vaccine is declining again in the united states. the drop is being led by the south and central regions of the country, areas that led the nation and vaccination rates last month. most of the declines were concentrated in texas, louisiana, arkansas and florida. ursula von der leyen used her state of the union address today to call on the united states, china and other nations to join the european union and its ambitious plan to combat climate change. she promised additional funding to help developing nations make the green transition. >> 4 billion euros for climate finance until 2020. we expect the united states and our partners to step up, too. this is vital. the u.s. and the european union would be such a strong signal for global climate leadership.

mark: a decade ago, rich nations so they would mobilize $100 billion a year for 2020 to help or countries deal with the impacts of climate change. that target hasn't been met. news out in the last few minutes, caribbean is aiming to raise as much as eight alien dollars in an ipo. that's according to reuters. it is backed by amazon. 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. >> it is 1:00 p.m. in new york. i'm matt miller. welcome to bloomberg markets.

here the top stories from around the world. macau casinos see $18 million white out. we will have the latest on the gaming crackdown that's hitting american operators as well plus we will go down to cape canaveral in florida where spacex is preparing the first ever all civilian space launch. that happens later tonight with the inspiration 4. and german taxi startup lily him . we will discuss with the ceo. a look at what's going on in the markets with the s&p and the 10-year. right now the s&p up about two thirds of 1%. the 10 year yield also rising to 131. investors are comfortable enough to selloff off bonds and buy stocks.

the really interesting action i think is in commodities. we saw brent crude hit almost $76 a barrel. the global benchmark contract up and the story has been insane. you can see the dutch contract up 7.5%. we saw gains of 16% in british natural gas this morning because there's not enough wind power across the u.k. and europe. there's not enough nuclear power. temperatures are dropping in moscow so we are not expecting them to put enough natural gas through the nord stream 2 pipeline and then tropical depression nicholas in the u.s. gulf is going to affect lng imports. we continue to heat -- hit new all-time highs.

a group getting crushed are the casinos. this comes after officials said they would tighten restrictions on operators. joining us is andy brown. president xi's common prosperity campaign has now arrived. the blackjack tables of macau. we have seen crackdowns on everything from ridesharing to videogame to fintech to education and tutors. what's the story with macau? >> this common prosperity campaign has arrived in macau. president xi jinping has gone

after the billionaires and now he's going after the highrollers who pack the vip rooms in the casinos operated by the likes of las vegas sand and mgm and it looks like the game plan is going to be quite similar, which is highly restricted regulation and direct administrative control. matt: not a lot of people will know how huge gambling business in macau is. it's much bigger in terms of revenue than the las vegas strip. partially driven by those las vegas businesses that are invested there. it's also the only legal gambling place and all of china. >> possibly through a historical accident. beijing as it were acquired gambling when it took back macau which is a portuguese colony in 1999. but the communist party has

always frowned on gambling. it is seen as a social vice and a remnant of the old society and president xi has a personal antipathy towards it. the gaming industry in the count one of the first targets of an anticorruption campaign and to this day in beijing there is a suspicion that the casinos are accomplices in money laundering. matt: probably even more than a suspicion. they may have evidence to that effect. we are going to see license renewals for a lot of u.s. businesses. las vegas sands. are they going to have difficulties getting these licenses renewed, are they going to need to bring in state actors? >> all the licenses come up for renewable next year. the omens are not good. look at other industries in xi jinping's crosshairs that are

seen as being similarly socially reprehensible and damaging. look what happened to online gaming where the entire industry is now being smothered with micromanagement so chinese kids essentially are no longer able to play beyond three hours a week. look what happened to the education technology industry similarly seen as being a social ill to the extent it sucks money out of the pockets of the middle classes. that industry is being entirely closed down. i think you are going to get a lot of talk about the social responsibility of casinos to develop more in terms of tourism and family fun and entertainment for kids and so on which is all will and good but that's not where the money comes from, it comes from the highrollers

coming over the border from china to play poker and blackjack. matt: president xi probably doesn't want to smother the local economy. there has been huge growth in this economy. a lot of jobs created, a lot of wealth created how does he go about this in order to engineer a soft landing? >> 80% of macau's revenue comes from gambling. but don't underestimate his political intent. he's going after real estate companies in china and shaking the entire industry which accounts for 25 to 30% of chinese gdp. he's very serious about this and this is a political and ideological campaign as much as anything and there is a heavy dose of moralism about it in that sense casinos really are on

the wrong side of xi jinping right now. matt: thank you for joining us, andy brown. sign up for the new economy daily lose -- daily newsletter at bloomberg.com. coming up, first it was virgin galactic, than it was blue origin. now it's elon musk's turn to send civilians into space. we are going to have an update on the three day trip awaiting the inspiration. when it is scheduled to take off in a few hours. this is bloomberg.

