tv Bloomberg Markets Americas Bloomberg November 10, 2021 10:00am-11:00am EST
guy johnson. ♪ guy: wednesday the 10th. 3:00 p.m. in london, 10:00 a.m. in new york, 30 minutes into the trading day in the united states. welcome to "bloomberg markets." we've got hot inflation and hot trucks to deal with today. alix: i am really looking forward to the rivian ipo. this is the biggest ipo of the year, and we are going to be talking to the ceo. i think the question is going to become how we can grow the company, and what the natural cap is going to be in terms of producing these amazing looking, very cool trucks, by the way. guy: we will be speaking to rj scaringe pretty shortly. they do look cool. question is, will they be able
to produce enough of them? that was the question with tesla , but this is a company with huge backing. you only have to look at the amazon backing to appreciate that there are certain inbuilt advantages for this company going forward. that order they have with amazon going forward is going to be a huge part of that. markets your side, looking at a flatter curve off the back of that inflation story. alix: some real chunky moves, if i can steal a word from your vocabulary here. we can party like it's 1990. i had some pretty good hairstyling back then. the hot inflation is having the expected effect on the market. it was hotter than expected. the s&p is a little weaker, trading a tiny bit heavy, but the utilities, health care, real estate leading the upside. no surprise because look at what is happening to the bond market. a deep selloff on the front-end of the curve as the market rewrites in terms of rate hikes for the fed, adding a little more rate hikes on the back end.
obviously, that is having a serious flattening. you have a bear flat neuron the curve -- a bear flattener on the curve. if it is more hawkish, that a supposedly better for the u.s. dollar. gold finally getting a bid in that inflation hedge. it has been a wishy-washy, unreliable boyfriend when it comes to being an inflation hedge, but now up a solid $28 as it feels like maybe it is a little stickier than we thought. guy: silver also on the move, so the precious metal certainly reacting. u.s. inflation absolutely surging last month, with prices rising more than expected, the fastest pace in more than 30 years. back to alix's hairstyle in 1990. bloomberg's international economics and policy correspondent mike mckee has traveled far and wide. he is out in san francisco to
walk us through this data. the number is hot. how will the fed react? michael: well, they are in a tough position because at this point, the fed is insisting that this is all going to go away, but they can't tell you when, and every month that they get a higher and higher number to be with. we will be talking to simple disco fed president mary daly about that -- to san francisco fed president mary daly about that. the last time inflation was this hot, we wonder what alix's hairstyle was like that then. 1991 was the last time core with this high. the headline pushed up by the usual suspects, gasoline and food. gasoline up 6.1%, food up 1%. this is food at restaurants. you can see they are going up, and that is the thing that people notice. the fed is going to look at the core rate, getting pushed up as well.
housing is starting to contribute to inflation. it takes a while because of the way it is calculated, but it is now up 3.1 percent and rising on the year, and that is not going to go away quickly after we have seen all of the reports from homebuilders that they are selling houses as fast as they can. so you are looking at what the fed has left, and they have inflation well over target a cpi measure. not as much by the pce they follow. what did they do about it? is it a supply problem? is it a demand problem? can they slow the economy by raising rates? those are all questions that really need an answer. we will ask mary daly about that. i am not sure that the president of the san francisco fed will have a view on alix's hair in 1990, but we will get the other questions answered. alix: it was really cool. i will show it to you later.
