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tv   Bloomberg Markets Americas  Bloomberg  November 8, 2021 10:00am-11:00am EST

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guy johnson. ♪ guy: monday the eighth. 3:00 p.m. in london, 10:00 a.m. in new york. clocks going back in the united states. 30 minutes into the trading day in the united states. i'm guy johnson in london. alix steel in d.c. today. i'm not sure which is the bigger piece of news, eight days higher for the stock market or alix steel taking public transport. alix: i got on a plane. i did not miss it, i have to say. i'm in d.c. for a new voices, where we train women to be on television, with an event with this smithsonian where we will talk about the history of women in politics later on tonight.
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but i did take a plane. you could be here, but you are not. in the markets, we are watching a record high on the s&p again. eight straight days. we haven't seen that since 2017. rich clarida says the interest rate lift off test may be met by the end of 2022, but we are a ways away from raising interest rates. google, though, to trillion dollars market cap. you see yields there moving a little bit higher, up by about three basis points. we are going to be talking about natural gas as well. european natural gas moving higher. russia has not been sending gas as of yesterday, so we are not seeing the kind of flows we thought we may see on november 8. the house on friday passing the biggest u.s. infrastructure package in decades, marking a victory for president bynum and unleashing $550 billion of fresh spending on roads, bridges, public transit, and other
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projects. here with more is in reordering -- is annmarie hordern. annmarie: the president saying infrastructure week finally, met with some laughs from a very tired press corps, but that is something that this administration is able to go to the american people and say we delivered something the former administration could not, and that is why it is a long running joke in washington. but it wasn't without its bickering within the democratic party. friday evening it really came down to late-night negotiations to make sure they can bridge this gap between moderates and progressives to get this over the line. they came to agreement that they will go along with this as of now, which is the moderates saying that as of november 15, congress is out of session right now, they will pick up that build back better agenda. this is the larger tax and social spending agreement, and
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that is how the president was able to get this over the line. he needed republican votes, though, so you can already see that the next piece of his legislation is going to be met with a lot of potential in fighting between the party, but for now, he is stumping across the country on this massive win of hardin for structure. guy: potential infighting within the party. i think we've heard that before as well. inc. you very much, bloomberg's annmarie hordern, joining us from the white house. there's a lot of fed speak this week. fed reserve vice chair richard clarida saying within the last hour that the necessary conditions to raise rates will probably be in place at the end of 2022. >> if the outlooks for inflation and unemployment turn out to be the actual outcomes, i do believe these three conditions for raising the target range for the funds rate will have been met by year-end 2022. guy: olivia rockman, u.s.
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economy reporter, joining us now. what does the fed need to clarify in terms of the messages is delivering right now? last week the data was sensational. the ism since -- the ism services number was sensational. we are looking for a pickup and participation. how does the fed need to finesse the message? olivia: there's still a lot of questions about what is going on with supply chains, and that is going to be a big factor in terms of whether the fed can raise rates next year, which they set up to do given the taper schedule, so now that we are out of the blackout period for the fed, it will be really interesting to track any commentary about supply chains and inflation, and of course, we get that cpa data -- that cpi data this wednesday, which is expected to show a 30 year record in prices, so for the fed to really keep inflation expectations well anchored, they are going to need to assuage
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investors and consumers that these prices will likely come down in the coming months. if not, we might see this wage price spiral or a change in inflation expectations, which could get the fed into trouble with policymaking. guy: it is a needle that needs to be threaded. and you very much, indeed, olivia rockman, joining us on the fed, talking about what is going to be a busy week. i thing we will hear from jay powell a little later on. alix made it onto a plane. i made it as far as the airport a little earlier on, but didn't actually make it onto a plane. the reason i was at heathrow this morning, the world's most lucrative airline routes opening today. i caught up with the ceo of iag a little earlier on to talk about that revival. >> it is a crucial moment
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because, as you know, we needed to have that capacity in the air. so i think we are going to see that the future in some ways, i think it is an important day for us. guy: laura wright is at heathrow and joins us now. talk us through the significance of what is happening today. laura: extremely sick of again. the u.s. opening its borders to fully vaccinated international travelers. key players on the ground will fly 26 likes to the united states. virgin atlantic will fly 11. the transatlantic route is the most lucrative in the world. before the pandemic, it generated over $1 billion in annual revenue for british airways.
