grace times between great britain and northern ireland. the issue remains one of the most contentious. british officials want the european union to rewrite part of the deal that effectively keeps northern ireland in the blocks customs area. the taliban has announced a new government in afghanistan filled with senior officials from the militant group. one of them, the acting interior minister is the leader of a u.s.-designated terrorist group. the little-known head of that council was named acting prime minister. a woman who traded at its highest levels following -- in new guinea. china is a major importer of the material. the leader of the coup called for continuity of production in mining and said existing mine agreements would be honored. 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'm mark crumpton. this is bloomberg. >> i'm romaine bostick in for matt miller. let's get right to the top stories we are following from around the world. el salvador starting an independent currency as legal tender. we will update you on the currencies movement throughout the hour. the man who was in the room just a few months ago. wall street back at the office. what the return to the office looks like for corporate america

as the delta variant upends plans to safely return to work. speaking of the delta variant, we will talk about the latest, from rolling out booster shots with an associate professor at the department of epidemiology at the johns hopkins school of public health. let's check out what's happening in the markets. a shortened week because of the labor day holiday. down about .2% on the s&p 500. a modest bid coming in for some discretionary names, but that's largely casino stocks and big cap tech stocks. you are seeing persistent dollar strength for one single day and a lot of it seems to be tied in with some of the movements we see on the yield curve. a 10 year yield right now, it may not seem like much but the moves we have gotten, particularly post-fridays job

reports, we were expecting an opposite move in yields. another thing catching people off guard's what is going on in crypto -- this was the day el salvador was embracing bitcoin as legal tender in the country. that was supposed to drive prices higher. there was a little bit of a run-up higher but you are seeing a pullback. we were down more than 10% as measured by bloomberg pricing, down now 8.5 percent. let's turn back to the other big story -- the first day after the labor day holiday where wall street banks are supposed to go back to the office. but the spread of the delta variant upended some of those plans. i seem to remember back in june that you were standing in front of goldman sachs headquarters with an umbrella and it was all about the return to work of all of these anchors and there were people going back to work. this week was supposed to be the

official return for these banks. >> it's not happening anywhere near people thought it would. on top of that, though ones who pushed back plans to october are wondering if they should push back plans even further. the ones that have headlines in the middle, take morgan stanley, the idea is for some flexibility, we wanted you back and it has been about 50% back in the office, it has not been a perfect science. some banks have higher numbers than others, but they are inconsistent in terms of what their demand czar. romaine: have they made it clear to employees about what is expected or what the next parameters are going to be? sonali: in terms of what is demanded, it's a big question. we are nearing the end of the year. trading volumes are much lower and there are concerns about the market. is your bonus dependent on

whether you are going to be there making calls in front of your boss or are you getting flexibility? if you have childcare issues, of course. romaine: what's the overlap with different departments direct these are sprawling operations and i would think some of these departments you would want to make sure your employees are there so you could oversee them and other departments could provide more flexibility. sonali: you see the difference between banks -- a bank like wells fargo has consistently pushed back and made it clear they are not taking people come back before october. goldman has had people in -- wear our mask and come in. the idea that m&a is done better and young bankers are trained better when people are in the office, trading is done more aggressively, risk-taking is more possible and people are there. romaine: did you see the interview from the tpi cap ceo? you can't take risks unless you

are in the office -- is that the gist of it? sonali: it's an interesting idea. you see people bringing the traders back and many banks, there are essentially war rooms being made for these traders who needed to be there because things are happening so quickly. but the question comes up again as you have folks like j.p. morgan warning of year and funding stresses, the worry about the underlying market makes you want your people close by and on call. romaine: do you plan to go out and stand outside these banks once again and corral these people? sonali: next week, there are two conferences -- there's salt and that digital asset conference wringing in people from all over the world. so while this week is very muted, next week, there will be people running around. romaine: i hope it doesn't rain on them. coming up on this program, we will talk about the european union trying to phase out

