tv Bloomberg Markets European Close Bloomberg November 11, 2021 11:00am-12:00pm EST
european close," with guy johnson and alix steel. ♪ guy: thursday the 11th. what do you need to know out of europe this hour? the belarusian president of exec or lukashenko threatening to shut down a key pipeline that moves gas from russia into europe. unsurprisingly, prices rise. u.k. growth data slows and the third quarter, leaving a rate hike for the bank of england a finely balanced this is in this year. the european commission warning that it will actually slow sharply in 2023. in the luxury sector, burberry shares rose sharply. what will the trenchcoat maker's new ceo do to turn things around? we will check out that story a little bit later in the program.
it's talk about where we are with the markets. equities bid. we are back to 485. one of the reasons for that is the dollar is also on the front foot. euro-dollar with a $1.14 handle. people are talking about a one dollar 13 since handle sometime soon. alix: the reason why it is funny guy could not prance that, he was given me so much trouble on the brake about not prancing names -- about ms. prancing names -- about mispronouncing names. disney has the worst loss for the stock since 2020 after they did not get the kind of subscriber growth they were looking for. fremont the highest earner on the s&p. we will look at the potential upside is inflation keeps picking up later on in the show. guy was mentioning the dollar index, the highest since november 2020. crude also up 0.8%.
we are all kind of waiting on tenterhooks to see what president biden actually does. opec said we are seeing some demand destruction. they are still looking at a surplus in the beginning of next year, so how do we bridge the gap from now until then? a question we will talk about later in the hour. guy: i think we've got plenty of potential for pronunciation hours, so we are not there yet. victory has not been declared. let's talk about what is happening in europe right now. germany recording more than 50,000 new cases in one day, the first time that has happened. the german chancellor in waiting olaf scholz urging more people in germany to get vaccinated. sam fazeli, senior pharmaceuticals analyst for bloomberg intelligence, joining us now. what needs to happen next? what do you make of the trajectory we are currently seeing and key parts of europe? sam: ugly. i am looking at them here on my screen. per capita numbers are very high, but don't forget germany
is only just slightly below the united kingdom. austria, belgium, they are all shooting up to levels that not even the united kingdom saw during this past case rise. so unfortunately, highly concentrated populations and the cold weather selling in, vaccination rates are not that high on a relative basis. alix: if vaccination rates aren't that high, where is the booster conversation? javier: the booster conversation is a lot further ahead in the u.k. and france, to a degree, then really in germany and some of these other countries we just mentioned. i think nonpharmaceutical intervention is the way to go. masking has got come back in. alix: thanks a lot, sam fazeli of bloomberg intelligence. also what we are paying attention to, belarusian president alexander lukashenko is threatening to shut down a key pipeline carrying russian gas to the european union as the
bloc considers new sections. this escalates a dispute over migrants crossing from belarus into the eu. we want to break it down with bloomberg's alexander lipinski. where are we in this? alexander: to give you an idea, it is a country sandwiched between russia and the european union. its president, alexander lukashenko, has been in power for 27 years. today he threatened to shut down a key pipeline which carries natural gas from russia to europe, and most important to germany. the european union, which has not recognized lukashenko's victory in last year's elections, threatens him with more severe sanctions if he does not stop migrants from entering
belarus and trying to jump across the border. today, several thousand people, including children and women, are stuck on the border with poland, causing something which starts to remind us of a major human to terry and crisis. the u.s. has also planned more sections against belarus and russia which is belarus' major ally. guy: -- some signs of weakening. bloomberg u.k., and he reporter lizzie burden joining us to talk about what this means, particularly for the bank of england. is this in some way vindication of the governor's decision not
to vote for a rate a couple of days back? reporter: yes, kind of. the monthly figures came in slightly above forecast, but the corley figures for third quarter came in just below the forecasts. it is the quarterly numbers that the bank of england really cares about. so they showed there is a significant slowdown from the second quarter when you had that rapid rebound from the winter lockdowns, i momentum slowed partly because of supply disruptions. remember, as you say, there's a risk of choking off the economic recovery to put the bank of england off hiking rates at its november meeting last week. these numbers are close to the bank of england's updated forecast. they will probably buttress market expectations of a rate hike soon, if not next month. the intention is to turn to the inflation outcomes next week. alix: that leads us to the next
alix: you're looking now at a live shot of arlington national cemetery, waiting for president biden and the first lady, coming to participate in the president to arm sources full honor wreathlaying ceremony on the centennial anniversary of the tomb of the unknown soldier. the president is expected to deliver remarks in observation of veterans day.
