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tv   Bloomberg Markets European Close  Bloomberg  December 23, 2021 11:00am-12:00pm EST

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>> the countdown is on in europe. this is "bloomberg markets: european close," with guy johnson and alix steel. ♪ guy: 30 minutes to go until we break for christmas here in europe. we do have a little bit of trading tomorrow morning, but i think a lot of people have made decisions basically to bailout already. the stoxx 600 is up by 1% at the moment. we are up by nearly five points here in europe. travel and leisure is having a really solid day. the market definitely looking through omicron. the news around omicron getting significant leak better versus the beginning of the week. the pound is also bid. we are repricing the bank of england, and there is an omicron factor in all of this. the other story you definitely want to focus on here in europe is the massive drop we have seen
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in gas prices. gas prices have been rocketing higher, now starting to see some lng carriers crossing the north atlantic, bringing some welcome relief. from london, i'm guy johnson, with my cohost in new york today, sonali basak. alix steel has a day off today in preparation for the festivities. welcome to "bloomberg markets." the beginning of the week, the markets falling out of bed. everybody was panicking about fiscal spending in the united states, but that omicron was going to be really severe. the numbers were cracking higher. now we are starting to get some good news. today feels like a much better newsday. sonali: and you don't need to rise too much to get back to that record number for the s&p. we have had that again today. you and i keep an eye on those risks, we are going to talk about what could go wrong. guy: we need to talk about what is likely to be a very bumpy ride in 2022. there are some any forces coming into play.
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let's talk about what is happening in the u.s. here's abigail doolittle. abigail: we do have the s&p 500 higher for a third day in a row, up 0.7% now, near session highs. more than 3% over the last three days, and the s&p 500 on pace for yet another closing hi. this after the sky was falling feeling earlier this week and last week on omicron, but some hope around some treatments. the nested 100 also higher. bonds down, supporting the idea that there's a risk on theme. you have the 10 year yield in that sweet spot of not too high, not too low, right around 1.5%, in contrast to natural gas futures plunging. take a look at gasoline futures, up more than 1%. this has to do with a refinery fire at annex on mobile worth finery in texas, right in time for the holiday. not sure that is good news, but
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stocks at record highs, that certainly is. guy: we did see a fairly big drop in gas prices, natural gas prices come on both sides of the atlantic, so multiple drops on the gas front. let's turn to our question of the day, which was slightly inspired by our next guest. the question, a fairly straightforward one. can central banks tame inflation without causing a recession? will high energy prices cause a recession in 2022? let's get some insight from bilal hafeez, ceo of macro hive. one of my highlights every year around this time of year is your grey swans. you look forward into next year, you look at the non-consensus events which could cause a safe headaches. one of those was are we going to see a recession in 2022, and that certainly got me thinking about the risks we face going into next year. the fed could be hiking three,
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possibly four times. we've got an energy crisis on our hands. those are two pretty strong ingredients for a recession. bilal: absolutely. i think one of the interesting things about the forecast for next year is that nobody is really forecasting a recession in the u.s. at the same time, just recently we've had negative forces in places like the pan and parts of europe, and forecasts for next year for the u.s., most people are expecting a loss of growth momentum. but if you step, what you typically find is that when ever the fed does raise rates and whenever oil prices double, typically that does not lead to a recession, so it is surprising that no one is calling for recession next year when we have lots of ingredients in place. sonali: i want to push back here because i think it is wall street's job and so many ways to be optimistic, but why is it that nobody is actually believing a recession could happen this year? bilal: i think one reason is
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that this year, growth was fairly strong, so people tend to just forecast by using recent growth momentum. the labor market in the u.s. seems quite strong, so people are expecting that to continue into next year. there has also been a general view that the fiscal side of the picture for the u.s. will be quite supportive. recently we have seen that picture start to turn. those are some of the reasons i think that people are fairly optimistic about next year, which i think is a bit misplaced. guy: is the risk higher in europe? the rate risk may be isn't there in the same way it is in the united states. we were talking to francis go blanche of bank of america a little earlier on. he said if actively europe is already in an industrial recession. bilal: i think absolutely, europe and many ways has more problems than the u.s. does. on the energy side, it has not only suffered from higher oil prices, but higher natural gas prices, notwithstanding today's
