tv Bloomberg Markets European Close Bloomberg November 12, 2021 11:00am-12:01pm EST
♪ guy: friday the 12th. 30 minutes to the close. what do you need to know out of europe this hour? cases klein across most of -- cases climb across much of the continent. then netherlands excited to announce restrictions. in the u.k. the numbers are starting to decline, declining at the fastest rate since april. . tensions rising in eastern europe. u.s. warns russia may be planning an invasion of ukraine. the ruble has been under pressure. stellar, massive beat. clearly one of the pendant winners. which stock am i talking about?
analysts describing richemont's latest numbers as demand for luxury starts to surge. let's check out where we are with the markets. stocks are bid. there you go. we continue to inch ever higher, and there is the russian ruble, down versus the u.s. dollar by 1.8%. alix: really interesting how the rest of the markets took all of the geopolitical risks in stride. materials, industrials all leading the way higher within the s&p. energy and financials both trading a low but heavy, and a big part of that has to do with what we are seeing in the bond market. you're seeing selloff in the long end. yields moving higher. what is really interesting is this is the curve of the 20's and 30's, and it is inverting. we are seeing it yet again, the divergence. 1.96 versus 1.94.
that is what we are seeing within the bond market. the bloomberg dollar index now flipping negative, down 0.2%. it is a mixed g10 dollar story. before that we were at the highest level since march 2020. i didn't talk about commodities in the last segment, so i had to do it here. i wanted to highlight coffee because that is at a seven-year high. it is not just coffee. things like wheat, soybeans, and all of that is leading to higher food prices. anything that you need is going to be more expensive. you have the fed and central banks that might look through that, but that could have a material impact on people's pockets. we saw that with umich and the sentiment rolling over. guy: once they start looking through coffee prices going up, life is starting to get pretty serious. there are things that you can't live without in this world, and that is definitely one of them. alix: and proseco.
guy: hopefully not the same time. the fourth wave is watching over europe in a fairly big way. germany, europe's biggest economy, certainly being hit pretty hard. austria set to impose a lockdown on the unvaccinated. we are also expecting an announcement a little bit later on in the netherlands. bloomberg's european health care reporter joining us now. can you just walk me through the dynamics that are at work here? we are starting to see stabilization's and declines in u.k. numbers. are we basically seeing what we saw in the u.k. couple of months ago now washing over the rest of europe? reporter: to some extent, absolutely. delta was driving cases crazily high any summer in the u.k., while on the continent, cases were quite low. it took some time for delta to get here, and here it is, and it is growing fast. it is running up against the problem here in central europe,
like germany, for example, has one of the lower vaccination rates in western europe, about 67%. that is higher than it is in the u.s., but within western europe, it is low. so there's a combination of the breakthrough infections hitting people that have been vaccinated, and increasingly hospitals filling up in parts of germany that are hardest hit, were some of the lowest vaccination levels are, and the vast majority of patients are unvaccinated. that is hitting hard now in mid-november. it has been rising the last couple of weeks. there's a lot of consternation about what that is going to bring when winter is really here. alix: the u.s. has been typically six weeks behind europe, so i am really interested to see if that idea is going to spread here as well. thanks they got -- things a lot, bloomberg's tim loh. bloomberg has learned the u.s. is raising alarm with eu allies
that russia may be weighing a potential invasion of ukraine. washington says it is closely monitoring a buildup of russian forces near its ukrainian border. moscow denies any aggressive intentions. with the latest is bloomberg's russia economy lead. what are you looking for over the next 24 hours? reporter: we are looking for signs of any kind of pullback on the part of the russians here. they don't admit to a buildup of troops, but satellite photos and things have shown some unusual movements, so we have seen a big push now publicly by the u.s. and its allies to call and russia to pull back. there's no way question whether there is any sign whether russia is going to heed that. guy: in terms of what the objective here, what does putin want? why is this happening? greg: putin has made clear since the war back into any 14 over
ukraine that he is very concerned about what he sees as the creeping expansion by the u.s. and its allies into ukraine , building a military capability there. he repeatedly has made clear that is a redline for further expansion of u.s. military presence there. at the same time, he has seen the u.s. has stepped up naval patrols in the black sea and along the russian borders, and that is an area of concern. they see that as a threat. guy: looking forward to the coverage as this story unfolds. thank you very much for joining us. greg white joining us on what is happening out of central and eastern europe. the headwinds continued to mount for europe. it is interesting that we are seeing such a small reaction in markets. the markets have seen this play out before, but nothing ultimately really comes from it,
