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tv   Bloomberg Markets European Close  Bloomberg  October 7, 2021 11:00am-12:00pm EDT

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♪ guy: thursday the seventh of october. what do you need to know out of europe this hour? energy prices continue to fall after yesterday's comments from vladimir putin suggesting that russia is ready to deliver more gas. at the iea saying today that moscow can do much more. the energy price rises will continue. yields dropping broadly across the euro zone, particularly in the periphery. this is the ecb is looking at a new post pepp bond buying program. we will hear from the governor of the greek central bank. let's talk about where we are with markets. equities bid, up quite
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significantly by 1.7%. nat gas in the u.k. down by 10%, but still incredibly elevated at $247. equity markets do seem to be the focus. the equity price coming down. the debt ceiling story stateside adding to the upward momentum. alix: here in the u.s., it is buy everything in the equity market. growth, value, and sickles moving higher. energy is the underperforming sector in the s&p. on the upside, you've got materials, financials, consumer discretionary, and technology stocks. the faang index that got so beat up over the last week or so up by 2.5%, despite the fact that yields are moving higher now, up three or four basis points. we haven't seen this level on a closing basis since june of this year. just to highlight the relief in the energy market, we were near seven dollars in the u.s. yesterday, and now we are lower by about 1%, so that is weighing
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a little bit on the energy sector, but none of this is over. debt ceiling, not over. you have a budget resolution, not over. the energy crisis not over. that is still staying because today, we get a little bit of a relief. guy: yields are higher in the united states and the united kingdom. in the euro zone, they are lower. quite significant lay lower, particularly on the periphery. the ecb apparently studying a new bond buying program that will be designed to prevent any market turmoil when emergency purchases, the pepp program, gets phased out next year. it will be much more selective, potentially getting rid of the t. earlier today on bloomberg television, the ecb governing councilmember from greece -- governing councilmember from greece addressing stagflation. >> it is natural that we are in
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a different phase of monetary policy. guy: quality divergence, that is potentially what we could be seeing here. it will be interesting to see what the energy crisis does to the inflation outlook of and forward within the euro zone. let's talk about what this could all look like. nicola mai of pimco joining us to get his take on all of this. the ecb potentially going in a very different direction to the fed and the bank of england. we don't have the same labor inflation problems that we do in those countries. inflation looks like it could be high, but more subdued. the ecb is looking for a much more targeted post pep qe program to continue to buy bonds on a much more focused basis. how do i want to play this? what is the right trade in the european bond market? nicola: i think it is very reasonable to expect a different trajectory for the ecb on the one hand and the other central
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banks. the fiscal impulse here has been much less. wage inflation, as we mentioned, is actually very weak. it has been falling about 1.5% to 2%, and generally speaking, the euro zone has suffered from an inflation overshoot which is been long-lasting, so i think the ecb will be very patient. i think asset purchases will continue well into next year, and as a result, i would say this is positive on the whole for european risk and european periphery, so i think btp's with a spread of 100 and based points -- 110 basis points over bunds, given the support of the ecb and the recovery fund, they offer pretty interesting return potential. when it comes to interest rates like bunds, i think they are much lower than treasuries or gilts.
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i think some steeping out the curve, the short rates will be anchored by the ecb, where is the long rates could rise a little bit based on the economic recovery, so we are position for that. alix: the ecb isn't going to want to really target bunds, right? that would be more btp's or spanish debt or greek debt, for example. i feel like we have come a long way from christine lagarde saying in a press conference it is not our job to manage spreads. it feels like it is now definitely the ecb's job to manage spreads. what does that do when you are looking at peripheral debt? nicola: i think the ecb's reaction function hasn't been very clear in terms of what they are trying to achieve with the asset purchase program, but broadly speaking, i think they have to stabilize financing conditions, which could be seen as an average interest rate across europe. the other one is to manage asymmetric moves.
