tv Bloomberg Markets Americas Bloomberg October 21, 2021 10:00am-11:00am EDT
guy: thursday the 21st. 30 minutes into the trading day in the united states. in london, i'm guy johnson. alix steel is over in new york. welcome to "bloomberg markets," everyone. equities still a little cautious today. the earnings granularity is important in terms of what is happening with single stocks, but by and large, little cautious. rates pushing higher and higher. alix: particularly on the front end. the stock is trading a little bit heady. utilities and health care are in the green. that is a classic safety trade. yields pushing higher, up to basis points on the two-year, 41 basis points is where we sit. no surprise you are seeing some money flow into the dollar, the yen, and the swissie. euro-dollar down. $1.16 is where we sit.
the bitcoin futures etf now down after the third day of trading. jp morgan coming out and warning of an increased cost of carry when you are playing this futures role. we have been talking about it for days, that it will definitely cost you, and there's more futures etf's coming down the pike in the next couple of days. guy: the data continues as well. the market is front and center as we watch this right liftoff starting to take hold. better than anticipated in terms of the numbers we are seeing. we are at 6.29. the market was expect in 6.1. we are up from 5.8 last time round. month on month basis, that take this 7%. that may be post delta dip is starting to gain traction again. alix: let's talk about what is actually gaining traction in some of the top stories today.
birds sonali basak is looking at -- bloomberg's sonali basak, abigail doolittle, and annmarie hordern. let's go to we work. you've got a failed ipo. wework is finally public through a $9 billion back deal. it is trading at $11.05 now. is this a success? sonali: i mean, this is a much smaller company. it is a success in that it is trading very smoothly and trading higher today. you have a market cap right under $1 billion -- or $9 billion. but of course, that is a far cry from the 47 billion dollars that we once saw it flying at. remember, adam neumann walks away with more than $2 million, despite stepping down from the board. he does retain some relationship with the company. however, this smaller, slimmer we work that still has a lot of
losses to contend with is something that you see people buying the story for, at least for today. guy: we will dig into the details a little bit more of a little later on as we track the progress of the newly listed wework. let's turn to the earnings story we are tracking so carefully at the moment. it picks up even more in europe next week. there's plenty to dig into right now. abaco doolittle come over to you. abigail: tesla shares in the premarket overnight had been lower on a somewhat cloudy outlook. you can see investors rewarding the company, up 2.1%. sales very strong, beating consensus, plus a record profit. we will be taking a look at that in a moment. autonation soaring, up about 11.7%. they beat in a big way on profits. ibm on that chip shortage. then we had some losers, ibm and freeport not doing as well.
take a look at this. for the third quarter, $1.62 billion, sharply higher on a sequential year-over-year basis. this topic -- despite the chip shortage, it is not affecting tesla at this point. you saw ibm and freeport-mcmoran very weak on the day. we are looking at the biggest punishment for companies that missed going back to 2017. the average move down is 4.3%. much more so over the last couple of years. 2017 not again shown on this board. that's how big the declines are for companies that don't manage well and don't beat expectations. alix: that a such a good point. thanks very much, bloomberg's abaco doolittle. stay with us for earnings. we are going to talk to gary kelly, southwest ceo, later in this hour, and mike jackson, autonation ceo, as well. let's go to d.c. chances of an agreement on how defund president biden's social spending plan are once again receding.
negotiators are working on a tax hike and climate plans with senators joe manchin and kyrsten sinema. annmarie hordern is on capitol hill. it just feels like more turmoil every moment we are looking at d.c. annmarie: and speaking of more turmoil, "the york times -- with the new york times -- "the new york times" contained a scathing article of kyrsten sinema. is a lot of politics going on, but to the reconciliation bill, as you said yesterday, it did seem that we had at least a baby step forward in terms of how they were going to skim down the proposals and be able to come to some sort of agreement. this morning, it just feels like there was a massive step act. they are now going back into looking at how they are going to have the revenue stream for this because senator kyrsten sinema, one of those holdouts in terms of corporate another taxes.
