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tv   Bloomberg Markets Americas  Bloomberg  December 2, 2021 10:00am-11:00am EST

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alix: 30 minutes into the u.s. trading day, thursday, december 2. you've got some apple angst. the company warning that suppliers say the iphone demand is slowing around the holidays. is the supply issue turning into a demand issue? the president will announce new measures today as markets whipsaw over the last 24 hours at news of the first omicron case in the u.s. and here comes the oil. opec+ will pump 400,000 barrels a day in january. the market drops like a stone. we will speak to jeff currie of goldman sachs. from new york, i'm alix steel, with my cohost in london, guy johnson. this is "bloomberg markets." they are going to pump oil in january. on the other hand, they say they
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can adjust it if they need to. guy: i think a few people expected that this would be the outcome of the opec meeting. does kind of feel like the saudis, who clearly have lost their element of surprise, have maybe done a deal with d.c.. we will wait and see. feels like it, doesn't it? alix: does it? guy: we had an spr release. we get this deal being done in terms of adding extra barrels to the markets. . it is certainly going to prevent another spr release. it is going to leave opec in control of this process rather than having to worry about what is happening with suppliers, and it does take the temperature out of this whole issue of higher oil prices. alix: we will debate that. i am not sure i agree with you on that one. we will talk to jeff currie later on. guy: i want to talk about the other thing you mentioned in the headlines as well, and that is what is happening with apple, confronting a new problem as the
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holiday season heats up. it is a problem and hasn't really had to deal with in quite some time. it has had to deal with the issue of supply chains. now it is having to do with the issue of slowing demand. the giant apparently telling suppliers that demand for the iphone 13 has weakened. we've got a great chart looking at the correlation between what is happening with apple and the s&p. the news certainly dealing a blow to the tech giant's record-setting rally. the correlation to the s&p now turning negative. we've obviously had a lot going on in terms of markets over the last 24 hours. apple in some ways is a safe haven, but it is interesting that that may be starting to break down as well. here to talk more about what is happening with regards to apple's woes and how omicron may play into that story, alex webb of bloombergquint take. bloomberg's -- bloomberg quicktake.
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bloomberg's mike mckee joining as well. this feels like a big deal. i can dream, the last time apple talked seriously about slowing demand. it has had to do with supply chain issues. we knew about that. but now i demand slow down. how serious is this? alex: at the moment, this is reported from sources that they did have a profit warning a few years ago where they said demand was not as good as expected. this year is really about demand catching up with supply. we already knew they had perhaps reduced expectations for what they would be able to produce because of the semiconductor shortage. it is perhaps getting harder for people to buy iphones for christmas. that demand is getting pushed into next year. the expectation is that it would arrive perhaps in the first half , as you get closer to the new iphone. the iphone 13 was not a considerable upgrade from its predecessor. the next one is expected to be a substantial upgrade.
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if that demand is going to pick up next year, you're going to have a real bonanza, seeming supply chains can cope. you probably have to have a meaningful upgrade. alix: it is so interesting how the market is not following apple. i feel at that is a bit counterintuitive to what we have seen. what struck me with this story is the fact that it could be a demand issue, not a supply issue. i appreciate that it is a short-term thing, waiting for the new upgrade, but a demand issue is not what we have been talking about the last 18 months. michael: no, it is not. but the question is how does it break down. we really don't know. there were not the same kind of expectations for the 13 because it was not as new a breakthrough of product. but on top of that, you layer the pandemic and the fact that people got lots of money and spend money on electronics in