mike mckee, things a lot. he will be talking to mary daly at the top of the next hour, and exclusive conversation with the san francisco fed president. meanwhile, senator joe manchin of west virginia tweeting about the risk of inflation. he says, "by all accounts, the threat posed by record inflation to the american people is not transitory and is getting worse, from the grocery store to the gas pump. americans know inflation is real, and d.c. can no longer ignore the economic pain americans you everyday." let's get more from aneta mark owska, chief financial economist at jefferies. these put the fed in a real bind. what is your take? aneta: while you could certainly make the case that there's a transitory component to these price pressures, we know when that goes away, but even when you go back to the labor market,
we think the labor market and what we are seeing in the wage dynamic explains up to about 1% of this limited inflation. even if we assume that these bottlenecks are resolved, whenever that might be, presumably in the middle of next year, i don't think we are going back into percent inflation. the best case scenario is that maybe we go back to 2.5%, 3% range. that is what wages are telling us at the moment. guy: what comes next on the inflationary train? energy prices feed into food price inflation. we are going to see a return of airfares as an expensive item and a rising item. what comes next in terms of keeping this inflationary narrative alive, do you think? aneta: i think the next three to
six months, we are going to see continued pressures. it is going to be hot in the rental market, as you talk about more pressure there. when you look at market rent indices, they have been rising at a pace consistent with something more consistent with 0.7%, maybe even 0.8%, so there's more upside there. core goods inflation, this is the beginning of the holiday shopping season. supply is absolutely constrained, and seasonal demand is going to go much higher by december, soap resume alito's shortages of product -- so presumably those shortages of products will become even more so. there's sectors that are bottoming could become -- so that could lead to a pickup and demand.
i think there's a good pressure that we actually see a 5% handle on core cpi as early as december. alix: that is going to be seriously hot headed into 2022. so the market is currently pricing in another 13 basis points of rate hikes by mid-2023. is the market too complacent in that? aneta: this is where it gets tricky because the fed obviously has laid out what they call a very stringent test the talks not just about inflation, but the employment situation. i think we can all agree that we are not quite at maximum employment yet. it is a debate where maximum employment is, and i think that getting back to the pre-pandemic employment to population ratio is just too ambitious of a goal that the fed will probably have to abandon at some point. i just don't think they are ready to throw in the towel any time soon. i think there is another response that the fed can go toward, and that is just
accelerating the taper. i think it is a much more logical response when we are not quite there on the labor market, but clearly there on inflation. we are going to have another cpi report by the december fomc meeting. it is probably going to be another hot one. i thing there is a growing probability that at that meeting, the fed accelerates the rate of tapering, maybe even doubles it, which would put them on track to finish by march as opposed to june. guy: you wonder whether that brings forward the first rate hike. this is a hot subject. it is going to be debated widely. thank you very much for giving us your thoughts. annetta markowski -- aneta markowska, thank you. rivian hitting the market today, looking to make a dent in the ev space. rj scaringe, rivian's ceo,
guy: i am not sure what the hottest number is today. it is either the inflation print we just had or the numbers i am seeing on rivian. the indicated price has gone from $110 to $120 within the last couple of minutes. let's call it circa $12 billion ipo. it is absolutely massive. the prices indicated that it could be superhot as it comes out of the gate. we think that is going to happen
sometime around 12:00 eastern. ed ludlow is with the ceo of rivian. what a day. ed: what an incredible day, and incredible indication of the opening price. rj scare encz -- rj scaringe, rivian ceo, congratulations. let's start off with what today means for rivian's future. rj: it is an exciting day. this is the results of lots of effort from a variety of different folks across the whole business. for us, we spent years and years putting this together, and what is so exciting is seeing such a diverse group of people with diverse backgrounds and interests really coming together to create these products, and standing here today, it was quite emotional seeing so many passionate faces. it was ready powerful. so we are excited, and of course, this is the first step of many in becoming a public
company and having the opportunity to really accelerate a lot of our focus in terms of the scale and impact we can have with our products. ed: rivian indicated to open at $120 a share after pricing at $78 overnight. that is a big valuation. we will do the math in new course. what is it about rivian's technology and the company that justifies that valuation? rj: as you look at our business, there's the consumer side of the business, and really the tip of the spear, the first products, we often think about as a product that will open the brand umbrella, and there really going into a segment that hasn't seen this level of innovation, this level of technology, and really allowing us to build a brand around this idea of both inspiring, but also enabling people to go to the things they love.
so we vertically integrate the electronics, vertically integrated the software stack. we built a platform that is incredibly scalable, and a lot of that vertical integration on that platform has allowed us to go really fast in building out the commercial side of our business, with our first customer really being a flagship with amazon, and their initial order being 100,000 of these vans, allowing us to have further impact in terms of how we electrify the space. ed: bloomberg reported that rivian is prioritizing the production of the amazon van. you're obviously on a deadline to deliver 10,000 by the end of next year, 100 thousand by the end of the decade. how are you going to manage that, your own consumer products and the constraints of having to deliver for amazon? rj: i think this is a misunderstanding.