they are looking at things look a billionaire tax, a tax on corporate buybacks. it is back down to square zero. the second thing i would also say is the president has two meetings with progressives and moderates at the white house on tuesday. in congress, speaker pelosi is saying that actually, the community college, getting rid of that in the child tax credit for one year, not until 2025, she says no decisions have been made on that. so what decisions have they actually made? that is still a key question. the president trying to sell it, and trying to sell it this evening to the american people in a town hall, but he really needs to sell it to his own party. guy: it is amazing to see the divisions that exist and fomenting those kind of conversations around joe manchin's future and whether or not he stays within the party. he had a pretty robust response to that. annmarie, think you very much
for that. let's talk a little bit about giving you an update on some of the stories we have been hitting. i want to take you back to tesla. the ntsb is out with a report. her number that crash of a tesla car back in april? we have been seeing an ongoing investigation around that. the creek will headline, investigators clearing tesla's autopilot in that fatal crash. the investigation is ongoing. alix: the stock up over 2%. in the bond market, the five year yield now at 1.20%, the highest since february of 2020, pushing higher. jobless claims were inching lower. you see a move in the two-year as well. breakevens also high. five your expectations the highest since 2005. all of those signaling higher yields. coming up, we get reaction to that, plus and investor's take. this is bloomberg. ♪
guy: yields higher and higher. the u.s. five-year touching within 215%, the highest since february within 2.5%, the highest since february -- within 2.5%, the highest since february. joining us now is in of her, chilton investment co. cio -- is jennifer foster, chilton investment co-cio. how do you position for higher rates? jennifer: there is still $11 trillion of negative yield globally. that should act as a governor on rates running away. but what we certainly are seeing is that the underlying forces of
the economy, even though there is a lot of noise, are pretty strong. that could push rates higher. we know the fed is going to taper starting soon, and that could also gently push those rates higher. we don't see them running away. but to position for that, you do want to be in companies that don't have a lot of leverage. that is one way to make sure your portfolio is somewhat safeguarded from rates which shouldn't run away, but of course, there can be spikes as we readjust to a more normal future. alix: is the pass of least resist -- is the path of least resistance for a steeper or flatter curve? jennifer: october is known to be a month when there's a lot of confusion in the markets. i thing we are seeing that because on the one hand, we are definitely seeing labor inflation, and we are definitely seeing signs of commodity inflation.
the often is, well that commodity inflation rollover as the supply of commodities catch up with demand, as we move past the peak of these delta cases, and hopefully we get more certainty in the virus? if that happens, the economy forces should rise to the front, and those still feel pretty good to us. we still see a slightly steeper curve ahead because the economy seems to be in good shape. guy: absolutely. but as you say, the inflationary story and the input cost story is definitely going to be there for companies to have to deal with. do you think this q3 earnings season is going to give us the clarity we need as to who is a price taker and who is a price maker? who can pass on these input costs to consumers? i look at unilever overnight,
raising prices by 4.1%. are those the kind of companies i need to focus on? jennifer: we at chilton have always believed that you want to be invested in companies that have the ability to take price. it is sort of an inflation hedge that you just can't ever beat. so yes, the earnings season will help understand which companies can take price, which ones don't, but also, and some industries, there are contract lengths that require price to go into effect over time. it is not an immediate thing. so we have to take that into consideration as well. but for some companies, they are going to take price if we see some commodity inflation rollover. those price hikes tend to stick, and that sets those companies up for pretty nice earnings in the future. so there is a lot of noise out
there, but the earnings season is great because you always get to hear from the horses mouth, and we love that as fun a mental analysts, hearing from management teams. alix: it feels like all of the horses are seeing something similar. energy is up over 11%. financials up by 7%, which makes sense in the higher rate, higher commodity world. how much juice do you think is left in that rally? jennifer: i tend to be a little cautious on chasing the commodity moves here, simply because i am just looking at the charts of that delta spike globally. it is very interesting just to see how large -- in our country, it wasn't the largest wave of this virus, but globally, it was very meaningful. we are on the downside of that. so it just feels to me like supply chains are going to start to -- and supply of commodities