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so if italy blows out, they want to avoid that. with that in mind, obviously there are risks based on the rising inflation and so on, but i think the ecb overall will be pretty supportive, which should be positive for periphery. if you look at italian debt, it is undoubtedly extremely high, but given the low level, just rates, i think from here we should see a gradual reduction in debt, even with nominal growth being quite low in italy on a trend basis. guy: i appreciate what you're saying about the difference between the anglo-saxon world and what is happening in europe right now, but we do have an energy crisis in europe that is likely to push up inflation for many households. we do have shortages as well that are going to impact those same households. they may be looking to their employers and saying we need to keep up with the cost of living here, and you may actually start to see wages coming up. appreciate that that is not happening yet, but could these two crises ultimately start to
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deliver second-round effects that the ecb does have to pay attention to? nicola: i think the risk of a wage price spiral is what is on central banks' mind in terms of managing inflation aspect patients. i see it is relatively unlikely, especially in europe. the bargaining power of labor now compared to the 1970's is a lot lower. secondly, the energy intensity of the economy is a lot lesser than it was back then. then you have other factors likely to depress inflation, technology for example. inflation expectations are still pretty well anchored. when it comes to europe specifically, i think the job of the ecb is even harder in terms of anchoring inflation. their main concern may need to
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be to raise and lesion expectations back to target, given the long-term under shoots that i mentioned. generally speaking, if you look at the pass-through of headline inflation into wages, that hasn't been that large in the past, and i think the gas crisis is meaningful, but i would say that beyond the winter, we should see normalization in gas prices, which is what the futures market is also predicting. alix: when you take a look at the extension or phase two of the purchase program, pepp ends, and then you get something else. do we need to rethink the sequencing of the ecb? could they engineer things to change the trajectory? nicola: i guess it is all open in the sense that programs change and strategies change. i would say that the moment, the ecb said it will keep interest rates low for long, until
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inflation and the second half of the forecast period is above target, and it has also said it will keep purchasing assets, so adding assets to its balance sheet until shortly before that. i don't really see a change in that. i think there is no rush to make long-term decisions about asset purchases, partly because i think it interest rate hike is far away. so i guess time will tell, but i don't think there is any need to shift that at this point. guy: what are you seeing more broadly in the world of bonds at the moment? we had the bloomberg best conference, and one of my biggest takeaways at the moment from that is that asset managers hate their bonds. they continue to be a problem for them in a fairly big way. they are looking at inflation at 4%, 5% in many parts of the developed world. they are getting a pickup of 1.5% maybe in the united states,
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but elsewhere it is even worse. massively negative real rates that are likely going to persist for quite some time. is that the environment we now find ourselves in? if so, our bonds trading rather than investment in treatments -- investment instruments? nicola: if you allow inflation to persist at these levels for a long time, you would obviously need to see significant adjustment in bond yields. treasuries at 1.5 percent would not be sustainable if you think we are in a higher inflation environment. but if you think the inflation spike we are having is transitory, despite more persistent than we were expecting and most people were expecting, then you can put the yield in context and think it is actually a reasonable return. i think there are many factors that are going to constrain interest rates going forward, among which, demographics, and equality, and high debt levels which prevent interest rates from rising a lot, and our view
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remains that phillips curve's come of the religion between on and lemon and inflation, remain pretty flat, so we would expect normalization of inflation, and the reality is if you want to have a higher yield, you need to take more risk. but if you look at risk assets, according to most metrics, valuations and equities, as well as an risky fixed income, are pretty elevated. as a result, i think we are in an environment of lower returns, not just on bonds, but also risk asset, and i think that is an environment that is one where bonds still have a role. alix: thanks a lot. i feel like we need a new phrase, like persistently transitory. nicola mai of pimco, thank you. when will u.k.'s gas supply problems be solved? how do we solve them? what does that look like? simon thorne will be joining us next on that. this is bloomberg.
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♪ >> a very fast transition to a new energy regime looks to be inflationary, as the desire to transition isn't quite in sync with the technology available to supply energy needs. guy: alicia levine, bny mellon head of equities and capital markets, talking about the inflationary impulse we could get off this green transition if we don't manage it correctly. i.e., that tradition is going to come with heavy costs. that could be inflationary.
