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tv   Bloomberg Markets European Close  Bloomberg  November 29, 2021 11:00am-12:00pm EST

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towards the end of the day. we are near session lows. we will see exactly how the next 30 minutes goes in terms of the recovery. our countdown to the close starts now. >> the countdown is on in europe. this is "bloomberg markets: european close," with guy johnson and alix steel. ♪ guy: let me walk you through the price action we are seeing right now. we have faded an earlier move. we are near session lows. we are just bouncing off of it. the stoxx 600 trading at 467. had a touch of 466 a few moments ago. we have definitely come down. brent crude bouncing back as well. after friday's massive selloff,
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we are only recouping some of that ground. huge week for crude. opec on deck. plenty of coverage coming up from that. euro-dollar, $1.1269. friday we touched $1.11. we bounced off that. the dollar is likely to be the more dominant theme. $1.1269, down by 0.4%. alix: a very similar story in the u.s.. losing a lot of that upside we had earlier. tech outperforming. the nasdaq still up by over 1%. when you have growth really outperforming, that feels more of a safety, big cap growth trajectory here. the s&p now up only by 0.8%. what is also helping lead some of the gains is twitter, up by 4%, but off the house of the session. a new ceo in place. the current chief technology officer is going to be talking be home from jack dorsey. he's also going to be joining the board. i did want to pay attention to the vix. you already mentioned oil.
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it is lower, but still around 25. friday, the vicks curve inverted. we saw the volatility in the treasury market, then the fx market, now finally to the fx market. you have to wonder how much hedging is going to take place into the end of the year. there is just so much more uncertainty. guy: there does seem to be an x petition that we may see volatility remaining high which obviously has an impact on tolerance. let's talk about the driver of all of this, what is happening with the latest variant, omicron. the u.k. within the last human it's identifying two more cases of the variant. are we getting community spread yet? i think that is whatever one is focused on. the british health secretary spoke before the house of commons on what needs to be done to control the latest variant. >> we are learning more about this new variant all the time, but the latest indication is that it spreads very rapidly. it may impact the effectiveness
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of one of our major treatments for covid-19, and as the chief medical officer said this weekend, there is a reasonable chance that our current vaccines may be impacted. guy: there's a lot of if's and but's in there. david heymann joining us now, formerly of the world health organization. the health secretary sounds like he is sort of speaking based on concrete knowledge. my impression is that we know very little at this point. what is your understanding of our level of experience, our level of understanding of what this new variant is going to mean? david: the experience we have today comes from south africa, where they have been very free and sharing information about this virus. they feel that it might transmit a little bit easier than the current strains, and they also
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feel that it might not be causing any more serious illness, but all of these are big mights based on initial observations and south africa. -- observations and south africa. alix: does it push back the population immunity conversation? if so, what does that mean for the trajectory of the virus? david: population immunity at present seems to be causing a less serious outcome will of infection. people become reinfected of her having had an illness or after having been vaccinated. they appear to have less serious bonus, less serious outcomes of that illness as well. there is a decrease in the burden i hospitals and icus. hopefully that will continue with the omicron variant, but it is early days yet. the focus has to be on hospitals and what is happening at the hospitals. guy: professor come until thursday, we were very much focused on delta.