♪

matt: this is bloomberg markets. i'm matt miller. a spacex rocket will launch four civilians into orbit. this is the first time anybody has ever put civilians into orbit. we have seen a couple of civilian launches but they just briefly went up into space and came right back down. so i think this is a really big deal. joining us to talk about it is lisa rich. and with us is our own roving space reporter ed ludlow. what do we expect in terms of the tiktok here. when are we going to see the launch and how long is it going to take them to get into orbit? >> of five hour launch window.

there are clouds in the sky but according to official reports, weather conditions are 90% favorable. we are a few hours away from launch. the crew will load into the dragon capsule well ahead of time. hours of preparation, along 45 minute at least official countdown to go through a 13 minute process where they will be hurtled up above the urge -- above the earth. which for a nonprofessional astronaut whose only had five months of training is quite a significant step. matt: what does this mean for the industry that we are sending civilians up into orbit now? lisa: this is a fantastic moment to have civilians going to orbit.

this hasn't happened before. what we saw with bob and doug going on the spacex dragon capsule, they were on a mission on the international space station. today spacex ingeniously changed the docking mechanism to beat this beautiful coppola and now that there's a coppola on the dragon and they're going to be in or get, they are going to have this unbelievable experience of flying in space and being in orbit and it's going to be extraordinary. this is a moment for commercial space. it's opening up access and showing that a commercial company can design a mission for their own purposes and in this case one of their purposes was to promote st. jude's and to raise awareness for cancer research which i think is a wonderful significant way of flying to space and making it meaningful.

>> it seems to bring together all these mega cap tech companies. netflix is doing a series on this. of course spacex is part of tesla and there's a lot of people around it that are working on this launch. how do you see this launch and spacex, lou origin, virgin in regards to explore? do you work together in this field? >> we are not competitors. we are the rideshare on the rideshare so we would fly on a spacex rocket to go to space so they would be a partner of explorers or blue origin. we'll explore is doing is complementary to today's mission

is working on positioning navigation and timing, basically a gps capability, a navigation capability beyond earth and so as we open up access to space and humans explore deeper into space, we can advance that technology capability and that navigation capability with our system and then separately exploring the universe is something explore is specifically designed to do. so we have a partnership with the observatory that has ground-based telescopes and we will have space-based telescope so that we can discover more of what's in our universe and bring all of that data back for science and advancing stem. matt: thank you for joining us, lisa rich. ed ludlow will be on the ground covering this launch live.

still ahead, german air taxi startup lilium goes public on the nasdaq. we will discuss the listing in the future of travel with ceo daniel vacant next -- daniel vegan next. top german executives are calling on the country to focus on how to stay competitive. >> the clear outline of european and german growth agenda for 2030. >> it needs to have a plan for the next 12 years. >> we have to strengthen, use competitors position and set up in order to cope with covid. >> we can only be competitive if

we also transform our industries. ♪

matt: this is bloomberg markets. i'm matt miller. what i learned from my recent trip to the iaa mobility conference in munich. german carmakers are pushing hard to electrify their fleet. here's a look at the road ahead for germany's famed car making industry. germany's automakers have been a symbol of the country's economic miracle in the 20th century. as we move deeper into the 21st century, they have been dogged by international competitors forced to cut headcount and spend billions to electrify their fleet. german manufacturers like bmw and volkswagen have been dragged kicking and screaming into the electric area after a huge diesel scandal and under very strict eu regulations.

plus they've been motivated by the giant market cap of tesla. germany's political parties also continue to pay lip service to the green revolution with bonuses for electric car buyers as well as targets that they've set. for example aiming for 15 million ed sales -- tv sales -- ev sales by 2030. >> plans for better resale will take time. >> we are accelerating our path toward full electrification and we are really going to go for and see if we can convert our whole portfolio. matt: electrification doesn't necessarily help with the job cuts. a quarter of the industries jobs will be obsolete within the next

