alyx: welcome to commodities edge. we ate -- let's get to the data dig. we are looking at the top market story. oil inventory numbers the refiners ramping up the run in the market is getting tight. this is the december 2021 contact -- contract. and this is a favorite trade for some hedge funds. it looks like the iranian nuclear deal will get pushed back and a summer driving season has started. oil could actually lay a little catch up other commodities. so let's get in. copper prices -- if you take a

look at this orange line, this is manufacturing and the blue line is prices. they usually move enchant -- in tandem. but this white lined his western manufacturing pmi. recently this has really driven prices higher for copper. part of that is recovery, vaccinations, reopening, and decarbonization. that takes us to the third chart. one of the reasons why copper does well is the global poll from decarbonization to the iea had a report out this week that the oil and gas industry is said to boost investments into clean energy to release 4% of their capital standard up from 1% in 2020. so of the 1.9 trillion dollars spend, power generation is going to spend 800 billion globally. and a big chunk goes to

renewable power. more is needed. investments need to be more than trickle. we have the possibility of limiting warming to 1.5 degrees celsius, that's pretty stark. let's get into the ring, cyberattacks versus commodities. the colonial pipeline gets shut down, this week it was the world's largest meat producer. our guest weighed in. >> we saw the colonial pipeline shut down due to a ransomware attack. and we saw the attack against the meat company. we don't quite know the nature but they were required to shut down their operations. that shows the extent to which our food supply, our health system, and are energy is dependent upon cybersecurity. alyx: and it will be a bumpy ride back for those plants

coming back online. lynn is joining me now. what's coming back online really looking like? >> it's good to be here, thank you for having me. it's not normal, i can tell you. what we can gather, plants are not reopening with their digital systems in place. even the most basic of processes are now automated added meat plantar -- are now automated at the meat plan. so tonight sharpening is done by computers. and now workers do everything manually. one person likened it to driving a manual versus an automatic car. that weighs on efficiency and productivity in supply. they will not be able to return to normal until systems are brought back online. alyx: you don't want to see me with a manual car. what does that mean for the cow market in the short term until

we get back online? lynn: the market reaction was swift. first thing monday morning we saw livestock futures take a dive and a downstream agricultural prices like hogs rally. we are waiting for the usda to tell us how the attack is affected wholesale prices of pork and beef. because they controlled so much of the meat market in the u.s., the usda was not able to submit isis and release -- prices and sub -- release them for proprietary reasons. we know anecdotally is that the suppliers and wholesalers are seeing a noticeable rise in prices until the plans come back to normal. it seems like from the people we are talking to inside those plants, that should be something that they will do in the next few days. we have to wait and see. alyx: i wonder what industry gets hit next.

thank you. time now for commodity and chief where we speak to one executive in the commodity world, it's bobby today, $100 billion is how much it will cost to build the biggest carbon capture and sequestration project. here's the pitch, refineries, petrochemical dance and industrial facilities emit co2. instead of letting them float into the atmosphere you collect them as released and put them into the ground. exxon is proposing to build a huge facility on the gulf coast. 13 million tons of cot -- of co2 was captured in the u.s.. it could be 100 million by 2040, that's a big increase. it wants to team up with public and private partners and the world needs big solutions they're only about 676 carbon

capture projects in the world. and new large projects like the one exxon is proposing is key to lowering the costs and making carbon capture competitive and legitimizing it for the viable solutions of decarbonization. i spoke to bobby tutor and ask him how important this project could be. bobby: what's different is the scale. they are talking about something it's a hundred billion dollars in capital and 50 plus megatons, ultimately of co2 captured. to put that in context it's like taking 15 million automobiles off the road annually or planting trees to cover the entire state of california. alyx: and what are other ways that the industry could make this scalable? what helps? bobby: it's going to take a range of financing. but one of the things that will help is ultimately if there is a price on carbon.

in order to drive and return the companies involved will have to price what's captured and delivered. it's also going to take financing from traditional sources. banks send the capital markets. but once again, those will only be available to the degree there is a --. it takes significant government subsidies. much of the way that in the early days but the wind and solar business, the economics of those projects was --.

