in the last week, driven by spikes in the middle east and asia, according to the world health organization . health agencies at said today that infections have been increasing for more than a month , although the worldwide number of deaths have dropped by 80%. or the 100 30 countries have reported cases of the delta variant, first identified in india. indonesia has now reported more than 100,000 coronavirus deaths , the 12th country to meet that milestone. while indonesia is adding fewer numbers of cases daily than the u.s. its less equipped health care system has led to higher mortality rates from the virus. only 8% of indonesians are fully vaccinated, according to bloomberg's vaccine tracker. governor andrew cuomo is facing enormous pressure to resign, even from within his own party, including from president biden. this after the state attorney

general founded the governor sexually harassed and nearly a dozen women in his office, including a state trooper on his security detail. he could face criminal charges. said he never touched anyone inappropriately or made sexual advances. former president trump is keeping up his fight to keep a lid on his tax returns. lawyers for the former president have a fady challenge to a justice department order that he turn his records over to a house committee. mr. trump's attorneys say that the democrats are seeking his returns for the sake of exposure and would release them for political gain. 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'm mark crumpton. this is bloomberg. ♪ >> it is 1:00 p.m. in new york,

6:00 p.m. in london, i'm matt matt miller and welcome to "bloomberg markets." here are our top stories. u.s. stocks fall after a fed vice chair suggested rates could rise at the end of next year. we will bring you the latest on the markets. plus, european electric vehicle charging company allego will be going public. we will discuss the deal with the ceo. matt: bank of america bets on a return to business travel, we will discuss the bet as it unveils a new credit card aimed at executive travelers. now a quick check of what is going on in the markets. as we said, stocks are down, and they fall further after we heard from richard verda, not only about his expectations for fed rate rises, but also about the jobs situation. we are waiting for the payrolls

number, expected to be less than a million gains on friday morning. the s&p 500 is down one third of 1%. and the u.s. 10 year coming back, but still at a very low level. and the bluebird dollar index rising to 1141. nymex crude is down $2.32. a big drop for crude and across commodities, you also see drops in nickel, silver, as well as other precious metals. the u.s. treasury has set the stage for reduced government debt issuance in the coming months, even as it has kept its upcoming quarterly auction of long-term securities at a record size. with us is katie gry failed on this story. it is so fascinating, because even if the fed is talking about tapering, they are not tapering yet, and if they continue to buy

treasuries come out of prices have to go up and yields have to come down. >> we know they demand is there from investors and from the fed itself, and we know that supply cuts are coming. not this quarter, but by november they expect to announce options at sized reductions. matt: much more in bills. not on the long end, but bills will be cut drastically. katie: we will see what that means for the front and, because there has been a lot of pressure on the front end. i'm interested to see how this plays out. you would expect some of this is already priced in, but we have a ton of demand and we know that supply is going to go down. matt: it is not just the fed as a buyer, there are institutions at that have to buy this taper, regardless of price and yield. katie: look at the global yield picture. we all know this, there is nowhere else to go except the u.s. you some interesting notes

today, saying that you might see international investors -- the long end of the treasury curve. you look at the 30 year at 180, that is looking good if you look around the globe to try to find some kind of return. matt: but it does seem incredibly low. what did we hear from the vice chair, he did say the bank is on track to begin easing rates in 2023, if the economy performs as expected, and he talked about what we can expect from the jobs front as well. katie: he expects a taper announcement later this year. and people are calling this hawkish, but this is pretty much the trajectory that was priced into markets already. we saw a little bit of a reaction, but nothing that huge. we were around 1.13 on the 10 year, now we are flat on the

day. even still, this is the consensus, but to hear the vice chairman say that, if you look at what happened in the money markets, that did cement that the 2023 lift off is going to happen. matt: i look at this all the time. and i am looking at -1.22 as the low today. whenever we going to get away from the record lows? katie: i would love to know. if you look at that negative number, it feels out of step with the u.s. economy, but then you remember the u.s. bond market is pricing in the state of the world, the fact that we are getting delta variant concerns and you are seeing restrictions in other places. that's filtering through the u.s. market right now. so, we will see if we get away from a negative number, but it does not look good right now. matt: thank you for joining us. now our weekly segment on the

new economy, where we examine how global leaders are trying to solve the world's biggest challenge is coming and we are looking at china here. the chinese media, including the communist party's flagship newspaper, has toned down on the gaming industry today, but we have seen a continued crackdown on big mega cap tech in china, starting with ant, then tencent. for more, here is andy brown, our editorial director and bloomberg. it looks like it is not quite as bad for videogames as the, what do they call it -- the spiritual opium. i always think about karl marx, religion is the opiate of the masses. in this case, president xi is essentially saying, through his media arms, that videogames are the media of the young masses. but it is not quite that bad.