that upsets the apple card from a financial markets point of view. but nevertheless, the risks to europe are growing. you've got covid, the potential for conflict, gas prices rising. the list goes on and on. we don't have the same inflationary impulse that we do in the united states, certainly in the euro zone, but nevertheless, it is interesting. more and more challenges. is the outlook for european equities as good as the market seems too thick it is? alix: sharon bell over at goldman sachs seems to think there's upside for stocks. they simply, you're going to have strong fiscal and monetary policy impulses for next year, and margins are still hanging in. earnings are still coming in quite strong. so it does feel like something may give, but i also find the fact that the covid story is unappreciated by the market, and i wonder, does that mean the
markets are past covid? guy: the market seems to assume that the latest era punic breakthroughs from pfizer, etc. are really going to deliver, and as a result of which, you are seeing case numbers go up, but actually, hospitalizations are manageable at this point. largely it is hospitalizations of the unvaccinated, so that is going to encourage more people to get vaccinated in theory. but the challenges are there. we haven't even mentioned china. it is slowing down. alix: we have been here before. we have had this exact conversation before with different waves, and i said the exact same thing i will say now. is the u.s. six weeks away from what germany is going for? we have a worse vaccination rate than the netherlands, but we are doing boosters here, and kids are getting shots in their arms. where are we going to be in the same kind of spot and we are doing some regional lockdowns? guy: germany looks like it is going to be clearing vaccines for five and up fairly soon. i even i have booked my booster,
but i am old. alix: whatever, boosters are old news. i got mine a week ago. whatever. [laughter] guy: i don't know which when i am going to get, which is interesting. not yet. it will be fascinating to find out which ones we get. are we in mix-and-match territory? we will find out shortly. anyway, next we will be talking about what is coming up. mark downing is going to be joining us. this is bloomberg. ♪
in germany, the fourth coronavirus wave is hitting with full force and there is no sign of record infections easing soon. new daily cases surged past 60,000 this week for the first time. some hospitals are already overwhelmed with patients. officials say germany needs to wrap up its vaccination campaign. the labor market is tightening in the u.k. more than 22,000 job advertisements would -- advertisements were posted in the first week of november, the fourth highest since the start of 2020. driving instructors, prison officers, and forklift drivers were in increasing demand. 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'm ritika gupta. this is bloomberg. guy: thank you very much, indeed. bank of america calling for a 10% drop on the stoxx 600 by early 2022. goldman-s has a different view. the head of european strategy at b of a, sebastian rader says,
"we expect the anti-goldilocks combination of we getting growth momentum and rising real bond yields to weigh on european equities. our the bears right? willie -- will the bulls charge ahead into 2022? mark dowding, bluebay asset management, is joining us now. we've got an energy crisis underway. brexit remains unresolved. what do you think the outlook looks like here in europe versus the united states? mark: the first thing i would say is that the outlook in the u.s. does look somber. it looks like the u.s. is a secular outperformer. although we are seeing things like the michigan survey missing today and there is some response to higher prices, i think the narrative is one where there's
plenty of demand, and with consumers facing very strong balance sheets, i continue to think the u.s. economy can continue to remain very healthy as we enter into 2022. in europe, the outlook is not as strong, but ultimately, we are not as worried as maybe some of your commentators in terms of another wave with respect to covid. i think we have already had the experience here in the u.k. of elevated numbers of infections over the course of the past six weeks or so. it doesn't really seem to be doing much to weigh on the economy. if anything, it may be getting a bit of a -- for those who have not been vaccinated to go get the jab. so we see some recovery in the close trajectory, and we think the ecb is going to be more
accommodative, and certainly slower in terms of moving to bring back policy regulation and the bank of england would be. alix: does that sound right to you, or is there another kind of thesis? mark: i think the big story for us is going to be the inflation story, and what we are going to see prospectively in terms of a policy response in light of that. there are two scenarios. if inflation ends up as relatively benign and comes back of its own accord, than the profile in terms of policy is going to be pretty benign, and against that sort of backdrop, you can still see an outcome i would suggest where risk assets
can continue to perform pretty well in 2022. but the flipside of that is the narrative that inflation goes up, stays up, and becomes more troubling for policymakers, as we move through the course of the months ahead. this is actually the camp i find myself leaning towards. we have been looking for above consensus inflation all year, notably in the u.s., but the u.s. market will tend to follow global markets. guy: what about in europe? people are trying to figure out, equities seem to be the destination of choice at the moment, but i am wondering what happens in the credit markets, if we are going to see inflation, even in europe, starting to push higher. you say the ecb is likely to remain fairly accommodative. we don't know exactly what it is going to be doing in terms of the next round of purchases, but it will be interesting to see what they do on the credit front there.