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also, not having the right technology in place could also mean we have a lot of volatility . you get the kind of inflationary impulse that we are getting currently from the natural gas markets. simon thorne, s&p global plats head of power analytics, joins us now to talk about this. let's talk about what is happening right now. we have seen gas prices reaching for the moon over the last few days. huge daily increases because the market ultimately didn't know where supply was going to be coming from. vladimir putin steps off the stage. he says, you know what? maybe we can fix this. as a result, prices come down very sharply. are we done? is the near-term price peak in? do you think that things stabilize? simon: stabilize, but eventually. -- stabilize, potentially.
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fix, unlikely. it is going to ramp up. even with nord stream 2 through november, the problem is too profound, too deep. european stocks are below five year averages. that lack of a buffer is always problematic, and we are going into the big demand season, a cold winter that could be hugely problematic. alix: clearly this isn't going to solve itself, even if it is a warm winter. a point president putin made yesterday was you kind of did it to yourself because you opted for spot get versus longer-term contracts, totally talking russia's book, so everyone locks and long-term supply on 20 year contracts which is what the producers are going to want. we were shifting to a spot market. do we shift back to these long-term spot markets? simon: it is too soon to tell, but unquestionably, when you look around the world, you will
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see people are more exposed on the spot market side to these prices, and that is changing behavior. so certain countries are less exposed. certain countries can ride this more easily, less likely to have to see change. too soon to tell. these things come in cycles. there are advantages in certain market conditions. right now, being exposed to these markets is difficult. this is set to stay with the stocks where they are, irrespective of a warmer or colder winter. high prices are here for a while. guy: many are arguing that this should be the catalyst to accelerate the energy transition . the u.k. energy minister making that exact point earlier on today. is he right? simon: it is complicated and it is not a short-term fix, unquestionably. energy transition is part of this. energy transition has removed some of the ability for us to respond to these high prices. traditionally speaking, and the
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last five to seven years, a reaction to high gas would be burning more cold. our capability and willingness to do that has been lower, which has meant we have to burn more oil but it has to be there to keep the lights on through this difficult period. right now, renewables and the buildup to this year are part of the reason the stocks are so low. renewable power is not predicable in the same way. we had seasonably disappointing wind, and that is more impact now than it has ever been at any point in our history, which meant the burden on gas was higher. ultimately, there are technological and balancing solutions that can and will help. hydrogen, batteries, increased transmission will all take years and millions to build. alix: we had lael brainard of the fed talk about the u.s., and that you need to have companies stress testing for climate issues.
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should utilities be stress tested for climate issues? we see that a lot with banks and their exposure. do we see that with utilities? simon: it is such a complex, interwoven market boboli, particularly gas -- market globally, particularly gas. we will see what the politicians decide as they go forward. guy: what we have seen in the u.k. is fragmentation of the consumer side of the energy markets. maybe what we are learning here is that low prices and choice don't guarantee supply. do we need to think about the regulatory structure that we currently use here in the u.k. and elsewhere? simon: it is potentially an uncomfortable truth in these markets right now, that they aren't balancing on supply. our forecasts don't suggest that russia can cure that. the uncomfortable reality of the moment is our expectation is
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without that relief on supply, what we need to see is demand destruction or demand substitution. we have seen that in limited places. we have seen that absorbed in inflation. that is an uncomfortable place to be, particularly from a humane position, but in reality, for the markets to function as they need to, we need to see high prices, and where we have seen action to lower those prices, that dents the demand in the high price we need in order to see it it wrote it in a more natural see it eroded and a mark -- see it eroded in a more natural way. alix: thank you very much. we will talk about all of the disruptions in the supply chains with the agco ceo today on "commodities edge." don't miss it. this is bloomberg. ♪
