tv Bloomberg Markets European Close Bloomberg November 15, 2021 11:00am-12:00pm EST
european close, with guy johnson and alix steel -- european close," -- "bloomberg markets: european close," with guy johnson and alix steel. ♪ guy: let's talk about what is happening with covid because that is a major story. actually, let's start with the royal dutch shell story, ditching the dutch. royal dutch shell is going to leave the netherlands, move it ceo to the u.k. now let's talk about covid. boris johnson open boosters to those in their 40's. austria is imposing new restrictions on the unvaccinated. ireland preparing to recommend working from home again. andrew bailey, governor of the bank of england, has told mp's
he is very uneasy about the inflation situation. mep michael saunders says unless rates go up, and placers -- go up, inflation will overshoot the bank of england target. we continue to creep higher. that is the message. we are up by another 0.2%. the stoxx 600 at 487. what is interesting as well as that the pound is now on the front foot. 1.3431. the euro in particular very much under pressure. alix: andy dollar really popping here. let's take a look at what is happening in the u.s. start with the bloomberg dollar index, up by 0.1%. ubs and hsbc dollar positive for 2022. potentially a stronger fed and better growth here in the u.s. that all leading to the 30 year yield above six basis points, buffets 30 moving -- 30 day moving average.
that triggered a selloff in the long end of the bond market. yields pushing higher. within the individual equity market, you have utilities, consumer staples, and financials leading the way. obviously financials because of a spike in the long end. i did want to highlight two specific stocks. the real interesting one is arch coal, down 6%, yet coal prices in the u.s. at its highest level in years. coal suppliers are almost sold out for 2022. it just shows what is happening in the energy transition as we are crunching out of coal, but we still need it, and that tension is surfacing everywhere and hoping to underlie some of that inflation narrative we are seeing. guy: it was interesting to hear janet yellen over the weekend talking about the fact that inflation would not come down until the inflation is over. as we said at the last hour,
inflation is certainly not over here in europe. we have a fresh wave of covid in patients -- covid infections sweeping across the continent, and it shows no sign of slowing. the u.k. as a result extending its vaccine booster program, making shots available to people in their 40's. here with the latest, jonathan tyrone in vienna. where you are, they are putting restrictions on the unvaccinated. ireland apparently tomorrow is going to recommend working from home again. what does europe need to do to get a grip on the situation? the case numbers are starting to get alarming. jonathan: well, we are back to the prevention and containment strategy of covid. in terms of prevention, you alluded to the fact that countries are accelerating the booster shot, so the u.k. and in cyprus and austria, they are vaccinating children now, and all of the appoint men's are booked up -- the appointments are booked up. in terms of containment, what we
are seeing is, in austria, a lockdown for the unvaccinated. so a very novel public health approach. to be seen whether it is effective or whether the political consequences ultimately are worth it because low incidence rate of vaccinations, at about 65% right now and austria, and there is a vocal minority that has been out on the street protesting both masks and vaccinations, and the patient's basically with the vaccine hesitance has diminished by the government, and now we are anymore confrontational stage. alix: it is going to be really interesting to see how that is even enforceable and how that works. bloomberg's jonathan tyrone, thank you very much.
we'll be looking for further news on that, particularly when it comes to ireland. cop 26 talks concluded in glasgow. go shaders did not clinch a deal over the weekend that aims to reduce the use of coal and climate targets sooner. it is a glass half empty, glass half-full, depend on who you are. our bloomberg climate reporter just returned. your biggest take away from the communique. reporter: you had a lot of drama at the end of the communique affair. we have to remove her that what comes out of glasgow is not going to affect the markets tomorrow, even this month, or perhaps even this year, but decades out. that message was quite clear, which is that 200 countries came to a consensus that they would like to be able to speed up emissions cuts. knowledge and that they are not able to do enough right now to keep the 1.5 degrees celsius target, the most ambitious target under the paris climate agreement, quite insight.