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earlier, the aviation enthusiasts saw an unprecedented will take off of the ba and virgin flight too much that occasion, but admittedly capacity is still going to be lower than prepend him at levels . jumbo jets have been decommissioned for lighter, more energy efficient aircraft, and the focus is on the type of traveler. to begin with, it will be visiting friends and family. the hope is that it will turn into leisure travel and business travel, which they believe will reach prepend them as levels by 23. that is something guy was speaking about with the virgin ceo earlier today, but it is all about the reopening, what this means for heathrow. it lost its position as europe's
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biggest international hub. they want to regain that crown. for now, pricing is still competitive. pent-up demand may lead to higher prices, but overall, here on the ground at heathrow, it is a feeling of jubilation and also relief. alix: thanks very much, bloomberg's laura wright joining us there. that between takeoff, it looked pretty good. guy: never happened before. both ba and virgin went back through the records, never happened before. normally heathrow has two runways, one takeoff, when landing. they got them both into the air at the same time. exactly the same aircraft, as well. they both flew an a350 airbus, roughly the same weight so they could take off executive the same time. i'm not sure which one will arrive first, but maybe we will get a report on that a little bit later. alix: kudos to you for pointing that out. i was like, yeah ok, planes
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taking off. by your ticket, guy. followers of elon musk voted to sell 10% of a stake in tesla and a -- in tesla in a poll over the weekend. tesla shares taking a nosedive, filing the most in about eight months. your take on tesla in the last few hours? >> elon is talking about doing this because the democrats are talking about taxing billionaires on their unrealized gains. he's got a lot of stock in this company, 17%, that he hasn't sold. he has actually kept cash against selling those shares. so if he is coming to get taxed,
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he is saying i sold these, so get off my back. 10% of his stake would only be 1.7% of the company, which isn't all that much, but i do think maybe shareholders look at this as anything that shows a declining stake in may be less of a committed long-term, but it is not like it is going to increase the vote all that much. so it shouldn't put any downward pressure that way. i think it is more sign that shareholders just get edgy if there's any inkling that elon might be less involved. guy: it does certainly seem to be that way come on a day where jeffrey's upgraded the stock. coming up, we are going to take you back to the stock market. i think we are eight days higher
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right now. the s&p hitting 64 record highs so far this year. we will talk about that next. this is bloomberg. ♪
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guy: the s&p up eight straight days if we close higher today. 64 record closes thus far in 2021. kate moore, blackrock global allocation head of thematic strategy, joins us now.
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it is a monday morning. it is going really well. let's talk about this market. the s&p goes from strength to strength. it has been driven by tech recently. talk about the risk and reward here. kate: i want to start with earnings season because that is the first thing on my mind. we went into earnings season a little stressed out about labor shortages, supply chain disruptions, and overall pricing , and we have come out mostly on the others with utter margins and better earnings -- with better margins and better earnings than consensus expected. but the big thing on everyone's mind right now is really guidance. this is what i think most investors are focusing on. you are seeing this dispersion in the equity market.
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. the dispersion is coming from which companies are increasing their guidance and have a more optimistic outlook and those that are cutting. so i think we will see more of that. the market grows higher, but at the same time, there's going to be greater differentiation between the companies that have better prospects for next year and those that have just kind of topped out in terms of their earnings growth. alix: where does that leave some thing like big tech? when you have google at $2 trillion now in market cap, what do you do with the big tech fang names? kate: it is a good question. i think we are going to see a little bit more of the rotation that we experienced on friday and in some of the last trading days last week in terms of the restart and reopening economic winners on the consumer side or on the corporate side returning to office winners. at the same time, that doesn't spell the end i think for big tech and for some of the most important themes that are going to drive the market higher in
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2022, which are around digitization and cloud adoption and overall increasing technology across all these industries. as much as i am constructive on the overall economy unlike some of these restart and reopening plays into year-end, i'm not fading any of my tech positions. in fact, we are continuing to lead into some of these secular winners. guy: do i stay fully invested at this point? kate: 100%, i would not take money off the table. i think there's room for some of these micro rotations to take good stock of what companies were telling us over the last couple of weeks and make sure you are positioned in those companies, sectors, and themes that can produce enduring growth in the next stage of the economic cycle, but don't take money off the table. stocks are still the most interesting investment, and perhaps the one that will offer
