tv Bloomberg Markets European Close Bloomberg October 12, 2021 11:00am-12:00pm EDT
>> the countdown is on in europe. this is "bloomberg markets: european close," with guy johnson and alix steel. ♪ guy: tuesday the 12th, 30 minutes of the close. -- 30 minutes to the close. the eu debut green bond issuance producing record demand. 135 billion euros worth of orders. will rising energy prices knock the sustainability target off course? we will talk about that throughout this hour. u.k. brexit minister lord frost has been speaking within the last few minutes, indicating that he things do northern ireland protocol is broken. he thinks that we now need --
-- prepared to risk a trade war with the eu. global supply chain bottlenecks and a surge in inner gate -- in energy costs hits expectations very hard. european equity markets off their lows, but still negative. we are seeing a little bit of a fade on crude today, but basically, markets are kind of in a holding pattern, though it doesn't feel like it as we await tomorrow's cpi data. we've got a lot coming up from the fed, and we've obviously got retail sales coming out friday. alix: let's talk about inflation for a second. the federal reserve bank of new york survey just came out, and really interesting reads on inflation. american household expectation
for inflation when you're out rose to five point 3%. inflation excitations three years out rose to 4.2%. both were the highest readings on record in the survey's eight-year history. however, the fed says that longer-term inflation expectation is still well anchored. let's take a look at that for just a second. i am going to skip ahead to the bottom line here, the five-year five-year forward break even. it is higher, maybe the highest we have seen in four years or so, but it is still pretty well anchored, just above 2%. so the fed may be looking at that, suing that is correct. banks kicking off tomorrow with j.p. morgan. financials pretty much flat. the kbw, killer run over the last year. vix a little softer, but moderna off now 0.6%. the sca is reviewing -- the fda is reviewing a possible booster for the vaccine, and it is not
known if there will be increased risk of myocarditis or other reactions with a booster, so now a lot of question marks around that booster problem. guy: alix has been paying attention to this news on a daily basis, waiting for the news on what is happening. alix: that is my parents, man. you bet. guy: absolutely. everyone focusing on that issue not only for the elderly, but also the kids, as you try to figure out how you get the dosing right. let's get back to the global economy. let's talk about what is happening with this inflation story. the global economic recovery is apparently losing momentum, according to the latest imf forecast. chief economist get ago benefit spoke to us in the last hour -- economist gita gopinath spoke to weston the last hour. gita: if you end up with very high inflation numbers, what about the comfort range of central bankers and of people in general? we are not seeing that yet.
guy: investors are reflecting this as well. you certainly see this in the german investors into men survey that came out a little earlier on, the zew. you called at the zoo. -- called it the zoo. i call it the zed ew. the conversation is pretty straightforward. his gross fading, and is inflation picking up? it is hard in my mind to talk about stagflation when you have growth that is so far above potential, but maybe we go next year into a slower growth environment with higher inflation. let's figure this out. where are we? is this conversation about stagflation useful. bilal hafeez, macro hive ceo,
joining us now. where do you stand? bilal: we are having lots of growth momentum. i think that is the clearest thing overall. certainly we are not seeing very high inflation and some segments of the economy, but at this stage it is really the supply constrained parts of the global economy, whether it is tips or commodities. outside of that, i still don't think we are seeing broad-based inflation, so for me, the clearest thing is we are seeing more and more signs of weaker growth and more of a shock that would lead to weaker growth in energy is the latest thing that is impacting growth in a negative way. alix: is it fair to say slow-flation versus stagflation, and the position in the aftermath will be different? bilal: i think we are more in the slow-flation environment, and i think that is a challenge. guy: she makes words up.