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delta is highly transmittable as well, and is in large areas of the population. do you think the arrival of omicron may actually have a positive effect in as much as what it will do is reduce travel, reduce people's willingness to socialize, reduce people's willingness to put themselves in a situation where they may be either giving or contracting whatever variant it is that we are dealing with? david: everybody does their own risk assessment and decides what they will do based on their understanding, but what is clear is the coronavirus is becoming endemic, and those countries with a higher population immunity are having a more easy time in letting the virus establish itself. here in the u.k., there has been much infection in communities. there's been a high vaccination rate. as a result, vaccination immunity is quite high and
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people who become infected who are reinfected. alix: it feels like the crux of that is getting more shots in people's arms. do you have an understanding as to why it is so difficult for emerging markets to get vaccinated? is it a supply thing? is it infrastructure? is it resiliency to the vaccine? david: for countries to get vaccinated, there must be a will to get vaccines and try in every way they can to get it. many times there are capacities at the global level to produce vaccines, and there's also the covax facility to broker between countries in order to get the best possible price for countries and to provide vaccine to lower and middle income countries so that they can at least vaccinate their essential staff. this has been floundering. it has not worked as well is it could prevent many reasons, involving the fact that industrialized countries paid upfront to pull the vaccine out
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of the manufacture is to make sure they have a priority to have this vaccine. guy: but nevertheless, what we are learning is that we should be worried about variance, that this has always been the fear, that we find a variant that could evade our vaccines. what appears to be happening in south africa in particular because of the huge numbers of hiv patients that are there is that the immunocompromised are becoming a source of variants. how do we resolve that issue? because we cannot vaccinate them in the same way, yet they harbor the vaccine for longer and provided with an opportunity to change in really significant ways and potentially dangerous ways. david: that is correct. those with hiv infection are not able to fight off the virus as well as they could had they an intact immune system, and therefore, as the virus continues to reproduce in people with hiv infection, the
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mutations accumulate in these people who continue to have the virus for long periods of time, and then it spins often to the population. the population of hiv-infected persons appears to be effective in preventing infection, so vaccination is the key to decreasing the rapidity with which this virus transmits from person to person and also causes serious illness. alix: speaking to those in the community, what is your assessment unto how a sex for -- how successful these will be for emerging markets? do you think we will get it done? do you think this is the conversation we are going to have over the next two years? david: i can't look into the crystal ball and say, but i can say what is very encouraging is there are lots of people working together to try to make sure there is a more equitable distribution of vaccines. this, i believe, will pay off and within the next six month or
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so. remember, this is a vaccine which is administered to people of all ages, and that is a new task for many countries, especially low and middle income countries which have routine programs for young children, but don't yet have the systems to give vaccinations to adults. so all of this will play a role in how rapidly vaccines can get out to people. government demand to deliver the vaccines and the global equity that will provide his vaccines to countries. alix: professor, thanks a lot. we really appreciate your insight. thank you very much. stay with bloomberg. we will be delving deeper into this with stefan bonsall -- with stephane bancel, moderna ceo, later on. guy: coming up, the bundesbank
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warned about it. german inflation surges 6%, far exceeding the ecb's 2% goal. similar story in spain as well. what is the latest uptick in the virus do in terms of our thoughts around inflation and the ecb? we will talk about that next with simon french, pen your -- pen your garden -- simon french, panmure gordon chief economist. this is bloomberg. ♪
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guy: a few days ago it was all we were talking about, inflation. now that seems to have been surpassed by the news on covid. the two definitely connected. let me run you through the data
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we have out of europe today. for many, they will make alarming reading. germany's latest inflation process coming through at a staggering 6%. that is up from a 4.6% the previous month. spain also grappling with above target inflation, lee above target inflation, high .6% -- 5.6%. the ecb is very much making that point time and time again. germany, for instance, has had a shift in its value-added sales tax. that is likely to work its way through the system. europe is having a much higher proponent of energy in the mix as well. the expectation is that that is likely to fade. but nevertheless, these are superhigh numbers. you do wonder if we are going to see another wave passing through europe of covid, whether or not that will further exacerbate the inflationary impulse we are seeing at the moment, as people switch back from paying money for services to paying money for
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goods, exacerbating the demand story we are seeing on the goods side of the equation. an interesting question area we need to figure it out. about the moment, the ecb has got to deal with superhigh inflation here in europe. alix: they are standing pat. take a look at the bank of france. the governor saying we are taking a look at omciron, but it shouldn't change our outlook too much. i wonder how long that narrative can stick. joining us for more is simon french, panmure gordon chief economist. what is your call? how long can the ecb stick by this with inflation running so hot, and get another variant coming down? simon: it is certainly going to stick with its narrative over the period of time that we need to understand the economic impact of the latest variant because, and i think it was very good with professor heymann on, we simply don't know how consumers and businesses are
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going to have to react, so it is about policy and the reaction of individuals. but in terms of communications, i don't think we should lose sight of the fact that transitory, whether it is a word that you are comfortable with thousand investor or uncomfortable with, it has been very useful in terms of keeping financial conditions very loose across the zone, and while we continue the economic uncertainty of the epidemiological uncertainty, i think it will be a language that the ecb sticks to. guy: we do understand the impact that delta is having, and it is having a significant impact across much of europe. we are seeing lockdowns across austria and elsewhere. do you think this latest wave and the new variant are going to exacerbate some of these inflation rate trends, because they are going to have an impact on the way we spend money and the supply chains that are there to serve us goods and the way they work through the system? simon: absolutely.
