tv Bloomberg Markets European Close Bloomberg October 21, 2021 11:00am-12:00pm EDT
♪ 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 against the grain.
200 basis points. the lira continues to fall, down circa 20% already this year. let's talk about where we are with markets right now. yields up, i.e. prices down in the bond market. the stock market fairly flat. one of the big drags, the resource sector. miners under real pressure in europe. alix: similar in the u.s. as well. freeport not meeting their production output goals for copper. same thing with certain individual miners in the u.k. it is definitely earnings here in the u.s. ivf had some issues last night when it reported. cloud services are doing well, but not enough to offset slowing revenue from its traditional business. that is taking a bit longer. wework nicely up from its ipo. it is at $11.25. finally going public, years in
the making. freeport down by over 2%. we also have yields rising higher. not as high as in the u.k., up by 6, 7 basis points. guy: i want to take you back to a conversation we were talking about in the last hour with portillo's from chicago. the company ipoing today. pricing at the top of the range, it has gone out the door at $26. so decent demand coming through from that stock as it comes to market. it sees huge opportunities to expand across the united states. let's talk about what is happening here in europe in a little more detail. eu heads of state are in brussels for a two day summit, discussing ways to address the energy crisis. soaring energy prices exposing tensions within the bloc. the outgoing german chancellor angela merkel addressing this challenge.
chancellor merkel: we need to clearly distinguish between the challenge we face in the fight for the climate. this is something different. this is about answering the question regarding what is leading to these spikes in energy prices. guy: we are joined by our european correspondent maria tadeo from brussels. they are not talking with one voice, but are we making progress in figuring out a way for europe to deal with this problem? ? energy prices are rising sharply and continuing to do so. maria: yes, and we have seen that week in and week out. the energy crisis dominates the conversation here in brussels today, but the question is how to fix it. that is where divisions come into play. as you know, the energy market in europe is incredibly complex and incredibly fragmented. there's countries that tend to use nuclear, others coal or gas.
that is the question of how you transition to greener energy. going to the summit, the french and spanish said they wanted to see collective eu action, whether that meant renegotiating some of the big contracts as a single unit or perhaps the storage with joint procurement. today, the impression that we get is this is probably not going to fly. emmanuel macron decided not to speak about this today as he made his way in, and the spanish prime minister said ultimately, this is brussels that takes a long time to manage that. when it comes to day two of the summit, we are not really expect any big solutions, and that is a big headache for governments across europe, who are really trying to shield households from that increase in the wholesale price. alix: the idea eventually is that they could all band together and have more pricing and bargaining power when it comes to wholesale buying of energy from the likes of russia. i find it really hard to see how 27 nations are going to do that
when we have a changing of the guard in germany and an election in france as well. maria: yes, and you know, supporters of that idea argue that when you look at the vaccine campaign in europe, the fact that this was able to be done and get done in bulk brought down the price and was able to put the eu in a better negotiating position with some of the pharma companies, so they argue we should replicate this with the energy companies. the problem here, as you say, is this energy market is incredibly fragmented. there's countries that are much more advanced on renewable energy. others are very much dependent on gas. when you look at germany, they spend a ton of money on the nord stream 2 pipeline to still rely on gas. then you have the french, who say if anything, we should be turning to nuclear, but that is a political no go in other countries. the issue here is perhaps well-intentioned, but the problem is how to execute a good idea, and joint procurement
could be very problematic if you look at the different energy components in every country. to see this happening tomorrow, i think it is unlikely that we will see anything that looks like eu 27 procurement. alix: great reporting. maria tadeo joining us from brussels. energy costs are just one of the challenges businesses are facing, adding to an inflationary environment we haven't seen in decades. bloomberg spoke to unilever's ceo about earnings. >> i think inflation will be in the first half of 2022, and it will moderate as we move towards the second half of 2022. so i think we are in for at least another 12 months of inflationary pressures. we are in a once into decades inflationary environment, and therefore we have stepped up the level of pricing. alix: joining us for more is freya beamish, ts lombard head
of macro research. is 12 months still considered transitory? freya: what we have to be careful about here is to clearly define transitory and stagflation. i think the stagflation element can be broken down into an appetizer of stagflation and a full-blown main course. the reason why it is difficult is because we have more than one cycle running at the same time. what i would call the appetizer is what we have running right now. we have the energy prices. we have prices rising very rapidly. at the same time, we have growth starting to slow. it is because we are in that art of the cycle where, which happens in every cycle, where growth is slow and inflation is still high. but this is such a an abnormal cycle. it is a very short cycle, which started with the shutdown in the economy and in the v-shaped recovery, and the amplitude of the cycle is massive, so it is
