tv Bloomberg Markets European Close Bloomberg November 16, 2021 11:00am-12:00pm EST
johnson and alix steel. ♪ guy: tuesday the 16th. 30 minutes to the close. what do you need to know out of europe? covid continues to surge across the continent. germany set to follow austria, enforcing a lockdown for the unvaccinated. in spain, leaders set to tighten restrictions. ireland is preparing to return to home to work. if you slick we have been here before, doesn't it? the u.k. posting strong data as the end of the furlough scheme passes strong numbers. it seems to have gone off without a major problem. reinforcing the idea that the bank of england will hike rates in december. as we have been talking about, european gas prices surging once
again. we are at a three week high. this as germany suspends certification of the nord stream 2 pipeline from russia. you carbon prices have hit a fresh record high today. let's talk about the markets. where are we with equities? this is the stock 600. this is what gas prices are doing. we did get through 490 a little earlier on. there are widespread expectations that we continue to push on from here. the valuation mismatch between europe and the united states as wide as it has ever been. in fact, wider. gas prices, that is the number here in europe. we are looking at a 15% surge in european gas prices once again. this feels like a familiar theme. alix: definitely deja vu for us on this show. in the u.s., i want to highlight some individual movers moving the index. home depot up by about 5%. super solid, super clean quarter. second best performing stock within the s&p, pushing consumer discretionary higher within the
index. flip it, walmart down 2%. super solid, but it was a squishy margins as analysts at morgan stanley pointed out. that is kind of dragging on the stock. those of the retail highlights of the day. overall retail sales came in very strong in october, very much surprising investors, and that sort of helping to support equities a touch. idiosyncratically, tesla up 3%. i don't know why because elon musk is selling more shares, so that is something to always keep track of, but maybe the stock has shaken out all of elon musk's selling. rivian is worth more than volkswagen. i'm just going to leave that right there. something i never thought i would say on television. guy: i've got nothing smart to say about that because it absolutely blows my mind that that is where we are so quickly after the ipo, so quickly after this company was created. volkswagen has been around for a while. it knows how to build cars. it builds a lot of cars. it builds a lot of vehicles.
absolutely amazing to see that happen. a lot of analysts over here are buying their hands on the desk, talking about the valuation of european equities, which trade is a significant -- which trade at a sig. discount right now. and by the way, don't think you have a carte blanche to use that kind of squishy language on a regular basis. alix: i am totally adopting it all the time. guy: i appreciate we are getting into the technical weeds here. this talk about what is happening with the gas story and focus on that more, and also the covid story because that is really what is dominating the agenda over here. europe really grappling with the resurgence of covid-19 cases. it has sort of started in the u.k.. prime minister boris johnson talking about this yesterday, basically telling the british population we are not done with this yet. pm johnson: we must remain vigilant because there is one lesson we can draw from the current situation in europe.
those countries with lower vaccination rates have tended to see bigger surges in infection and in turn been forced to respond with harsher measures. guy: the prime minister would not rule out further restrictions. he would not rule out the fact that we could be headed towards a lockdown in the u.k. other countries in europe are starting to move in that direction. for the details, we are joined now onset by eric pfanner. where are we in this process? we seem to be accelerating into winter. a lot of restrictions being imposed in various parts of europe. eric: it is interesting that the prime minister flag that continental european surge, given the u.k. has been at this pretty high plateau. guy: he implied we were behind them, not in front of them. eric: indeed, and the case numbers are still stubbornly high. so we are heading into this time of year when people are indoors
more, and normally, this time last year was when it just started to take off. in the u.k., it has been pretty high for quite a while. we are seeing that across the continent. it is pretty alarming, obviously. alix: is this going to be a repeat of last year, or the therapeutics, the fact that there are vaccines that people can get, does that change the cases and hospitalizations? eric: i think there are two key things that change the equation quite a bit. the vaccinations, even though it is talked out in a lot of places, that is still helpful. you have the most vulnerable people getting boosters now. that makes a big difference in terms of the hospitalizations in the death tolls -- hospitalizations and the death tolls. then there's the pills on the horizon, the merck pill, the
pfizer pill. they have generally good results. alix: maybe that goes away into explaining those record high european equity stocks. guy: it partly goes towards that, yeah. maybe there is of little bit more optimism. maybe there is expectation we are hitting fresh record highs here in europe. the market is up very strongly this year. this is a 30 year chart. i wanted to take it back a little bit longer just to give a little but of context as to where we have come from and where we could potentially be going because we are hitting fresh record highs. we had a touch at 490 a little earlier on. we have also never been trading here in europe, and i keep coming back to these charts because it is so fantastic, we have never been at a bigger discount here in europe versus u.s. stocks. it is a 30% discount we are now at. the discount has been widening really since 2015.