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in terms of that come position, what we see is european consumers spend six euros out of every 10 on services, four on goods. they have gone 50-50, and that has been a shift that is likely to persist. taking it back to policy and the ecb, if anything, this makes the narrative a little bit easier because they can point to a structural shift in the composition of the basket that is driving inflation and say we do not expect rent inflation at 1.4%, service is inflation at 2.8 percent. they would say the core component we really care for in terms of its persistence is still showing no signs of decoupling to the upside. alix: the prevailing narrative is that eventually you are going to have demand shifting into services, and that is going to be less inflationary, and everything is going to wind up being ok. with this variant and with delta as well, europe was also under another wave, and we are already
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looking at lockdowns from austria, for example, the netherlands, with restrictions. does that delay the shift into services narrative? what is the feedthrough? simon: it does, and you saw the equity market response on friday was actually a carbon copy of the playbook from q1 2020, telling us that investors are -- loose fiscal policy, delaying that and wanted to have exposure on the equity side to corporate earnings on the growth side rather than the value side, and what we saw very much was the top-performing equities across europe on friday, and with a little bit of the reserve feel in the trading session today, but overall, exactly taking the compositional shift that we saw in consumption and corporate earnings and assuming it is going to play out for long for -- for longer, and therefore playing out that exposure. guy: i want to come back to the
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central banks and focus on the ecb. do you think they are going to upgrade their longer-term inflation expectations? simon: yes. we are probably talking, if you are looking at the end of the forecast to, probably 20 or 30 basis points. but that will still lead to the end of the forecasting horizon below 80% target, and therefore, the more relevant shift won't be an upgrade based on longer persistence, but a move to's electrical inflation target. deaf a move to symmetrical inflation target -- but a move to the symmetrical inflation target. i'm not sure we would see the hype of land which would will see a curve steepen her in europe. alix: on the flipside, if we dig look at the fed, we saw some aggressive pricing of rate hikes. that got rung out pretty fast on
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friday. i am wondering how long we can look at a potential divergence between the fed and the ecb. if we can sustain a divergence, how why does it have to be? simon: i think the fed pricing curve is wrong. i've been very vocal on that. i think the u.k. pricing curve is wrong in terms of assuming -- in the u.s., we were assuming ahead of the omicron variant two, maybe three rate hikes for 2020 do. i never saw it like that. i thought they may squeeze when out in december in terms of a rate increase. i don't think that dynamic has changed for me, but i think the curve is still mispriced. therefore, you talk about divergence between the two, i think the european curve has got a little bit of flattening to do. i think the u.s. curve has got quite a bit more flattening to do based on uncertainty, but also the fed has been very consistent and persistent in their line which for 18 months. the market perhaps has lost
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patience with that narrative, but i'm not sure it is anything that has fundamentally shifted in the fed policy response. guy: will get a big payroll number friday? simon: yep. guy: how will that change thinking? we seem to have shifted from the labor market being the primary focus to inflation being the primary focus. if we get a solid number out of the payrolls this friday, does that mean the fed can say, you know what? yes, there is a fiscal market we so went to reach, but we are largely there? simon: if you're talking about the jobs, i don't think it is a particularly relevant number for the federal reserve policy. but not just aggregate participation. . the older population who is crucial if the participation rates, the cbo, the federal reserve estimates are that it is going to structurally decline. for the last three years of the
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trump and adminstration, participation went in the opposite direction. pre-covid, it was increasing. let's be honest, i comic forecasts, the official ones and private forecasts, don't know where participation is heading. we will need those to make any assessment of the long-term pressures on wages that may materialize post-pandemic. alix: here in the u.s., we got some news that there will be a mandate in new york city by december 20 that all childcare workers have to be vaccinated. that to me could have disastrous repercussions for child care, which could trickle down to return to office and the actual labor force, particularly when it comes to women. is the balance of risks to the up or down side for the jobs market in the u.s.? simon: i think what you're talking about in terms of structural impediments to the labor supply makes it a upside risk in terms of wage growth. my question is whether monetary policy is a particularly good tool to try to lean in against