in response to every thing else going on. we are in the cyclical stagflationary part of that cycle, but there is an underlying cycle which is much more of a long-term thing, and the jury is still out as to whether that is going to be a more stagflationary cycle going forward. but it is important to make these distinctions. if i can give you a conclusion as to how we see it, we think the stagflation appetizer will go on and we will continue to see these supply-side shocks because the economy is just less able to respond. that will cause a lot of volatility for markets. it is difficult for markets to understand. this gravitational deflationary force that starts to exert itself and the second half of next year, before you get the question of stagflation being
opened up in the longer-term. guy: this whole show is about food. it seems to be eating into everything, to excuse the pun. you talk about the volatility that will be generated from this. what is the message you would give to investors as a result of what you are describing? freya: there's a lot of volatility, but because of the deflationary forces and the disinflation we are seeing, by the end of next year, i think the direction of markets is going to be defined by the deflationary forces. china's slowdown and the depreciation of the renminbi. that actually opens up bonds as a portfolio hedge again. that at least gives a silver lining to what is a very difficult market environment to navigate, but at the moment, we still are very much in that quadrant of this bizarre cycle in which stagflation is
dominating, and it is hard to know exactly where. alix: if we are in the stagflation appetizer and central banks are taking that opportunity to pare back stimulus, leave the pboc out for a second, and the ecb i guess, what does that do? freya: behold monetary fiscal framework is starting to be established since the price has been excel rated since the covid crisis. that is my thought for entering the longer-term question on the main course of stagflation. but in the meantime, the deflationary forces that i think are coming online from china's slowdown and the ending of the chapter of chinese growth, and therefore global growth, that actually starts to take the edge off of this hawkish tone we heard coming through from the fed. it is really jackson hole when they started to wobble. that starts to push them back
onto needing to stick to the guns and be slightly less hawkish. so you have to take a very global view of it, and i think those narratives will come in quick succession, so certainly we are less worried about term premia continuing to rise in the second have of next year than we are at the moment. guy: any idea if it will cause a major stock market correction? freya: i think at the moment, we are still in the volatility stage, but to be honest, china is shifting to a completely new structural paradigm. the property market there is broken, and it is a completely different structural growth pattern that we will have going forward. it is the end of an era in china. that seems like something we can put in a china box over there, but actually it is going to impact commodities. first of all, it will come through for the miners, then
impact luxury, autos. these all have very high earnings in china, and we know that the stock market is not the economy, so even developed markets are going to have this impact coming through from china. so i think yes, a correction is coming. the timing, i would say we have to go into the china story and a lot more detail to get the precise timing on that, so maybe we go to that later. guy: funny you should say that. let's hold that thought. we will come back and carry on the conversation. we will get more granular on what is happening in china. freya beamish, ts lum barred -- ts lum barred -- ts lombard, is going to stay with us. the broader housing market isaac is extremely edited to this narrative -- extremely relevant to this narrative. house speaker nancy pelosi is talking about the fact that we are seeing a narrowing of possibilities for the economic
agenda. progress is being made, "great progress," she says. she says that kyrsten sinema's position is "well known." maybe well known to everybody else. my question, is it well-known kyrsten sinema? alix: based on what we know, probably not. i want to update you on noaa, the weather report for the winter that comes out. it is going to have a direct impact in terms of natural gas and heating demand here in the u.s., which will also affect what we can ship out for the likes of europe on the u.k. noaa is saying they expect below average temperatures in alaska and the pacific northwest and above average temperatures in the south this winter, plus wet conditions across the northern u.s. so wetness in the northeast, and everywhere else is going to be above average to mergers. some of the it won't be that bad. i don't know. guy: but that is just north
america. they are not making a production for over here. alix: just the u.s. guy: so you guys look ok. it is going to be a bit colder up north, something i am very familiar with. that sums ok. that sounds like a manageable situation. isaac what everybody is worried about is this kind of really cold northern hemisphere winter, which doesn't sound like we are quite there yet because that is going to impact russia, impact europe. that is going to be the challenge here. alix: maybe we won't be so natural gas and power challenged. that is the latest from noaa. this is bloomberg. ♪
alix: let's get back to china. shares of evergrande falling following a three-week halt. there was going to be a lifeline , and it doesn't sound like there will be one any more. where are we here? reporter: the next 36 hours will be pretty revealing for the property sector. they had a deal in place with hobson. that deal fell through. it would have gone a long way to allowing the company did not default on the $83 million coupon payment, the 30 day grace. expires this weekend. so we will know a lot come this weekend. and then the third largest issuer of china property that basically has a $36 million coupon due tomorrow. we will find out whether they make payments on that, and all indications point to the fact that they may not. so the next 36 hours are going to be very revealing for china property, for sure. guy: thank you very much, damian