>> they have been trying to calm the market jitters, the regulators, but this is not going to work because these are not the guys calling the shots. that is coming out of the political leadership. what you referred to is where you have these massively market moving statements and signaling coming out of the most ideological part of the chinese bureaucracy, the media. and in this case, the voice of the party, the voice of the state council, pronouncing in the online gaming is the new opium. and what is really dangerous is you have these announcements coming out, being made by people who have to take no responsibility at all for the conseq. so then you have the regulators trying to calm market jitters. matt: it really must rile up the

party when these media outlets all of a sudden cause hundreds of billions of dollars in drops in their companies. we had met windsor on earlier this morning and his article says the biggest companies in the world are still overwhelmingly american, and when china gets up there, these regulatory scares knock them back down. andy: investors will have to get used to the idea that the rules of the game have changed in china. this is not a market economy, not an economy that intends to maximize profit. it is the opposite. in key areas, they are determined to minimize profits. and in some cases, they want to eliminate them altogether. but you have to understand the political economy, where president xi wants to take society, what he wants to do with politics. the place to look for answers now as to where to invest,

forget about modeling, you need to look at the speeches of xi, that is what the savviest investors are doing. they are looking at magazines, which -- at a magazine called "speaking truth," interestingly. vonnie: if you are seeking -- matt if: you are seeking output in china, do you worry about the next shoe that will drop or is it just on investable? andy: there is a cottage industry that has popped up, trying to guess where the acts will follow next. people are saying, this is all about xi trying to reduce inequality. so look out for those industries with excessive profits and they are really a financial burden on the masses. they talk about housing, education and health care. i do not buy it. this is about power and control. it's about the future of the

private sector in china, the future of markets and foreign investment. and i think in all three cases, they are going to have to accepta much diminished role in any form or state dominated and controlled economy. matt: it is fascinating. andy, thank you for stopping by. andy brown is our new 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 and investors. sign up for the newsletter at bloomberg.com. this is bloomberg. ♪

matt: this is "bloomberg markets." let's turn to electric vehicles. charging company allego is set to go public via spac with a spartan acquisition that values of the combined company and over $3 billion. the ceo is joining us right now, mathieu bonnet, from spain. thank you for your time today. let me first ask, why go public via spac and what do you want to do with the funds? mathieu: we have a great plan of investing in new charging stations. and we will present a different option. so we considered the spac was the most efficient way to do that. and we want a strong partner, knowledgeable in our industry, and with sustainability, so we

are delighted to be with sparta . and we are very keen to work with them. matt: what kind of ev charging stations are you going to be deploying? i know you have a history in renewables. you founded an energy management platform, you also worked for one of the biggest hydro energy companies in europe. how are your charging stations going to work? mathieu: what is important is to offer the best service, so we consider the most interesting segment is the charging stations. we began eight years ago, and at that time we did not have the technology. we only had slow charging. but we now have a great expansion, where we have more than 26,000 charging ports. and now we are focusing on

rolling out fast and ultrafast charging stations. you can charge your battery in 10 or 15 minutes, that is a great advantage for the future of ev drivers. matt: how long until these are on all european highways? the numbers sound high, but i recently drove from berlin to frankfurt in a luxurious, electric vehicle, but to be honest it was really slow because not only do you have to keep your speed down to preserve your battery, it was taking me 45 minutes to one hour to charge it. mathieu: that is our plan, we want to be quick. and we are ready to roll out 500 new big charging stations in europe, in germany, france and the u.k., as well as spain, strong markets. and we think that in only five

years, we'll have more than 60,000. so, it is going to be massive. the demand here, and the supply here, but it takes time because we are a new industry and we have all of these ancillary services. matt: it is not just the charging that can be problematic, often times it is making the charging stations work. they have to recognize your car. you have to figure out a way to pay. it's not as easy as going to bp and tapping into your phone on the tap. is there a better way to do that with allego? mathieu: that is a good point, it's complex. because we have different chargers. we need to be able to charge any car. and you can charge any car from any brand at our stations.