bobby: this is from people selling their captured co2 to a transport and service company that will ultimately did dispose of -- ultimate dispose of it. you have to have a price on what you are selling. alyx: how viable is that? bobby: the iea says there's no path and at zero 2050 without carbon capture. i think the big open question is the you part of it and the ability to turn carbon dioxide into usable carbon molecules. there's a lot of research going along these lines. and the idea is to take the carbon that's been captured.

it's estimated that to me, the goals, globally we need to be spending three plus trillion dollars a year on this issue. the capital required as marring glowingly large. the capital markets notwithstanding green bonds and infrastructure bonds and banks, the capital markets are not big enough to fund $2.5 trillion a year for this sector. so that means it has to come from sovereign governments. and then you start talking taxes. when you start talking taxes you start talking consumers. what tends to be absent from this conversation is what is the appetite of consumers to fund this transition which most people would say requires a real sense of urgency and immediacy?

alyx: that was my interview with bobby tutor. -- exxon will now have to disclose political lobbying activities despite opposition can existing board of directors. time now for the commodity kicker. it's a move to cut greenhouse gas emissions. an ad giant will start selling methane observing wearable devices for cows in hopes of turning bovine burps into a more benign admission. this will be developed by a u.k. start up which claims it can reduce methane emissions by more than half. it's no joke. it's a legendary issue frame -- for meat and dairy companies. when it comes to fighting

climate change there's little margin for error. make sure you catch us each thursday at 1:00. this is bloomberg. :00. this is bloomberg. ♪

>> i am matt miller, welcome to bloomberg market. here are the top stories. t -16 minutes until spacex's falcon nine rocket launch. we will bring you live coverage and discuss the investment landscape with chad of space capital. we will also bring an update on

president biden's suggestion of a minimum corporate tax rate. it's a floor. it's a huge deal in different than a rate of just 28% to 30%. we also blazed on mean stocks amid amc a share sale. it dropped almost 40% at one point but is trading at 55 a share. let's take a quick check out what's going on in the markets. we have the s&p 500, it's a quarter of 1%. this is the level here. we have seen worse through the day. the 10 year yield has trading at 161 -- 16216. this is rising a little as investors sell bonds. the dollar index is coming up to 1124 -- is coming out. -- coming up.

let's take a look at amc. this has been a wild ride. the stock doubled yesterday. double last week. this has changed year to date, this is 15% after the company announced that it's going to sell another 11 million shares. take a listen to some of our guest reactions. >> you have the meme stocks moving. >> i am cn gamestop the two stocks in value. >> speculation is intense. >> the appetite is there as long as the fervor is there. >> it's like chasing ideas. >> [indiscernible]

>> this is a social media phenomenon but it's not trading on fundamentals, trading on momentum. >> you need to think about what the fundamental value is. >> as we saw back in january, rocket ships go back to launch pads. >> [indiscernible] matt: joining us now is a research analyst. it's great to have you on, i was thinking this morning, we used to look at stocks from a fundamental point of view and did a fundamental analysis and technical analysis. now it seems like we need to do some kind of social analysis and reddit analysis. how do you deal with stocks that don't move on technicals or fundamentals. >> [indiscernible] we have noticed a clear pattern.

i think the most important thing is to try to gauge the behavior of these investors. we noticed a clear pattern across different bubbles. we started with the reopening and moved them to tesla and other vehicles and gamestop and cannabis stocks. eventually to bitcoin. so to me it's not surprising to see these wild booms in amc. the only reason why they were absent from the market for the there was speculation on because bitcoin. but i was expecting them to come back. [indiscernible] we have this platform in my company were we track this into different stocks and we saw

massive -- into mc. [indiscernible] you have massive coal buying as well. i think that the bubble -- matt: you should've told the guy at moderate capital on tuesday. we are looking at a five-day chart of almost 200%, where is the stock going? it's trading at $5,500. what's amc worth? >> i think this bubble, especially when the prices [indiscernible] they don't usually last more than a couple of days. if it's not going to end it won't last.