10 years. of course the green revolution doesn't stop with electrification. brands like audi and volkswagen believe the shift to automated driving could be even more transformative than the movies -- than ev's. buzzwords like a green and digital are on the lips of many politicians as they head into elections next month. here at the munich auto show, the term climate neutral has become ubiquitous as this iconic industry shifts into the next century. electrification isn't just about ground transportation. it's also about air travel and air taxi startup lilium is making its public debut on the nasdaq today. for more we welcome the cofounder and ceo daniel wiegand.

talk to us about why you went public via spac and what it allows you to do to be traded on the nasdaq. >> lilium is a technology company based in munich. we've got almost 800 employees and we are developing the world's first entirely electric to repowered vertical takeoff and landing jet aircraft. it's going to have seven seats and we are operating these airplanes in intercity shuttle service where you can directly take off in the city center with very low noise emissions and fly somewhere else. so we are creating a radically new means of high-speed transportation and the transaction and the listing provides those with the funding and proceeds to develop and certify this aircraft, complete the design, prepare the production and get into the commercialization of the airplanes. it's a big step for us. matt: how big a risk is this for

investors? you haven't sent seven people up in the in an electric lilium air taxi and moved them around. are you positive you can do it? >> 100%. that's actually not correct. we have in the last five years flown five school -- five full-scale demonstrations. so we have some great technology development. making a serial aircraft and flying this airplane against the same standards like a commercial airline. we have 100% confidence that the technology works. we are in the next phase of certifying and industrializing. matt: you've got an investor -- how did you come to the idea of doing this as a spac and is that

easier than an ipo? >> -- head of engineering who joined us, alastair mcintosh, the head of engineering from rolls-royce. the spac is the better route for us. we have different options of funding available we chose the spac route because we felt that we have an incredibly strong team that is mature enough to be on the public market. at the same time it provides us with the funding necessary to build this aircraft and execute on our mission. matt: i wonder if these aircraft will be available for at some point personal consumption or is it just taxi from newark to jfk? >> we are focused on shuttle routes. the advantage of this is that we can bring more passengers on board and reduce the cost.

the newark jfk is a great example where you can do shuttle flights and save roughly an hour for the customers but we are also focused on longer distant routes. the total trip from downtown to downtown takes about four to five hours and with our airplane you can do such a trip downtown to downtown in one hour so we are saving hours of time. matt: a very classy way to get to the hamptons. the ceo of lilium saying they do have a working prototype and they have flown it. this is bloomberg. ♪

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trillion dollar plan is too big. as tens of thousands of afghan refugees fleeing the taliban arrived in the united states, some former trump administration officials are working to turn republicans against them. stephen miller says it's a collaboration based on mutual conviction. the approach isn't embraced by all republican leaders with some calling it mean-spirited the main defendant in the 2015 paris attacks trial said the killing of 130 innocent people was nothing personal. he says the deaths were retaliation for french airstrikes on islamic state,

acknowledging his role in the attacks for the first time. suicide bombers struck within minutes of one another in several locations around paris on november 13 2015. the same network struck the brussels airport in 2016. simone biles says the fbi turned a blind eye to the sexual abuse she and other young athletes suffered at the hands of dr. larry nassar. miles saiduse. more than a hundred women accused him of sexual abuse. he was convicted in 2017. serving sentences that amount to life without parole. 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. amanda: i'm amanda lang paid welcome to bloomberg markets. matt: i'm matt miller. here the story was -- stories we are fallen from around the world. canadian pacific's month-long takeover battle ends with a $27 billion agreement. we will talk about the merged network which will stretch from canada to mexico. we are going to speak to the ceo of abm industries, provider of maintenance services about the

business, facilities management and many returns to office. plus coffee chain dutch bros. we discussed the listing with the ceo live from the new york stock exchange. amanda: investors are willing to shrug off concerns. broad-based gains in the s&p 500 , financials are right behind it and every subgroup is in positive territory except consumer discretionary. some of the biggest names are moving lower today. facebook is one of them. that did seem to be turning the

stock around intraday. in the energy space, don't take your eyes off oil and natural gas. it is a hot button issue on both sides of the border. we will be talking later about inflation. those are the kind input prices that consumers really feel. it is close to the end of a long takeover. as you may know, course of this bidding war, cn attracted the attention of some of its investors and now faces a proxy fight. matt: especially because the

commodity railroad tracks is so limited. you couldn't really expand it too much because you don't really have eminent domain. that explains why there is such a huge fight over these assets. amanda:response which may have n slightly altered by executive orders. it's not a slamdunk little closer -- but a little closer. matt: we will follow it until the bitter end. spiking and storms in the gulf are helping to keep fertilizer prices high as part of that spike. the effect on one major producer, and that is mosaic. >> we have certainly seen shares move up over time.