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declines in net gas prices. on top of that, if you look across the euro zone, germany has done relatively well, but other parts of europe are doing less well. on top of that, europe is also a bit more sensitive to chinese growth, and china has been much weaker over the past 12 months or so, so it doesn't get support from that side. the final thing to note is that europe has reacted much more strongly to covid than the u.s. or indeed the u.k. by introducing restrictions, which is again another factor that could see slower growth in the euro zone, possibly even recession. sonali: i am wondering what really pushes the story over the edge here. is there need to be an exogenous event like another wave of covid or geopolitical tension that pushes us to the edge? bilal: i think certainly something like a continued increase in oil prices would help push things over the edge. what could cause that could be
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confrontations with russia, a supplier for energy in general. the covid side isaac is less clear because at least on the u.s. side, the u.s. is not pressing any restrictions around covid. however, and china, that could have a knock on effect on the u.s., so if china does was bond more strongly to covid, that could be the knock on effect. so i would think higher oil could be a factor. the other side i think could be the fiscal story in the u.s. those effects could suddenly reveal that the u.s. underlying demand may not be a strong. guy: we talk about today being a good news day. data has just hit the bloomberg terminal which may be stands against that. the u.k. reporting nearly 120,000 more covid cases on december 23. that is a pickup from just over 100,000 yesterday. the numbers are blistering in terms of the rate of change we are seeing here in the u.k.. what kind of arc do you think we
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are on when it comes to a micron and how quickly we could get through it? bilal: all of the estimates suggest we could see a peak in january in the u.k., so the big challenge has been how serious and how virulent this is. will it lead to more hospitalizations? will people need to stay for a week or so, or just one or two days? most worryingly, will it lead to higher death rates? so far, the news on all of those fronts is fairly positive, so at this stage it does not look like we can at the prospect of a collapse in the health system. that said, one thing that is hard to forecast is the isolation effect. so if people do have covid, they have to isolate. if health workers have to isolate, that will put a massive strain on the system in january, which could lead to additional restrictions. but at this stage, i think the real view is probably more on
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the alstom is excited than the pessimistic side. sonali: there's another risk i really enjoy that you brought up, and it is that the real rates armageddon is coming with higher inflation and lower growth. how are investors left unprotected? bilal: especially long-term investors, implicitly they need real rates to be positive and high in order for them to deliver the returns that are expected for pensioners. the problems now are real rates are very negative and likely to remain low for a long time. suddenly that leads to this problem where convention funds fill the gap left by negative real rates. does that mean they start to increase their risk by piling into private equity and other types of markets like that, or does it mean that they need to suddenly ask workers to increase their pension contributions? already in places like the u.k., you are stringency demand for people -- you are starting to see where there are demands for
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people to bit more into pensions, people are going on strike. this could be a big source of tensions over the next 12 months if people are forced to have to make more pension contributions because real rates are so low. guy: right stuff, as ever. thank you very much, indeed. always interesting. that was just a taste because bilal is going to join me on bloomberg radio later on to work in some of those grey swans on the cable. that is going to happen here in london at 5:00 p.m. you will also be able to catch us on your bloomberg terminal, and we have the podcast on spotify and apple. sonali: coming up next, why household energy prices are lightly to stay hot for a while. we will talk to the bank of ireland's head of inflation trading. this is bloomberg. ♪
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♪ ritika: let's check in on the bloomberg first word news. merck's covid-19 pill has been cleared by u.s. regulators, giving patients another at home treatment option. it comes on the heels of pfizer's competing pill that was approved yesterday. together, the treatments provide a way to prevent strain
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at u.s. hospitals. the eu chief negotiator tweeted today that it is important to "pick up the pace on key outstanding issues." the u.s. exited the packed in 2018 and reimposed sections on iran, which in response, started to sniffing lily expand its nuclear program. german health officials say they expect a surgeon coronavirus cases around new year's, and the country is warning people will likely need a fourth vaccine shot to maintain their best immune response against covid-19. the government is urging germans to limit their contact over the holiday period. around 35% have had boosters. global news 24 hours a day, on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i ritika gupta. this is bloomberg. sonali: thank you so much. we are getting back to our core question, whether central banks can tame inflation without
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causing a recession per your we have the perfect person to talk about this after growing up in istanbul. bank of ireland's global markets head of inflation trading, semin soher power, is here. do you have faith in central banks when it comes to being able to curb inflation without taking us off this trajectory? semin: thanks for having me. yes, we still believe that market expectations for next year in terms of risk asset pricing and growth outlook is very positive because they are feeling pretty come people that growth will be above trend still, and there are enough savings to support consumers. at the same time, there are some downside risks as well. looking at the news we got with joe manchin not supporting the build back better plan and with some previous fiscal support
