head of the world health organization is calling for a moratorium on offering booster shots to the end of the year. he says the focus needs to be on vaccinating the most at risk people around the world. the u.s. death toll from covid-19 now tops 650,000. at the same time, three and four american honors -- adults have gotten at least one dose of the coronavirus vaccine. tomorrow and a speech, president biden is set to layout his strategy for tackling the delta variant. the chancellor says further measures may be put in place depending on the occupancy level of icu ads. austria reported more than 2000

new covid-19 infections on wednesday. the most since april. in brazil, president bolsonaro rallied thousands of supporters in demonstrations designed to shore up his base. his approval rating has plunged as he heads into next year's election campaign. 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. >> >> matt miller. welcome to bloomberg markets.

markets are looking for direction. the new york fed president is set to speak in a few minutes. investors waiting to hear what policymakers think after the soft jobs report for the month of august. plus the state of the economic recovery through the lens of the restaurant industry. i will speak with the cofounder of major food group. he is reopening the girl inside the seagram's building. and the trial of a one-time darling of silicon valley. we will get the latest with a lab report from the courthouse. first, let's take a look at what is going on in the markets. the s&p 500 is now down more than 12 points. it was a soft open. we climbed to positive territory, now we have fallen back down with investors buying

bonds. the bloomberg u.s. dollar index is up. we're also getting headlines across on the 10 year. that was before the auction. we're looking at a 10 year yield that comes down into the auction right now although it is a very big takedown, $38 billion in 10 year debt. again, 1.338 is the level.

let's get to our chief rates strategist at bloomberg intelligence. what do you make of the 10 year auction headlines we are seeing? >> once again for the second month in a row, we are seeing almost unprecedented high and direct bidders for this auction which tells us foreigners once again probably were very big buyers at this auction. like you noted, the yield that was stopped at lower than what we were expecting at the 1:00 close of bidding. the bid to cover ratio was also higher. there was a lot of demand for yield. even though yields are not particularly high at this point in the u.s., i think given low interest rates around the world, you are still seeing this very strong flow from overseas into the 10 year product.

matt: we expect more auctions the rest of the week. how much are we looking at? guest: tomorrow is the 30 year auction. it is an add-on to what was initially issued a month ago. it will be interesting to see if foreigners don't want to take as much market risk. 30 year bonds have two times the risk of 10 years. it will be interesting to see if the foreign bid will continue to hold up with tomorrow's auction. it didn't as much in august. in august, you had a blowout 10 year then an ok 30 year. i think that's probably going to be the case tomorrow. matt: any idea what we can expect from the fed after the soft jobs number? guest: i think they will still talk about reducing asset purchases, because there is market structure and market

function issues going on with them printing all of this money that is just sitting at the banks that they then give to the fed. i think what you are likely to hear them say is we will still taper, but don't expect us to hike unless we have met both of our mandates in terms of good employment as well as stable prices. i still think they will talk about inflation being transitory. but hinting they will keep interest rates lower than -- low for longer than the market expect. matt: as a reminder, it's going to be about 7:10 here, about three more minutes until we hear from john williams and see headlines from the virtual event. let's head over to san jose, california where opening

arguments begin in the u.s. versus elizabeth holmes. ed ludlow joins us from outside the courthouse. this trial is widely watched. what is the latest? >> government prosecutors say this is a case about fraud, lying, and cheating to get money. they say the first victim of her lies were walgreens and safeway. theranos did deals in arizona where some of the testing centers that reportedly used the system, that it actually according to prosecutors were located. she faces up to 20 years in prison. what they are trying to demonstrate is that she conducted two schemes. the first two defraud investors. the other two defraud doctors and customers who ended up going to those facilities to get test

under false pretenses that they were using the system one in fact they were not. matt: what is the home's defense going to be? -- holmes'defense going to be? i hear that she is saying her boyfriend was trying to control her. >> the hint from the legal team is that she was not not able to form the intent to defraud anyone because she was under psychological abuse from her then partner and coo of theranos. he has denied accusations that he was controlling. they are codefendants. her legal team argued to separate the trials. he has his trial later. the focus is on her and we have until december for the trial to run. matt: will they be given a

separate trial? will they be tried separately? >> yes, he will be tried separately. it was one of the strategies employed by her legal team. this was delayed several times because of covid and she had a baby recently with her new partner. matt: what is at stake here? aside from this specific case, what reverberations will it have across the industry or across the valley? >> we go back to one of the potential defenses for her. the idea that you fake it until you make it. one impetus on the prosecution is that they want to demonstrate that in silicon valley as a founder or ceo, you cannot go out to the investment community and about what your business or your technology is capable of

doing. they want some accountability. remember how high-profile she was at the time. when the wall street journal story first broke revealing the truth of the situation and she was so quick to go on camera and continue down this line that she believed fully in the technology. she surrounded herself with names like henry kissinger who sat on the company's board. this is been a long story, but it documents the rise and fall of one of silicon valley's founders. matt: ed ludlow outside the courthouse in san jose where the their nose trial is beginning. we told you about john williams speaking at a virtual event about the current state of the economy. we will bring you the latest headlines from the event. also dots on the fed. -- thoughts on the fed.