so cop-26 gives the message to businesses and investors that governments are getting serious, but they will be meeting next year in egypt to come up with more ambitious plans to come up with targets. guy: kicking the can down the road. thank you very much, indeed. the takeaways away from cops 26. u.k. inflation is likely to steal the animate headlines this week with a runaway number for october. inflation is surging amid soaring energy prices and severe disruption to supply chains. the bank of england governor andrew bailey has been talking about this within the last hour, referencing how the bank is looking at the data. the question is, after he let the market down so badly by pulling back from a rate hike last time around, do we have any clarity as he talks to mp's this
afternoon on what happens next? marcus ashworth, bloomberg opinion, joining us now, pulling his hair out at the last decision the bank of england made. do you feel any calmer today? do you think the governor has clarified these duration? marcus: i don't think it is actually his control. as you mentioned, it was a very close call. step two doesn't look like a close call. the point is he has not been able to carry his own -- with him. the point that people are going on about his it is all about the labor market. i don't believe that for a moment. the furlough scheme has worked brilliantly. all of the element's have shown that unemployment is back down to the levels it was essentially pre-pandemic, or so close as to not be relevant. it is all about inflation. we will find out wednesday. a potential 4% handle, 3.9% to 4% forecast, puts it strict
-- puts it straight back. we heard from haskell today, the dove. he clearly isn't going to be voting for a hike. the rest of them are going to be up in the air. i suspect one or two members are swayed because i think the chief economist and bailey would vote for a hike if they had the majority behind them. i think that's what it is, persuading one or two people it might be broad-based. alix: it feels like the entirely opposite story when it comes to mainland europe. christine lagarde, ecb president, was talking to european union lawmakers about inflation and where it goes, and when it returns to its target. here's what she had to say. ms. lagarde: if energy prices keep rising and inflation persists, it may remain longer than we currently
protect. alix: still sticking to that timeline. "central convergence or divergence? -- central bank convergence or divergence? kevin: the ecb -- markets: the ecb medium is a very long medium. there's no chance really they will be doing anything. a couple of german bank ceos have complained about their rates. they would say that, wouldn't they? as far as these concerns, they want to do nothing as long as possible. the pressure is very much on the fed and really on the bank of england much more. alix: good to actually see you. marcus hath worshiped -- marcus ashworth, thank you very much. let's look at the equity market in the back of the macro data. europe is still accelerating profit upgrades. goldman sachs says it rivers
alix: one of morgan stanley's top calls is buy europe for 2022, when they are pretty negative on the u.s. equity market. many people say it is because of the european equities. the stoxx 600 recent 12 month forward earnings growth is topping about 7% growth since october 1. on the flipside, the white line is the s&p, just up 2% versus the yellow line, the nikkei 225,
and that is pretty much flat. so in terms of the upgrades in the outlook, it feels like european equities are taking the cake. sure, there may be some slowing, but that doesn't mean completely slowed. that leaves many like morgan stanley to get bullish on european equity for 2022. let's get sharon bell's take, goldman sachs cohead of global emea research. what is your base case? sharon: i think it is a combination of things. we have seen a lack of cycles for european earnings. everyone was worried about higher input costs, but what has been more important is the growth improvement we have seen. slightly higher interest rates globally will help the bank as well in europe to put up earnings. the other is it is better value than the u.s..
guy: there are some headwinds starting to grow. we are starting to see lockdowns and restrictions across many parts of the continent. we will hear from ireland tomorrow on work from home. austria today. we've got china slowing down. we've got an energy crisis. i appreciate we don't have a labor and inflation crisis at this point in time, but to what extent is that going to slow this economic recovery down? sharon: there are always risks out there and headwinds. i completely agree that if covid cases do rise significantly and we have more broad lockdowns across europe, that will be a big downside to economic growth. we also are little bit skeptical about china growth for the next couple of years. we expect around 4.5% gdp growth next year and in 2023, and european companies are quite exposed to china, a slower pace
of growth they're, but not something that is super harmful. our problems the property sector beyond deleveraging we are seeing in china. we are exposed to that. so yes, europe has exposure to some of the risk. but i would say there are some good things for europe at the moment. valuation, relatively cheap markets. i also think slightly higher inflation will be good news for europe. we spent the last decade trying to defeat deflation and the risks around deflation with the big negative for europe, and that seems a lot less likely at the moment. i also agree with you on the labor market. particularly in the u.k., it is now very strong. a little bit of wage growth, less deflation risks, there's are good things on balance for europe. alix: to go back to your point about china, as well as covid cases, right now you are looking
at all of those risks, and it seems relatively manageable. if you got more worried, what is the rotation? sharon: i agree, that is our conclusion, that we think those risks are there. don't desire it, but they are manageable. if you did see people downgrading, in the summer we had two downgrades to economic growth. we pretty much downgraded all regions as part of lingering covid cases, and just a slow down from the peak. we think you get another round of that, then i think you see investors move a bit more defensively, and a bit more defensively would probably be out of markets like europe and into defensive markets in the u.s., things like consumer staples, utilities, etc. so it would be a bit more of a defensive swing if you saw much weaker growth. guy: currency adjust all this for me. where do i go next in my thinking about the currency factor?
