alix: tech is a safety.s what i'm hearing. >> not to sound like a mall over the board, we are definitely in the cyclical camp. maybe 210 snp -- 210 s and p. alix: good call, linda. thank you very much. inventory numbers are out. starting any moment. 7.2 million barrel drop. guy celine inventory did build. -- gasoline inventory did build. this comes before hurricane ida which did increase inventory because people were not driving as much on that front. the latest is that opec plus is recommending to fix the agreement. the meeting starting at 11. this is bloomberg. ♪ alix: coming up, -- this is bloomberg. checking on the bloomberg news. the taliban and other leaders have reached a consensus on the new formation of a government. top official says the taliban has been waiting for the full withdrawal before making any announcements about the government. prime minister justin trudeau will release a campaign platform. it will be fully found danced -- fully financed. a private measure of china's factory since april

alix: last question. your biggest input cost right now and how do you see that playing out over the next six to 12 months? enric: the cost for the products? most of the costs are electronics. we have the best margins in the space. we have more than 40% today across margin which is double what we are seeing in our peers. that is why we are building all of these factories. we want to have the possibility to keep supplying but also keeping the margins already seen by our investors. alix: thank you very much. it was a sincere pleasure. on record son sheehan -- enric a suncion and bloomberg's at right low. opec-plus has reported to keep production ramp-up's, that is 400,000 barrels a day. their next meeting will be october 4. this is bloomberg. ♪ alix: live from new york, i am alix steel. this is "the european close." the next 24 hours there's still a lot happening. and just moments atlanta fed president raphael bostic will be speaking. president biden will be meeting with the president of ukraine. earnings co

alix: he would be a stowaway. in somebody to chat about it, michael nicholas, oakmark funds portfolio manager. about $17 billion under management. he would probably go to space as a stowaway, take a sabbatical? michael: i'm not sure about the risk quite yet. alix: the technology, when one goes into space is really where the business proposition is. i wonder if you look at the longer-term space, where is the undervalued opportunity there? michael: we don't have any exposure to space within the oakmark funds. we are value investors, we have a long time horizon, more focus on what the business will look like five to seven years from now then next quarter. their criteria for us are threefold. we want to buy businesses at significant discounts to intrinsic value. we want those teams to be managed by people that are well aligned with us, and we want them to grow over time. the names we are here to discuss today meet that criteria. guy: why is facebook undervalued? michael: the growth potential is significantly undervalu

did alix get out her new winter coat? alix: she did not. michael: ok, retail sales are going to be awful. you just heard it from her. the number we are going to watch is the cpi. what everybody wants to know is what is happening with the so-called transitory areas of prices that have been going up. used cars, rental cars, lodging away from home, and airfares. those have started to flatten out. if that continues, people are going to feel a holland that are about the fed's argument that inflation will be transitory. you can see how they have flattened out over the past month, and the expectation is those are going to drop. but what happens with housing, that is a real mystery out there these days. you can see in these numbers, home prices over the last month shooting up, and though we are not seeing a real reaction in the equivalent of the cpi. if this starts to go much higher, we will have inflation concerns embedding themselves much more deeply on wall street, and that will be a worry. guy: i want to come back to this coat thing because thi

alix: sure.p in guernsey, there is a small island nearby where you can only drive tractors, you cannot have cars. a couple of the kids were obsessed with matthew ferguson tractors. alix: i knew there was a story. i know men and big things but there was a story specifically with the tractor. guy: you cannot look at nice cars but you could look at nice tractors. european stocks, u.k. stocks finishing your session blows. you have continued to see a downward trajectory throughout most of the day. the auction has continued that story. the ftse 100 at 69.44. we are below 7000. this is bloomberg. ♪ guy: this is your -- ritika: this is the european close. coming up, ellen pao. this is bloomberg. it is time for the bloomberg business flash, look at some of the biggest business stories in the news. apple is under fire for removing a protest voting app tied to jailed russian opposition leader alexei navalny. it can no longer be found in its russian online stores. democratic senator chris murphy calls apples

alix: it's awesome. this is bloomberg. ♪ alix: 90 minutes into trading here in the u.s.ollar bond yield here is at its low of the session with yields on the backend wishing its way lower, the curve keeps flattening and the 30 year keeps moving lower as well. we are half of an hour away from the close of the european session. here with more to break it down is riddick a cooped up. >> a lot of the focus is on the fomc with basic resources here pushing high today. this is the worst performer from yesterday but now it's getting a bit of coming from commodity stories with or higher in that session above $100 now and of course i point to natural gas. this is a dutch front-end contract down for a second day. not out of the woods in that picture. flipping up the board, most sectors are in the green but those miners are really leading the way and of course, this is glencore, here up, with stocks in the u.k. off that bid, the highest in the stoxx 600 and then back to you. ♪ the comfortable way to work out. -that looks fun actually. -it looks fun? it looks comfortable and fun. it l

