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tv   Bloomberg Markets European Close  Bloomberg  November 26, 2021 11:00am-12:01pm EST

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starts right now. >> the countdown is on in europe . this is "bloomberg markets: european close," with guy johnson and alix steel. ♪ guy: 30 minutes to go. what do you need to know? equities down hard, and down on really big volume. that is certainly something to pay attention to. we are led lower by the stoxx 600 travel and leisure sector, down by 8%. some of the more heavyweight sectors like banking and energy also seeing significant losses today. why is energy down as much? take a look at brent, now down by eight nearly 11% on the price of crude. it was only the other day that
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the president of the united states was trying to knock the price lower by the spr release. we get opec next week. we will talk about that. where we are certainly seeing a bid is in the bond market right now. we are pricing when we are going to see rate hikes not only from the fed, but also from the bank of england. the expectation was that we were going to get a december hike from the bank of england. maybe that now gets pushed out until february. 29 minutes to go. it has been an ugly day for european equities. kailey: it has been an ugly day for u.s. equities, too. thank god thanksgiving it was yesterday because traders would not have too much to be feeling thankful for. the russell 2000 down 4.4%. the small caps having their worst day since all the way back in june of 2020. it is also the worst day since june of last year for the energy complex. the s&p 500 energy sector down nearly 6% as we see that move lower in crude prices. you are seeing a massive bid
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into safe haven treasuries. the 10 year yield coming in 14 basis points, sub 1.50%. bitcoin is getting more and more correlated to other risk assets. it is no longer serving as any kind of hedge that it may have early in the pandemic. but going down the better part of 8%, trading right around $54,000. guy: let's talk about what is going on when it comes to covid. we had delta. it has been brutal. now we have this new variant that has entered europe with one confirmed case in belgium. that person traveling in from egypt. the european commission president ursula von der leyen saying now is the time to respond. >> the european commission has today proposed member states to activate the emergency brake on travel from countries in southern africa and other countries affected to limit the spread of the new variant.
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all air travel to these countries should be suspended. i have spoken about the situation today with scientists and vaccine manufacturers. they fully support such precautionary measures. guy: that was ursula von der leyen and speaking a little earlier on. we are joined by sam fazeli of bloomberg intelligence and scott rudin stein, eurasia group senior public advisor. scott, let me start with you. has the horse bolted? are we trying to close the stable door after it affairs -- after to peers to be disappearing into the distance? this was sequenced back at the beginning of november. are we dealing with local spread? scott: travel restrictions can be effective if they are implement it early. the later they are committed, the less effective. it is hard to say right now.
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i think if this variant is already circulating in the variant is able to outcompete the delta variant, then travel restrictions at best are able to delay, but not stop global spread. we have already seen it in hong kong, israel, belgium, and addition to africa, so we are going to see more restrictions. for now, i think the restrictions focus on sub-saharan africa, but when you get another case somewhere else, you will have more proactive countries putting restrictions in place. i also think it is worth mentioning that south africa is really a global leader in genomic sequencing, so it is not entirely surprising that is first detected here. that could be good news or bad news. it could be that we found it early and we can build up a response, or it could mean that it is spreading throughout africa for a while and has only
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now just picked up because south africa is doing so much more sequencing than most other african countries. kailey: we were just speaking to the covid-19 envoy for the dub you ho, saying they will be searching for answers over the next few weeks and should have more of an idea of its transmissible it. what is the number one most critical piece of information that needs to be gleaned? sam: i think there's lots of number ones. can i say that? [laughter] kailey: they can be tied. sam: i think we need to make sure that it hasn't already spread broadly. there's a lot of genomic sequencing. south africa excels at it. but we also have the u.k. the does really well, denmark is good at it, and i think the rest of the european union is doing it, but infection rates at the rate that they are in austria and germany, etc., i think it would be good to lots of genomic sequencing there to make sure it has not already arrived, which is possible. the next one is, quite quickly, to figure out our people getting
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any different kind of sickness from this. with the delta variant, you got a lot more people with flulike symptoms and less with fever, for example, especially if they are vaccinated. so here we also need to do the same thing, and time will tell us. and then you've got the trans mission story, which we need one -- we need more than one country to get a better rate of whether it is out competing delta or not. guy: we have just had comments from pfizer indicating they are sticking to their 100 day timeline if necessary to reformulate. are we now at the point where we need to reformulate? scott: i think we are going to see reform elation in the coming months, either for delta or for another variant. i think the issue is we are still in a little bit of uncharted territory around what exactly that means.