how supportive do you think it is going to be in this environment? mark: i think it is going to remain supported. i think the ecb is in december going to announce in addition to the asset purchase program to offset the fact that the pepp is coming to an end in march. so i don't think you will see an abrupt end. although inflation is going up some of the delta on inflation is materially lower than we would be looking for in the u.s. or the u.k., for that matter. i thing that when we look at the u.s., we are looking at core cpi early in the new york going well above 6%. it could be even testing towards 8% if oil prices are strong to the end of the year. we don't think the u.k. will be far behind that, whereas in europe, although inflation is moving up, we do think the fact that there has been a bigger output gap in europe will
probably contain inflationary pressures to a greater degree, probably looking at inflation on a 4% handle in the euro zone. alix: what is the contagion risk from china? mark: from a chinese perspective, obviously if we see a marked slowing in china, that is going to be bad news in the context of demand for european exports, but i would say that the big narrative we see in china is more of a gross reorientation. you see this in the trade numbers we saw earlier in the week. very strong chinese export numbers, so china is the factory of the world, and that factory is facing very strong demand, so we actually see a pretty healthy outlook in terms of chinese manufacturing production. we see similarly a strong outlook in terms of chinese consumption. the notable part of the economy that is going to be slowing profoundly in china is going to
be the quality and consumption sector. that is bad news if you are brazil and you are exporting iron ore, and the iron ore price has been so weak relative to other commodities. so it is really a question of what are you exporting to china, if you are exporting goods which are used in the context of new buildings and construction. clearly that is not good news for you. but if you are producing high consumer exports, it is not clear that it is necessarily going to be such bad news. alix: mark, really great analysis. happy friday. thank you for joining us. marked -- mark dowding, bluebay asset management cio. richemont posting stellar earnings results. more on that next. this is bloomberg. ♪
♪ ritika: it is time for the bloomberg business flash. i'm ritika gupta. environmentalists confronted one of europe's top aviation executives at the climate summit today. easyjet ceo johan lundgren argued that limited flying would tax people in developing countries, but activists said that was a better way of slashing carbon emissions than what airlines had proposed, using synthetic fuels and hydrogen powered planes. rivian automotive raised $12 billion earlier this week. now it wants to build a standalone factory plant, and addition to two new vehicle assembly factories. arizona, michigan, and texas are among the states being considered for the factory site. that is your latest business flash.
ritika: -- guy: thanks very much, indeed. richemont owns a number of brands. releasing earnings earlier on that certainly beat analyst expectations. richemont is also in talks with farfetch to sell a stake. let's talk more about this with andrea fell stead -- andrea fell stead of bloomberg opinion. surely one of the post-pandemic winters. the analyst community was blown away by these numbers. why? andrea: basically, luxury has bounced back to spite the worries about china. luxury is still doing well, and jewelry and watches have actually performed pretty well. many people have accumulated savings during the pandemic. if you are a man, what do you do? you treat yourself to a watch.
if you are a lady, it tends to be a handbag or a nice piece of jewelry. alix: i actually know someone who treated themself to eight high-end watches during-dependent. i don't understand, but that is what happened. i am also interested in cannot continue, but what richemont stands to gain from letting go of its stake, with the problem was there, and what that means for richemont. andrea: it helped richemont into the digital space, but unfortunately, it was heavily lossmaking. so this deal should help take away the losses and help the company valuation. but there's also another side to this. in a way, getting rid of that part is the easy bit. it is what happens after that that is trickier.
guy: it's got to figure out what it wants to be and where it goes next. as you say, it was a helping hand into the digital world. now the digital world has transformed the sector in a really big way. it allowed them particularly to reach a younger demographic and china. talk to me about what is happening in china right now. what does demand look like? this is the high-end conspicuous stuff that maybe beijing is pushing back on. andrea: you've got wobbles that have come from the increasing covid cases and the restrictions put in place. they have had an impact on burberry. we were talking about that yesterday. what we don't know, the big unknown is what the common prosperity policy will do. it might encourage more first-time luxury buyers, but could put a dampener on those big buyers for the jewelry
brands and some of the high-end watches. guy: andrea, thank you very much indeed. sorry, eight watches? i guess you could just argue that this is asset reallocation. if he thinks the value holds up. alix: it was eight. he didn't tell us why. it got a little dicey. but i guess it does raise the question, was that the peak? is that the best it is going to get? guy: if you can't go out and you are spending a lot of time online, deciding what you want to spend your money on, may be watches is the way to go. astrazeneca one of the companies that has been front and center during the covid vaccine story. we will talk about it next. the numbers were out a little earlier on. emily fields is going to be joining us from barclays.