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2020 and first part of the year, so maybe we have pulled forward some purchases of electronics like iphones that leave people not needing to buy as many at this time, and then there is the supply chain question. the chinese have the no virus policy, so they have a tendency to shut things down very quickly . if we see omicron spread their, that could cause more problems for the electronics suppliers. guy: is there any chance there's also an inflation factor here, that people are seeing price rises more broadly, and as a result that maybe takes away some of the desire to spend money on discretionary items? do i need to upgrade my phone, or can i wait? michael: that is a very interesting question because the iphone came along in 2007, and since that time we haven't really had an inflationary question, so it hasn't been thought of as a discretionary item. alex may have a better idea of this than me, but people have
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thought they had to have these phones. now maybe we are getting to the point where the incremental changes do become something of a luxury good, and if they are going up in price, people may say i don't need that one. alix: to be fair, i feel like they force you to upgrade, and i am getting mad about all of that. you make of the fact that the rest of the market isn't rolling over on something like this? after yesterday's really big selloff into the close for a headline we already knew was coming, and apple down over 2% at one point this morning, what is up with the rest of the market? what do you make of that? alex: perhaps some of the trading on apple has gone into other accounts. apple and tesla i think are the two biggest in the world. i am new market expert. it would not surprise me if some of the trading is heading elsewhere. i personally don't see a correlation with inflation on apple sales. don't forget, we are still going
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to see a record christmas quarter, record holiday quarter. analysts are expecting a 6% jump in revenue this quarter. if we were already concerned about inflation, i think those would be corrected down and we would have to give it whether sales this quarter were affected. guy: it is a more pretty double revenue stream. it allows them to generate annuity. more and more people are flocking to apple because of the services. if we see demand for hardware softening, will that affect what apple is making? alex: we are talking about photos, music, icloud, the app store. the app store, if you have gains on the app store and they require high processing power, that is encouraging people to buy higher spec iphones. if you download games from the app store --
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guy: we all experienced this. the technique slows down -- the tech slows down because the software gets better. was the 13 a big enough upgrade? alex: it had a faster processor. the upgrade cycle is a different question. that does seem to be slowing. alix: 100%. mike, we have noticed a distinction between the jobs market and the confidence there versus consumer confidence. confidence in the liver market holds up. this is part of that story? guy: it is hard -- michael: it is hard to separate all of this out. what you pay for gasoline and what you pay for food have been a major issue for people, but
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how they are feeling when the stock market rolls over, people start to think maybe things aren't that good. but when you ask them about their jobs, their individual situation is pretty good. there are a lot of jobs out there. so people are kind of of two minds about this, so the old alan greenspan adage is probably the thing to watch. we watch what they do, not what they say. alix: thanks a lot. alex webb of bloomberg quick take and mike mckee, thank very much. coming up, investors bracing for december volatility due to omicron variants. we will speak with aiofinn devitt of monette a group -- of moneta group. this is bloomberg. ♪ berg. ♪
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alix: markets rebounding after the biggest back to back selloff since october 2020. rotation from growth to value, covid and lockdown beneficiaries, and a rally in reopening theme. i feel like i've heard this story before. they are using this as an opportunity to buy the dip and positioning for this higher bond yields. joining us for her take is aoifi nn devitt, moneta cio. i've heard this theme for a while. is that the right call? aoifinn: i have definitely also heard it before. why are we buying the dip? because there is so much money sitting on the sidelines. flows into equity this year were larger then any cumulative
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flows of the last five years. they are poised to buy into risk , which it needs to to be the cause of persistent low interest rates. guy: say we don't end up with low interest rates. say the fed actually, as some would suggest, that we end up with rates significantly higher than where the market is anticipating. how do i position for that, even if it is a tale risk? aoifinn: that certainly does seem like a rather remote tale risk at this point. we have seen real hesitance around any tightening of any kind, even in the face of obvious inflation indicators. so you maintain. you maintain your allocation to fixed income. it is in the portfolio as a ballast, as an anchor, as a form of deflation hedge. that is when that fixed income will start to come through as interest rates to rise.
