you pay for christmas is the question and when you start christmas shopping? guy: we have already started.
that is well underway. my wife has kept her firm i on what is happening with the global story. alix: and by we me with -- and by we we mean her. guy: i was involved in the process to a certain degree. a lot of companies are bringing forward their price -- their timescale because they are worried about what is happening. in order to meet that all-important series of events around the holidays, they needed to have started early. that seems to be what happened. if you frontload a lot of this stuff it will be interesting to see what happens at the beginning of next year. we start to see things starting to ease off? you only have to look at the number of container ships parked outside long beach or los angeles or wherever it is who appreciate there is a huge crunch. does that start to ease? let's find out. joining me on set is the national chamber of shipping
secretary-general. nice to see you. nice to have a fellow guy on set. is this a short-term crunch? a lot of people are talking about this being transitory inflation. is it? >> i think this is a more systemic problem. transport has been treated appallingly during the pandemic. we're not making it particular attractive career. there issues in managing ships and trucks. i cannot see this problem-solving itself in a few weeks or months. it will go on for a long time before we can get supply and demand evened out. we are taking steps to address it. alix: what steps are you taking to address it? guy p.: we have had awful problems in being able to do that. change our cruise.
last year we had 400,000 well beyond their times on board. we had truck drivers across international borders. governments can work with us to ease the congestion problems. that will make an enormous difference which will have a positive effect on the supply chain. the need to make our careers for transit workers attractive so we can make sure we have these vital workers rewarded and accorded the right level of respect to keep the supply chain's going. we've just seen the effects of what happens, the delays and the shortages themselves. guy: we need to invest in people. we need to invest in market as well? guy p.: the chip owners are always doing that. ships take two or three years to build. you cannot instantly create more supply. it is digitalization to make ports more efficient. the whole range of things which are ongoing now and we need to
get the people managing the ships, managing the aircraft to keep the supply chain running. alix: where to the people come from? you get them from other industries? are they new people entering the workforce? do they come from the immigration side? guy p.: if you talk about shipping, many of our sailors come from labor supply countries like the philippines, like indonesia, russia, ukraine. over the pandemic we have had difficulty getting them out of their country and more difficulty patriating back to the country. we tend to draw a lot of our labor from those countries, but also locally as well. it is making it an attractive career for young people because ultimately people see a career that will go away and not know when you're going to go home. guy: one of the things we're
trying to figure out at the moment is what the picture looks like for companies that rely on the industry you represent. do you think as they look at their supply chains they will significantly alter the way they manage them? you think they will hold more inventory? what is the net result longer-term? guy p.: companies are looking at the supply chain and has exposed the fragility of the model. there will be changes coming down the tracks in terms of how the supply chain is structured. the supply chain is resilient. we need to invest in it and make sure we can get over these problems we experience and get back to a seamless transit across the world. $14 trillion a year traveled by see. guy: i wonder if that takes -- alix: i wonder if that takes longer than we think. if we have no longer a just-in-time inventory situation that means we'll beal shipping more and the bottlenecks will be longer.
what does that mean for the industry in 2022 and 2023? guy p.: i think we will see the problems going to 2022. towards next year things will start to become more organized and that is what we are banking on as an industry. we are investing in new technology, we are investing in people to try to get over the supply chain issues we are experiencing. there will not be an end to it but i'm not sure what to call that end. guy: one of the things we see happening is belly cargo disappeared almost completely as airlines were not able to fly around the world, in which case they focused on the ships. as airlines start flying again, how much you think will go back the other way? i am wondering if that is a shift that will stick? how the supply chain story will work as we go back to a more normal environment with airlines flying belly cargo, more immediate stuff, than that
trickles down and works its way through the rest of the industry. guy p.: high volume tends to go by ship, high-value tends to go by air. i think about 45% of air cargo goes by scheduled flight with passengers. it is hoping that when there's a reinstated we will see a return to more normal levels of air cargo. air cargo is high-end value but the majority does goad by ship -- does go by ship. guy: i am looking for marginal benefits. alix: the last question for me. i wonder if you can help me understand, the end user demand, your customers, how much more they willing to pay to get stuff greenlee -- greenly with zero emissions? guy p.: that remains to play
out. shipping is a highly efficient way to move cargo across the water. even if there is an increase in rates, that does not necessarily translate to a huge cost of individual items. if a container goes up by double, it will have a marginal effect on an individual pair of shoes. we have to have context behind it. the use of green fuels will be much more expensive than the current fossil fuels will cause problems and there will be knock on effects for the end consumer. guy: inflation, inflation, inflation. i'm pretty sure alix just made up a word, greenly. alix: is what i do. guy: thanks for stopping by. guy platten. what we need to do? we need to take a look at where european stocks have settled. positive volumes today driving markets higher.
