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tv   Bloomberg Markets European Close  Bloomberg  October 13, 2021 11:00am-12:00pm EDT

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communications from blue origin on twitter and what we are seeing on the live feed, everything was nominal, normal. the crew, including william shatner, were able to ask. just a few minutes of weightlessness and take in the views of earth. that was the selling point blue origin tried to get across. he windows you see on the capsule, there you have the touchdown, safely it seems, but we will wait for those live pics of the crew to actually exit the capsule. but the second successful crewed mission for blue origin. everyone forgets the blue origin successfully managed to land and reuse the booster before spacex did, but then encountered endless engineering struggles. they pumped money into this company at a rate, an extraordinary rate, and they have been playing catch-up, but this is certainly a substantive step forward. guy: what is nasa doing while
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all of this is taking place? keith: a lot of people there who i used to work with are happy. a lot of people are scratching their heads, as to say, why can't we do this. i think it a sort of what happens in middle age when you realize the youngsters have just figured out to do -- figured out how to do something you do better. i guess the folks at nasa will lean back in their chair and say finally, it is space for the rest of us. this is no longer going to be something where it is just a couple of people going every now and then. it is going to be many more parts of humanity. alix: to that point, the whole idea of a reusable rocket isn't at all new. i am wondering how it shifted from what nasa was doing many decades ago to this. peace: this is probably something you discuss on your network five times a day, the issue of the private sector.
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but nasa was always the one who pushed the frontiers, and they did figure out how to do a lot of this stuff. it is just, for whatever reason, we went with the space shuttle comedy the space launch system. but they did have the prescience to go and start with commercial space. the dragon spacecraft that they now can't build fast enough is identical to the one that they are using to go to the space station. so nasa has primed the pump. again, it is not sour grapes. it is just like, yeah, it is real now, folks. this is space travel for everybody. guy: is this america, or is this the world doing this? america does seem to have a lead when it comes to the private space race. do others follow? is that lead surmountable? what happens next. keith: this is infectious. you are seeing american companies launching in new
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zealand. spacex is formed by a south african. of course, the real thing, you may bring up the trash talking between billionaires. when billionaires start trash talking about something, you know it is important the cut is is that's because it is important to them, and they made money elsewhere, so they know how to do that. this is a big deal, and we will see this rolling out over the neck few months as more and more of the people of prominence fly, and eventually it is going to be ho-hum, and when it is ho-hum, you know it is real. alix: to piggyback off of that, what are we talking about in terms of the other companies and how they enter this space without trying to siphon off the space that spacex and blue origin have developed? ed: everyone has a slightly
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different business model. virgin galactic, for example, its technology is very different. it uses a fuselage airplane to deliver its aircraft before deploying. it is focused on space tourism, $450,000 a pop, for a few minute of weightlessness to come back down. it has limits. in what it offers to what others -- has limits in what it offers to other space agencies. blue origin kind of want to do and everything, including space tourism. it says that contracts were awarded unfairly to spacex. every investor i speak to, every industry participant and nasa official, points out that spacex has simply changed the economics of spaceflight. that is where the others have to catch up. peace mentioned that, but it is about scaling. spacex is able to develop its technology at a more rapid rate and launch at a more rapid rate. this is the second crew mission
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to blue origin, only the 18th in total. spacex by this point has done more than 125, so blue origin cearley has some ways to go on its technology to catch up, and also has to develop those other business areas which include satellite launch and vying for nasa contracts. guy: talking of the technology, watching the launch vehicle come down looks like cgi. watching the capsule come down looks like something from the apollo missions. they are not landing in the sea. they are still landing on earth, but like the cosmonauts, but nevertheless, it is something that happens with the aid of parachutes. if we are going to progress to this coming a transport mechanism, what needs to happen in terms of the capsule reentry process? keith: this is the something old, something new, something tried, something true. the capsule is picking up on a heritage not just american, but any country that has
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built a capsule to come back, it is designed like when you are playing badminton and the shuttlecock comes down a certain way. capsule like this is one of the most elegant, simple ways to make sure that you send people up and they come back in one piece. as far as the first stage of the booster landing, nasa did that with the dod 20, 30 years ago. the trick is how do you combine these technologies together in new ways, using new materials and so forth. is this what the capsules will look like when blue origin is flying people everyday? maybe. virgin galactic has a thing with wings and a pilot and it, maybe bring more risk in, but some people think it is bring more flux ability because they can launch from just about any large airport in the world. that is what we keep getting at. which part of the market are you