we designed the company at its core, having these two different programs to create the function for us to build and grow, to develop multiple programs at the same time and launch multiple products at the same time. so when you see the commercial van, these are different teams developing them. different lunch teams, different production lines. so the van isn't built on the same line as the truck. that is a separate team that focuses on the discipline for separate organizations, of course pulling the same resources, which allows us to go fast -- of course pooling the same resources, which allows us to go fast. that is really the reason i started the company, the reason we had some of our early pivots as we designed and reiterated our strategy. it was a really a question of
how do we maxim eyes this. ed: how critical has amazon been to the various valuations the company has been assigned along the way, the credibility that rivian has been able to build? rj: amazon has been an outstanding partner. of course, they are a major shareholder, but aside from that , and much more important than that, is the collaborative relationship we have with them. the vehicles that we are developing on the commercial side, what you see on the surface is a really friendly, easy to get in and out of, very efficient, easy to load and unload the van that is up to rise -- that is optimized. what you don't see is all of the info or are building around that . essentially, the ecosystem of services that we have wrapped around the vehicle to make it very efficient to run and to be able to work closely with amazon and understand what the needs are for us to build that system has just been awesome.
it has been really exciting, and working to understand how we find opportunities for efficiency, but also how we make the environ for the drivers and operators really cover double and something they want to come into. ed: you have raised $10.5 billion in the market. what are you going to spend that money on? rj: i think, as you look at the scale of what has to happen is an industry, today there's will over one billion vehicles on the planet. a fraction of those are electric, and really over the next 10 to 15 years, we have to electrify that entire fleet. we have to replace well in excess of one billion vehicles, gasoline and combustion powered vehicles, with electric vehicles. the scale of this is in some ways unimaginably large. it is going to require multiple companies to be building multiple product. portfolios of products that
capture the market in different form factors, different segments, and for us we are very focused on that. what we are looking at today is our launch products, but making sure we have the capital to continue scaling the business, building additional production capacity for future products, continuing the develop into those future products come along with the technologies, is really key. we are really striving to help drive and lead this massive transition that we are going to have to see over the next 10 to 15 years. ed: bloomberg has reported you are in talks with the city of fort worth to invest $5 billion in a plant there. you are looking at potential sites for a plant in europe and the u.k. what is the update on those? rj: we have not had any announcement around second facilities. there is certainly a lot of speculation, but these are really important decisions, and for us, it really comes down to looking at the ability to recruit, and to help drive these
facilities, so looking at the pool of these potential locations, as well as of course the access to the supply chain, so where our suppliers are and what they logistics looks like to bring our components in. ed: you delay the start of reduction -- production on the r1t more than once. where are the pressure points? is it in semiconductors, rising production costs, labor? where are you seeing the chokepoints? rj: i would say the biggest challenge that we have across many industries is really the health of the supply chain. if you thing about building a vehicle like this, there's around 2000 parts that come in from suppliers. this is one of those rare situations where 99.5% isn't good enough. if 99.5% of the supply chain is ramping at the same rate, that creates a constraint for how
fast we can ramp the rest of the facility. that is certainly the world we are living in, along with many others, of managing what is actually a small number of suppliers, but working really close with them and partnering with these organizations to make sure they can keep up with our ramp, and that is a major focus of our team. we are fortunate to have great folks on the ground working with suppliers and making sure we can ramp at pace. ed: rivian is subject to litigation. the company has not been able to comment because they have cited the quiet period head of the listing. the first being a former employee and executive who has accused the company of gender discrimination and "a toxic bro culture." could you respond to that, please? rj: we are not able to comment on anything for prospective litigation, but the most important thing we are building
for the company is our culture, the organization, and i spend a german dismount of time on. we really focus on making sure the organization and the people within the organization and our leaders across the organization are empathetic, open, have humility, drive collaboration, and of course, it is a diverse set of leaders. as you look across the business, we have diversity in various parts of the business, and it is really important to drive diverse points of view, to make sure that is wizened about the thousands of decisions we have to make every week, that there's different points of view, different backgrounds coming together to make really high quality decisions and create an environment where that continues, and that is something that across the team, we are in credit we focused on. alix: tesla ash ed: tesla has it --ed: tesla has accused you of poaching employees and taking trade secrets. is that the case? rj: today we are about 9500