ritika: you are looking at a live shot of the principal room. coming up, u.s. council of economic advisors whether -- member heather boushey a. this is bloomberg. let's check in the bloomberg first word news. singapore's sovereign wealth fund may make portfolio changes to china's wide-ranging regulatory curves.
it would support measures supported by beijing. they knowledged changes can lower returns and china. it was the worst september for auto sales in the u.k. going back to 1998. carmakers sold 214,000 vehicles. meanwhile september was the best ever for electric vehicle sales in the u.k.. global news 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. i am ritika gupta. this is bloomberg. alix: thank you so much. we have the former facebook project manager testifying before the senate about the whistleblower internal facebook investigation. we want to get more on where we sit. we have facebook shares up 1%. anna edgerton joins us now. what have we learned so far? anna: it is interesting to hear
what the whistleblower says congress should do about the problems she revealed in a trove of internal document she took when she left facebook. she said when it comes to trying to make sure these platforms have responsible content they share with users, it is not about the initial posting of user content. company should be held responsible for the way that content is disseminated. these are the algorithms the companies use to spread content across the internet and she says congress has a role in making sure the algorithms are used responsibly and are more transparent with users. alix: thanks much the update. here on set for more reaction is a senior technology analyst for bloomberg intelligence. in order for this to have teeth, laws have to be changed. how could this impact facebook? >> one is data sharing. they own the three most popular app in the app store. when you look at what they can
do with facebook, instagram, and what's app, they know a lot about the users and they are sharing the data. one of the regulatory aspects of this is are they allowed to share data between these apps? that is definitely getting a lot of scrutiny right now. guy: which area, is it 230 we could be changing, is that the child protection laws? you talk about the data sharing, what is required to force the company to do what it needs to do and whether or not one piece of legislation can do that? mandeep: i do not know about which way the rigid tory framework will evolve, but i know for a fact they are not spending much on policy. one of the things that as a shareholder you want to see facebook doing is to spend more on content policy. right now their ebita margin
is more than 15%. they cannot afford to spend money on policing the content. they are trying to do everything algorithmically. maybe that is not the solution to everything. alix: the other part of this is shareholder push. what is the will of shareholders to push facebook on these issues? the idea they put profits over people, but if you're shareholder that works for you. today push on this? mandeep: with an increasing focus on esg and governments being an important aspect going forward, you may see shareholders asking them to be responsible for the content, even if nothing changes on section 230. you can expect shareholders to make a bigger push on that. guy: is facebook going to force out of the esg? a lot of these tech companies make up to give get proportions
of the esg portfolios. if we are starting to focus on different letters, less on the e and more on the s, maybe things change? that is a huge index effect we could see as a result of this. mandeep: clearly the focus on the kids and people under the age group of 20 that are using these platforms, i think there is an increasing drive to look at how these platforms are being used by the younger demographic, and that is part of the esg initiative that all of these companies are undertaking. we know there is a big push toward sustainability. i think you'll see more towards governance going forward. guy: a senator talking about the idea there will be more. there will be an impact as a result of all this. thank you very much, indeed.
alix: stocks rebounding today. maybe i have to capitulate to turnaround tuesday. yields picking up. here is abigail doolittle. abigail: it is a risk on day. some of the top point boost are your big tech movers. stocks all sliding yesterday are bouncing back. if we look at the imap, this is more to show you what is not working. everything is working led by the financials. utilities and real estate, the dividend rich stocks not doing as well with yields higher.
that rising yields are not hurting tech but hurting the dividend rich sectors. finally to rounded out we have the cyclical sectors on fire. j.p. morgan chase and schwab both sharply higher. oil is up 2%. you can see some of the big energy names are going on as well. albemarle, that chemical and paint company is also climbing, helping to explain why the material sector is doing well. risk on and very constructive. guy: a little different from what we saw yesterday. that is the beginning of the week. we are done there. what about the next 24 hours. the feds randy quarles will be speaking. a lot of focus on the fed. gary gensler testifying before the house finance committee. that is worth paying attention to. president biden speaking on infrastructure in michigan. that was the delayed speech from last week.
we have the eu council dinner in slovenia focusing on china. alix: i am interested in that dinner. it feels like europe is stuck between a rock and a hard place when it comes to china. tomorrow esther george will be speaking. or as johnson speaking. the tory conference. eu leaders balkan summit as well. a little geopolitics into little eco-data. coming up on television, heather boucshey joins balance of power with david westin. david is in d.c.. here guy and i are going off to radio. the cable on dab digital radio. this is bloomberg. ♪
♪ david: welcome to this special edition of "balance of power" coming to live from capitol hill to our bloomberg and tv and radio audiences worldwide. we have come to washington because this is where all of the action is. we will set the stage by turning to our two crack washington correspondence, annmarie hordern who is right with me and joe mathieu, the host of sound on who is on the other end of the white house. the big news to me overnight was -- annmarie: last time he tried to do this we know it was supported by the republicans. he invoked closer