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that. this is a thing i think central banks defended. i think their line which has been very powerful, very effective at keeping conditions loose. but if you are trying to do with structural rigidities such as the one you just described has been introduced into the labor market that affects the long-term growth performance of the u.s. economy, monetary policy is a really poor tool. we have to be thinking about fiscal regulatory policy, interventions policy to try to loosen up the u.s. labor market in the face of what might be pandemic related restrictions which will affect u.s. labor supply for a number of years to come. guy: we are going to leave it there. great stuff. thanks very much for stopping by. simon french, panmure gordon chief economist, thank you. this is bloomberg. ♪
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alix: -- ritika: it is time for the bloomberg business flash. a bus -- airbus needs december deliveries if it is going to make its goal for the year. they reached 500 aircraft as a year and push is a normal part of operations, but this year -- aircraft at the end of -- aircraft on friday. an end of the year push is a normal part of operations. consumer credit rose $942 billion in october. borrowing on credit cost made up or almost all of that increase. bp is taking another interest in the transition towards cleaner source of it -- sources of energy. it is planning on building a clean hydrogen facility that could start producing the gas by 2025. energy companies are pouring money into the hydrogen business.
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they expect it could release hydrocarbons in a number of industrial sectors such as power generation and trucking. that is your latest business flash. guy: thanks very much, indeed. european equities heading into the close kind of midrange. we have been going sideways erie at how little bit of a selloff 10 or 15 minutes ago. we bounced off that. on a two day basis, the stoxx 600 is now down by 2.8%. equities off their lows. it is a pretty unconvincing, timid bounce back we are seeing today. we just don't know enough to get more excited. what are we going to be talking about next? oil, isn't it? i think we are going to be doing oil. very exciting. jp morgan's christyan malek joining us, big price target. this is bloomberg. ♪
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guy: wrapping up the monday session in europe.
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30 seconds until the end of regular training. we are up but we are still down. we are bouncing back. the ftse 100 up over 1%, the dax down circa 5% over last five days, only up .1%. europe is green. however, let me show you the next while. this encapsulates the -- the next wall. this encapsulates the problem. friday the news was so brutal we have not fully recovered. there is the gap lower on friday morning. you gap lower and then you go sideways. in the context of things, it is just a blip. we are basically still down 2.51% over last three days. that is where we are and it will
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be delivered on fairly decent volume. in terms of the composition today, we have seen a brutal selloff in oil. if you thought the selloff and equities looks bad, look at the selloff in oil. energy stocks coming back. basic resources are coming back. the travel stocks are coming back. does this have longevity? we will have to wait and see. sweden has just reported the case, the states report a case in the last two minutes -- spain reported a case in the last two minutes. when do we start getting community spread? the -- the defensive's that were on the front foot helping out the market thursday and friday at the bottom end of the market. that is the compositional mix. individual stocks, the bp group kind of an outlier. the stocks have certainly been
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marked up. domestic versus international, domestic versus international. cineworld up 2.7% today. it was hit hard on friday. are we going to see a less dramatic knee-jerk reaction then we get for international travel? you may have to wear a mask you do not have to take a pcr test. cineworld of 2.7%. iag usually exposed. all of these have early -- all of these heavily exposed international travel, barely holding its ground even after the huge drop on friday. alix: we are seeing the same thing in u.s. equities. oil managing to rebound. one of its biggest daily drops since traders are investing how bad this new variant could be for the market.