alix: this is bloomberg markets. i'm alix steel.ime for stock of the hour. ford laying out plans to build up their capacity for ev batteries. they discuss the strategy to build out the electric car production. >> these plants will allow us to produce one million vehicles worth of batteries per year that is the scale and we are talking about. we needed a new site because we could not slow down with reading mediation with the brownfield site. alix: dave wilson has more of the details. this is a lot of money being poured in. dave: $11.4 billion total. when mr. farley talks about the battery plants, we should note there are three of them going in. one will be in tennessee, along with an assembly plant for electric vehicles. the other two will be in kentucky. you are talking about a total outlay of $11.4 billion. mr. farley was at the site in tennessee northeast of memphis. the kentucky site is going in south of louisville. kentucky already has ford vehicle facilities. 2025 is when they will begin production out of these plants, at least

alix: it isn't --sec.ellen: it is imperative that congress a des -- that congress address the debt limit. if not, it is likely that the treasury will exhaust its measures by. october 18 america would default -- by october 18. america would default for the first time in history. the full faith in credit would lightly be impaired, and our country would face a financial crisis and economic recession as a result. guy: so the 18th, that sounds like it is set in stone, doesn't it? is it? dates in d.c. tend to be a movable feast. our correspondent annmarie hordern is standing by from the capitol. let's talk about that. the treasury secretary saying the 18th is the cutoff date. we have to get it fixed by then. is it really the 18th? annmarie: there's a little bit of flex ability there. the real fact is they just don't know. this is treasury secretary yellen's best bet in terms of when the treasury would have to potentially default because they would be running out of cash. we do know that it was going to be someti

alix: alix: that is just dealing -- alix: that is just dealing with covid and the furlough scheme, buthe other wildcard is brexit and what that did to the labor market. even if the furlough scheme runs off, even if these companies and industries raise wages, what part of it is structural now? fabrice: the way we approach this is that part of the reason we are cautious, part of the reason we may be below consensus in some of our forecasts, is because of brexit. brexit is a price that you pay over several years. it hasn't been paid in a given quarter were at some point in the past. it is something that will stay with us for longer. in the current context, what is important to have in mind is that brexit just makes everything worse. it makes labor market shortages worse. it makes international travel worse. it makes supply-chain disruptions worse. in our forecasts, we do have something to thing about 0.5% of gdp every year that is below the forecast because we think that is the price of exit in any given year. guy: and as you say, that is going to have an inflationary impact. you highly d

alix: here are the numbers.nventory draw was 6.4 million barrels, a pretty big draw, double what was expected. gasoline inventory has a huge draw at almost 2 million, lighter than expectations. refining utilization sunk. you had refineries off-line and still off-line. oil prices holding onto powerful gains, but the question is how long is it taking companies to ramp up after ida, and you just had tropical storm/hurricane nicholas, and how quickly will refinery utilization come back as well? on the flipside, you have capex decisions companies have to make. joining us now, jeanine wai, barclays oil analyst. they just had a power and energy conference. we will get to that in a second. what are oil producers struggling with right now to get oil into the markets? jeanine: thank you for having me on. always a pleasure. in terms of our coverage universe, most is coming from the lower 48. they have not really struggle that much with production getting back online. we have covered companies like occidental that have faci

alix: that is interesting.e are saying the opposite, that the risk is greater if there is a miss because it would put the fed on hold for longer. where is the options market in relation to the scenario you just laid out? leslie: i think it is likely the fed may announce in paper -- what the fed may announce in paper does not matter in terms of market movement here in -- movement. it is the pace that matters. the market corrected for a hike. if the number is lower, they might excuse it more. recovery is just delayed but not derailed. guy: when you look at how the fed is comedic hitting now -- communicating now and when rate hikes start to kick in, do you think they are going to be able to deliver that successfully? do you think there might be able to persuade the market these are two different things -- they are going to be able to persuade the market these are two differ things? leslie: the fed has done a good job of staying accommodative. qe is having an impact. it is not necessary as much as it was in march o

with guy johnson and alix steel. guy: what do you need to know out of europe, this ahead of a general election this weekend. it looks too close to call. panic buying returns to the u.k.. we are seeing shortages in delivery to consumers. the prime minister wanted this fixed yesterday. it has been a positive week for european stocks. despite munday's selloff and rising yield, uncertainty and pmi's. let's look at where we are right now. we are down by 8/10 of 1%. we are getting back some of the ground gained on the british pound. yields are continuing to creep a little higher. alix: same thing in the u.s. i want to point out you had bank of america in the weekly outflow charts. there was $28.6 billion that came out of u.s. equity funds this week, the first three days of the week. huge amount. today, the inflation theme is front and center. s&p is down by .11%. we have yields picking up a little bit more, up two basis points. 145, we have not seen that level since to be getting of july. you have the bloomberg galaxy cryp