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ritika: it is time for the bloomberg business flash. royal dutch shell says the events of a turbulent third-quarter will have a significant impact on financials. the company gave a first glimpse of what is likely to be an unprintable set of earnings for the oil majors -- and unpredictable set of earnings for the oil majors. the effects of hurricane ida will end up costing $400 million. home prices in the u.k. rose last month at the fastest pace in 14 years, according to halifax. the average price of a home climbed 1.7% to $363,000. the annual rate of growth increased to 7.4%. halifax says healthy demand for housing is likely to persist despite some economic headwinds. pfizer and biontech have asked u.s. regulators to approve emergency use to run rs vaccines for children -- use coronavirus
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vaccines for children. the fda has promised to move quickly on the request. that is your latest business flash. alix: i was like, yay, when i saw this headline. i have a seven-year-old daughter, and i will be getting her the vaccine at the second it is approved. it just feels like giving them a little bit of a normal life would take away some of the risk there. guy: we had the debate around the kitchen table as we figured out whether or not we would be giving the green light to our 12-year-old to get the shot, and you go through the whole debate. it would be a pfizer shot in the u.k., a relatively lower dose one, and you try to figure out what the relative risks are. we came down on the side we probably always were going to, that he's going to have it. but you try to figure out exactly what is happening. i think it is interesting that modernity, a lot of the scandinavian countries are
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withdrawing the moderna shot for younger men because they are worried about the heart inflammation risk. it is going to be interesting to see how money parents over here do go down the road of giving their kids, and we are only 12 and up at the point, the shot. alix: i also wonder the dynamics it is going to create within friendships now. what happens if your kid's friend isn't vaccinated. what are the rules have to take into effect when they are together? i feel like, particularly in the u.s., where it is so contentious, how that is going to play out in schools. will there be a school mandate to get the vaccine? guy: i would be very surprised if there was a mandate. europe doesn't seem to be going down that road because take-up has been quite high for most of these shots. i hadn't even considered the friendship thing. i don't think most parents are at that point. i think if you mix with older cohorts, that is certainly something people are thinking about, but it would be interesting to see ultimately
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because the message seems to be that you are doing this for society rather than doing it for the individual child. that debate is a little bit different. it is about keeping schools open. it is about keeping the whole society safe. it is a much more come look at a decision as a result of that. alix: it is different here. it has become a different kind of thing. and you didn't get the vaccine boost in the markets. you got it in stocks, but not the overall market. remember the last time we got vaccine monday? it feels like a different overall feedthrough. guy: other things have taken over the narrative in terms of what our driving markets now. talking of markets, we are going to close up the european markets next. big bounce here in europe. this is bloomberg. ♪
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guy: we are wrapping up the session in europe.
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the thursday session positive. i huge bounce back. hard to pin down exactly what is driving the individual assets. broadly the market feels like it is being driven macro. energy, looks like that is getting better. the debt ceiling in the states, that is getting better. all of the stories are being kicked down the road but the market is breathing a sigh of relief. the european markets up strongly. nevertheless, positive performance being driven, the ftse up 1.26%, the dax up 1.8%. the stoxx 600 looks like this. we have been in on upward trajectory. it takes us up 1.61%. we are still below 460. we were 475 not that long ago. climbing back to this. a topsy-turvy week in terms of the price action. one day up in one day down.