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the pharmaceutical companies are saying they can do it quickly in a matter of days. they can create a new vaccine and test it. 100 days that pfizer mentioned is one of the estimates out there. but we still don't know exactly what that means, exactly what the hiccups could be along the way, but this will be a really important test for that timeline and for rolling out new vaccines in the event that this or another variant is able to evade the current crop. kailey: we have heard from many public house officials that this is almost an inevitability, given the vaccine in equity that exists throughout the world. you now have booster shots going into the arms of americans and those in other western countries, while you still have large swaths of people in place like africa who remain unvaccinated. does this lead the west to make more robust commitments on that front? scott: i think the decision-making on vaccination strategy is always focused on
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the domestic population first, so shoring up supply for the domestic pop elation always be a priority for the policy makers in the leaders, and that is just the reality of the world we live in. at some point there are investments in manufacturing, and when countries that are manufacturing the vaccine feel like they have enough or that they have sold enough to the countries and have already procured large amounts, then you are going to see countries in africa and elsewhere have access to the vaccine. the covax initiative does help a little bit. it continues to help a little bit. but the dynamics of the supply and demand environment aren't going to change as long as the countries that are at the front of the line for the vaccine are still demanding significant portions of the output. guy: sam, can you help me understand whether that is the case? in terms of what additional
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vaccines have preventative happenings, i have read a lot of pieces to suggest that this may have come from an hiv patient, that the virus has more time inside the body, more opportunities to mutate, and as a result of which, we have seen what we have seen. south africa has a huge number unfortunately of hiv patients. they don't respond well to vaccines. would giving south africa additional vaccines prevent this, or do we need to do something else >> -- do some thing else? sam: i think we should separate the conversation because it doesn't make any difference where the variant came from. we still have to deal with that. families are suffering and people are dying, whether it is a selfish view from our perspective. the reality is that it seems to be, although i have to say there
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is no confirmation of this, that, similar to the beta variant and similar to apparently the delta variant also, it came from a high incubation time in the evolution time but the virus was given and somebody who was immunocompromised. if that is the case, then this is not the same argument, although i guess vaccinating anybody or giving them at least some of the therapeutics that prevent the virus from being able to progress would have helped. the other thing is very important to know is that south africa has already said they have enough vaccine. it is just the limitation that is occult for them. kailey: it is also about treatment, and we heard from merck early today that reported a lower effectiveness of its covid pill. what have you gleaned from the results of merck? could there be any readthrough for pfizer's similar pill?
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sam: i really would like to dig into that a bit more. i would look to see the details which are going to come hopefully on tuesday when the fda holds a meeting with this updated data. it is possible that after interim analysis, the folks who were on the placebo were un-bli nded, therefore given therapies that prevent hospitalizations. we need to see that the rate of hospitalization in the placebo patients after has fallen. so there's a lot to read into this. i think we should hold off until we see the full data, and i don't necessarily expect the same thing to happen with the pfizer drug unless it is exactly that same issue, i.e. placebo patients are offered better therapy given that they know they are on placebos. kailey: we will wait for more data and assessment of this variant. sam fazeli a bloomberg
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intelligence and scott rosenstein of eurasia group, inc. you for your insight. coming up jimmy conway will join us next on a red friday for this equity market. this is bloomberg. ♪ his is bloomberg. ♪
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guy: european stocks have had a lot to think about over the last few weeks. we have been mainly focused on
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what has been going on with inflation. covid has been in the background. we have been increasingly worried about increasing delta case is that we have seen and pleases like austria. that story now has been put on steroids as we look at what is happening with this new variant and figure out what is going on. but isn't -- but even as we have come into november, looking to december, we have seen the pickup and hedging. that certainly has been a factor. people have been looking at their portfolios. they have had a great run this year. but there was still this expectation that we are seeing a significant pickup into year end for equities. hedging demand has increased, but the market generally has been on the front foot. more worry about inflation maybe then covid, but generally after the earnings season, feeling pretty positive. joining us to discuss all of this is jimmy conway, citigroup global markets head of emea equity strategy.