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going after? you can't go after all of it, but you can go for some of it. alix: we are looking at the imminent departure of the crew. we have a ladder set up. you saw one of the crewmembers from on the ground kinda go around and give thumbs up to everybody. it looks like everyone is ok, and it looks like they are going to open the doors relatively soon. we are kind of taking bets here on if william shatner is going to do a live long and prosper situation. take us through what we are seeing and what happens after this. ed: the capsule is in a holding pattern. they are securing it. you see the person in the black fleece with their back to us, that is crew member seven. even though there are only four members inside, there are 16 assigned to the title crew amber seven -- crewmembers seven. those are was possible for training. they embed with the passengers and teach them how to use the
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systems, the emergency protocols. ultimately, they are there to make sure the paying customer experience is what you are exciting. also see in the background the battery electric pickup, no doubt bringing jeff bezos to the landing site. they have been using it as kind of the poster vehicle for blue origin. but at this stage, i think you can see somebody's head popping out of the window there. they will unbuckle and open the hatch on the side, and they will emerge. usually what happens, and this is based on the mission blue origin did in july -- there's jeff bezos. he looks so happy. his company is doing so well. [laughter] what they are supposed to do is go through health checks. you are under intense aerodynamic stress when you are in the capsule. they will need to make sure that all of the crewmembers are ok. william shatner, as we know, is 90 years old, but all signs from the community and is that everyone is healthy and well, and momentarily they will pop open that hatch, and as you can see, the tv crews are waiting.
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guy: does that capsule get reused? how much of the aircraft actually gets reused? ed: on this mission in particular, the system that carried up the crew is the same as the one in july. that is the point of the reusability. people in the industry describe it with the airplane example. imagine taking an airbus a380 or boeing 777 on a journey and then throwing it away after a single use. that is what the space industry is doing now. you don't have to have the materials cost come of engineering cost to rebuild it, which baisley means most of the launch cost rides in the fuel. in this case, a mix of liquid hydrogen looks it i richard and -- and the good hydrogen, the byproduct being steam. alix: it looks like we are getting eminently closer to opening the capsule doors. very excited to see how they all emerge from this experience.
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do we have any indication on who is next? does this go up again? if the going to be another trick in here? ed: it is interesting. blue origin, we know from bloomberg reporting, from other media reports, internally, the engineering teams are under intense pressure to ramp up activity. jeff bezos over the last two years has not been happy at the rate of launch that blue origin has been deploying forget that is not just with this space tourism product, but across all business areas we discussed a moment ago. it is really hard to gauge the demand. ubs says this could be a $4 billion industry by 2030. that seems like not that much money and quite a way off, but they based then analysis on an assessment of existing luxury experience. for example, taking a helicopter to the top of a mountain, jumping off and skiing down. it is hard to gauge who the target customer is beyond billionaires, beyond highly paid
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executives. to be fair, that is all we have seen to date. we keep going back to this is a rich man's sport. that said, with volume and frequency comes scale, and the economics of scale further improve the cost of going up. guy: if this was going to become a transport mechanism and i was to go on it, this looks, as i say, like a metronomic process at the moment. as we see them coming out, fantastic to see them emerging from the capsule, everybody looks like they are ok. we will see william shatner come out. alix: there he is. guy: there he is, captain kirk. alix: a hug from jeff bezos there. where's the vulcan sign? i was waiting for that to happen. guy: i think you and a lot of other people would have been waiting for that. he doesn't appear to be delivering that just yet. maybe press conference is the moment for that. we have just seen the oldest person ever to go up into space
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in the form of william shatner. he's on his feet still. he looks pretty happy. what i almost bewildering experience, so quick and yet so much to take in. alix: there we go, you see jeff bezos talking to william shatner. they look ok. guy: he looks ok, doesn't he? ed: it looks pretty happy to me. alix: everything looks fine. guy: i think at just a loss for words, maybe. bezos keeps asking him questions, may be reporting on what he just experienced which is literally out of this world. certainly something i think probably will take a little while to digest and fully understand the experience you've just had. absolutely sensational. alix: and the champagne. there we go. [laughter] guy: yep. ed: just a champagne finish to
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it is designed to be a champagne it sprints. that is what they market it as, a luxury experience. you even have a glass of champagne before liftoff. guy: i'm not sure the mic can capture what is being said, ballistic would listen to maybe what is happening on the ground. [cheers] [laughter] [applause] >> oh my god. >> well done. >> the champagne showers have begun. smiles all around. william shatner taking in the moment, clearly. >> cheers. >> everybody in the world needs to do this. everybody in the world needs to see.