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friday session in europe, the last trading session of the week. has it been positive or negative? looks like the u.s. is heading for its first negative week in six. in europe a slightly different picture and currency adjusting is an important aspect of what you need to do with your view of what is happening because you take a look at a lot of the numbers in europe, they look great. dollars not so much. ftse 100 down .5%. one stop doing the damages astrazeneca. the cac 40 is up .5%. the real action for the cac 40 is in switzerland. we've been talking about richemont. the effects in the luxury sector quite dramatic. the luxury sector getting a boost from the richemont numbers. in aggregate we continue to climb. let's look at the stoxx 600 on the week. this is calculated largely in euros. we get the local currency
effect. 486. where did we start? around 482 or 483. this week we are up around .7%. currency adjusting, less dramatic effects out of the pounds into dollars. nevertheless, the climb over last few days has been dramatic. you have to think in the context of where we started, which is already record highs. the earnings season has delivered for europe. let's take a look at what the grr looks like to give you a sector breakdown of what is happening. there is the luxury sector. richemont down into the retail sector, up 1.27%. on the week it has been the miners who delivered the biggest upside. energy in the commodity space is the biggest loser. travel and leisure down again. it has had a tough week. we see the number of cases in europe continue to climb.
richemont, the effect is massive. richemont up 10 points, let's call it 11%. the u.k. housing market was expected to slow. the house builders continue to benefit. red rope upgrading guidance in terms -- redrow upgrading guidance. the stock up nearly 2%. the real dragon london is astrazeneca. it is starting to move towards taking profits when it comes to the covid shots, but that is not where the damage has been done. their inspiration issues we need to talk about. are they frontloading some of those issues? that seems to be a drag at the moment. some of the pieces they are not -- they are talking about are not up to snuff in terms of expectations. astrazeneca down 7%. a huge drag on the ftse 100. alix: a big miss for that cancer
drug which a lot of analysts highlighted. emily field, berkeley head of european pharmaceuticals equity research joins us. emily has an overweight rating on the stock. your take on earnings that are you sticking with a price target? emily: it is starting to look like with degree so there was a significant revenue shortfall. it does seem like that is driven by temporary inventory effects in china. the company was quite adamant the growth story there remains intact. what investors were struggling with is the integration issues. there are going to be a lot of moving parts into this quarter telegraphing the impact of the vaccine on margins has proven to be difficult. this is the first quarter with them including alexion on a consolidated basis. telegraphing how that would impact operating margins could be difficult for us. we were over 27%, as was the street.
the company did maintain full-year guidance, but what people wanted was insights into 2022 and we did not necessarily get that from the company on the call this afternoon. guy: let's pull that together. the alexion integration and the guidance they stopped to. are they just frontloading some of the costs or is there larger integration issue they cannot figure out? emily: it does not seem that is the case there is any nefarious issue at play. alexion revenues were pretty much in line. i think what has proven to be difficult is the legacy astrazeneca revenues operating margins have been difficult to predict throughout this year because of the impact of the covid vaccine transitioning to profitability. they also have to frontload across on the antibody for covid which is not yet approved so there a lot of different pieces
across legacy astrazeneca. alix: do you feel there is room for astrazeneca. is there way to prove the and vaccine, go into more therapeutics, move that part of the business forward? emily: on the call the company was positive on their long acting antibody, which has a one year benefit in immuno compromised people in terms of preventing covid infections you may not respond to the vaccine. it does look like that could still be a product that could be a significant contributor in helping response to the pandemic, although taking a step back, one thing that is good for everybody is the company says they will not profit from the vaccine until we work through the pandemic. that says something good. alix: fairpoint.
guy: family, looking rather sector at the moment, there is action elsewhere, there is johnson & johnson news. a lot of the other businesses in the space are looking to refocus and figure out a smoother operating structure. does that mean that astrazeneca has more competition in terms of where we want to be allocating money within the space? it has been a real turnaround story. completely revolutionize this business. others are starting to make similar moves doing different things and trying to make their businesses more attractive. does that make astrazeneca less attractive? emily: i would not say so. is there anything broken. it is the growth thesis that makes it positive on the name anywhere impaired?
