signage -- central chinese province. a city there known as the world's biggest for duction -- production for iphones got inches of rain equal to eight months of the city's average annual rainfall. u.s. special presidential envoy for climate john kerry says g20 countries need to step up their commitments to climate change and no zero goals. kerry spoke to bloomberg. >> this is an existential issue. we see people in various parts of the world losing their lives to the various effects of climate crisis. we need to respond. >> the developed world particularly, the 20 countries that are the major economies of the world really need to step up and come up with a reduction to keep the minimal amount of damage possibilities and focus. mark: the g20 meeting on climate

action is set to kick off tomorrow in naples. the summer olympics -- that process was overhauled in 2019 to prevent bidding wars among cities. global news, 24 hours a day, on air and on "bloomberg quicktake," powered by more than 2700 journalists and analysts in over 120 countries. i am mark crumpton. this is bloomberg. >> it is 1:00 p.m. in new york, 1:00 a.m. in hong kong. i am matt miller and welcome to bloomberg markets. here are the top stories we are following. construction hardware supplier hellman goes public in 2.6

billion dollars spac merger. we will discuss their public debut and how the market with -- and the ceo will be here. tom barrack after he was charged with illegal lobbying for the united arab emirates, we will have that. later this hour, michael simkin of 11 partners joins us. florida's real estate market and economic recovery as he expands his hospitality business. first off, let's take a look at what is going on in markets. stocks -- risk on his back again today. you can see the s&p 500 up about .5% at 43.48. the 10 year yield coming up a little bit not quite to 130 would almost there. well there you go, 130.01. the dollar index coming down as investors peak less safety -- seek less safety or make less of a safety bid. new york crude is over $70 per barrel at 7046 -- 70.46.

the russell 2000 is up more than 1.5%, doing better than the bigger cap stocks in the s&p. construction hardware supplier hellman went public buyer -- via a reverse merger as a spac -- with a spac. joining us to discuss the public debut inflation as well as housing market is the ceo, doug cahill. talk about the decision to go with a spac. we have seen a lot of interest that has turned in terms of public investing but now we are finally to see the blank check companies do deals. why did you go with a spac? doug: we had been owned by private equity the previous 15 to 20 years, and the opportunity with our relationship with watching these companies go public, rich handler and tillman

completely got our story and understood what hillmon was all about. -- hillman was all about. for years, we have been publicly reporting so it was not long to get there. matt: what do you want to do in terms of the proceeds, in terms of investment, in terms of moving forward? doug: we will take all of the proceeds and pay down debt. we are excited about that, the balance sheet will be much stronger and will enable us to continue to keep up with our great customers like lowe's and depot. it also will give us a currency for acquisitions. we have 1100 people each and every day taking care of the complexity and logistics and the labor problems for retailers, so we see these in adjacent categories and other categories we have been talked about. having half the debt load would put us in a great position. doug: you are in --

matt: you are in a great position to tell us your view on inflation as a supplier of goods i'm guessing are going up and costs. input costs must be rising. are you able to pass those costs on? how do you see inflation? doug: it is labor, trying to get goods into the distribution center in the stores. clearly things like steel, just like everything, it is across-the-board inflation for a company that has been around for 57 years. we have not seen a run quite like this one. it is going to be and is being passed on to the consumer, unfortunately, because it is just too big. matt: it is a -- is it transitory or is this structural inflation here to stay? doug: it's a little of both. high prices traditionally solve high prices. you saw lumber go from $400 to $1600. then two weeks ago, below $700. this week, below $600.

it seems to be over the place. logistically, getting products and goods and labor, those two seem to be more long-term than things like steel and lumber, which i think will bounce around. romaine: matt: so you think -- matt: so you think labor is a long-term issue. you do not think when benefits run out in september that we will see a lot more supply on the labor side? doug: i don't. i think there will be a continued fight for good labor and for folks who do a great job taking care of customers. i do not see that slowing down yet. there are outside forces that are causing some of this, but long-term, if you can take great care of your customers and people, you will win. i think the labor challenge is here to stay. matt: how else has the pandemic changed your business? doug: certainly the home has significantly changed from this place where people would eat, sleep, and watch tv.