euro-dollar at session lows right now. we got a one dollar 14 cents handle. i can pull out one example. the cac 40 is up by 1% so far over the last five days. it is down if you are a dollar investor by zero point 5%. how big a factor you think dollar strength is going to play in my returns if i am a u.s. investor? sharon: we find about half of u.s. investors hedge their currency exposure, so hopefully they are hedged and not super affected by it. half of them do take on the currency exposure as well when they invest in european shares, so yes, if there is a view that the dollar rises strongly against european currencies, then if you want those half of u.s. investors investing in europe to take on the currency risk, that would be a concern for you. that is not our view that you see a big fall out in europe from here. we are expect and more flat euro over the next year, and that is
because, albeit that we seek the fed will start raising rates in 2022, and it looks very unlikely the ecb will do that, we think people will need less safety and security in the dollar than they have been. alix: i've got to ask about the u.k. we saw power prices in the u.k. drawing to the second highest level on record today. at the same time, 60% of u.k. companies are planning to raise their prices to recover from the supply chain cost increases. you can make the argument that household balance sheets are ok enough to withstand that. what is your base case for u.k. equities, and how long can consumers withstand that? sharon: funny enough, you were getting higher consumer inflation because companies are passing on higher input costs. i do think that the consumer is
any reasonably robust estate in the u.k. -- is in a reasonably robust state in the u.k. reasonable wage growth, reasonable employment. we get labor market data as well. all of those things we expect to be reasonably robust, and those household balance sheets are strong. the housing bucket has been good as well. all of those things we think the consumer is relatively robust. there are of course risks that if you get a cold winter that pushes up energy costs much further, that is going to hit particularly lower income households. so i feel it is one of those things that is manageable over the next few months. as far as u.k. equities are concerned, they are trading on a very large discount to the u.s. and the rest of europe. the relative valuation is 30% or 40% discounts. there's markets trading on a below average pe valuation, even though in real terms, the trade
is negative in the u.k. and elsewhere. so a rebuild of u.k. markets is very good value. the free cash flow yield of u.k. stocks is around 7%. some of this reflects some of the concern that u.k. is vulnerable to energy costs and other costs. guy: and potentially higher interest rates. we will see what happens with that. sharon, thanks for your time. always appreciated. sharon bell of goldman sachs, talking of the attractiveness of the u.k. market. shell ditching the dutch. investors apparently liking it, sending shares higher. the royal is gone, the dutch is gone. the shell remains. what should we make of the remaining shell? we will find out next. this is bloomberg. ♪
guy: from london, i'm guy johnson. alix steel is over in new york. this is "bloomberg markets." let's talk about what is happening in the energy sector. shell shares are up. the energy giant walking away from the netherlands and getting rid of its dual share structure. bloomberg intelligence senior research analyst will haynes joining us on set. walk me through the logic of doing this because i am assuming they are not doing this to upset the dutch. reporter: the primary reason is to supply their share structure, making a single line of shares, essentially improving liquidity for the company as the company approaches a major buyback program next year, so they will have a much bigger pool of shares to buy back from next year. alix: but it is not totally not to punish the dutch.