is going to start to kick in at some point here. we will see. it is unclear. but certainly, good companies, high quality companies that have control over their destiny, that have pricing power, that don't have too much leverage, they exist in all of those industries, and those would be the companies we would be seeking out at this moment. alix: jennifer, thanks a lot. we appreciate it. coming up, southwest cutting its flight schedule yet again. it does not expect to be profitable this quarter. ceo gary kelly will join us next. this is bloomberg. ♪
august. let's get the details now from gary kelly, southwest airlines ceo. the stock is down by about 1.5% so far. i just want to get your understanding of trimming your flight schedule. is this the bottom of trimming? gary: i think so. you're right, we are still working our way out of this pandemic. we are beyond the survival stage and into the stabilizing phase. it is just a matter of getting our staffing aligned well with our flight activity and customer activity. so it has been really sharp -- the good news is there has been a sharp improvement in demand and travel and revenues. the delta variant surge in the summer definitely hurt that, and by $300 million in the third quarter. that in and of itself is sort of an illustration of how volatile the world and the environment still is for us.
our normal staffing models just aren't as defective right now, so we are trying to make sure we don't overcommit and we deliver a great product for our customers. guy: you said in the notes this morning you were too aggressive going into q3. are you being too conservative going into q4? gary: i don't think so. relative to 2019, our capacity was down in the third quarter just 1.6%. we were pretty close to being back to 2019 supply of seats and available seat miles. so it will be about 8% less in the fourth quarter compared to 2019. that is still a nice recovery from where we have been, just not quite as aggressive as where we were in the third quarter. as soon as our staffing and catch up, we will look forward to growing again in 2022 -- staffing can catch up, we will
look forward to growing again in 2022. alix: i wonder if you have noticed anything in terms of looking passengers. are they going to other airlines? how do you keep that market share when you are still dealing with the capacity problem? gary: our capacity compares well in terms of our share, so there is not an issue there. we need to serve our customers very well. with the problems we were dealing with earlier in the month, that really set us back. but our bookings look strong, especially for the holiday time period, so we will work hard to make sure we maintain the trust of our customers because we clearly let some people down over that couple of days. it was not self-inflicted. the trigger was the faa atc issue in florida. but nonetheless, we had to scramble to get our flight crews and airplanes back in position, and that took a couple of days.
guy: where is the landing zone for profitability? our high -- are higher oil prices going to push that out? gary: i think that is the main thing that is changing from third to fourth. one is the delta variant obviously is in decline, and then fuel prices on the other hand are on the rise. so you have a plus and a minus going into the fourth quarter. for the delta variant, we would have been handsomely profitable in the third quarter, which i think bodes well, especially compared to where we have been for the past 20 months. so demand is back. that is the good news. now we just need to make sure we can deliver well with operational quality, and that is our focus. so i don't know that we will be profitable for the fourth quarter. certainly i am not going to give up on that. but we will hopefully get off to a good start in 2022.
hopefully 2022 will be a very good year. alix: a lot of analysts are looking at $90 oil, $100 oil, etc.. if we stay with these levels over the next few months, can you realistically be profitable in the first quarter? gary: it makes it tougher, no question. i think it is $120 million in terms of the increase in fuel cost. the fuel hedge is worth over $900 million, so that will help mitigate the increase is somewhat. but i think we are going to have to continue to do a couple of things. one is we need to restore our capacity to have all of our assets in the air working. number two, we need to deliver a high-quality product, which means we have got to have the right staffing. fuel prices are going to be what they are going to be, so hopefully we can make all of that work sooner than later.