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it's beautiful. oh my god. just unbelievable. the little things of weightlessness. you see the roof cover go right by, you are staring into blackness. you think, this comforter of blue we have around us, we have all of this blue sky.
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sheet and you are looking into blackness, and you look down, and there's the blue down there, and the black up there. it is just, there is mother earth and comfort, and is here death? i don't know. and it's gone. it was so moving. this experience is something unbelievable. yeah, the weightlessness, my stomach went up, and i thought, this is so weird. but not as weird as the covering of blue. this is what i never expected. it is one thing to say the sky and the thing, but what is unknown couldn't do it. there's this soft blue. look at the beauty of that color. and it is so thin. and you are through it in an instant. what is it, i mile, two miles? >> depends how you measure it. maybe 50 miles. >> but you are going to thousand miles an hour, so you are through 50 miles, you know, like
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a beat and a beat, and suddenly you are through the blue and into black. it's mysterious, galaxies and things -- guy: the shatner view of what happens during a spaceflight is something to listen to, isn't it? you go up pretty quick, you come down. you get a view of the world, which is quite literally clearly life-changing. but what is interesting here, i thought he, despite his round about way of saying it, actually as megan quite an interesting point here, and that is once people can see what the earth looks like and perceive how fragile it looks, you do wonder whether or not that changes people's view of global warming, sustainability. the fragility of it is something i think people don't really appreciate, and maybe once they have seen it in the way william shatner has. alix: we heard that from jeff bezos when he went up. one of his first reactions was
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we need to protect this at all costs, to that his zach point. william shatner briefly giving jeff bezos a hug, talking about mother earth, really spinning romantic tales of what it was like to be up there, even though he was up there for just a few moments. a really incredible trip. again, the second successful blue origin launch, with four individuals, two pay in, and of course, william shatner. i feel like he was to emotional to be cheesy. at one point it looked like he was starting to cry. a really wonderful 40 minutes of space. bloomberg's ed ludlow, we appreciate you sticking by with us. thank you very much. and keit -- and keith cowen, thank you very much as well. it was nice to get your perspective. guy: you didn't practice that when you were a kid? alix: i literally can't do it.
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i can't. it hurts too much. [laughter] guy: there you go. you've got it. live long and prosper. that should have been the signoff for our guests. i think that is something we will hear a lot of the next 24 hours. alix: i am practicing. guy: while she is doing that, let's check in on the markets and see what is happening because we have been rather distracted him on a day when there is actually a lot going on. we've got the story obviously around the bank earnings season in the united states. we've got the inflation data out of the u.s. as well. we have an energy story we are watching carefully as well. you can see what happened with u.k. not gas today -- u.k. not gas -- u.k. nat gas today. vladimir putin saying russia is ready to deliver whatever europe needs. the earnings story out of jp morgan was strong. we will dwell on that a little later on. he got out of the u.k. weak.