employees, and we have pulled our team together. we come from a very rod mix of backgrounds. certainly, folks have come in from tesla. we had folks come in from other automakers. we have a very large number of folks coming from consumer electronics in the technology space. as part of that, it is really important to make sure that mix of talent comes from different places and helps provide that divers point of view. of course when we bring people in from previous roles, we make it very clear that they are not to bring any of their previous work them or anything they have developed in previous roles at any company. ed: we are running out of time here. so much to discuss. tesla's mission statement is to advance the transition to sustainable energy. what is rivian's mission statement? are you seeing yourselves going into similar fields where you leverage your tech and energy storage, batteries, things like that? rj: as we think about the
transition we have to go through is a planet, it is, as i said, very large. the way we look at this, the lens we look at it through, this is something where we really talk about keeping the world adventures forever. it is such a powerful word because it is almost intimidating. it causes you to thing about not just ourselves and our kids come about our kids' kids and beyond. for us, it is a question of how do we as rapidly as possible transition ourselves away from fossil fuel based economy, and that has a huge focus on the transportation product, but it also includes energy products. this is something we will certainly get into as we try to accelerate that, and a part of this, we have to get customers excited about the product. really, our focus on products that enable and inspire the kinds of things you want to take photographs of, doing those kind of things.
that is the brand we are building, and we hope it gets people excited about making this transition. ed: rj scaringe, founder and chief executive officer of rivian, thanks for joining us. congrats on the listing. alix: thanks, ed. really appreciate that. thanks so much for bringing that interview for us as well. just to update everybody on the pricing, rivian will open at about one under $20. ipo price at $78 a share. this will be about $12 billion in terms of valuation, and the sixth largest ipo on record, the biggest ipo of this year. guy: i know that electric vehicles accelerate pretty quickly, but the rate of change in terms of going from a standing start to where we are now, absolutely i watering. it was interesting to hear some of the commentary coming from cop. a lot of money is flowing into the space right now. a lot of people are trying to figure out where we are going to
see success. willoughby rivian? will it be a ash will it be rivian? will it -- will it be rivian? will it be elsewhere? the market is all in. alix: those in the market say we are not backing off from this, and even if governments somehow change their tune or subsidies become different, car companies have already transitioned. they are already all in on this as well. you can follow tick by tick. we will also bring you any headlines that cross. again, rivian indicated to open at $120 a share. coming up, katerina simonetti, morgan stanley senior vice president. this is bloomberg. ♪
they inevitably will, will it be more difficult to sustain all the values that people have over the last year and a half? alix: that was david rubenstein speaking to bloomberg's dani burger at the super return summit in berlin. he is also the host of "peer-to-peer conversations" on bloomberg television. katerina simonetti, morgan stanley private wealth management senior vice president and private wealth advisor, joins us for that. so this is going to knock out all the valuations we have seen. to that point, i should point out that rivian is indicated now to open at one under $25. talk about valuations. what do you think? katerina: thank you for having me on the show. of course, the market has given off surprise after surprise after surprise. valuations absolutely matter. as much as the retail investors in the markets -- supply chain
interruptions, higher labor costs, all of that eventually is going to translate into the earnings revisions, not to mention potential for higher taxes, higher inflation. this is the reality. with that said, we the consumer are strongly supporting this market, and we think that this spending, strong consumer spending, is going to continue throughout the end of the holiday season. but the question is what comes after. as much as the retail investor is so worried about taking money off the table too soon, and our opinion, what they should be worried about is the excessive risk to their portfolios. it is the perfect time to gravitate towards a defensive place, to take profits, and to be in the sectors that are strategically positioned towards this more volatile market that present a lot of challenges. guy: alix is going to laugh at