guy? guy: the president will be arriving shortly. we will bring you pictures when he does. let's turn our attention back to what is happening with the economy and the markets. we certainly saw a shock yesterday for many when it came to the inflation number that was delivered out of the united states. in europe, the debate feels a little less conclusive at the moment. we find ourselves in a situation where u.k. inflation is running pretty hot. in much of the euro zone, it remains elevated, and then is expected to fall, according to the european commission, fairly sharply, back to below the 2% that the ecb targets. agnes belaisch, baring's chief european strategist, joins us now. how should i think about inflation in the euro zone? it is a hot debate on the governing council of the ecb. it certainly does not feel as hot as what we are seeing in the
u.s. will it become so? agnes: the inflation dynamics in europe is a little bit different from what is happening in the u.s. there is no labor shortage pushing wages up, and the supply-side bottlenecks are not as bad. for goods arriving in europe from asia, their coming from the middle east through the suez canal and arriving in the mediterranean and unloading in the ports. there is no shortage of truck drivers, and if there are, there are also very good rail networks. so the common point for the u.s. which you were discussing just before, which is the energy price shock, about 4.1% of inflation we saw in the euro area was coming from the rising oil prices, about .5% year on year. so isaac this is the key to determining what is happening with euro area inflation. alix: we have today, and in some ways this is no surprise, a
governing council member talking about the fact that you could see the ecb stop buying bonds as early as next them to per -- as next september. what is the risk of a policy mistake from the ecb? obviously, german numbers are going to be hawkish. but what is the risk? agnes: the ecb has not changed stance. but your absolute right that it is my biggest fear that the market misunderstands the end of the emergency bond purchase program in march 2022 as sort of tapering decided by the ecb, and taken as a tightening of financial conditions, and to put it is a change of stance. it might be added to it from the emergency purchase program, but it is very important that that
is well communicated because the ecb, although it has doves and hawks, has not seen anything that will make it change its mind. it is so close to its holy grail of changing the trajectory of inflation closer to target, and this is probably what is keeping it up at night, not missing this opportunity of not returning to subzero growth, but taking the chance of propelling european growth to a new, higher growth trajectory. guy: hold that thought for a moment. i want to direct our audience to what is happening at arlington. you are looking at a live shot from the arlington national ceremony. the president of the united states and the first lady participating in the presidential armed forces full honor wreath-laying ceremony all the -- ceremony on the centennial anniversary of the tomb of the unknown soldier. the president is excited to deliver marks in observance of veterans day. used to be called armistice day,
no veterans day, the 11th day of the 11th month. we will continue to monitor what is happening at arlington. let me come back to you and continue our conversation about what is happening inside the euro zone. we were talking to lance fritz a little earlier on. he runs one of the biggest railroad operations in the united states. he was saying that the u.s. is seeing higher inflation because it is seeing better growth. it's got better growth. to what extent is that true? the reason the u.s. has an inflation problem is that growth is running rampant right now. is that something we should be worrying about in europe? have we understand you rather than overstimulated the economy here? agnes: i totally agree with that point. growth is higher, and what is stopping it right now are supply-side bottlenecks, high energy prices, uncertainty, the virus still roaming around, and insufficient vaccinations, if not insufficient your shots. so all of this is well
understood. there is room for the economy to expand in the u.s., but also in the euro area, which is also affected by these energy price shocks, and there's a perfect storm hitting global growth right now and hitting europe, of course, as well. so i just do see enough to demand driving europe, with very high excess savings pushing it, that is actually being well interpreted by the stock market, and there's no reason really to think that the fiscal stimulus is what is missing to the european growth dynamics. we know that in 2022, nexgen -- next gen will be released, and the commission upgraded its 2022 growth forecast to 4.3, so not so far from ours as well.