you can see the channel on this chart here. we obviously pushed sharply down during the pandemic as europe got hit as hard as it did, but we have continued. european stocks have never been this cheap versus the united states ever. it has never happened before, and a lot of analysts, a lot of strategists are really starting to pick up on this. the question is, are investors going to start moving money in a signet again way as a result? alix: just look at rivian and volkswagen. that is a perfect example of what you are pointing out. let's get more did you on this with valentijn van nieuwenhuijzen, nn investment partners cio. do we see that gap close, and by how much? valentijn: we are not seeing it close, but it is clearly an opportunity. it is one of the opportunities we like the most because of this discount, and because of the visibility we have on policy in europe, although europe is liking the u.s. from an economic perspective.
there is very much visibility on an easy policy stance which is one of the things next to the underlying fundamentals that keep supporting these very high levels in equity markets despite the covid dynamics. guy: so what do you think we do next year? does this just carry on? very nice to see you. does this carry on next year? do equities continue to grind higher? valentijn: very nice to be here. i do think that into next year, equities are the place to be. currently we are seeing that a record highs. we also see how kind of metrics that express investor optimism really on the high side. towards year-end, may be the first part of next year, there may be a bit of a correction and a bit more volatility, but underneath, the economic fundament of our solid. just look at the latest earnings reports, whether it is in europe or the u.s. for the third quarter, pretty solid.
consumers are able to interpret these rising input costs very well. i don't think with the economy going where it is, next year will be a year for equities as well. a bit of all of the to come, but it is my favorite for 2022. alix: i feel like i have hold this whole discount, valuation equities story for europe for a very long time. the dangerous question, why is this different? valentijn: you are right, i do not expect the discount to disappear. is at record highs now, and i do expect the cap to be narrowing. but with respect to the u.s. economics or the covid situation, it is just the composition of the equity market. you gave the perfect example about the car industry. the sort of technology advantage that the u.s. market has come of the disruption that is going on in our economic system, is accelerated by covid, but it is not started by covid alone. i think that advantage for the u.s. market will continue to be there, so we do expect the discount to remain, but also to
make it smaller into next year, so it is a tactical opportunity to belong europe compared to the u.s. for next year, but i don't see over the coming years that the gap will be closed completely. guy: you are over there talking to investors, talking about what is happening with europe going into next year. as you are doing that, i am watching the euro go lower and lower. we had a $1.13 handle today. if i compare the current see hedged story in european equities, the dax year-to-date and euros has done 18% to the upside. the cac 40 has done 28%. the dax has done 18% in euros, only 10% in dollars. how big a turnoff is that going to be for u.s. investors? valentijn: i think that is going to be a disadvantage into next year, and that comes down to what is happening with monetary policy. the ecb for a change is much
more dovish than the fed at this point in time. it is fighting hard against the market expectations of already seeing hikes in 2023, and clearly there is a strong commitment to keep policy very easy and to keep qe, although it will be calibrated, to keep qe in place. that is a very different place than where the u.s. sits, and whoever leads going forward is going to be looking at reversing qe per the rapidly and contemplating when to start with hikes, so i is the core driver, and that is going to be a dissipated for u.s. investors looking into the european market despite the fact there is a valuation support their. alix: you mentioned that this is a tactical play, but you don't expect the gap to close 100%. what do you do on the backend? valentijn: i think it is going to be until all of the understandings of covid has been