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the best returns not just for the fourth quarter, but for 2022. so stay invested. resist the temptation to take a bunch of profit and hole up for the next six weeks. alix: how do you take into account covid cases rising in europe, for example? china keeps having a zero-tolerance policy. i can imagine that is only going to make the supply-chain problem even come here. how do you look at those kind of headlines right now? i feel like a year ago, the s&p would have lived or died by that. kate: that is a great point. i'm having a really hard time predict in the future passive covid, but you made some interesting points in terms of where we see an increase in cases and china's zero-tolerance policy. i do think the pfizer news combined with the merck news a little earlier in terms of medications that infected people can get that will allow them to at least reduce the incidence of
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hospitalization and take off of the table does encourage people to return back to more normal activity. despite the fact that we are seeing this uptick, i think there is a broad-based belief that we can return to more normal activity in 2022. what this means for supply chains, if demand remains really strong, is left to be seen. i will say i felt pretty encouraged by how well companies managed supply-chain issues in the third quarter. companies did a pretty good job here. i think in the near term we will see certain industries, but what i am going to be watching is what are companies spending in order to prevent this type of issue from happening again in the future, and that expense may lead to a little margin erosion, but i don't think we are calling the end at this point. it is something interesting to watch, but perhaps not as scary
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as it was pre-earnings season. guy: what is the trade out of cop-26? clearly a huge amount of money heading in the direction of sustainability. how do i figured out how to invest, or do i say there's just going to be so much liquidity coming into this space, everything is going to go up? as an addendum to that question, how do i play the president infrastructure plan along the same -- the president's infrastructure plan along the same lines? kate: i love the question is on these sustainability and esg geared companies that have already run a phenomenal amount and are trading at what some are suggesting are a premium value. i think we are in the first stages of a multiyear, perhaps multi-decade investment in renewable and alternative energy and carbon neutrality. we hear this from governments playing out at some companies, but i think there's a lot more upside to come.
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one of the things i am early focusing on is looking at the full supply chain, so not just looking at an automaker like tesla or something that has huge amount of ev market share, but also looking at all of the suppliers from the batteries to the raw materials to the chips that go into enabling that technology. so i think there is an opportunity to diversify around sustainability. i do not think this investment theme is over at this point. we will get some wobbles based on premium valuations, but every policy maker around the world has given us the same message, and i think we need to hear it and put that money to work. alix: always good to see you. kate moore of blackrock, nice to have you join us. nextdoor is going public in a 3.5 billion dollar deal. the ceo will be with us next. this is bloomberg. ♪
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guy: this back -- the spac story apparently still going. nextdoor is a social media company for local communities. nicer social media, let's put it that way. it is going public via spac. joining us now is the company's ceo sarah frier at the nyse come along with ed hammond. ed: sarah, great to be with you. i normally wouldn't want to start on the shares when we are talking about this, but this is one of the biggest pops i've ever seen on one of these, about 40%. why is this happening? why are we seeing such a reaction? sarah: because they are very excited about our business.
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nextdoor is about neighborhoods. we believe we have a global opportunity on our hands. of course, we are doing it for the right reasons. we are all about purpose and about making it a kinder world, but we also know we have a great business on our hands. a lot of data that allows us to do an app sponsored model, and we are excited about where the business is going from here. ed: talk to us about what is going to be the first order of business. sarah: obviously it was a fundraising opportunity because we wanted to bolster the balance sheets. where we are going with that investment number one is to continue to build out for growth and engagement. more neighbors coming to the platform, and as they are coming to the platform, how do we engage them more? when you have a lot of data come you want to make sure investors are getting the best possible experience. finally, international. today we are in 11 countries, 280,000 neighborhoods, but we
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know we can go global. ed: one thing happening is the social yes base has moved towards social commerce. we broke this paypal/pinterest story a few weeks ago. i wonder how a company like nextdoor plays into that, and whether it sees itself as an acquirer or a potential target for someone else. sarah: we have a really high intended audience. they come to get some thing done, usually locally, and they stick around. that makes for a great audience when you start thinking about things like social commerce. for us today it is a lot more about things like services, so people come because they want to find a local plumber, may be a contractor, may be a babysitter, and they tend to convert very fast. we look for advertisers at the top of the funnel, brands, and bottom of the final, direct response. i came from a payment platform, and i think nextdoor is a really valuable device for all of us.
