tv Bloomberg Markets Bloomberg November 17, 2021 1:00pm-2:00pm EST
world to promote chain. also saying that china would contribute to an open world economy. >> china cannot develop an isolation of the world, nor can the world develop without china. china will not waiver. mark: they reached an important understanding at the virtual summit. covid-19 cases in germany have hit a record. they went to make sure that they have a sufficient supply of boosters. a government advisor says he hopes the country will let -- gradually loosing.
the capital is tightening curves , even after new infections failed to single digits. offering drug manufacturers funding to expand domestic production of mrna vaccines. the plan aims to increase availability and build capacity to address any future pandemic. american will resume flying its entire fleet around 2022. the airline could not say when business travel would recover fully. 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.
this is bloomberg. ♪ >> i am matt miller. welcome to bloomberg markets. here are the tops toys we are following for you around the world. outpacing fear. david solomon spoke at the new economy forum. the ultimate validation of tesla. the automaker's public debut. we will bring in our editor-in-chief to explain. 's short interest in the market. a leading analyst firm.
we see the s&p 500 down about a quarter percent. the u.s. ten-year is losing a little bit in terms of its yield. the dollar index falling and crude coming off $2.19 a barrel as we hear more about the possibility of a release. we are also getting the results of the 20 year auction. take a look at the bond. we will get more coverage on that bond auction later in the program. right now i want to get to one of the stocks that is moving today. this comes after t.j. maxx posted third-quarter results.
the supply chain is having a big effect on a lot of retailers, heading into the holidays. t.j. maxx or tk max, as it is known outside the u.s., not getting hit too hard by other concerns. >> that is correct. they have enough inventory for the holiday season. we think they are in the best shape that we have seen so far. matt: they are getting away with it. those who sell staples are seeing a lot more margin
pressure. >> they noted they would have 80 to 90 basis points for the fourth quarter. the margin is there across the board. inventory was the silver lining. for a long time, everyone questioned, how will there be excess inventory when we are in a supply chain crunch? they managed to pull it off. matt: we had horrible numbers, a decade low last week. what does it look like to you? >> retail spending looks great. part of it is driven by rising balance sheets. the concern is the inflation. we are all seeing higher prices.
people are paying, so i think that is what we want to look at before the holidays. we see strong spending. matt: talking about all the retailers that we have seen from walmart to home depot. tumbling today. it is the first down day. it is worth more than general motors. matt winkler says the move to the public market aside, especially considering they have given it this value. thank you so much for your time today.
it does look like the markets have really embraced this technology. >> right. everybody can think tesla for where we are today. back a decade, it was a public company in 2010. the model s was the first vehicle that was sold to everyone. the sales of tesla increased 270 times. the rest of the industry was pretty much flat as a pancake. that is what got everybody's attention. maybe there is a convergence of people's provinces. it is the existential threat of our time. they want alternative energy. tesla did that and achieved
that. musk has pointed out that it achieved a profit in 2020 last year. it got to a point where it is breakeven in cash flow. matt: the last 100 years of automotive startups, combustion and electric, nobody has been able to achieve that and stay in business. one of the interesting comparisons in your piece was the fact that tesla had real revenue before the ipo. tesla also, even though everybody was ripping on elon musk, they spent a ton more than tesla ever did.
>> they spent a lot less money to get where tesla is today. having said that, tesla paved the way. that is a big transformation. jeff bezos is the man responsible. his company is responsible for ordering 100,000. the fact that amazon is so committed gives people a real sense of confidence that it is here to stay. that is a really big difference. tesla has a huge advantage, but they are likely to do pretty well. matt: i think they have a 20%
stake in vivian -- and it. i see that ford has a 12% stake. it is an incumbent automaker. does it give some kind of advantage? >> you could say the same about everyone in the ev space that does not have sales to speak of. this is going to be increasingly profitable. it looks miserable at the moment, but it will get bigger. next year, it will have its own electric version of the f-150. the most popular, best-selling truck. matt: the most popular vehicle.