i would say no. the issue seems temporary and there is a data in breast cancer at a conference this year. they have the best in class oncology portfolio of the companies we cover. investors do like pharmaceutical companies to streamline. it is something the whole space has been doing over the past 10 to 15 years and we did upgrade from last friday. we are now getting to the point where it feels like the spin is more tangible as that is on track for mid-2022 with the consumer health update in early 2022 scheduled. alix: how long will we take to know if that is the right way to go? the industry is starting to disintegrate that conglomerate model. the idea is you have different parts of your business offsetting other parts of your business you might need heavy r&d. how long until we know if this will work?
emily: i think in the case of gsk what the company has concluded is there are not a lot of synergies from having a consumer health business with a prescription pharmaceutical business. different selling channels, different ways of getting the products approved and many other companies in the consumer space over the years and potentially going forward have come to similar conclusions. in the case of gsk specifically, whether that is the right decision will come after the spin. when we get a chance to see are their investments made in the pharmaceutical paying off? alix: is the health care -- guy: is the health care sector the right place to head to if you're worried about inflation? emily: we have seen a little bit more interest in the space from generalist who have stayed away from the space over the course of this year with the looming
specter of potential drug pricing reform in the united states. it does appear the current proposal that could be added to the bill back better plan is in one of those buckets that would not be all that impactful to the sector as it stands today. taking that into effect and also the demand for the product is relatively inelastic. if you're thinking about that in an inflationary world, putting all of that together it sets up the space well for 2022. guy: emily, great stuff. always interesting to get your analysis. emily field, barclays head of european pharmaceuticals equity research. greatly appreciated. we are done in europe. europe certainly hit by some of the stocks we've been talking about or affected by some of the stocks we've been talking about over the last few minutes. richemont giving the luxury sector a massive boost. that is help the cac 40 out. these are the final numbers.
the ftse 100 being hit pretty hard by astrazeneca. you get a day like today where astra is under significant pressure. down we go. alix: also we are talking about the last day of cop 26 and are lots of questions as to did it work? did anything come of it? currently delegates in scotland are hustling over the temperature, the carbon tax, that is all in the cards. we will talk more about this after the break. dan jorgensen's denmark minister of climate and energy. he joins us next from scotland. this is bloomberg. ♪
first word news. a warning from the u.s. on russia. bloomberg has learned washington has told the e.u. russia may be considering an invasion of ukraine. the u.s. has been monitoring a buildup of russian forces on the ukrainian border as tensions between russia and the eu over energy surprise and migrants. in the u.k. numbers of parliament are urging boris johnson to crackdown on money laundering. 17 lawmakers wrote to johnson asking him to tackle economic crime. the national crime agency estimates money laundering costs the u.k. more than $130 billion per year. astrazeneca wants to profit from the vaccine developed. the british drugmaker watched pfizer and moderna reap huge profits. the vaccine will still be sold at cost to developed nations. global news 24 hours a day, on air and on quicktake by
bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. i am ritika gupta. this is bloomberg. alix: cop 26 winding down and glascow with talks to stretch into the middle of the weekend. joining us is denmark minister dan jorgensen. denmark describes its approach as a hockey stick model. when we get the final communique? minister? min. jorgensen: was that a question for me? alix: when we get the final communique? min. jorgensen: now the negotiations are going into the final stage and it is too early to say when they will finish. right now the presidency is
saying it will be this evening. they might very well bill on all night. the biggest hurdles right now is can we keep the 1.5 temperature increase alive? is it possible for us to agree to make reductions in co2 emissions so that is feasible? guy: good afternoon. do you think the summit has been successful? min. jorgensen: it is too early to say. on the one hand it is a success that so far there has been real progress on the action track. a big agreement on deforestation, big agreement on the phaseout of coal and methane and those things. in regards to the negotiation of the united nations, we do not
know where that will end. the draft that is out there is looking positive. alix: can we get anything on carbon price and trading? min. jorgensen: this is not a text that will introduce a global carbon taxation system, but it will create, if it is adopted the way it looks now, i believe a strong incentive for countries individually to introduce such systems because this will be an important step in the direction of a market economy, a global market economy where countries that are energy efficient, countries that use sustainable energy that cut their emissions are also the most competitive. guy: in terms of what happens next, we probably will not get a carbon price, there is a debate about the future of coal and we
are trying to understand what role coal will play. clearly it is an important part of the energy mix in europe and united states. china still relies on coal, as does india, as does south africa. what you think, post this summit, the future of coal looks like? min. jorgensen: we need to get rid of coal. if we need to keep the damage or increases below 1.5 degrees, which we all agree we do, then all fossils need to go and coal is the first one. i do acknowledge that is a big challenge for many countries. on the other hand we now have cheap alternatives. i am from a country that has a lot of wind. now when we built offshore wind farms they produce energy that is cheaper than the energy from coal power plants.
