president biden's agenda. a tax that will set about 700 people, those with at least $1 billion in assets and those who earn $100 million three years in a row. a separate tax would require companies that report more than $1 billion in profits to pay at least a 15% tax rate. secretary of state antony blinken says he is seeking a 50% increase in the department's information technology budget. he wants to create a more agile, diverse state department and focus more on cyberspace and digital policy. speaking at an institute today, secretary blinken said the department will leave no stone unturned in its investigation of the so-called havana syndrome. julian assange won't taint -- face solitary confinement or super max prison in colorado if jailed in the united states.

that is according to lawyers. it should have been blocked by a luncheon -- london judge. he has spent the last decade in a u.k. prison or the london embassies as criminal charges await after releasing hundreds of thousands of classified documents via wikileaks. iran isn't naming names but says a foreign country was behind a cyberattack that paralyze gas stations worldwide. the strike targeted software that controls a fuel card payment system for state subsidized gas. drivers have been left without fuel or been forced to pay more for gas at stations that are operational. the attack came weeks ahead of a massive protest over the fuel crisis. global news 24 hours a day on air and on bloombergquint take powered by 2700 journalists and analysts in 120 countries.

i'm mark crumpton, this is bloomberg. ♪ >> it is 1:00 p.m. in new york, 6:00 p.m. in london, i'm alix steel. welcome to bloomberg markets. here are the stories we are following. shares of the shareable fashion company popped in the first day of trading. in a moment we will be joined by the ceo and cofounder. we will discuss the launch of the nasdaq 100 etf, invesco global head of strategy all have top 26. later on this hour a central bank ended its fund accelerating the potential timing of future rate hikes. it has been quite a morning and i didn't mention the word earnings as we head into midday here.

let's get a quick check in on the markets. nasdaq outperforming. we are up by about 6/10 of 1%. the real movie and the real action is in the bond market. i want to highlight canadian two year yields. popping up 21 basis points. that sort of affected everything else in the market. in the u.k., a solid by across the curve. the u.k. will borrow less from the market. in the u.s. we are following canada, 10 or 20 steps behind. we have some selling in the front end and strong buying in the back end. crude getting real hit. that is putting pressure on crude and energy stocks as well. also seeing in the bond market we had $61 billion worth of five-year notes that were auctioned as well. in terms of the yield when it

was issued. always watching for demand sides in terms of how good that takedown is going to be. looks like the color was 2.55. a few days away from -- yes she is on the mind of many companies. invesco is launching a new version of its etf. that will weigh companies esg performance but also have lower esg weighted rankings for big tech companies. joining us now a global head of etf's and index over at invesco. thanks for being here in studio. >> thank you for having me on in studio, live. alix: what is the thought process behind launching this etf now? >> this is really exciting. it is very much history in the making. the launch of these new funds really brings together two of the elements -- number one is

innovation. the nasdaq 100 index, which is now in different countries, $200 billion which is how -- they're pricing the element of innovation. then esg, that is also something we are very committed to and that is one of our core beliefs. we believe in the e, s, and g. when we work with nasdaq to bring together esg innovation, we are incredibly happy about that today. alix: tell me about the relationship with tech companies on the etf. in theory, that tends to be the case. triple q is heavily weighted in tech. anna: you're right. what you are seeing is the

correlation with the nasdaq 100 index is very high. that is exactly what we wanted to see. it is not about excluding the majority of companies. health care companies driven by innovation. this is about rewarding the manager. what you see in this new product , we see the higher waiting in the index. alix: will be higher because of it? anna: it will not be higher. what we really want to give our client is optionality. we believe it is important to provide the value that they are looking for. they have the option now to go to the nasdaq 100 esg or the

nasdaq 100. they don't care so much about the esg. it is not about something being more expensive than the other. alix: how much would investors be willing to pay for something greener? before i let you go i can't let you go before ask you a question about crypto. invesco hasn't physically back cryptocurrency. do you regret not going to futures route? why did you decide to go with the hard physical asset? anna: i cannot say i regret not going the future route. we had a product and registration. when you look at the compilation of the value of the etf, it is something that we want to bring to our clients. alix: really interesting development.

alix: the chairman of the joint chiefs of staff says china is the greatest geopolitical threat to the country. in the peer to peer conversation. >> i think it is china. i said that publicly many times. i think we are living in a historical -- we are seeing the rise of a country that is unlike anything we have seen before. it is one of the great pivot points we have witnessed, the rise of china. up until today, that was 41 or 42 years ago. they had an incredible economic run.