now it is work, school, it is obviously entertainment, probably one of the biggest parts for recreation. so we are seeing projects in the home based on getting set up for those things both with the diyers and the probe. people are thinking differently about their homes in the future than they have in the past. i think that is the most significant change. matt: you think that demand is sticky? doug: no question people have a list of projects they want to do . they are probably fighting in the next 30 days with time because a big saturday a year ago this time was to go to depot or lowe's. now they are out and about going to the lake and we are happy about vacations and spending time with relatives. once we are back to school, those projects will kick back in and i think we will see very nice demand for what has been pent-up and people -- we taught

two generations how to be diyers in nine months. last year, they bought homes for the first time, are doing projects, and we see that. matt: it could be a busy saturday. to expect in terms of your business, revenue growth and margins? doug: over the last 20 years, we have seen 6% organic. we have grown 55 out of the last 56 years because we are really focused on repair and remodel with the big ones. i think 6% is a good number, ongoing again. we have 20 years of history with that, but that feels like a good number for us going forward. matt: dugger, think you for your time. doug cahill out of the great state of ohio from the hillman group. we will focus on the bounce back

in the markets but also what is going on in the senate. it looks like republicans have thrown a wrench in the works for now. that's in terms of the bipartisan inverse archer deal. this is bloomberg. ♪ this is bloomberg. ♪

matt: we are going to get to our weekly segment on the new economy. we examine every week how global leaders are trying to solve the world's biggest problems. we do that with annie brown, the bloomberg new economy editorial director. andy, we are focused on president biden hosting industry leaders at the white house next month to discuss the recent wave

of ransomware attack's. this follows the announcement this week by the u.s. and u.k. and their allies that formally attributes the attack on microsoft exchanges email servers to operatives affiliated with the chinese government. we have seen this with other hack attacks and the blame on russia. what can be done about this? president biden has already spoken with these leaders about ransomware attack's. -- attacks. andy: this is a danger that right now very little can be done. i see this as significant escalation in the u.s.. a lot of people say it is nothing like the cold war or confrontation between the united states and the soviet union. unlike in that case, the chinese and u.s. economies are deeply intertwined but the whole point

about this attack on microsoft, allegedly by hackers sponsored by china's intelligence agency, is it would be aimed precisely at some these u.s./china economic ties. companies and the private sector, many of whom see china as a source of future growth and as well as microsoft itself, which it has been the model u.s. corporate citizen in china. matt: is the possibility of a retaliatory attack on the table? does the u.s. do things like that? andy: i think it is highly unlikely in this case. the real danger here is that unlike the situation in the previous cold war, the first cold war, when the u.s. and soviet union had protocols, had platforms, had contingency plans

to prevent this type of confrontation from spiraling out of control and potentially into kinetic warfare. right now, the u.s. and china are not talking. as a matter of fact, a few days ago, janet yellen said she has no intention of restarting an economic dialogue, which was the primary platform of communication and policy coordination between the u.s. and china, starting in the george w. bush administration. matt: what does the current world order look like to you? what is the paradigm right now? andrew: the paradigm is a global economy that is threatened, which now you have the digital arena which was the place where allegedly china's spy agency attacked is the arena for competition between the u.s. and united states and china.

it includes artificial intelligence, robotics, and the danger is those two spheres will simply fall apart. that you are looking at two world, two economies. matt: one of the things we have been hearing a lot lately is china out spends the u.s. head and shoulders in terms of infrastructure. is that the kind of thing that this -- this white house once big infrastructure legislation passed. is that the thing rub look -- is that the thing republicans would be on or with to keep up? andrew: you might think so. the biden administration has tried to frame so much of its policy, including its infrastructure, in tones of u.s./china competition. we need high-speed rail, we need better roads, we need better transport infrastructure in order to better compete with china. it seems apparently, from what

you have been reporting just now that that strategy has not been successful. matt: you mentioned -- you use the phrase cold war and we have been hearing that a lot more lately as well. when does this hit the markets? the trump administration's problems with china really showed up in the markets, but this has not. andrew: it is interesting because, on the one hand you have this increasingly broad security relationship there china. we have just seen action intended to empty the ipo pipeline of china's companies moving to the united states. on the other hand, u.s. businesses in china are their primary growth market. there is no economy on earth growing like china.