guy: i would like to broaden out -- alix: i would like to broaden out and talk about the energy crisis in europe. the u.s. has warned europe russia could be planning a ukraine invasion. belarus threatened the eu gas market, that they would stop transporting 20% of european natural gas. what is the risk of an energy crisis right now? min. jorgensen: i think the current energy crisis and especially the high increases in prices of energy consumers in europe just goes to show that the present system is not a good system and we need to be independent of energy sources from other countries. the right way for europe is to create more alternative energy, more renewable energy. in that way they will not only help solve the climate crisis
but also help solve a problem for themselves, which we see right now, which is you are very dependent on other countries, among them, russia. guy: what should europe do with russia? what should europe do with nord stream 2? it goes through danish waters. clearly vladimir putin would like to see that get an accelerated certification. what is your position? min. jorgensen: i think the agreement that has been made by germany and the u.s. is a pragmatic one. i do think it is important to acknowledge that the green energy transition, which all of your needs to go to, it does need to speed up. it is different from country to country how it is done. for country like poland gets around 80% of their electricity from coal. they need to bring that down to
maybe 10% or 11% in 2040. the rest of europe needs to help them in that transition. that is also taking place right now. the european union has put forward a green new deal, which not only proposes a reduction of 55%, which is a high target for europe, but also different sources of resources to pay for this and regulation to make it possible. guy: one final quick question from me. we are seeing a significant spike in bit cases around europe right now. across many different countries. what are you planning in denmark? you must be involved in this conversation. we try to figure out what the energy requirements will be. do you think there is the possibility we will see further lockdowns or restrictions that could place a dampening effect on the energy demands that
europe is going to need this winter? min. jorgensen: no doubt covid pandemic influences the energy market in several ways. one thing is the demand for energy falls. another thing is the energy security in some countries can be pleasant. if you close down society there is the danger. that effects electricity, heating, all of those things. we has a global community have an obligation to each other to make sure the countries that face those problems can get help. david: it has been a great -- guy: it has been a great pleasure speaking with you this afternoon. dan jorgensen, denmark minister of climate, energy, and utilities. thank you very much indeed. this is bloomberg. ♪
guy: stocks a little higher in the united states. what is moving? here is abigail doolittle. abigail: outsized moves for some of these storage stocks. take a look at seagate, western digital, both of these stocks up more than 10%. the interesting thing is there's no clear reason why. call volume is strong. as for the worst stocks, hp was downgraded on a week i.t. spending, and then we found out elon musk has sold, bringing the total to $5.9 billion. take a look at ruby and -- at rivian. up 66%. not too shabby for the truck maker. guy: coming up -- alix: coming up, we have a big week ahead.
the dubai air show on sunday. boris johnson also speaking. tuesday we get u.s. retail sales. i'm looking forward that, particular in terms of inventory. guy: i will be watching from afar. thursday, u.k. and european cpi. how big of a gap will there be between those numbers? a massive week for retail. target and lowe's earnings. thursday fed speakers. u.k. retail data on friday. a big week on the retail front. your kind of week. alix: totally my kind of week. coming up, jason furman joins "balance of power" with david westin on bloomberg television and radio. this is bloomberg. ♪
westin. ♪ david: from bloomberg's world headquarters in new york to our tv and radio audiences worldwide, welcome to "balance of power." next week looks like it will be a big week in washington. we have the possible virtual summit between president biden and president xi and a possible vote on build back better. we are joined by our washington correspondent annmarie hordern to cover both of them. we are starting to get news about the summit. what we know? annmarie: it is supposed to be happening monday evening and there are really no deliverables for it. it is supposed to be a frank conversation between the leaders. jake sullivan spoke about the fact it is about managing a relationship, making sure you are putting guardrails on the relationship. what will likely come up is trade. china wants tariffs taking away