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guy: as you say, you came from square. you were the cfo there. the pop in the stock today absolutely breathtaking. i am wondering how much of a role you are playing in that. clearly a huge one, but your history is well known to wall street. they know and like you, it seems. how big an impact you think that is having, and is that the lesson learned here, that if you've got that kind of management team in place, spacs still work? sarah:sarah: in the end, you have to decide as a management team do you need the proceeds, and if you raise them, can you invest them in an roi positive way? the way we chose to go public, we want to do optimize from what is out there in the market's. we found a great partner in social ventures. we have worked together at square for over seven years. i know they bring a lot of good
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long-term strategy, now it is about execution. i think what the market loves is the business we have built to date, but they also understand the opportunity ahead of us, and that is what got me excited. of course, in the end, we don't look at stocks. stocks are just one day action. this is all about the long run. in the end, the market will trade the fundamentals, and we need to keep making sure we are building a great business to keep building those fundamentals. guy: let's talk about how you continue to build that business. you are looking internationally. you are in 11 markets internationally right now. a local company going global. talk to me about where the priorities are, how that is going to work, which markets you are going to target. give me a bit of detail on what that plan looks like. sarah: today we are in 11 countries. in 20 to anyone, we went strongly after the u.s., u.k., canada, australia, and the netherlands.
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so we doubled down in those markets and saw that we could move the needle. for example, in canada, we know that when we go after a market hard, we can make it grow. from here it is really about going to markets for community matters, where we know we can build a really strong ad business over time, and of course, where there are a lot of small businesses and where we see that neighborhood thrive. so there's a lot of countries we are looking out to, and watch the space as we go into 2022. ed: we have this debate in social media at the moment as to the extent to what should be on the platform. i wonder how you look at that in terms of, obviously you want to be kind, and also not playing into much to whether it is a sort of cancel culture picture. how do you make sure that is appropriate, but not overly sanitized? sarah: it is an incredibly
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important thing to get right. it was founded on trust, surreal people, no avatars, no handles. from there, we have been willing to trade engagements for building things into our platform like kindness reminder. it actually slows you down to say it looks like this content will get moderated in a future state. that is not what other platforms may do, but we know over the long run, this is what will help build a bigger, kinder platform for all. ed: you have spent a lot of your career in the technology speak. we are seeing a push by regulators in the u.s., but also in europe, to more closely manage these companies and stop some of their market power. i wonder what is your view on that, and using this is an appropriate course for regulators to take? sarah: we always welcome regulation, though as a smaller player in the space, we want to make sure the regulators come speak to us as well because often, banks often complained
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about regular, but it often hindered startups like a square coming into the business, so i want to make sure that doesn't happen with nextdoor. be on that, i think a lot of it is about how we keep our platform open. it becomes excellent ways for other businesses to build on top . we have aggregated local, aggregated the neighborhood. now let's welcome other businesses that can bring to those neighbors what they need to get their work done, the job done, and make their neighborhoods better places to live. guy: sarah, i hear what you're saying about the market, but it is a pretty positive day at the office today judging by the market reaction. thank you very much for your time today. sarah, nextdoor ceo, joining us from the nyse, and of course, a huge thanks to bloomberg's at hammond. greatly -- bloomberg's ed hammond. alix: let's talk about oil because i am here in d.c. oil prices on the rise.
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increasing pressure on washington to keep prices contained. jennifer granholm, u.s. energy secretary, spoke with bloomberg about that dilemma last week. >> on average, grass prices -- gas prices will be about $3.05 at the beginning of december. they will do an adjustment to that forecast in the next week or so, so we will see if that holds, but clearly the biden administration is very concerned about the price at the pump, and certainly the price in people's wallets for natural gas as well for this winter, including propane and heating oil, particularly in the northeast. alix: let's get more reaction with dan juergen, ihs markit vice-chairman. he has been in the oil industry for many years and has great insight into that interworking relationship. it is good to see one set. -- cu onset. -- see you onset. dan: thank you.