companies like microsoft and the companies impacted by this are really caught in the middle. matt: that is a very good point. we have definitely seen it on the company level. andy brown, think you for joining us, bloomberg new economy editorial director. check out the new economy daily from bloomberg economics focused on what is driving the global economy and what it means for policymakers, for businesses, for investors. you can sign-up for the new economy daily newsletter at bloomberg.com. bloomberg.com -- this is bloomberg. ♪

matt: welcome back. this is "bloomberg markets." tom barrack and two others have been arrested, taken into custody yesterday on charges of illegally lobbying for a foreign government. according to the prosecutors, he engaged in unlawful efforts to

engage the uae's desires. chargers could result in as many as five years in prison. barrack touched on his relationship with the middle east during an exclusive conversation last week -- last week with erik schatzker. >> everyone knows you have deep and long-standing ties to the qatari's, you have a history in saudi arabia that goes back to one your first jobs ever in the 1970's. are they all behind you in this effort? >> yes. yes. as we talked before, the region is so complicated. i have heard that one family is also backing you -- complicated. >> i have heard one family is backing you, is that true? >> one of the smartest human beings. comes from amazingly humble origins in one of the most

complicated countries in the world. she is a tremendous role model. when it comes to relationships, he is thinking a decade ahead. i have a hard time thinking 10 minutes ahead. he has an incredible team and india is an amazing place. if you look at india and china and the numbers of where the world is going, and he is a great friend and a valued partner. matt: for more on what is going on, let's bring in caleb melby. what exactly is tom barrack being accused of here? caleb: tom barrack is being accused of basically, from 2016 through 2017, acting as an intermediary. to push their policy preferences and goals both on tv appearances

that he made and in conversations with trump campaign and trump administration officials. matt: is this the kind of thing -- i have not heard of other prosecutions for this kind of activity. am i just not paying attention or is this something the department of justice is just starting to bring up? caleb: so you have certainly have not heard about it for anybody of barrack's stature. but it has been one of prosecutors favored charges to bring and one of the easier ones to prove for other people in trump's orbit during the campaign and presidency. that would be paul manafort, the one-time campaign manager who tom barrack brought into the campaign and dealt with charges. as did elliott broidy, a major trumper previously.

matt: i should correct myself in saying i have not heard of it for previous administrations. of course the trump administration has the cases, but you did not hear about this or i did not hear about this with the obama administration or lobbyists for bush or clinton. they are really going after this administration. is the concern that there was a lot of profiteering with this kind of lobbying? caleb: i think the very nature of it of course is to fail to register as a foreign agent basically means you're failing to tell the government you are doing this sort of activity. i think one could argue that the reason why there is a heightened raft of these in these years is a lot of this activity was much more informal. the varieties for instance have

had influence in the u.s. for years. you can look at their filings and see a lot of it is aboveboard. but with people like manafort, like roy d, and now prosecutors are alleging with barrack, a lot of this was not flagged in the way it should have been flagged during this time period. matt: what to expect in terms of a sentence? is it likely tom barrack would serve real prison time for this? caleb: it's going to be very interesting to see exactly just what the justice department attempts to seek here. i think five years of -- years would in the end be unlikely. it also depends what other lines of inquiry they have going on right now that barrack might be able to shed some light on. if are you -- if you read the

indictment and it is lengthy, it focuses narrowly on his conversations with matthew grimes, also indicted, and a uae businessman. it does not reveal much in the way of the conversations barrack then had with administration officials or as we know just because he is sort of mad about the world, conversations he was having with other dignitaries around the globe during this time. matt: caleb, thank you very much for joining us. caleb melby covering investigations for bloomberg news talking to us about tom barrack and jail. former baseball star alex rodriguez is putting money into the online brokerage tornado. a $10 million early-stage round is the second for a firm rodriguez founded in may with mark lohr. the founder of barstool sports who has become a leading voice among retail traders is also

part of the investment round. tornado's management plans to spend more than half of those funds to promote the service, mostly through digital advertising and influencers as trading continues to gain popularity among the retail crowd. so a-rod is putting money into it. this is bloomberg. ♪