as we go forward over the next 10, 20, 25 years there is no question in my mind that the greatest geostrategic challenge in the united states will be china. i have no doubt at all. russia has very significant -- north korea and iran is still there. i think china is clearly the most significant geostrategic threat we face. >> there have recently been some reports that the chinese have a hypersonic missile that could theoretically go into space and come down with a nuclear bomb escaping our ability to not get down. is that something i should be worried about? >> what you saw, i don't want to get too much into the classification. what we saw was a very significant event, a test of a hypersonic weapon system.

it is very concerning. i think i saw some of the newspapers, they use the term sputnik moment. it is a very significant technological event that occurred or test that occurred by the chinese and it has all of our attention. that is just one weapon system. the weapons capabilities are so much greater than that. they are expanding rapidly. they have gone from a peasant-based infantry army that was very large to a very capable military that covers all of the domains and has global ambitions. china is very significant on our horizon. alix: that was general mark milley. don't miss that full conversation on the david rubenstein show at 9:00 p.m. tonight in new york.

we want to recap those five-year auction results, a pretty strong swing to the five year yield. at the highest yield the treasury sold for below the highest yield expected which points a pretty strong demand. down by about three basis points. all the way out to the end of the curve. something else we are watching on the first day of trading, we discussed that listing with ceo jennifer hyman next. this is bloomberg. ♪

♪ alix: this is bloomberg markets. shares of runway rising in the

public debut. the listing gives the fashion side a diluted value of more than 1.6 billion dollars. we want to bring in emily chang for more. this is quite an achievement. considering going the pick -- during the pandemic no one was leaving their house and everyone was leaving sweats. emily: the good news for rent the runway is women are getting dressed again. navigating the pandemic for rent the runway. ceo jan hyman said we weren't getting out of our pajamas. e-commerce fashion came to a standstill. no one was on the runway. to get to this moment, to be ready to get out there is a huge milestone for them. my understanding is the company had plans to go public sooner. with the pandemic, things got pushed out. what they saw was the subscription business doubled. people were not just getting

dressed again. they were subscribing to rent the one-way -- runway again. alix: i wonder where the growth is going to come from next. you talked about doubling subscribers. clearly the ipo will be used for something. do we know what yet? emily: i believe jen hyman is joining us now. that is one of the questions i was going to ask her. jen hyman, ceo of rent the runway with us now. long journey, steering the company through a once-in-a-lifetime pandemic. nobody was getting out of pajamas and here we are on your big day at the nasdaq. women are getting dressed again. how does it feel? jen: i have never felt so proud. it is such a milestone day. we have gone from a one dress and one situation to a full closet in the clouds. outfitting women for every situation.

this business has always been to disrupt the industry. build the largest sharing closet and empower women to feel their best every day. the first-ever female ceo founder, coo, and cfo. it was such a special thing to be part of this moment especially after what our team went through last year. emily: the first company ever to go public with a female ceo, coo, and cfo. what does a milestone mean and what should others take away from that? jen: it is something i'm so incredibly proud of. it shows how much more work there is to be done. i think this is a step in the right direction. until women and success is in a headline in itself, i don't think our work could stop.

we raised more money today in this ipo then we ever raised in equity dollars. i heard you talking before i signed on about what are we going to do with this money. actually being able to raise this level of capital gives us choices. we are going to grow. we will significantly deal ever our balance sheet. we could make the choices as to how we continue to drive more subscribers. it is amazing. alix: do you plan to expand to new areas like men? how do you drive that next chapter of subscription close? -- clothes? jen: we have 2.5 million former customers who have all rented for special occasions for the most part. they have been this very productive funnel in the past.

50% of new subscribers are actually former customers. 50% are net new. we continue to see this incredibly somber reality of our business. every customer refers about 10 of their friends for free. they have extremely high growth because of that. the biggest opportunity we have is flat out brand awareness. our brand awareness is very low. that is primarily for us. what we planned to do is change our marketing dollars. changing our marketing dollars into a subscription first approach driving people to try prescriptions right away as opposed to using our window as the direct funnel. we plan to spend more money as

the mix of grand marketing. we do a great job of converting people. customers need to know it gives for extra buying power. there's not enough people that know that. emily: how is rent the runway handling the operational demand of warehouse shipping right now. are you seeing any delivery or apparel setbacks? jen: one thing that was fortunate about the pandemic was our shipping volume was very low. to give our leadership time to into our operation and add really high amounts of new processes. innovation, more data. it enables us to enable skills quickly and come back to scale