i'm excited to see the lightning come out. i am excited to see the cyber truck, when that comes out. >> tesla is doing well enough with the model three and all these vehicles that are doing very well. matt: there is a lot to come thank you for joining us. talking to us about the giant market cap confirming the success of tesla. here is something that has caught my eye. exploring deals with the mclaren group as it looks for ways to promote its own electric car technology. it is said to be planning the
studies of financials to help decide on a transaction. they may not decide until next year and they may pursue alternative partnerships, but we do know that they may one to get their brand into formula one, which would make it a lot more exciting. let's get back to those results right now. that auction, dealing 79.6% versus 80.4% average. a little bit different than we have seen previously. the bid to cover ratio compared
happening among world leaders. one area of focus is taiwan. john's prime minister about what he would like to see as a response. >> first, i would try to move on trade. you do want to move forward on trade. secondly, to develop the relationship with china, because if that relationships hours, it is much more difficult. cultivate your other friends the region and your allies. the other thing biden is trying to do, friends and allies, his approach is quite clear. the last thing we can do is to ensure whichever party is of
like mind. >> it is not within his giving, but it is important. america's interests extend well beyond 2024. >> taiwan. how much should we worry about what will happen there? >> i think we should be concerned. it will not be war overnight, but there could be a mishap. the leaders, the countries all see. the u.s. will uphold this policy. also talking about the taiwan relations act. you jinping said, -- resident
jean jinping said we are not in a hurry. -- president xi jinping said we are not in a hurry. we ask everybody to maintain the status quo. if you look at what is happening , it is not a static situation. the u.s. has significantly increased its ability level and intensity of diplomatic engagements with taiwan. china has been testing air defenses. it does not .27 airspace.
on the part of, this administration has disavowed the consensus and said, that is not an acceptable form. taking other steps like printing on their passport, taiwan passport. all these moves raise suspicions and anxieties, and they make it more likely that misinformation can happen. matt: we are getting headlines now that till bonnie is filing for an ipo. it is looking for a listing on nasdaq. we will bring you any developing
matt: this is bloomberg markets. shares of tesla have been suffering since elon musk started unloading. he says he is wanting to unload. he is almost halfway there. joining us, a leading fintech innovator. he is also of, do not blame the shorts. so far, things have gone pretty well for the markets as of late, especially with these tech
stocks and ev startups. let me ask you first about the tesla story. what is your take? >> i think the only person who knows what elon musk is doing is elon musk. he is now the seller, the shorts are covering. i do not know who will send short shorts to one another. matt: we are looking at a chart of the institutional long, the big number in white, versus the shorts in yellow. the most shorted stock on the s&p 500. how has that changed?
>> it has not. the shorts dug in. they are covering a little bit. they are still there and quite sizable. matt: where else are you seeing big shorts now? we have a big homebuilder. i'm looking at the real estate market every day. what is the story there? >> it basically encapsulate the whole of it. homebuilders cannot make money with rising interest rates and rising input costs. the shorts are going to billions
of dollars, but the long is also increasing. you can see the tectonic plates rubbing up against each other. perhaps there is a volcanic eruption. this is how systemic risks happen. one of the stocks to watch is a bellwether for how it will go in the future. matt: it looks like some of them are moving up against an immovable force. the longs are so big that it does not look like they could make a dent. >> that is the interesting thing. we had a number one -- look at the data analytics and see that there is predictive value. we will get to that in a second. over time, what we have seen is
warns that tensions over taiwan risk escalating problems between the united states and china. both nations have stepped up activity around the island. the united states has significantly boosted engagement with taiwan and china has increasingly tested at the island democracies air defensive. president biden and his chinese counterpart discussed the merits of releasing oil from the strategic petroleum reserves to ensure stability in global energy markets. bloomberg learned monday's virtual summit between the men did not make any decision on the issue. but the fact the world's two largest oil consumers are even considering unprecedented joint action shows the level of concern the rally in oil prices. the global economy and further stoke inflation. iran has dramatically increased its stockpile of highly enriched nuclear fuel, according to a
report from the international atomic energy agency. the country continues to stonewall international monitors, setting the stage for a new round of failed diplomacy. negotiation teams will return to vienna never between ninth and search of a way to lift u.s. sanctions on iran in exchange for a cap on its atomic program. apple will begin making parts and tools available for customers to fix their own devices. that is a major shift in long-standing policies over who can make repairs to the costly gadgets. the self-service repair program will initially allow people to fix the display, battery and camera for your iphone 12 and iphone 13. later, customers will be able to repair mac computers with chips. the program starts early next year. 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 am mark crumpton, this is bloomberg. amanda: welcome to bloomberg markets. matt: welcome to our audiences at this hour. here are the top stories we are following from around the world. goldman sachs ceo warns on what lies ahead for the market is the economy recovers the from the pandemic, we cover his comments from the bluebird new economy form. the reopening as it continues, u.s. housing starts unexpectedly , it disrupts building activity and labor sure to just persist. plus, nissan also struggling with supply chain issues. some good news is reservations are now over open -- are now