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r.o.e. wrote is what we used to talk about the -- risk on, risk off is what we used to talk about during the financial crisis. i mention the fact the energy story seems to be easing up. u.k. natural gas down 10%. huge moves. the move on the downside for a smaller percent of move. 244 is now where we are trading. brent crude bouncing back. it will not really supply from the strategic reserve statewide. they four basis point move to the downside on btp. a brilliant bloomberg reporting on the fact it looks like the ecb will have a much more targeted post pepp program to buy european bonds. that focuses on btp and the bond market. let's take a look at individual names. dhl is the name you need to think about, talking about a
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significant pickup in the cash flow. that is certainly a story we are watching. you cannot see it but i promise deutsche is on the move. also iag. iag up, looks like they will be going for a low-cost airline based at gatwick airport. then there is centrica, which is also a focus. interesting notes being published on what is happening. there is an upgrade to bank of america out with the upgrade, the stocks up to .26%. you are seeing a number of smaller energy providers in the u.k. failing. there is an expectation that potentially we could be seeing more of these. that consolidates the market and puts some upside into centrica. alix: joining us is the bloomberg intelligent analyst for energy utilities. do you see some of the utilities
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will be good for them? they could have more consolidation and make the market stronger? >> certainly what we are seeing in the market is this consolidation that guy was speaking about. we see that continuing while the power prices remain elevated. this could have a silver lining for other utilities, perhaps centrica is the most interesting story today. it is poised to benefit from the suppliers. while these accounts will not be profitable in the near term because they have to take on the cost, the other cost of those customers come in the long term we see them as being able to absorb the losses because they have increased customer bases and also they are better hedged into the future and will see hikes gradually coming over the next six months or so in europe. guy: can i say excellent work
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vetting on set so quickly. there was a set changed you manage perfectly. greatly appreciated. are we going to see changes? do think the current system is being shown to be incomplete because we did not stress test the smaller players, we did not know whether they could handle a significant rise in price. >> that is a very interesting story was the over the next several months. as i mentioned before, we still expect a number of suppliers to be threatened by the prices. we do expect to see some sort of regulatory response in the midterms. this is the trend that has been going on for the past five or six years where the smaller retailers have been undercutting the larger utilities, which are more structurally hedged and have this ability to afford the perfect hedges in energy, so we do see some pressure from
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regulatory shifts. alix: do you think we will have utilities beach stress tested in the same way banks are? can they handle it? patricio: you make a good argument. i think for the size of utilities, i think utilities that are larger are structurally more regulated than the smaller players. in a sense they are already facing that sort of challenge. similar requirements, similar structures, and heavily regulated. it is the smaller suppliers which are more in the wholesale markets. guy: we know we can figure out a way of making small failures, the bigger companies absorb the smaller companies customers and while not initially profitable they will be profitable down the road. to the markets handle a failure of a bigger company? -- could the markets handle the failure of a bigger company
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patricio:? patricio:that is a key question. there will always be other players in place to take effect to take on the customers. we believe there's enough power generation, the if the structure is there. it is a matter of who is ready to operate it. we need some space for that. any failure would be highly unlikely. guy: great stuff. thank you for coming for the first time on bloomberg television and doing so in such a swift way. thank you very much. patricia alvarez of bloomberg intelligence. we will mark the rapid stop. every sector in positive territory. the dax outperforming .8%. a resolution to the short-term problems we are facing in the energy market and the u.s. debt ceiling providing a nice pop today. this is bloomberg. ♪
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ritika: you are looking live shot of the principal room. coming up, u.s. senate majority whip dick durbin at 12:00 and new york, 5:00 in london. this is bloomberg. ♪ let's check in on the bloomberg first word news. senate leaders have agreed on a deal that averts a default on u.s. government debt for now. the plan extends the debt ceiling until december when lawmakers will face another vote to raise it. chuck schumer says the hope is to get the agreement passed today. apple has a new plan for cars. bloomberg has learned it is working on technology that will
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allow drivers to use iphones to control the air conditioning, radio, and others. car play is opted -- is offered by most major automakers. a magnitude 6.1 earthquake struck near tokyo, rattling parts of the capital, the most since march 2011. the wake called buildings to sway. some injuries have been reported. power was knocked out in some areas. there is a booming market for finance jobs in london now that the u.k. lockdown has been eased. there more than 8300 new listings for financial services positions in july and september, more than twice the number and the third quarter last year. 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: you and i were talking about this on radio yesterday. at the same time you have cathie
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woods going to st. petersburg florida out of new york city, we are talking about the financial drain and how they are leaving and how to get them back, what we need to happen to do that. guy: london is facing a number problems, one of which is pandemic related, the other is brexit related. a number of people who used to work here that had eu passports, it is much harder. the opportunities and the pay is going up in places like paris, making the move for staying at home much more easy. it feels like it is true in so many industries. i do not see why finance should be an exception. london as a financial center will not disappear. a huge demand for jobs. guy: -- alix: for you guys it is covid and brexit, for us it is taxes, the state and local tax
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reduction which brings us back to the infrastructure bill and if that will be a part of it. if you bring that back or raise the cap, then you can deduct more state and local taxes on property. does that make a difference and can you get more people to stay? it might be too late -- it might be too little, too late. guy: much nicer down there. alix: you want to live in humidity? do you even know what humidity is? guy: i'm trying to wind alix up. she is such a committed new yorker. i'm trying to poke her. the weather is terrible. what i do here, -- what i do hear, crime, what is happening in new york, makes it a much tougher place to live. wall street is not a place, it is a concept. alix: stay with wall street for a second.