alix: i do [laughter] bilal: it is getting quite confusing now. there's all these different terminologies we can use. but i think that is the bigger challenge here. how do you deal with all of the supply interruptions, and how will markets respond to that. guy: should central banks be tightening in this environment? bilal: i don't think they should come of it there's a lot of pressure for them to do something because headline inflation is very high, and that is the type of numbers that the average person on the street will react to. certainly, consumer surveys across the u.s., people are certain to view the inflation that we are seeing is a negative factor. so there is pressure politically for central bankers to do something, but the reality is it is not easy money per se that is leading to higher inflation. it is really supply chain issues leading to higher inflation. so if you want to moderate that
inflation, you have to have some type of supply-side effort to bring that down. alix: so what is going to be the impact? it feels like the boe will be some thing of an outlier, particularly when it comes to sequencing. what you do with that? bilal: i think that is absolute right. i think the u.k. in some ways is facing the worst mix of everything. it has a relatively high inflation, similar to what we have seen in the u.s., more so than the euro zone, china, or japan. moreover, it is suffering from a levee supply shocks. on top of that, we are seeing the full effects of brexit as well. one of the interesting things about the u.k. was because brexit happened at the same time as covid, it was hard to say whether brexit was having any impact because the covid effect was so strong. now, as the lockdown research and have eased, we are starting to see the negative impacts of brexit, so we are seeing an additional stock which is coming from the trade side. my sense is the uk's biggest
challenge right now is on growth, so the question here is how do you stabilize growth rather than worry about inflation, and i think there is a real risk that the bank of england is making a mistake here if they do hike. guy: i am trying to figure out whether or not europe and maybe the u.k. is really at the epicenter of all of this, but europe is more exposed to these negative narratives that are coming through in terms of energy, what is happening with the supply chains, and i am trying to figure out in terms of what i am going to get from the earnings season whether or not u.s. equities are going to be outperforming what we are seeing in europe. bilal: i think that is correct. i think the challenge for euro area is they are suffering from the energy shock. it also suffers from a china slow down in a way that is more acute than the u.s. and maybe
the u.k. as well. the other challenge that i think is probably a bit more subtle is the fact that germany is in the midst of forming a new coalition , so there isn't an obvious fiscal policy response that we can expect anytime soon. we need a coalition in place before an announcement can be made, so i think the euro zone is particularly vulnerable in this environment. that doesn't mean the u.s. won't also have a challenging earnings environment. certainly, if you look at earnings expert patients for this current quarter of earnings, it will be lower than the previous court or as well. alix: so the move where we have seen money flow into european assets, do you think that that unwinds? if so, where does that money go? bilal: i do think that will start to unwind. the european trade in reality works really well in a relation every environment. the yield curve is steepening
more because of growth prospects improving in a generally good environment. the current pace of everything is not necessarily the right environment for europe, especially the industrial sector in europe. the financial sector will also struggle when the industrial sector is not doing so well, so i think the money will start to leave europe and it could potentially go back into the u.s. tech safe haven type of trade, so that could be one flow we see in terms of equity flow. alternatively, it could simply go into cash, a more risk-averse type environment, and it will of course go into crypto as well. we have to recognize that as well. [laughter] guy: let's park the crypto thing for a moment, but stick around. i want to talk about the green bond story here in europe as well. a massive amount of demand today. bilal hafeez, macro hive ceo, is going to stick around. we were speaking a little while ago about the billing numbers.
we are now getting those numbers from chicago. boeing reporting 111 jet orders, 85 delivery for the third quarter. the numbers in more detail are on the website for boeing. 26 of the 737 maxes in september , 62 in the third quarter. the issue is that they are having to push out the 737's as quickly as they can come up it they are slightly struggling to do so. but the seven program is still effective from a delivery point of view which is going to be a huge cast drain -- cash drain. we will talk about the green bond story in europe. we will go back to bilal. that is coming up in a moment. this is bloomberg. ♪
guy: in london, i'm guy johnson. alix steel is in new york. this is the european close, here on "bloomberg markets." a blockbuster debut for the eu green bond. it saw a record 100 to $6 billion worth of orders, and it is just -- record 130 $6 billion worth of orders, and it is just the first of european green bond sales in the coming years to drive a transition to a sustainable future. we are joined now by jill ward, bloomberg fx and rates reporter. did it live up to expectations? jill: thanks for having me.
