i'm alix steel, welcome to commodities edge where we focus on the hottest commodities were the smartest voices in the business let's get right to the data. we are looking at the top markets for the week. even these bullish inventory numbers were not good enough to help oil prices. crude inventory did rise, but that was less expected and exports really ramped up. there were some regional dislocations in terms of gasoline inventory but there was a bill stuck in the gulf coast but there was a humongous jump in gasoline demand. and diesel inventories to the lowest of the year. oil still lost some steam and we will get to that. let's get to copper. there are signs that the metal rally has run its course. copper is starting to show that is sagging. here's the difference between one and three months in price. there's been a premium of cash

metal, but this is slipping to a deficit of $28. that's the deepest discount we have seen in nearly a year. that tends to point to weaker demand. if you want to buy copper, why not try aluminum? there was a deficit on strong demand or -- demand and growth. you have supply constraints developing over the next two years. and the blue line is the price. let's get to the ring and talk about oil, why we have seen oil losing steam. particularly around the iran deal. the main issues include the removing of sanctions on the oil and banking sectors have been resolved. joining me now is our guest. is this true?

and if so, what happens now. >> an element of it could be the president talking up the progress of the deal. because he is leaving office soon and he is desperate to get the nuclear deal stalled before he leaves office. this is a big part of his legacy and he wants a victory like this so that his moderate allies will do well in his -- and their presidential election. but at the same time, we have diplomats also sounding broadly rather positive. they are exercising the fact that there are issues that remain. they still need to discuss and come to an agreement over these different issues. but they all seem to be moving from a very similar -- as they expect to go back. they have been strongly suggesting that this is the next round of talks going well and it will be the final round and they will reach a final agreement to

broker the restoration of that deal between iran and the u.s.. and when that happens there will be more pressure, presumably on the price of oil which opens iran's of supply. alix: i like the analogy, how much oil can come on the market and how quickly can the trillion dollar question -- what are you hearing? >> official say it takes them about three months to get back to that 4 million barrel a day level that they were pumping before sanctions. this is the kind of timeframe we are working with and they are sticking to a similar situation and priming customers. we have been hearing things from officials, and iran and in the market, that they are speaking to all customers and going back to relationships. today we saw some indian

refiners saying that they would definitely purchase iranian oil once again, once the opportunity is open to them and sanctions are lifted. that's where the focus of the market will be over the next couple of months. alix: thank you. time now for commodities and --. today we talked to thomas steely. in the transportation sector, this is responsible for it -- the transportation sector's response over 25% of co2 emissions. decarbonization is going to be tough. ev's can help passenger cars, but trucking, aviation, and shipping have no easy electrification fixes. this is a powertrain company that makes 2.6 with a hybrid compressed national -- natural gas and diesel system that could be installed on most major

commercial vehicles. but the holy grail is the hybrid truck which uses renewable natural gas to power the engine. here's how it works. you pull in natural gas coming you truck debt plug in your truck and wait eight minutes and then it's converted into electricity to power the motor while you are driving. it's like you're a mini power plant. it also uses renewable natural gas, capturing emissions from landfills and putting them into natural gas pipelines. the engines can outperform a diesel truck at 60 miles per hour and up to 35% less expensive than diesel. we sat down with thomas healy to see how fast these trucks can hit the road. >> it coming to the commercial vehicle space. there's no doubt about that. when you speak to fleets they are eager, but they have found that they need a practical solution and building out

hydrogen fueling stations or $30 million for electric recharging is not practical. that's where we pride ourselves in having an easy to adopt and low-cost solution. as we look ahead, this is going to make a lot of sense for short-haul local delivery and range extender solutions with our hyper truck will be a long haul over the road market. we are really at the start of adoption of electric vehicles in the commercial vehicle space. passenger cars have been doing it for a while. commercial vehicles are really just starting and i think over the next five years you will see lots of launches of products and then fleets determining which one is best for their operations. from there, starting to adopt those solution. alix: was the adoption like? you know it's coming. when does it get here?