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measures about to expire next year as well, we are expecting contributions to u.s. growth to be negative next year, and also now, central banks are changing their reaction function, prioritizing off-site inflation risk over fiscal downside growth risks which might come from omicron. what we got was a super hawkish view from fed. not only are they stopping new qe purchases in march, they also will deliver three rate hikes next year, and what we heard from governor waller last friday was that they are looking to deliver to rate hikes, so that can also happen in 2022. that would be a lot for the markets to digest. guy: so it looks like we are
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going to have a really bumpy year. just in terms of where you expect inflation to go next year, market pricing looks really relaxed at the moment. market pricing basically is signaling we are going to go back to around 2% in terms of u.s. inflation. do you believe market pricing at the moment? semin: even fed dropped the word transitory, so the markets and central banks are aware that inflation prints are much more world base right now rather than just being focused on energy prices or reopening related components. so we believe it is very likely that inflation will move above 7% in the first quarter, and there are some upside risks for european inflation, like what has been happening in the natural gas markets. the market was already very
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tight, and we saw a number of prints of nuclear reactors taken off the grid, we have seen a price spike, so there's also the near-term upside risk for inflation in europe, but looking out into the more medium-term, yes, we are expecting some supply chain related pressures. delivery times are already shortening, and the countries in on the headline from energy will be lower. currently, when we are looking at the base effects, we are comparing to 2020 prints. there was a short period where prices were actually negative, so looking at where they are now, that base effect this year was superstrong. looking into next year in 2022, we are going to be comparing prices with 2021 prices, so the
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starting point will be much higher, and the base effect will be not as much for headline inflation. at the same time, we do not expect to move back to prepend them at low inflation either. there is pent-up demand for services, especially travel. that is going to continue, and wages are picking up. we are already seeing on the limit levels next year -- seeing unemployment levels lower next year, so if those issues become more structural, we could see even higher pressures impacting inflation. sonali: i am wondering also,
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there is a nonzero chance of stagflation in the minds of many analysts and investors now. how do you view the risk? semin: especially looking at what the market is pricing in in europe pre-pandemic, after the global financial crisis, you are seeing coordinated fiscal and monetary policy. we were seeing austerity measures and central bank for the only game in town, so looking at this to regional inflation risks, more focus on inflation pricing on the downside. looking at what is happening after the pandemic, looking at how fiscal policy measures have shifted that distribution, now the market is very much focused on the upside risk on inflation.
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so at the same time, there is more uncertainty on the growth side, and the private sector will need to continue without the public support. guy: we are going to leave it there. have a very merry christmas. thank you for joining us. we look forward to seeing you next year. it is going to be a big year for inflation. that is the bank of ireland global head of inflation trading. thank you very much, indeed. this is bloomberg. ♪
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♪ ritika: it is time for the bloomberg business flash. exxon mobil says the fire at a facility in texas, the fourth largest refinery in the united states has been extinguished. the fire broke out at about 1:00 a.m. local time. exxon mobil says air quality
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monitoring at the site has shown no adverse impact so far. shares of crocs fell after a deal to a gry -- after a deal to buy shoe brand heydude. it will operate as a standalone division that makes lightweight casuals shoes and sandals for men and women. airlines faced an uncertain week during traditionally one of the busiest periods of the year. airline stocks rallied today following reports that omicron is likely not as severe as previous variants. countries across europe are bringing back travel restrictions and even lockdowns. that is your latest business flash. sonali: thank you so much. guy, are you willing to get back on a plane again? guy: pretty much. i have to say, you would want to be masked up. you want to take precautions. you want to be protected. good masks probably a fairly
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good idea at this point. but airplanes have medical grade air filtration on them, so when some ways, they are quite safe places to be relative to other gatherings. but i would certainly want to be making sure that i was careful if i was getting on a plane. i know a lot of people are. they're going to be heading down to florida. here in europe, travel is probably much more restricted. it will be interesting to see the two different models on either side of the atlantic and how they develop after chris missed. but the numbers here in the u.k. at the moment are absolutely i watering. one under 20,000 cases, that is a big number. that is a pandemic high-end terms of the numbers. so the advice certainly seems to be from the authorities, don't travel if you don't have to. sonali: businesses are certainly asking their staff to stay put as much is possible to keep business as normal. guy: i think the trajectory we are on is fascinating. you look at some of the headlines out of the u.k. today.
