welcome to bloomberg commodities edge. let's get right to data dig. i want to drill down into the impact of the delta variant on oil, here in the u.s. one part of the inventory data that added fuel to the selloff is gasoline stockpiles. overall they jumped about 696,000 barrels, the first increase in amount. and you have fueled demand falling for a second week. we may not be driving as much because of delta. lots of commodity news on the company front. bhp is walking away from oil and gas, emerging that part of the business with woodside petroleum. this is a huge lng market player, creating one of the top five players combining those assets. part of the need for it is

demand for gas will grow faster than any other fossil fuel over the next decade as asian nations try to accelerate the shift to reduce greenhouse gas emissions. there was one other hiccup for the commodity and the world economy this week, the world's third busiest container port partially closed for a fourth day. this area of congestion, one area was shot last week after a dock worker came down with covid. just one terminal, but you can imagine how this will continue because herd immunity is quite far off. ion or plunging, copper plunging to a low. andrew, i'm giving you a choice. delta, stronger dollar, china, none of the above. what is going on with iron ore? >> it is pretty idiosyncratic. the steel cuts that the

implemented have started to come through. at the same time, you have some supply recovery. they completely switched the s&p on its head. the market has been an undeniable surplus in the second half of the year. we don't really see that a beating until the second half of next year when supply takes a seasonal dip. alix: we talk about don't fight the fed. this feels like don't like china. much if this is curbing steel production because they want to deal with their emissions? >> 100%. it is interesting because you can pull two levers, supply-side lever, which is what they are doing, but at the same time, they are curbing steel exports.

while that is bearish for iron ore because you are producing the absolute level of steel production, it is bullish for the rest of the world's steel markets, which is why you are seeing prices continuing to hover at elevated levels. when you take away that supply from china, you have to make up for it in other places. there is not that much spare supply in the rest of the world's markets to immediately plug that whole. -- hole. alix: appreciate it, andrew . time for commodity in chief. today it is the founder and ceo of diamond standard. buying a diamond can be very hard work. miners cell rough cuts to manufacturers who then polish the diamond, which is then certified, and then it is sold to a dealer and then sold you. they are trying to create a faster way to own and trade that jim.

coin. each has the same care it, and clarity and is identified by a blockchain chip. the company buys the diamond at auction, creates these equal coins, and then sells them to investors. the first ones were priced for sale at $5,000. the company announced an additional $50 million worth of coins and five tranches of $10 million each. the first bunch will cost $5,750 per coin, and each additional series will price at market rates. standard diamond also has an etf coming to the niceta, and soon you can bid on diamond futures. i recently sat down with the founder and ceo of diamond standard, and asked him about the addressable market. >> diamonds are the forgotten

commodity. if you look at gold, silver, platinum, palladium, even rhodium, investors own at least 15% of the global above ground supply. however, institutional investors own nearly 0% of diamonds. now that we have made diamonds liquid, fungible, very low transaction friction, public price discovery, and regulator approved, and with the futures we have filed an etf, we believe institutional and individual investors will acquire 50% of the supply of diamonds. i don't know how long it takes but that is almost $200 billion worth. alix: what is the liquidity light from what you have going on right now? >> what is fascinating about the coins is they are all the same. it is like gold. we don't set the price, the market does. right now there are only $125 million approved by our

regulators. we expect that to be increased to about $500 million by the end of the year and we will continue supplying the commodity to the market. as we do that, liquidity will build. alix: what is it like getting all the diamonds? all of this is predicated on you getting enough supply. >> the way we make the commodity is interesting. we are the first and only market maker for loose diamonds. we bid on a regular basis on 16 million varieties of diamonds. we cannot buy 60 million diamonds, but we do buy a public and statistically valid sample of all 16 million. there has never been an electronic diamond exchange, so we built one, a diamond standard exchange, in partnership with 100 of the world's largest vendors. so far we have made over a million bids on the exchange and

we have bought tens of thousands of diamonds from eight countries around the world so far. alix: can we consider diamonds green? how does fit in the world of decarbonization and the esg push? >> 75% of all the diamonds that will ever exist are already owned by consumers. the new supply of diamonds is only about 40 billion a year, compared to 1.2 trillion above ground. we have to buy, over time, the majority of our diamonds from consumers. we are benefiting everybody who has inherited a diamond, got divorced, simply did not use their jewelry anymore. we are creating much more price discovery, liquidity, and fairness. alix: how important is being able to store, track, where your diamond comes from? where does that come in? >> we are very much cleaning up the entire supply chain.