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alix: so what can president do? -- president biden do? dan: obviously he knows that gas prices are not good for him pump and's -- for incumbents, but the one thing that has been left out of the discussion, he's president of the world's largest oil producer, and there seems to be no dialogue between the administration and the oil industry, and the rest of the world is saying this is really strange. the u.s. is not importing sick to pursuit of its oil. the u.s. is basically independent. alix: right. why? dan: i think there is a basic antagonism and lacked of interest to the industry, although it has in .5 million people working in it. call it the glenn youngkin factor. they are obviously worried about 20.82, and people do vote their wallets. guy: is the president looking in the wrong direction? he's talking about opec+, which
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does include russia, but i am wondering whether what we are seeing in energy markets right now is a broader reaction to russia's apparent decision to keep its cards close to its chest when it comes to supplying europe with gas. the implication of that is that it bleeds into the rest of the energy space and generally, energy has gone higher. dan: i think this really started in china. its economy was going into overdrive with the pandemic, coming out of the pandemic. colby came in short supply. lng became short supply. so guess going to europe ended up going to china. and then russia is sitting there, but when we do our numbers, we don't see that russia has a great deal of more gas to put in because they have been cutting -- have been putting gas in to their storage because europe's inventories are low, so largely, russia could do more, but this really has to do with the fact that this is an energy crisis that did not begin with oil, but begin with cold
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and lng -- with coal and lng. alix: i keep hearing how we are exporting so much lng, some of those terminals are running full tilt. do we get a gas crisis here? dan: i don't think we get a gas crisis because our prices are up because these inventories have to be filled. the other thing is the u.s. has lots of natural gas. what we have a shortage of his pipelines to move the gas. alix: which brings us back to d.c. dan: back to politics. alix: do you think politicians are getting the right message? dan: i think the opposition to new pipelines is pretty strong, and i don't see that changing, but i think that also, as production starts to increase in the permian in texas and new mexico, there's associated gas which will also come out, so i think in the u.s., this is more of a winter problem. ozone -- oil prices are responding to the general crisis that is out there, and at the same time, fundamentals start to
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get tighter over the next couple of years because of lack of investment. some opec countries can't meet their quotas because they have been spending money on maintenance and their systems are not working as well as they can. guy: last week was about cop in glasgow and rising energy prices around the world. is this something we are going to have to get used to, that energy volatility is going to become part and parcel of the energy transition as we move away from fossil fuels? dan: that is a very important question. is this a one-off we are seeing, or are we going to see a series of shocks because of what we might call preemptive underinvestment that is not synchronized with the growth of alternatives? i have some prominent europeans are starting to have recurrent crises -- starting to worry about recurrent crises like these. britain says we want to get off
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coal, and they are burning coal at a plant that was supposed to be shut down because they need it for electricity. alix: where do you think the balance of power will lie now? it has been saudi arabia with oil for so long, then it tilted to the u.s., which feels like a flash in the pan. who's going to hold the power in the energy market? dan: if we look at oil, certainly opec+ has been a balancer, but what is underestimated in the sense that we are not hearing this from washington is the grows of u.s. energy supply. that is why when we had crises like the attack on oil facilities in 2019, it did nothing to price because the u.s. is actually a bulwark of energy security. guy: when i think about what happens next, looking at the united states is going to be fascinating to see ultimately whether the government does change its tune on hydrocarbons,
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at least in the short term, but in the longer term there's clearly huge amounts of money that are going to shift away from investing in hydrocarbons to investing in sustainability. at the moment, it seems it is slightly and unguided missile, inasmuch as we are investing in everything. when do we start to figure out what is going to work and what is not going to work, and understand what the long-term energy picture is going to look like? dan: i think we are in a period of great experimentation going on right now. they committed to $130 trillion of investment and sustainability in glasgow, but is it going to be hydrogen, carbon capture? how much more is going to happen with wind and so forth? i think a lot of money is going to go in a lot of directions until we see what is really working. alix: last question, then. are you getting an echo in your ear, -- ear, too?
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this should be fun. short-term, what could that be realistically? dan: we actually think next year, u.s. oil production could go up by as much as 800,000 barrels a day. alix: so the price signal will work. dan: the price signal will work. companies are still being cautious because there's a second shale revolution, which is the relation ship with investors. but i think there is money to return to, investors will see it go up, but we are not going to see it go crazy, i think. i think that is the direction, but things take time. the critical period now is the next couple of months. if it is a cold winter, the pressures will increase. alix: guy is happy about that because he loves talking about the weather in the u.k. dan, thank you. guy: it is important to talk
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about the weather. the weather is going to have a massive impact on all of this, as dan just said. alix: it is, and i look forward to the complaining. [laughter] dan: it is what happens next month or two. there's climate, but then there's the weather, and the weather could have a very big impact, so watch out. alix: dan says three months. that's it. great to see you. thank you very much. guy: what have we got coming up next? citigroup opening a new branch in new york city. citigroup's u.s. head of consumer banking joining us to talk about the banking giant's strategy in this space. he just moved over from europe and asia to the united states. we will get a global perspective. that is next. this is bloomberg. ♪
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ritika: this is "bloomberg markets." coming up, dana peterson, commerce board chief economist. this is bloomberg.