alix: thanks a lot. to ask, you don't have a crystal ball, but will we have a christmas this year? are the toys for kids going to be in stores? how long is this logjam? >> we will have a christmas. many of our importers, especially in the retail community have been very savvy evaluating the supply chain occurrences and they pulled forward much of their holiday season inventory. we began seeing elevated levels of cargo as early as june this year when normally that happens at the end of august or september. i feel confident the retail community will rise to the occasion once again. guy: can i look further forward than christmas. we are clearly seeing a huge amount of demand fuel services at the moment. in a years time will that demand be as high? you invest now, are you going to invest into a slowing market at some point as we start to see some of this extreme demand fading from the system? >> great question. what we see is at some point in the future, the import cargo plateau. if we can get past the delta

alix: thank you so much. we've got president biden saying he is going to order all federal employees to be vaccinated. is it ministration will issue rules requiring -- his administration will issue rules requiring employers to demand -- to mandate testing or testing -- mandate vaccines are testing. >> 100 more employees, -- 100 or more employees to ensure their workforces are vaccinated or show a negative test at least once a week. alix: this is like the gloves are off when it comes to the virus. >> i think that's exactly right. this is a really sweeping mandate. you are talking about every business. a whole bunch of other on top of that to provide pressure, health care facilities. the whole federal workforce certainly going to -- how strict is the enforcement? what does that look like? to try to get more americans vaccinated. guy: always good to get the update. thank you very much indeed for updating us once again. another bank warning that a selloff is eminent. this week, not so much. this is bloomberg. ♪ g

alix: fair. comparatively.ormer treasury secretary steven mnuchin raised 2.5 billion dollars at his new gig, libor -- gate, liberty strategic capital, mostly investing in sovereign wealth funds in the middle east. this is bloomberg. ♪ guy: tough time in the metals market coming through all types of angles, the pressure, dave joining us to break it down. dave: u.s. steel said they would spend $3 billion on a new u.s. mill. one of their competitors is doing the same thing, a two point $7 billion spending plan in their case, looking at ohio, pennsylvania, west virginia to build, and you understand why because the prices have gone up. you are talking a 25% increase over that time. and along with those prices, they set a record last month, but quite the pullback since then, as much as 35% from the high. u.s. steel raised that concern. it is now intensifying as a result of what nucor is up to. alix: thank you, dave wilson, for that. vaccines. covid vaccines for kids could be on the horizon. gregory poland will be joi

i feel like i am stepping on alex bang -- alix's toes. alix: you are.hter] guy: because of the volatility in the lack of understanding -- reopening of the atlantic caught many of us, have you changed hedging policy? fuel prices are going up, we are seeing demand for fuel pushing up towards $80 a barrel. how differently are you approaching this in terms of how you are managing fuel? scott: we didn't hedge feel before. we don't hedge fuel and most airlines don't hedge fuel. the volatility leads to the option premiums being so high you need fuel prices to go up 30% year out just to break even. every airline around the world that hedges fuel over time you loses money. you can't beat the house long-term. you may win for one or two years, but long-term you lose money. our natural hedge is to demand. when you see fuel prices go up it is because demand is strong. when demand is weak, fuel prices go down. we have a more natural hedge to the revenue line. alix: the elephant in the room, business travel. i still have not gotten on a plane, no business travel booke

alix: i'm alix steel. hitting the highest level since 2016, the crude market tightening amid global energy crunch. we will break down the potential domino effect. crypto crackdown could we will talk about regulation with yoni assia . in the sports collecting boom, trading card to nfp's have drawn interest from investors, even hall of famer grant hill will join us live. we look forward to that. amanda: a more muted session today after equity investors, a mixed picture. we are seeing strength in the s&p 500. leadership on both sides of the border. financials doing well, materials and industrials. it is the leadership of the markets that are soft and that is perhaps investors mow over what the federal reserve had to say about the path to tapering and a hawkish tone from the fed could we did get some reaction in the 10 year. you can get back to the place where you can see some minor rotation in the markets but as people will point out, still not being paid for the inflation risk. there may be a ways to go on t

alix: thank you very much. guy: thank you much. alix: jinx.es that mean i do not get to talk anymore? alix: it is alix/guy. guy: is a mind meld. that french story is interesting. it will be interesting how the rest of the eu reacts. it'll be quiet from other capitals. germans in the midst of an election will not step into this one. i think it will make brexit talks more difficult. relations with australia will be trickier. interesting to see how the relationship works out. i am almost certain the drop in travel requirements early on this week was a direct reaction to that. once you started to dig into that announcement the details were sketchy. they have not figured anything out in terms of the granularity. there has to be something, we will figure out the details later. alix: two feelings. at some point are they complaining too much? this is business, right? the other part is i feel like when president biden was talking to the united nations he says we can disagree on some stuff but let's agree on a lot of things. you can make the case talkin