europe has all the cards in its hands to work right well, and equities are showing that they are quite positive about earnings ahead. alix: tell me about the risks you might see in relation to china. talk about soaring prices. look at the ppi, the highest we have seen in decades. you also have the zero-tolerance code policy in china, so that feels like that could be a growth crimp as well. the property sector is going to be pretty heavy. you saw exports really good, but imports struggling a little bit, that is going to be very tied to germany and the potential growth rate and inflation in germany. how do you see that dynamic playing out, despite the fact that we do have that fiscal impulse coming down. agnes: the slowdown into china is a concern, but it is really import to understand what is going on there. we are taking the economy towards domestic consumption, but the way we are doing that is by supporting the middle class. the middle class in china is the
largest in the world, and they will now benefit from a social blanket from the government with better education services, with pension reform, so that there will be a way for the households to have retirement when they stop working, better health services as well. so the role there is to help boost domestic consumption as an internal driver of growth, so this should not be bad. this should not be a headwind for exporters that sell in china from europe, but in particular from germany, which has about 5% of its exports to china. guy: do you see european equities going even higher from here? we are at record highs. european equities are taking out
record highs. it has been a longer journey than we have seen over in the united states. how much is left in the tank right now? agnes: the markets seem to be given us a signal that they think there is more ahead, so earnings were beating estimates, and estimates are being revised down slowly. but there is so much slack and so many disruptions still ongoing in the economy that next year, when some of the disruptions are removed, when these booster shots are given, when vaccinations have advanced more satisfyingly, and as well when all of these pressures that are keeping consumers uncertain and insecure and precautionary peter out, since europe is lagging behind and is having so
much quality in its offering, these european equity's surprise the rest of the world because usually, the u.s. is expected to grow fast, but not european market. alix: very much echoing the view of goldman sachs. agnes, thanks a lot. coming up, let's stay on the prospect of european earnings. siemens expecting to reap benefits of years long streamlining initiatives that rivals ge. this is bloomberg. ♪
seeing the first green shoots of recovery from the coronavirus pandemic. heathrow is recruiting officers, engineers, and other positions. passenger levels are still around 56% down off of recovered levels. uber is raising its base fare in london by 10% to attract more drivers. customers have complained on social media of longer waiting times, cancellations, and higher fares during peak times. uber says it needs about 20,000 more drivers in london to help return service to normal. siemens expects profit margin to increase next year. the german engineering giant is reaping the benefits of years of streamlining a process that rivals general electric is just starting. >> of course, we've got to question why are we holding our shares, and on the others, we're working together on
technologies, so therefore, i do believe the way we have set up is quite well. ritika: siemens spent much of the last decade spinning off units such as health care and its gas turbine division. alix: thanks so much. let's get more on that. it is a really interesting compare and contrast. we are joined by bloomberg's industrials and transportation reporter. william, is it a fair 100% compare and contrast between the two? william: perhaps not 100%, but there's a lot of similarities between these two companies. they have big health care businesses. obviously, ge has its aviation business. but these are two companies that compete in providing industrial services, and a comparison is there. guy: why did it take siemens so long to figure out what ge was doing and figure out it was the right way to go? william: i'm not sure.
i think ge has obviously been struggling for years to get it is very difficult when you have these big, old, historical companies that say we need to do some really serious surgery here. siemens were very forward thinking about this. it was not hugely popular at the time, this breaking up the conglomerate thing. they really were pioneers at doing this, and it is definitely paying off them now. alix: over the past year, ge has outperformed siemens, for example. i wonder what the next catalyst is going to be, considering that the industrial watchers are really going to be looking at gen how that spinoff winds up taking place. william: it is true that siemens is not performing so well over the last 12 month. i thing what siemens really needs to do is profit ability.
that was the defense it gave for having broken up its structure. now you see there's a lot of visibility there, and management can concentrate on boosting profit ability of those. siemens still likes some of its competitors on margins and share price, and the management team early once to sort that out. guy: we will leave it there. thank you very much for the analysis. greatly appreciated. the comparison, the side-by-side between siemens and ge. what i thought was interesting is that what really stood out to me today with the numbers was the digital side. this is fascinating because there's this often well aimed criticism at german industry that it is not fully digitized, that it is not digitizing quickly enough, that it has not embraced the digitization we are seeing in the industrial sector. siemens was much more forward thinking in its approach, and really has been a standardbearer for german industry in terms of
digitizing. there are many businesses that desperately need to follow, but those numbers really stood out to me today. alix: i guess the question is, does it need to get better faster? i don't want to takeaway from the fact that it has this business and is doing well, but it is still only 10% of their sales. i wonder how quickly they can increase the ability to look at that kind of structure. how do they juice it up a little bit? guy: i think that is the question that every ceo asks themselves, and the answer is always yes, we need to get better, we need to do it faster. but digital in germany is one of the key areas the country really needs to focus on. behold industrial sector needs to focus on. you can say that about the auto sector as well. a number of companies have's struggled in europe. that's next. this is bloomberg. this is bloomberg.