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it will be interesting to see how this all works its way through the markets. it takes a wild for the market to fully digest the inflation data. but the u.s. basically continuing to see higher prices. that is certainly the narrative that we need to take away from today. business and finance leaders, this is something they are speaking about time and time again, the inflation story and the prospect of stagflation as well. >> actually, the great stagflation of the 1970's, i thing there are a lot of differences. >> do i see persistence in inflation? yes. i believe it is more than transitory. >> as long as we see inflation expectations remaining anchored and no wage price spirals, we expect to see a return to normalcy by next year. >> i think the current price of oil, gas, coal prices are a
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serious challenge for the global economic recovery through higher inflation. >> i think the biggest story we hear about his stagflation, so you siri clearly -- so you clearly see the inflationary pressures. guy: i think if you are going to take anywhere as an example of where stagflation may be a risk, it is the united kingdom. what we are seeing is inflation picking up. take a look at what is happening with 10 year breakevens, circa 4%. today we got gdp data as well that came in lower than expected. this is august data. we were right in the middle of the delta surge at this point. but nevertheless, you are seeing growth slowing and you can see the trajectory here, and inflation picking up. we still got relatively high growth. certainly i think we are beyond that, but nevertheless, u.k. momentum is slowing, but
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inflation isn't. alix: right, and in that environment, you're still seeing markets pricing for a boe rate hike of about 1% total by december 2022. what is that going to do, and is that a mistake? karen ward is joining us, jp morgan asset management chief market strategist. you buy the stagflation argument -- do you buy the stagflation argument, and is the boe headed for a mistake? karen: i do sing supply chain issues are going to push up on inflation. i am less convinced that it is going to materially damage rose. there are so many -- damage growth. there are so many tailwinds. the labor market is very strong, and therefore workers can probably compensate themselves a little bit for these rising cost pressures. confidence on the back of rising asset prices as well. i think the tailwinds for demand
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are pretty strong. what will happen is some of those savings are going to go off towards utility bills and petrol. it is not that it is not going to impact growth, but i don't think what we have seen so far is enough to derail that recovery. guy: does the bank of england need to raise rates at this point? karen: i think less in reaction to the recent inflation news, i think just the time is nigh based on the economy and the recovery. the labor market is absolutely critical to the question of is inflation transitory or not. supply, energy costs and all of that can be transitory unless workers can clearly get a pay rise on the back of it. so the bargaining power is absolutely central. in the u.k., they labor market i think is very tight. the furlough scheme is ending, and there are questions as to whether that means workers coming off furlough and looking for work. but i don't think that is a big
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freeing up of workers. i think a lot of workers will transition back into their old roles. i think it is time to event of england -- time for the bank of england to start taking its foot off the accelerator. i think that is the key point. this is about easing off the accelerator. we are nowhere near thing about the brake and this actually hampering activity. alix: what is the best position for that? karen: i think one of the interesting charts to have a thing about is gilts relative to the u.s. 10 year and bunds. what happens if we take that chart back over 7, 8 years, the u.k. market was just positioned with the u.s., very similar economies. then we had the brexit referendum, and i think the market said the u.k. is shifting out of the u.s. paradigm into european. it is going to have ongoing
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problems, and therefore the bank of england are probably never going to be able to raise rates similar to the ecb. we are already seeing the first signs of it, the u.k. is dislodging itself. it is clear it is not in the european low-inflation camp. it is more in the u.s. camp. so i still think gilts are pretty vulnerable and there is upside to sterling on the back of that overtime. guy: what does that due to to the traditional 60/40? let's assume the u.k. does that. a lot of people will have in their 40% quite a lot of gilts. if you are a portfolio manager, if you don't have a mandate that you've got to run a lot of bonds, what do you do? how do you compensate or deal with the risk of the fact that we are going to see guilt prices falling come up treasury prices falling? we may not see that on the continent, but we are seeing bonds under pressure. what do you do as a portfolio
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manager, as an investor? karen: it is the big investor question. bonds are supposed to be our source of protection when there is a risk. what we are talking about is inflation risk, and therefore the risk for central banks, bonds are sort of central to that risk. so they are not our diversifier, neither our source of income right now. so where do we go? there are some ways in fixed income. we think this is an environment where demand is strong, and therefore the high-yield section of the market is still going to provide you that income, but it is going to be bumpy. the stock market is thinking about will there be defensive stocks in an environment where central banks will have to raise rates a bit more, things like the financials have been terribly well
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correlated, so that would provide some portfolio diversification. macro funds do a pretty good job in terms of volatility, and others like or infrastructure, where your real yield -- like core infrastructure, where your real yield. guy: karen, thank you very much for joining us. thank you for your patience as well as we watched blue origin go up and come down. karen ward joining us from jp morgan asset management, chief market strategist there of emea. we are heading towards the end of the day. the cac is outperforming, the ftse underperforming a little bit, but nevertheless, a positive session on positive volumes. this is bloomberg. ♪
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guy: we are wrapping up the session in europe. let's take a look at what the map is telling us. ftse underperformance. we are watching volkswagen, watching the continued outperformance of the luxury sector. that is the narrative we are talking about. positive picture generally for the markets in europe. in terms we -- in terms of how we've gone through the day, there are a few bumps worth paying attention to. we flatlined and we get into the u.s. story. we get the jp morgan numbers and certainly continuing the outperformance they have delivered. the stock is trading on fairly lofty bulk multiples. in some ways you have to outperform if your jp morgan. the execution continues to be flawless.