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jp morgan says brent could hit $125 in 2023 and $150 a year after. one of the men behind the call is christyan malek, one of the analysts at jp morgan. the perp does not agree with you in any way. what is your thesis -- the curve does not agree with you in any way. what is your thesis. christyan: a couple of things. they talk about 5 million barrels of capacity. the bond markets have looked at reservoirs, comes out with much lower than that, around 2.8%. -- around 2.8. we know we have the 400,000 barrel a day target. the reality is they can probably just about deliver 350,000. when we look at the price needed to see oil investment up, exactly to your point, the curve is not conspiring whatsoever.
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to get oil investment up again -- that is because of transition . the green and black premiums embedded into the oil price. that is why we are more bullish. guy: to that point, what you're talking about is shale coming back on. what if you got baked in in terms of shale capacity going forward? for the moment all of the ceos are discipline, discipline. where do we need to get to in terms of the price of that discipline to still work and be able to pump more oil? christyan: it is a great point. days with this kind of volatility will not help shale oil because they need to deliver cash returns over and above investment. when you look at economics, we have to factor in a cash return on oil and another five transition cost. $20 on top of economics, which
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gets you close to $70. we are seeing shale probe, but it is not going to respond in this -- we are seeing shale grow , but it is not going to respond in the same way. we are seeing years of muted deflation environment. you bacon all of the other mouse you need to feed, share will be up to growth materially unless oil was close to eight dollars. alix: you mentioned what opec might do. they are unable to pump the 400,000 barrels of oil a day as of now. i wonder how aggressive they want to push back against president biden, who is asking them to pump more. will they come back and say we are coming off the market altogether? christyan: if they think what we think, which is oil going to $150, save your barrels. take a breather, three or four months delay in production. they will probably cut into their inventories.
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then the spr release, come back and producer oil at $100 plus. economically, geologically, it makes far more sense to kick the can down the road on production. in terms of the politics behind it, there is a message that spr 's are useful and opec is not getting interested in responded until inventories are well managed, almost the opposite of what we are seeing today. guy: i ran talks start again today. what you have bacon for iranian crude? christyan: we do not think iran will come back until the second half of next year. we see roughly around 400,000 barrels increments. we are taking the under. we do not think iran will come back in the near term. it is almost the reaction function. if iran were to come back what would that do to opec's -- it
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could end up being zero-sum. iran comes back and we see a further delay in opec barrels or less of an increase to solve that miss balance of inventories. guy: let's take -- alix: let's take a look at the company level. if we get $150 in 2023, how do you play that? and chum respects it should been go -- in some respects it should be go buy exxon and chevron. what is your call? christyan: good look at who is most exposed to super cycle. for every dollar move, who is generating the most cash and who can translate that into cash returns? when you think about the long early's, investors are not saying we will get $150. they want to see companies that can transition. we are thinking got a barbell. -- we are thinking about a barbell.
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you can be exposed towards gas but also greening in the meantime in order to present something more than an oil play. with that in mind we can find stocks like bp have the right mix, they can provide that cash return as well as the rates of change on transition is very competitive, although i think investors are not necessarily factoring that in. guy: one more quick question from me. what is the growth hit of $150 oil and your point about the transition, doesn't that gets fed up as a result of such a move? christyan: you are absolutely right. first of all we think oil is chief. it is underperforming massively against the other commodities. we think the market takes $130 oil before it impacts the market. the pain threshold is well above where we are in terms of real economic impact.