this is bloomberg. ♪

matt: this is "bloomberg markets." the new york fed president is speaking now to discuss the state of the economy. we are monitoring that event. we will continue to bring you headlines as they cross. we have one huge event to work around. that is the huge loss on the nfp or miss on the nfp number on friday for august. let's bring in our guest where he is chief economist to discuss what that number means for the

fed. want to get your take on what the fed is going to do about. guest: it was a real disappointment. there were some warning signs like declining restaurant activity. it was still really disappointing and what it told us was that the delta wave especially in the southeastern quadrant of the u.s. has taken a toll on the discretionary consumer services sector. that's where we saw zero net jobs in leisure and hospitality sector. in the previous few months, we were seeing 400,000 per month. the bad news is i can't expect a quick rebound because the delta wave continues. maybe it is peaking now, but it will take a while for people to adjust their behavior and businesses to start hiring again. he had to deal with the fact that we're going to see much weaker payroll growth.

matt: it's interesting, we saw the 10 year yield go up after this suggesting that investors were selling bonds. why that reaction from the market? guest: i think market looked closer at the hourly earnings number which was up. that doesn't sound like so much, but annualized you get 7.5 and that's a big increase. there are some technical factors in the numbers. you can't take the data very seriously right now. what i would say to investors is you have to wait until we get the employment cost index. that is running at about 4% annualized which is less scary. it's hard to tell someone trading bonds that they have to wait another couple of months

for the next print. remember what everyone cares about in the bond market is the potential inflation implications of the reopening and whether we are going to see the spike in the inflation numbers transforming into a scary spiral. they look at that and they say it's evidence of bad things happening. i'm a bit more relaxed about it. matt: you are not concerned that we are going to see a wage price spiral? guest: i think for the same reason chair powell talked about it at jackson hole, he said in order to get a spike becoming spiral, you need to see wage growth faster than productivity. you need to see labor costs ramping up in order to embed this inflation shock into something more long-lasting.

right now, there is not much evidence of that. i think there is a chance we will see strong productivity growth upsetting wage growth. when the fed talks about transitory inflation, they are making quite a good bet. clearly, there are risks to the other side and we could be wrong but i think right now, it is reasonable to argue that the chance is low and the fed can afford to wait a bit. when you get a scary payroll number, it pushes the tapering announcement further down the road. they will do it, but i think they will do it later the people were thinking. matt: a taper isn't tightening. what is your view on growth? kind of visibility do you have? how blurry is it to the pandemic? guest: the third quarter is going to be much weaker than i was hoping for a couple of months ago before the delta wave got going. i think we will see an outright

decline. that's a big headwind. capex is doing well, but it's going to be a week number compared to what we were hoping for. the question for the markets is we get a rebound in the fourth quarter? there, i am hopeful. by then, i think the delta wave will be subsiding and the cash on the sidelines i hope will be put to work into q4 and q1 of next year. i remain bullish on growth. matt: thank you for joining us. he is the chief economist at pantheon macroeconomics. still ahead, the grill is set to reopen tomorrow. this restaurant inside the seagram's building and manhattan. we are going to talk about the relaunch and the state of the industry with the cofounder.

this is bloomberg. ♪

matt: this is "bloomberg markets." we are getting headlines the new york fed president saying we have a long way to go until we get back to the maximum employment goal. he says the delta variant has weighed on spending as well as jobs and he sees 2021 gdp growth at 6%, not bad. he also sees inflation sloping to about 2%. that is at the end of next year. this year, growth at 6%. next year, inflation slowing to about 2%. he says we need to do more in terms of getting the maximum employment.