with so much more capacity right now. they currently support six times today's total subscriber counts. that was during covid when we were able to innovate. you have long visioned -- emily: you have long visioned being the netflix of the closet. renting versus subscribing, online versus in-store. jen: the reason i have stayed so passionate for over a decade is because i believe the multitrillion dollar fashion industry makes no sense. we spend trillions of dollars per year on clothing. 50% of which we do not use. we push it to the back of our closet. 50% of the closet is fair game

for the closet in the cloud. that is really where we are seeing this three times or less behavior. i also am a huge believer in the secondhand economy. i'm a huge fan of companies like thread up, poshmark. people could buy something new that has been worn before. it is still in great condition. it is kind of like a leasing model. we are trying to build like we are the uber of the closet. things you want to wear for a few times, a few days. we have the secondhand economy before the leasing model. everything you want to invest in. i fundamentally think that is about 30% or less than the closet. emily: you recently added gwyneth paltrow to the board. what has she contributed so far

and how do you anticipate her helping you achieve this vision? jen: we launched a major brand campaign that was one of the first times we advertised on audio, television in many years. she was a critical part in helping us think about the content, creative, brand. she is the master of bringing brand and content together. doing that in order -- in an organic way. she has very deep knowledge of the actual fashion industry as well. a representative of it. having the big e-commerce visit herself. emily: jen hyman, huge day for you. we will continue to follow how the business grows. we will be back with more bloomberg markets after this. this is bloomberg. ♪

alix: super solid five year option. demand really coming in there. that strong demand and then from the belly up to the end you are seeing some strong buying come in. the fundamentals following canada's two year yields up 20 base points. crude still going -- getting hit. a couple of pieces of breaking news. softbank's vision fund is taking it stake against recent ipo names in order to fund distributions for its lp. it is taking about a $15 billion stake in the $8.8 billion

investment. using that to fund distributions. it has done that before. it shows how softbank takes a vantage of the ipo market. one more piece of breaking news. portugal is likely headed for another snap election after the budget is rejected yet again. portugal likely headed for a snap election. interesting as we are headed into the ecb tomorrow. on the yield side and the inflation side. we will get more reaction on today's bank of canada move that has accelerated the potential climbing of the future rate hikes. this is bloomberg. ♪

mark: the chairman of the u.s. joint chiefs says china is the

greatest geopolitical threat to the united states. he's calling china's recent missile test significant and concerning. general milley spoke on the latest episode of the david rubenstein show. >> what you saw and i don't want to get too much into classifications of what we saw. what we saw was a very significant event, a test of a hypersonic weapon system. it is very concerning. i saw some of the newspapers they use the term sputnik moment. i don't know that it is a sputnik moment but it is close to it. mark: don't miss general mark milley on the david rubenstein show. former u.s. treasury secretary steven mnuchin says he is opposed to the introduction of new taxes and warning about the

consequences of a billionaires tax. on the sidelines of saudi arabia's flagship investment. >> now is the wrong time to raise taxes on anybody whether it is billionaires or average consumers. the problem is it probably won't raise much money since a lot of this money will be given away to foundations. it's probably unconstitutional. the third issue is it creates very bad incentives. mark: secretary mnuchin added the levy probably wouldn't rake in as much cast as its proponents expect. russian president vladimir putin has told the company to focus on refilling the european gas storage facilities. that is when they will have finished the campaign.

the move is expected to ease europe's supply crunch. global news 24 hours a day on gloom -- bloomberg quicktake. i'm mark crumpton, this is bloomberg. ♪ amanda: welcome to bloomberg markets. we welcome both our bloomberg audiences. here are the top stories we are following from all around the world. bank of canada accelerates a potential climbing of rates. we give you the market follow. we will talk with ceo of hydro quebec on the plans of providing renewable electricity from canada to new york city.