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some people told us we are too low with $150 oil. what is the pain threshold needed to make the economics work in terms of investing in renewables in a big way? it is probably above $150. 80% of the world still needs oil and gas. it will not do so much to meeting future demand. alix: what i feel like we have learned is oil is volatile and can stay volatile for the near future. what kind of volatility are looking for, whether it is the headline from covid, whether it is opec or president biden? christyan: volatility is here to stay. one of the things we looked at at hundred dollar oil, why did we get to that level? when you take spare capacity and divided by total crude, only when we have seen less than 10% have we seen this kind of volatility. we look back at history, when
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spare capacity is 5% total volumes, you see oil prices moving within 10% to 15%. in other words, that kind of lack of available volume has seen massive premiums to the prevailing oil crisis. that is how it gets hundred 50, summa 20% to 30% premium to what it costs to generate the oil. guy: christyan malek, jp morgan head of emea energy equity research. coming up, moderna stock has been soaring. the company says its vaccine against omicron variant could be ready as soon as early 2022. moderna's ceo is joining us next. this is bloomberg. ♪
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ritika: you're looking at a live shot of the principal room. coming up, senator sherrod brown at 12:00 new york, 5:00 in london. this is bloomberg. let's check in the bloomberg first word news. in sweden the parliament has once again voted to make magdalena andersson the prime minister after narrowly winning the vote she became sweden's first female prime minister. she resigned the same day when her junior partner in government quit following a defeat in budget. france has agreed to take new steps to crack down on people smuggling in the ingles channel. last week migrants died trying to cross the channel. the first minister of scotland has promised she will lay the
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groundwork to hold it independence referendum by the end of 2023. she did not say how she would force the u.k. to agree to it. the scottish national party valve to hold another vote on economy after the u.k. left the eu. 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. guy? guy: stocks continue to rebound from friday's selloff. some of the sensitive sectors certainly moving more than others. high beta. let's figure out what is happening. abigail doolittle, over to you will stop abigail: we are seeing a bounce back after the selloff we saw on friday. once sector staying where it has been, the airlines. over last 15 trading sessions they airlines almost in a bear market. a very big slide in a short
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time. friday a huge slide, down 8%, the worst slide on a daily basis going back more than a year as traders were fearful that airline travel will slow to a halt. you can see this slide. that reflects jet fuel concerns as well. overall negativity. where we also have negativity but where we had bullish activity on friday, the stay-at-home stops. friday was all about travel down. today we had stay-at-home down sharply. zoom, netflix. that is not a new story because folks have been hoping this pandemic, traders thinking the pandemic is closer to an end where we are learning to live with it. the extension to what we see for some of the shares. we have a continued rally on the day. pfizer not so much anymore.
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overall the vaccine makers are higher on the idea that some of these companies will be able to develop vaccines for the new variant that will adapt. one of them is moderna. but stick a look at a two day chart. this is the degree of the buying power in shares of moderna. the company has expressed the likelihood they will be able to create a vaccine for the variant. up 32.4%, that is the best two days since november of 2020. that is the degree of enthusiasm these stops investors and traders have had. it has had a little bit of a rough patch, but coming off of that up 32% in two days. alix: really appreciate that. bloomberg's abigail doolittle. spain is confirming the first omicron variant case detected in madrid. it is being detected all across europe. we have not had an official case
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in the u.s. but as dr. fauci said, you can be sure. this is bloomberg. ♪
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alix: we are waiting for president biden to speak on the covid variant. we are joined in the meantime by david westin. what can we expect president biden to lay out when he speaks later on today? david: that is the question. he has a lot of pressure. countries around the world on friday started to close their borders. we now have a direction from the united states with respect to southern africa. will he talk about things like wearing masks? he will tell us we need to get vaccinated. it is all of the more important. on the one hand he needs to act decisively. at the same time he does not want to shut down the economy. guy: if you think you will be hoping that what is happening on the ground may make his life easier? david: i am sure he will be hoping that.