we force all of our suppliers to be esg compliant, anti-slavery, which is a serious problem still, adhere to the kimberly process, for example, to avoid any conflict diamonds. we believe we are benefiting all members of that supply chain. alix: that was my interview with a diamond standard ceo. time for commodity kicker. it is not necessarily a fun one. there is a water crisis right now. u.s. officials, this week, declaring the first ever water shortage at lake mead, the largest reservoir on the colorado river. this will result in some water cuts this year and next year. water levels are projected to drop so low that it cannot meet the energy demands of communities in the west. this underscores the acute water challenge for the reason -- region.

the big question is whether the southwest can survive with less water. that wraps it up for bloomberg's commodity edge. catch us every thursday at 1:00 in new york. this is bloomberg. ♪

matt: welcome to bloomberg markets. i'm matt miller. coming up, we will speak with the hyundai global ceo of jose munoz about the chip shortage hitting automakers. plus, dr. patrick soon-shiong, immunitybio founder and part lakers owner, joins us to talk about the booster shot push and

to discuss the mask mandate with miami mayor francis suarez. a lot coming up in the next 49 minutes. let's look at what is going on in the markets. we have seen some incredible movement today. right now we see gains in the s&p 500, which is amazing when you consider european equity indexes falling 3% or more in early trading this morning. it felt like there was a real turnaround to the downside. markets have been off the past couple of days but nothing like what we have seen now. investors piling into safe haven trade, the u.s. dollar considered one of those. the dollar index up half a percent. the highest level we have seen since at least november of last year. we also saw a downturn in crude. at one point, trading at a $65 handle. i thought it would be interesting to put nvidia in

there. one of the companies really holding the s&p above water right now. it is not one of the mega cap tech stocks but it is moving up more than 5% on positive reaction to its demand forecast. the chip shortage is a part of the conversation. they make those chips and a lot of people want the product they have got. let's talk about hyundai motor america, reporting its fifth consecutive month of double-digit sales. jose munoz joins us might now. he is the global chief operating officer. ed ludlow is with us from our san francisco office. hosea, i need to get your take on chips. such disturbing news from toyota, saying the chip shortage is worsening.

yesterday, i talked to the coo of nissan, and he says there is no visibility, he cannot tell us when there will be a recovery in chips. what do you see any hyundai? jose: thank you for having me. it is a special day for us because we are launching the all-new elantra m. we are supposed be doing this at the new york auto show, but it got canceled. getting to your point, i think hyundai has done a better job than other competitors from the very beginning because we were not only look at what was happening in the u.s. market, but we were monitoring globally. we decided not to cut any orders. having said that, we have also been impacted by the chip shortage is. -- shortages. probably less than our

competitors but in the same situation. we have limited, if any, visibility on what will happen. we believe the worst is past. we have seen shortages of 5% to 20% reduction compared to our initial plans, but we think in september the situation will get slightly better and better. our q4 projection is quite strong so far. ed: it seems like it is difficult at the moment to be an automaker. i don't know if i'm supposed to have sympathy for you, but you have the chip shortage, an interesting dynamic between new and used cars, and rising commodity prices. what is it that keeps you awake at night? jose: it is an opportunity time. at our company, we see a challenging times as an opportunity to do better.