alix: the u.s.nd china are trying to get together more when it comes to climate but on the military side, they have a deal with the -- with japan and australia and the deal with the nuclear submarines, that's tense. maybe we can work together on certain things but there is a hide line -- a hard line on the militarization issue. guy: they do all fit together. when it comes to china, is what has been happening with bitcoin, taking a beating today off to the news from the pboc that it's banning all cryptocurrency transactions, cracking down on illegal crypto mining. what does it mean for the future of crypto? michael, what did you make of the news? there seems to be some ambiguity as to what the term transaction means but it fits a pattern of china cracking down. >> the great view on these issues we have looked at for the past eight years is seeing no shortage of both cohabited and he commented stances from state actors like china looking at digital currencies. time and again, we have seen the challeng

alix: what is your top trade?: i would price and more rate hikes into the fed funds futures curve. it would play u.k. versus european rates because it probably a few more u.k. rate hikes then european. i would go financials. i think they are going to have a great run into the end of the year into the first quarter. guy: always a pleasure. great to get your insight. we are going to have more on what is happening with the economy, what central banks are doing. andrew sheets, morgan stanley chief strategist, joining us a little later in the program. we also need to talk about what is going on with emerging markets. the turkish lira today. falling to a record low -- the turkish lira today falling to a record low. more on that next. this is bloomberg. ♪ ♪ ♪ ritika: it is time for the bloomberg business flash. applications for u.s. state unemployment benefits rose and expect italy last week, led by a surge in claims in california -- rose unexpectedly last week, led by a surge in claims in california. claims rose to 302

alix: where'd you put your capital? we talked about tech earlier, and you were under invested intact going into the pandemic. you are upping your portfolio now, but less than your peers. how do you do it and not overpay at the same time? charles: it is an important consideration. the technology, to give unit example, we had about 70 billion canadian dollars that for folio -- portfolio. all the stages in venture capital, pre-ipo growth, and even mature technology. we are catching up on that front. we like b2b software. it fits well with our investment risk profile. it has recurring revenues that really respond to corporate needs. that is an angle. we have tackled technology in a way that would be low on the risk spectrum to fit our investment profile. guy: in terms of how we should think about tech right now, if you take a look at a lot of the portfolios, that tech in them, what we have seen is effectively a huge increase in duration. tech generally is a long-duration trade. people have moved out as well in terms of what

alix: what is your favorite trade right now?k: we continue like five-year real rates moving higher. we saw that yesterday after the fed. we think we are going to see that continue. we like it for a couple of different reasons. fundamentally, fives are probably going to have to priced in a fed that is going to move a little faster than the market has anticipated. breakevens are pretty much pricing a fed that is going to hit their 2% inflation target, so five-year real rates are likely going to be responsible for what moves fives higher. when the fed tapers, there is an important technical here where we think their purchases have had an outsized influence on tips at the front end of the curve, when you look at what they are buying in relation to with the treasury is influencing. also, the treasury is going to cut supply in nominal at the november refunding meeting. but when they do that, they are not going to cut tip supply. that is going to be another factor that supports higher overall five-year real rates. if you want to play a

alix: thank you.e will definitely be watching that, as companies have a hard time getting oil production back online. we are going to break out of this down for you, what it means for the market action, coming up. victoria fernandez come across mark bubble investments -- victoria fernandez,? global investments -- victoria fernandez, cross mark global investments chief market strategist, will be joining us. this bloomberg -- this is bloomberg. ♪ ♪ alix: inflation prices went up surprising, not to the upside. we wind up having higher ppi prices and lower cpi prices than expected. is that what is worrying markets right now? we continue to rollover within the s&p. joining us with more is victoria fernandez, crossmark global investments chief market strategist. are we in for a rocky 2021 when it comes to earnings? how are we modeling that right now? we were -- right now? victoria: we were anticipating we would see that come down little bit because of supply chain issues we had. we heard it from a lot of fo

alix: it's trying really hard.'m going to make the connection here, harvard business moving their first-year students online after the outbreak and as they continue to reopen despite delta, what happens if we start to shut down in some ways? even just pockets, what does it do to the narrative that the market is more aggressively pricing in? guy: going back to what abigail was talking about, reflation or inflation, the port of l.a., experiencing huge problems because they can't get truck drivers. as powell set on friday, you've got a tight labor market at the same time as high unemployment and it's a bizarre situation and the virus is kind of the key. it could be a situation where inflation pushes higher because you don't have the staff to deliver what you need to be able to deliver for the economy and you cannot get the stuff from around the world because of the supply chain bottlenecks in parts of asia or key commodity areas. i think these things are all connected. we haven't talked about the virus really in quite