open for the new electric crossover. if you are a fan of that sort of thing or a stockholder, that is good news. there is more coming up. amanda. amanda: the one bright spot on these markets is moving higher in what is otherwise a down day. really, the headline moves don't really reflect the negativity of the internal. s&p 500, every subgroup down except for consumer discretionary and health care. on consumer discretionary, amazon's 1% move higher may be boosting the group. that comes as we are hearing from other retailers, notably walmart and target, that they are absorbing some of the higher costs in turning their margins. on the other side of the ledger, we will talk about visa trading sharply lower as amazon takes on its retailer fees. that is one place to watch. the 10 year, 1.6 percent, we've been watching the yield curve to see whether we get any sort of steepening after. -- after of period of relative
flatness. the big conversation has been around inflation and where the markets go for here. for what it is worth, the bluebird new economy form which is underway in singapore has got world and financial leaders in attendance. as ever, and includes high-powered conversation including one with francine and goldman sachs ceo who happen to have a warning for investors. >> when i step back and think about my 40 year career, there have been periods of time where greed has far outpaced fear. we were in one of those periods of time. generally speaking, my experiences this periods are not long lift. something will rebalance it and bring a little bit more perspective. certainly, given it feels like inflation is running above trend, changes or interest rates will move up. if they move up, it that in and of itself will take some of the exuberance out. amanda: in some ways, it is sort
of obvious what he is saying. but it is always relevant for my 25 years of watching the stuff, i don't a how young he was when he got into the business, when the folks who are really benefiting from these markets start to stay look, it is getting frothy -- they are the last ones who are going to yell frier and a credit beater. with the world -- when did david solomons of the world say to get out of assuming pool, we should pay attention. matt: it is an important comment. the entire interview francine did with solomon was really interesting for investors in these markets, measures for people watching the banks performance, but a fascinating market conversation. when the ceo of goldman sachs says it is time to go, it might be time to go. it is not like he is going to make money, it is not like he is shorting the market and looking for to go down. he is giving you some legit
advice, if ever he has. amanda: totally agree with that. matt: good, we are in agreement. that is rare. 10 for the stock of the hour, the power of amazon is being felt today in the credit card industry as processors fall following amazon's threat to stop accepting u.k. issued visa credit cards. predictive debt is a look. -- prita gupta is taking a look. >> the ideas those seeds are getting higher and higher. you go to amazon or any other retailer and use a credit card, the company charges you a pretty big fee. especially over in the u.k. since they have left the eu, those fees have gone even higher for that country, especially because we do not have the eu cap's.
here in the states, they have risen over $100 billion per year. that is what amazon's turn to put a stop to by saying they are not going to be accepting visa credit cards, and you can see it is taking a big hit to mastercard, discover and visa itself. all of those companies, even though it is only really visa they are talking to specifically. this talk about the fees that have stephen visa in particular. they're actually the lowest when it comes to some of their peers. not only does the card company have to charge you the first time you make a personage -- purchase, but if you return something, they charge you three times. first on the sale, then the return, then reissuing the new exchange. so those fees, especially for a company like amazon that does give you free returns, those costs have gotten really high. amanda: we have seen critical usage declined during the pandemic. and a bank analysts are looking
in the coming quarters to see that component grow again. kriti: in the last year, customers have really dipped into their savings or used fiscal stimulus checks. this idea there is a bit of uncertainty in the market and the economy, libido job uncertainty, do you really want to wreck up critic our debt -- a little bit of job uncertainty, do you really want to rock up -- wrack up credit card debt? matt: thank you so much for joining us. kriti gupta talking to us about the stock of the hour. it really is a visa story, at least a retail story. u.s. home construction slowing down, but condo sales are booming and most of manhattan. we get insight from a ceo, this is bloomberg. ♪
matt: this is bloomberg markets, i am matt miller with amanda lang. a new round of data came out this morning on u.s. housing. the numbers showed a new home construction unexpectedly slowing down, at the worst possible time. driven by a drop in single-family projects, new home construction fell 0.7% for the third drop in four months. exactly when they should be building more. the problem is, they cannot get the stuff they need to put the houses together with the people they need to put the stuff together. it is really confounding me. amanda: this is one, there may be a growing debate. you will see with economists of how much we are seeing is a supply-side driven inflationary period, how much is the demand side.