and you can see this rotation happening. and you can see a pickup in cannabis stocks. so you can see the rotation. so i suspect that this marker [indiscernible] are already getting out of that trade. and you only have momentum. i think this is already move losing momentum. [indiscernible] matt: the wall street bats -- wall street bets investors, i don't even know how many are -- there are. they know this. they know they are getting into a bubble that's going to burst, or do they think that this company is really worth $40

billion? >> out -- oh no, they are trying to get rich, get leverage and ride the bubble. matt: that's what i thought. and the next bubble, where is the horde headed? blackberry, nokia, or pot stocks? >> it's hard to predict their behavior. from our data it's pot stocks, cannabis, and if you look at the game [indiscernible] stops in january, there was a clear [indiscernible] and it turned into a pot stocks. so we see a small pickup into [indiscernible]

i think it will be a possibility. matt: so they make these massive rashes -- russia's -- rushes and then they take a we break and go back. thank you for joining us. let's see what mark crumpton things about going on. t minus eight minutes and 40 seconds until the rock -- the launch. mark: present biden is offering to create a 15% tax floor for businesses that pay lower taxes. this replaces raising the corporate tax rates to 28% as proposed. this significant provision is apparent to win backing on the infrastructure package. the recommended no minimal corporate tax rate takes aims at dozens of profitable companies that pay little to nothing in federal taxes.

the rewriting of global tax rules for digital errors and tech giants, president biden's proposal for a minimum global corporate tax rate, these are some of the issues at the center of meetings in london between g7 finance ministers, they are not expected to reach agreement. the meetings are seen as an important first step in striking historic agreements that may take months to negotiate. the unlikely alliance in israel's history is on the brink of removing benjamin netanyahu. the opposition leader has assembled a diverse coalition of parties to unseat the prime minister who faces corruption charges. they are a centrist who would power with nationalists. economists were blindsided by a major miss in aprils u.s. job reports. they are ready for any number of

surprises in the may survey tomorrow. payroll estimates range from gains of 335 thousand to one million last month. forecast models say this cannot account for all the frictions in reopening the economy. 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 mark crumpton. this is bloomberg. ♪

matt: we are at minus four minutes and 20 seconds on the spacex launch. the falcon nine rocket has been pre-chilled and now they are running power to the dragon capsule. they will eventually take up a

new resupply. this is the name of this mission, head of the watch i want to bring in chad anderson, as well as justin bachman to walk us through it's going on. we were talking during the commercial. this started 10 years ago. this has all happened within the short span of 10 years and i'm thinking i can't believe it's that long ago. chad: it's amazing how much has been accomplished in the last decade. they went to the space station for the first time in 2012 and it's been a very exciting decade. a lot of what's in this package is consumables for the humans on board. you have the cruise -- the crews

on board. and six more are coming up over the next two years that are already booked. a lot has happened. things were just getting started. matt: to me it seems so futuristic that this evil billionaire, i'm joking but elon musk would be a great bond villain. he built his own space company that nasa runs out to launch stuff up to their space station and he has reusable rockets which must save millions. justin: it's revolutionary, not only in what spacex has been able to accomplish, and these things come off an assembly line like a car these days.

they really revolutionize the fact that you can fly these things very quickly. the unusual thing today, we are looking at the falcon nine first stage, they have previously used rockets. and i think that's interesting. matt: they busted out a freshly for the 22nd mission. and when are we going to be able to get a piece of this? chad: it's interesting. they have a fresh booster but it's already slated to be reused on the crew three mission. it's incredible to see how they push the boundaries. and there's all sorts of different aspects playing well.

they are launching the satellites these have been depreciated to zero and they are still getting value out of them. this is for their internal business ludlum what they're doing for nasa. it's incredible to see how they changed the game. the latest news on when you might be able to get spacex on the public market perspective, the last we heard was around the 2023 timeframe. matt: hang on for a second, we just have to go for launch. they are pressurizing their propellant tanks for flight. we have 10 seconds to go until ignition. let's listen in.