for paying, we have our apps. but we need to work with credit cards as well, and offer different payments, because customers have different ways to pay. and we need to follow through with that. the technology is key, and that is why we have our own preparatory technology -- own technology for payments. matt: thank you. that is mathieu bonnet, ceo of allego. which has recently gone public with the apollo affiliated spac, spartan three. coming up, the return of business travel. think of america is betting on its come back -- bank of america is betting on its come back with a commercial card. we'll talk about business cards and traveling with them. this is bloomberg. ♪

matt: this is "bloomberg markets." bank of america is betting on a return to business travel, unveiling a commercial credit card for the on the go business people in a bet that work travel will come back. the new executive explorer car will offer perks like expedited security clearance at airports and insurance for lost or delayed luggage. for more, jennifer petty is here, the head of global commercial cards at bank of america. you focus on the traveling executive, jennifer. i am normally based in berlin and i am on my first business trip in a year and a half, and finally using my corporate card again. is this going to go back to the way it used to be? will we be back on the road, in

the air, staying in hotels? jennifer: we are not there yet, if we compare q1 to q2, we have seen 40% growth. in the commercial space, we follow consumer trends. if you are in the airport lately, we know that travelers are traveling again. those numbers will increase, so we will definitely see the corporate side of things increase as well. so we are seeing that now, but we do not think we will really come back until sometime next year. but we are definitely seeing travelers structure travel again for business. matt: you think it will come back to pay pandemic levels, you are not worried there is a new normal wear executives travel less than they did before covid? jennifer: there was a time where virtual meetings had taken place, and they have been effective, and we will see that

impact travel. i do not know if it will get back to 2019 levels, but we will see in increase in the next year and a half. matt: you are in an incredibly competitive space, so let me first ask how you compete, how you position yourself against, you know, stall warts like american express? jennifer: we have a diversified portfolio and we focus on travel transactions. as we launch the executive explorer, tons of feedback going into this, and we are trying to launch something different from what we see in the market. as we come out of the pandemic, and clients travel again, we wanted them to have a contactless experience. we want them to be able to go to any lounge, to be in a safer environment. we wanted to provide insurance coverage that's not been seen before on these types of

products, whether it is for your cell phone, for ride share, if you leave something in the car, and increasing lost luggage insurance as well. so we listened to clients. we brought in somebody who was managing a travel program with competitive offerings, and we said, what do we need to have to be competitive in this market? that is what we are launching today. matt: on the tech side, you and i were talking during the commercial, and i said i'm always wearing out my corporate card with subtypes, and you pointed -- with swipes, and you pointed out that the kids are not using swipes anymore. what about fintech? jennifer: we are always working with fintech, understanding what is in the market. we have offerings that are great, but we always want to partner with fintechs and make sure we are bringing the greatest technology to our clients.

matt: does it bring regulatory concerns, or are they big for you in the world of corporate travel, because so much of fintech seems to regulate as they go? jennifer: regardless of who is providing it, if it is coming from bank of america, we are focused on the regulation and we adhere to that. it does not really change for us, we are always mcgee sure that regulations are being met. matt: how has client acquisition been through the pandemic? do you feel like in some ways the playing field has leveled after covid and you can try to grab more customers? jennifer: from a customer standpoint, our customers have been focused on moving payments to digital. we launched, about a month ago we talked about complete digital permits. and -- payments.

and that is something that our clients look to us for, but now that we are going back to travel, some clients have said what we need to do is from b to b, and now we are ready to travel, so, bank of america, help us. that's what we are here to do. matt: thank you for joining us jennifer petty, she runs their corporate credit card business there at bank of america. speaking of business travel, i was looking forward to the new york auto show coming up later this month, but has now been canceled on increased concern for the spread of the delta virus. we will continue to follow this developing story for you. this is bloomberg. ♪

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mark: the white house is hoping for more time on an issue that

has become a big political headache for president joe biden. the cdc is extending a moratorium on evictions for 60 days, but only in areas with high covid transmission. progressives had criticized at the president for letting the protections expire. in the u.k., anybody 16 and older will now be able to get vaccinated against covid. the government made the change today after a recommendation from its advisory committee. the panel says 16 and 17-year-olds should get the pfizer shot. officials are still not recommending vaccinating anybody under the age of 16, unless they have underlying health conditions. turkey is criticizing the u.s. for recommending the afghans afraid of the taliban, weight and other countries as they seek asylum in the u.s. the turkish president said today that his country will not serve as "any country's waiting room."

tens of thousands of families are fleeing the taliban, as american forces get closer to complete withdrawal. forecasters believe the atlantic hurricane season is about the pickup steam. the season had a quick start when five storms happen, but it has settled into a lull. forecasters say that conditions that created the quiet period are ending. they expect 15 to 21 named storms in the atlantic this season. a forecast in had called for 14-20. 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'm mark crumpton. this is bloomberg.