this 100% is the fly side. the demand is at record levels. the backlog of applications at a very high level. builders know if they can hang on, they will get the homes built eventually. meantime, this situation has real inflationary pricing happening in housing on the side of the border and that. and it probably hit see where it hurts, because you're in the market. i feel for anybody in the market. matt: i saw somebody buy a house in september and put it back on the market sunday for 20% more than she or he paid for it. by the time i saw the open house and got back to my apartment in new york, they had for offers and it was gone. you are seeing that -- my story is not unique. the new york times had a great piece on it. but everyone has been talking about it for weeks. for a while, we saw deals in the city. i thought, that is a silver lining. for my own personal move, i will
go back to new york. but those prices have skyrocketed, as well. i want to get some more on that. it's bring in bess freedman, ceo of brown harris season's -- brown harris stevens with annual sales of $9 billion. i know the condo demand is soaring, but co-op demand is strong, too. even though it is such a difficult process. bess: it is. nice to see you, by the way. sorry you are having such a hard time trying to find a home. if you need an agent, let us know. the demand is really strong in new york city, which is great. as you know, during the pandemic, we were very slow down and now we are seeing people return to new york city and we love that. you are seeing companies like microsoft and disney into google expanding their space, which is also good for new york city.
but yes, the market is back. as you guys talked about before, you are seeing some slowdown in other places. but that is because of supply. things are picking up in price, so that is tightening a bit. david solomon said exuberance out of the market when interest rates go up, or in supply get skinnier. then the prices take up. but also takes exuberance out of the market. we are seeing some of that in other regions. amanda: one of the reasons we fear inflation and -- is it changes our spending habits. in the case of housing, we are seeing preapproval for mortgage is soaring. we are seeing some purchases pulled forward as people at the margin think, i better get in now because it is only going to get worse. your mortgage is only going to get more expensive in the months, maybe years ahead. how distorting is that right now, that people are rushing into this market were otherwise
they might have waited even a year or two? bess: i do think there are some people jumping in right now. what is inflation? too much money chasing too few goods. people are starting to feel like rates are going to take up. -- take up. -- tick up. i had some friends, during the pandemic they decided to buy. when i asked them, why are you guys buying, they said we wanted to make something our own. we wanted to build a little home office, wanted to do a lot of improvements. we felt like we were in temporary space. so they ended up purchasing during the pandemic, they did very well. already they feel like they could sell their apartment for more. so i think a lot of people started to feel that pressure you to they are feeling that now. they want to invest in something that not only as a long-term investment, but is a place where they live that is sacred and means a lot to them. many times, they are raising
families or newlyweds or whatever it is. your home is an emotional commodity, and it matters in a big way to people. matt: would you think about new inventory or lack thereof? i am looking at this gigantic residential tower over here just south in midtown. and thinking man, we should build a few more of those. but there is not a lot of space here to do that. bess: there is not a lot of space, and it is expensive to buy land. the whole undertaking is a challenge. we have a new mayor coming in january 1, who is very pro-business and pro-people. he is a unifier, i believe, and he will stand above all of this divisive sort of politics and lead us to a good place in new york. but people, we want to create more homes. we need to take care of her homeless. we've a lot of issues in new york. we've a lot of good supply, which is why people are buying now which is excellent. other places are challenged. but i don't see a lot of
building more in this cycle. i think right now, people are trying to steady what is going on. amanda: just a few seconds here, is there a correlating increase in rent? affordability comes to mind. new york is one place you can rent a bit place to live, but are they also making it less and less affordable? bess: it is becoming less affordable. rents are at a historic high. just as i mentioned, microsoft, google and disney are taking space and more people are coming, people have to come back to the office, things are opening up. i think they are going to keep going up. it is becoming very expensive to be here, yes. you could get a bargain during the pandemic, that is gone. that has all disappeared. amanda: great to have you with us, good to check in. bess freedman, ceo of brown harris stevens. coming up, taking orders. nissan opens up reservations in the u.s. for the 2023 ev. we will talk about that move and