i have learned to differentiate the supply and demand. in a time of uncertain supply, the most important thing is to focus on demand. we are monitoring the servant from our customers, coming at record levels. as long as you have good demand out there, soon or realize, you will realize the good results. what keeps me awake at night is the fact that you need to apply 100% flexibility on a daily basis. you literally don't know which component you will receive to produce on a given day. every day we have to check what arrives, and based on that you have to adjust your production plan. in the past you may do this on a monthly basis, but now you have to do it daily. the good thing is the demand is there, the margins are quite good. dealers are making more money

than ever before. consumers want access to the new products. and a new way to sell products has developed. we try to support our dealer so that they can sell what they have on inventory but also in the pipeline. matt: hyundai really came into my world when you brought out the genesis. it was kind of the pinnacle of affordable luxury. they are not cheap, though. i think they start at $80,000. what is your pricing power in the market? jose: let me tell you, hyundai has been growing a lot year to date, by 44%, but genesis, 178%, which is very solid for us. we launched the gb80 and then recently the gb70. if you look at the price

evolution, we have been closing the pricing gap to our competitors by focusing on the quality of our products, the features and design of the products. we see a lot of opportunity. the evolution of the genesis brand is going well. quite positive from that end. ed: like matt, i had a hyundai suv as a kid, but today with the elantra, you are bringing out a sedan targeting the north american market. what is the strategy for you guys, electric vacation, -- electrification, how do you transition long-term your range of models? jose: i am glad to know that you started with a hyundai vehicle

some time ago. the strategy is simple, we are committed to the future. as such, we mean strong commitments when it cams to -- comes to electrification. we are planning to sell one million electric five vehicles by 2050 as the hyundai motor group. we are also supporting president biden's announcement to achieve 40 to 50% vehicle sales being zero emissions. we also want to achieve a share of ev's of 10%. we have definitely decided to launch a number of electrified technologies. we already have many like the kona ev, ionic, but then we

started with the transition by launching hybrids and plug-in hybrids. the brand-new tucson we just launched will have i versions and also hybrid and plug-in hybrid versions. matt: are you going to -- o know i know the elantra is a bigger car but don't you bigger margins on suv's? jose: our plan is to maintain a solid portfolio of passenger cars, which is different from some of our competitors. we are finding consumers still want those cars. it is the best way to capture them to our franchise. as we treat them properly, they will evolve into bigger cars, eventually into the genesis franchise. this is where the brand plays a key role.

it is helping us to enhance our image and compete head-to-head with our major japanese competitors. in fact, we are now the third player in the market, which was not the case a few years ago. a launcher -- elantra in particular will play a key role, and then we will evolve through the portfolio into bigger passenger cars, and then suv's, in the future with genesis. matt: i have a friend who was lucky enough to find a santa fe that was accidentally shipped to the u.s. with a stick shift transmission and he loved the car. jose munoz, hyundai global chief operating officer. thanks to ed ludlow as well. shares of robinhood tumble after the brokerage warns that the crypto surge it saw in q2 may not last. that is our stock of the hour. this is bloomberg.

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matt: time for our stock of the hour. robinhood's first earnings report as a public company came with a morning that one of its key product may be on the way down. dave wilson has a look. dave: you are talking about a company that went public a few weeks ago, came out with its first quarterly report, and revenue more than doubled at robinhood for a year ago, but there lawson's -- losses widened. that is the set up. 80% of robinhood's revenue in the quarter came from transactions. when you are thinking of a key product, you are thinking meme stocks, but not exactly.

they made more from cryptocurrencies there and they did from shares or equity options. the ceo said on a conference call that the first trade by new subscribers it was more likely crypto than equities for the first time ever. there are a whole lot more customers, no question. 22.5 million funded accounts. that was more than double from year ago. but this quarter, robinhood is expecting considerably fewer funded accounts, in its words, to be added. they are looking at potential revenue to decline and they attribute that to seasonal headwinds and lower trading activity across the region. matt: of course, they warned about this in the prospectus. it is a big revenue driver, but i wonder on margins, how much they make trading dogecoin

compared to the orders they get for stock trading. ed: also looking at the way the crypto market has unfolded in terms of the amount of activity, you see that it peaked in may. july was down 60%. we are getting back to where we were in july in august. you mention dogecoin, that was 62% of their crypto revenue last quarter. you have to hope that people keep on getting in on the joke, you might say. matt: robinhood still trading at 45. they went public at 38. we will keep track of this story and the rest of the market. i'm matt miller.