normalized and the inflation picture has been normalized. that would take another six to 12 months, so over that horizon, there is an opportunity to outperform. in the medium-term, with thick about the next three to five years out. i continue to expect the u.s. market to be superior to the european market. guy: if you want to talk about valuation discounts, we should probably talk about the u.k. what is the outlook for the u.k. market? valentijn: the outlook for the u.k. market, despite the fundamentals, is so much surrounded by uncertainty, whether it is intensification again on trade and brexit, whether it is the behavior both on fiscal policy, but certainly on monetary policy. that is just inserting anna norma's amount of uncertainty premia into u.k. asset prices. i think it is a market where there might be short-term opportunities, but not really a market that we like to play very actively. if we talk about tactical
opportunities, it is with a horizon of six to nine months, and ultimately a horizon with six to nine days, and that is where you see u.k. opportunities, i think. alix: thanks a lot. it is great to see you here. thank you very much for joining us, valentijn van nieuwenhuijzen. we have some breaking news for you. janet yellen is speaking, saying that inflation might subside by the second half of 2022. she is really pounding the drum on that. she has not strayed from that talking point. prices are high, but inflation will subside by the second half of 2022. guy: that does in fact fit with what we are going to talk about next, because the iea is talking about the fact that they see the end of this oil rally. that has sort of become welcome news for the president. gas prices are superhigh at the moment. the iea thinks it is going to come down. we will talk about that story with amrita sen, energy aspects chief analyst. we will get a read on was having
-- on what is happening with natural gas prices in europe as well. the bloomberg new economy forum is happening this week. we will have something to stick interviews coming up. we've got paypal, alphabet, goldman sachs. there are so many i can't list them here. it is going to be an incredible week right here on bloomberg. look forward to some of these interviews. we are going to make sure that you see them. this is bloomberg. ♪
reiterates that the u.s. has a downgrade risk if there is no debt limit hike, but she can't imagine that congress let default happen. this is as we tick towards the holidays come over you have a budget resolution deadline and a debt ceiling limit deadline again, which we already had two months ago. guy: i actually laughed out loud when i read that. janet yellen "can't imagine that congress would let a default happen." alix: that feels like a pretty non-passive-aggressive point. . guy: i think plenty of people probably could imagine congress making a mess of this, but we will see what happens. talking of things going so well and so smoothly, natural gas prices in europe once again soaring. germany confirming it has suspended the prices of certifying stream to. i read this -- certifying nord stream 2. i read this this morning and thought it was germany playing politics. i thing it is probably a little more technical. bloomberg's head of gas and
power coverage in europe going me on set. just ask point to me what is happening here because this involves a lot of different divisions of different companies making sure that they get the regulatory process lined up. reporter: i think one of the rules of the european union is that you cannot own the gas pipeline and produce the gas and own the gas as well, you've got to do one of the two. right now, nord stream 2 ag, the swiss entity, is fully owned, so it is unlikely they will get approval to start flowing gas with this corporate structure in place. so one of the things they have done is the german regulator decided that it cannot proceed in the way it is, and for gas to start actually flowing, for the approvals to come through, they basically have to set up a legal entity in germany. that is why the process has been halted. alix: so in a weird way, could this be a good thing, in that once this subsidiary is set up,
things could actually move more quickly? isis: i thing it could be a good thing. it depends on who you are talking about. but if you want more gas in europe, this could actually speed up things in the end, but there is a delay right now because the process was about two months from finishing, and now there is a pause in the process, and we are going to have this pause all the way until the documents are submitted and the german regulator can start looking into the case again, and then the two-month clock starts ticking again. so initially there is a delay, but if everything gets set up the way the german regulator wants and expects, it may actually in the end result and gas flowing out of nord stream 2. alix: thanks very much. that is the natural gas picture. in the meantime, oil executives are defending fossil fuels. >> the energy industry is in very huge transition, very uncertain times. everybody is making adjustments