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♪ president biden is facing pressure to decide how to address the surge in gasoline prices. officials will be looking at new energy price data tomorrow. opec+ has ignored requests from some of the world's biggest oil consumers, including the u.s., japan, and india, to increase supply to meet elevated demand. the pentagon has increased orders for specialized chips used in gps dependent systems. israel is set to allow some tourists to enter the country even if they haven't had booster shots, according to the country's health and tourism minister. testing will be required.
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each group will remain in a so-called capsule and be kept away from crowded areas. global news 24 hours a day, on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i'm ritika gupta. this is bloomberg. guy: thank you very much, indeed. citigroup is opening a new flagship branch in new york city today, and it comes on the heels of a strategy shakeup under the bank's newest ceo. joining us now to find out more about the firm's new strategy, gonzalo the chatty cat gonzalo luchetti, the u.s. -- gonzalo luchetti, the u.s. head of consumer, and we are joined by sonali basak. let me hand things over to you. sam: sonali: thank you so much -- sonali: thank you so much. this is a 7000 square-foot branch you have opened here. you have set citigroup that this is meant to be more than a place where clients come and cash their checks.
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so what does this mean for citi's broader ambitions through the u.s. to open new branches? gonzalo: thank you for coming to visit us at our headquarters. it is an exciting time for us. obviously, we are a global bank. we want to connect with our customers. it is an especially of us wanting to win. we want to win at home especially, and as we look at this branch, it is an expression of us bringing together our digital first model with the personalized service and the high-tech model we are trying to have in the u.s. market. sonali: does this mean that you will commit to a larger real estate footprint and more cities across the u.s. as you previously plan to do? gonzalo: we are still thinking through our strategy, and we look forward to share that coming up in the first quarter, but what i can say is we are very focused on doubling down in our core markets. i've seen some of this across 17
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markets in asia camorra was until recently we have seen the value of the branch is still there for high-value interactions, whatever you want to talk to somebody about your financial situation come your small business, your mortgage, you many times want to talk to a human, and we want to deliver that high touch human service, coupled with our digital capabilities. that is why we talk about it being digital first, not digital only. sonali: there has been a lot of news about your relationship with google and that having fallen apart. will citigroup look to partner with another technology giant as they think about forming this digital footprint? gonzalo: we are one of the premier full-spectrum partners. you look at our marquee partnerships. we continue to partner with both physical as well as digital companies. we continue to talk to google across our institution, both on the consumer and institutional side. 70 million of our clients are going to benefit over the next
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12 months as we deliver some of this could really be's -- those capabilities. guy: you came from asia. you have spent time in europe. i am in the u.k. this feels like an increasingly digitized banking market. asia is like sears -- is light years ahead of where we are. what does it look like for consumer banking in the u.s. and asia? gonzalo: a couple of thoughts. one of the things that struck me from having had the privilege of 17 david -- 17 different markets is seeing disruption in the client experience, and i bring all that with me here to the u.s. points of commonality are the value of the physical location as it relates to value transactions. nobody included myself wants to come into a physical location to send a payment, to change the address on your account, none of that.