alix: breaking news.re planning "meaningful change" to the cap on state and local tax reductions, how much you are able to write off in terms of your mortgages. it is you'd for people who live in new york, new jersey. moderate democrats have been pushing to raise that cap. it looks like they're proposing a meaningful change. we'll keep you updated on that as it crosses. guy: more details on that. huge for huge number of people. alix: one sitting right here. guy: i am sure you are paying attention to this one with a great deal of interest. let's talk about what is happening with the virus. the latest numbers in the u.k. are fairly stable, but fairly stable at a reasonably elevated level. here is the who special envoy on covid talking about variant risk. >> whilst there is virus circulating in the unvaccinated world there are huge risks of variants emerging that would be able to beat the vaccines we are using in u.k. come in the u.s., and in europe. we are in an unstable situation. let's slow down and look

alix steel in new york. alix: one of my desert indicators. i love this. we will get to that in a second. the story yield, yield, yield. we are above that 200 day moving average. 1.41 is the 100 day moving average. equity on the downside, up five point sent --0.5%. oil having the best run of weeks since early july. we are seeing a touch of volatility. the last three days, we have seen a lot more volatility picking up. the energy index is down 0.3%. all the softness and a lot of movement in the equity market. guy: let's break it down. this is september data. headline number, 71. that is up from the previous but below expectations, 72. expectations go up to 67.1 versus 65.1. what about inspiration? alix: coming back in line with estimates. we have seen inflation expectations 4.7%. coming in line, but that does not seem to be denting expectations at this point. guy: no, but it continues to tick higher. this year one year and 4.7. the story of the consumer looking at inflation and being worried about it is something we are going to have to pay attention to and

alix: walk me through that.ancy pelosi rarely calls a vote to the floor if she doesn't have the votes. there is rhetoric -- i should point out this is for the $1.2 trillion infrastructure plan. that is not the $3.5 trillion. will progressives torpedo this or will pelosi bring it to the floor to put heat on the progressives? annmarie: we have to see what she ends up doing. she could still pull the vote. as a speaker of the house she has that jurisdiction. we heard from steny hoyer when he was asked if he was confident in is going to get the votes. he replied simply with a nope. if it gets voted down it does not mean the bill is dead in the water. but it would ignite some of the pressure on the moderates in the party, especially in the senate, which they are waiting to negotiate this deal. senator joe manchin, senator kyrsten sinema that the progressives think -- progressives mean is this. we do have a leak memo from senator manchin outlining what he wants. some of that was the federal reserve starting to wind dow

alix: i wonder.have seen major investment banks try to get to the next tier of wealth, and i wonder if that is what president xi is also going to try to build up, in which case you can argue there would be more customers to work with. they might not be billionaires, but there will be a subset or there will be smaller pools to draw from. guy: is global wealth management going to the middle class? is the -- are the chinese pushing a middle-class? i am pretty sure they are. i think the margins will be different, particularly as wealth management at the lower end of the asset scale is becoming automated. alix: it will be volume pure and that is how you're going to make money. guy: i am looking forward to hearing what he has to say, the full interview coming up tomorrow. the european closes next. this is bloomberg. ♪ s bloomberg. ♪ (announcer) back pain hurts, and it's frustrating. you can spend thousands on drugs, doctors, devices, and mattresses, and still not get relief. now there's aerotrainer by golo

alix: let's get deeper into european equities. walk us through the destruction in the equity markets. >> as you said earlier and piggybacking from eddy, there are a lot of narratives equity markets are looking at and thinking it is time to sell. you have the evergrande exposure. the function gives you the average volume at a given hour. in the last 128 days, we have about 40% of the volume coming in today and double that the last 30 days. the reason is the exposure. insurance and banking to the property market in china. and you have the fed coming up as well. guy: that is a key subject for the rest of the week. will the markets change the narrative for the fed? thank you very much. another key event this week, central bank decisions. the big one is the fed. there's a raft of central banks set to report this week. alix: 13. guy: which may be unlucky. we will wait and see. we are watching closely what will happen. do you think they are putting half an eye on the markets, the story around evergrande? do you think this will influence

alix: live from new york, i'm alix steel with guy johnson in london.e biggest risks coming out of d.c. is the debt ceiling. you have a budget, and have two infrastructure bills. president biden is facing a pivotal date. for more return to washington correspondent annmarie hordern. every day feels pivotal. why is today extra pivotal? annmarie: there is a lot this administration is trying to get done. first on the list is avoiding a government shutdown, which would happen at 12:00 on friday. speaking on the senate floor, senator schumer said they would move in action on that. this would be more of a clean bill and would not include the debt ceiling which has become controversial between the two sides. potentially that gets dealt with today. then senator schumer said they would not go through reconciliation to avoid the debt ceiling drama. republicans -- democrats are urging them to do this bipartisan or at least allow a simple majority vote in the senate. right now the republicans say no. those are the first things. the second is tomorrow they're suppose