to mix sure your meeting the net carbon zero -- the net zero carbon target for 2050. obviously the whole energy industry is adjusting. >> for the future, petrol and diesel, petroleum, are going to be the mainstay of the global economy, and i think we need to factor in very carefully what happens when those prices go through the roof. >> there's some hype in the market, but looking forward, we have a seasonal drop in demand in winter. we have more and more oil coming from the opec+ group. every month, more is being added. we have seasonal demand and more lockdowns we are experiencing, so we believe there will be surplus. >> we are not going to continue to having this problem we are seeing today, moving to the first quarter of next year. that is the comforting news. guy: some of the comments coming out of abu dhabi at the huge
energy meeting taking place there. this talk about what the iea sees happening. it is talking about the fact that we may be near a peak, that oil prices potentially could drop in the not-too-distant future. amrita sen, energy aspects director of research, joining us now. what do you make of the iea outlook? do you think we may finally start to see energy starting to fade in terms of the cost we will pay? amrita: i think there was some contradictory stuff in the iea report because it talks about how the tide is turning and how prices are going to come off, and i don't know if you noticed, they have even issued some price forecasts, which they rarely do. very much an effort to point towards the u.s. and say we don't need to do a cord needed spr release. the balances are going to be fine. that they revised their own demand forecast higher, so there are some it is since he's there
-- there are some inconsistencies there. there balances, and terms of what they are pretty thin, they have a lot of unaccounted for barrels. once you put that in, we are still seeing very big stock draws even in q4 of this year. next year, the balances are perish. they are so bearish that they are saying opec+ shouldn't even increase production beyond current levels. alix: do your models say the same? many people talk about the fact that opec+ are not able to pump what they are supposed to, and there is some confusion as to how much shale players are willing to pump. amrita: there are three factors. one is demand. if you have seen anything this year, people are driving people off-line, regardless of price. we are seeing huge amounts of pent-up demand, so i think that we are going to continue to see next year as well. asia is just starting to reopen. we are still not even seeing
that kind of improvement, so there's going to be more pent-up demand. the second thing, shale still not growing production. third, up plus members, look at the amount opec+ is increasing. they are not even able to get the 400,000 there'll -- 400,000 barrels per day due to underinvestment. guy: very quickly, can oil prices come down if gas prices stay high in europe and around the world? amrita: the only way it is going to come down is if you get an spr release. everyone is expect and that from the u.s. it is going to be momentarily coming down. and ultimately, these stocks are so low, we are going to be going up again in a matter of weeks. it is just seeing this period through with all of this uncertainty around the spr. guy: it is going to be a really difficult winter. we will see exact what happens here. thank you very much, indeed. i'm sure you will be back to
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session in europe. a mixed session for european equities. the broad narrative is the european equities are changing -- trading at a huge discount to the united states. today we focus more on what is happening some defensive sectors , the london market in particular in wrightstown by the health care stocks. think astrazeneca. eloping of softness there. the banks have been weaker. names like emb parabolic acting as a drag. let's show you how the session has developed, how we progress throughout the day. what we got initially was a big gap higher first thing. that took us up to around 490. we had another try, we faded a little bit since then. we are at or close once again,
inching ever higher for european equities to the record highs. we are just below the 490 level. a lot of people have targets for next year that have a five at the beginning. let's talk about the breakdown from the sector point of view. retail, soliday, surprising given the numbers we have seen out of the united states and a good labor day out of the u.k. today, plus individual names. energy is up, real estate is up. the bottom end is a bit more defensive. consumer stocks are down. media later as well. individual names our work focusing on. let's spend time talking about that. vodafone is interesting. restaurant group, i will start here. restaurant group owns -- you find it in a lot of high streets and airports.