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investing, there are pockets of the market where you have to be in the know. >> i am a mark crumpton with bloomberg's first word news. covid-19 continues its rampage through asia.

south koreans are reporting record infections. japan's top advisor says tokyo could hit a new high in early august, before the end of the elliptic games. the delta variant, first-aid and fight in india, is said to be responsible for a large number of current covered cases. u.k. prime mr. boris johnson -- prime minister is calling on the eu to do with disagreements about the post-brexit relationship, posing an overhaul of disputed trade in northern ireland. david cross outlined a blueprint for what he calls significant changes to the controversial ireland protocol. >> we want to sort out the issues. there are steps you can take to do that. >> johnson has said the eu has required excessive border checks

on foods crossing from great britain to northern ireland, which remains in the eu's market. they counter the u.k. is backsliding on commitments it may. office workers in london want a pay hike to return to the office. according to surveys, only 17% now say they want a full-time return. but cash could convince 43% of workers who say they want an average of about $7,000 more to go back. 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 am mark crumpton. this is bloomberg. ♪ >> welcome to bloomberg markets. matt: welcome to our audiences

each day at this hour. here are the top stories we are following from around the world. netflix seeing its worst stock decline in three months after a slow start to the year. we break down the company's earning and outlook in today's stock of the hour. also, credentials sell full-service retirement business to canada's lifo for $3.5 billion. we talk with their ceo, paul mahon. we are also discussing the challenges he faces during the recovery of hospitality workers. amber: let's get you caught up on the market action. monday is firmly in the rearview mirror with most of the industries making back almost all of the losses. the s&p 500 now less than 1%

away from an all-time high. it is a close cyclical event. that depends on growth continuing at the delta variant fading into the background, energy stocks, financial, material and industrial all leading the way higher on the s&p 500. matt: we do see some movement again today to the risk side in these markets and be continue to see yields bounce back to some extent. we are at 128.67. we did not see it go over 130. we saw oil climbing over $70 a barrel. for the nymex contract, we see it up at 72.32. let's get to the stock of the hour. netflix subscribers in the second quarter were does not -- were a disappointment. the third quarter does not look better. dave is looking deeper at the numbers. >> netflix has 1.5 million

subscribers and second quarter. that is more than analysts were looking for. the survey estimated 1.1 million. the u.s. and canada, that was the issue. you had a decline of 430,000 scriber's -- subscribers. it is the second and ethics's history. no doubt the growth had -- in netflix is history. netflix appears to be paying a price. they are paying a price in terms of their shares. it is not unusual for this stock to bounce around after earning. you look back, our numbers show an average move of 11%. they haven't quite gotten that today. you do have the biggest decline in the s&p 500 and you have a continued situation of a trend of netflix earnings over the

past seven quarters. it goes down here after having risen every year since 2015. that is another noteworthy piece. profitability. even though subscriber numbers don't look as good, they are raising prices. as a result, profit margins are going up. the problem is, it is not as much as netbooks want. they are aiming for a three percentage point increase this year. it looks at their only getting about half of that. amber: they've got to spend the money. they have to spend on content, potentially video games. i'm wondering, how does it compare to some of the other media companies? do we see a similar drift away from them? >> not in terms of stock prices. there are 22 companies in the s&p 500.