i would say it lived up to expectations, possibly even surpassed expectations. i think most analysts were expecting this to set a record of some sort. today we had record demand and size for this syndication, so it was really quite something. it is also worth noting, there's been quite a bit of sovereign bond, green bond issuance in the euro area this year. this is just another one, and yet demand was still so strong. i think it is safe to say that supply just hasn't caught up to demand yet. alix: jill, thanks a lot. really appreciate it. we also have some breaking news for you. vice chair of the fed rich clarida says inflation risks are to the upside. that is the latest headline in the remarks from the text of his speech. he does say that moderation in
bond buying pace may soon be warranted, but tries to make the distinction between tapering and a rate hike. he says tapering is not a signal on the timing of a rate lift off, and that underlying inflation is hovering close to the fed's 2% goal. he does not necessarily see that anything froze the fed off track for a potential announcement in november, when they pulled the trigger in december or november. take a look at the bond market. you have some buying still coming in. yields down by about one basis point, so not a ton of movement within the bond market. still with us, bilal hafeez of macro hive. relation to the green bond story , and then we can get to these headlines as well, do you want to own a green bond issued by the eu? do you want to pay up for that? bilal: i think it depends on what your underlying mandate is as an investor. certainly there's a huge munter pressure from asset managers to have exposure to esg and green bonds, so the eu issuing these
bonds and becoming one of the largest issuers, there is a clear green taxonomy, it is a very safe thing for investors to do, to buy these bonds, have exposure, and have the confidence that the bonds you are buying our green, according to one of the leading environmentally sensitive regions in the world. from that perspective i think it makes a lot of sense. whether it makes sense from a pure return perspective, that is less clear-cut because these bonds have a so-called greenium, which means they tend to yield lower than a regular bond. so i think it is useful if you have a mandate, and it is an easy way to get that exposure. from a return perspective, it is less interesting. guy: we are about to spend a lot of money moving society to a more sustainable future. the money that is being raised here is going to be used to drive that. how inflationary is that process
going to be? do we actually have our arms around what is going to happen? we've got a lot of money. we are raising a lot of money in the bond market. the eu in particular is determined to make this transition relatively quickly. my concern is that this is inflationary, and that society is not quite ready for it. we are seeing what is happening with energy prices at the moment. do we have an understanding of what the economic impact of this is going to be? bilal: i think you're right. we are only now starting to get some sense of what the economic implications are. for me, there's kind of two channels for which this has an impact on the economy. one is it lives up to digitally higher growth because the government invests in the green sector that creates new demand, but the more difficult side is what does it mean for the existing use of energy. you end up with all of these strange dynamic swear in europe, -- strange dynamics where in
europe, europe needs investment in industrial batteries to increase storage of electricity, but europeans won't buy those in asia because the factories that produce those batteries are powered by coal, so you end up with a shortage of batteries in europe, which means you can't have the electricity you need to power electric vehicles. so there will be sequencing issues where if you take the purest approach where you don't want to have any exposure to coal, you don't build the infrastructure you need to allow this transition to happen. i think that is a challenge which we are in right now, wher it ise a sequencing issue. you do need a lot of energy to transform the system to a new one, but how do you power that transformation? renewable alone won't be enough to do that. alix: how do you make money off of this? bilal: the way to make money is to understand that in the end, paradoxically, there will be a lot more demand for fossil fuels then people would initially anticipate. there has been chronic
underinvestment in the fossil fuel sector. if you end up in a world where there are scarce resources, those will be bid up. that means you need exposure directly to those commodities, whether it is oil, natural gas, or exposure to the energy sector in general. guy: but coming full circle, as we suggested at the beginning of this conversation, there are many pms and managers that have esg mandate that prohibit them from investing in those areas. bilal: that's right. this is where the challenge will be. those managers will have to upset someone's performance over that period of time. of course, there are so-called green sectors like tech which still perform well, but they will have less of a universe of assets to invest in which will be potentially profitable. at some level, there has to be this recognition that if you do have a nonprofit
♪ >> the key feature of the belfast good friday agreement is balanced between communities and their links with the rest of the u.k. and the republik of ireland -- the republic of ireland. that balance is being shredded. guy: lord frost speaking in lisbon a few minutes ago. here with the latest on what was billed as the speech that was likely to escalate the situation
between the u.k. and the eu is our u.k. brexit reporter, joe mays, who was at that news conference. let's talk a bit about what was said. this was expected to be a fairly blunt speech that was likely to raise the prospect of the u.k. triggering article 16, basically blowing up the northern ireland protocol. let's talk about what we actually got. joe: i think the most concrete thing we got was the u.k. essentially planting its own version of the protocol in the text, saying we are going to remove things like custom checks in the irish sea. there will be no governence of the eu court of justice. they have really put the ball in the eu's court. it is up for you to decide if you will accept. it is a pretty big move the u.k.
has just made. alix: any chance the eu says ok, sounds good? joe: well, there might be a compromise landing zone towards which we are heading. it really does come down to how theological the eu wants to be about issues like whether the eu court of justice does have to have oversight in northern ireland, since it does still follows in the market rules. to be fair, the u.k. tone was at times quite conciliatory. i asked lord frost directly, and he said we see many opportunities where we can pull back from the brink, so it does feel like we are perhaps heading towards some kind of comfort my territory -- some kind of compromise territory. guy: the eu deputy prime minister saying that most of the demands are "hard to accept." hard to see how another court could rule on the sigel market.