mark: i'm mark crumpton with bloomberg first word news. in washington, u.s. capitol

police are investigating a reported bomb threat near the library of congress. the area is close to the capitol and congressional office buildings. there are reports that a man drove a truck to the scene and claimed he had an explosive this device. authorities are said to be in communication with the driver. the pentagon says they now have 5500 troops at the airport in kabul had have evacuated 2000 people over the last day. they have been flown out since saturday. additional gates have been opened but reports continue to say that the taliban is hindering some people from reaching the airport. in germany, the green for candidate for chancellor says the west has an obligation to take in refugees from afghanistan. she spoke with bloomberg while at a campaign event. >> we as a common international

community have to stand together because nato troops have the responsibility to save those people who have supported the nato troops in afghanistan being translators, cooks, or journalists. nato troops have to ensure that these people can come to the airport, meaning also talking to the taliban to save those people who trusted us. mark: a number of european politicians say they want to avoid a situation like in 2015 when a wave of asylum-seekers from the middle east came to europe. more firefighters are needed in california. there are more than 10,000 now battling wildfires in the state but they are having a hard time finding additional firefighters as blazes reach across the western united states and canada. 12 major fires are now burning in california. 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'm mark crumpton. this is bloomberg.

♪ greg: i'm greg bonnell. welcome to bloomberg markets. matt: i'm matt miller. we welcome our bloomberg and bnn bloomberg audiences. here are the top stories we are following for you from around the world. biden's booster push. we will discuss the administration's push to make covid vaccinations available to all americans next month. we will discuss with dr. patrick soon-shiong, founder of immunitybio. and the mask mandate debate. the largest school district in florida votes to defy governor desantis and require masks for students. we discussed the growing chorus to opposition of such bans, with

miami mayor francis suarez. new jersey's american dream megamall is once again sinking in debt. more on the three live in dollar -- $3 billion debt load in the program. greg: i was bracing for a rough day on the markets but things have turned in the other direction. the s&p 500 finding its way into positive territory. the nasdaq is making gains. the s&p 500, maybe a moment of indecision. it has been interesting. we have these macro themes weighing on us before the trading day. that that was saying that they will have to do tapering, but that would take liquidity out of the system. at the same time, global crude prices under pressure. commodities and industrial

metals under pressure. on the nasdaq, a lot of names with therapeutics and pharmaceuticals. it seems some interest in that space as covid-19 gets harder to deal with with the delta variant. the s&p 500 at breakeven after being up a third of a percent half an hour ago. we were trying to figure out the direction of these markets. earlier today, you spoke with matt maley. >> we had a pullback of more than 5%. 2017 is the only year in the past decade that we have not had a 10% correction. the odds of having a correction every year are very high. people have gotten lulled into the fact that every dip i have to buy. people just need to be more careful. matt: he also added he thinks it

is likely to be more than just a 5%. as you said, we were heading for that dip this morning. when i came in for the 5:00 a.m. new york show, european markets were already down 3% or more and everyone was rushing for safe havens. it turns out we had a little bit of a salvage operation going on in the u.s.. a lot of times you will see futures down in the morning and then investors come in and buy the dip. light now, the s&p is unchanged. the markets are paying attention to the rise in covid cases. that coupled with the fed minutes is what brought about the drops this morning. the biden announced this week it will make booster shots available to all vaccinated adults starting september 20. the move is a massive expansion of a program previously limited to those with weakened immune

systems. our next guest is backing a vaccine candidate of his own that he sees as a potential universal booster of other pandemic shots. dr. patrick soon-shiong, executive chairman of immunitybio joins us now to talk about this and other issues. appreciate your time. what do you think of boosters? will this increase efficacy against the delta variant? patrick: that is what we are pursuing. we are in our phase three trial right now. we decided to go into the heart of the storm. the delta variant now and soon the lambda variant. this inevitability of the virus changing against antibodies means you need both antibodies and t cells. we have launched phase 1, 2, 3 trials in south africa, boosting the johnson & johnson and pfizer vaccines. the first patients will be injected this week.