internal combustion engines by 2035. lamborghini looks to the fed up its hybrid lineup. we will hear from its ceo. as we had to break, supply chain disruptions in the global chip shortage or front and center at the motor show in munich. what will the impact look like? we spoke to an executive at the first major in personal car show since the start of the pandemic. you don't want to miss it. >> we hope q3 this year, which has been hampered by a downs in malaysia, that we can start to get back on track again in the fourth quarter. semi conductors, we have to rethink the whole supply chain because of the demand of semi conductors. it will be even higher in the future, therefore we are working with colleagues from the

volkswagen group to rethink how to organize the supply chain. >> we will remain in shortages for the next month or even years because semi conductors are in high demand and the internet of things is growing. it will be probably a bottleneck for the next month and years to come. >> chip suppliers and producers are telling us it will be with us through next year. >> it is here to stay, the problem, for many months. but we are intensely working with our suppliers to compensate the effects for our customers. ♪

romaine: this is bloomberg markets.

matt miller is on assignment and you will find out why. the european union looking to phase out internal combustion engines by 2035. lamborghini is looking to beef up its hybrid lineup. the ceo spoke with matt from the auto show in munich. >> 2022 will be the last year of combustion engines only. in two p3 and to before, we are going to hybridize all of our lineup. this is allowing us to cut co2 emissions starting from 2025 by at least 50% in comparison to today. so we are engaged. matt: i feel like i'm going to pass out -- what is that going

to be like -- what is the powertrain going to be? >> it will be a complete new car with a complete new name. we will have a new ve 12 and it will be hybridized. it will be a plug-in hybrid. more than this i cannot tell you. matt: the big concern has been the chip shortage, the supply chain. it is not getting better. how does it look from your vantage point? >> so far, so good. we have no shortage at all. but we are not touched by the shortage of the chips. keep in mind we are not a big car manufacturer. we will be at 8000 something. we don't know exactly, but it will be a wonderful year for lamborghini and we are looking forward to another best year in 2022. matt: you just flew out from

milan and there was a story everyone was talking about, trying to get an exemption for lamborghini and ferrari for high end super carmakers. to keep producing internal combustion engines past 2035. do you think it will work? >> it's not about 2035. it's not decided yet. it's not only about europe. we have to be prepared to be compliant worldwide. to have an exemption, we have to work with what the legislator is telling us. it will be even bigger after 2030, so we have to work with the legislation which will be in place. hybridization is the first step for this decade and for the super sports car, this will work out and we will see what we are going to do.

we will have a fourth model which will be a full electric car, which we will launch in 2027. the sports model, we are looking for the opportunity of having synthetic fuel after 2030. this could be an opportunity to keep internal combustion's with hybrids alive. romaine: the ceo of lamborghini speaking with our president roving reporter on sports cars, matt miller. let's take a look at some of the biggest business stories in the news. plans to raise as much as six under $22 million -- the company backed by tennis star roger federer. it was valued around $5 billion. it requires -- it has acquired a bit of a cult following.

a $3.5 billion deal in cash would add an operation with $5.4 trillion with assets under custody. they are tracking a margin because of expected earnings growth from that acquisition. amc said labor day weekend attendance at its theaters in the u.s. was bigger than in 2019. more than 2 million people watching movies thursday through sunday, the first time since reopening that amc has beaten comparable 2019 numbers. those are your business flash headlines. bitcoin going on a wild day, hitting its lowest level in about a month. el salvador's crypto rollout seems to be faltering on its first day here. in fairness, we should point out that bitcoin had a pretty nice run-up prior to the rollout of

this program by el salvador. i wonder if the downward moves we are seeing on bitcoin, whether it's more of a cell the news type of event? >> i think that is something -- by leading into the event and sell the facts. it still at levels we saw last week. in the grand scheme, the speculative cryptocurrency had been these big moves in either direction and are not really that shocking. the issues and some of the problems el salvador has may have caused a little bit of headlines but i think it's more a cell the news kind of event. >> talk about the issues they had -- it is now legal tender in el salvador and they essentially rolled out their own crypto wallet and gave people the