he says the taper may be more appropriate this year depending on what happens with jobs. we will continue to keep you appraised of that situation. i want to take you to something that is related. the grill is an upscale american chop house located in the former home of the four seasons in the iconic seagram's building and manhattan, new york. it is set to reopen since -- for the first time since the pandemic. joining me is the cofounder and managing partner of major food group which owns the grill and other restaurants. thank you so much for joining us. i want to get your take on how the delta variant is affecting your properties and those of your colleagues in the restaurant industry. it does look like it is hitting hard. we heard the fed talking about how it's weighing on spending. do you see that in the

restaurant industry? guest: luckily, we have not experienced that in our existing restaurants. in new york city, our downtown restaurants are performing as well as ever. we do see people returning to have some preference to eat outside. that being said with the vaccine mandates, i think people are feeling pretty good and we see a huge amount of excitement or dining out. people spending, check averages, etc. that's why we are excited to get in the face of what's going on to open the grill in midtown. even though things are, returning to work is not what we hoped it would be this fall. what we have seen in new york city as well as in miami etc. is

that people want to be out. they want to eat great food and have a good time, to celebrate and be with each other. they basically, i think in new york especially given that vaccine cards are mandated to be in restaurants, people seem to be excited and comfortable coming back. matt: that makes sense. let me ask about the employment situation. here in berlin, there is a real dearth of restaurant employees. you go to a lot of places that are half-staff. bars are closing early. the demand is there, but it's difficult to provide the supply. are you having that experience? guest: staffing has never been harder in the hospitality and restaurant business. we are doing our best weather the storm.

we are fortunate to have a large infrastructure and a lot of employees that have been with us for close to a decade or more at this point. that has helped us not in that position were we are able to open everything at capacity and not have staffing issues across new york and across the country. that being said, recruiting is harder than ever and it's harder to get people to come back to work in this business. we are really proud to be in a position where we have such employees that has not been an issue. matt: tell me about the grill and what it's like to occupy such an iconic space. guest: when we took it over, it's a dream come true every time i walk up the steps. i can't believe that it's mine. at the same time, it's such a great excitement to be bringing the iconic room back to life

tomorrow night. it was an incredible experience when we reopened the first time after it was the four seasons for over 50 years. now to reopen it again, it's a symbol hopefully of new york coming back, midtown coming back . hopefully, it will be a symbol of great things to come. matt: it's not yours, it belongs to all of us. it belongs to new york. that was jeff talking to us about the grill reopening in the seagram building. i'm sure a lot of you will be happy not to have to go downtown to eat. from new york, this is bloomberg. ♪

>> supply is still relatively constrained. despite the current steel production, it is up eight -- percent through the end of july. mark: i'm mark crumpton with bloomberg's "first word news." supply chain issues continue to

hamper production around the world. >> i think we have improved the supply chain in egypt significantly and it helped us to maintain full prices and to maintain inflation within the target by the improvement in the infrastructure of the supply chain which we are still working on. mark: ongoing supply constraints are plagued the u.s. recovery and many are showing few signs of dissipating anytime soon. the supreme court is getting back to work in person. it will hold in person arguments when its next term begins in october, so there will be some precautions. attendance will be limited to justices, the lawyers, essential personnel, and reporters with jewels. the supreme court has been holding arguments by phone since the pandemic began.

austria is clamping down on the unvaccinated saying they will have to wear certain masks and all shops starting september 15. the chancellor says further measures may be put in place depending upon the occupancy level of icu beds. austria recorded more than 2000 new covid-19 infections on wednesday, the most since april. 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. >> i'm amanda lange, welcome to bloomberg markets. matt: i'm matt miller.

here the top stories we are following from around the world. ray dalio says don't miss out on china. the founder of bridgewater associates says there are too many opportunities for investors to ignore. walmart is selling $7 billion in debt including its first evergreen bonds. we will talk about the appetite for credit. and as the nfl season is set to begin, we will talk to the president and interim ceo of vandal. -- fan duel. amanda: we're looking at a down day across the markets. we are about 1.5% of record highs. for the toronto market, we are

still close to record highs. -- all-time highs. yesterday, it was the leadership of the market that brought us to the record levels. today, they are the week spot. -- they are the weak spot. industrials are back in favor today. corporate earnings very much and focused. we are watching what we're hearing from companies about their outlook and the various factors at play. one big factor that will remain on the table for many will be supply chain issues, shortages are dogging many. that will show up in third quarter. too much of a good thing perhaps for pultegroup. a boom in construction and building, it is seeing shortages that will affect the quarter. dave: they are saying they will

not get the growth in closing that they were anticipating. you go back to the second quarter, they closed on 7200 homes. that was the highest since 2007. there were looking for another increase this quarter. instead, they're bringing that number down to 7000. it's all about the issues that pulled the -- pulte has when it comes to getting windows or doors are lumber. they are having challenges in trying to meet their needs. they also tried to cut their annual forecast for closing. this is an industry where you have seen substantial growth in the past few quarters. pulte has been part of that. the latest fiscal quarter, revenue up almost 30%. if you look across the industry, you can see even faster growth. katie home at almost 50%.