>> in the u.s. there's a couple million trucks that are registered. and every year there's another 200,000 trucks and in. we will try with low volume, and assuming that the numbers work, they will start adopting that powertrain as their go to solution for the new trucks. and for normal fleets, they will turn their trucks over every four to seven years. for us, if that's a fleet that operates 5000 truck, every year they will be cycling out a thousand of those vehicles and those are the ones we are going after. alix: how much does it cost to make all of this and scale like?

how much can you sell it for? >> our vehicle is about 200 $20,000 in assets that we are selling it for. do they -- doing that in conjunction. we are not the whole vehicle maker, we are the powertrain maker. as we go to look at scaling this. one of the things that's unique is that we are taking a capital approach compared to some of the other players in this space. i'm sure you have seen the big announcements of players putting up millions of square-foot factories with a lot of capital-intensive work to be able to scale their business. since we are not developing the entire vehicle, we are supplying that. it does not need that huge factory and from that standpoint, the whole business model is structured in a capital light approach.

alix: when are you going to turn a profit? >> in the next few years. it is still a product that we need to drive volume and scale those up in order to drive the costs down. but we do see that this is a solution that could effectively switch to being profitable and still being able to do it in a way were we can offer it at a low enough cost to the fleet that they are able to reduce how much it cost them to run these vehicles. alix: today highly on has announced a partnership with a company that deals in transportation and logistics. it's time for the commodity kicker. finally the 17 year hibernation is over. trillions of bugs known as brood x have found their way up from the earth soil. the cicadas are already making their way to the backyards of

the midwest to the eastern seaboard. for the next two to four weeks, they will populate and fly around, hoping to avoid becoming a snack. they are expected to be -- leaving humans to have a collective sigh of relief. in the nims babies will sleep deep in the earth for another 17 years. and here's what's on my commodity radar, side from cicadas. the shareholder meeting for exxon will be next wednesday. it will be interesting in the wake of that new report that said that there is no need for investments in the fuel supply and our net zero pathway. that puts the pressure on exxon. so we are looking forward to that. that wraps it up for commodities edge. we are checking in every thursday, this is bloomberg. ♪

>> i am matt miller, welcome to bloomberg markets. here are the top stories we are following him around the world we had this hour we are speaking to the copresident of blue owl capital. the new asset behemoth with $52 billion in a um. we are going to discuss the state of the labor market as well with the cofounder of jobs.com and preview the white house chip shot met -- chip summit. first let's take a look at what's going on in the market.

we do see a rally in the s&p 500, that's at more than 1% after the selloff that we saw across risk assets yesterday. this is 150 nine level here. we are seeing the dollar drop with most of its big trading partners here. this is the level on the bloomberg dollar index. this is as the 10 year yield falls and investors buy bonds, pushing the yield down. and bitcoin is on the rise. we have seen a much stronger -- far over $42,000, it came bouncing back from yesterday's wild swing. but now the irs says they want to know every time you transfer $10,000 or more and bitcoin. that's put some pressure on the gains rate i -- right now. let's get to interview, the merger between towel rock capital and dial capital. the newly combined company, blue

owl capital began trading today under the ticker owl. here to discuss the deal is mark and michael, the copresidents alongside our own wall street correspondent dolly bassett -- cannoli drastic -- walter chris mine. mark, let me ask you, why the combination. both of these were successful stand alone why come together? mark: thank you for having us. we appreciate the opportunity to talk to you on the first morning a blue owl. we came together to deliver your -- deliver a appears solution to two groups come investors seeking attractive returns in the environment we are in today. together we can do that, and creating that one stop shop. this is all of the financing

needs for any alternative manager. whether that's at the gp level or portfolio level or bond of will, we can provide it when we come together. >> i love to take your thoughts on this. you are a major -- in the industry. this is a major deal of your own. what additional consolidation do you think we will see in this industry? >> we see a pipeline as we move forward. the industry needs capital. it's a growing industry. and we saw for the first 20 to 30 years, everything was private. when you saw version 2.0 at blackstone and tkr and other firms, they assess -- access to

the public market. so this was an opportune time for us to go public and become, what we think is version 3.0 in the public market stocks. really based on permanent capital, management fees, and giving our shareholders an opportunity to have a stable and growing company that they can invest in. matt: i wonder what you think about the future of finance. when i was a kid, hedge funds were getting started in high school and college. i thought the seas were cool and private equity, my smartest friends ended up going there. i don't know why i missed the boat. but you are doing things in a new way. and some are saying that the hedge fund is dead.