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we started the show talking about the positive news. it is a storm, not a hurricane. but less people are ending up in hospital. the curve is much higher, and the amplitude is just that much bigger. so it is going to be, are we going to come back down as hard? that is the bit i don't know. sonali: even with higher cases, less deaths, so let's get through this next phase of the pandemic. guy: and hopefully more testing in the united states will help as well. payment -- a molecular epidemiologist, we will get her take. she's actually a real epidemiologist. we will talk to her later. the close is next. this is bloomberg. ♪
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guy: in the words of elon musk,
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we are nearly there. european equity markets having a fairly solid session. we are not quite at record highs. the s&p is tracking towards that. nevertheless, a positive session considering where we started the week. the ftse up .5%. the dax outperforming, up 1%. let's show you the session. it is like volume. the signal a little bit low. we have been right to left, left and right throughout the day. a little bit of a gap in moving throughout the day ever higher. finishing up 1% on the stoxx 600. 483. we had been in the 400 90's. not there in terms of records. this is the picture. every single sector is in positive territory. where are we seeing the real gains? when it comes to weight, the
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banks are doing a lot of heavy lifting. we are also seeing good news from the travel and leisure sector, which has been in outperformer this week. it is a mix. it is travel doing well and leisure doing well. we are up 1.61% there. it is a more defensive mix in the bottom of the market. this they risk obsession. -- this is a risk on session. the more defensive end of the market underperforming on the session. a quick look at where we go in the individual stocks. reporting earlier lufthansa is going to be reducing its winter schedule. the expectation is we get through omicron quickly. we have the tools to do that. the numbers are high at the moment. we will talk about that. they will fade, as a result of which the summer season could look good. the travel and leisure sector
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has been badly beaten up. lufthansa up 1.6%. iag has had a good day. ryanair has had a good day today, despite the fact they is a near-term pressure, the expectation is summer looks good. you also have flutter entertainment doing fairly well. travel and leisure. up to .39%. it is buying -- up to .39%. -- up 2.39%. they are buying one of their rivals in italy. they are buying that drew the private equity business. flutter up on the back of that. astrazeneca share price is not moving much. some of the drugs stocks are not doing that well. astrazeneca flatlined. good news surrounding the oxford astrazeneca vaccine in terms of the third dose and the impact that booster can have, quite good results coming through.
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part of the smorgasbord of good news it seems today around dealing with this vaccine. we have good news on the therapeutics, we have good news on the vaccine front that is helping this market story out. sonali: we will stick with the virus because we want to make some sense of the data. the u.k. is reporting under 120,000 new covid cases and 147 new deaths. italy is reporting a new record daily caseload of over 44,000. m a hot prof -- emma hodcroft joins us now. these are numbers. what do they mean to you? emma: these are examples of how fast omicron is spreading. it is a reminder the real threat is to the hospitalization and our health care system.
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with case numbers like this before the vaccine we would be in good -- in big trouble. the good news is with the vaccine we have some protection. of a lot of people get this at the same time, even if only a small number of those need hospitalization, we risk overwhelming our health care system. guy: how big of a threat is that? the british papers are taking a much more positive view in terms of their concession? the times of london saying it is a storm, not a hurricane. would you agree with that? emma: some of that comes from recent reports that suggest omicron may be less severe than delta. there are a couple of important factors. first, some of this is probably coming from vaccine protection. that means even people getting vaccinated might be getting infected with omicron. unvaccinated people may be at
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serious risk. as i said, even if it is milder, even if you are people go to the hospital as a percentage, if hundreds of thousands of people get this at the same time and a lot of health care workers are out because they have omicron, we could come to a point where we cannot give everyone they care they need. that is before we consider normal emergency care in routine procedures having to be delayed once again. at this point it is about flattening that curve so we do not end up with more people needing care that we can care for. sonali: what does this mean for january when more people start to return to their offices? emma: this is something it is important for governments to keep in mind. at the moment, many places, especially in europe, introduced restrictions. christmas and the holiday period is a strange time. we meet up with family and a few friends but a lot of people will be careful.