ability to start transacting in bitcoins. what issues are specific to that? >> they say they plan to spend more than 220 $5 million for adoptions, giving individuals $30 worth of bitcoin for people who download the app. but it is a government owned wallet that went off-line temporarily. there were a lot of issues going on and we saw some of that leak over, but there has been kind of a rollout that was a bit choppy. the government said it was something expected to happen when you make this big of a transition, that it will not be resolved in necessarily a day or even month and that's a long-term process they are trying to push in the country. romaine: a few moments ago, the president did tweet out that the wallet was back up and running. i'm curious about how investors

in the u.s. are looking to embrace this. it does add some degree of legitimacy that a formal, legitimate government would treat this as legal tender. >> i think it is really a test. if el salvador comes out and embraces it, that does help ulster crypt -- help bolster the cryptocurrency. as countries like panama look at unveiling cryptocurrencies. but if it is rocky rolling out, for the skeptics, it could give pause as skeptics moved to -- as countries move to embrace it or central banks try to embrace it and you see choppy news from the

citizens, that will want you to pump the brakes and get a better understanding of how you could implement it on a broader scale. romaine: helping us to track all the movements of bitcoin, down about 8.5 percent. coming up, we will discuss the latest on the covid crisis with an associate professor at the johns hopkins school of public health. this is bloomberg. ♪

romaine: this is bloomberg markets. i'm romaine bostick. we want to talk about the covid crisis and the delta variant. 75% of u.s. adults have received at least one dose of the covid-19 vaccine. this comes against the backdrop of the rise of the delta variant and experts revising down their forecast of economic growth

because of concerns about how the delta variant could hamper economic activity. my guest joins us now to talk about this. i'm curious as to this milestone that we reached, 75% of u.s. adults having gotten there one shot and the rise of the delta variant and how much the rise of the delta variant may have could be did to the rise in vaccinations. dr. dowdy: we did see a big uptick in the number of people getting the first shot. the key is for those people who have gotten the first shot, make sure you get the second win as well. we are still less then two thirds of adults getting fully vaccinated, especially with the delta variant, the key is that that second shot matters. romaine: for a lot of folks thinking about their second shot, we are also being told we may need a third booster dose

that the biden administration wants us to take and now we have heard from pouch and a few other professionals saying this may be the next course of action. is that what you think? dr. dowdy: i think on an individual level, getting a booster probably helps. but it's really the second shot, the full vaccine series that makes the biggest difference. it makes sense to get boosters, but i don't think that is going to be the priority as far as getting this pandemic under control. the first two doses are the most important. romaine: let's talk about it getting under control. i've seen some data and some commentary that seems to suggest the delta variant may have peaked. is that what you are seeing? dr. dowdy: when we are talking about cases in general and that delta variant, they are basically the same thing.

cases have, it looks like, peaked in those areas of the country where the most recent surge started off. arkansas, missouri, louisiana, etc. but they are still quite high and they are sold going up in other areas on that periphery. places like ohio are starting to see increases in their cases now. romaine: when we talk about the variants here, while each variant is scary to laypeople, there is a general sense that they won't necessarily be as deadly or as severe as the original variants? dr. dowdy: there is no reason to expect they will be more severe. there is no advantage to this virus to killing people. all they want to do is transmit from one person to the next. so there's lots of pressure to

be more transmissible, not necessarily more deadly. while we can expect any future variance to be more transmissible, there is no reason to think they would be more severe. romaine: any sense as to how long we will have to live with this? dr. dowdy: i guess it depends on what you mean by live with this. hopefully future waves will be much less severe than the last few we have seen. but we are still going to be navigating smaller waves of this disease for months and years to come. romaine: does that mean regular shots or boosters? dr. dowdy: not necessarily. the jury is still out on what sort of intervals are needed between booster shots. we expect at some point people will need boosters but there's a big difference between saying

people need them every six to eight months versus every three to five years. hopefully we will see that immunity last for a few months and we are not talking about every few months, but every few years. romaine: we are going to have to leave it there. dr. david dowdy from the johns hopkins school of like by cal. michael r. bloomberg is a founder of bloomberg lp and bloomberg news which supports the johns hopkins school of public health. much more ahead. let's take a quick check of where we stand on the markets on this tuesday afternoon. a shortened holiday week in the u.s., looking at stocks relatively weak. the dow jones industrial average down about .5%. this is bloomberg. ♪