in terms of the -- the single market. in terms of the timing, we've got the cop conference coming up. i assume nothing is going to happen before that. joe: that is a fair assumption. they want a final decision on article 16 mid-november, so i don't think they will burn any bridges while cop is going on. they will need the support of the eu to get anything through there. alix: joe, thanks a lot. we really appreciate it. not at all confusing. thank you so much, brexit. coming up, we will speak to the french ambassador to the u.s. lots to digest, whether you're looking at the power crisis, fiscal discipline, the relationship between russia and germany and china and the u.s. we are going to break that conversation down as the close is just about of human its way. -- a few minutes away. this is bloomberg. ♪
guy we are about to: wrap up the european equity session. as i said the top of the show, today is more interesting than yesterday. tomorrow will be more fascinating. cpi data out of the united states. gently huge market catalyst on the horizon. today fairly flat. the ftse 100 down, the tax -- the cac 40 down .4% let me show you how the session has developed. the same trajectory at the back end of yesterday's session continues today. it has gone sideways. the market is in a holding pattern waiting for tomorrow. in terms of the breakdown. the miners have been a bit of a drag. utilities have been a cracking day. racking day.
. on proxies one areas people are focusing on. financial services all rising. it is the defensive tilt at the top end of the market. the bottom end of the market, retail sales on friday. a fairly balanced market today. easyjet down today. a big loss coming. that is what the market is focusing on. if you read between the lines and listen to what easyjet has to say, reasonably positive in terms of putting capacity back into the market. it is expecting the acceleration to continue. lvmh, a huge company out of europe, this will be hugely important. caps off the large-scale -- the large-scale story around european earnings. we'll have an analyst to analyze the numbers.
airbus, the numbers on deliveries a little disappointing. there on part two deliver around 600 aircraft. we have stalled a little bit. the company has been talking about supply chain issues but basically citigroup out today saying they can probably do it. airbus only down .5%. alix: good story. let's go to the broader geopolitical issue. philippe etienne, french ambassador to the u.s., and bloomberg's annmarie hordern join us now in d.c.. i will handed over to you. annmarie: welcome back to washington after your recall. i want to start there, this spat between washington and paris. has the mood music changed between these partners? is it looking more positive following these meetings between secretary of state blinken, john kerry, in paris?
amb. etienne: thank you for having me come after the shop which was created in my country by the announcement without prior consultation, we have initiated, together with united states, and after president biden reached out to president macron and had a phone call on september 22, we have initiated a consultation process. there has been a lot of meetings , very substantial meetings on the basis of our common goals, to decide which concrete actions we can take to rebuild trust, to rebuild confidence. not only that, the two presidents have decided in which domains we have to take a common strategic action between united states and france to find a trust between two important allies.
annmarie: you're are talking about a lack of trust. over the summer the prime minister scott morrison had questions regarding the submarines. do you think the french -- was he not clear enough or was there a beat that was missing. the french seemed so taken off guard. amb. etienne: indeed. we learned about this new deal in the news. as you said in your first question, we recognize the u.s. took the initiative to return to us. the most important thing, together with u.s., i speak about the french-american relationship, we decided to move. we have a lot of work to do, but i am pleased we have this process it must lead to a -- it must lead to a meeting between the two presidents in europe
when president biden will be in europe. annmarie: we also recently heard from bruno le maire talking about how there is division in paris in washington on china. he says europe wants to engage while the united states wants to confront china. do you think that division in how they approach china will be inevitable, it will be a divided approach between europe and the united states? amb. etienne: i have been ambassador to the european union, i've been ambassador to germany before coming to washington. my personal experience is the european union coming notably france cop -- the european union, not only france, has moved to take into consideration old challenges linked with the rise of chinese power. we have defined our european policy in 2019 is a combination of firm competition in the
fields of technology in the economy, and engagement china on global issues such as climate. frankly what i here in the u.s. is not that different. we might have our own position because we are not in the same place. we have our own relations with china. frankly, we share quite a lot of principles according to this definition we have given and we are following in practice of our relations with china. guy: good morning. guy johnson in london. thank you for your time. president macron has looked at europe first, looking at a foreign policy, a global approach that is less dependent on the united states. does france have the support of the rest of europe for this? is europe going down this road of looking to be more