sassower of bloomberg intelligence. let's quebec to freya beamish from -- let's get back to freya beamish from ts lombard. there was a quote from mark cudmore, who wrote a piece this morning, "real estate sales plunged around 90% during the peak home buying season recently. china can survive evergrande's collapse. its economy and the markets will be decimated if there is a systemic property market correction in china." what is the likelihood of that happening? freya: we are monitoring the data on the high-frequency data that we can scrape from baidu and pretty much anywhere we can because it is such an important question. i think essentially, the property market model that had been in place for decades in china is now broken. that is a massive statement. it is hard to explain exactly
how big that is. but evergrande is sort of the canary in the coal mine of a chapter of growth of economic history, the debt model is ending, and we are moving into hopefully a greener outlook, but the question still remains on the debt side of things. that may be a question of a longer outlook, but in the meantime, that previous chapter is going to have a various sting in the tail for the next 12 months. essentially, to put it in a nutshell, the chinese policy put is no longer effective in the way it has been in the past many cycles we have had over the financial crisis. alix: markets don't seem to care.
i don't see any contagion, even if there may be a pboc cut, for example, to help. why do you think that is? should there be a bigger reaction of contagion? freya: there was a lot of reaction initially, and it all seems to have died down to the stagflation story. i think that is natural anyway because i think rockets are still putting a lot of faith in the china policy put, but i think that faith is misplaced because the chinese policy put was actually before covid, but the evidence of that had been completely knocked out by the severity of the covid cycle. now we have a situation where china has actually been tightening since may of last year. credit growth has slowed very dramatically over the course of this year. that is an indicator that the chinese economy is slowing very rapidly at the moment.
it is an indicator that global growth is probably already slowing. the point now is that markets are probably relying on this put coming through, and about halfway through next year, we are going to realize that money from credit growth aggregates are not picking up, and further into next year, we will realize the real economy is not picking up. guy: what does that mean for europe? europe relies on russia for energy, china for experts. what does the situation look like for european growth? freya: it is a combination of a lot of volatility, but i think the gravitational pull is by china because this is the ending of an era for china, and it is a cyclical slowdown that has to take us to a completely new structural environment. that probably dominates the direction of markets, and then you get a lot of volatility
caused by the supply-side disruptions which are ongoing. but it opens up bonds as a portfolio hedge. alix: really great to get your perspective. thank you very much. coming up, you've got turkey cutting rates yet again. the lira weakening against the dollar yet again, as the central bank moves. more on that next. this is bloomberg. ♪ ♪
alix: turkey's central bank chief delivering a bigger than expected rate cut. want to bring in bloomberg's simin demokan. a rate cut, that doesn't make sense. s -- simin: it is no secret that turkish president erdogan hates inflation, and he has been pressuring central bankers to cut rates, and that is what they
did today. they exceeded expectations and cut by 200 basis points, bringing the benchmark rate to 16%, while the annual headline inflation is just shy of 20%. president erdogan has this unorthodox theory that high rates actually spur inflation. of course, if you were to ask us to economists around the world, they would disagree with that view. today, the lira continues hitting record lows against the dollar. it is right now the worst performer in emerging market currencies so far this year, depreciating some 21% against the dollar, and on track for its ninth year of losses. economists we have been speaking to say the lira could we can further -- could weaken further as we are expect and more rate comes over the next few months. of course, president erdogan is
facing political pressure as well. his popularity and opinion polls is falling, and this may be to do with his handling of the economy. we have high inflation and high-end employment. and of course, the -- high unemployment. and of course, the opposition parties are proving a threat. guy: thank you for the update. simin demokan joining us from istanbul. it does make you wonder how much more of this the population will take. up next, we will take a look at barclays' results. we will deal with the market close. unilever's stock on the move as well. lots coming up. this is bloomberg. ♪ ♪
prices, we will see the final numbers, but this is where we are as we come into half past. not down by much. it is kind of a sort of story of maybe .5% in london. the dax is down by one third. the ftse in may be milan is down, not a lot of downside movement. it is really about the earnings. i appreciate that there is a macro overlay and rates are going higher. that is something you have to pay attention to, the earnings seems to be the narrative. stocks on the session looks like this, reasonably tight range. we saw yesterday, a similar story. a little bit of a climb, and then just sideways trading coming up almost unchanged on the session through the day. just sub 470. still very near record highs in europe.