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guy: a map showing a lot of positivity but the interesting thing as we zoom into europe, we have a big story. fresh record highs on the stoxx 600. there we go. what is happening is the cac 40 is up, the dax is flat, but the ftse is outperforming. there are number of reasons for that. now that we have the map settled let's move on to our next chart, which is the stoxx 600 which has pushed up nicely as the day has gone up. up .3%. another record for the stoxx 600. interesting to hear what we were talking about in our last conversation. still the potential to run higher, a little bit lower through the close.
yesterday quite a big spike during the auctions. let's break it down from the center point of view. the record high is nice but the sector rotation is where the details come in. the mining sector is doing well. yet the integrated miners doing well. they are picking up on china and the inflation narrative. what we are also seeing is the gold miners having a cracking week. gold starting to pick up again. gold very much on the front foot. the sector is up 3.66%. the bottom end of the market, travel and leisure. the reason for that is we are seeing a significant pickup and the number of cases around europe. that is starting to alarm the travel sector a little bit. there were some flights out of germany, flights out of russia that were blocked going into china. concerns about the numbers we are seeing.
we started the week by reopening the north atlantic. we are heading into the end of the week concerned about the covid story. siemens, a cracking set of numbers. i thought the digital side of the business was fascinating. the compare and contrast with ge is interesting. for the rest of the world, let me explain. this is a business that is a car marketplace. it is a car marketplace. secondhand cars are holding up in valuations. alix bought hers little while ago, jasper the green car. valuations are doing really well. trying to find a secondhand car is really tricky. then there is burberry. is burberry a luxury stock?
is burberry not a luxury stock? it does not feel like it is generating the topline numbers you would expect from a luxury stock. this focuses on the topline. it is about to get a new ceo. today's numbers were not good from a market perspective. this does focus on the topline. burberry being marked down hard at the moment, the stock down 5%. alix: that was amazing. there was a pregnant pause, there was a set up, there was a question. for more on burberry we are joined by swetha ramachandran. a powerful question. is burberry a luxury stock or no? swetha: certainly in terms of how it has behaved it would not seem like one. if you continue the topline growth lvmh is showing, those businesses, the fashion and leather goods and lvmh are up
nearly 40% year over two years, whereas burberry is flat. the winners and the laggards are widening markedly. burberry is in the middle. we even have the affordable luxury players in the u.s., tapestry which owns coach, which beat and raised guidance. stuck in the middle is affordable luxury. the question is where it goes from here. guy: i have a bigger question. why is burberry still an independent business? swetha: indeed. the 20 years of it being listed it has seen five ceos which is a high turnover for luxury businesses that pride themselves on long-term thinking and are in many cases still controlled by the original family or the founding families. burberry does not have that. the logical question is how much longer can it remain one.
it is hard to see what a private equity buyer could do differently in terms of cutting costs. it is not about cost-cutting, it is about elevating the brand and repositioning it and possible it fits more with the trade buyer than private equity. alix: why would going up market be the right way to go for burberry? would it more appeal to private equity or another buyer if it did something different? swetha: the question for burberry is to elevate sales density, the best way the industry has been able to do that is to elevate price positioning to become part of the rarefied group of companies that has pricing power. you can do that when you elevate your positioning and are offering consumers something they're willing to pay higher prices for. that is the appeal of the sector, particular now, it's superior pricing power. burberry is still in the middle of its transition and has not quite made that jump into the league where it can charge consumers what it wants.
it still has a sizable outlet business which it is trying to unwind out of. guy: would it fit into the one of the big conglomerates? swetha: that has been a hypothesis for the last decade but has not happened. it is still a question. for some of the truly big conglomerates, maybe burberry is still too small. i wonder if more of a midsized conglomerate might be the answer for burberry such as may be what xor is trying to do. i do not know if burberry is on their radar, but that is the kind of company this might fit in with. alix: is there something burberry could do that would change the game in terms of looking more attractive? swetha: i think the question is on consumer appetite for their designs. designs have been well-received but perhaps not generating the same amount of fever as when alexander took over at gucci,
which characterized the dramatic transformation of that brand. may be more creative momentum which captures consumer imagination is what they need. on the product side this company has been apparel driven. the more they can reduce their dependence on apparel where the margins are higher, that is something they can do in order to increase the margins overall. guy: you talked about the management turnover. we are about to get another turnover. do you front run that into him taking over? swetha: he is a very capable operator at the message today from the chairman of burberry was we should expect any dramatic shift to the strategy he is well on board with the strategy and the repositioning that is underway. he is definitely a capable operator, but there's a limit to how much he can do or the management can do in the absence of the product resonating with the consumer, which is the question right now.