what do you think about that? what's the future of finance? marc: i think this is an important part of the economic engine in this country. we are happy to be a part of what we think is ultimately a growing sector. we provide attractive returns to investors and that's not an easy thing to find. if you look over the last several decades, alternatives have outperformed their public and liquid peers significantly. that's mostly been available to institutions. and now with our product, as a blue hours -- blue owl shareholder, we can provide that same thing and democratize that access. >> speaking of the future of finance, you have seen a lot of firm silverlight -- and really grow up in the prep -- the private credit industry as well. what's the next hotspot in

finance? what firms are you investing in, venture capital or otherwise that could be the next forefront? micahel: we certainly see the pendulum swinging towards the growth and venture space. with the last 12 months has taught us is that there's often a software or technology solution that can really change and improve our lives. the fact that we were all able to maintain a very efficient and productive last year through the face of the pandemic really highlights how valuable technology and software are to all of us. we at blue owl are focused on helping the best investors in the best portfolio companies get the capital they need for growth . even with the tremendous success of many large tech software companies, this is still in under allocated space for investors. when we travel to asia and europe and here talking to

pension funds, they seem to think they want more allocations , more vc and early-stage growth . and we can provide that. sonali: the last one goes to marc, you are competing with the major behemoths. how do you compete? how are you different? marc: they are wonderful firms. but we come at this really different. our focus, we are entirely about finding the capital solution. this is a powerful place to be, you saw couple weeks ago we had the financing here in the united states and we are able to deliver certainty and speed and creativity. that is something that carries us forward. i also think the industry itself will grow. at the end of the day by having eminent capital -- by having

permanent capital we can grow. that's the opportunity for blue owl and our shareholders. matt: we appreciate you guys taking time to talk to us about the future of finance. our blue owl copresidents, this is their first day of trading today, and the ticker is owl. and really this show is about me writing sonali's coattails in the financial world. so thank you for bringing us this exciting interview. this is bloomberg markets, i'm matt miller. we are going to continue to cover all of the market action. we have a rally on cap today, and even bitcoin is bouncing back. this is bloomberg. ♪

♪ matt: this is bloomberg markets. i am matt miller. it's time for our stock of the hour. for that we bring in dave wilson. ralph lauren reported a surprise profit today, sales are driving the shares to the worst trading day in a year. i have to say, this brand has accompanied me throughout my life. i don't know if it's ralph lauren or ralph lauren. dave: ralph lauren. like ken. ralph lauren. and one of the retailers that we have heard from this week, like so many of them, if you look at the quarterly results, you think great. the company had an unexpected profit. but here's the story, it's all

about the retail business which accounts for most of the revenue. and sales in stores have not been open for more than year which were down. you see a decline in you can really see where it came from, europe. so many of their stores closed as a result of the pandemic. so the sales are down 45% in the region and are largely responsible for the decline. and you can see how the pattern has developed over time in terms of those sales. beyond that, if you look at the numbers you would say things were ok. but it's been a tough story for ralph lauren and for a lot of companies and retail because so much is expected of them going into these results. they have the benefits of all of the money that has been distributed to people across the coronavirus pandemic. it's been -- clearly it's not

just ralph lauren's story. it's not perceived that way. matt: clearly it's a problem that the entire industry is dealing with. i will tell you, in berlin people pride themselves -- the term is poor but sexy. there's no consumer spending. ralph lauren has no standalone store in the german capital. dave wilson, covering our stuff of the day. coming up, james gorman is eyeing his successor. this is the story we are focusing on. the later -- the shakeup at morgan stanley. this is bloomberg. stanley. this is bloomb♪