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they might spread things to some relatives but it might also be contained in that circle. that may change in january. some countries have work from home, others will not. it is those more normal routines, the interactions in the workplace, those are the bigger full for transmission. countries need to remember even if we see a delay or a plateau in cases, we need to be careful that as people go back to the office, we could see an uptick in cases again. guy: do we know how many of the people that are currently in hospital have omicron and how many have delta? i am wondering if once we get through omicron delta comes back. the curve looks different, the omicron curve looks deep. delta has been something that has been around for a lot longer. the curve looks flatter but
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potentially more dangerous. does delta come back once omicron has passed? emma: this is an interesting question. we do not yet know what kind of protection that might leave you against delta. certainly we know the vaccines protect you against hospitalizations. one thing that is important to keep in mind is what the german health minister said. he said quite bluntly that after this winter people will be vaccinated, recovered, or dead. that was before omicron but omicron is making a point more starkly because it transmits so quickly that if you are not vaccinated, there is a good chance you will get it. hopefully you will recover not have any severe outcomes, but it will mean when we come out the other end of this we will have a higher level of population level immunity. i highly recommend you get that through a vaccine. for those who have not they might get it through infection.
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i do not think that is the best way to get to this level, but it could leave us better prepared for other variants and even delta in the future. sonali: we only have 30 seconds or so laughed. how worried about you -- or so left. how worried are you about future variants? emma: we need to be prepared. viruses will always continue to mutate. hopefully this is the last big set omicron can come up with, so we do not know if there is another one. overly we can prepare so we are ready if there's another variant in the future and make sure our health care systems will not be overwhelmed. guy: we have your input and your insight. thank you for bringing it to us. we look forward to catching up in the new year. in the meantime, have a very happy christmas. emma hodcroft, thank you ray much.
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european stocks are done. positive session in europe. delivered on light volume, but nevertheless what a difference a few days makes. monday brutal, today much more positive. sonali: coming up next we will talk about putin, who is praising the u.s. response to security as a positive one. we will speak to the control risk group director of global risk. this is bloomberg. ♪
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ritika: this is bloomberg markets. you're looking a live shot of the principal room. coming up, lara rhame at 12:00 in new york and 5:00 in london. this is bloomberg.
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the supreme court says it will hold a special session in just over two weeks to weigh challenges to two bided administration policies. the high court announced it will hear arguments january 7 comes amid rising coronavirus cases and an extraordinarily fast timeline. the court has not been scheduled to hear cases until january 10. former treasury secretary larry summers's warning of a testing period of the u.s. economy with the risk of recession followed by stagnation. in an interview with the bloomberg's economics podcast, larry summers the fed says -- larry summers says the fed has been late to spot the dangers of inflation. during his annual press conference in moscow, vladimir putin expressed concerns about inflation. >> we have 8%, a lot.
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our target is 4%. it is double. the states have it is a factor of three. the federal reserve will have to do something, i think. ritika: vladimir putin is also urging the west to move quickly to diffuse a standoff over ukraine. he says moscow expects next month stops to produce quick results. -- next month's talks to produce quick results. 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. sonali: we will talk a little bit about what vladimir putin had to say during his annual address. take a listen. >> it is not us threatening them. we did not come to the border of the united states or the united kingdom. they came to our house, to our border, now they are saying we want ukraine to be part of us as well. and you want guarantees from us.
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you are owing us guarantees now, without any delay, not in decades. sonali: in addition to the press conference we also had headlines crossing the bloomberg. a senior u.s. official telling bloomberg the u.s. is saying russia must de-escalate to make progress in ukraine tops and they're prepared to meet with russia in early january. joining us is oksana antonenko, control risk group director of global risk. with both of these things put together, i'm wondering what you see as the direction of these conversations? oksana: usually those kind of press conferences from president putin do not generate many headlines. it is mostly for a domestic audience. this year is very different because we are in the midst of the most significant security situation in europe. in this context, everyone is
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listening carefully what president putin has to say about his intentions and his plans vis-a-vis ukraine and european security. we can detect from his language he tried to de-escalate his rhetoric. definitely compared with what we heard from him a couple of days ago at the meeting at the minister of defense, where russia has been threatening a military response if the west and nato and united states do not provide russia with guarantees that ukraine is not going to join nato. from the u.s. perspective, it is not the west, but it is russia generating the situation by amassing more than 100,000 come estimates have included 170,000 troops. president putin also mentioned that the u.s. administration waants ukraine to join nato,