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fairly straightforward question, what do you make of today's price action? jimmy: clearly very messy. i think part of the problem, back in november when we had that extremely dovish fed meeting which was, for many people, a green light. we got real rates now, deeply negative. you started to see huge inflows again into things like the nasdaq. that was based on the fact that we were still debating whether or not the inclusion was transitory, but broadly speaking, growth was fine and covid was behind us. now we have this hard reversal on a day where a lot of people are still out, so i think the problem as well is we haven't got a lot of clarity. so up until the deck expiry a lot of people have been using to hedge, it is going to remain very volatile. so the volatility of making a few here is higher than it would
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have been, and you've only got six weeks left in which to hold the position before you have to restart everything again. so lots of different things. the inflows, being caught off guard, perhaps not paying the subject enough attention, plus the fact that everybody is out. two weeks from now, will we have enough clarity to take a slightly more bullish view? that is hard to say. kailey: is this a case of one day's trading being overdone, or a case of the pricing a factor tightening by the federal reserve, the run-up we have seen , being overdone, and now people are taking an opportunity to unwind some of that? jimmy: i think your point on the tightening, the market has been able to absorb that pretty well. we were very surprised at how little impact some of the disruption in the bond market at the beginning of november had in equities space. i think it is the conflation of all of these things and what is a difficult time of year.
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we have seen the last week lots of people have these ribbing baskets with have performed cried -- these reopening baskets which have performed quite well, but that is not a firm view on how serious any of this will turn out to be. if we are still in a position whereby we've got huge uncertainty over what the economic impact of this is going to be, credit has had an interesting big move. if you look at that basis between high-yield and investment grade, the one thing that has been interesting about the entire pandemic is we haven't had the credit crunch. we haven't had much of a risk. if we have that against a fed that is still deemed by many to be talking about an increase in tapering pace, you just don't see many reasons to step in and own this market without clarity on exactly how bad the variant is going to be. guy: the muscle memory up until
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now is you see a dip, you buy it. that may not happen this time. jimmy: interestingly, research strategy team come when they go through their bar market checklist -- they're bear market checklist and look at i things that would normally worry them, they are still relatively covered will buying the dip. that bakes in the assumption that the world will be able to find a way to manage the variant. guy: but you don't buy the dip monday. we have toyed until we get more clarity. but then you have year end crunches coming in. does the timing of this make it more problematic, just in terms of where we are in the calendar? jimmy: monday could be interesting. monday in itself could be a day of two halves -- day of two halves.
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as many of your commentators have said, the likelihood is it has already gone international, and therefore you are going to see more bad headlines about where it is cropping up. you can see it in the price action intraday in things like vol, which has ground higher. monday, if we see people coming back from holidays and saying i need out, i don't -- i can't afford anymore pnl destruction, you could see that lurch lower again. i think there is a clearing rice for risk, in that the reality is we so have a lot of central bank liquidity, which they can very abruptly decide they are not going to remove, and we have a vaccine. yes, it can be recalibrated, but for me, the biggest thing is what is going to happen credit. the equity space has been over positioned. we have had a flush out. the price action i think will determine when the vol comes down.
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you still need that clarity of what this is going to look like in two weeks. kailey: vol coming down back to where it was? we had been hanging out sub 20 on the vix, now we are out to a 28 handle. can we get materially lower by year-end? jimmy: i seek without something revelatory on the vaccine front -- sorry, on the variant front, which so far the evidence points to it swinging the other way, i thing that is unlikely. we are being told by many of the experts that we've got at least two weeks before we can get data to give us any clarity. one thing i do's and is interesting in the space at the moment is because eve got this spike in volatility, people have been looking and saying i'm going to buy core spreads, take advantage of the spike in vol and use that to positioning case there is a bounce because owning the outright risk is still too
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volatile. guy: can i just go back to the credit story? as you say, you have had a norm or -- a normal credit cycle. the ecb cycle has been wearing about banks' exposure to the more distressed end of the credit market. if we go through a difficult winter, do you think we are finally going to start to see that emerging? how many fallen angels could there be? how many are lining up right now in terms of what we see here and over in the united states, particularly here? jimmy: very good question. it is really going to come down to the largess of the central banks. that is what effectively stopped at the first time around. guy: but it was enormous. jimmy: it was, and is that repeatable? we didn't necessarily have, and a lot of people who have entered the inflation market, have said we've got yet more some of the
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occasion, etc. -- more zombie citation -- more zombification, etc. ultimately, what most people seem to be suggesting we are doing is we are going to bridge to a shorter period of time. so i think that they will take all measures possible to avoid the tail risk and say fine, we appreciate that this new variant has a problem. the issue becomes, from an earnings perspective for the equity market, back to this idea of transitory. we have priced covid as having moved beyond. if we are going to look at annual cycles as having to move back to this defensive mode, that is where it becomes harder for central bank's to justify defending some of those companies that otherwise would have gone under. kailey: jimmy conway of citigroup global markets, think you so much for all your time today. we continue to count you down to the european close. stay with us. this is bloomberg. ♪
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♪ guy: really big volume today. a huge day, a day we weren't expecting come with the news of the latest variant throwing equities out of bed. the ftse 100 down by 3.5%. the dax down by over 4%. the cac 40 is down by nearly 5% coming into the close. we will deal with the details in just a moment. the close is coming up. this is bloomberg. ♪
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guy: wrapping up the friday
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session we thought would be quiet what turned out to be nothing of the sort. europe a sea of red. hard to tell the difference. the ftse is only down 3.5%. the dax down for .2%, the cac 40 down 5% into the close. a brutal day in europe. high-volume as well. plenty of other asset classes are fully out of bed as well. the re-rating of the rates market having a big effect into the banking sector as well. just to give you an idea of what the stoxx 600 looks like today and how we commented today, here is the five-day chart. the gap lower first thing this morning. drifting sideways throughout this week. recently we had a 490 handle on the stoxx 600. a big move down today. we've been watching what is been happening with the variant. we have been watching the delta variant.