it is largely controlled by the earnings narrative, i think. we are seeing the car sector doing relatively well, financial services doing well, the luxury sector is coming back. basic resources, anglo, you have seen some of the u.s. miners coming under a little pressure. the energy sector is off a little bit as well. within that mix, i think it is worth focusing more on the single stocks rather than the sector narratives. let's talk about that. unilever up by 1.2%. walking is through the numbers this morning, the standout story amongst the numbers was what they are doing on pricing. they are pushing the input costs straight out the front door to consumers. they are raising prices by around 4%. that will continue for at least another year. they are making the price, able to pass that on.
this is a company that you want to pay attention to in terms of what it's doing because it will have a bigger impact, and it will continue to be able to do this. that's the message out of the company. it is an interesting narrative. you look at what is happening with the banks, you have barclays tracking down by around .6%, but generally, actually, what you saw today was a vindication of daily strategy. he has had a firm focus on the investment bank. that investment bank continues to deliver. alix: it does, somehow not good enough. there are still some analysts. i spoke -- he spoke to bloomberg after those results. >> the investment bank had a solid quarter. the investment banking fees on the primary side, equity capital markets, we had the highest quarter in the history barclays will stop in the markets
business they continued with strong profitability. the mix between equities and other parts of the business, overall we were very pleased. we delivered a record 7 billion pounds year to date. barclays has never been this profitable or well-capitalized and the markets business has done its part. alix: joining us, the investment bank we know was really good. some analysts are pointing to things like they did not relieve any money for credit provisions, the consumer car business was not that great. what was your overall take away? >> the investment bank was a standout. the markets are very quick to look. we've been here before. 2009 was the best year of investment banks in history. the next six years were a constant drudge downward. the market on investment
banking, while the share is down today, the nii, particularly credit card revenues were up 4%. it looks like what we are seeing is consumer spending back to pre-pandemic levels. people are paying down their credit cards faster than you would expect. the net income growth is not coming through, and that offset the cib and why i think that shares are down at the moment. the market, not a lot is going on. the overall question is all the rate wars on the banking sector, can you see the money coming through? that was the question not answered by barclays. guy: what is your perspective?