guy: you talk about hiring aggressively at the moment. can you walk me through how challenging that is at the moment? how difficult is it defined the right people to get the aircraft into the air because the aircraft you've already got parked, circa 20 at the moment, up in the air, how big a challenge as it? gary: things have changed. the world has changed under the pandemic or get you all know worldwide what the challenge is with getting people back into the workforce. if you take the u.s. as an example, the participation rate has dropped by several percentage points. we are seeing the same thing both within southwest airlines and out, trying to recruit and hire people. we've hired about 2500 people. our attrition rates are somewhat elevated. we are seeing people out on leaves. of course, there are covid cases
that are influencing all of those things. so it is just a different environment which is why many to adjust our capacity plans accordingly. but we are hiring. we are a very attractive employer. it is a great company. we've got a 50 year history of no furloughs, no pay cuts, no layoffs, and we've got a great future ahead. i am very confident we will do it. we will just have to prove to ourselves the pace that we can hire before we get out there and publish schedules. guy: you are a government contractor. you carry the mail. the president says there is a mandate for people to get vaccinated. you are not so sure. how many of your staff are currently fully vaccinated? how many do using are going to be fully vaccinated by the 24th? if they are not all, what are you going to do? gary: when you say we are not quite so sure, i am very much in favor of getting the world vaccinated, number one, so we
can defeat this pandemic. at the same time as the leader of our company, i don't feel like i should impose my will on others and force them to get vaccinated. so we are going to start from that position area we are a government contractor, and you are right, there is an executive order that mandates that our employees be vaccinated. so we are going to do everything we can come our best efforts to comply with that executive order. the date is november 24. we are making good progress in encouraging our employees to get vaccinated. if they can't get vaccinated, we are encouraging them to seek accommodation for religious or medical reasons. we will see where we get to on november 24. the white house is sort of evolving the requirements to comply with the executive order, and we are going to do the bare minimum to comply, if you will, because it is not our purpose to
ensure that everyone be vaccinated. we are encouraging that. we want to maintain those government contracts, so we will do every thing we can to comply. guy: what is the number now? how many of your staff? gary: we've got over half of our employees have reported their status. those that have reported, a super majority of those are vaccinated. i am not willing to give you a prediction yet. we will see how things play out, and we are seeing good progress, and i hope we will see great progress between now and the 24th. guy: gary, we wish you all the best. thank you for taking the time to be with us today. we look forward to hearing those numbers. gary kelly, southwest ceo. this is bloomberg. ♪
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trip for wework in its quest to go public, but has finally happened. the shared office space provider is finally trading on the nyse after a two-year saga. it opened at $11.28. here with more, sonali basak, bloomberg wall street reporter. is this a tick in the box for mr. neumann? this is something he has talked about for a long time. he's walking away with a lot of money. it is finally happening. walk us through where we are in this journey. sonali: we are looking at a much smaller company. you see that in the evaluation alone. it is a warm reception this time for wework, and for the ceo and softbank, who are now to credit for the transformation and a smooth onboarding into public markets, much different than the drama we saw a few years ago. at the end of the day, this is a company that is highly exposed to a comp look at it sector in
real estate, at a time where people are exploring what the future of work should look like, and a lot of tough changes still to make ahead. alix: why now? we are at a confusing time in the market. we don't know about rates, about inflation, about the delta variant. sonali: any company going public, if you don't do it now and you wait into next year, you face a lot more headwinds in front of you. you could argue as well that it is more volatile then maybe a little earlier this year, but we have seen companies go public earlier this year with a lot more volatility baked into the markets. there is still a demand for companies that have growth on their side and have an upward trajectory and places to make money from, but this is a much smaller company, and therefore probably easier to invest in. guy: let's pick up on that point, the opportunity for this to be a growth company.