it is really a function of what's happening to fertilizer prices. new orleans is the name -- main u.s. trading hub for various forms of fertilizer and they have had issues. first because of hurricane ida and now because of nicholas. a tropical depression pouring in the gulf of mexico because of it . we have seen prices of a couple forms of fertilizer rise every month this year. potash has more than doubled. urea is up more than 85%. it shows when you get these through the weather event, it has an effect. we see it play out in terms of mosaics revenue. growth for this year to hold up going out for 2023. so what's happening in the

markets is certainly having an effect on the company's business. it's not just fertilizer. it's in terms of these crop nutrients. you look at the numbers and you see a 34% increase since march of last year. it's no doubt what's happening in the fertilizer market is part of that. while it's more expensive for us to buy food, if you are looking at it from mosaics perspective it's a plus. amanda: does that make this truly global story? >> it really does. fertilizer is really a global market. there's nutrients up in canada as well as germany's k+s and of

fertilizer unit of -- industries. these have taken off and it's largely a function of what's happening to fertilizer prices and that really feeds into the whole foods story. matt: thank you, dave wilson. i want to mention that on holding is now trading. we will be talking to the ceo on bloomberg television in the next hour. so if you are a buyer were just watching this ipo, we see a pretty decent spike on the first day of trading. we will speak to the ceo of abm industries about safely returning to offices and schools amid the spread of the delta variant. this is bloomberg. ♪

matt: this is bloomberg markets. i'm matt miller with amanda lang. as we were talking about for the break, on holding is now trading. shoemaker pricing at $24. it's a 50% right now. you can see 35.94. the company is backed by roger federer, tennis superstar. one of the greatest tennis players of all time. we will be talking to the ceo of the newly traded shoemaker in the next hour. let's talk about safely

returning to schools and offices. so many of us are doing it or hoping our kids do. services like cleaning and facilities management are huge part of that. abm industries is a provider of those services and recently reported earnings that beat on the bottom and the top line. they raised their guidance for the year. joining us is the president and ceo. how much work do you have now than you had in the same period as 2019? >> thanks for having me. that is the good news. we reported double growth on the top line. aviation was up over 50% from this time last year which is a really good sign and momentum that people are feeling safer traveling and being in airports. we have our enhanced clean product which goes a.

amanda: obviously the pandemic changed a lot for a lot of people. i think it changed the way it put what you do in the spotlight. do you see that as a permanent change or will there be a shift to something else on the others of the pandemic? >> we think people's mindset has shifted toward health and safety. there's just been increased awareness around the subject and we are hearing it from facility managers around the country. i don't think anyone can imagine going back to an office and having a facility manager say we are not disinfecting, we are not virus protecting. we are going back to the way it was. i just don't think that would be acceptable for students, parents, teachers. people want to feel protected where they are going to be

occupying spaces. matt: we see people disinfecting everywhere. it is so much more than that. the ventilation and hvac services you provide, how much is that kind of thing, airflow going to change in the offices and schools of the future and by future i mean next year? >> there is an acute focus on that it's not only surface transmission but there as well. we are kind of on the forefront of that because it is one of our largest sectors. we do over a billion dollars in air quality and energy efficiency. you are going to see more and more focus on it in the future for sure. amanda: what else is there for you to do on that front?

are there other acquisitions in the pipeline for you? >> growth is paramount for us. we both got our start in san francisco and they are just such a high quality company with cultural alignment. when ceos think about m&a they think about cultural alignment first and we have such good alignment and complement tree services. what we particularly like is they have a real focus on stationary engineering which are the folks in the building wandering the quality and the hvac. now abm is going to be 30% shift in business makes toward air quality, energy and c. so it's a real strategic game changer for us. matt: as important as these jobs are, i think of your workers

almost as frontline first responder type of jobs. are they getting commensurate pay and social respect? >> that is such a great question and i'm glad you asked it. ever since this pandemic started, our folks haven't missed a day of work. they have been on the front lines and we are getting some of the same high-fives on the street as health care workers and we pay competitively. everyone of our workers has access to health care and one of the things that we do is we try to create a framework so they can career path of. you have untold stories of people who started as frontline workers and now running big businesses for the firm. that's really important i appreciate you asking that because we are so thankful for what our team is doing to try to keep society safe.

