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tv   Bloomberg Markets  Bloomberg  October 29, 2021 1:30pm-2:01pm EDT

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the holy see insisted the meeting was closed to american reporters, traveling with resident. the two met for 75 minutes, talking about climate change, poverty, and the coronavirus pandemic. mr. biden is the second u.s. catholic president and he previously met francis in 2016. he was vice president. as the world reopens, many people are asking, is it safe to travel. what is open in cities around the world. according to the covid-19 travel tracker, madrid, barcelona, paris, and vienna, are the most accessible destinations overall. the least accessible are moscow, sydney, jakarta, and bangkok, is terms of public health measures. toronto has been added to our most open city, and ho chi minh's city has been removed from open to moderately open. francis finance minister is reaching a collective action with supply chain disruption. we spoke to bloomberg with the g
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20 summit in rome. >> we have 20 countries who have addressed the issue and find a solution at the bottleneck. >> he says that europe should reduce its reliance on global supplies so it won't pay at prices in the future. >> negotiations in rome hit a snag. stuck on energy and climate issues, some countries think china is refusing to beef up commitments to limit temperature increases and digging in over coal. the nations are set to limit funding of coal-fired power plants over steam in the meeting. , but officials say that the struggle is to agree on a date, by which they will be supporting them at home. global news 24 hours a day on air and on global quicktake, powered by more than 2700 journalists, and analyst area and 120 countries.
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this is bloomberg. >> i am amanda lange. welcome to bloomberg market. and i matt miller. >> we welcome bloomberg and bnn bloomberg audiences every day at this hour. we are following a time of top stories for you from around the world. there is so much going on here. let me just walk you through some of the moves. first, we have another all-time high off the s&p 500. you are looking at right now. 4601, marching back to a record after drops in early trading. amazon is disappointing.
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exxon and chevron are buying billion and share buyback with cash flow surges. we will discuss the results and outlooks as we push open >> -- opec. the j.p. morgan chase head of commodities and strategy, plus we will speak with michael, the ceo of a company after that company beat earning estimates and boosted its forecast as well. amanda? >> on the markets, we are powering off with a weakness. we are in positive territory. the nasdaq is coming back to life. in toronto, a little bit weaker on the day, but the internals are getting interesting. as far as we know, tech is trading off today. facebook and meta. the company forming on his facebook is actually trading up. i can't get past google. one that jumped off the screen a starbucks. this is evidence of how
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investors will react if you disappoint on the cost and outlook. starbucks is sharply lower. the yield remains a big story. we are looking at inversion of the fed. there was it about growth. as you noticed, we are watching apple and amazon. two heavyweights in the market, losing more than $100 billion in combined market value after they started notice that it will be eight light holiday season for investors. it was it just -- disappointing earnings. margin expansion was the name of the game, so price to perfection is maybe just that investors are becoming used to the very best from these two companies. this is a bit of a reality check. >> i've seen price to perfection from a lot of people over the past couple days. x i will say over the last 20 some years, i have been watching amazon turn on and off the prophets tap.
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it is not able to do the at will. the interesting thing here is that apple missed out on sales due to supply issues. that is what we have been single quarter. that is something the fed and central banks can do nothing about. we are going to leave that in the transitory camp. the answer tory -- amazon camp had a lot to do with labor cause. the fed and central banks for the most part have to watch, and they can on that. it is even more important in terms of what is driving inflation for amazon than for apple. >> all that comes at a time when we are watching the other side of the ledger. energy companies spoke to yesterday's news. we heard of exxon mobil and chevron. cash will surge, of course, because record oil prices have a three or high. we spoke with the ceo, who says that despite what other people are talking about, we are not feeling the.
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>> we are not seeing higher costs. our sectors are still operating below pre-covid capacity. there are some things that tied to the general economy, and energy pacific infrastructure -- there is a lot of cost that we are not seeing at this point time. even if we are seeing modest decreases, they are still well below the covid. we are well under control. costs under control, and they may stay high. let's bring in a j.p. morgan chase global head of strategy, and it does feel like a bit of a perfect storm. in a good way. for oil and gas companies. they focus on their balance sheet, and they got their costs in line, they really got used to the price of oil. $40 below where we are. the seems like a lot of gravy. helen is a go on. >> it is really good. it is recovering. the world's reopening right now, and we believe it involves 1%
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below it was in october 2019 and 2022, we believe it will be about 200 or 300, which is into thousand 19, so a very good look on the demands. it should be glowing -- growing with potential. consumers have a lot of money to spend, at the corporate field has a lot to spend on capital, so a very strong side. on the supply side, even if it rose, we do believe that it will have the rest of supplies under performing. the report lists the top 50 companies that are reported so far, and they are targeting about 1% growth. they are evolving for 2022. what that means is that opec is still very firmly in the driving seat. we pretty much can decide what particular price target or reaction function we will call. that is what we can take.