we don't know what the future of office space looks like. how you look at wework at the moment and make future projections in an environment where who knows where the people are going to -- knows whether people are going to work from home, wework offices, or similar competitors? sonali: it is a great question. you can look at it glass half-empty or half-full. you don't know what the future of work looks like, so how do you make a bet on wework? or, wework is a more flecks of option, and therefore better to invest in. you can look at it both ways. something that is interesting, their relationship with big corporate partners as well. working with ubs and bank of america on large office spaces. and then also come apart at the score they had been able -- also, part of the story they have been able to deliver to investors is getting rid of unwanted assets in the real estate space.
that ability to be nimble is on wework's side, and it is not something that investors are right now picking up on. it has been such a long road, guys. alix: i remember talking about this years ago with you. do you have an idea of who is buying today and who is selling? sonali: the retail interest will be interesting to get at the end of the day because this is not just we were up, which is a long and recognize will name amongst day traders, but it is also spac. we have seen a lot of day traders pickup. you ask why now. because the money is available to do so, and they did not do a traditional ipo, which would have had a much more involved roadshow process. we've talked about bad spac's all year. right now, you are up almost 8% on the day for wework, so as smooth as a transition as you can possibly get. alix: true.
the appreciate it. bloomberg's sonali basak joining us there. another company making its wall street debut is chicago-based restaurant chain known for its hotdogs and roast beef sandwiches, portillo's. let's talk to the ceo now, michael osanloo. michael, $28. your thoughts. michael: just listening to what you were saying about a tough ipo market, i think that kind of belies that a little bit. we are excited by that. we think we have an amazing growth story, and i think it just suggests there's a lot of appetite, pun intended, for outstanding restaurant stocks. guy: let's talk about the growth opportunity. you've got 20 -- eve got plenty -- you've got plenty of -- would
you call that, the beef truck? you're dishing out free food in times square. you're mainly based in illinois in terms of your home market. you got places in vegas, down in florida, some places in l.a. where is the opportunity? what are you going to use this opportunity to deliver in terms of expansion? michael: the great news for us is we think the full potential in just the u.s. is well over 600 restaurants. this isn't my opinion. this is a fact-based study. our growth is going to come from growing across the midwest. we are already in 7, 8 states, and we will keep growing across the midwest, leveraging a strong brand based in chicago. then we are going to grow along the sun belt. we see tremendous latent demand in arizona, florida, and texas. those three states will be a very big part of our growth equation over the next decade. alix: tell me about how your customers are coming to eat
right now and how you expect that to evolve as you expand. are they in restaurants? are they doing the trucks, doing take out? michael: that is a great question. it is little more nuanced than i think people fully appreciate. in 2019, about half of our business was dine in. when you fast forward to today, it is still only about 31% dine in. the rest is coming through our drive-thru's, take out, third-party delivery. i think the dine in business in the u.s. has not come back quite as strong as people might have thought. i personally believe there's some tailwinds for us. i think the folks who choose to use restaurant companies via the drive-thru, via third party, via digital, that is a different kind of occasion and demand. there is still pent-up demand to go back to restaurants when people feel safe again. guy: how easy is it to scale what you do? each of your location, each of the menus but different.