independent, or do you think the transatlantic relationship will remain as important as it has ever been? amb. etienne: you asked the question as if there was a contradiction. it is not the case. we wanted france -- we want in france to keep a strong transatlantic alliance between the european union member states and the united states. on the other end, we think it is one of the main topics covered by our strategic discussions, we think to have a stronger european ally, to have a more capable european defense complement treat and nato is good for the u.s., is good for the security of the u.s.. if you strengthen one pillar in an alliance, the european pillar , you strengthen the whole alliance. we have seen things going together. alix: it is alix steel in new
york. thank you for joining us. how does that work if europe is not aligned on all of the issues? i'm thinking specifically energy. germany is dependent on russia for a lot of gas. france gets some gas from russia but is mostly focused on nuclear, whereas you have hungry blaming the eu green deal for the crisis. how do you fix that? amb. etienne: it is true that we have different energy mixes. you have called the different positions. we have a strong eu policy on climate transition. the european union is a world leader in terms of reduction of emissions against the climate change. the european union through the years has developed keeping some
differences, even in domestic between its member states. look at france and germany. i was the ambassador in berlin. i can tell you that the franco german cooperation, which is one of the foundations of the european integration never meant we always agreed on everything. on the contrary, it is because we take different positions, and when we agree between france and germany is a strong cooperation which raises the prospect for the whole of the european union because we can bring something valuable to the other european nations. in the european union, every country has a part of the decision. every country comes with its own decisions and we find common decisions. this is the basic element of the european integration and it works in energy in spite of our differences. annmarie: it is under the biden administration that we are back
in the paris climate accord. we have the iranian nuclear negotiations being discussed. how worried are you and your partners that if there is another election and it was to be someone like the former president trump who wants to disengage on the international stage, you put all this effort in and that it goes to waste, how concerned are you to do all this work belt -- to do all of this work now? amb. etienne: we europeans have kept the paris climate agreement arrived -- the paris climate agreement alive. we have still benefit from the support of many u.s. elements, many cities, many governors, many businesses have continued to support the paris climate agreement. second, we see every day the
aggravation of the climate issues. more and more catastrophic weather. i think the awareness of the effects of climate change has grown in such a way that it is difficult to deny the necessity of acting very strongly. third, we have the new u.s. administration, we have john kerry with president biden and the u.s. government engaged very actively together with the european countries that joined us. they are very active. i hope -- we believe facts. in implementing our goals and stepping up our climate initiatives will make it not possible to go backwards because it will be so dramatic and so terrible for the world. guy: we have covered a lot of
ground, we have talked about security policy, we have talked about foreign policy, we've talked about the way we will progress the planet, hopefully with better sustainability goals. my question is as you look to work in a more coordinated fashion with the new administration in washington, what does that look like? president macron said he will judge president biden not on his words, and you talked about having lots of meetings and things will be progressing, but on actions. ambassador, what actions you need to see from the united states to improve the relationship between united states and france? amb. etienne: it is exactly what we are discussing now. the two presidents have decided some very important principles about the importance of french and european actions in the
pacific. franch is a pacific country. we have territories, we have permanent armed forces in the indian ocean and the pacific ocean. this recognition by the u.s. means we will continue to work together and we will increase cooperation because even the eu has a strategy and it is the first common action. then there is a debate which is now a very constructive discussion on the fact that more capable european -- is good for the alliance, complement treat and nato. an element we did not discuss now is the u.s. will reinforce its support to the fight of the europeans against terrorism in afghan, alongside the african nations, which is also something
which is important, which is concrete. it is important for our security. it is not like all of the other points. it is not only good for the african countries to find security and sovereignty. it is not only good for the european neighbors. it is also good for the u.s. to fight efficiently against al qaeda, against isis, which remain a real threat. guy: and u.s. military infrastructure a prerequisite for that continuing. thank you very much for your time. we greatly appreciate it. philippe etienne, the french ambassador to the u.s.. our thanks to amh, bloomberg's annmarie hordern. closed in europe. a negative day but not by much. we are off of our lows. there is the ftse 100, down .2%. the cac 40 down. we are about to get a big name from paris which could have a
laura: this is the european close. coming up, valerie grant at 2:00 new york. this is bloomberg. alix: breaking news. lvmh third-quarter results look pretty strong. fashion leather goods organic revenue up 24%, beating estimates. the company says they are confident if in -- in a continuation of current growth.