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initially this may be a little bit of a hit to that existing fixed income, but it will ultimately be where you want to do that. it is quite a problem for equities if we do see a steepening yield curve because we will see rotation out of equities into some yields in the fixed income area. alix: i'm really skeptical as to what would actually trigger that. you would have to have the real yield move more towards zero. . under what conditions economically do you think something like that could happen? aoifinn: we would have to see persistently higher inflation. we haven't even reached 5% in the u.k. yet. we have seen 6.2% in the u.s. if we see repeated prince like that, truly the transitory narrative will well and truly be calcified and we will have to look for a higher inflation area environment. i see markets still be in fragile. they are resilient, but fragile. have been resilient in the face of a lot of geo-clinical news --
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geopolitical news. they seem to be just wanting to go in one direction. but the fragility is what we see in the demand for bonds. bond demand has not really subsided despite low interest rates, but there is a lot of desire to protect and hedge against a flight to safety. because of that -- guy: well, let's talk about that fragility. we have not had a credit cycle. we have not had companies going to the wall any meaningful way. if we are going to see slightly higher interest rates, what is the sensitivity of the credit market to higher interest rates? what is the sensitivity particularly at the bottom end of the credit market to slightly higher interest rates? aoifinn: i don't inc. we have per ticket -- i don't think we have particularly high sensitivity. there probably is a need to normalize and for credit portfolios to stand up. the reason those low rates were the case and did not come through is because we saw this
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artificial stimulus and a desire to kick the can down the road and essentially extend, pretend, and not force companies to come directly. so i don't see that fixed income is going to be that sensitive to a change in rates at the moment. in the long term, yes, but it has simply been certain -- then circling around a situation that is uncertain. alix: yesterday's price action was real interesting. how seriously are you going to be taking the price moves now as we are moving off of these omicron headlines? aoifinn: it is interesting because we are coming off a year of record success, and we have seen new highs in the nasdaq and the s&p. so as a result, even though these short bouts of volatility have sent a chill through markets, we still have a significant bank of equity returns to enjoy your to date. so i think that will continue to be profit taking, but also preparing for 2022, laying out the themes, looking at where the
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portfolio needs to be exposed, maintaining that core exposure across the stay-at-home stocks, as well as the economy reopening stocks. i also believe playing the theme coming out of cop-26, the focus on electric vehicles, energy, and the energy transition, those i think we'll have a lot of legs as we move into 2022. guy: thank you very much for your time today. we really appreciate your analysis. thank you very much, indeed. next, we are gone to take you to southeast asia. the southeast asian company grab listing on the nasdaq after competing a -- after completing a spac merger. it is now down around 11. 10 -- tan hooi ling, cofounder of grab holdings, will join us.
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we will find out what grab does next. his is bloomberg -- this is bloomberg. ♪
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guy: the southeast asian ride-hailing and food delivery giant grab has gone public in a $40 billion deal, a spac deal, and is now trading on the nyse under the ticker grab. the company operates in eight countries. joining us now, hooi ling tan, grab's cofounder, and bloomberg's emily chang. emily: thank you for joining us. you are a long way away from those plastic tables you use to set up at gas stations to recruit drivers. this is one of the biggest spac's of the year. why spac, given the
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tumultuous year, and why now? guest: thanks for having me back. we chose the path that enabled us to get the best investors for our day one cap table. based on our investors that were attracted to the long-term growth opportunities we have seen and very low we gibson rate -- low redemption rate, we are extremely happy with the outcome that we have achieved. emily: you have turned grab into a super app. how worried about you about a resurgence of covid and omicron right now? hooi: i think a critical part of our strategy has enabled us to be very resilient to the covid
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challenges. to share a bit more about what it is, think about grab as uber, doordash, and venmo all in one. from the days when it starts, when you wake up all the way to when you go to bed, you are able to get your breakfast, pay for, send gifts, buy groceries, and more. and why that is really important is because it enables us to have things like shared fleet strategies with our largest driver partner network in the region, which enables our drivers to decide if they want to transport people, deliver food or groceries, seamlessly in the app, and therefore enables us to very quickly pivot from mobility to deliveries over the past two years. with this strategy, we are very confident that we can continue to serve the needs of southeast asian users and our partners, despite whatever challenges covid continues to throw at us. emily: still, losses widened in
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november for the third quarter. revenue also declined slightly. when do you expect grab to become profitable? hooi: bit of context, a large portion of the quarter results were because of more than $700 million of expenses, much of which will no longer be required with the spac we just went through. the other important thing is that growth and profitability are not mutually exclusive. you have seen that consistently from us over the past few years, where we have consistently developed very high topline growth while also making very significant progress on our profitability. our mobility segment is already positive. our deliveries business, which is a very young business, only three years old, is also segment
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positive for markets that we have. ultimately, what matters in our portfolio allocation strategy is that we will continue to invest into areas that we see tremendous opportunities in and very strong momentum behind. emily: southeast asia is one of the fastest-growing economies in the world, one of the fastest-growing digital economies in the world. do you see the most growth coming from, and what new areas do you see grab investing in? hooi: great question. the two key areas we are very excited about, the first of which is anything you can eat. we are expanding beyond our food delivery business is to include things like take out and groceries. a sickly, we want southeast asians to think of grab whenever they are thinking about food. that is one area. the second important area is financial services because in the region, six out of 10