>> welcome to bloomberg markets. here are the top stories we are following. we will have the latest on the markets as the u.s. stocks fall. achieve market strategist joins us. robinhood searching for a second day. -- surging for a second day. it was up as much as 82% at one point. we will discuss vc money as well and the preview of what to expect from modernity earnings tomorrow. -- moderna's earnings. >>moderna is on the move.

investors are chewing over earnings as they roll in. the jobs state is disappointing. you can see the broad markets are weaker, but the growth oriented nasdaq is moving higher. on the s&p 500, tech has been higher. look at your 10 year yield. an announcement from treasury that this is not a surprise, it was expected but if treasury follows through and reduces the size of the auctions as soon as november, it will be the first time they have done so in five years. they will continue on path to issue $106 billion.

is that indication that they see a high watermark of spending? spending has risen, perhaps they see the decline somewhat. matt: it will be interesting to see -- the fed is out there as a buyer and there are so many institutions that have to buy this paper. especially bills and we will see far fewer bills issued or far less issuance in terms of bills. you could see prices rise and others fall. robinhood shares are rallying. it is now trading way above the ipo price of the eight dollars. that didn't take long. dave wilson is here looking at the come back. dave: basically it was one week ago that the shares were getting

pitched to investors and initially sold. trading started the next day. yesterday, we saw them up 24%. today up as much as 82%. along with the surge in price, you saw a rebound in volume. the first day, $102.5 million. yes -- today, we passed that. 108 million shares. it really does show you there is pouring into the stock. ultimately, robinhood set aside so many shares with customers when they went public. there wasn't the demand outside the initial public offering you

would think with a lot of other companies. that is according to the wall street journal. the shares bought by individual investors, compare that with 140 million or so for snap. matt: we should be clear retail investors took up 25% of the ipo. dave: the point is it's the shares once they start trading in the marketplace, that's where the smaller investors weren't because the ones who wanted to buy got it from robinhood. that's the thing that may well be influencing the rebound we are seeing in shares. amanda: we should note it is not the first time that large ipo's fall after the first day of trading. what does this pattern suggest? we are seeing this massive increase. dave: you are seeing quite the recovery by any standard. within a week to get back above

the ipo price. you can see recovery, but they tend to take a few weeks. five to seven weeks at least. to see the reversal in robinhood, it leaves you wondering. this is the trading app that became an impetus for the meme stocks. you have to wonder whether robinhood itself has become a meme stock. matt: absolutely. you have looked on wall street. -- wall street bets. i checked out the website as well. they are still a little bit angry about when robinhood said you could only sell the stock you can't buy it, because that doesn't lead to a lot of upwards price action. dave: it's going back to january

will we saw the likes of gamestop and meme stocks with smaller investors piling it. people do have long memories. the same time, it's clear there is something more going on. matt: one of the ipo's that fell, we are going to hear from them. i want to quickly point out, we told you moments ago that the new york auto show has been canceled because of the increased spread of the alta variate of covid. this is -- because of the delta variant. this is a big deal for the city into the auto world. there was going to be a lot of firsts in terms of new cars. new york has reported 3001 hundred 15 new virus cases.

seven new covid death. the hospitalizations for covid in new york have risen to nine hundred two. the new york auto show will now be canceled. it is not clear whether it will be held virtually or what the deal is going to be. coming up, a correction on the horizon. one thinks investors shouldn't wait for a selloff to position themselves for a coming correction. that's coming up. this is bloomberg. ♪

♪ amanda: welcome back. citigroup downgraded stocks because of the fed's actions, it is in keeping with the view of our next guest. i know you think there could be a sizable correction heading our way. great to have you with us. the s&p 500, what is your current thinking in terms of the target you are looking at and what happens next? >> i have been coming on your show for many months. i have been telling you to buy the dip. that has been exec with the right thing to do. i moderated that call on june 2

woman last spoke and i said if this is a baseball game, we are in the seventh or eighth inning of a nine inning game. in june with the s&p, i said look for a move to 4500 because that is basically the final target off march 2020 lows and that is exactly what has happened. we are at a point where the most charitable thing i can say about the u.s. equity market is the risks and rewards are symmetric. there is just as much downside as upside and that's a difficult thing for people to get their arms around. there is a sense that we are at the beginning of something. millions of jobs have been killed since the pandemic and inflation has become an issue. that is not something we have talked about for years. what people don't understand is that these markets are great

simulators of information. the reason we rallied april through july in 2020 is the market was pricing in this recovery. matt: i see the headlines on the new york auto show. i care about cars more than the average bear, but it's still a big deal in terms of an entire industry coming to the city to do business has decided to weeks out there going to cancel it. are you concerned? >> absolutely. the higher the market goes and the less margin of error there is. if we are at or around all-time highs, a lot of things have to go right and only one or two things have to go wrong to have a significant pullback. the delta variant and the whole covid situation, that is just one of a number of different things.