me now because i have been asking this question a lot, but i hear this being asked by other people. are you suggesting you should not be fully invested at this point? katerina: absolutely. this is precisely what we are suggesting, but not to be fully invested. we are suggesting that we shouldn't be invested in the sectors that are disproportionately up. this is the perfect time to evaluate our investment portfolios, see what sectors performed well, take some gains off the table in sectors like s&p 500, like russell 2000, like certain parts of technology, and see the sectors that are positioned to do well in the following years, like health care, where there's a lot of pent-up demand due to covid. like financials that are positively correlated to the higher interest rate environment. this is going to be our reality. the fed is about to start
raising rates. we really like consumer staples. we still like consumer services. so the point is there is still a way to make money in this market . it is ok to be fully invested, but we should be doing it in a very smart, strategic way. alix: i knew you are going to ask that question next. i think the mind meld today is complete. citi had an interesting call the other day, saying they are actually positioning for a decline in inflation. they see the peak coming in the next three to six months, and want to position for a decline in inflation. does your thesis encapsulate that, or does it wrap in higher, more sustained inflation? katerina: it is an interesting time when it comes to inflation. federal reserve, for example, views it as perhaps transitory in nature, but in our opinion, we could sit -- we should consider the fact that higher inflation is perhaps here to stay, both higher inflation and higher taxes. what we see right now is the
increase in cost supported by higher demand, but we can't ignore the fact that it is also fueled by stimulus checks, by the fact that people had more money to spend because of the performance in the market and in cryptocurrency, and knowing into the new year the trend is to continue. we think that inflation levels are going to be higher, and perhaps they are here to stay. guy: do you think wages keep up with inflation? your comments on the consumer being fairly healthy at the moment is certainly borne out by the data, but there is a gap currently between wages and inflation. there's a squeeze on the consumer. does that become a bigger problem next year? if so, how does that work its way back into the market? katerina: that certainly is data to watch. the labor market is really challenging right now. people on one side are seeing labor shortages, and pressure on
wages, but what we are also concerned about is the decreased saving rate in the country. we always say in almost every narrative that consumers are driving behind our economy they are seeing this right of savings declining. this is something that could present a challenge, absolutely. alix: i just want to point out rivian is now indicated to open it when under $20, so we are really bouncing around this level. that stock priced at around $78 a share. where does this leave your view on technology stocks, the big names, where if you haven't owned them, you have really got beaten up and you can't seem to beat your benchmark? what do you do? katerina: we are not ready to give up on technology yet. the most exciting part about the world of technology is research and innovation and how much investment is being made into this technological development. we think this is the time to be
really selective about the technology space, and technology absolutely should remain within the investment portfolios. the competitive commissioning -- competitive positioning of select technology in our port folios are more important than ever. we are huge proponents of profit taking. this is the time where, if you see the disproportionate growth in certain sectors of technology in our portfolios, this is the time to strategically take profit and reallocate to the parts of technology that are going to continue to grow, and there's a germans amount of opportunity there. we think money is absolutely to be made in technology. guy: where does that leave the headline index? i heard what you said about the s&p, about the russell. as we get this rotation, does the index level come down? katerina: there is a time for
investing in indices, and then there is a time where the asset management and very careful secured he selection takes place. this is the time for quality. the time for de-risking and strategic positioning. when we look at the positioning of the sectors within the portfolio, we have to ask ourselves, is there a competitive advantage? is there the price sensitivity that companies can tick advantage of? or is this something that is disproportionately positioned to not make a lot of profit next year? we believe that this is not an ideal time for index investing, but instead, rotation to quality in individual security selection would work better in this market. guy: bottom up, not top-down. katerina, thank you very much,
indeed. really appreciate your time and your analysis. katerina simonetti, morgan stanley private wealth management, thank you very much, indeed. we've got some oil data. alix: in particular, the markets are really expecting much needed relief for this week's reading, and we did get it, but it wasn't as much as we thought. overall, crude builds came in at about one million barrels. you did see a slight draw in cushing. gasoline inventories drew, distillate inventories grew. it does not feel like we are out of the woods yet, but the eia really did help put the kibosh on high or -- on higher oil prices for the time being. so that could be more of what is leading the market. but we did get that build one million barrels of oil from last week. coming up, ursula burns, into graham -- burns, integrum founder, will be joining us. this is bloomberg.