we are, according to the bank, going to see markets going higher, the market pricing in an aggressive rate cycle. if that were to be fully fulfilled what the market is pricing now, what is to come into existence in the u.k. and what impact would that have on barclays? fahed: today barclays said the 25 rate rise would be hundred 50 million pound benefit, they now think it would be a 200 70 pound benefit the put the asset rates up and not pass that. the benefits to rising rates that they talked about today has been offset by lower credit card revenue. talking about stagflation, that is the issue. a few months ago that rate rise was very positive by the banks. the question that is coming more
into focus is good and bad rate rises and the stagflation narrative has started to dominate the banks. on the surface barclays is making more from higher rates, but good reasons were going up to control inflation? alix: is that why we have not seen the release of credit provisions? do you get the feeling like barclays is prepping for the bad rate hikes? fahed: they said it explicitly. not bad rate hikes but as it stands now -- there are support mechanisms in place in the u.s. i think until those mechanisms rolloff and they see how the inflation narrative plays through they are careful of using the significant provisions they have on the u.s. and u.k. credit card. that is what is driving a portion. guy: what is the read across
into the west, into lloyd's? what can we learn today in terms of what we can expect? fahed: on the positive side we can expect the banks to try to capture more of the rate rise in their income than thought previously. that is what barclays changed in their assumption. i think what we need to see is we are now in show me the money earnings territory. lloyd's, given how strong the shares have been in last six months we need the net income. i don't know if management could give much color, they remain benign, but we will see how the economy is shaping up and growth
is slowing. that is starting to weigh on stocks that have done very well. guy: it was great to catch up, thank you for the analysis, really appreciate it. let's check where european markets have wrapped up. a mildly negative session. we see that continue through into the close, the ftse 100 is just below 7200, just breaking that today down by .3%. the mining stocks are the real drag. it is an earnings narrative, an bottom-up rather than top-down narrative. alix: we will stay with that. you have the largest car dealer chain in the u.s. that had a very strong quarter because of a surge in used car sales. up a whopping 7%. this is bloomberg. ♪
>> this is "bloomberg markets european close." the union pacific chairman and ceo coming up. 5:00 p.m. in london. this is bloomberg. ♪ alix: live from new york, i am alix steel with guy johnson in london. this is the european close. going out with a big bang as the autonation ceo retiring after 22 years at the helm. looking at some of their results. >> a big bang to go out for the ceo, stunning results. they beat the bottom-line and
topline in a big way. more than five dollars per share in adjusted earnings, and that is the sixth record profit. this chart tells the story, really incredible numbers put up by autonation. the pandemic is helping out. initially there was the demand for used cars surging, and then the chip shortage. you put that together and surging used-car demand. in 2020 you can see the autonation used car inventory, 50 6000 cars. september 2021, 5000. that translates into pricing. if we break down the new cars next to the old car sales it is a strong picture overall. you will see for new cars, while the sales are relatively flat, it is very profitable because of the price increases where the used cars' sales are surging. it is a record quarter.
i'm so excited because it is fun to read about and i follow the ceo. it is a great way to go out for sure. stunning results. guy: stocks up 7%. is this as good as it gets? mike joins us now, the ceo of autonation. let me ask you. you're going out with a bang. is this as good as it gets? mike: we had an 18% increase in revenue to 6.4 billion. when production was disrupted with this god awful, unbearable pandemic and now the chip shortage we as a company felt that we could offer our customers nearly-new pre-owned. we went to the marketplace and bought everything that we could get our hands on. with our brand and customer experience, we have driven
pre-owned sales through the roof. far outperforming the industry and our peers. a smart move and the capabilities of autonation. preowned revenue was up 53% in the quarter to give you some idea. we have taken appropriate pricing steps on new cars considering the shortages, and we've been very optimistic about autonation as a company, as automotive as a sector, and we repurchased 11% of the outstanding shares in the third quarter. if i look over the past year, we repurchased 27% of outstanding shares. you put it together and you get a 100 15% increase of earnings per share and a new all-time record. alix: you are proving guy's point. is this as good as it gets? at some point there will not be that upside for used cars when the chip shortage shakes out
which some say will happen in the back half of 2022. is this the top? mike: no, i would not say that for autonation as a company. there are two different questions if you're asking about the industry or autonation. autonation has a unique, outstanding performance because we have been a brand that spans america and we have a digital platform, and we are growing organically with the building of the autonation usa stores, and we opened up to mourn the quarter and we have 12 more we are building next year. we are organically growing our footprint. we are taking significant share in preowned. i don't see that stopping. we will continue to do it. we have the brand and the capability to acquire the vehicles, so there's nothing that is not sustainable about that. guy: customers are paying sticker, which must be a shock to them.