really good numbers and outlook in terms of what we are seeing, defying expectations, beating expectations for the rest of the sector. maybe there is a sign that what is happening in ok is we are starting to progress -- in the u.k.'s we are starting to progress from buying stuff to buying services that will speak to the restaurant groups numbers. vodafone, a solid set of numbers , the stock up over 5%. a good luck in terms of what is happening. a positive outlook. the dividend outlook looks good. services looking solid. vodafone up 5%. i want to wrap things up talking about the synchro -- about thyssen krupp. this is a financially stretched companies. there is news it is looking -- it's hydrogen unit. this is the unit that uses renewable energy to then drive
the reaction required to produce green hydrogen. a lot of people are talking about this being the way forward. this is an industry in its infancy, but thyssen has decided they should take advantage of the interest in up to crystallize some of that value. thyssen up on the back of that by 12%. a huge move on that story. alix: let's get more on that. bloomberg's william willis joins us. why did they join -- why did they do this now? green hydrogen is in its infancy versus full on gray hydrogen using oil. william: i think it is because thyssen krupp is trying to restructure, it is in the steel business which is doing a bit better than in recent months, but it is still a low-margin business that struggles to cover
the cost of capital. i think lifting this would give krupp the funds to scale up its businesses. it is starting to get bigger and they have a lot of big german industrial companies looking for solutions that will get them green hydrogen to use in industrial heating. guy: do we know whether or not thyssen will try to retain a stake? what will be the relationship between the old company and the new money? -- and the new company? william: that is not clear. i imagine thyssen will want to retain some of the company. i do not think a final decision has been taken on how much they
would hold on to. it is not just about benefiting from this future. they also still need cash to continue to fund the restructuring. thyssenkrupp, f the start of the pandemic people thought that was it, but they have done remarkably well. alix: in the piece you wrote an ipo could value the business at $5.7 billion. how we evaluate company that is in its infancy? how do value the spinoff? william: the bankers working on the deal have come up with that valuation. i think it is based on the outlook for hydrogen on current earnings, which is about 250 billion euros a year, on the expectation demand will rise in this revenue will just keep going up. guy: are there any more hidden
gems at the synchro -- at thyssenkrupp? william: it sounds like not. they are trying to sell other businesses. there are still positioned opposite towards the hydrogen, still manufacturing in europe -- steel manufacturing in europe has a future, the steel industry is very polluting. there's been more and more increases of the cost of emitting urban dioxide. krupp is looking at portfolios and saying this is one of the few remaining jams they have. -- few remaining gems they have. guy: fascinating story. william wilkes joining us on thyssen getting out of the hydrogen business, but amazing to see how you value a business like that considering out in its
infancy this industry is. let's move on and figure out what the final numbers look like in europe. we are through the auction. these are the final figures. will get the camera out of the way. the ftse 100 down .3%. we did see a little bit of a spike lower during the option, taking us down -- during the auction, taking us down lower. the dax outperforming today, up .6%. alix: fun facts, thyssenkrupp, when i went over to london as a reporter, i did a hit with you on that. guy: i remember it well. it was a fantastic it. alix: you do not. you're just mocking me. i was like how do i say this name? how far we have come.