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southeast asians are still un-banked or under banked, and we see a term in this opportunity to use technology to make financial services more accessible and affordable. for example, right now we provide critical insurance coverage for our driver partners for as little as $0.10 per ride. ultimately, it is a huge growth opportunity in southeast asia. our core businesses alone have a total market of $180 billion by 2025, and that doesn't even include our newer growth areas and investment areas like digital banks and groceries. guy: thank you for staying up so late in singapore to talk to us about all of this. it is fascinating. emily and i were talking to a few days back, talking about the latest idea to look at the logistics industry, basically creating a marketplace for
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drivers and trucks. i am wondering if that is an area that would be of interest to you as well in your region. hooi: for us right now, what we have is the largest driver delivery network in the region. that to us is the logistical backbone for southeast asia that we believe can continue to support the e-commerce growth that the world is seeing. it is very much still focused on our driver partners and delivery partners. we look forward to seeing what we will build as well. alix: emily mentioned and asked about the resurgence of the new variant, omicron. i wondered if you could give me what you are noticing on the ground. our people staying at home more? are people going to work more? can you give me an idea of how the chessboard is being set right now? hooi: it is a great question, and to be honest, it is a bit too early to tell.
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we ourselves have not seen any particular changes yet, but the days are early, so maybe over the next few weeks some of these trends will start to become signs. emily: what is grab's strategy in indonesia? this is obviously a huge economy , and you've got an established homegrown tech competitor. what is the plan to take them on? hooi: indonesia is our most competitive market, and a market that we entered relatively later. at the same time, we are already the leading category in the market and all of our core businesses. so for us, what has enabled us to do this is a couple of things . a continued partnership with local partners who have enabled us to continue to serve local smes in different ways we were
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not able to before. our continued partnership with our local government partners, for example, in covid, we, together with the government in indonesia, set up more than 50 vaccination centers to try to encourage recovery. this is really important to us because when the country is doing well, we do well. if there is anything we can do to build this continue to trust we already have with them, that will always bode well short-term and long-term. beyond that, i think our deliveries market and our category leadership there is really an important one we will continue investing in, and that we are quite excited about. the strategy i talked about earlier where we have local technology investments that enable us to really have strategic advantages that are really difficult to replicate are things that we will continue building on. alix: we have to leave it there,
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but that was a really great conversation. we very much appreciate it. bloomberg's emily chang, thank you as well. grab stock now trading at $10.56. we are one hour into the u.s. trading day. powerful rally right around the highs of the session. bloomberg's abigail doolittle is here with what is moving the market. apple is lower, the stock still higher. abigail: i am amazed by that because you typically would not see that. a very powerful rally after a brutal two days for the s&p 500, the worst since october 2020, and yet its biggest component in apple and 2.5%. the correlation on apple and the s&p 500 is broken down, so yesterday apple was at an all-time high. a little bit of evening out here. visa and j.p. morgan chase, yields are higher. one of the big stories on the day, oil. super interesting. it had been higher, this after
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having been down for two days, the worst november since march 2020. selling pressure having to do with fears around the variant, economic demand, the strategic reserve release, and then you see today a big drop lower as it was said that opec+ will be holding with their output hike in january, and then off of the low, so it seemed like investors needed that news to finally come out you not such a surprise, given that had been some posturing that they might do that in response to the reserve release. nonetheless, you still see oil is below that 200 day moving average. we had this kind of action at the end of last year. it will be interesting to see if that is what is going to happen or if it is going to be more dramatic and along the lines of 2020. right now it looks more like healthy consolidation around that 200 day moving average. guy: it is going to be our next subject. thank you for setting it up for
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us. bloomberg's abigail doolittle on what is happening in the markets right now. more on those moves related to the opec+ meeting. we will do that with jeff currie , goldman sachs global head of commodity research. that is coming up. this is bloomberg. ♪
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alix: this is "bloomberg markets ." coming up josh silverman will be joining us at habakkuk p, new york, 2:00 p.m. -- at 5 p.m. in new york, 2:00 p.m. in san francisco. this is bloomberg. ♪ guy: as you mentioned,, now
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bouncing back after opec+ agreed to proceed with a january output hike. for more on this story, let's bring in jeff currie, goldman sachs global head of commodities. what do you make of the decision? jeff: i think it makes a lot of sense in the current environment. there was a lot of tensions with the u.s. a adminstration that were highlighted by the spr coordinated announcement a few weeks ago. second, it takes the pressure off the administration to cut a deal with iran that would have provided barrels. third, shale producers were budgeting for next year, so this means less spare capacity at opec and likely less shale or iranian oil a muscle it forces that medium to longer term list story. but near term, it is a blow to sentiment and fundamentals. but looking where prices are relative to the underlying cost structure, it is pretty hard to
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argue they will go much lower than where they are today. alix: it feels like if they really wanted to throw a line to president biden, they would have increased production. using that was on the table will horror omicron -- table before omicron? jeff: i think the market has priced in no production increase for the month of january, so the fact that they are increasing by 400 a day is above market expectations. i have a feeling all of this omicron uncertainty developed over the course of the last week. we are down almost $15 a barrel in one week. one thing i want to emphasize that made it much more vicious than what we have seen historically is that you had a negative gamma effect going on. there's very little liquidity in this market right now. the producers have the delta hedge. the dealers have to hedge the strikes of where the producers hedge out, and markets will sell more and more.