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>> how much does the g20 and the top 26 matter to you, to industry, are expecting them to make any significant changes that will change your near to medium turnout it has the potential to change things for sure. it is a little bit different. we have a particular commitment, from policymakers, and the has a particular commitment, a voluntary commitment from corporations, so the way we do it is actually that we promote that -- approach that significantly. the commitment from the other manufacturer, globally, that tells us exactly what they want to build over in the next five to 10 years. we break out that, and it is exactly what is going to happen, so just to give some numbers, as of september, all the cars in
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the world, globally, they have some type of electric. whether it is hybrid or plug-in vehicles, 20%, but at the same time, if you look at the effect, their 1.2 billion vehicles in the world. 1.2 billion in the world. out of that, only 2% of the cars are electric. by 2000 -- 2030, .6%. at the same time, 76%, over three fourths of cars in the world on the road, will still be gasoline or. we look at the number, the argument is that it will still be that way for decades. >> we know that commodities kicking out of sync with the supply and demand. we get booms and busts. it is not a perfectly calibrated market. are we getting some of the biggest players in the world out
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of sync on their long-term plan? they called it too soon. maybe we have gone up to triple digits. there are simply not production, or is it just right because the transition of the day is upon us? >> it is an individual decision. the company has particular targets, and those targets have been established by the investors. they say it is ok. the target you take down is the debt to fix the balance sheet to increase the dividend yield. you need to put something aside energy transitioning, and so on. if you look at the breakdown, it was about $245. right now, the investors have to be says i. i think there is a different way to look at that, but overall, when we look at inflation, or
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whatever is going on. we are seeing that capacity on the supply side is tied versus what we see over the next 10 years. that is for sure. >> i noticed that crude is done great. your date, lot as well as natural gas, but neither has done as well as cold. it is been an absolutely on fire. no pun was intended. alex will be proud of me. what do you make of that. the energy sources more than triple in price this year. >> absolutely, you are correct. there is more energy space. coal is one of those. i think there was a lot of unintended consequences of a particular decision, and unfortunately, this year, the shortages and energy. clearly, we are experiencing those prices. look what is happening with
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semiconductors. in the case of coal, that is the most obvious one. the wind and blowing china, and the hydropower was at rest of ours where about 30% below normal, so the rains and winston below, so china was short energy, and that is exactly what happened. they started to buy more coal. that is what happened, and the ties are shipping from china elsewhere. this was the next one. it is exactly the same issue. there's something to be said about wind, and we see that there is a very low wind. but at the same time, western europe was exactly that way. the drought in brazil, the drought in china, it is a wild wide phenomenon -- worldwide phenomenon, and it continues to consume energy in the world is for energy. prickett storm -- the perfect
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storm so to speak. j.p. morgan chase global head of commodities research, and strategy. coming up, light sciences beat estimate read we will speak exclusively to the ceo on why it is an excited time to be in the space, this is bloomberg.
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>> this bloomberg markets. i am matt miller with amanda lang. it rose 11% after earnings beat estimates and the company raised its forecast.