janet yellen talking to npr about the debt ceiling, sing the debt limit process is a self-inflicted wound, not a great deal of time left for the debt past december 3, which feels like she is putting a little bit of a dropdead date, and the new guidance will be forthcoming on the actual timing of the debt limit. we are seeing a reaction in the t-bill market, so some of the bills maturing at the end of december, they are moving higher. clearly this is still something to pay attention to, particularly for the bond market. we will update you on any headlines. the u.k. labor market, superstrong numbers. the london asset management senior economist will join us next. this is bloomberg. ♪
secretary dan brouillette. this is bloomberg. >> today's jobs figures are the first we had since her low ended and they show unemployment -- since furlough ended and they show unemployment has consistently fallen in record number of people's artwork, including 100,000 people -- record number of people at work, including 100,000 young people. guy: the k unemployment rate. that was rishi sunak talking about the labor market. quite a significant recovery. what is critical is we have seen a relatively smooth transition out of the furlough scheme. that is what everybody was worried about is you would see the furloughs team causing huge
problems in the labor market and a lot of people unemployed. melanie baker joining us now. a lot of people are impressed we've managed to negotiate the end of furlough so smoothly. we will get another piece of labor market data before the bank of england meet next. you think we need more evidence to confirm what we have seen today? melanie: we do. we have a good picture so far but we have a virtual picture. we will have another set of labor market data before they next meet in december. so far we only have the unemployment rate for three months into the furloughs team. dachshund of the furlough scheme -- into the furlough scheme. we know there were over one million people on the furlough scheme when it ended. we had surveys suggesting that 3.5% of people furlough at the
end of the scheme were unemployed in october. alix: i am looking at the gilt market. two yield is up three basis winds. traders were super burned when it felt like andrew bailey was talking about a rate hike and did not deliver. does this pull any triggers? melanie: not yet. one thing is the pay numbers, the pay numbers comey look at the regular pay acres were weaker -- the pay figures were weaker than expected. a little less worrying from the pay numbers today. everything looks in-line with raising rates as they signaled in coming months. for me that means february but there is a good chance it is
december. guy: why do you think february rather than december? melanie: this is a big decision. whenever separate meeting they will have a press conference and a full set of economic meetings. on the whole is february. a bit more to go on. alix: if they start in february, how far do they go? melanie: that is a good question. for me i think we will see a gradual process of rate increases from here. if you look at the general method of their last inflation report it as they are not in a panic or a hurry at this right. for me it will end up later in the year, and then roughly a 125 basis point increase a year. it is a relatively gradual interest rates. guy: given the trajectory we are
on with covid elsewhere across europe, it is that's because wealthy idea that february will be a better idea, or whether it is smarter to wait and get through the winter to see what happened, like picking will happen with covid seems like a difficult job. melanie: i do not want that job. there is something that health experts warned about that we could get a combination of covid and that could lead to a difficult winter. you can see what is happening in europe. it is not just the covid figures, but governments are responding and we are seeing more social distancing, which could hold back the recovery in europe. in the u.k. does not sound like we are building to an increase in inflation -- alix: it does seem that further lockdowns in the they have not been ruled out, and i wonder how you think the economy would handle something like that now that the furlough program is
over. does the government come to the rescue again? how do you think about it? melanie: alas lockdown we had at the turn of the year -- at the last lockdown we had at the turn of the year -- the damage to the economy was much less. i think there's a good chance we see the furlough scheme returning on a temporary basis. guy: i am assuming the governor will have to write a nice letter to the chance for talking about why inflation is above target. we will get cpi numbers tomorrow. how much above target you think we are right now? melanie: my forecast for tomorrow is the cpi number jumps from 3.1% to 4%, quite a lot above target. if you look at the drivers of inflation a lot of it will be energy prices. the higher diesel prices and