some of the economic news has been disappointing lately. it's not an exercise in trying to tip the market and say what is going to be the final trade in the s&p. that is a loser's game. the exercise is about trying to figure out rally. at what point do i get to, there's just as much downside as upside. i think we are there. woman get to that point in the rally, that's only take a step back, prepare for the possibility of retraction. amanda: i like the phrase you use to be in harvest mode. there are couple of groups that you would say would be a place to hang out. one is industrials. let's start with what lies

ahead. do you think there's going to be opportunity here? >> i have had some calls going back to june 2020, then we went to the xls and xl i to outperform the s&p. i got up the last show in june, but it shows a good resilience. in and environment where rates are rising and the economy is coming back but it's not due to a spike in inflation, the markets do well. the xlf does relatively well. xli similar story.

the one i like the best is that smh. if you look at the major indices now, nasdaq is clearly the strongest. tech is going to outperform. amanda: a good call on the smh it has had its best run since october. coming up, we are watching shares of moderna. investors are still watching for earnings as a sign of the covid boost coming up. coming up we will have a new guest. this is bloomberg. ♪

matt: this is "bloomberg markets." the pandemic is still in focus for everyone. moderna is set report earnings tomorrow. joining us now is a senior research analyst. thank you for joining us. we have just gotten headlines about increased delta cases here in new york. the new york auto show has been canceled just two weeks out. the pandemic is coming back into focus for everyone. what is moderna want to look like when we get the results? >> the things we are looking out for our further advancements with their trials. they have been running clinical trials on the youth population

being able to take the vaccine for safety and efficacy. we are also looking for updates regarding the smaller dose that is going to be potentially used for a booster in the event that a booster is needed. what we are also looking out for beyond the pandemic and covid-19 vaccine is other updates from the company on things like flu vaccine. rsv is on the faster track now. they have a huge pipeline of other mrna technology based therapeutics that are largely de-risk. amanda: that is going to be an important point. they are coming out with their first profitable quarter this year. it is benefiting as are others from the surge in volume related to covid. what is the next step for this

country -- company? how important for a revenue outlook perspective is that? >> if you compare them to other therapeutic companies, often a bio tech startup will have one medicine that are going after. moderna has been well over the last decade building a platform. they are fully automated, fully digitized. what they have created as a platform through which many mrna therapies can come to market. we have seen one and what we have in the pipeline is several others, vaccines. have a head and neck cancer candidate. they have not de-risk mrna, but also the delivery. it's hard to get a drug into the

human body and go where it needs to go. they are proving their technology is able to work with the covid vaccine. other therapies of their state utilize the technology are also slightly de-risk. matt: the analyst recommendations page on the bloomberg shows the 12 month price target is $207. the last price was $420. more than double the price target. why isn't the analyst community more excited? >> many will argue that the company has had its run. they're looking at just the coronavirus still part of the story. they are not looking at the much larger part of the story.

once you realize that this is a fully automated digitized ai enabled platform, it gives you a long tail of growth over the next decade. amanda: there's a lot of renewed interest in the health care space. we talk about the investing horizon, what is your thinking process or how long do you have to be in it to justify investment in the space? >> in general, we are not just looking at therapeutics, we are looking across the health care innovations. there's telehealth, data analytics. pigott medical problems now. an aging population. there aren't enough health care workers. this is creating a huge opportunity for disruption in innovation. if you want to get behind the investment opportunities, you want to invest in a portfolio of

these products. htec etf has many of these innovative companies in the telehealth space. 3d printing, liquid biopsy. it's hard to factor one or two stock picks. matt: thank you very much. nina is a senior research analyst and her company puts out and etf. i'm matt miller. this is bloomberg. ♪

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mark: governor cuomo is facing

enormous pressure to resign even from within his own party. the state attorney general's investigation found the governor sexually harassed nearly one dozen women in his office including a state trooper on his security detail. he could face criminal charges. he says he never touched anyone inappropriately or made sexual advances. there were 4 million new covid cases reported globally last week. the who said today infections have been increasing for more than a month although the worldwide number of deaths dropped by 8%. more than 130 countries have now reported cases of the delta variant first reported in india. i'm mark crumpton with bloomberg's "first word news." ♪ >>