netflix is one of only six that is lower for the year. about 5.5%. it is the second worst performer in that index, only second to interactive. the videogame maker has fallen more. public group agency owner -- shares, the s&p 500 up almost 50% in a year. matt: thank you very much. dave wilson there. coming up, great-west lifeco inc for more than $3.5 billion. the deal is set to change the market share. we are discussing that with ceo paul mahon. this is bloomberg. ♪

amber: this is bloomberg markets. we've got our eyes on great west life co. making another big acquisition in the u.s., this time for credential financials. retirements is the second time we have seen a major acquisition in this area of the market. let's discuss this strategy and rationale. we've got paul mahon, the ceo. let's start with how the deal came together and what is so attractive about the u.s. retirement segment at a time where the others -- we are moving away from it. paul: thanks for the question, it is a good one. we look at the u.s. retirement

market is the largest retirement market in the world. there are 140 million working americans. there are $47 trillion of assets. the fine contribution savings roll into taxable savings. we view a leadership position in this market as a key opportunity to draw growth in the near term as we bring these companies together for value in terms of synergies. but also long-term as we expand and extend our relationships with over 60 million working americans once we have integrated platforms together. we see this as a real growth. as a transfer the business. -- as we transform the business. a hybrid of digital wealth engine which we will be embedding a lot of those capabilities for the benefit of plan participants helping them build their best retirement outcome. amber: all these acquisitions

put together -- we are wanting what you might do to offset that. would you sell a division? what analysts suggesting you might sell. is that on the team -- table? paul: we have been actively managing our portfolio. a couple years back, we invested in the u.s. and that unlocked available capital. done some other investments in europe more recently. we are going to stay the course, because we think there are a lot of value creation opportunities from the standpoint of working toward a combination that will unlock scale and value. having said that, we will use discipline to make sure we are always on top of our portfolio into thinking about, are we really driving the best value we can over to our capital? having said that, this

transaction and the other transaction last year are highly cash businesses we have acquired. we have used short-term debt as a means of financing. with the massmutual transaction, we have almost fully paid down the initial short-term debt. we will follow the same path with this transaction. we see ourselves bring down the leverage ratio over the few coming years. matt: how do you do with low rate and going lower? paul: one of the benefits of our portfolio is we have quite a diverse of portfolio. we are active in wealth management. we are active in insurance that would be more about capital than risk. that diversification has played out well. we have had to manage and respond to a low interest environment. one of the things you do is make sure you have the diversification into that you balance your business.

at this stage, we are comfortable operating in this environment. over time, we always have to be thinking about how you want to position the portfolio going forward. at this stage, we are comfortable with how we position the portfolio. we provided an 8% to 10% -- matt: we are getting breaking news that jerome powell has brought support among top biden aids for a new fed term. while we are talking, i thought we might bring you this breaking news. it looks like the fed share enjoys broad support for renomination among the top white house advisors. the decision as it made until later this year. not surprising, but something we should mention. she has done a great job of staving off any tantrum.

when do you expect paper to start and rates to go up? it looks like it wants to wait until the end of 2022. paul: i would not predict a policy like that. for sure, i think there has been inflation in terms of making significant changes. having said that, as a think about our business, our business for ultimate benefit from a rising rate environment. having said that, we are operating quite effectively in this lower rate environment. everything in moderation would be my view. that would be my expectation and terms of going forward. -- in terms of going forward. amber: that is not an area you can control. rates are going to be what they are going to be. it seems like you are focused on what you can, growing in the markets that you want to. are you expecting more of these kinds of acquisitions going forward? as you mentioned, and you reiterated, this is the second

time in a year you really looked to bulk up in u.s. retirement. paul: as i was saying previously, we are always looking to develop leadership positions. having said that, we need to focus on integrating these businesses and essentially achieving the benefits we have outlined with the transactions we have announced. across the rest of life co., we will look for opportunities to unlock value. big about where we can best employ capital. as opportunities arise, we will look at where the greatest growth opportunity is an outlook for the best way to finance those. as it relates to empower, we need to focus on innovating these businesses over the next couple years. beyond that, we look for opportunities to further grow that business along with the rest of life co.. matt: great to get some time with you. hopefully we can get you back into check in as this progresses.

he is the ceo of great-west lifeco inc. i want to recall the breaking news we had moments ago. fed chair jerome powell is said to enjoy broad support for his renomination among top white house advisors, though no decision is expected until later this year. biden officials keeping an open mind about how the administration can put a stamp on the central bank according to people familiar, but it does look like there is broad support for powell. in addition to powell, randles term as vice chair for supervision, which is an important regulatory post, one of the most important in the world, will expire in october. the board term for governor where data expires in january. i like to point out it is a great terminal command to get all you need around the central bank.