after all, a court ruling said they had to move faster into alternative energy which still stands, but i wonder how much this colors that process. will: that is a great question. there are certainly other elements and factors here in this decision. as you mentioned, there was a very high-profile loss of a climate lawsuit in a dutch court earlier this year. there was also a bp, the netherlands' largest pension fund, and i'm stay were divesting from fossil fuel's. so while i don't think these were contributing reasons in isolation, i think you could definitely see that maybe they were contributing to an increasingly hostile business environment for shell in the netherlands. guy: can i draw a line between this and the unilever story? is there something bout london at the moment that is attractive to this kind of company? i appreciate they are and every
-- in very different businesses. i'm just trying to understand what it is about lend right now that shell finds attractive. london is littered with big resource companies. is there an advantage in being with bp and anglo american and all of the other businesses listed here? will: first of all, the listings aren't going to change. shell will remain listed in new york, london, and the netherlands. but the actual -- there will be no dual class structure anymore. as far as london being an attractive jurisdiction, i see it just as a function of the history of the company being previously angled dutch, and soon to be no more. alix: does this do anything to fend off dan loeb, who wants to split off the company? will: a couple of weeks ago, we saw fairpoint come out and urge shell to break up its business. we wrote quickly that we thought
this was a long shot, that it was lightly to be properly dismissed by management. that was echoed by shell's ceo at three q earnings. we think there is an argument here for shell's relative underperformance. however, the risks involved with breaking up a business this large are substantial, and particularly when the energy transition strategy of shell is really predicated on keeping that integration of their businesses together. with ink it is unlikely to succeed. guy: thank you very much for bringing us a story. up next, the european close and the airbus ceo. this is bloomberg. ♪ ♪
we would get into the auction and see the final numbers later on. for the moment, the numbers not look that exciting. the london market is barely budging. the miners had a huge break, names like glencore. the dax up .2%. in aggregate what is happening is another fresh record high. the stoxx 600 continues to move up. we are up around .9% of last five days. every it has been a couple of points here, couple of points there. the morning session fairly uninspiring and volumes have been relatively light. we just hit 488. we are pushing up into the close. let me show you the stoxx 600. this is the picture from a grr point of view. retail has done well.
retail numbers through the rest of the week. there are the miners, down 1.2%. that is what is acting as a drag on the ftse 100. let's talk about individual names. loyal. shall, -- royal dutch shell will keep the shell. the market likes it. phillips absolutely battered today. this is on a situation developing in the united states. they had ventilators in various pieces of kit to help people breathe and sleep at night, there were problems with those. they had to remedy that and the fda is not happy with remedy. the market is beginning to conclude there could be fines, phillips smashed on that. then airbus. the dubai air show is on right
now. it started yesterday and continued to monday. the real story out of that show has been a huge quarter -- a huge narrowbody order from a consortium of airlines led by europe's a320 family. they are back to narrowbody's. the question is what happens on the wide bodies. i spoke earlier on to gilliam fari from the -- gilly you for ready -- guillaume faury, the man in the cockpit at airbus. guillaume: this is confirming airline start to look at the horizon and we see the traffic rates going up. it is still a covid-19 situation. we are not back to where we were in 2019, but i think we start to see the light at the end of the tunnel.
david: -- guy: are we going to see the transition from this being a narrowbody recovery to a wide-body recovery? when do we start to see big numbers for the bigger planes? guillaume: that is a very important question. we see the recovery on wide bodies and long distance international flights, but not to the same extent. we believe it will take more time to have the long haul flights back to what it was in 2019. we see the full recovery between 2023 to 2025 and it will be early are for single businesses than wide-body business. we think asia will take more time to fully reopen, so there's still a lot of work to be done. guillaume: let's talk about the freighter market. the freighter market has kept
many airlines going during this crisis. i was talking to shy white from virgin atlantic. he sees a big story going forward for freight. you have the new 350 s, the freighter, when will we start seeing big orders for that? are you going to see a big order at the show? what are we thinking about the sexual -- what are we thinking about the structural change in the market as a result of what freight is doing? guillaume: freight is a segment of commercial aviation that is not very big in terms of numbers of planes but plays a huge role. we see a shift in the way goods are transported around the world. there is a lot of value carried by air, not necessarily the heavy goods, but ones that have a high value and do not like to stay in inventories are being
carried around the world. we believe the market will continue to expand. it is also a structural change ahead of us is a lot of old planes that need to be retired. operators want to replace them by more fuel-efficient and carbon neutral planes, and we see the ipo is putting in place regulation that will make their owner planes not being able to be delivered 2028 onwards. that is a great platform for a cargo plane. we will see orders coming soon at the show. obviously we are in discussions for orders on that plane. guy: that was my conversation with guillaume faury, the ceo of airbus from the dubai air show.