i wonder if long-term this will change. discounting has gone out of the window. do you think that we are moving into a paradigm the way that cars are priced and people buy them? mike: i will give you two insights. one, i have always advocated within the industry that the production push, liquidation system that is run by many manufacturers in the u.s. is ruining the industry and there's a better way to do it. there was a lot of change after the bankruptcies in 2008, 2009, a more enlightened approach will stop with the god-awful pandemic i think that there are more lessons learned. not overproducing is not only good for the manufacturers, suppliers, retailers, but good for the customers because you are protecting the value of the vehicles on the roads of
america, which totaled 275 million. the consumers in america are delighted with the value of their vehicle and more looking at the difference between what their vehicle is worth and what they are buying. that is why when you talk about inflation and pricing, that is not how the consumer is looking at it. i think that there are deeply-learned lessons. when production is able to resume more close to trend, the other thing we are doing is selling vehicles on an incoming basis. they come in, and they go out. i think that the huge inventories of the past are in the past. alix: that feels counterintuitive to the narrative that we hear, that the just in time inventory world is out and we will see broader inventory build. mike: those can both be true. i think on the production side
just in time inventory arrived when a plant could be shut down because there is a hick up somewhere in southeast asia, i think that that is definitely being rethought. as far as the consumer, though -- listen, it is a bit extreme at the moment so the truth is somewhere in between production push and what we have at the moment. there is a better way forward. guy: do you think the higher rates will change consumer behavior? do you think that they are having to pay higher rates on their credit card, their car, and everything else? you think the higher gasoline prices will change behavior -- do you think higher gasoline prices will change behavior? mike: two things. i don't think that we are anywhere near high interest rates. i have been in business for 50 years. maybe higher is a correct word, but not high interest rates. rates are incredibly low.
i have been in this business when rates were 18%, 19%, 20%. i've seen it all. they may be higher, but if you put it in historical terms it is extremely attractive, particularly for product that needs to be financed, like automotive. as far as gasoline prices compared to a decade ago, the fuel economy of vehicles in the united states, and particularly suvs and trucks, has been dramatically improved. so, the cost to drive one mile and consume gasoline has gone down tremendously. i would say, look, no one is happier, no one in america is happy about high guy selling prices will not the attitude in america is the lord bequeath gasoline to america. that is the mindset of the consumer. no one is happy about it. where you change consumer behavior is above $5 a gallon.
alix: before we let you go, this is your last earnings call, last earnings interview. where are you going on vacation first? mike: [laughter] i'm going to stay here in the good old america. i have millions of miles around the world, i love the world, but i love america the most. i am in miami and the season is about to start. i will enjoy it and then ease into some travel. alix: we appreciate your travel. it has been fun to talk to you about the industry, and we look forward to chatting with your successor. angst very much. stay with the supply chain -- thanks very much. stay with the supply chain conversation. caroline hyde and romaine bostick will be from the port of long beach. don't miss that.
alix: live from new york, i am alix steel, guy johnson in london. in the next 24 hours president biden is participating in a town hall in baltimore trying to sell his economics plan. in the last hour it was pointed out that he does not need to sell it to constituents, he needs to sell it to congress, his own party, first. guy: joe manchin and kyrsten sinema seem to be holding this whole thing up. it seems that managing those two and of the relationship with the party is the major challenge. maybe he should stay in d.c. alix: we have intel later on looking for the third quarter earnings. the global chip shortage. that will be fun.
that readthrough will be very informative. guy: you want to pay attention to these calls, especially those companies with exposure in the supply chains. emmanuel macron saying that the energy price spike will be prolonged. they meet again tomorrow. whether or not they will be able to crash anything out in brussels in terms of the common policy to energy remains to be seen and we get manufacturing pmi data across europe that will be fascinating. what impact the supply chain shortage is having there. we talked about the china slowdown. today with turkey, intuitively the rate cut, tomorrow we are expecting a rate hike out of russia. alix: talk about the central bank divergence. i feel like that is going to pick up, particularly it will go more than a way of the bank of turkey and ease conditions because of what is happening in the property sector. in the u.s. it is very focused
on the earnings sector. the consumer discretionary is leading the way, under armour is doing well. on the downside you have mac moran after missing production targets. pushing higher inflation expectations and then the highest level on the five-year absolute yield since february of last year. guy: yet the pay attention to the rate story and of the earnings story. you have to raise rates to make progress at the end -- to make progress in the market. alix: "balance of power" with david westin. guy is going tole. this is bloomberg. ♪
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increase that will undermine the competitiveness of u.s. business. >> to the world of business. >> will come back in a more material way. >> this is "balance of power" with david westin. ♪ david: from our headquarters in new york to our audiences worldwide, welcome to "balance of power." president biden is trying to keep his build back better program. it is great to have you back with us. i mentioned about negotiating. we are hearing noise that he might change the tax proposal on build back better. >> it was big news last month when the house ways and means committee rolled out an agreement to hike the corporate tax rate t