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none of this seems to be having a massive impact. up .75%. let's take you through the action. there are single stocks. sap is one of them. the cloud business driving solid performance. the luxury sector, lvmh driving that. chemicals are up as well. utilities having a good day, to karen wards point. banks are down which is interesting in the wake of what we are seeing. we are getting a flatter curve and that seems to be the narrative. a story this morning talking about 30,000 job cuts at volkswagen. you need fewer people to build motors than engines. the u.k. housing market continuing to provide a good update for barrett. that setting the sector on fire. if you want to talk about the housing market being on fire the u.k. is an example. man group, was at 5.6 billion
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they took in? well above expectations. it continues to pull in funds, a fresh record in terms of assets under management. alix: volatility equals active management. german finance minister olaf scholz is in washington for an imf meeting. in report turn caught up with him -- annmarie hordern caught up with them. >> there are a lot of prices that increase which is also due to the economic recovery we have seen world wide. so far all the experts tell us in the next year we will have normalization of price. alix: annmarie hordern joins us for more. most likely olaf scholz is the next chancellor of germany. what did we learn on what kind of spending we can see on that front? annmarie: two things came out of my discussion.
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even with the rising energy prices and the prices we are seeing across europe, he says the experts maintain this is transitory and that is what they are expecting. he says a lot is induced because of the pandemic. on the second front, we got a little bit of a peak on what his discussions are with the potential business partners. this could be the three way with spd coalition. he said we would see an expansion of renewable energy, more wind, more solar, he said these are where the discussions are moving. i was trying to push him about nord stream 2 two because you know their greens do not want nord stream 2. he deflected the question. i spoke to him almost four months ago and the exact same position in washington, d.c. and he corrected me when i said your party is not doing well at the
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polls. he said yes, but my personal popularity is doing well. on that front, it is likely he will be chancellor. he said those discussions will be wrapped up before christmas. guy: in terms of what the spd wants, what is he saying about that? i can understand how the greens are pushing for what you have described. did he give a hint as to whether or not some of those ambitions will be curtailed and where other chokepoints in terms of those discussions moving forward? annmarie: we know the spd is on favor with expansion of renewables. that is what he was discussing, as well as the fact they do not see inflation as a concern. they believe it is "transitory" although a lot of people do not like using that word. it is difficult to find out what is going on in these talks. they keep it hush hush until
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they have more of a framework. potentially we could learn more on friday. alix: this might sound simple but why was he there? what was he doing at the imf world bank meeting? annmarie: there is a number of finance ministers here. it is a place where they have bilateral meetings. before he spoke to me he was having a press conference with his counterpart in canada. he was also catching up with the french finance minister. one mega piece of these discussions is about the global minimum tax and that push we have seen a lot of these western and developed countries push for. it seems like they are making some headway with the likes of ireland on board. guy: he is now probably the man who will lead germany forward, taking over from angela merkel. did he feel like a finance minister today or a chancellor? annmarie: that is a great
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question. he was little bit more relaxed and reassured in his convictions. he was right to correct me that his personal pawl was doing very well and we should not neglect the spd because going into the election the party poll was not doing as well. he chuckled a bit when i reminded him of that comment. he seems assured you'll be checking -- you will be stepping into the chancellorship and taking -- he will be stepping into the chancellorship and taking over from angela merkel. guy: you've been posting -- focusing on energy for some time and something those in the building behind you have been thinking about. what have we learned about the administration's approach to rising energy prices. the gasoline stations are probably where the emphasis is being placed. you see a huge pickup in
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gasoline prices relatively quickly. what is the administration going to do about that? annmarie: gasoline prices in the states is the highest it has been since 2014. for any president, gasoline prices hits consumers directly and we know america is a massive driving nation very different from what you would see in europe where a lot are more dependent on public transportation. what choices have told myself and jennifer jacobs's last night there was a meeting regarding the energy world. this is cabinet level. this was vilsack from agriculture. of course energy secretary granholm to discuss what is going on. no concrete steps going forward but they are looking at what is going on globally and what does it mean domestically? domestically, rising gasoline
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prices, that is going to worry this democratic party as they tried to push through their very large fiscal economic agenda. guy: we will leave it there. thank you ray much. annmarie hordern in d.c.. amh seems to be the tagline we are giving her. we have settled in europe. the auction is producing a little bit of a tick lower for the ftse. a little bit of a dip as we come through the end of trading. we also have news. it looks like another u.k. energy supplier is going out of business. there are rumors swirling that there could be more. alix: really interesting. we will stay on the energy story for a second. vladimir putin says his country is ready to supply the natural gas europe needs. the problem is europe's own flawed system.