there is a pivot taking place to freighters. you see what is happened with supply chains. they are key to take advantage of that. i wonder whether the bigger piece of news in the aviation center may come later? the xi-biden conversation, i wonder if they'll have impact on boeings prospects in china? alix: they've not approve the 737 max to coming back but is there a hint they could be approving it? guy: that would be huge for bowing. analysts are concerned boeing has not been able to take full advantage in china. the max a huge headwind in terms of certification. i wonder whether the politics will start to change that? the europeans have fostered a better relationship with china in terms of trade. alix: i was also interesting in talking about the green planes, and i have to wonder who winds
up paying for that? to the customer orders have to happen and what kind of premium will airliners be able to pay so airbus can make them, or does airbus have to make them and then sell them? guy: they probably have to make them and then sell them, but i have to say, you think about what is happening in the world, consumers are being squeezed on every single front. you think about the airline sectors here and now, and your point is a valid one going forward. the cost of fuel is going up massively. if your united airlines and you did not hedge you have to pass the cost on. the consumers are being squeezed at the gas pump, there being squeezed at the grocery. are they going to want to pay higher airfares and will that start to heat and demand. it will be a higher -- it will be a question for who pays for this. how happens i'm not sure. alix: we will need those planes and it is not like sustainable aviation where you can sub it into the engine.
you need a different plane. guy: hydrogen you do. alix: for saf you put it right in. guy: but you have to be able to produce the stable aviation fuel first. that is where the problem lies. there is not the production capability to produce that fuel. that does help airbus and boeing because in the near term airlines will be more efficient airplanes. more efficient means newer, which is good for their books. certainly a factor. it helped to the cac 40 massively. these are the final numbers. the dax up .3%. even the ftse, despite the best efforts of the mining stocks, actually managed to finish in positive territory. they were a huge drag on the market. mining stocks under pressure. alix: we will follow that china
alix: this is the european close. you're looking live shot of the principal room. coming up, an exclusive interview with rachel drury, daily harvest ceo. this is bloomberg. let's check in the blue bird first word news. in u.k. an explosion in a taxi outside of a hospital in liverpool is being treated as terrorism. police say the blast was caused by improvised explosive device the passenger was carrying. four people are being held in the case.
according to a bloomberg survey british economist expect the bank of england to increase interest rates next month that would make the u.k. the first economy to lift borrowing costs since the pandemic. shortages of workers are getting worse and driving up wages and the boe is concerned it could spread inflation. they are being union has approved new section powers in relation to belarus. the president of belarus is using thousands of migrants from iraq, syria, and other countries and what the eu calls a hybrid attack. he has also threatened to block the flow of natural gas from russia to the you -- to the eu. that is your first word news. guy: let's talk about that meeting we've already mentioned. president biden, president xi jinping holding their first virtual summit. it is expected to announce several hours. topics will range from the economy, sanctions, visa. amy celico, albright stonebridge
head of china practices joins us. she was the senior director of chinese affairs at the office of u.s. trade representative. let's think about where we are in this relationship. is this a relationship reset we are seeing as a result of this call? amy: i would not go so far as to say that. both sides understand the relationship is in bad shape, so potentially putting a floor under the continued deterioration of the relationship that we expect may happen in 2022 is the purpose of the call, just for the leaders to talk to one another, to reset the tone a little bit, reminding both sides there are positive assets to the u.s. china relations. we have not heard much about those recently. like you said this was going to be a long meeting. a lot of time talking about
areas of disagreement and level setting expectations for the relationship going forward, but coming out of it we will hear a few things that remind citizens in both countries there are mutually beneficial areas of this competitive relationship. alix: it is great to see you. it has been too long. jp morgan had an interesting note that easing trade tensions with china would help in the u.s. deal with labor as well as consumer relief and inflation. they say we see a compelling taste for easing tariffs. lower tariffs can also provide consumer relief and smooth out the recovery. on a practical level, is that on the table? amy: on a political level, not immediately. on a practical level, clearly the u.s. is considering this. we heard from secretary yellen
that obviously reducing the tariffs would be good to counterbalance inflation. i think what we can expect tonight is for both sides to talk about the progress that is being made between u.s. and counterparts in china to talk about the baseline trade agreement, talk about ways to reduce those in ways for china to buy more. trait will certainly be a component of this discussion. but i think will hear about tariff relief. guy: is it possible to compartmentalize all of this? the chinese have engaged in linkage, they have linked all of these stories together and as a result, having a conversation about trade in some way is going to involve a conversation about taiwan because the chinese have produced that linkage. the u.s. would like to