ritika: this is "bloomberg markets." coming up, and interview with mary daly, the san francisco -- an exclusive interviith mary daly, the san francisco fed president. this is bloomberg. ♪ let's check in on the bloomberg first word news. president biden and china's xi jinping will hold a virtual summit next week. ties between the two largest economies have improved over the last months. china is signaling it is unlikely to join a global pledge to cut methane emissions, saying it is already doing enough. a senior chinese negotiator at cop-26 climate talks accused the u.s. of asking nations to pledge to cut greenhouse gases without offering solutions on how to tackle the problem.
president xi jinping also failed to attend the conference, a move criticized by president biden. the new york-based firm now boasts $70 billion in assets. cofounders michael reese and michael short adopted a silicon valley type business model for financial services. they spoke to erik schatzker for bloomberg. we said -- >> we said there is a chance to be that disruptor, and we purposely built a business model that looked a whole lot more like a tech company than financial services. we did not start and say our base model is a bank, and how do we become a better bank. ritika: you can watch the entire interview tonight on bloomberg tv starting at 9:30 new york time. global news 24 hours a day, on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i ritika gupta. this is bloomberg. guy: thank you very much,
indeed. the super return international summit is back in berlin some of the world's largest private equity and venture capital event. joining us now from the summit, bloomberg's dani burger. were to you. -- over to you. dani: i am pleased to say we are joined by ursula burns, the founder of integrum holdings. of course, you were formerly the ceo of xerox as well. you are on many boards. you have been on many boards. but of course, private equity is where you find yourself now. let's talk a little but about integrum. part of the core of integrum is diversity, inclusion, social impact. what does it mean to have this at the core of a firm versus lot of private equity, which kind of attack it on at ash which kind of -- which kind of tacks it on afterward? ursula: i formed the firm with
three other partners, mid to late career. we had already done a bunch in our lives, and we found ourselves sticking about what we could do in the future, and what we thought was to try to actually change a little bit of the way that business building is done today. business building is done largely by people who were born and raised to be in pe firms. the thing about it when they go to college, they grow up, etc. we wanted to have a more diverse firm, not just racial or gender diversity. we wanted experienced diversity as well. we wanted age diversity. we wanted to diversify the gender pool we use. everything. we won to start from scratch and build a firm that had nothing before. everything is broadening access to people who were not in this
forum. diversity and equity inclusion is not an afterthought. we are not taking something that is already running and trying to contort it to be diverse or equitable. we are trying to build it from the bottom up, and that is the difference, i think. it is important that we are not a diversity firm. we are an investment firm. we are going to be as good or better than investing firms out there, what we want to do it in a different way. dani: it is a competitive environment out there. you started earlier this year. how have you found it so far? how has the environment been on this project that you embarked on? ursula: the approach that we are taking, our ability to get talent into the pool of people we are looking at is amazing. so young talent, we are a small fund, $1 billion, small compared to the world out there, so we can bring people in who can work on things with us from the
beginning. so younger people and senior people actually all engage around deals, all engage around staffing the organization, all engage in building, so we have found access to talent to be really good. fortunately, we are only hiring 10 to 15 people, not hundreds and hundreds, because that is a challenge. talent is a challenge in the world. dani: it is interesting that you say we are not a diversity firm because unfortunately, often in this world, when you have a diverse firm, sometimes that is the label that gets put on it. you look around at a conference like this, you see that it is mostly white and mostly male. why is this industry having such an issue? what are they getting wrong that this diversity question is very far from being solved? ursula: i think they are getting the same things wrong the couple of companies got wrong from many years.
i would say they are one cycle behind, and they have to get on it because i'm sitting in the hallway here, and i think i'm the only person of color that i have seen, and they're a very few women around. this is not sustainable, obviously. the facts are already in. the die has been cast. you are more innovative. you have better results. you are more future ready if you are diverse. you serve more people if you are diverse. so this ability to actually stay in the all white, male club is not going to last for very long. i think this is the next place that there will be a turn, and private equity and venture capital firms. we did a study in this diversity action alliance i started with a couple of people and said, why are there not more? we studied it and looked at just the performance. it is unbelievable.