it isn't cookie-cutter. michael: here's what i would tell you. it is more cookie-cutter than you might think. the kitchens, the layout, the sales motion to the guest is 100% cookie-cutter. what is unique is the cosmetics and that the core of our restaurants. we want that restaurant to fit in to the local population. a perfect example, we built a new restaurant this year in sterling heights, michigan. it is a traditional portillo's kitchen line. it is set up the right way. it's got the exact same menu as our chicago restaurant. but it is an amash to the -- it is an homage to the auto industry. it is not lost on us that there's three big automotive plants within five miles of that restaurant. alix: that is smart. you really made guy's mouth water at that point. let's talk about your input costs. the pictures are pretty cool about your different restaurants. inside, you are probably dealing
with rising wages for your workers, rising costs for pretty much all food items, shipping, etc. what is your biggest headache? how do you manage? michael: i think most people will tell you that labor costs are obviously very high. the labor market is constrained. we are a value-based organization. i believe in enlightened capitalism. so we have been taking great care of our team members. we pay well above minimum wage. during 2020, within the heart of covid, we didn't lay off a single person. we invested in our people, and our people are unbelievably loyal back to us. they love working for portillo's. they work exceptionally hard and they give our guests a great experience. i am not saying we are totally immune to the pressures on labor, but i feel like we are in a really good spot because we take care of our team members, and they are a little more loyal to us, and they work really hard. when it comes to commodities, we
are facing the same dynamics as everybody else. it is just a volatile commodity market. we try to be really smart about forward buying, about taking excess inventory at the right time. we have price targets that we go for for the most important commodities. we use a shoulder method for arby's commodities in a certain range, so we'd budget for an appropriate level of inflation in 2022. thus far, we are seeing slightly better-than-expected outcome. guy: what is my producers has run through the numbers in terms of what your sales figures look like. 23% beef, 60% sides and fries, 20% hotdogs. those prices are going up. are you raising prices for the consumer as a result of that? michael: our strategy is to be a price laggard. we took a little but of pricing early this year. we took a little but of pricing in the fourth quarter.
we believe our value proposition is one of the reasons why we are such a successful company. the average person who comes to portillo's spends $9.60. think about that for a second. $9.60 for an abundant, high quality meal in a great environment. so we are slow to brace prices -- to raise prices. we are done for this year. if commodities continue to be volatile, we will look at a bit of pricing, but we believe keeping a sharp rise point and driving traffic to our restaurants is one of the keys for success for us. guy: when i finally make it back to the united states, i look forward to trying it all. thank you very much for your time today. a pleasure. michael osanloo, portillo's ceo. alix: now we have a lot to do when you come here. guy: i am hoping i get to chicago. i have a few people to the up
ceo of aragon global management. they stayed open for 10 years, converted to a family office, and recently reopened to outside capital. it is great to see you. you are on the hunt for companies that can double earnings in the space of three to four years. tell me about some of those companies. anne: we are looking for companies that can double their earnings power in three to four years. today, with cloud and ai and digitization, that is reshuffling the decks in every industry. there are going to be winners. there are going to be losers. we are trying to find the winners who will double their earnings power in this time. one of the companies we think fits the bill is bill.com, a company founded by -- after some time at intuit.
this reorganizes your entire back office, everything from payments to any kind of back-office processes so you the entrepreneur can save time and spend time innovating. the company is going to grow tremendously for two reasons. it's got about 150 thousand customers today. it is going to double that number of customers. for each of these customers, instead of having one or two products like check paying or transfers, it is introducing new products, and those products are much more, -- much more profitable. so these things will make it in our view a tremendous growth story. alix: digitizing --erik: digitizing accounting and the back-office or to medium-size businesses. ok. what is another one? anne: i want to move to europe. we are talking about a company called is asked -- sixt. it is the number one car rental
company in europe. they started in bavaria, then expanded to all of germany, then europe. there is tremendous recovery in the earnings part of the company because it was affected by covid. now we have another engine of growth, the u.s. this company is digitizing and transforming into a new business. there has been a generational shift. the founder has passed on the reins to his two sons. the company is becoming a mobility company for long distance all across europe, as well as a long-term car rental company where you can walk into a car, and with a qr code, rented for one day, one month, when year. erik: i was going to ask you if companies that can double their value exist outside tech, and you just answered my question. anne: i call it non-tech tech.