greg: i felt pretty good about the fact that i got double vaccinated by the time the summer started, but delta is a different challenge. i had a sobering conversation on another show yesterday with someone and they said they are not sure that a third mrna shot is the ticket, that it may have to be something else. is this the point that we are entering now in the pandemic? patrick: i have been screaming for the last year that just trying to block the virus with an antibody is insufficient. you have to clear the infected cell, not only to prevent transmission but to give you long-term immunity. the innards of the virus is what we are focused on. i am excited to say our preclinical data shows that we can protect all the way to

the delta variant. the combination of an antibody vaccine and t cell vaccine i think will be the answer. matt: why doesn't the fda fully approve the covid-19 vaccines out there? so many are hesitant to take vaccine, a lot of them are concerned because of this information have seen on social media, but others may be looking at the fda and saying, i'm not going to take it until they approve it. patrick: the issue when it comes to beck's analogy is long-term immunity. i cannot speak to the decision-making process, but i believe everyone should get the vaccine. it definitely reduces death risk. but we need to go now to what i call the second-generation vaccines. immunitybio is taking the approach that we will become the universal boost. long-term we need to figure out a rna and dna combination.

rna looks to give you the best antibodies and dna can give you t cells. right now, we are taking our dna vaccine and making that the third booster, so to speak, of both the johnson and johnson and pfizer vaccine in south africa. greg: to get people on board with this, is there a mind shift needed? for a while we were hopeful that this first round of vaccines were the answer. did that simply buy us time to get to other solutions, like the kind of thing that you are working on? patrick: that is what i was concerned about. this first generation of antibody vaccines is really important because it reduces the death rate, the load in the hospitals, but it does not affect transmission, meeting the ongoing pandemic. what is worse, those that are not vaccinated, as you can see,

will continue this pandemic. if you add to that, that the virus will mutate, it is so important and urgent that these next generation vaccine now come to form. unfortunately, with the supply chain being sucked up by the first generation, we are sort of in a vicious circle. we cannot produce enough of the second-generation. that is where we are at immunitybio. we have taken the position where we need a country by country time, so we started in south africa. matt: i am sure it is way down on your list of concerns but you famously own a stake in the lakers. i wonder what you think about fans coming to the games this year. you just added russell russ burke -- westbrook in the off-season. he will be a draw, but will

people have to wear a mask when they watch? patrick: this is the other disconcerting fact. when you look at it scientifically and logically, when weaver concerned in the early stages of the pandemic, ace of the medic infections, that you could be a symptom medic and spread, all of a sudden the cd said wear masks. when people get vaccinated versus those that are on vaccinated and the person that is vaccinated is infected, this delta variant has maybe five to 1000 times more viral load in your nose, so it will only affect the unvaccinated. even those who are fully vaccinated, people have breakthrough infections. the concept of not wear masks is very illogical. it is even worse now than it was at the beginning of the pandemic. matt: unless you say players have to be vaccinated and you have to be vaccinated to come and get tickets to the game.

patrick: vaccinated does not mean that you prevent transmission, that is the point. matt: but you will not end up in the hospital, you will not take a bed away from a cancer patient. patrick: putting a mascot is not just for yourself but your fellow man. it is to prevent transmission to others, so we can stop the cycle of the pandemic. i personally advocate masking inside or outside. it may not be what is advocated in our country but i think it is the wrong decision. matt: great to get some time with you. thank you for joining us, dr. patrick soon-shiong, founder and executive chairman of immunitybio. this is bloomberg. ♪

matt: this is bloomberg markets. i'm matt miller with greg bonnell. work on the legacy miami world center is underway, according to documents filed. the 50-story tower is planned to rise 681 feet above ground, 691 feet above sea level, making it the second tallest at the world center. the developer said it is also the world's first pandemic ready, all in one residential, hotel, skyscraper. we welcome miami mayor francis suarez, and daniel kodsi, royal palm companies ceo. thank you for joining us.