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we did not know about this new one. i think it is caught people off guard. we thought this was in the rearview mirror, we thought the delta was manageable, turns out the virus may have other ideas. take a look at what is happening. yes travel and leisure is down aggressively, down 9%. it is the obvious sell on a day like today. it is elsewhere where the real damage is being done. thanks down 7% to -- banks down 7%. the energy sector down 5.9%. heavyweight sectors seeing significant selling today. yes travel and leisure is down but it is tiny compared to other sectors. things like utilities and health care where we are seeing the market gravitating towards. anything associated with travel today, anything associated with
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moving around hospitality, enjoying ourselves, business trips, all of that stuff under pressure. airbus down 11.3%. carnival, which is been the go to stock to see how the market is feeling about this space, carnival down nearly 16% today. iag dedicated to long-haul travel in terms of the basic business model, trading down 14.58%. that is the owner british airways, the owner of aer lingus. we have to call into question whether or not this kind of return from a narrowbody recovery into the united states into europe travel story slowly starting to return for long-haul markets. you wondered whether this latest news will put that on hold. kailey: let's continue this
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conversation on whether the travel industry will put back to a screeching halt. joining us is kate nickel. guy just outlined the market is not taking this news well today. can you give us a clearer sense of the actual impact of south africa and its neighboring countries specifically in the u.k., or is this about something else? kate: first and foremost, it is too early to say what the impact of this will be. what you are seeing is in immediate market reaction to unexpected news that came out very quickly. the african countries who identified this variant responded with transparency and release that information into the market. it has seen an immediate and swift reaction from the u.k. government, closing the border, reinstating quarantine, putting countries on a red list, almost before we have the details of what this variant is and how effective the vaccinations are
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against it. you are seeing that immediate knee-jerk reaction go through the market. a chill going through consumers. it is the long-haul international tourism market just starting to get reemerging that is taking the biggest hit. less of the domestic hospitality businesses opened and trading more freely in the u.k. then parts of europe. guy: the u.k. has enabled to maintain a fairly open and free society. there is an assumption built into that that covid has become manageable, that it will not produce the same bust we have seen in the past, we can figure out a way to learn to live with it. you think that is being called into question today? what does that mean for the services sector? kate: i think the move in the u.k. has been very top lockdowns.