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i doubt whether it will. he has relatively few legislative days in december when he has to get the government refunded, the debt ceiling raised, there is built back better. i would not be surprised to see the -- to see the president say something about that, saying this underscores the need to support working families across the country, that is why we need to build back better. alix: under times of strain, this is when you can get something done in congress. i wonder where chuck schumer is in all of this? how is he pacing out in the senate when build back better will go through, when we are looking at the debt ceiling, when we are looking at the budget? stephane: the fund -- david: the funding for government has a deadline this friday. that is not an option. the story as they will have a continued resolution will take them into january. the debt ceiling is a much more contentious issue politically, although the deadline is not quite so clear. the build back better, chuck
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schumer has set we want to get this done by christmas. there's a lot of pressure to do that. joe manchin is saying i am in no big rush. we think we can go into next year. guy: going into next year starts to bring in the midterms. you talk about how many days the president has left in december. how many days does he have left before the shadow of the midterm brings everything to a halt? david: the conventional wisdom in the united states is that january 1, you are in the midterms, it becomes politics. not that it is not now, but that becomes politics. i'm not saying they cannot get it done, but there is a lot of hydraulic pressure to try to get it done before the holiday break. david: and just about half an hour -- alix: in just about half an hour it will be interviewing the ceo of pfizer. what you think will be asking? david: what we know about the omicron variant and in so far as
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we do not know things when will we know it? that leads into how the pfizer biontech vaccine will work against this. what we know and what we need to know what is the threshold at which they say we need a new vaccine, then the question is how fast can we get it is to be did widely. guy: they built the template -- how fast can we get it to be distributed widely. guy: they build a template for delta but we did not need to use it because the current formulation works. i am interested in finding out what is happening with the therapeutics. this is a key area and i am wondering where he sees the priority. clearly the vaccine formulation is a massive issue. making sure there's therapeutics work, i'm interested in your take. he has just taken up the number of doses from 50 million to 80 million. one question i have is what we know about how the therapeutics will work against this new
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variant? i am focused on the delta and also the beta variant. they already develop vaccines for. what if they can take the antibodies from the delta and the beta and see if it works better against omicron? there are various possibilities open right now. guy: interesting to see how quickly they can get this done. fake opportunities. these companies absently front and center. a great show. your fantastic guests lined up, both in terms of d.c. but also what is happening with the therapeutics. "balance of power" coming up with david westin very shortly. the president will be speaking a little bit later but he will also be meeting with ceos, delivering remarks on supply chains and lowering everyday costs for american families. that is later.
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chinese manufacturing and nonmanufacturing and composite pmi's overnight. we look forward to those tomorrow. alix: mario jay powell and janet yellen testifying before the senate -- tomorrow jay powell and janet yellen testifying before the senate banking committee. we have germany coming in at 6% higher than estimated. central bankers in europe are talking about the transitory effectiveness. coming up on "balance of power," jason furman will be joining david westin, and the pfizer ceo as well. do not miss that as well. guy: will go over to bloomberg radio and carry on the conversation around omicron and its impact. this is bloomberg. ♪
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>> from the world of politics to the world of business, this is "balance of power" with david
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westin. david: from bloomberg's world headquarters in new york to our tv and radio audiences worldwide, welcome to "balance of power." news of the human variant sent market -- of the omicron variant sent markets starting on friday. as we wait president biden to address the issue, we turn to our washington correspondent, joe mathieu. you can see the podium. we are waiting for the president. i may have to interrupt you. what we expect to hear from president biden? joe: we have to start by knowledge and how little we know. we expected to be a couple of weeks before data can confirm things like transmissibility and some of the things we've been hearing about. the backdrop for the set of remark


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