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this is a great story by sonali basak. women in finance are using online poker to help their careers. there is a poker power. it is a dozen courses and created by a long time trader. it is teaching women how to take risks, how to negotiate, how to play poker and be better at your finance job. i love this story. i think it is great and it should come to bloomberg. guy: that is true. i'm always up for a game of poker. i rarely get invited. what i think is interesting is there's a lot of research. sonali makes the point that women are just as good as negotiating, but the reaction to their negotiating is different, and that is where the problem lies. alix: also the risk-taking scenarios -- not that women do not take risks, but learning how to take them in a different way, to your point the perception may be different, that would be
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huge. that would be a lot of fun. what is your poker game of choice? guy: "texas hold 'em". i used to play with my brothers friends were all good at math and playing with them is a different ballgame. alix: but we can do good acting will guy: maybe we have a better poker face. alix: we can get that. guy: next we talk about tesla. holding general meetings in texas. we also have news on apple. dan ives of wedbush securities will be joining us next. this is bloomberg. ♪
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guy: from london, i am guy johnson. alix steel is very much in new york. this is the european close on bloomberg markets. tesla is holding its annual meeting they are today in texas. the electric car companies q3 numbers beating the analyst estimates despite the ongoing chip shortage. for more on what we can expect from tesla and the significance of the bid in texas, are they going to move there? david welch, bloomberg detroit bureau chief. what can we expect today? david: there is a proposal to oust two members of the board, one being james murdoch of murdoch media company came -- of murdoch media company fame. shareholders want more accountability, they want more disclosure from the company, particularly when it comes to hiring and diversity. tesla had to settle a lawsuit earlier.
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what has been an issue with tesla for a long time -- investors have thought whenever there were down periods for tesla or whatever elon was in a bit of trouble there was not enough outside oversight. they did make changes to the board and they have more independent oversight. you still have the lawns brother -- you still have elon's brother on the board. there is this other issue with a lawsuit. they had to settle for diversity employment claims. that is another issue where -- you are seeing more actions against companies. shareholders are just worried about how companies are managed. alix: anything we will see that will be a catalyst for the stocks? david: there are a lot of things tesla is working on technologically.