>> we need think about inventory. right now, every cfo is looking at their supplies. you need more inventory. >> the underlying trend pre-pandemic and to accelerate his principal powers in the system, the european union, the u.s., china really want to nationalize supply chains, industrial policy. >> all the indications we have physical flow right through beyond the middle of next year. we are a nation away down in the pacific, we will rely on supply chains for everything we sell. there is no easy option for us. >> for so long, the mantra has
been just-in-time. now, we realize the vulnerability of just-in-time. we need to move to just in case. amanda: this is bloomberg markets, i amanda lange with matt miller. you're just listening to some of the leaders at the fourth annual bloomberg new economy forum, talking about the supply constraints that have hit economies right around the world. automakers front and center in that. they have seen their fair share of supply pressures. after all of those pressures and delays, nissan is announcing its u.s. customers are one step closer to getting their hands on a new 2023 ariya electric crossover. live with us now is senior vp mike colleran. mike: great to be here, think you for having me. amanda: any to start there,
obviously supply chain pressures are real. you are no stranger to those. how does it affect your plans for this new vehicle? i optimistic you can work through anything you may find? i think just lost mike there -- we lost your shot for a second. on that supply chain, how does that affect the rollout plans? mike: for the ariya, it does not affect the plans. the supply chain issues faced the entire industry, we are facing them on a day-to-day basis in an showing the supply chain for the future so we can deliver a great car to our consumers. but we prioritize the launch. the ariya is on-time, on target. we started a reservation program last night where consumers can
reserve their all new ariya. matt: nissan was a leader in electric vehicles with the lead out before pretty much anybody else was offering the consumer segment of fully electric car. how much of your revenue do you expect all electric vehicles will be making in say 5, 10 years? mike: there is no question ev's are growing in the u.s. and across the globe. as you move forward into the 2030, to represent a larger and larger percent of the revenue. we talked to you about roughly 40% of our business in the 20 30's will be ev. so we are going to see a lot more ev's on the road and we are all in. that starts with the all-new ariya here today. 500,000 on the road, and all new ariya is the next chapter. matt: mso going to be able to
get the gtr in five to 10 years -- mi still going to be able to get the gtr in five to 10 years -- am i still going to be able to get the gtr in five to 10 years? mike: if you want one, we will set you up. amanda: he wants one. what about incentives? we seen in the ev space, do you see those declining, returning? matt: looks like we've got a frozen shot there. but i can see behind him in that frozen shot, highlighter green 370 z. i know they are sold out of those already, which is really interesting. amanda: how do you know that? matt: because i look. amanda: i'm getting the impression you liked things with engines and then. matt: i do like internal combustion engines. that does not mean i am against
electric, i'm also looking forward to seeing some electric vehicles in my garage in the future. but nissan makes some very exciting engines. did you know there are only for people who are allowed to build the six-cylinder engine that goes in the gtr? only four people in the world, they are all in japan. amanda: really? i also wonder what is not in your head, because that piece of knowledge is, but i think it is fascinating you know that. it's the kind of thing you bring, i appreciate it. matt: thank you so much for appreciating that. that was mike colleran of nissan. this is bloomberg. ♪
deliberations in the trial of kyle rittenhouse. he is the teenager who killed two men during a chaotic black lives matter rally last year. rittenhouse could face life in prison if he is convicted of the most serious charge against him. intentional homicide. the taliban's top diplomat has a warning for congress. he says the united states keeps blocking the release of about $9 billion of after kenaston assets , there could be a mass exodus of refugees from the country. the u.s. has blocked release of the money because of concerns about the taliban linked with terrorism and human rights abuses. new restrictions aimed at the unvaccinated in europe. germany wants to limit workplace access to people who are inoculated, recovered or provide a negative test. those who have refused shots are increasingly banned from cafes and hairdressers. ireland this week extended vaccine search beyond restaurants and