mark: i'm mark crumpton with bloomberg's first word news. president biden is spending part of his day in new jersey and new york city, surveying the massive damage done by the remnants of hurricane ida. the president was briefed at the somerset county emergency management training center in hillsboro township, new jersey. the remnants of a ida caused tens of billions of dollars in estimated damage to public infrastructure and property in the region. the deaths of more than 40 people are linked to the storm system. the united states has reached a vaccination milestone -- 75% of adults in the u.s. have received at least one dose of covid-19 vaccine. the marker comes amid the delta variant wave. about 100,000 people are in the hospital with covid-19, with the majority of those said to be unvaccinated. in scotland, the first minister says her government is restarting work on plans for breaking away from the rest of the u.k. a referendum would be held by the end of 2020 three, but the

british government says it will not grant the legal permission to hold one. there was an unexpected jump in exports from china last month. exports rose almost 26% in dollar terms from one year earlier for a record 290 $4 billion. global demand remains resilient, especially from the u.s. and europe. it's likely retailers rot forward their christmas shopping efforts. 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'm mark crumpton. this is bloomberg. amanda: i'm amanda lange. romaine: we welcome our

bloomberg audiences. here are the top stories we are following. bitcoin taking a dive, falling as el salvador is using a cryptocurrency for legal tendency. the president says it is taking advantage of us all, buying the tip. nick carter in june hosted a social chat about the adoption of that. state street agreeing to buy the investor unit of brown brothers. we will dig into how and why the deal got done. amanda: we are watching markets pretty quiet across the board. some of those big waited cap names like netflix, disney, we got positive action among those groups. we can see the nasdaq showing some leadership here.

it's industrials leading a slower and big concerns about the expectations for growth and what the third quarter will shape up to be and a willingness to trade stocks. it does at some point come home to roost in the form of corporate profits and we see cherry picking among the buying is what we are hearing. the 10 year yield at 136 and we see some action on the treasury side and real yields on european high yields going today. that coin is one to watch, a 17% decline. that, as el salvador becomes the first country to adopt it as legal currency. we will have more on this -- a technical glitch meant they had to close their wallet. el salvador has tweeted they are buying the dip.

we will have plenty more on this as we go ahead but as companies look ahead to their third quarter, we are be getting to hear from them. ppg became one of them, saying its third quarter maybe weaker than expected. other industrials are taking note of that. dave wilson is with us. that does seem to be the theme -- a little caution at play. dave: so much caution that they withdrew their forecast. they are looking to be pre-much in line for the third quarter. as far as the year goes, they are anticipating an increase of more than 30%. if you look at analyst average estimates, they are at the high-end of the company's forecast range. there was a fair amount of optimism but it is not panning out. ppg does a lot of business with automakers and there are challenges trying to get semiconductors that has been an issue in terms of production. they are being hurt by that and

by worsening supply disruptions as well as higher freight costs. familiar themes from the second quarter results we've seen over the past several weeks. in terms of the second quarter, the issue was profitability. earnings was short of connections. put it all together and the gross profit margin was less than 30% for the first time in nine and half years. this company has had issues already. clearly that's only going so far in terms of the company's performance. romaine: they've been dealing with this before, but the previous board showed several issues that seem more secular to me. dave: there is no doubt people are looking at this companies numbers and seeing a broader picture, specifically when it comes to industrial companies of all kinds. they are the ones that get served by ppg. that's where the business comes

from and where the sales are not coming from in terms of their third quarter. go right down the line and ucd year -- and you see dear --deere, and we should throw in sherman williams, people are looking at this companies move and seeing a whole lot more reason for concern. romaine: dave wilson with our stock of the hour. ppg down about 3.5% on this day. do you know what else is down? bitcoin. we will turn back to that story -- bitcoin declining. nick carter hosted a twitter chat earlier this year with the country's president where he made the announcement he was going to embrace that coin as legal tender. he'll be joining the program in just a moment.