>> i am a mark crumpton. the u.s. job market continues to thaw as more americans get

vaccinated and returned offices. these economic green shoots are gleaned from the weekly jobless claims report. last year there -- last week, applications for jobless claims report fell to a low. still, the claims levels remain elevated in comparison to pre-pandemic levels. dr. fauci says the odds that covid-19 will surge in the united states are low but that it is up to the american people. >> we don't want to declare victory prematurely, but if we can get 70% of adults vaccinated with at least one dose by the fourth of july the where the president has set the goals, i think the chances of there being a surge or a rebound is extremely low.

it's the reason we want to continue to keep people vaccinated. >> dr. fauci expects all americans to vaccinated by 2022. here in manhattan, a billionaires million-dollar island opens tomorrow. is a platform of grass, trees, and winding pathways mounted on concrete piles where p 54 used to be. throughout the summer, the little island will host various concerts and festivals. mr. dillard picked up most of the cost through his family foundation. global news, 24 hours a day on air, on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i am a mark crumpton. this is bloomberg.

♪ amanda: welcome to bloomberg: markets. matt: we welcome our audiences each day at this hour. here are the top stories we are following around the world. leadership shakeup at morgan stanley. the bank announces the biggest leadership change in more than a decade as ceo james gorman eyes his successor. plus, u.s. jobless claims fall to a pandemic low. we will discuss the health of the labor market and while that and why hiring formerly incarcerated jobseekers is better for the bottom line. and we preview what we expect to learn from the white house summit on the semi conductor shortage which has roiled supply chains around the world. amanda: the semi's are not roiled today.

they are one of the groups leading us higher today on the s&p 500. we are watching a general risk on spirit out there. energy is the laggard and you are certainly seeing some big moves and big names. the leaders of the market are in play but names like nvidia are seeing that at last check. in toronto, we are watching the market heading towards what looks like a fresh record close. the other side of the ledger is commodities. we are seeing some jitters that some measures are talking about tapering. we are seeing a selloff there. the commodities boom is still at pretty elevated levels. for what it is worth, you mentioned a big shakeup coming. the understanding is that you are at least three years away from james gorman leaving morgan

stanley . there are four successors possibly teed up, and i tell you what, stand and squint at these four white guys and you have a hard time telling them apart each seems like a strong enough your to take over. matt: i can't even believe they are allowed to just choose white guys. it's a shock to stockton not so often percent because it just seems like a faux pas in today's environment. amanda: jokes aside, they have elevated their chief investment officer, it says their pipeline is not strong because you are absently right, the board and management would have said it is great to have diversity here. they must not have it near the top, which is often the problem.

this does get us to the problem across the financial services firm, which is kind of a pipeline management problem. >> it is interesting we raise this issue aired morgan stanley could argue it is a moment in time snapshot. before diversity was a buzz word , -- was a rising star who went to join google. zoe cruz was also at the bank and unfortunately had to take the fall during the final crisis. so they have had women in senior leadership roles but when you look out to the future and a post james gorman era, you are looking at for men who are vying for that title -- looking at four men who are vying for that title. it does not look like they will follow citigroup, where james

frazier broke through the quote unquote glass ceiling to become the first woman to lead a u.s. major bank. matt: in the case of jp morgan which you were talking about yesterday, we don't know if jamie dimon is ever going to leave. he is going to leave five years from whatever today is. is it possible james gorman is actually going to go in three years? >> when you look at where morgan stanley is today and from where james gorman took morgan stanley , from the financial crisis and the vicious infighting, it is a much changed bank. the best-performing u.s. major bank stock in the last five years. clearly the going is good and for any leader on top, it is hard to weed yourself away when

it looks like everything is going great but it does seem he is clear about the idea. the question is, if the good times continue whether he changes his mind. matt: thank you so much for joining us on the story. clearly, anchors like to read about bankers. -- bankers like to read about bankers. coming up, we will discuss the state of the labor market below the c-suite. not $10 million a year jobs, but something a little more modest. the importance of giving those in need a second chance and a fair shot, with erin stewart, cofounder of jobs.com. this is bloomberg. ♪