left off. bringing new solar arrays to the international space station. >> stage one propulsion is nominal. >> we're at t plus 40 seconds into flight. the falcon nine has launched. it's coming up on the next major milestone which is the point of

maximum aerodynamic pressure. matt: you are listening to spacex narration. they just launched off the northernmost pad at cape canaveral. the first thing we are going to see in just about a minute is the first separation of the main falcon nine boosters. they will break off of the spacecraft and the second stage boosters. then, they will start to float down eventually stabilizing to land on, of course we still love you which is a drone ship in the atlantic ocean. that's how they are going to take this fresh booster, remember this is the first time they have used these boosters, then they will reuse them on another mission. that will take five more minutes for the stage one booster to get back down to earth. then, the next thing we will see

is stage two. a slower burn. it will celebrate -- separate into flight, burn off then separate and hang around space or disintegrate on its way back down through the atmosphere into orbit. that will finally leave the dragon 22 mission on thrusters before it's going to go into autonomous mode and take a couple of days to get to the space station. think it doesn't get there until saturday. at that point, they will dock. we all know what that's going to look like. what are we seeing here? the breakaway of the booster. that is the money shot right there. that is the savings floating back down to earth. they are putting the stage one

rocket back into the atmosphere and eventually, it will land on a ship. >> that was a live shot of the business model where the first stage comes back and lands in the atlantic then you fly again. right now, you are seeing a shot of the second stage engine which is taking the dragon into its proper orbital out of -- altitude. matt: the second stage, as far as i understand it a lot of it burns off. not made with the extra strength materials as the big stage. within the rest of it will fall through the atmosphere into earth? >> yes the second stage is not a reasonable part of the vehicle. that is -- it is not a reusable part of the vehicle. it is destroyed. that is the one part of the system that is not designed to be reasonable.

-- reusable. >> some competitors complained that they are leaving too much space debris up there. that it's creating traffic for other satellites. >> we have heard discussion around star link. if you believe the initial plans, it could be upwards of 40,000 satellites to get the constellation up and running. there are concerns raised by astronomers and other groups about the sheer volume of satellites in orbit. that is still to be resolved. so far, regulators have given them approval to go forward and they are well above 1700 i believe is the current count moving forward. the rocket itself is not adding orbital debris. as you give companies like spacex and others, do we get to

a point where there needs to be a different regime for how to manage this traffic? >> chad, is this a problem for investors. especially as we see a wave of esg concerns over markets. are you worried about too many satellites, too much debris in space already? >> no, it is certainly something to pay attention to. as satellite operators, spacex has a vested interest in making sure that there orbital planes, their highways their lanes in orbit state clean and clear so they can operate without any issue. they can get the insurance they need to protect their satellites. everyone operating in this space has a vested interest in making

sure it is clean. they have worked really closely. they have heard the concerns from astronomers and others. they are taking steps to address the reflection from the sun. they have a working group and they are inviting people to come in and voice their concerns and their taking it seriously. all of this is playing into the fact that we have changed the paradigm. we have gone from very little activity to quite a bit of activity. their growing pains associated with that, there are changes happening. the company is bringing in the broader stakeholder group and addressing the concerns so we can have the benefits that comes from the systems. matt: i want to point out that we are six minutes and 40 seconds into flight. in the next minute or so, we are

going to see the stage one booster start to stabilize itself and try to land on the ship, which is called of we still love you. -- of course we still love you. it's a terrific name. this is the tricky part. this is what they struggled with the first few times. i was always impressed by elon musk's confidence because they didn't get it right for a while. he seemed to think you have to fail before you can succeed. now, we see it starting to float down. it's pretty amazing. it is about to land itself, just seconds to go until they touch down. in the past, it toppled over and that was problematic if you want to reuse it. it looks like they are on target to stick a pretty good landing.

amazing stabilization there. it's amazing the way it can hold in the air almost like a helicopter as it slowly floats down to the surface. how does this work? do they have parachutes on it or do they do it with rocket thrusters? >> they do it with one of the engines relates to provide the thrust to slow down. i have seen 40 or 50 of those and it never ceases to amaze when you watch the landing on a floating platform in the middle of the atlantic ocean with waves and wind. it seems to work. when you think about the engineering, technology, physics, and amount of work that went into making that happen. not once or twice, but that was the 86th time they have done it. it's amazing to see it every time. it never gets old.