this is bloomberg. ♪

matt: this is bloomberg markets. recently, bank of america's wealth management division announced it is ramping up its efforts to serve rich clients in florida. during the pandemic, it has emerged as a potential second-home to wall street and attractive estimation for the wealthy -- destination for the wealthy. with the recent condo tragedy, it is still a great place. e11even recently announced it will build a new hotel project in miami. joining us now is michael simkins who leads the popular

group. i wonder what affect it has on your business. you've got wealthier and wealthier people coming down to florida. michael: hey, how are you? thanks for having me. this is for the benefit of your audience, want to tell you little bit about the e11even hotel residents. it is in downtown miami and has entertainment features with a wellness center, restaurants that are going to be michelin star, world-class. a-day club at 20,000 feet with a jacuzzi and nightclubs, sports lounge -- everything that someone could want 24 hours a day. it sold out extremely well. we still have some penthouse units available. to your question, miami has seen an incredible resurgence in

activity over the past year. in the real estate hospitality business, we have seen business booming. years of work by stakeholders to attract jobs in a tweet by the mayor sparked all that work. it all came together. it is incredible what is happening in miami. not only from the real estate and hospitality side but also quality of life in miami. amber: i've got to ask. i know you are selling good times, but miami -- the area has seen some real significant tragedy with the surfside condo collapse. what does that do to the appeal and it miami real estate? how do you think about that? did you see any effect? did you see people asking more questions about the condos they

were buying about the structural integrity? michael: i live very close to surfside. it certainly is a tragedy unlike anything any of us have seen. we all know people who live there. our tower is a brand-new building built under the highest standards. structures built in south florida have some of the highest level of engineering specifications in the world. our buyers are not concerned about the structural integrity. they are concerned about having an amazing experience, a luxurious experience, and my partners at e11even came together and said we want to create a building that is luxurious, fun, exciting, and really has something for everybody. that is what we set out to do.

buyers are resonating. we've sold out all the regular units. we penthouse unit still available. matt: we've got low rates and stocks are at an all-time high. michael: it is great times now. from my perspective, i think for the next few years, it is great times. economically. i see prices trending up, rates staying lower. the stock market seems strong. there is a lot of interest in the cryptocurrency market. we accept cryptocurrency at our condo tower as well as payment. we are bullish on the lookout on the economy. amber: on that cryptocurrency, how many people actually pay for units and crypto? michael: we are the first

predevelopment condominium to accept cryptocurrency. we initiated it after the initial deposits were due. some of our buyers are starting to make additional deposits and some of the pen has buyers will be using crypto -- penthouse buyers will be using cryptocurrency. in our hospitality business, we have a large investor. our customers, there are a lot of crypto investors. a lot of people in the business. we cater to that world. matt: how many of the residents of the new buyers are coming from other states as opposed already living in florida? michael: the majority of our buyers are domestic transplants to read a large number from new york and california. also texas.

we have less international buyers than a typical miami developing project just because we were selling during the lockdown. we have mainly domestic and -- pardon me. it is a lot of new yorkers, certainly. matt: great to get with you. thank you for joining us. michael simkins from e11even joining us out of aspen. i am matt miller in new york, this is bloomberg. ♪

>> i am mark crumpton with bloomberg's first word news. disease and flooding are

shutting down manufacturing across asia, including nike and apple. the tokyo olympic games are set to open. coronavirus variants in asia are disrupting global supply chains. japan aims to prevent the olympics from becoming a super-spreader event in a region that had succeeded with covid-19 control strategies until recently. and come at an opening women's soccer match at the games, there was a shocker. sweden stunned the u.s. women's team with a 3-0 score. team usa has not lost a game and more than three years. it plays two or more matches to determine whether it advances. john kerry says we to up our efforts in the fight against climate change. he spoke to bloomberg ahead of