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that amplifies the magnitude of the selloff. at this point now, it is pricing in a disaster scenario around omicron. like, no planes flying around the earth for the next three months. so the market overshot to the downside. guy: so where are we year end? jeff: i think at this point, you have a lot of investors take risk down because it has been a very good year in commodities. you can see it in the liquidity and in the market overall. we would think that it wasn't until after the first of the year that you would see risk come back into this market. the medium term story is very much intact. you could argue that with the lower prices, it is even more positive than what it was before. but near term, there is still a lot of uncertainty with omicron, and i think the willingness for investors to put high levels of risk on right now is pretty limited. i would expect there to be a grind higher going into year end
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with real potential upside after the first of the year. alix: i also wonder what is going to happen with volatility because we know that opec hates volatility. they want a stable oil price. if we continue to see the volatility we have seen in oil, what kind of rhetoric or action may we see from opec+? jeff: i would argue you are developing a volatility vortex may be in these energy markets as liquidity drops off and investors get discouraged in this space. that reinforces higher volatility. the higher volatility then discourages less investment and less liquidity, so it is a vicious cycle in terms of creating a higher level of volatility. the only way you were going to stop that volatility is through increased investment and increase liquidity through more investors coming into the space. but the hurdle between omicron and all the recent of elements just gets pushed higher and higher. it will be difficult to tame the
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volatility as we go into the winter months. it probably won't be until we get to the backside of the winter, sometime in march, that you could really start to turn down the volatility. guy: if you are in the united states and looking at the spr release you just coordinated, would you conclude from today's reaction that it did work, or is this something else happening here, that the saudis want to turn the temperature down, they don't want this relationship to continue in the way that it is? i am trying to understand the back channel here. jeff: the spr announcement, right after the market rallied, and was still positive until you got the omicron news. that is when you created that vicious downdraft because you think about the immediate reaction to shut down borders, which impacts oil. we look at the two commodities hit the most here, it is oil and cocoa.
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cocoa is sold primarily at airports. when we think about the spr release, the market shrug it off and was rallying. i would argue what we are witnessing here is the uncertainty generated around omicron, but what made the downdraft so vicious is you had a negative gamma effect on top of that. alix: before you go, we had jp morgan with $130 oil. we could see spikes next year to $120 for brent. what is your outlook for next year? jeff: the upside risk i think is substantial going into next year. i think putting a number around it is very difficult because there's going to be a bother volatility -- a lot of volatility due to the reasons we talked about. right now, the market's repricing carbon. think about where that equilibrium is. i think there is a lot of uncertainty.