alix: at least in the u.s. it is known as the wind or trade -- the winter trade, it is always going long on the march futures and you get disappointed which is why it has that name. what will be different about the europe's winter and storage facilities that will make it a different conversation? isis: really the stored situation in europe is getting worse and not better, if you think about the amount of gas and storage is going up every day but we are still far from where we need to be for europe to have security of supply. storage is about 70% of all normally. -- 70% full normally at 80%. you see going on in asia there is not enough lng. alix: we see this in the charts, it is all coming full circle. we appreciate you being around for us. coming up, arend kapteyn is weighing on the latest economic numbers out of the u.k.. peak growth, that is next. this is bloomberg. ♪ alix: let us check in on the -- ritika: let us check in on the first word news. the chief says that the terrorist threat to the u.k. is a real

alix: that wraps it up for me and guy.ing up, the asia society vice president will join david on balance of power. we are headed over to the cable on digital radio. this is the best bloomberg. >> from the world of politics to the world of business, this is "balance of power" with david westin. >> from bloomberg headquarters in new york, welcome to "balance of power". this could affect much of the u.s. economy, even as consumer price numbers came in this week indicating inflation may be cooling down. to take us through where the u.s. economy is today and are democrat proposals could take it, we welcome adam posen, president of the peterson institution. always great to have you with us, particular the right now given what is going on capitol hill. start with the economy. where is it going? we've got the numbers, they came in later than we thought. still 5.2% up year-over-year topline number. adam: i think the u.s. economy is in reasonably good shape.

alix: this and nfib are my desert market indicators.hy what -- that is what i want to be on a desert island with. we are headed to dab digital radio. this is bloomberg. ♪ total gym includes everything you need to get into the best shape of your life. for every body at any age. it works every muscle group, including your core, using your own body weight as resistance. customers love total gym because it's fun, fast and effective. nothing delivers full body results like total gym. and right now you can try it risk free and enjoy special savings too! get on demand workouts free, free shipping and more. call now! >> from the world of politics -- >> is not $3.5 trillion, it will what will be in those programs. >> the u.s. financial committee continues to do well in the chinese market. >> this is "balance of power" with david westin. ♪ david: from bloomberg's world headquarters in new york to our tv and radio audiences worldwide, welcome to "balance of power." we begin today with a very special guest. congressman jim clyburn of south carolina

alix: i'm alix steel. this is bloomberg commodities edge. we focus on the companies, physical assets, and trading behind the hottest commodities with the smartest voices in the business. it was really only one story this week, exploding gas and power prices in europe and the u.k. which have profound implications. let's start with the u.k. record high power prices taking a break today but at insanely expensive levels, and the fact that this is happening with a mild september is worrying going into colder months. that leaves us with the gas story. gas has become even more important, currently making up 65% of u.k. total power, versus 5% for wind. the situation got worse this week as a large fire at an electrical converter station shut down a cable that brings power from france. it is not just the u.k. but europe as well. high gas and power prices are taking up a ton of government subsidies. one solution is to import more lng. but this chart shows prices trading around the same level which means there is no price incentive to divert cargo from

alix: welcome to bloomberg's commodity adage. we focus on the companies and the hottest commodities with the smartest voices in the business. the top story was the disaster that hurricane ida left in her wake from louisiana to new york and further, from power outages to infrastructure collapse. president biden: everyone has been working through the night and into the morning to get power back. there is a lot of damage and i made clear to the governors that my team at the federal emergency management agency, fema, is on the ground to provide all the assistance that is needed. alix: here is how the devastation played out in commodity markets. the impact drove wti discount to brent to the widest in five months. we are back from that level but rigs in production can ramp up faster versus refineries, which will be slower to rebound. nearly 2 million barrels of u.s. gulf coast refining capacity is now off-line, so there will be a lot more crude sloshing around with nowhere to go. ida also hit the chlorine industry. it swept through hea

alix: thank you so much, andrew. time for commodity in chief, where we speak to one executive in the commodity world. how to reduce co2 emissions is one of the biggest questions facing the human race. you can change the kind of energy you use, you can capture carbon as it is released, or you can suck carbon out of the air. it is hard but it will help. one way to do it is through the ocean. the ocean naturally takes carbon out of the air in two ways. crashing waves can dissolve co2. gas dissolves on the surface and winds its way down to the ocean floor. once co2 dissolves on the surface, it is eaten by photo plankton. when they die or are eaten by larger fish, that carbon goes deeper into the ocean where it is eventually buried into the sea floor and is formed into rock or shale. some call that marine snow. if this process can be replicated and increased, the oceans can be a tool in decarbonizing the world. it is really hard to measure how much carbon is actually absorbed , and if technology and businesses move too fa

alix: really appreciate it.ruce richards is buying that debt, as he feels like they are reaching the bottom of how low it can go. in d.c., the senate is voting on extending funding for the u.s. government. senator mitch mcconnell says the senate will pass the stopgap funding bill today. house speaker nancy pelosi says they will bring in infrastructure vote to the house today as well. bloomberg washington correspondent annmarie hordern is on capitol hill with the latest. when we go to bed tonight, will he a win or a lose provided? -- a lose for biden? annmarie: that's a good question. it is a win in that we are likely going to ever touch on. the senate will bring that vote to the floor around 10:30. there will be some debate on it, maybe some amendments, and that will go to the house and the president's desk. it could potential he be a lose for the president when you look at the infra structure bill. speaker pelosi saying she will still bring that bill to the floor. the speaker doesn't bring bills to the floor if