other companies with faster growth rates than pulte had in a quarter. what happens to profitability if you have these issues with increasing costs? that's a good question to ask considering you get back to the second quarter and look at their growth profit margin, it was the highest and 12.5 years. now, analysts are expecting that to come down a bit. matt: talk about a tragedy, apparently cost issues are going to bankrupt abc carpet which is an industry institution in new york. housing, automotive, we are also seeing it hit the markets. dave: you can focus on the kinds

of companies that supply pulte group. today, sherwin-williams down after cutting its forecast for the latest quarter. they can't get enough raw materials either. ppg industries was in the same boat yesterday. they withdrew their forecast for the quarter and the year. you look across building materials companies, you see other declines. these supply issues, they are definitely front and center at the moment. amanda: dave wilson, thank you so much for that. that's our stock of our. -- stock of the hour. we are seeing a return to the bond markets. today record for corporate grade bonds. -- a two-day record for

corporate bonds. walmart, $7 billion could hit $8 billion of bonds and its first green bond. what's notable to me about this is obviously, low rates are encouraging the borrowing. these are not companies that need to borrow in the sense that many of them are cash rich. some of the companies like apple tapping the bond market. we could see rates go higher. this could be the story of reaping what you can before the story changes. matt: what's interesting to me is the green aspect of not just walmart, but a lot of the debt issuance we are seeing. michael tobin and another road story on the bloomberg -- wrote a story on the bloomberg about lending corporate some esg credit for a price. helping them sell that -- debt

that is sold as esg. there aren't necessarily incentives there, i recommend viewers check it out. amanda: a shoot trend. we know that companies will capitalize on it. -- it's a huge trend. what makes one bond green versus another, there is obviously a willingness to buy into the concept. matt: if you're skeptical, you're not the only one. coming up, ray dalio says don't miss out on china. speaking of skeptics, there are plenty of them out there. that's coming up. this is bloomberg. ♪

♪ matt: this is "bloomberg markets." ray dalio spoke last night at bloomberg event. he said the opportunities in china cannot be ignored. ray: it's a part of the world that the world cannot neglect. not only because of the opportunities it provides, but you lose excitement if you're not there. our objective is to be there both economically and investment wise. matt: the question of the month in august was is china on investable? we're starting to get answers from big figures on wall street like larry fink and ray dalio and george soros.

amanda: it still remains a complex question, especially for the less professional investor out there. chinese companies that have been listed in the u.s. and u.s. companies that have tried to get exposure to china. maybe sophisticated investors have a better weight to get them into that world, despite the political risk. matt: that's on the financial side. if you listen to george soros, you have issues on the moral side as well. for more on china, let's turn to our weekly segment on the new economy where we examine how global leaders are trying to solve challenges. i'm curious what you think of george soros. putting aside whether or not you are going to make money on these investments, he says more importantly, it will damage the national security interests of the u.s. and other democracies. this was in an op-ed in the wall

street journal. he has made some serious accusations and in a previous op-ed, he said that she is the biggest enemy of open societies in the world. how do you interpret what george soros is saying about china? guest: ray dalio and george soros may be right each in their own way. of course ray dalio was right. how can you ignore the world's second largest economy? the largest consumer market in the world. a place where so much innovation is taking place. where else are you going to be able to scale your own innovations? of course businesses have to be in china. blackrock just closed their asset management unit, it's a $1 billion fund. yes, george soros is right to question whether or not now is

exec with the right time to be charging in just as the chinese economy has plunged into complete turmoil with xi jinping 's injunction to create common prosperity or a more equal society. amanda: obviously, the implication there is that could be some kind of persuasion one way or another based on our economic relationship. one thing that seems clear to me is that the chinese government would like everybody to understand that their rules will be their rules. if you want to play there, whether it is on humanitarian basis, political or economic. does that make it a safe and attractive place on the terms that most of us have thought of it for the last 15 or 20 years? guest: it's not safe.