gm shares are tumbling. the company hit by global semi conductor shortage. amanda: that is just one of the stocks that is trading lower on these markets today. interesting day on the markets. we have many of these groups on the s&p 500 in negative territory. you could see it is modestly higher and the nasdaq is the real star. the nasdaq at a record high. powered by the record names -- many names like out this market where it is today. the big tech stocks. microsoft, alphabet is moving sharply higher as well. when we are seeing some company selling off, we are seeing a strength for others. that is the case despite the fact that energy and financials, yields are very much in focus again today. we are back at 1.53. the flattening of the yield curve globally. what does that say about global growth demand and the outlook as

we are hearing from more and more central banks. they are still moving ahead on a hawkish path. that did have an effect. i want to jump to that because we did see a reaction in the canadian dollar on the removal of quantitative easing. also a quicker path potentially to rate hikes. it could be as soon as next april. more on the bank of canada policy. greg is in ottawa today. what is the market reaction? greg: many of the central bank announcements go by. this one feels a little monumental. started with the end of quantitative easing. bank of canada governor saying we are on the path to a full recovery. we do not need quantitative easing anymore. then a very clear signal and a much more hawkish signal that rates could start to raise as early as april.

he showed an april to september timeframe. the bank of canada seeing how the economy is developing in the inflation pressures we are seeing as well may very well be in a position to start hiking rates. in terms of what the market is already pricing in. what several economists were starting to think about them having to act sooner rather than later. not only for the markets, we saw the five-year spike pretty hard. big announcement today, that really got the notice of the market. it will get the notice of households. these inflation pressures are a little stickier. it will get a little bit worse before it gets any better. alix: i wonder does it tell us that we are looking at a

scenario where you have to hike now but it will eventually weigh on growth and that's what you are seeing this in the 30 year at 1.92? greg: this is the real danger here. we have been hearing from guests on the program. central banks including ours and canada. you cannot keep money near zero forever if you are not in a crisis anymore. we talk about these inflationary pressures, the bank of canada was very clear. it is soaring energy prices. these are factors that are external. the only tool they have to combat them if they have persistence is to raise rates. we are seeing on the short and long end, what if we did it wrong? what if we choked off the recovery? they are still making 5% growth this year. up a full percentage point in today's update. alix: let's get more and we want

to bring in adp chief economist. the market reaction seems quite clear. are we looking at a temper tantrum and a policy mistake? >> i think that what is different about this particular situation is how the guidance has been today. most people feel like the federal reserve in the united states will be tapering soon. maybe as early as november. we saw it a few years back. the expectation is already made. the recognition that the lectures are due to supply chain bottlenecks. the uniqueness of the event and the transparency with the communication, i think leaves the groundwork for the market

reaction. not a surge in bond yields. amanda: one of the growing questions is global demand is slowing. the flattening of the yield curve is showing increasing concern. does that argue the risk of central bank hawkishness getting it wrong or are you discounting that? nola: i'm not discounting anything in this recovery. we have to take all threats seriously because of the unprecedented nature. we have to be cautious going to any extremes. yes, there is supply bottleneck. the demand is quite persistent. consumers have been on drop of a. there showing some downward sentiment. we are seeing consumer spending

stay strong. personal savings rates. not just in the united states but globally we are seeing strength through the second quarter of the year. that does not mean gdp growth will come down a few pegs from what we saw in the first half of the year. it doesn't mean we are looking into the recession. it is something weigh in between. alix: that's what we are seeing in earnings. it is just that strong. what has shifted though is the rollout of some of the extraordinary fiscal support during the pandemic. i don't know if we fully gone what the impact of that will be while the stimulus is still stalled out here in the u.s. when did we see that margin?

nela: a few months of transition as you know the government has been front and center in the country. the massively liquid market slowing for everybody. also in all of the direct payments. the logjams in washington, d.c. the economy has to move increasingly independently. they have to be able to take that in stride. we are not seeing the resurgence back in hospitality spending. we are not seeing the 5 million sidelined workers reenter the job market in the early part of

the year. it is an increased in workers. they have come down a notch. there is something to watch as we move on to an economy that stands on its feet. alix: always a pleasure to see you. thank you very much. coming up next, the price of power. we will talk to a ceo of hydro quebec. the company planning to deliver knowable hydroelectricity from canada to new york city. doesn't run into opposition? this is bloomberg. ♪