alix: that is good. i totally hear your point.he 10 year, the dollar, and the vix are not really moving that much. we are still at one 31% on the 10 year -- at 1.31% on the 10 year. the bloomberg dollar index still holding those highs. the reason why it is a turnaround situation is because everything is in the green. the s&p up 0.5%. but it is the safety trade leading the way, like utilities, health care, and consumer staples. my question becomes, what winds up happening into the close after we saw that huge volume buying and some call buying coming in as well? we are waiting for president biden. he is speaking at the united nations general assembly. we are going to take his speech in full. pres. biden: mr. president, mr. secretary-general, my fellow delegates, for all of those who dedicate themselves to the noble mission of this institution, it is my honor to speak to you for the first time as president of the united states. we meet this year in a moment of intermingled great pain and extraordinary possibility. we have lost so mu

alix: i don't know. we have been here so many times that it doesn't feel like it is a problem until it is a problem. having a date of october 18 for the debt ceiling is quite sick of it can because it is always very difficult to tell. now that we have an absolute date, that is something you can now try to round. so it wouldn't surprise me to see more volatility and positioning for that. we've been here before. go back to 2011. no one is going to want a repeat of that either way. so you have to think they will extend it, but for how long? what you trade off to get it? guy: and you've only got to look at u.s. politics to worry about what is happening here. we feel more and more polarized, don't we as a result of which, it may be gets harder to form this compromises and necessary to avoid these kind of crises. warning from the central bank i think should be heard. i think if you get a big problem here, this won't be a u.s. problem. this will be a global problem, and it will ripple superfast. we still got ev

alix: the risk the supply chain problems impact you on that?at has impacted this, and i have said this many times, as we have been hit with the impact of covid in our supply chain for parts. without quality parts, we cannot build a world-class quality car. we are absolutely committed to that. so we have the aftermath of covid to deal with for our supply chain. and it is a supply quality issue. guy: you talked about it last night, which sounded great, you talked about having a green drive event. i think that is going to take place on october 12. what is the dream drive event? what is dream drive going to be? peter: dream drive is the name for our autonomous system, advanced driver system. we have perhaps the most advanced system in the world today, integrated into the car, including 14 cameras, short and long-range radar, and 120 degree solid state lidar system. we will be rolling that out to the world on october 12, preceding customer delivery. alix: in order to get to where you need to get to in terms of your targets, how many people will you

" with alix steel and guy johnson. ♪ guy: thursday the ninth. 3:00 p.m. in london. 10:00 a.m.n new york. 30 minutes into the trading day in the united states. guy johnson in london. taylor riggs is in new york. alix has the day off. we look forward to the president's comments at 5:00 p.m. today. taylor: take a look at where we are in the markets today, trying to rebound from what had been three straight days of losses within the s&p 500. the russell 2000 looking at almost four straight days of losses, but we reverse that with the opening bell and try to push higher on this reflationary trade, all despite a bond market at least here in the u.s. that seems to be unchanged on the day. a very calm, well-behaved on .95% -- well behaved 1.95%. all while we are continuing to see a lot of activity going on within the energy markets. now crude off of some of the headlines we are getting from china. we are going to dig into all of that. but as you mentioned, some of the main headlines this morning all coming off of the ecb. they are going to be slowing down the pace of that pandemic bon

alix: there is. nope, it is gone. guy: i was just going to get to where i think the real action has been. that is in the commodities. alix: let's go to a different wall. guy: this is not my fault, despite the fact that alex blamed me for everything, i feel this is not my responsibility. this is where the story lies. 83% rise in u.k. net gas. energy prices soaring. the inflation story we have been debating and considering and wondering about absolutely roared into life this month. i think that is the narrative that will take us into october and into the end of the year. we do not know whether it is reflation, inflation, stagflation. that is what we are trying to figure out. in terms of the sector rotation story, we will wrap it up here. energy will be the big winner. the banks have been a big winner. the curve moves. the mining sector down hard. utilities as well, giving back a lot of ground. it is the energy and bank story, that narrative has spoken to what is happening. steeper curves, higher prices. that has been th

this is bloomberg markets: european close with guy johnson and alix steel.the european close. what you need to know out of europe? boris johnson raising taxes for workers and investors to pay for post-pandemic social care. the prime minister rutte speaking in and in person press conference at downing street. the world's largest -- slamming working from home, saying it hampers risk-taking. are we all going back to the office? if so when? we are going to be live in berlin with the details of that.