in public companies, the progress that has been made in private terms -- private firms and pe firms, it is an embarrassment. literally, you could not design a less diverse set of firms, and that is what we have. the good news is that the owners and founders and the principles of these firms know it, and they are starting to change. it is just taking a lot longer than it should take. guy: every journey starts with a single step, so we wish you well with that, and progress, as you say, needs to be made. can i talk a little bit about something else that may not be sustainable as well? that is the current valuation picture. we have just seen a superhot inflation number out of the united states. rates are expected to go higher. what impact do you think higher rates are going to have on the private equity industry and evaluations that are currently being ascribed to assets? ursula: i think that right now,
we are in a superheated mode. we have been there, unfortunately, for five to seven years, and it is just not cooling down at all. every year that we think something is going to impact it, without the pandemic would come actually it has come out of the pandemic even hotter than before. so in normal times, i would say that inflation would have a negative or a chilling effect, but i am not sure that that is going to be the case. we have been riding a wave, we meaning industry. investing has been riding a wave for 15 years. now something has to stop it. someone has to adjust evaluations because now anything that is tech enabled that trades on multiples of revenue, the good news is integrum is not in that space, but it is a very big challenge right now. i don't believe that inflation
is going to be the cooler of that. i think something else has to happen structurally to slow down this way we are on. alix: all you have to do is look at rivian today, may be opening at about one had a $20. i want you to put on your xerox hat for a second. yesterday we saw the breakup of ge spinning off into three parts. you ran a huge company and you made acquisitions as ceo of that company. do you feel like the era of the big conglomerates in the u.s. is over? what does that do for competitiveness for u.s. business? ursula: i think that capital-intensive conglomerates are waning now, but we still don't lose sight of the fact that we have massive conglomerates in software and services. so it is just a different way to look at size, a different type
of size. i think technology conglomerates on capital-intensive business are going down, but tech businesses, i think not. alix: thank you so much. we really appreciate your time. ursula burns, integrum founder, and bloomberg's dani burger, thank you for bernie that -- for bringing that interview to us as well. this is bloomberg. ♪
ritika: it is time for the bloomberg business flash. general electric has launched an offer to buy back as much as $23 billion of debt. the company is on target to cut its borrowing by more than $75 billion in the three years through next month. yesterday, ge unveiled a plan to put the corporation into three separate companies. about 1/4 of financial services
firms plan to cut jobs in new york city in the next five years. that was the highest share of any industry surveyed. just 28% of the city's one million office workers are back on average workday. employers expect that to rise by the end of january. that is your latest business flash. alix: thanks so much, ritika. alix: i do think that is an interesting question because what mayor elect adams will confront in new york city, it happens when those jobs are actually reduced? that has a profound effect among rent, among shops, whatever you take it. i think it is going to be any enormous issue and it is going to take a very long time to snuff out. guy: and you've got to get all the info search are right around that. you've got to make people feel comfortable with the idea that they can make that journey from
their homes to the office. i think eric adams is certainly, as you say, got his work cut out for him. it has been the narrative here in london area we started to see people coming back. but we are no clue -- but we are nowhere close to being full. we saw an initial spike, and then we are starting to fade at a little bit. it is going to be interesting as we go through the winter, whether people want to stay at home or whether they actually do want to come into the office. but as we have discussed in the past, wall street is a concept rather than a place now. you can be anywhere. florida, texas, you name it. alix: a lot of them in florida. guy: we are going to be in san francisco among up. mary daly, san francisco federal reserve president, joining us next for an exclusive interview. this is bloomberg. ♪
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johnson and alix steel. ♪ guy: wednesday the 10th. 30 minutes to the close. what do you need to know out of europe this hour? inflation is hot. from china to germany to the united states, are central bank's behind the curve? we will hear from san francisco fed president mary daly. idv surges as the u.k. broadcaster points to record revenue. its takes a step lower. the company warns that inflation will continue into next year. the ceo saying there will be shortages as we hit the key holiday season. equities in europe are higher 0.2%. the euro is lower. the dollar very much on the front foot.