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while in fact president biden has been rather careful in what he was saying about ukraine's membership. during the last nato summit he said the jury is still out and it will take a long time for ukraine to join nato. there is no urgency. russia is really escalating the situation in order to secure negotiations with united states. this is a positive development the biden administration is responding they are ready to sit down and russia with early january to discuss those security guarantees, though it is unlikely we see any breakthroughs. guy: can those talks happen with 100,000 troops on the border? oksana: it is clear the west will do everything they can, both united states and europeans, germany and france, they want this to happen. they believe just topping will help to reduce those tensions. at the moment they are at a
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critical level. the reality is we have not seen any movement on the ground. the troops are still there. the preparations are still taking place. security analysts are estimating russia will be ready for its military operations as soon as the end of january. the situation remains critical. pruden -- putin signals readiness to sit down and talk, so i think the talks will go ahead. it is very difficult to see any breakthroughs because positions are diametrically opposed. russia wants guarantees ukraine will not joint nato but nato says no guarantees our forthcoming. sonali: i'm wondering what the risk of escalation is at this point? oksana: we still assess the risk
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of full-scale russia military offensive in ukraine remains low. however, we know in the past this kind of dynamics can take logic of its own. we see a lot of troops on the border and a lot of concerns that any provocation, we see those incidents on a daily basis , there are violations of the cease-fire happening in ukraine, there's a lot of military activity in the black sea region. any incident can spark this escalation. i do not think we are likely to see deliberate attacks from russia. guy: we may not see a deliberate attack, but i talked -- i thought ian bremmer made an interesting point. he said they do not have to attack. all they have to do is annex a region that gives them the buffer they are looking for. you do not need to put boots on the ground to make that happen. with that be one option vladimir
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putin decides he wants to pursue because it does not pose a risk of exposing his troops to conflict in the sections that could follow from that? oksana: it is important to say russia does have boots in the ground in eastern ukraine. russia denies. the experts continue to insist russia does have troops on the ground. the real strategy for putin is not to an, but divorce the ukrainians to secure a deal with those separatist regions in order to give those regions a veto over ukraine in the future of foreign policy. that is what putin wants. if pruden and access, then -- as long as the region is there and able to influence ukraine and destabilize the situation in ukraine, it is unlikely he will
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annex. sonali: i am curious about your thoughts on the strategic positioning for president biden, especially given the broader strategic alliance that russia and china have. oksana: absolutely. it is very important at this press conference that president putin mentions not only does russia have close relationships with china in strategic and economic sphere, but also in the military sphere. he knows well this is leverage you can apply the administration , which is seeking to reform his attention more from europe and asia, while europe sees russia's actions as a threat in asia, they want to cooperate with russia and they want to make sure there is a constructive dialogue with russia on china if russia does not supply military technology to china as russia is doing at the moment. guy: final question from the.
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europe is experiencing an energy crisis right now. how do you think vladimir putin will play it over the next couple of months? oksana: it is interesting the gas prices have been discussed a lot today. what president putin was saying is russia has nothing to do with the current gas prices in europe does not hold much water because i think most of the experts a great russia is applying a deliberate strategy of pressuring europe, and therefore it is reducing the supply, where it could have supplied substantially higher volume. it is also reducing the level at which it is pumping gas from storage facilities within europe and keeping all this pressure on the european gas markets where we will see a shortage this winter. russia is playing a game but i think it will be counterproductive because russia has secured a lot of attention
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to this issue of manipulating gas prices, manipulating gas supplies for geopolitical ends, therefore it is likely to be delayed. we now hear from a german regulator is unlikely to be certified before summer and therefore it is likely to continue to see a lot of turbulence, particularly this winter and russia will continue to play the gaspard. -- the gas card. guy: have a very merry christmas. thank you so much for your time. oksana antonenko. thank you. this is bloomberg. ♪
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guy: counting down to christmas. the santa rally is on. omicron optimism helping. abigail: we are heading to an
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all-time closing high for the s&p 500, up 3%. up three days in a row. one of the 23-day winning streaks in december. right now risk on on that optimism. a piece of it is banks rising being helped up by guys -- by rising yields. confirming the risk appetite investors have. chips. they gainers are nvidia and applied materials. we also have tesla of 4.4%. the momentum stocks are turning momentum. guy: thank you very much. that wraps things up for us on bloomberg television from sonali and myself. thank you for watching today. i appreciate you joining. coming up, lara rhame will be doing balance of power with david westin. ♪
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>> from the world of politics -- >> there is a likelihood the russians will engage in some form of escalation, but i do not
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think that means invasion into kiev and overthrowing the government. >> to the world of business -- >> i think it will be well into 2022 before the inventory situation, the port situation is fully normalized. >> this is "balance of power" with david westin. david: from bloomberg's world headquarters in new york to our tv and radio audiences worldwide, welcome to "balance of power." we start today with a check on the preholiday markets. joining us is abigail doolittle. going to the end of the year it looks like little wind in our sales. abigail: we have the risk on tone, the beginning of a santa claus rally into the end of the year. the s&p 500 heading to a new all-time high if these gains last.
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