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we had five months this year where hospitality and the leisure market was effectively closed. we had some of the toughest restriction and a gradual manage reopening of that. we have been in the situation where covid has been more manageable. vaccinations are high. the booster programs are high and extending protections to the most vulnerable and increasing protections in the younger age group. that has allowed us to reopen the economy more fully and manage that process as we move from being a pandemic to an endemic. it is too early to say whether this calls into question that strategy in the u.k. the message today in the house of commons is that strategy is the right way forward. you can continue to manage and live with this with those restrictions we have now in place for international travel and tourism, but the domestic hospitality industry can remain open. we do need to call that into
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question until we have more details about this variant. kailey: europe was dealing with the fourth wave of the delta variant. had that not resounded -- had that not resulted in any difference in behavior in spending in the hospitality sector? kate: we had seen a cautious reopening. in the u.k. consumers were more cautious and had been managing -- we saw that over the course of the summer. the u.k. having had those restrictions in place reopened earlier and therefore coming out of those restrictions happened earlier in the summer. we have gone through that fourth wave of covid during august and september and our case numbers, although they are high, are manageable and not translating through in hospitalizations and deaths. the pressure in the u.k. has eased a little bit. what you are seeing is european restrictions lifted later and an
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exit happening later now as delta goes through a population less well vaccinated. it is a much more nuanced situation that it is in parts of europe and other parts of the globe. that is reflected in the markets , whether it is a decline in the u.k. market less significant than it has been in parts of the world. guy: we talked to a number of co's of airlines over the last few days. shy white at virgin atlantic said bigger companies were being much more cautious about putting their people back on the road. you think this will only enhance that caution, and what you think it means for big conferences and things like that? kate: that is undoubtedly right. it is helpful from one perspective that we have not got things going and people are not
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fully back on the road. for international travel and tourism business events, those have long lead times. the caution we see now is reflected in the markets and the analysis you get is there is a cooling effect on our business confidence and consumer confidence pushing back some of those events and activities that might have restarted in the first half of next year, likely to be pushed back to the second half of next year. that has an impact for the u.k. on our major businesses and london in particular, which is more reliant on international and business travel. it will undoubtedly delay the recovery for those businesses, but the fact they were already taking that cautious approach to restart things will stand in the investors stead. guy: prayed to get an update. thank you for your -- great to get an update. we appreciate your analysis when it comes to what is happening with u.k. hospitality. kate nicholls, u.k. hospitality
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ceo. european stocks are done for the day. not much action during the auction. already towards session lows towards the end of today. ftse 100 down 3.5%. the cac 40 down 4.75%. as i say, it has been travel and leisure that has led the drop, but the heavyweight sectors like the energy sector and the banking sector is when the real damage has been done today. guy: we know the energy -- kailey: we know the energy sector move is being led by the nuven oil. if it is a bad day for stocks, it is far worse for crude. we are trading at $68.89 a barrel, below 70 for the first time since september. we will have a closer look at that and the fears around demand and economic growth, next. this is bloomberg. ♪
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ritika: you're looking at a live shot of the principal room. coming up, the overstock ceo at 12:00 and new york, 5:00 in london. this is bloomberg. let's check in on the blue bird first word news. several governments from the u.k. to hong kong bartending restrictions on travel from countries in southern africa after the discovery of a new coronavirus variant earlier this week. here is ursula von der leyen earlier today. >> encourage member states to activate the emergency brake on travel from countries in southern africa and other countries affected to limit the spread of the new variant. all air will travel to these countries should be suspended. i've spoken about the situation today with scientists and vaccine manufacturers. they fully support such
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precautionary measures. ritika: chief medical advisor anthony fauci tell cna an -- tell cnn more data is needed before the u.s. can hope travel from south african countries. the drop comes ahead of a key opec-plus meeting. the group has been under pressure from the u.s. and other consuming nations to tap strategic stockpiles to tame rising energy prices this week. 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. kailey: let's talk more about oil. plunging is a delicate way to put it. wpi down more than 12%. of course, it all comes ahead of opec-plus meeting next week. joining us to discuss is julian
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lee, bloomberg oil strategist. this is the biggest move to the downside for oil since april of 2020, the height of pandemic media. is there technical factors or algorithms that plate, something exaggerating this? julian: it is possible. once you start getting big drops the algorithms again and exaggerate those. the background is many places are taking an extremely cautious view about the emergence of this new variant of the coronavirus. we have seen as the report said, the eu banning flights to southern africa. we have seen the u.k. put southern african countries on their red list, requiring quarantine for arrivals. the u.s. seems to be taking a
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slightly more positive view about this in awaiting more data. this reflects just how concerned people are about a potential resurgence. having the impact on prices we are seeing. guy: does this justify opec's caution? julian: in some sense it does. a great deal will depend on what happens with prices early next week. the opec ministers and their allies our meeting on thursday. any justification or otherwise precaution is very much going to depend on whether this is a blip , whether prices rebound strongly next week, or whether this is a downward correction. we have to bear in mind that even where prices are at the moment, they are still up 40% on the beginning of the year.
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i know that is a lot smaller than the increases we have seen in natural gas and coaal and electricity number predict lee in europe and asia, but there is still no mean increase in oil prices this year. kailey: all of this is happening the same week we saw the u.s. and other countries releasing stockpiles from their strategic petroleum reserves. how could that change the conversation for opec-plus next week given these are happening at the same time? julian: this puts opec in quite a difficult position when they meet next week. this is the column i will write sunday, it will examine the pressures opec is under. on the one hand they were already seeing a softening market in the first quarter of next year and they will be looking at their production plans for january.