this is bloomberg. ♪

romaine: this is bloomberg markets. i'm romaine bostick with amanda lange and we are going to start off with el salvador. that company -- the country using it coin as legal tender and rocky start for bitcoin itself and they had trouble rolling up the payment system. joining us to talk about this is bitcoin enthusiast, joe weisenthal. you do a lot more than that but you know a lot about bitcoin and this whole ecosystem. i'm curious as to what is expected with the start of a

country, even though it's a small country using it as legal tender? joe: it's hard to imagine it leads to a big transformation, but it does bring in foreign direct investment, a lot of it coin enthusiast in the space are excited about what's going on. the idea that they could set up shop in the country as miners and developers, perhaps bitcoin tourism, would not be surprising if one effect is to bring in more outside capital. amanda: one of the most important things is for other countries thinking about this, some of the learning that happens. what are you watching most closely? what will be interesting about who uses it and what the challenges are? joe: it will be interesting to see a few things. do people use it as a spending

currency or, most people in the u.s. and developed markets who own bitcoin moan boat -- mostly own it as an investment. there is interesting technological questions, the degree to which people find it easy to use the various solutions being developed, whether it is the governments wallet or another wallet because that might inform whether other countries try to adopt something similar. whether it's spending investment, those will be interesting things to track. amanda: i want to bring in nic carter. he hosted a chat on social with the president of el salvador encouraging him to adopt bitcoin not long before the country did exactly that. we won't say it was your brainchild but you are part of the conversation with leadership there. what are you watching now that they have taken this step? nic: i'm curious to see the

extent to which second lair networks like the lightning network get utilization. it looks like the official app will support the network and so i'm very curious, as joe says, to see whether el salvador ends actually embrace that coin as a medium and an exchange. so far, the evidence is el salvador ends are mostly be mused about the move but it will be interesting to see if they use it. romaine: obviously there are the bitcoin faithful and some institutions that see the investment opportunity within it. but trying to convince average people on the ground to use it in a transaction where you have -- it has to be a bit of a hard sell and we see data showing pulling things 70% of the public does not really want this. how does this country mount the

public perception to something they seem to be tethering their future to? nic: i would be surprised if bitcoin became the medium of exchange in the country. i expect the dollar to be the medium for the future. i'm surprised they have pushed it as a medium of exchange so firmly when at the sovereign level, it seems like the most obvious thing to do would be to adopted in their foreign exchange reserves as a gold-like analog. at the brick and mortar merchant level, it's not a popular tool, nor has it ever been. so it surprising to see their emphasis in the transactional mode. joe: what do you see as the upside scenario? a lot of people have been enthusiastic and excited about

this news. what does success look like either for bitcoin or, more importantly, if success, what could it mean for el salvador? nic: for el salvador, they will have to normalize their relations with institutions like the imf. investors and salvadoran debt are pretty concerned. i would like to see yields come down a little bit but generally speaking, a relatively smooth rollout. the wallet seems to be working in the app store, so in theory, it works. it would be damaging to the effort if the administration started to enforce article seven of the law strictly against enforcement that did not -- institutions that did not offer bitcoin transaction settlements.

it's actually more of a forced tender than legal tender law. if they start to enforce that aggressively, that would be a significant object flow that might trickle down as well. amanda: obviously there would be a lot of process learning here. in terms of the argument for the possibility, it is there. would you expect to see larger companies, globally integrated companies adopting bitcoin the same way anytime soon? nic: perhaps not embracing it as this medium of exchange which, as i've said, is a curious approach. but as a nonsovereign digital gold like asset that you can hold and use to diversify your exposure away from sovereign currencies like the dollar, that seems like the most obvious approach.