♪ matt:matt: this is bloomberg: markets. today, we learned that u.s. initial jobless claims felt a fresh pandemic low signaling steady improvement in the job market as remaining business restrictions are lifted. it does look like as people get vaccinated, as the economy reopens, as amanda sees service jobs getting filled again, we are seeing jobless claims falling considerably from highs that, at the getting of april, were still above the highest levels that we saw in the great financial crisis. amanda: we have to keep it in context because the jobless claims number still employs a pretty weak market.

we have heard as businesses reopen, there is some difficulty in getting employers back as aid is still in places. there could be some messiness as we go forward, but we can read this book. do you want to stay bullish, do you want to stay bearish like the fed? matt: fits and starts, like president obama used to say. for more on the labor market, we are joined by aaron stewart, cofounder of jobs.com to talk about what kind of job openings are out there for normal people, not the next ceo of morgan stanley, and how well they are being fulfilled. when we talked employers, they say it is really difficult to get those positions filled. is that what you are seeing as well? >> absolutely.

it is the hourly worker roles specifically in cost -- in hospitality that is really difficult. this is treated by the fact that this amount of sitting with checks that are going out there for financial leads of the labor force. there is not necessarily so much of a motivation to return to work at the moment. because of that graphic may be difficult for companies that are reopening to find tout that they need to function. amanda: jobs.com uses blockchain technology and i know that you are a proponent in using that technology to increase diversity. i wanted to focus on one piece of that, which are people with criminal records who can often have a hard time finding jobs. how does your service make it

easier or different to get around that kind of bias? >> it is actually more of an education piece for our clients and companies out there. the u.s. economy needs this labor force. these individuals have a more difficult time putting them selves into the employment market, which in reality should not be the case. these days, the individuals have already paid a price and should not continue to pay a price after your death after -- pay price after, to be a contributing never to society, and to give them the possibility of career with reentry. it's a way of increasing diversity but there is also just a major education piece.

there is a big supply out there that would love to work that struggled to get working because of previous things that happened in the past. matt: the thing is, a lot of people in america have been to jail. in other countries, it would be shocking to know how many americans have been incarcerated , and some for crimes like selling weed, which is legal in most states now. so what are employer reactions when you come to that and what do you tell them to give them a better picture of who they could hire? >> exactly as you just said, many of the crimes and most of the reasons people have been incarcerated in the u.s. are crimes that really are not particularly that. -- bad. maybe in the sense of selling candidates or being in possession of cannabis, which is

now more commonly accepted amongst the united states. but looking at their record, they have this stint into -- stigma against it. businesses are much more open-minded now. they realize that with the increased challenges of growth and the need for labor, they have to try and look beyond their previous stints. we have to embrace and celebrate the fact that, as you can see, lots of people have done things wrong. we all do things wrong in our lives. these individuals are trying to be productive members of society and we should be reporting that -- supporting that. amanda: it is great to have you with us. an important subject. you have some pretty powerful backers on the scene, including jamie dimon.

all the chips are on the table at the white house chips summit. the semi conductor shortage continues. what can be done about it? we explore, next.

amanda: this is bloomberg: markets. as the semi conductor shortage continues to rage, from everything to industry and consumer products, the white house will now weigh in on a chips summit. what can they do to address the problems? who better to ask than emily chang? what should the white house be doing to try to address this shortage? >> we are waiting for that ship summit to get underway and the first session to start a half hour from now. this is being led by commerce gina raimondo. biden did meet with all of these companies last month and the

real issue is there is no short-term or quickfix to this problem. it takes three months to build a chip it takes two years to build a chip factory but all of these companies need these chips now. the focus is what can they alleviate or help in the short-term term and really what can they do in the long-term to build a manufacturing and are entity capabilities to cultivate top talent here in the united states, so that this country is not facing this problem again? matt: when i think of that ship industry -- of the chip industry , i think of andy grove and the revolution that happened where you are, but before you were born. back then, we produced all of these super high-tech chips, the most complex products humans