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they were already seeing a market that was switching from shortage to glut. clearly if we do get a sustained downward revision to demand because of this new variant, that is going to further undermine the balance and make it even a bigger surplus. add to that the oil out of strategic reserves and you would think the argument for pausing the increases is getting very strong, indeed. there is now political background of a standoff between the u.s. and the saudi's who were at the forefront of the refusal to increase more than planned at the beginning of november. guy: julian lee, thank you very much, indeed. the market taking a beating on this black friday.
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we are going to get an idea of what happens next and talk to someone from spot gamma to get a sense of how the market is set up going into next week. we will do that, next. this is bloomberg. ♪
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guy: from london, i am guy johnson. kailey leinz in new york. this is "the european close" on bloomberg markets. the spot gamma founder joining us to give us his take. what you make of the price action? >> there was a large expiration last friday in that position the market for volatility. any type of headlines, any type of reason to start selling from the foundation was laid for
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selling to start. we think there's a lot of options based influence than the markets and that is exacerbating the selloff. kailey: could we continue to see price action like this at the start of next week? brent: we see a bottom around 4550 in the market. the key is to watch the vix or applied volatility. as the vix goes up that suggests put options are getting more expensive and people are buying puts that means options makers need to sell futures to maintain their hedges. that is the downside scenario for us. it is a drop that shows people covering the put options. guy: how much of this is retail and how sensitive is retail. is retail more sensitive to news on the virus? brent: if you look at brent, there's a lot of churn other the
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-- under the surface. the s&p, which has a big options, next, that is different from a more institutional complex. single stocks have been hit hard into today. i think retail has been stung, the institutional investors are doing a little bit better. they are more index focused or outside of some of the stocks that have been hit hard. you can see the dispersion and the difference between debate index and how that is acting an individual stocks. kailey: it is not just stocks moving largely. you are seeing it across asset classes. we are seeing the biggest move to the downside since april of last year for crude, seeing the biggest basis point move lower in treasury yields, how are those assets affecting what we are seeing in terms of the equity price action? brent: there's a lot of leverage in the market. it does not take a genius to recognize that.
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there are tons of call options trading, there is tons of assets. anytime there is a selloff, you will get expanded volatility. that leverage needs to compress and expand. that exacerbates volatility across all asset classes. when you have news like today's covid variant, you will get that as it moved to one, commodities, stocks, crypto, and the like. guy: crypto is down hard today, which is surprising on one level, but if you paid attention you've seen the correlation with equities. can i draw a line between one of the other with this retail space? brent: crypto shows us the tolerance for risk. would crypto is going hi it is telling you people feel comfortable, they can step out on the risk spectrum and look for extra returns. conversely, crypto will be the first thing that get sold if there's any fear in the market.
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that crypto often times leaves market and that is a leveraged space which pushes leverage into the equity market and now we get extra volatility and things are moving extra fast. kailey: is there anywhere you can find cheap protection? brent: the vix is over 25 today. that is telling us put options are expensive. you can find a decent positioning in there. our view is that around 4550, there is an interim bottom and it is quite possible the volatility may express upside on some type of santa claus rally. we look at it like a slingshot where you have to pull volatility back to get it charged up and that could start a shop or a move up. we think put protection is expensive now and may not pay off that well. guy: what you think happens monday? brent: i think volatility is likely to get sold.
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previous instances of fear in the market have not manifested anything more, that we had 15% drawdown this year. it is likely volatility gets charged up and there's not enough record to push the market forward and not a lot of real selling. that volatility expresses upwards in this case we get a santa claus type rally. guy: really appreciate your time today and your analysis. thank you very much. enjoy the rest of black friday. kailey leinz and i are pre-much done on bloomberg television. at some point kailey leinz does have to go home. kailey: i would like to. guy: i think it seems fair enough. bloomberg is not done. you have a great lineup coming up. jay hatfield come into capital advisories joining next. this is bloomberg. ♪
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>> the most crucial moments in the trading day. this is bloomberg markets -- the close, with caroline hyde, romaine bostick, and taylor riggs. taylor: this is "bloomberg markets -- the close." stocks are -- reacting to fears a new covid variant could hurt the economic recovery ahead of one of the biggest travel weekends of the year in the u.s.. variant fears are leading governments from the you take a hong kong to tighten up restrictions on travel singling -- sending airline stops tumbling. black friday is underway in th

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