foreign investors have understood for a time that doing business in china carries risk. nevertheless, they will remain in china and they will keep coming into china. from the perspective of the chinese government, of course they want the likes of ray dalio and other wall street titans, they have a disorganized capital system in china. one outlet for chinese savings which are piling into a property market. that has supplied a gigantic bubble and they will have to do something about that market if they are serious about promoting social equity in china. the property market in china is 70% of wealth inequality in the country. yes, ray dalio -- plus, they want these guys to be advocates for them in the white house, in

congress. they want them also as an insurance policy. they want them locked into china almost as a protective shield against u.s. economic coercion sanctions, tech blockades and the rest of it. matt: adding to the list of fans, i was at the munich autoshow for the last couple of days. i asked every single major automaker if they had any concerns about china and all of them are very optimistic, still looking forward to boosting sales and making a lot of money in china. it's not as if big business is eager at all to get out. guest: quite the opposite. as elon musk demonstrates with his massive factory in shanghai. the u.s., and other auto markets

combined. that's the size of the chinese market. amanda: always good to have you. appreciate it. you want to check out the new economy daily from the team at bloomberg economics. daily newsletter, you can sign up for at bloomberg.com. at the kickoff of the nfl season, we're talking about the business of online sports betting. we have an interim ceo with us. stay with us. ♪

amanda: this is "bloomberg

markets." here is reportedly looking to license its brand. -- espn is reportedly looking to license its brand. our guest is the ceo of fanduel. great to have you with us. as we kick off the nfl season, there will be a lot of attention and spending around that. talk about these media partnerships. how important is that brand association to differentiate one online betting group from the next? guest: it's credible -- prickly important. we are excited about this nfl season. fanduel is america's number one sports book. it is the first year of our official partnership with the nfl. there are a few cornerstones to that program. we are partnering with one of

the best agencies out there. we have a national ad campaign and it's about amplifying those great moments for the sports betting consumer. the generous pregame offers to showing our live betting product integrated into the broadcast. that's going to be one difference you haven't seen in the past. we will also have the opportunity to integrate nfl highlights into the app so we can keep the nfl fan connected to those exciting moments. to your point on the media partnerships, this year we have the opportunity to partner up with many of our media partners like cbs to develop free to play games. if you are in a state where sports betting hasn't been legalized, you have an opportunity to play. these are great games, easy to access and any fan can win a million dollars. those partnerships are really important to differentiating. matt: how about a partnership

with espn? how strong is that brand in american sports? guest: espn is obviously widely recognized in sports. we are always looking at who we should be partnering with. that's certainly something that we will take a look at, but is premature to comment on that. amanda: you mentioned not all states are in the same game. as states come to market like new york, what kind of cost are built into building the customer base there? guest: each state has different economic considerations. the most important thing, we have a playbook that has worked incredibly well for all of the states that we have been successful and quickly grabbing the number one market share. getting out front and winning that acquisition game is going to be critical to us. we are still in the early parts

of the game making sure we are making the appropriate investments and reaching the sports betting consumer where they are is critical. one of the things that is differentiated fanduel's we continue to invest in our product. we were first to market two years ago. making sure we bring great innovative products to the market is going to continue to be a part of our differentiation. matt: fanduel is owned by flutter entertainment. they have -- a really important experience in this industry. how much are you willing to spend in terms of marketing? in terms of profitability to get a lead on the other competitors in the u.s. space? guest: we have a good sense of what we need to spend to make sure we can continue to maintain

the number one position. we just came off of the second quarterly earnings call where we had a 45% share of the overall sports book market. we know market by market with that's when to take. i think we are doing that incredibly efficiently. if you look at our acquisition costs relative to the lifetime value of the customers, that is worked very well for us. it's about making sure we are as efficient as possible. amanda: we definitely see the size and the potential for this market in the u.s. going higher and higher. as it gets crowded, how much worry do you have about the competitive landscape? guest: there is no doubt, this is a fast-growing market right now. it is an intense competitive landscape. we have had the benefit of having grayscale advantage that other operators have not so we

continue to focus on making sure we invest in the best innovative product. we have not just sports betting but also fantasy sports and horse racing. continuing to innovate in each of those very -- verticals continues to be part of our mission. matt: amy is the president and interim ceo of fanduel talking to us about this crowded space as we prepare for the nfl to start. the most important american sport league in terms of profitability. this is bloomberg. ♪

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♪ mark: i am mark crumpton first word news. the u.s. death toll from covid-19 tops 650,000.

more than 40 million infections have been confirmed. at the same time, three in four american adults have gotten at least one dose of vaccine. tomorrow in a white house speech president biden set to lay out his strategy for tackling the delta variant. in japan, the government reportedly has told the ruling coalition it will extend the coronavirus state of emergency for 19 regions until september 30. nhk says it covers tokyo, osaka, and 17 other prefectures. to other regions will be downgraded to less strict measures. pacific airways says it decided to let go a small number of crew who chose not to get vaccinated against covid-19 and did not provide proof of medical exemption. in a statement the hong kong-based carrier said quote, "border controls around the world have dramatically reduced our