elon musk has said -- i think people are always going to pay attention to that. >> how much money do they save with each salvaged rocket? >> i don't think we have ever seen a number. i'm sure it's in the millions when you look at the ability to minimal refurbishment, fill it up with fuel and fire it up again 10 or 20 times. that's astronomical cost savings. matt: i remember first hearing about the many satellite lunches about 10 years ago. i can't remember if it was tim draper or his kid talking about how they are going to launch these shoebox sized satellites into orbit and they would prove so important for everything from market research to fighting climate change.

how much has that business kicked off and how well have investors done on it? >> you are speaking our language. our thesis is that in the same way every company is a technology company, every company of tomorrow will be a space company. these satellites particularly large constellations distributed networks of small satellites are providing incredibly valuable data that is the invisible backbone that powers our global economy. we have had decades of experience working in space. the government on one side and defense contractors on the other. they built these monolithic satellites that are capable of going around the earth and getting a picture of where you want every two weeks. we have now gone to more single point of failure.

these large distributed networks of thousands of satellites in the constellation, you now have multiple points of failure. we are building out mesh networks and generating an incredible amount of data. the early demand signals are coming from agriculture, insurance, maritime shipping logistics, trillion dollar industries. the use cases, the applications of these data are infinite. now that we have cracked the nut of getting access to the data, aggregating it and distributing it and making it accessible to the tech community so they can build applications on top of it, we are starting to see that innovation play out. that's a key area where we are looking to deploy our fund in the application of this

geospatial intelligence data. as the world becomes more dynamic post-covid, -- matt: let me jump in, it looks like the stage two booster is now floating away. it's such a cool shot. walk us through exactly what is going on here. it looks like something out of a movie. maybe i am showing my age. it's floating away as they get ready for the boring part over the next couple of days. >> the dragon capsule will be in orbit getting ready to dock at the iss. yes, you are seeing a gorgeous shot of the dragon off on its own. that's the cargo version. there is one that carries people as well. we have seen that operate for three times now.

it just goes to show that spacex has mastered what they're trying to do now. the next thing is the starlight constellation. it is kind of company that is working in the commercial space arena doing what they say they're going to do and they have a huge product -- project in texas and elon musk wants to go to mars next. now, it looks like there is good progress on that front as well. matt: he does typically aim high and it takes longer than expected to get to his goals, but he has reached them also part. let me give you one final question. you are going into your strategy at the company. what is it in the near term, the short-term that you want to execute in order to deliver

funds to your investors? >> we have been participating in the growth of this economy over the last 10 years. we are uniquely positioned and we have been focused exclusively on this throughout the whole time. what is obvious is that there has never been a greater amount of opportunity for investment. nor has there been as much investor interest as there is right now. things are really accelerating. i talk a lot about the application, that is really where we are focused. also where we are deploying a lot of our capital and starting to return capital to investors as well. things are happening in a faster timescale that have ever happened before in this category. i don't think that anyone is really internalized how

fundamentally that is going to shape our future and how we interact in operate in space. it's good to absolutely change the game. matt: it's very exciting stuff to say the least. thank you for your time. our guests walking this through the pictures on the screen. they were gorgeous pictures. watching the most recent spacex lunch. and successful return of the falcon nine boosters. during this lunch, the white house has announced that president biden will sign an executive order amending the u.s. ban on investment in companies linked to chinese military operations. for more, we're going to bring in our guest who leads our white house coverage out of washington, d.c.