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i just don't think it is very useful. the way i like to describe it to our investors, get long, buckle your seatbelt, hang on for the ride. if this last week didn't demonstrate to you why you have to have that seatbelt type, i don't know what else. the upside potential i think here is enormous. alix: really appreciate that analysis. i love seatbelt things like that. we will continue the conversation on "commodities edge" later today. also my conversation with trafigura's global head of decarbonization on how they are cutting emissions. that is it want to talk p.m. new york, -- at 1:00 p.m. in new york, 6:00 p.m. in london. his ritika gupta. ritika: russia warns of
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serious consequent is if ukraine makes moves. it says it sees a growing risk that ukraine may attack russian backed separatists. house democrats have come out with a short-term spending bill to try to prevent a federal government shutdown this weekend. the bill would fund federal agencies through february 18 and would have to pass both houses of congress by midnight friday. that will require cooperation from senate republicans who have the power to drag out the process. pfizer expects its coronavirus vaccine to hold up against the omicron variant. data should be available within two to three weeks. >> the clinical significance of those mutations is unknown, so i think we really have to wait for the data, and i don't expect that there is a significant drop. if there is a significant drop, then pfizer has a playbook to develop a new vaccine. global news 24 hours a day, on air and on bloomberg quicktake,
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powered by more than 2700 journalists and analysts in more than 120 countries. i'm ritika gupta. this is bloomberg. alix: president biden is going to announce new actions to combat the coronavirus later today. we want to get the latest with joe mathieu, bloomberg washington correspondent. we get a little bit of the readout of what we are going to get. walk us through some of the highlights. joe: the president is working with the tools he has, and they will sound familiar. it is going to be at least a couple more weeks before we have real data on this new variant, but the president did promise to speak today, and he will, from the national institutes of health this outside of the nation's capital. among the announcement we expect is increased testing for those coming from out of the country. we got a preview on this earlier in the week. people will need to show a negative test within a day of getting on an airplane to the u.s. there may also be a follow-on test in the following three to five days and possibly a quarantine could be included there as well. president will also call for an extension in the mask mandate for trains, planes, and other
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public federal spaces, and will call on private insurers to cover the cost of at home testing. that is the bulk of what we expect to hear today. i was in the white house briefing room yesterday when dr. fauci came out in front of reporters to announce this first u.s. case of omicron, and even though we knew it was coming, we knew what he was going to announce, it came with a certain sense of trauma. when the president speaks today, the real job will be expressing confidence, but also maintaining calm. guy: thank you very much, in joe mathieu joining us on what will happen in easy -- in d.c. the u.s. government is urging vaccinated americans to get their booster shots as the omicron variant threatens to spread. let's look now the science behind making these drugs and
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how they become more effective. the sentra ceo joins us now. sentra's software is hoping to determine how many drugs are made, how they behave, and what happens in these different populations. thank you indeed. talk to us about what you see in front of you right now. worries that our current therapeutics don't work well enough. what can you tell us? >> thanks very much. we model the effect of drugs in the body, and when the pandemic came along, we created our vaccine simulator, which received an r&d 100 award. what we use that for is to look at the dosing, the size of the dose and the time between doses for different vaccines,
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calibrated and against a lot of clinical data, and we have shown it has been pretty accurate so far for the existing vaccines. it is not surprising, i think, that covid has variants. it is still pretty early in terms of the science, of what omicron is really like. but these emulation -- the simulation capability is there if and when we have to develop new vaccines. one thing we say is the idea that we need to take boosters is absolutely shown by the software. it is a very good recommendation. alix: to that point, do we know yet, and how do you help this, what drugs go best together to create the best protection in general among covid, and then the variants? william: we have done a lot of modeling looking at companies and vaccines. so what happens if you get moderna first, pfizer second,
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looking at some of the other vaccines. what we are looking at is number one, there is certainly no harm to it, and it is good from the standpoint of vaccine supply, but we have also seen some dictation that it actually leads to a better immune response in some cases to mix the vaccines that you get in your different doses. guy: in terms of understanding the process of getting new formulations ready and out there into arms, the scientists have been talking about this a great deal over the last 24, 48 hours. there are certain biological processes that cannot be sped up. i.e., this hundred days looks like it is fairly fixed. what is the sense of whether or not we could speed that process up, whether or not ai, whether or not modeling could help us accelerate some of these processes? william: i would say the develop end of these vaccines is almost a miracle in the history of