it is going to double its earnings because of a digital transfer may. erik: you want both blick and private markets coming correct -- markets, correct? anne: yes, you have public and private companies, so we have to talk to both. erik: in the public market, everyone in theory has access to the same information. it is made to best man and woman win. in the private market, there is still more opacity, and there are some investors, tiger global, for example, but others that are throwing around enormous sums of money in the private market. how do you swim with those sharks? anne: in the public markets, it is like drinking from a fire hose. it is not how you have access to information. it is how you process it. our approach is to use themes that travel, whether public or
private. if you have dislocation in the sector, the winter could be a private company or a public company. let me give you an example. we recently invested in a company called miracle, a marketplace software infrastructure company. if using the shopify and what they do for the small merchant, this whole operating system, and if using of amazon on the other side, with a gigantic global marketplace, they do it in the middle. so the turnkey where you can suddenly have a market bytes. that came to us because we know this is going to be successful. we have seen this movie before. i think the fact that public market investors are also aggressively investing in private investments it is because the medically, they are the same -- because thematically, they are the same. erik: you said we have seen this movie before. is that part of what differentiates you, having seen a type of business model and then something similar reemerge?
anne: whether it is in latin america or in france or in the u.s., there is a wrong way to develop a business model. if you are transporting a business model across to europe and it has been successful in the u.s., you know it is going to work. we invest in a company called zoo plus. -- food settling services, etc. there's a blueprint of success, and we are trying to buy that. erik: you've worked with the best. george soros, broken miller, julian robertson. what does it take to stand out
as an equity long short manager today? anne: i think everyone has their own recipe for making money, and what is important is it is consistent and patient. if you are finding companies that have great fundamentals and are going to be successful, that is going to translate into financial earnings power that is also of that nature. think that is the common denominator between people. to me, it is a mosaic effect. you have to put it together to forecast the future before everyone else figures out what is going to happen. erik: i've heard you use the term european digital tsunami. what exactly is that? anne: i think it took a pandemic and brexit to have europe come into its own. i think there is a digital moment happening right now.
i have grown up in europe and worked and traveled all across europe, and it has always been very fragmented. you have always had a spaghetti bowl of languages and countries and regulations, impossible for this fragmentation to have european champions. that is changing for a few reasons. first, with technology and the digital and technology stocks, it is a little bit like the advent of the euro. you can be in business in any country in europe if you have a strong technology stack. you don't have to wait five years and have a team in stockholm and barcelona and milan. it accelerates the way you can do business all around europe. there's also a lot of money. private capital, public capital, entrepreneurs starting funds for succession, and even governments are added. so a combination of technology
john: it is time for the bloomberg business. i'm john hyland. pent-up demand for the first u.s. bitcoin exchange traded fund has driven assets in the investment vehicle to more than $1.1 billion in just two days. the proshares bitcoin strategy etf ended wednesday with $1.1 billion under management, according to a press release. data shows that it the quickest and etf has reached the $1 billion mark. oil dropped amid a broad-based intrigue -- broad-based retreat
in global commodities. the structure of the u.s. crude market was soaring as stock aisles continue to drain at the hub in cushing, oklahoma. there had been talk of global oil hitting $100 a barrel. that is the bloomberg business flash. alix: thanks so much. and speaking of commodities, today is "commodities edge" day. we will talk about the oil market. so, i will talk to mark mcguire about the company's new digital asset exchange built on bitcoin's exposure to precious metals. guy: sounds like quite become a nation. we will turn our attention to the european close. freya beamish, ts lumbar's -- ts lombard's head of macro research, will join us. this is bloomberg. ♪
johnson and alix steel. ♪ guy: thursday the 21st. 30 minutes to the close. what do you need to know out of europe this hour? it is all about earnings. that is the main narrative we are focusing on. unilever front and center, raising prices by 4%. that is the most in a decade. this as it pushes rising input costs on to consumers. the company's ceo saying inflationary pressures will be around for at least another 12 months. that is worth thinking about. barclays quarterly profit more than doubling. the investment bank which had been strongly backed by ceo jes staley smashing it out of the park. we will hear from him this hour. for the rates story, turkey cutting interest rates by 2%, going