guy: we leave it there. thank you very much indeed. swetha ramachandran covering the luxury sector on burberry today. thank you very much. a little bit of a dip into the end of trading. the ftse 100 still positive, up .6%. we have talked about burberry. a bit of a drag on the london market. the dax up 1%, the cac 40 up 2%. we have hit fresh record highs today. fresh record highs for the stoxx 600. alix: let's go to the gold stock. coming up we will talk about inflation heating up and gold higher again. the stock outperforming. connect continue. we will break that down with the goldman sachs head of energy research who joins us with his outlook. this is bloomberg. ♪
live shot of the principal room. coming up, michelle meyer at 12:00 in new york. this is bloomberg. let's check in on the blue bird first word news. the british economy grew less than the bank of england forecast, plus consumer spending shows signs of weakening. that leaves the chance of of an interest rate increase in december and the balance. grows to mr. prop dock -- gross domestic product rose 1.3% belarus is wrapping up the pressure on the migrants looking to cross into eu territory. belarus says if poland closes the door to the migrants belarus will shut down a pipeline carrying national gas to the eu -- natural gas to the eu. the people lay out a 46 billion dollar infrastructure plan to counter china's belt and road program. the plan is aimed at boosting
europe's competitiveness and interest around the world and there are also digital transport and trade projects. global news 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. i am ritika gupta. this is bloomberg. alix: thanks so much. for much of this year rising inflation has been bad news for gold, which is ironic because usually it is supposed to be good for gold. now the metal is getting a shot in the arm, up $11 an ounce. goldman sachs has a price target of $2000 for the rest of this year and next year. let's talk to the guy behind the call, damien courvalin. i could say inflation is superhigh, why isn't gold at 2000? i can also say finally gold will work as an inflation hedge. which is it? damien: if you look at the last six months, gold is not really
necessary because we have a bit of inflation. that is because we have good growth after that. now because of the persistence of inflation, the risks are increasingly disinflation could prove persistent, surprise to the upside like it has recently, the value of gold -- it is only one of several drivers but that is the one that has changed the most recently. investors positioning towards gold. guy: if interest rates start to rocket, where does that leave gold? where does that leave silver? damien: the key question is what is moving with the interest rates? long interest rates and real rates is what tends to matter most. so far breakevens have been a tailwind for gold. the key is gold has been depressed since mid june, has
not rallied when real rates were moving in a supportive direction. even now the dollar is rallying and gold is catching a bid. it echoes the view that investors had neglected gold after the big reflation questioning in june, probably crypto cannibalization. i think the moves from here on the right side are supportive and are leading to the new bid for gold. guy: i wonder if investors -- alix: i wonder if investors were doing other things as an inflation hedge, whether that is crypto or buying called stock -- buying gold stock. you see any evidence of that currently? damien: i think it is starting. we have argued historically that crypto and gold do not have to cannibalize each other. the value of crypto is its
network, just like the value of oil is it is consumed. gold does not have that. it is a defense of asset that can outperform significantly. it is a fact that we see substitution recently. evidence that demonstrates that is china. as late as the summer china surged back in crypto and we are seeing a sign of strong gold demand in china. we are not arguing that crypto needs to be banned for gold to find a bid but so far it has been a headwind. gold is becoming the poor man's crypto. at this point, especially as the inflation signal is going to be more pressing. guy: what are central banks doing with their gold stocks? damien: that is important. anything about gold there are three forms of demand. the investors, which is mostly
dm investors, there is the e.m. consumer, who allocates as well, then the central banks, which is where we have had reserves. it has been missing for the last five years -- what has been missing is excess savings for those central banks. think about russia. as oil prices have recovered their well above russia's fiscal breakeven and reserves are accumulating. there is no other real asset other than gold. that is leading to higher gold allocation. when you think about our forecast come in particular oil, that is now a natural reallocation from central banks into gold, which is already because it has been missing the last several years. guy: you mentioned the -- alix: you mentioned the e.m. consumer and in theory you get higher inflation -- there are so much input costs that consumers are
struggling with as inflation is high everywhere. wages are not keeping pace as high as inflation. did those consumers we rely on still have enough extra cash to spend on gold? damien: the evidence suggests as those countries finally move beyond covid we are seeing the gold demand. they may be also in assessment of consumer confidence and employment of some of their income for gold. it appears that as we are seeing e.m. outside of china benefit from vaccination, we are finding a bid for gold on the jewelry side. we talked about china and the rest of the e.m. are starting to show up as well. that is the stronger footing on the demand side across all forms of demand that argue for higher gold prices. guy: how high do we go? where does silver go? where does gold go?