♪

alix: this is bloomberg markets. breaking news, dan loeb is expected to take a stake in shell and once the company to spin off its renewable and marketing business into a standalone company and you wind up having a legacy energy and oil business in different companies that would include the upstream and chemical operations. this would be a huge shift for some of these energy giants that spent a very long time consolidating and are now trying to transition into being a greener energy company. the hope to unlock value. shares up by about 2.1% here in the u.s. we will stay with energy for a moment. that is the real spotlight. the hydro is a renewable

hydroelectricity in new york city. the managing director of blackstone investing in this plan. >> hydropower is perfect for when the wind is not blowing. you have hydro available 24 hours a day, seven days a week around-the-clock. we are thrilled to be a part of new york city's cleaner, carbon free future. 1250 megawatts. just put that into perspective, that is just over 20% of new york city's average daily power. alix: the plan could see pushback from rivals that generate power from fossil fuel. joining us is the ceo of hydro quebec. sophie, thank you for joining. >> a pleasure, good day to you. alix: before we get to the issues of building, what happens if the water turns off? what happens if there is a

drought? the sun won't shine, the wind won't blow, what happens if there is a drought? >> it is important -- it is a very good question. hydro quebec operates over 40 large bodies of hydroelectricity. there are cycles, that is for sure. we are super prudent on the way we operate. to give you an example. right now, behind the dams, we have over a year of hydro quebec. this is how we temper whatever movement there is. the other thing is that with climate change, we know the trend, we are not taking that into account. we operate extremely prudently through the years. amanda: you have signed this

long-term contract with new york. it does require new infrastructure that will cost other states. maine is already in vocal opposition. what is the plan of the state of maine is successful in blocking the infrastructure? sophie: we are talking something different. that is another project. that went through the overall process. quebec went through the whole process got every permit with its partners. we started construction and then came what you talked about at the opening with those producing electricity from fossil fuels. they tried to impede the lunch of the project so that they can differ or in their hope derail the project.

the state wants it, it is not maine rejecting the project. they are very aggressive. as your investors know, their business model has everything. we are there no matter what. in their mind, here we are -- we come in and have a lot of support. we don't have the support of fossil fuel companies. we will eventually prevail because this is what the population once. this is what the decision-makers are pushing to make happen. this is where we come humbly providing the u.s. with the competitive green capacities of hydroelectricity. amanda: the real connection is

the reminder that you could have agreement and sign a deal but there is still infrastructure hurdles in front of you. have you solved them all? have you figured out what they might be with the contract, which is long-term? sophie: it is a long-term contract. the line of people, the project has been over the last 10 years. there are various stakeholders with permits as we stand for construction. we are finalizing the contract with the psc. they need to side how to can't -- sign the contract. the permits have been received. alix: i'm so sorry. quick question, as you're trying

to make everything happen, how are you handling rising costs? sophie: rising costs of what? alix: everything. sophie: you mean overall in the business? alix: labor, material, steel. sophie: this is a real and true caution. we are investing just in quebec about $5 billion a year. we are very thorough. we are securing the supply

chain. labor wise, we need to prioritize. i came on your show talking about the revised bank of canada. i am an economist. for a long time i have been saying it would stick around. the climate transition by itself is going to be for a few years. we need to be supersmart. we need to think differently on how we build projects. i will give you a very simple example. one of the costs would be to make the surveillance of our transmission line. we have the transmission of north and the consumption in the south. the inspection of this would require people going out on the board and making visual inspections. new technologies. the biggest value is not about fixing the drone. it is about asking the employees. the pressure requires us to be supersensitive.

be supersmart and be very savvy with cash management. sophie: great to have you with us. alix: stay with us. ♪

>> we have seen recovery from some of our supply base that causes deeper impact. i'm optimistic we are through the worst of it. we shared our safety protocols around the world. that is what seems to be happening and we will see a stronger q4 and even as we get to the second half of next year, continued improvement. amanda: this is bloomberg markets. i'm amanda laying next to alix

steel. we do have a correction to make here. we just talk to hydro quebec ceo. they do not operate 24 thermal plants. that was on the infographics. the company wants to clarify they operate one plant. those are small plants in remote communities. for the most part they do not operate in that fashion. not connected to the main grid. a clarification from hydro quebec and our apologies. alix: thanks for having me. gm still down by about 4% after the semi conductor issues. for amanda lange, i am alix steel, have a great wednesday. this is bloomberg. ♪

mark: i'm mark crumpton with the first word news. u.k. chancellor is promising to

cut taxes on fuel and flying. in his budget speech today he said he wanted to encourage more people to take short-haul flights within the u.k. so it would reduce passenger duties. it also would undermine the u.k.'s efforts on tackling climate change before the top 26 summit. belgium is warning poland not to treat the european union like a cash machine. belgium's prime minister said today its counterpart was playing with fire. it accuses them of threatening world war iii for insisting that poland respect the independence of the judiciary. iran's deputy foreign minister says negotiations