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joining us for an exclusive interview is the ceo. michael, tell us about the drivers of your quarterly earnings in your rates forecast. what is behind it. >> thanks for the opportunity. we have it's from a dismount in her business, we have another quarter of double-digit organic growth, and we evened out our merchants more than a hundred basis points and it continues to generate significant cash flow. all that momentum has enabled us to employ over four billion dollars of cash this year towards bringing in new capabilities via m&a, so it is an exciting time. >> as i understand it, the role that you play in life sciences is to offer a lot of input. how are you affected by the pandemic interrupting supply chains, and even labor shortages. >> it has been a challenging environment to say the least. at least is beginning of the
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pandemic. at first, some of our markets, things like academia were hit the same time, things started to ramp as research for covid vaccine picked up in a significant way. we started to see pretty early on a shortage of key materials, and firstly, some of the protective equipment that scientists and technicians would need to work in the clean room and they became quite sure. it is moved through various categories. since we began the pandemic, clearly, labor has been difficult to come by. particularly with the states throughout. most of the pandemic has been a tremendous job finding solutions and workarounds beginning with leverage. our global capabilities and footprint continue to be able to service the unprecedented rise in demand for customers. >> you have also a pretty incredible feat in terms of
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walking breakthroughs. there was a key role in operation warp speed, and a superfast development of the covid vaccine. do you see any other exciting breakthroughs they can share? >> it has really been an exciting time to be part of the applied sciences space. i cannot think of them work same time. certainly the work we do has never mattered more. the work we did around covid was very gratifying. we were supporting all of the modalities, weatherby mrna, which we have all come to learn a lot about over the last 18 months, or some of the other modalities. those same technologies are also being used across a number of therapeutic areas to treat a disease that we have never been able to treat before. there was some earlier announcement here in recent months of things like alzheimer's for example that we now have an approved therapy for. that is something we've never
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had before. it is certainly been on display throughout the pandemic, and there is a pre--- pretty attractive funding, giving the opportunities. it has really allowed us to develop a lot of different technologies. they certainly create a bright future for all of us in the applied sciences space. >> it looks as though you have taken advantage retiring debt. how does that work for you now with the flexibility of what you might want to do, whether that is organic growth, or that is acquisition? >> that has been an important part of our development over the last couple of years. be able to reposition or balance sheet to give us the flexibility to only invest but to allow us to return to m&a. we have deployed over $4 billion. we have had acquisitions we have closed in the second quarter, and in additional acquisitions that we should close here any day now.
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it allows us to bring a new capabilities and create more value for customers. we now have our balance sheet in a position where an ongoing basis, we should be able to deploy more capital towards growing our business, which is really exciting to be a part of. >> it is great happy with us. we appreciate it. >> the ceo, michael. coming up on the show, the fda appears to be approving pfizer vaccine for children age five to 11. we will discuss that news, coming up next.
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>> this is bloomberg markets, and i am amanda lang alongside matt miller. the fda is expected to authorize the covid vaccine for children aged five to 11 today. this is a long awaited pandemic milestone that will open a new
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space of the immunization campaign. our white house correspondent is with us. what is the sense of how quickly we go from this approval to shots in arms? >> less than the week if things go as they hope they will go. this is sort of step 204. the fda is expected to momentarily here from them. that comes as the cdc advisory committee is scheduled for monday and tuesday, and the cdc gives the final ruling. that will speed up the process. wednesday, you will have the same process, and it seems like wednesday is the day schatzker going to arms. the key thing for today, as it is only step two, it can actually ship. it is going to be shipping differently, and now they will get the same shot. you will get the first and second booster, and anyone 12 and up is getting that one. it will be 10 micrograms, so one
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third the dose. it will pump the brakes a little bit more. it could take some time to get the key nutrition off, but it can start the shipment if it comes today, and if they hesitate, it is a matter of days right now. the next days group is under five. that will be a few months away. >> it is still a hotly debated topic. there are a lot of people who don't necessarily grant scientific benefits of vaccines in america. >> yes. that is true. what we see is that vaccines have hesitancy which is a polite term for. get stronger as you go. you can imagine if someone was on the fence of getting the shot for themselves and the dull, they will be even more worried about their kids, and the younger the kids, the more worried they get. as polls indicate, 20 million kids in the united states, but how many will get a shot in the
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next few months? there are a lot of parents who are bringing up things already, industrially trying to get them. there is a group in the middle who will wait, and it will take some time. we don't want to overestimate how many of these people will get the shot. it will be a big difference maker to drive the overall vaccination level higher. >> thank you for joining us. >> josh wingrove reporting on the vaccine for kids and the progress being made in the united states of america. hopefully, in canada, we can make some progress as well. we have had issues there. for amanda lang and matt miller, this is bloomberg.
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>> i'm mark crompton. a president biden is admitting to french president that the
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united states made missteps in handling a new defense with australia. the two met today. >> what we did was clumsy. it was not done with a lot of grace. i was under the impression that certain things happened that patent. france -- happened that hadn't. >> the french have said they were not notified about the submarine deal have stopped us ahead of time and what amounted the country said was a step in the back -- in the back. --stab in the back. according to the police union, 10,000 of the city's 30 5000 uniformed cops have not gotten the shot. those who refuse


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