damien: silver always has a high beta. if gold has a good move silver will outperform. our case is gold goes to 3000. we have to check what are the inflationary risks? are they building to the upside or do we finally see signs this is transitory? i think the first like for us is clear. after that one should be open to further upside. alix: we do not have a ton of time but i cannot let you go without asking about oil. i feel like we are in a standoff between saudi arabia and president biden. what you think president biden will try to do to lower oil prices in the short term? what are the options? damien: u.s. government eia projects oil prices. it is less urgent to do something. the option is an sdr release or -- that helps a few dollars per
barrel. gasoline is where the issue is. the second option is to modify fuel mandates in the u.s. to make them less onerous to consumers. that directly impacts gasoline prices. the real key is it does not solve anything. here is the key message. at $85 where nothing of capex through investment. the forward curve below that. the whole oil complex has to be priced higher. guy: always good to get your insight. thank you so much. damien courvalin, goldman sachs head of energy research, greatly appreciated. this is bloomberg. ♪
guy: 52 minutes past the hour. i am guy johnson. alix steel in new york. this is the european close on bloomberg markets. bond markets closed for veterans day. stocks very much trading. it looks like tech is having an interesting day. semiconductors, let's start off there. abigail doolittle has the details. abigail: the chips and tech outperforming. the bond market is closed. you do not have to worry about yields rising. here you can see some of the top performers the s&p 500. nvidia up 2.2%, getting a 49% price target increase from oppenheimer to $350 per share, head of earnings next week. analysts are bullish. then you see a lot of apple suppliers higher as well.
as for some of the individual movers, the top leaders and laggards for the s&p 500, among the leaders, take a look at freeport mac ran. you were just talking about commodities. copper and gold helping freeport trade higher. tapestry up 9.7%, the best day of the year. coach randy doing especially well. 26% growth, they double the buyback. to the downside organon down 6.1%. this was the women's health spun out from merck. perhaps that is why shares are down. disney down 7.1%, off of the lows but the subscriber growth not there in the way folks wanted to see at 2.1 million subscribers. not enough. they missed on adjusted earnings and revenue. as for yesterday's big stock the electric truck maker is on fire
out of the ipo gate in a strong way, up 59.5%. that is pretty incredible given the fact this company now has a market cap that is only behind toyota and volkswagen, daimler right there. only 1200 trucks by the end of the year. guy, i know you love the aesthetic of cars. the big truck is a great look. alix: i like cars. [laughter] guy: alix bought a green car. alix: is a forest green. we named it jasper. to that point, those trucks look cool. the headlights are like robot lights. coming up the next 24 hours, it feels like but there are things i want to key in on. it is the final day of the top 26 conference and the bank of
england -- will be speaking on u.k. cpi next week. that will be interesting. guy: in the euro zone we have production we will be watching out for. the university of michigan consumer sentiment. i know this is a favorite of the program. i'm looking forward to what the data will tell us about the consumer and the inflation story. alix: it is my desert indicator because the sentiment part is fascinating. that wraps it up for me and guy on tv. coming up, michelle meyer will be joining balance of power with david westin on television and radio. guy and i are also hit radio. guy: we are. the cable show. we are going to radio. this is bloomberg. ♪
westin. david: from bloomberg's world headquarters in new york to our tv and radio audiences worldwide, welcome to "balance of power." the big political event of the week turns out to be economic, particulate those inflation numbers that came out yesterday morning. the question is what president biden can do about them. for answers we welcome our washington correspondent in new york today, joe mathieu, the host weekdays of sound on on bloomberg radio. good to have you here. what is joe biden going to do about inflation? this is not good news for him. joe: if you ask joe biden he says he is already -- already doing it. it is being seen as a cure by the biden administration --