what has joe biden done and is he getting more hawkish trump was? >> you should list that as more expensive than trumps list when it comes to companies tied to chinese military. companies are banned from putting their money into surveillance business that the u.s. alleges has helped chinese authorities perpetrate human rights abuses for example in the shin jang province. matt: it's very interesting especially at a time when president xi telegraphs that he wants china to be more lovable or more friendly. what is the future of this relationship what does that look like to you six-month into the by demonstration? >> i would not describe it is

getting more friendly. the relationship between the u.s. and china. the new u.s. president joe biden has described china as a competitor, not quite an adversary. the world stage. this order is not going to help ease tensions between beijing and washington. beijing has objected to chinese companies being blacklisted for u.s. investors. in a situation where tensions are rising, they are not abating and it's not clear when actual diplomacy between the u.s. and china will gear up. joe biden has not met with president xi. they might do it in g20 later

this year in october. short of that, i think we are going to see rising tensions between the two countries. matt: how prickly is the issue of the origins of the coronavirus? it plays with a lot of drama in the media. you never know if it is the simplest most obvious explanation that it came from the coronavirus lab up the street or if that is at trumpian conspiracy theory. how political of an issue is it sort out? >> it has definitely become a more accepted theory that this virus escaped from the city where the pandemic began. there is no strong scientific evidence for that and the bulk of epidemiologists say that the genetic indications of the virus are that it emerged from a natural environment.

the biden administration has not endorsed the theory, but they have not ruled out. the president has very publicly ordered the u.s. intelligence committee to continue investigating the origins of the virus. that includes whether it escaped from the wuhan institute of rolla g. -- virology. matt: i'm not sure if we overplay it or if it really is that much of a prickly issue. that's why i asked to get your take on the ground. >> the chinese certainly bristle when the theory -- >> you never know what is happening. i want to shift the topic to taxes which you think would be

more boring. the headline i saw was interesting. according to the washington post, the biden administration wants to rather than wait for a 28% corporate tax rate and the truth is a lot of companies would still pay less than zero with that, he wants to put in a 15% floor so no matter what kind of deductions or loopholes you find, you have to pay at least 15%. is this going to be agreeable on both sides of the aisle? >> we are not sure. we have a lot of unanswered questions. the way the white house is framing it it's not that the president has set aside raising the maximum corporate income tax rate to 28% but for the purpose

of getting the infrastructure plan across the goal line, he is willing to set aside the 28% increase and fund infrastructure with a 15% minimum tax. we don't know if this would function like an amg for companies or a book tax, it's not clear yet how this would work. i don't know if republicans are going to agree to it or not. they would probably have some objections but if they do oppose it, the white house can turn around and say you are supporting companies that pay zero taxes while fighting our proposed tax increases on the wealthy and companies. matt: both sides of the aisle have worked those loophole deductions into the tax code. if they were opposed to that, they would pull that out but we know they are not.

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♪ matt: this is "bloomberg markets." amc is back up and it continues to gain. i want to express my surprise and i'm impressed. amc, the reddit army has pushed back up again. they say they will sell 11 million shares. now, it is up. 4% today. amazing move. dave and i have been talking

about this for a few days. i want to get to a different stock. you're going to talk about american air generating more cash than expected. this is about the reopening and the move back through tsa and onto the plains. dave: absolutely. they talk about how they sold 88% of their seats over moral date. clearly, there is more demand than there has been since the pandemic started. the real concern is that they aren't anticipating much of a comeback relative to where they had been when it comes to earnings or revenue specifically. when it comes to seating capacity. they're looking at revenue to be down 40% in the second quarter room where it was two years ago for the pandemic began. analysts aren't anticipating a recovery until 2023. seating is down is down as much as 25%.

they are cash positive, at least they were inmate. -- they were in may. you can see the debt they have outstanding. it has gone up 57%. they had to borrow money to keep going. they need all the cash they can get. as long as that revenue is still down, they can only get so much of it. matt: as if that matters, a huge debt load. all they have to do is offer free popcorn and they would be off to the moon. american airlines down 2%. amc is rising again. i'm matt miller. this is bloomberg. ♪

mark: bloomberg has learned president to amend a current ban

on investments and companies linked to chinese military. it includes 59 blacklisted companies including defense companies. the biden administration will issue guidance on the enforcement and penalties of the executive order. this policy dates back to the trump administration. joe biden is offering to create a tax floor 15% for businesses that pay low taxes. this significant revision of the tax proposal is a carrot to win back republican support on the infrastructure package. the new minimum corporate tax rate of 15% takes aim at dozens of profitable companies pay little to nothing in federal taxes. critical gauge of the u.s. economy is the monthly jobs report. tomorrow's