have ever built in california. now they are all made in taiwan or china or somewhere in asia. is that going to be reversed. are those high-tech manufacturing processes going to be brought back to the u.s.? >> you are absolutely right. a large portion of manufacturing is happening in taiwan. taiwan semi conductor makes these chips for companies ranging from apple to amazon. however, chipmakers will tell you there is a good foundation here but we need to make sure we are maintaining leadership. increasingly what we are seeing our legacy companies like intel kind of falling behind. that's why you are seeing intel doubling down. they are startdry business so they will make chips for other companies. there is this question of whether competitors like apple, amazon or qualcomm want intel to make their chips. i spoke to the ceo of qualcomm

and he said absolutely they want intel to be producing their chips. this is a very long-term shift that has to happen within the industry. we are talking $20 billion that intel is investing and then there are companies like amd which are designing increasingly high performance chips. at the same time, you have the apples, googles, and amazons of the world making their own. if they think they can make them faster, that is what they will do. matt: thank you for joining us. emily chang, anchor of bloomberg technology talking to us about what we can expect from this white house ship summit. you can watch emily's show for all the details as well.

what do you expect from the white house and what do you expect the white house manufacturing industry to do in order to get this kind of production back on u.s. soil and not have to worry about bottleneck problems? >> the problem is not semi conductors, is also all of the support industries and processes after it. the whole supply chain or supply web, if you want to be specific, and that is pretty much mostly in southeast asia. it is in taiwan, in southeast asia, philippines, japan and china. a lot of it unfortunately is in china. we don't have as much anymore it's all gone intel does have some high-end advanced processes. so does ibm, but that is really it. we don't have as many of the

support industries around it. ksm c said something that was really disturbing to me. they said they are uncomfortable making a three millimeter fab here because they don't have enough educated scientists and engineers able to do that in the u.s.. that is our problem. we have to fix it. amanda: for somebody like you who is thinking about long-term investment, some of this feels a little knee-jerk to me. we know the pandemic credit this problem, it did not happen for any other reasons, and we are seeing a real reversal on decades of thinking about outsourcing and specialization. well this trend stop suddenly or is it a real shift in how we think about profit margins, which will narrow if you bring manufacturing back to high cost america? >> it's a tough question, but i

think few companies will move away from the outsourcing model i think that will continue and has worked very well. what we are really seeing is a snafu in the supply chain because you have this renewed demand from last year being piled into this year. you have not had any new capacity being made and we are seeing people decibel he try to add new capacity this year. when people say i see a lot of inflation, we are seeing pricing increases and leadtime increasing because our supply chains are overstressed right now, but that will correct itself 18 months from now, maybe a little sooner and later. but we think pricing and lead times are going to come down. in the meantime, what do you do about it? separately, the u.s. and europe need more laconic manufacturing within their soil, that is for a

lot of different reasons, but strategically, militarily, economically, i think that makes more sense. what we are hoping to hear from the white house as they will allocate money from the infrastructure bill to actually build a semi conductor supply chain here in the u.s.. the numbers i have heard our 60 billion and that only gets you a very small piece of the overall market. we are thinking it should really be more like 300 billion. matt: absolutely. tsmc is putting in 300 billion, that's nothing to them. i'm matt miller. this is bloomberg.

> the most crucial moments in the trading day. this is bloomberg: markets, the close.

with caroline hyde, romaine bostick, and taylor riggs. carolina: live from bloomberg european headquarters, this is bloomberg markets. we have some breaking news coming from the federal reserve. a coin being discussed. they plan to publish a report on digital currencies, a view of the possibility of issuing a u.s. century bank digital currency, and indeed involving the most that the fast evolving technology of digital payments. let's get michael mckee. what do you make of the report? >> it is interesting timing because the fed has been looking at this for quite some time.