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you never know with elon musk. he might throw something out. they are supposed to debut the latest driver assisted technology on friday. there will be chatter about that. they have new vehicles coming. they are on track to sell one million vehicles. they have had great sales momentum. if he wants to distract them from some of these other governance issues and can throw something like that out there. alix: good stuff. bloomberg's david welch. for more i want to bring out wedbush securities managing director and senior equity research analyst, currently with a $1000 price target. you're in a car. dan: i met the generalist day
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where they have talked about the transformation on electric vehicles happening with mary barra leading the charge. this is a big day, not just gm with -- but with the tesla shareholder meeting as far as the green tidal wave. guy: tesla has had the market to itself for a while, but it is now looking crowded. why does tesla still deserve the premium? dan: i have never viewed tesla as an automobile company, i have always viewed as a disruptive technology player. i think when you look at the $5 trillion market opportunity in electric vehicles, tesla will lead that charge. the big focus today will be about capacity improvements. austin, not to incidentally, they are hosting the shareholder -- not to incidentally they are hosting the -- not coincidentally they are hosting the shareholder meeting there. we continue to see this green tidal wave play out. what tesla did in q3 with their
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back against the wall and the chip shortage continues to be another feather in the cap for the bulls. alix: what gets you to your $1000 price target? what will be that catalyst? dan: i think that catalyst will be going into next year. we are looking that close to 900,000 units and then you start to connect with 1.3 million, 1.4 million units. the chip shortage has been overhanging not just tesla but the overall ev market. that starts to clear into next year. that is something where investors continue to under appreciate the market. specifically with tesla, still in the early innings of what i view as a green tidal wave playing out. guy: if tesla is not a car company then you can think of it as a software company. that seems to be where a lot of the value may reside. apple now looking like it is trying to crank up it has in
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cars, may be rolling that out to become something more at the moment. i get into my car, the apple system handles a lot of what i am dealing with in terms of navigation. it is not into the air conditioning, it is not into this pedometer, it is not into the core components of the car. apple wants to go in that direction. if apple does that, how does that change the game for the wider sector? dan: first off, 2024, we believe apple comes out with the apple car through strategic partnership with the likes of vw. this is just the drumroll to what i view as apple with the next step of innovation. they will not look at the green tidal wave from the outside looking in. a lot of the technology they developed in cupertino will be the next stage of innovation for apple. what we are seeing is technology
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and automotive merging. you are seeing a convergent and that and that is something we expect to see with apple going into next year and 2024 being the year where i see it get rolled out. alix: where does that leave tesla in relation to apple? dan: tesla will continue to be at the top of the mountain in this ev raise. it is an arms race. look at the likes of gm and ford. gm has rolled out a mass amount of models over the next four or five years that can transform gm. this is a green tidal wave. only 2% of vs sold in the u.s. are ev's. there will be many winners in the shift to ev. guy: i look at what is happening in europe, i look at what is happening in the states, i look at the energy crisis, making sure we have enough supply and
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storage for what we are doing. do you think car companies will increasingly be perceived as the solution? the ford f1 50, you can power your house for three days, how big of a selling point do you think that will be? if i was looking at the car and trying to figure out whether it had redundancy for my wider life, that would be fantastic. dan: it is starting to happen among automotive's. what you're seeing gm rollout, ford, a lot of these other ev players they will start to be viewed more and more not just as a car company but as power supply in what you are seeing. you start to see what we are seeing in europe, you start to look at oil prices overall, that is more but acceleration towards ev. automakers will control their ecosystem. that is why it is a renaissance in the automotive sector.
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guy: what kind of car is that? dan: i am in and escalate coming out of the gm analyst today. the hummer is coming around the corner and i think that is a special vehicle on the ev. guy: thank you very much indeed. dan ives, wedbush securities. what we have coming up the next 24 hours? we have just been talking about the tesla meeting. president biden. it is payrolls tomorrow. alix: qamar u.s. payrolls. it will be huge. also wholesale inventories. guy: i think vw as well. jane harman of the wilson center joining "balance of power" and david westin. alix are going to radio. this is bloomberg. ♪
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>> from the world of politics -- >> the biden administration has been creating more crises than i could've ever imagined. >> to the world of business --
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>> we think is a partnership between the world of business and the government to ensure we provide infrastructure across the country. >> this is "balance of power" with david westin. ♪ david: welcome to a special edition of "balance of power" from washington, d.c. to already be in radio audiences worldwide. washington is signing a bit of a breath of relief after an announcement of a deal between the majority leader chuck schumer and the minority leader, mitch mcconnell, to at least a for the debt ceiling crisis until december 3. to give us up-to-date on the drama we welcome emily wilkins and joe mathieu, host of sound on on bloomberg radio. joe, we start with you with the white house. we talked yesterday president

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