amanda: it's great to have you here, ceo of abm industries. coming up next, we are talking to the ceo of dutch brothers. they are launching on the new york stock exchange. joth ricci is back with us after the break. ♪

amanda: this is bloomberg markets. i'm amanda lang alongside matt miller. we got a read on inflation in canada this week that is above our central banks comfort zone typically. it's the fastest growth since 2003. it's the fifth consecutive month of the reading above the banks comfort zone. it is not unlike the u.s. driven

by housing. this is one that can affect a lot of consumers in short order. it's not the spike you are seeing but putting pressure on some big coffee players. matt: the worst months to start drinking coffee again. i've been knocking back like four or five cups a day as the price goes higher and higher. i'm never good at timing these addictions. it's worth it. i feel like as long as i get the cake that i need, even though the baby has wakened me four times, i will do what it takes to get a strong cup of coffee.

amanda: if you never stop drinking coffee, you don't have to worry about when to start. dutch bros is now in the u.s., we have with us ceo, joth ricci. there's a fair amount of excitement around this listing. what do you hope to achieve with capital? >> the capital continues to fuel growth. it's awful so infrastructure. we need to roast beans and think about supporting our employees. so lots of opportunities out there as we have an aggressive growth path ahead of us. matt: what are the advantages of trading on the new york stock exchange? >> part of the choice to do the ipo and go public was about our

people. it was to solidify a great business and give long-term opportunities to participate in the growth of the company and solidify dutch bros. we are 30 years young and it feels like we are just getting started. we are excited about the prospect of where this takes us for the next 30 years. amanda: you have had significant revenue growth. you are seeing margins that could expand from here. what gets your profit higher? >> we are challenged with commodity costs. we spend a lot of time over the last three years building infrastructure, building technology stacks, kind of investing into the company to be

prepared for the type of growth that we are seeing here. i think our goal is to be able to scale off of that investment and start to see margin expansion and what should happen with the scale of a good company. matt: you are up against some significant but pretty boring corporate competition and you've carved out of pretty youthful and energetic niche for yourself in the coffee business. is this how you hold onto employees? it's not just the input cost as far as the product. employees are really important part of this business. >> we actually talk about we are in the people business and relationships and our job is to provide a great work environment for all of our employees. so culture, chemistry, employee

development. that's our number one focus and growth strategy as we continue to look ahead and just share an culture and employment opportunity. we are built on the backs of our people. we have a service business and we just happen to do it with the product of beverage. amanda: the employee base is critical in a company like this. your retention levels are higher than your peers. are you experiencing that as you expand? >> as we have expanded into texas and oklahoma this year we have always had a great employment experience. i would classify that as good today. all we have seen is maybe the applicant pool has drawn down a bit. but we have had plenty of great people to choose from. so we have not seen the issues that maybe you have read about

in other sectors of our industry. matt: who is the creative genius behind your drinks? you've got some incredible og gummy bear dutch soda. shark attack blue rebel energy drink. how do you come up with these? >> the creative genius is our customer. we are in the business of customization. as the customer comes up with amazing ideas we are going to add it to our menu. matt: thank you for joining us, joth ricci. the ceo of dutch bros coming to us live from the new york stock exchange. for amanda lang, i'm matt miller. this is bloomberg. ♪

mark: pfizer says new data

suggests it covid vaccine gets less effective over time. the company said a booster does is a safe and effective at warding off the virus and new variants. pfizer plans to deliver the data from the united states and israel to a meeting of outside advisors to the u.s. food and drug administration on friday. the panel is expected to make recommendations on whether more americans should receive booster shots. california governor gavin newsom has turned back a conservative led movement to boot him from office. city 7% of those who cast ballots voted -- 57% of those who -- 67% of those who cast ballots voted to keep the governor. thousands of migrant are stuck in mexico because the agency processing asylum requests is backed up. the growing frustration has led hundreds of migrants to walk, attempting t