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for high-value transactions, i decision i may only make once or twice in my life, i definitely want to talk to a human. sometimes remotely, but sometimes i want the human interaction as well. we don't see that diminishing, certainly not in the u.s. and a few other markets across the world. alix: let me follow along those same lines and ask about crypto. the mayor elect in new york eric adams talked about wanting to be paid in bitcoin and crypto. what if i want to be paid and crypto? how -- paid in crypto? how do i do that if i bank with citi? gonzalo: well, today we don't allow that. we like the technology, but it is still a very nascent technology. we are trying to pursue it with caution. so we are looking at the space very closely, but that is where we are today. sonali: i am wondering about competition were largely because this cryptocurrencies, but than
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theirs fintech firms that are rising in some any forms to meet the new u.s. consumer. by now, pay later is one of them. you have your own version of this. how are you changing your banking product to rival these upstarts that are capturing the hearts and souls of so many consumers? gonzalo: i would define my approach as optimistic a paranoid. we like our assets. we feel trim and thusly proud of many of the things we have, but we worry every day about innovating and disrupting, so as you were mentioning, we are trying to give clients the flux ability of paying within their card come outside of the card, and we will continue to partner with many of the firms to be close to the point of sale. sonali: there's also this question about don't your consumer bankers have the option to work from home. how are you convincing them to come back? gonzalo: as jane has mentioned,
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we are having pretty decent success in our return to office. we don't force it for every day of the week. there is plenty of flexibility embedded. but i have to tell you, over the last couple of months since we started this, the feeling of being together with our teams i think is turning to draw many of our people back in. the feeling of working together, brainstorming together, it is not the same. i am accustomed to doing zoom marathons, but it is better to have the human touch. sonali: what can people expect from the middle of this massive strategy shift at citi enact six months? gonzalo: i love how jane is pushing us to be transformational, to drive towards excellence. what i bring from asia is a passion for driving digital at a much more accelerated speed. sonali: gonzalo, thank you so much for your time. guy, back to you. alix: i will take it from here. thanks a lot. it was a real pleasure to talk to you, can salute chatty, and -- gonzalo luchetti, and
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bloomberg's sonali basak. this is bloomberg. sonali: -- this is bloomberg. ♪ ♪
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ritika: it is time for the bloomberg business flash. i'm ritika gupta. -- will buy back close to $9 billion of stock after a decline in the value of its portfolio companies read to -- put folio companies led to a record loss in the performance of its companies. -- is stepping down as ceo of icahn enterprises just seven months after getting the position. the executive is resigning to do family issues that made it impossible for him to permanently relocate to florida. icahn says it is promoting its financial officer to ceo. today marks the reopening of travel to the u.s.
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iag's ceo says he's worried about fuel prices and inflation. he spoke to bloomberg at iag headquarters. >> it is a crucial moment because it is one of our main markets. we needed to have that capacity, so i think it is a day where we are going to see the future in some way. we can fly all the aircraft we are holding. it is an important day for us. ritika: he says he also sees a reduction in global corporate travel -- a return to global corporate travel in 2023. credit suisse is exiting the unit that lost billions in the archegos collapse. that is your business flash. guy: thank you very much, indeed. this seems to be the direction
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of travel. basically, a come at a has an issue with its prime business, decides it doesn't want to do it anymore because it encompasses quite a lot of risk, and as a result, bnp goes i will have some of that. alix: i have to wonder for credit suisse, does it clean house enough? matt levine, who writes for bloomberg opinion, was talking about the fact that it wasn't a hedge fund, but the wealthy client who went to credit suisse and said i would not to buy some stuff and leverage up. would credit suisse say no >> does it matter, the fact that that money and those trades were hedge funds versus the wealthy investor it was just a posed question that this really erases any real risk for credit suisse, or if it is still in the practice that is the problem. guy: i think probably there is an element of both that is true there, and i think risk management certainly, the line we got from management last week
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was very clear, we went to de-risk this business. and as you say, that doesn't just come from punting the prime business. it comes at a grassroots level. so to answer matt's question, that probably could be the case, but if they take a more holistic attitude across the entire platform, maybe they start to do with some of that risk. but that is a really long journey, that is a cultural shift to the bank's definite legal into have to go through, which is a difficult journey. we are right at the beginning of it, it seems. what have got next? that's what have we got next? the european close is back at its normal time. gas prices are spiking. you kate in your real yield falling to a record low today, 3.19%. this is bloomberg. ♪ ♪
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>> the countdown is on in europe. this is "bloomberg markets: european close," with guy
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johnson and alix steel. guy: monday the eighth. 30 minutes to the close. what do you need to know out of europe this hour? cases continued to surge across the continent. the german incidence rate is at a record. schoolchildren in large parts of france now wearing masks again. we are going to hear from the austrian finance minister a little bit later on in this program. the u.s. reopening to foreign travelers. we we hear from the -- we will hear from the ceo of virgin lending and iag regarding what it means for carriers. gas prices continue to soar with no signs that russia is going to deliver the supplies promised by vladimir putin. i think u.s. markets are up for an eighth day in a row. europe a little bit more mixed right


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