15.5 billion euros revenue. pretty strong for the luxury retailer. we want to get more with swetha ramachandran. you are seeing the numbers like we are. what stands out? swetha: certainly the fashion and mother good segment. what is interesting is the two years to, which is the normalized way of looking at the business, has decelerated only mildly from 40% in the second quarter to 38% in the third quarter. that will reassure investors considering q3 did have specificity. localized lockdowns in china and much of southeast asia, which would've depressed demand despite a very enthusiastic u.s. consumer and a surging european consumer would have contributed. guy: u.s. strong, europe strong. i wondered what we are learning about china. the concern was common prosperity would eat into demand.
is it too early to see that happening? cai: it was certainly -- swetha: there was certainly a knee-jerk reaction to the common prosperity headline because it came on the heels of every regulatory intervention by the chinese government in areas such as education and technology. what common prosperity is trying to do is expand the size of the middle class which is what lvmh goods play well into. 70% of their consumers are new consumers. it is a recruitment market driven by the growth of the middle class. beyond that knee-jerk negative reaction, the market came to digest this is a long-term positive for the sector. alix: what about the supply chain issues that have heard every other retailer? where are we seeing that? swetha: jewelry may be one area where supply chain issues did affect them. first half results, management was adamant in explaining they
had a much cleaner and simpler supply chain than many other players and other industries given the vast majority of their fashion and whether good items are made in italy and france. they are not sourcing components in one part of the world, assembling them in another. compared to a lot of industries, they are better able to withstand supply chain pressures, in addition to which they have strong pricing power. guy: supply chains presumably might affect spirits and champagne. are we going to see an effect? swetha: that is a natural supply chain because of the harvest and how that affects demand more than -- there may be some short-term issues with glass, but i think that is more to do with the natural cycle, the harvest cycle. guy: let's talk about what is happening. we will get back to the jewelry side of the business. we were showing you some pictures of tiffany's. i would've thought tiffany would have made a bigger contribution.
maybe the hard jewelry side of things not delivering quite what we anticipated. is that it tiffany problem or is that a different problem? swetha: i would suspect that is a different problem given the tiffany acquisition. those numbers would not be in the organic growth figures. the breakdown we would get in the presentation as well as on the call will highlight tiffany has performed quite well for the company and perhaps it is in the legacy watch brand we are seeing more residual weakness. guy: great analysis, thank you very much for jumping in. really appreciate it. swetha ramachandran on lvmh. that will have an impact on the cac 40 opening tomorrow. i want to take you to d.c. nancy pelosi's press conference was actually closed in a way it is normally not. nancy pelosi saying she is disappointed that we are not going forward with the original $3.5 trillion human infrastructure plan.
she says we must address the supply chain issue. choices must be made. she is saying what are we going to cut? looking at a number of years covered by the agenda, which is a way of fixing this in terms of allowing the masterwork, allowing the treasury to raise the debt cap, has merit. more analysis to follow, i suspect, with david westin on "balance of power." this is bloomberg. ♪
guy: i am mildly relieved of the day is coming to a close. we should probably talk about what is happening over the next 24 hours. it has been an interesting day today. tomorrow i hope is interesting in a better way. today the house will vote on the debt limit. we have been hearing from nancy pelosi.
tomorrow is the big story. earnings, cpi, it will be a massive day. alix: you're taking my stuff. stopped taking my stuff. inflation numbers out tomorrow. we will have the inflation expert breaking that down for us. earnings from jp morgan but also blackrock. also delta airlines. i am interested in the fuel cost and the hedging. that wraps it up for me and guy on television stop stay with balance of power with "david david westin breaking down those headlines. you and i are off to the cable. guy: we will discuss what has just been said by lord frost. the cable is coming up on dab digital radio. this is bloomberg. ♪
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politics -- david: tough decisions need to be made by president xi. david: -- >> to the world of business. >> you have demand in the oil that was not there four months ago. >> this is "balance of power" with david westin. ♪ david: from bloomberg's world headquarters in new york to our tv and radio audiences worldwide, welcome to "balance of power." the house is reconvening today to vote on raising the debt ceiling enough to get us through until early december. to set the stage we turned once again to our washington correspondent joe mathieu, host of sound on weekdays on bloomberg radio. is it sort of because as i understand a lot of people will be there virtually, so to speak. joe: a lot of lawmakers will be voting by proxy on this debt ceiling increase we have been