el salvador is probably not the first sovereign state to hold bitcoin on its balance sheet. it's certainly quite plausible states like iran, venezuela or north korea all hold bitcoin in some capacity. but they are the first to do it explicitly. as bitcoin becomes more of a gold-like asset and fully undertakes that process of maturity, that is where i would expect to see uptake as central banks look for this nonsovereign asset that they can hold. romaine: when you talk about uptake, you are talking about central banks building that up in its reserve to a level that by default would force it? nic: that is what i would expect to see in terms of sovereign adoption. none of us expected the first

nation to accept bitcoin to be a dominant medium of exchange. joe: do you think there's going to be another country entry? bitcoin hasn't gone anywhere in a long time pricewise. it went down quite a bit since the highs didn't -- during the spring and then it bounced back. what's the next big catalyst you are watching for? what do you think is going to be the next thing that gets people excited about bitcoin? it seems like people are more excited about buying a jpeg of an eight. nic: you have to consider in context that macroeconomic drivers are going to determine the next few years of bitcoin's future effectively. if we get this sustained monetary repression with negative real interest rates, assets like bitcoin continue to look attractive to investors.

bitcoin itself does not have to change much. it's quite well understood. it would make it suitable for other market participants to get exposure to but that's incremental at this point. it depends what's happening in the broader market environment. amanda: we know that there's plenty of review happening at the sec and elsewhere about crypto in general, there you send applications. where do you think we are and how does it in any way change that thinking in the legitimacy of these products and how they would be used i the federal reserve? nic: the fcc chairman assessed bitcoin very well and i think his opinion is fully complete and i think he has carved it out

as something truly decentralized. the remainder of the crypto space, decentralized finance, i think the sec is a more activist sec, fundamentally more active than the prior sec and has a number of litigation. gensler has made direct and aggressive statements about the decentralized finance space and i think the whole industry is expecting some sort of reprisal, but we don't know exactly what form it is going to take. joe: would a reprisal toward being centralized finance be bad for bitcoin? or what it be good in the sense that non-bitcoin crypto is largely viewed as a arbitrage play that get stamped out? nic: it's a great question

because bitcoin is not the dominant collateral type, though it is somewhat involved. any reprisals might concern platforms or exchanges where bitcoin trains as well. but it is a good point. that said, investor pessimism would percolate throughout the whole industry and probably adversely affect bitcoin at the same time. amanda: good to have you with us. appreciate it. that was nic carter at castle island ventures. state street is acquiring services from brown brothers harriman. we will get the latest after this. ♪

amanda: this is bloomberg markets. i'm amanda lange alongside romaine bostick. state street is moving on news it will spend $3.5 million to acquire business from brown brothers harriman. in terms of what is driving the deal, is this about scale? >> it is about scale. the custody business, which is state street's main business arm is a scale game and they are one of the largest players. it already has $32 trillion in assets under custody. this would add another 5.4 trillion in assets to that. romaine: it makes sense of to why they would do this. they've done some other acquisitions and i wonder what the endgame is. is this expanding their existing business or are they trying to

run their reach? >> there are some benefits to scale, including things like licensing fees and acknowledging costs you can put together with these two businesses. but another aspect of the deal state street touted in its call was it would give the firm greater global reach in areas like japanese investors, for example. it gives more of a global scope to state street. amanda: given scale is driving this, do we expect to see other transactions of a similar nation -- similar nature? are there other businesses like brown brothers? nic: state street -- annie: state street said this is one of the last or meaning opportunities for a transaction

like this. that's part of the thinking behind snatching up this unit, though it has made other acquisitions including charles river in 2018 and administration services business from goldman sachs a few years ago as well. amanda: so good to have you with us. appreciate it. annie massa of bloomberg news. we are looking at the long-term chart of state street. a little weaker on that day today. that does it for bloomberg markets. ♪

>> i'm mark crumpton with bloomberg first word news. president biden is in new york

city in new jersey today surveying the damage done by hurricane ida. during a briefing in new jersey, the president said ida is just one more example of dangerous weather plaguing the nation. president biden: every part of the country is getting hit extreme weather and we are now living in real time what the country will look like. we cannot turn it back very much but we can prevent it from getting worse. mark: president biden says he will attend the upcoming climate talks in scotland in november. they were rescheduled because of the coronavirus pandemic. in texas, governor greg abbott signed an overhaul into law that adds more voting restrictions in the state. already the rewrite of voting laws are the targets of at least three federal lawsuits, including another today all contend the damages will