alix steel joins me. welcome to "bloomberg markets americas." we are about to get jobs and the bank of canada. taylor: it is hard to find a safe haven in these markets. bonds catching the bid. yields falling after a big movement upward yesterday and coinbase, we will chat this later, interesting comments coming out about the sec. coinbase said they were getting fighting words between the cryptocurrency spaces. guy: we are getting details and we will come back to that story. i think it is a fascinating story. that is where the action is. details from the bank of canada. little short against the dollar into this but making a few gains. dollar dipping back against the canadian dollar. unsurprisingly the bank of canada keeping the benchmark overnight rate. nobody was expecting any change. it is the commentary on what comes next. people are going to be looking for that. we bring you the details as we get it. bank of canada maintaining its weekly bond purchases at 2 billion canadian dollars. we are seeing reaction but not much. what about the jobs num

his name is alix desulme. he's a councilman in north miami, florida.nd he's also the chairman of the national haitian american elected officials network. here's what he had to say. alix: they need to find a solution for those who try to get here, to treat them fairly. we don't know what's the difference between this administration and the previous administration. so this is not what i think anyone has signed up for. yamiche: he also said that president biden's silence on this speaks volumes. and i pushed the white house press secretary, jen psaki, on this specific issue, on president biden not speaking out. here's what she said. why is he not using that bully pulpit to speak out forcefully himself on the treatment of haitians? ms. psaki: his point of view is also reflected in the actions that have been taken through the administration, including the investigation, including the change in policy. the secretary of homeland security oversees these efforts, and has been quite outspoken and quite visible on what steps we should take moving forward. and he c

building new parks and recreational areas for residents, traumatized by more than a decade of conflict. alix china reports from tripoli. the city of tripoli is also known as the bright of the sea for its beauty and location on the southern shores of the mediterranean sea. but years of conflict since the 2011 uprising against a ruler, wal mart, duffy have left libya as capital neglected. now that starting to change mohammed dismay as an engineer and runs tripoli, public service company, he's supervising a governmental campaign to renovate the cities parks and recreational areas. in 10 years of political divisions in libya, have resulted. the negligence and the public sector. life stopped the grass, dried roads, and infrastructure, destroyed. the people are tired of the fighting. no, thanks to god. we have started the campaign to renew life in the city. we are renovating all the parks and fixing roads. so people have a place to go and enjoy time with their families, with the capital seen relative calm and work under way. the mood among people here has changed what we want to live like the rest

this is bloomberg markets: european close with guy johnson and alix steel. guy: 30 minutes to the european close. what you need to know out of europe? boris johnson raising taxes for workers and investors to pay for post-pandemic social care. the prime minister rutte speaking in and in person press conference at downing street. the world's largest -- slamming working from home, saying it hampers risk-taking. are we all going back to the office? if so when? we are going to be live in berlin with the details of that. yesterday, european equity markets on the front foot with light volume. today still on the back foot with light volume. the dollar is up. we are seeing yields climbing on both sides of the atlantic. the pound 1.37, down by around 0.4%. taylor: interesting the dynamics in the last hour. i came to you 30 minutes after the opening bell. it was this idea of a reflationary trade underway. that has unwound when you take a look at the equity markets with the russell 2000 underperforming the safe haven technology index, which is still in the green. that h

johnson and alix steel. ♪ guy: thursday the ninth. 30 minutes to the close.he lady is not for tapering. eurozone bonds rallying as christine lagarde says the ecb pepp program will continue to buy bonds at a moderately slower pace. we will discuss that in just a moment. easyjet slides as it signals it will raise $2 billion in stock and debt. the european carrier also rejecting an offer from rival whiz. -- from rival wizz. taylor: -- my goal for the next hour. let's get a gold here in the market check on where we are in these markets. sort of seeing an improvement here on the tape, 4523, and an increase in this reflationary trade with the russell 2000 as well. that has really seen improvement in the last hour and a half. you are seeing bonds catch a bit of a bid. coming up at want to talk p.m. on a 30 year bond auction. we had a successful 10 year bond auction yesterday, but this is a very stable 1.9 5%. crude markets are turning around a little bit. you have been nailing this about the energy markets all week. china releasing some of their national reserves, a

he spoke with guy johnson and alix steel. >> 40% of our capacity and revenues were invested to and from. so it is fantastic news for our group and based on what we saw this summer, we expect a return of traffic numbers from 2019 to move forward very quickly. we are really, really happy about this. we have been waiting a long time. >> how are you going to configure the aircraft? economy heavy to start with? do you think this kick starts business travel? what kind of mixed you anticipate seeing? >> i think it is both. what we have seen so far in areas where restrictions have been lifted his pent-up demand both on the leisure side and the corporate side. many businesses have not seen their colleagues and customers for a year-and-a-half, so definitely in the short run we expect there to be a kickstart that continues still to be seen, but for families, it is great news, so we expect that to return quickly. as i said, pent-up demand for business, we will see if that holds after the initial demand gets realized. >> you think there is going to be a price war in the north atlantic as a result of