is this a 55-story tower or is that the one coming next? >> 55 stories. matt: even bigger than i imagined. what is a covid-conscious ready tower? >> when we were designing this project, as we were designing, we got hit by covid. part of this project was designed on the future. the components of this project were built on futures. we will be dealing with pandemics in the future. how do you make this more pandemic ready in case you have pandemics in the world again? we looked at different systems, we looked at different components of the building,

antimicrobial materials, heat rays to kill bacteria, adding different components into the medical center in the hotel and residency. this is a place where people could one day shelter-in-place. imagine having a medical center near your hotel room, where you have doctors, pharmacy, even room service. greg: mixed use always makes sense when you are building new structures in terms of amenities. sometimes in my professional career, i am getting ready for one set of challenges and it is not what i expect. the planet is also facing climate change, other rushers. how are you sure that you are building the building of the future when you're not sure what is coming at you? daniel: when we look at climate change, in florida, we have been dealing with hurricanes, climate.

our buildings are structured for major hurricanes, over 200 mile-per-hour wind. the glass are put in wind tunnels, they throw materials at the glass. you are not going to be able to break it with a hammer. we are prepared for any kind of climate issues, whether it is climate change or sea level rise. we have addressed those concerns. matt: unfortunately, that was the fun part, and i have to get to the difficult part of the interview with you. when it comes to masking, you have a governor who wants to make it more of a personal choice. of course, that puts other kids and by extension other families, elderly people, the sick at risk. how do you deal with that situation?

francis: i have been clear from the beginning of the pandemic as to what my position is. my position is what his position was at the beginning of the pandemic. he allowed municipalities and counties to make decisions that they thought were beneficial to them, understanding that cities in florida are very diverse and different. he even came down to miami once at my request and told people to mask and follow the local rules. i just want to go back to implementing a policy which is frankly a republican policy of local control. the second piece of it, i have shown him data that demonstrated unequivocally that masks work. it reduced cases in the summer last year by 90%. that is compelling evidence.

from my perspective, i want all of our decisions to be driven by the data and science. i know that people are frustrated with politicians acting like doctors, doctors acting like politicians, but listen to your local doctors. they will be the persons that you listen to before and after this pandemic. greg: a clear break from the governor's office. do you lament the challenges of the pandemic, that it has become so politicized, even something so simple as wearing a mask? francis: to be fair, it has become political on both sides. one of the reasons why i was elected by a large majority of my constituents is because they look at these problems with perspective. if we all do that, we will be better suited. matt: we just spoke to dr.

patrick soon-shiong, who owns a piece of the lakers. do you think the heat can bring it to them, mr. mayor? francis: we just got kyle lowery. never put it past pat riley. no one expected that team to get out of the first round. i would not put it past pat and eric's ball struck. we can put it to the lakers, for sure. matt: thank you so much. we are not making a bet. we are just asking for the miami mayor's advice. francis suarez alongside daniel kodsi, royal palm companies ceo. thank you for joining us. we have a couple of unfortunate headlines to break. yet another senator has tested positive for covid, senator

king. he was also vaccinated. earlier, we told you senator wicker tested positive as well, also fully vaccinated. you can see the governor of texas, a number of breakthrough cases coming in the top ranks of government. we hope that the country's mayors stay safe. this is bloomberg. ♪

greg: i have never been a big fan of the mall. i don't like the crowds or the lights. an interesting story out of new jersey that caught my attention. this mega mall, the american dream, doing nothing but draining cash. $3 billion of debt.

i cannot wrap my head around how you have $3 billion of debt in a mall. matt: i have always been a huge fan of malls, growing up with " the fast times at ridgemont high,"eo arcade was there. i don't understand why this model does not succeed. they have a roller coaster, waterpark, indoor ski slope. i would go there in a heartbeat. this is a little bit odd. you are actually closer to this mall than i am because it is in new jersey. this is bloomberg. ♪

mark: and washington, d.c., the u.s. capitol police are

investigating a bomb threat near the library of congress. the area is close to the capitol. nearby buildings were evacuated. there are reports a man drove a truck to the scene and claimed he had an explosive device. authorities are said to be commit kitty with the driver. a british study says, 19 vaccines are less effective against the delta variant. pfizer and biontech lost effectiveness in the last 90 days after vaccination. it also showed the shot, as well as the one made by astrazeneca, staved off the majority of infections. the results are likely to increase calls for booster shots. president biden defending his poise to give booster shots, countering criticism the move is unfair to other nations still struggling to get first doses of a vaccine.