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we will break that down with maria belova. this is bloomberg. ♪
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laura: i am laura wright. coming up, aneta markowska. this is bloomberg. >> russia thoughtlessly -- russia selflessly fulfilled its contractual obligations to our partners, including our partners in europe and insured uninterrupted gas deliveries to europe. alix: that was vladimir -- guy: that was vladimir putin speaking at the russia energy week which is being held in moscow. let's go back to moscow. maria belova, vygon consulting head of research joins us. she is a member of the expert
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group on russia eu negotiations on transit protocol under the energy charter treaty and perfectly positioned to give us an idea of what is happening. president putin says russia stands by ready to provide europe with whatever gas requirements it has. it will provide. i am assuming that comes with strings attached. what are those strings? maria: the strings are mostly the nord stream 2, which is top of agenda for europe and russia. i think everybody is waiting for this pipe to be launched. hopefully that will happen before the end of this year. according to the procedure, the german agency should draft certification for this pipe by january 8 next year and the european commission also has a couple of months to issue their final certificate. we hope this will happen the end
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of this year. we note underground storage is around 82%. alix: there a couple of angles to this. if we pretend that tomorrow nord stream 2 can be up and running, could russia fill up 100% of that pipeline and pump a lot of gas into europe? maria: it is a good question. the problem is it will depend on the european commission. according to the european energy package, it means not 100% utilization for this pipe. at the same time technically russia can pump as much gas as europe needs. it depends on how severe winter will be in europe and russia.
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guy: will russia deliver the gas europe once on the stock market or you think it will only deliver that kind of gas in terms of the volume europe once if europe agrees to long-term contracts? maria: all current -- has its own electronic asked platform to supply on a spot basis. the position of gas promised to supplies in the long-term contracts is understandable. have the predictability or our investment decisions. for emergency, russia will be ready to supply additional gas volumes on a spot basis. guy: in terms of the risk for
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vladimir putin, there is a perception that he is taking advantage of a difficult situation. he is saying europe is to blame but nevertheless the perception is he will take advantage of it. is there a long-term risk in pursuing this? i'm wondering how you think europe will be seeing what is happening here and thinking about how it uses different forms of energy, does not rely on russia. what is the long-term consequence of what is happening? maria: starting a discussion about gas [indiscernible] the gas supplier for the european market. [indiscernible] the market is almost 50% of worldwide cash trade. all of the additional volumes
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trade on a spot market goes to asian markets where the gas prices are higher. it seems that all the marketplace should rethink the current situation, not just in case of whether to use the renewables or not, but also which kind of price mechanisms to use. if we have the oil late in the current long-term yields 10 years ago, the current gas price could be 20 to $200. it makes sense comparing to 1000. guy: that is quite a big difference. your position to talk about this. we appreciate your time. i suspect it would be great to come back to you to update on what is happening. maria belova, thank you very much, indeed. coming up, we will talk about
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the fed. we have already had the cpi data. we are waiting fed minutes. we will do that next. this is bloomberg. ♪
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alix: live from new york, i'm alix steel with guy johnson in london. this is the european close on bloomberg markets. jp morgan kicked up earnings season with the u.s. this morning. bloomberg's abigail doolittle has those numbers plus what else is moving markets. abigail: we do have jp morgan trading to the downside, down 2%. they put up a record quarter relative to m&a. the bank super busy in terms of deals. the loan growth on the consumer front is disappointing, weighing on shares. that has been a question on the minds of folks, whether loan growth would be strong.