compartmentalize climate, trade, taiwan, all of these different issues. is that possible? amy: we saw it is possible because the u.s. and china did announce at cop 26. the chinese have been resisting that for quite some time while the u.s. and secretary blinken and others have consistently said we need to talk about the areas where we can cooperate, where we must compete, where we could have to be on opposite sides in a contentious way. we want the two countries to be able to have the full range of conversations, not limit them to areas where everything is tied together. the chinese had not been willing to do that but clearly last week was an example where we did make progress. in the lead up i noticed the chinese rhetoric talked about
both sides meeting the other halfway in these discussions tonight. that is little bit of progress. maybe it will be short-lived but i think it's it's a better town for having broad ranging discussions. alix: does that mean the leverage has shifted in terms of the u.s. and china relationship? what does that mean? amy: obviously president xi is it a strong domestic position. last week china had an apartment commonest party meeting where president xi was put on par with mao zedong is one of the great leaders of china. domestically he is strong. last week at aipac in his video chat with other leaders he was hearing resistance to china's rhetoric. i think he is pulling back. we are not hearing so much of
that warrior component, you have to meet us where we are on these issues. i'm not sure the u.s. side has more leverage, but i think the biden administration has been quite successful, not in talking about change in china, and talking about strengthening the united states and building partnerships. we know secretary ray mondo and the ambassador are both in asia this week around china and beating together in japan and going their separate ways to south korea and india. that is good for the u.s. mission. i think it brings us, and secretary blinken says this often come into a position of strength. i think the chinese are taking notice of that. guy: final quick question from eight. world relies on taiwan to produce semiconductors. should the world rely on taiwan
to produce semiconductors? how stable is taiwan? what is the long-term trajectory? amy: taiwan is the most contentious issue between the u.s. and china. i think we are seeing both beijing and washington push up against what seems to be the status quo and how both countries deal with taiwan. there is some instability because of the political tension. taiwan is a great economy, was useful to the united states is that ps mc has agreed to build that into the united states. i they we should continue to rely on taiwan is a very important partner. alix: thanks so much. great to see you. looking forward to the leap -- to the readout from tonight. amy celico, albright stonebridge group financial and head of china practice.
alix: ivory bloomberg business flash. a look at some of the biggest business stories in the news. two big deals in the datacenter industry. kkr global infrastructure partners have agreed to by delta series one. the price is $11.4 billion. american power has agreed to buy real estate investment trust for cite realty. that is enterprise value of 7.4 billion and represents a 2% premium to ports closed on
friday. royal dutch shell is dropping the dutch from its name. it is giving up its current dual share structure it is walking away from the netherlands, its home country for a century. relations between shell and the government -- the netherlands says it was unpleasantly surprised. a miami-based investment firm is in contract to buy the trump hotel in washington, d.c. it will be renamed to the waldorf-astoria and will be managed by hilton. that is your bloomberg business flash. that is a fun story. i wonder how many other stories we will see. as we going to 2024, maybe it is a different story? guy: politics is changing pretty rapidly in the united states. incredibly rapidly if you think about where we were one year ago. talking of that, the present
will be setting is infrastructure bill into law this afternoon. that should be a huge moan for the president. then he goes on and has a meeting with the chinese premier tonight. we also get 13 filings, i suspect as a result of which we will spending time with sonali basak tomorrow. alix: tomorrow we will also have u.s. retail sales. walmart and home depot are kicking up a big week of retail earnings. plus a look at the u.k. unemployment rate in another big event of the week is the bloomberg news economy forum kicking off in singapore. it will have over 700 of the world's most influential ceos and leaders, visionaries, scientists, entrepreneurs. they will focus on areas like finance, trade, climate, and health. a big focus will be the u.s.-china relationship. that will be fascinating.
30 year yield over 2% for the first time since early november. guy: in some ways it is fascinating we have had this call between the two leaders set up tonight. it cannot be a better starting point for that conversation will be have your with a few days in terms of roller relationship between china, the united states, china and europe. it will give us a clear grounded as to where that relationship is. guy: very much -- alix: very much looking forward to that end bank attention to the rise in body yields. looking at stocks giving up all of their gains. the dow slightly in positive territory but the s&p off .1%. coming up, dr. patrice harris joins "balance of power" and guy and i are headed to radio. this is bloomberg. ♪
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david: from bloomberg's world headquarters in new york to our tv and radio audiences worldwide, welcome to "balance of power." it is a busy day at the white house, with president biden signing the infrastructure built about 3:00 eastern time, that holding a virtual summit with chinese president xi this evening. to set up the president's day we welcome up -- we welcome washington correspondent joe mathieu. thanks for being with us. let's start with the signing ceremony. it will finally get his infrastructure bill. joe: it is hard to overstate the importance of this day for this white house. there will be a major bill signing. they waited on this to get the boast bang for the buck they could.