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mankind, how fast it happened. it is kind of amazing we are talking about 100 days and can we speeded up. but i would also say there's a lot that is known about this disease right now and about the vaccines, their mechanism of action. certainly modeling will help. we are already working on it. i think there's a lot of people around the world, not just people working in pharma, but also regulators looking at how to speed this up and deliver new vaccines if they are needed. alix: what is also interesting is we are learning how the vaccines interact with an individual immune system, but the patients in south africa who did have the vaccine, but were also hiv-positive, and they react differently to different variants. how do you help us figure out how an individual can respond to a certain vaccine or a certain therapeutic? william: one of the things you can do with bio simulation is
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looking at getting the right dose to the right patient, and when you do that, you are looking at what are the other factors that might affect patient. so we have looked a lot at of different ages, people with different comorbidities, and we can certainly look at things like what is coming out of south africa, where potentially some people who have been exposed to other viruses may be more susceptible to it. but i still think that omicron has really only been discovered fairly recently, and from a scientific standpoint, people are scrambling to find out what the real facts are here. so i think the good news is with bio simulation and with all of the tools that are available, there is a lot we can bring to the table here, but this is going to play out over the next few weeks as we get more and more data about this new variant. guy: one of the critical things we are still trying to understand is how regulators will deal with new versions of the vaccines. it looks like it will be a
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similar playbook to the one we used for flu. what can bio simulation do in terms of allowing regulators to smooth this process? william: one of the interesting things right now is it is very difficult to do large-scale clinical trials on new covid vaccines because so many people have been vaccinated. so in bio simulation, we can start to ask questions about will these new vaccines have different effects in different populations of people such as children or elderly, or people with different comorbidities. we can get at that a lot faster than trying to organize a trial of tens of thousands of people that is increasingly getting quite difficult. alix: thanks a lot. we really appreciate it, william feehery, certara ceo. this is bloomberg. ♪ oomberg. ♪
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ritika: it is time for the bloomberg business flash. apple has a problem it was not expecting with the iphone 13. the company has told suppliers that demand for its newest device has weekend. it is a signal that some consumers have decided against trying to get them. china is on the verge of listing -- of lifting and almost three year grounding of the boeing 737 max. china was the first country to ground the plane back in 2019 after two fatal crashes. it is the world's second largest aviation market. the top offices at goldman sachs have come to believe that they are not getting paid enough. they are looking to reward ceo
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david solomon and his deputies, getting a cut of the richest rewards thrown off by goldman's blank check companies. they have also pressured for incentive packages and had some success. that is the latest business flash. alix: thanks so much. i found this story fascinating. we might look at it and say yeah, whatever, they want more money, but an action by letty, these banks are losing a lot of talent, and high-end talents, to go to hedge funds are private equity, where the pay is astronomically different. this is a real competitive scenario. guy: sick about where it started as well. it started with junior bankers, and then spread elsewhere, and what we saw with the lower ranks getting a piece of the pie, i think it was only inevitable that we would see the senior ranks making the same point. but i think your point about buy
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side and sell side are well-founded, and i think if you work for the sell side, maybe you're looking at the buy side and saying i want a piece of that pie. alix: especially when your pay is disclosed and you're going to get heat from washington dc on your pay package, that is going to be very different. that had to put that off, and then you had covid happen, so there's a lot there. guy: i would be interested to know what elizabeth warren's attitude is towards all of this. we will see if other firms follow suit, i think. it is unsurprising at this point that this is happening. alix: that is a really good
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point. take a look at the overall market situation. what i also find interesting is just how well certain areas are holding up. you have a flatter curve, but financials are still doing well in the u.s. guy: let's talk about what is happening here in europe as we head towards the close. we have around five minutes before the end of trading in europe. we are seeing some ripple into the tech sector as a result of what is happening with apple asml -- with apple. asml down today. maybe the return to own stocks beginning to unwind a bit. aston martin, the market reacting really violently to that. coming up, hugh gimber is going to be joining us. this is bloomberg. ♪
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guy: european equities gapping lower. we have been down throughout the day. a number of factors into the
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mix. we will talk about them throughout the show. the countdown to the close starts right now. >> the countdown is on in europe. this is "bloomberg markets: european close," with guy johnson and alix steel. ♪ guy: european equities are down. the stoxx 600 is trading for 65, down by over 1%. we have really struggled to gain traction since then. we also had some weight added to the market this session, when we saw oil coming down sharply in response to what was happening with opec. since then, that opec move has faded. we've now got brent crude trading by 1.8%. despite that, we still have a stronger dollar. the norwegian currency heavily exposed to the

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