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jp morgan a little bit disappointing. take a look at blackrock. jp morgan also beat on top and bottom lines on the case adjusted earnings in a double-digit way. blackrock, the same deal. relative to revenues they put up more than $5 billion in revenues. a solid beat. shares being rewarded, up 4.3%. one of the top stocks on the s&p 500. the financials are down but you can see the diversions between jp morgan, it will be interesting to see the big banks reporting tomorrow if they follow. blackrock sharply higher, one of the best on the s&p 500. on tech we have laggards and leaders, apple down 1.1% after they said their production would be hurt by the supply chain. analysts think it is temporary but it is along the lines of the inflation question. is it transitory? we have shares down modestly,
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dragging down on sky works, down 1.7%. amazon up .7%. another part of that make a cap tech or in this case consumer discretionary. amd another chip stock up strongly. up 3.9%. pushing and pulling beneath the surface for a relatively benign s&p 500. alix: -- guy: longer dated on the way down. that benefits the tech sector. abigail, thank you very much. today we feel we may have missed a few of those updates as we have watched william shatner going to space. worth it. minutes of the fit latest meeting out later today. michael mckee turns his attention from the cpi data to this. mike, what are we expecting?
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michael: i've been trying to figure out a way to work the phrase "based, the final frontier -- space, the final frontier" into a hit but it has not worked out. just did. alix: could be smoother. michael: we are waiting on the fit -- everyone in line with the view that we could see a tapering starting. jay powell did say in his press conference and say it was likely they would suit be announcing a taper. we will see what they said about the outlook for inflation and whether or not they think it will get too high. right now it looks like it will bring us back to blue origin. alix: what is the language we need to look out for just in case they say this, that might mean something else? michael: not a lot this time.
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alix: you are not building up the excitement. michael: not building up the excitement. this is one of those situations. any discussion about regulation. the news came out last night that randal quarles whose last day is today will not be handling that post anymore. it will not be billed for the time being. did they discuss it and how that would be handled and what did they say in terms of why they were not going to let him continue? that will be something to look for. i do not know if it will be in there but it will be a board decision, but it will be a subset part of the minutes. also we can look to see if there were any new forecasts from the staff on how they were going to do the taper. that is what people want to know. guy: you think the cpi number and the fed minutes will send the same message? michael: when you look at what
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happened with the cpi you see it basically confirmed both sides of the argument. the headline number went up. the core number stayed flat. was there any reason you could go one way or the other? you can see the headline number items are things the fed has no control over, where as the others that are slowing down are the things the fed said would be transitory. you can argue round or flat with this one and you do not get a lot of decisions yet. guy: can you do this? can you do the live long and prosper thing? michael: live long and prosper. alix: if i hold my fingers together and slowly draw them out, i can do it, but it hurts. guy: not a natural thing to you. what is that? alix: it is all i can do. michael: you are waiving into space.
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alix: good times. i cannot whistle, apparently. guy: these are core skills they need to be learned early. how to do this, how to whistle. we will let her practice a little bit. michael mckee, greatly appreciate it. the next 24 hours, plenty of fed speak. we have lael brainard, we have bowman, we have president biden speaking on the supply chain issues. alix: tamari of earnings from bank of america, morgan stanley, and wells fargo. -- tomorrow governance from bank of america, morgan stanley, and wells fargo. questions about booster shot risks. that wraps it up for me and guide. jeffries chief economist will be joining david westin on "balance of power." this is bloomberg. ♪
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guy: from the world of -- >>
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from the world of politics to the world of business, 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." president biden meets today with a group of corporate leaders and administration officials on the racial issue of supply chains and what we can do about them. for a preview we turn to our washington correspondent, joe mathieu, host of sound on on bloomberg radio. give us a preview of what we expect to hear about the supply chain and what the president can do about it. joe: is not the first time the president has convened stakeholders on supply chains and supply shortages. today is coming with more news. the port of los angeles moving to a 24/7

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