maybe a bit of upward effect. a lot of things they can be safely put in the transitory bucket for central banks. alix: that will be pretty interesting. melanie baker, royal london asset management senior economist. thank you very much. i think it is interesting on what the tolerance will wind up being. in the u.s. inflation is superhigh. sentiment is taking, sales are holding up. retail sales doing fine. guy: they are obviously connected. you wonder whether consumers are front running, not only for the holiday season, making sure you have enough presence to put under the christmas tree, but also the fact prices are going up, people may be to get in front of those. maybe we are starting to see consumer behavior affected. there is no expectation there is bright forward purchasing happening in the u.k.. people are worried about
shortages. then you have the brexit factor which is making things more tricky. alix: which is why you bought your bike in august? guy: my son's bike. it was not quite that bad. trying to buy a push bike in the day is a tricky job. -- in the u.k. is a tricky job. high end manufactured products. alix: and fancy wood from somewhere. coming up, we are back at that point where we will have to break down the debt limit risk. janet yellen call the whole process a self-inflicted wound. this is bloomberg. ♪
maturing at the end of the year rose after janet yellen said they do not have a lot of time left for borrowing after december 3. she said she will be updating congress on how much time is left. our washington correspondent annmarie hordern joins us. walk us through what else we learn. she is purely trying to put pressure on congress. annmarie: does not look like it will be a merry christmas for congress. we are exactly where we were a month ago when we are able to lift the debt ceiling and avoid coming up to the edge of that cliff. now treasury secretary yellen will have to let congress know again what is that date. maybe into january. she will give us a range time of that date. there is a lot of pressure on congress trying to get through a massive spending intact land on top of the debt ceiling. a stopgap funding measure will
be need to be done as well. time is ticking and then we have two weeks of working days left. guy: she cannot believe congress would make a mess of this but zoomable believe the democrats are on their own. annmarie: mitch mcconnell, the minority senator from kentucky, was able to mitigate away from the democrats to do it an easy way in congress. now he is saying republicans will not line up or it. for republicans, even though it is past debts, for them as a moment of focus because they are against larger fiscal package the democrats want to push through. we are back to square one for the democratic party will have to potentially put this in a reconciliation package. alix: mitch mcconnell came to the rescue and gave this extension in terms of the debt ceiling. does that happen again? annmarie: according to him it does not.
he was able to help mitigate it last time. for him it is i have given you enough time for this party that holds the house and the senate, i am paraphrasing, for you to decide how you will include the debt ceiling as part of your nearly $2 trillion reconciliation package. that is the stance from senator mcconnell and it will likely be the stance from the republicans behind him. alix: let's talk about -- guy: let's talk about what is happening at the white house with regard to the fed. sherrod brown making a fascinating statement, "i hear it is imminent." i think it might now he assumed the decision is made but they have not announced will stop what do we know? annmarie: we know it will come before thanksgiving. when i hear imminent i think hours, not days. potentially senator brown was not helping us with the timeline. we do know the president did
meet with chair powell and governor brainard. these are the top contenders for that spot. we are still waiting on details. as the president going to do just the top spot 40 c going to talk about all of the other nominations -- just the top spot or is he going to talk about all the other nominations? this is another to do list for congress as well to get through the next fed chair on the senate side. guy: amh in bc thank you -- in d.c. imminent. we will see what that means. in rate will be the first to -- annamrie will be the first to tell us, i am sure. maybe we'll get a fed decision. bloomberg's new economy forum will be talking about this. we have some great guests lined up. fed president mary daly, esther
george, raphael bostic all speaking today. alix: that will be quite a busy 12 hours. tomorrow we get more stuff. u.s. retail earnings, target, tjx, nvidia, october housing starts in u.k. and eurozone cpi. how hot can it go and help transitory will it be defined. coming up, libby cantrill, pimco head of public policy will be joining "balance of power" with david westin on television and radio. guy and i are also headed to radio. guy: the cable is coming up. that is where we are going. this is bloomberg. ♪
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westin. david: from bloomberg's world headquarters in new york to our tv and radio audiences worldwide, welcome to "balance of power." president biden has the infrastructure bill signed into law and his first summit with president xi behind him. what is next? we turn to, the host of sound on on bloomberg radio. i can see air force one fueling up. i guess that is part of what president biden has on his agenda. joe: he is back to his role as traveling salesman after the meeting last night with president xi failed to provide any real breakthroughs, any heart deliverables as we forecast this time yesterday. the lack of real news around china helps the white house give it back to the narrative about