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tv   Bloomberg Markets Americas  Bloomberg  December 3, 2021 10:00am-11:00am EST

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alix: 30 minutes into the u.s. trading day, friday, december 3. top stories, a weird jobs report, the market rolling over. underlying data better than the headlines. as appear rolled over. we are awaiting remarks from president biden. any chinese tech firm plans to delist in the u.s. and crazier than the dotcom bubble, someone said the market is wildly overvalued and they wish cryptocurrencies were never invented. welcome to "bloomberg markets." guy, i am fascinated to see how we're going to close for the s&p. what happens? guy: a lot of things going on. such a topsy-turvy week.
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not surprised friday is delivering more volatility. looking at the trends this week, any surges in the stock market have been solved. the yield points, maybe we get the rivers, start down and then surged into the close. nevertheless, that has been the trend. and difficult data to handle this week. is that a shift in market sentiment? that is the question we need to figure out. we have a host of information to factor in. we get payroll numbers today. securable goods number coming through, october, final, a little weaker than anticipated. headline number at -0.4. previous was -0.5. x transport, zero .5. we have services data and capital goods. which would you like to look at?
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alix: factory orders. october, up by about 1%. transportation up by 1.6%. i wonder if it could go down with the new variant, omicron, and will there be more stay-at-home orders that will crimp production. guy: i will focus on the services number, which is interesting. to your point with omicron and the delta search we were getting, there was concern that this would hit services. this is november data, so in theory, we are kind of pre the point at which we started worrying about both omicron and delta stateside. ism very strong, 69 .1, up from 66.7. that is a hot, hot number. in many ways, to my mind, the jobs story today was a good one. the household survey looked really superstrong. yes, the headline number was not good, but i wonder whether we
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will get significant revisions there. in theory, the take is the u.s. economy created far fewer jobs than expected in november. maybe a sign things have started to slow down a little bit. not entirely convinced. the household never was really quite good. that is the underlying picture maybe we should be focusing on. we're joined by aire of bloomberg intelligence and mike mckee, policy correspondent -- ira jersey of bloomberg intelligence, and mike mckee. ira, the 10-year going nowhere in a hurry. can i say that today's payroll number has done little to disturb the idea that we're still on track for a faster taper? ira: i think we're still on track for a faster taper. when you look at the data, and mike mckee will delve into that deeply, but when you look at things like hours worked and the number of new jobs plus the rise
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in wages, even though it missed expectations a little bit, we are now back to basically trend. we continue to improve quite significantly in terms of aggregate labor income. for me and for, i think, the market, that is the most important indicator. these month over month fluctuations in the headline payrolls number are not as important as, does the consumer have more money this month than it did last month in order to spend? so even though there were households that do not get new jobs, they might still be looking for work. in the aggregate, this was ok. so we are now pricing for better than even odds that the fed will start doing that in may of next week. and a big part of that is that taper, faster taper would be necessary for that to occur. alix: if we look at the data on that, mike, what have we learned about how the jobs market reacted from delta to get a
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feeling as to how we will look at omicron for december and january, setting us up for jobs in the first quarter? mike: it is hard to parse out, because we do not see much job gains, delta-facing jobs, shall i say, restaurants, bars. but we also do not know if that is because a lot of them have gone out of business so we do not have jobs to go back to for those people. i want to show you something that really is the impact here, the seasonable adjustment issue. 778,000 jobs on a nonseasonally adjusted basis, to 200 10,000, tougher than november of last year. look at the retail numbers. clothing stores, 55,000 were higher, but seasonally adjusted numbers, 17,700 numbers lost. same with department stores and warehouses. in the strength of the ism services index, the numbers for the same month for employment go up significantly, to 56.5 from a
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50 16. statistics did not get jobs, but people apparently did, i like to say. guy: ellen's that in her was talking about this earlier on, suggesting that maybe there is a danger that actually delta plus omicron equals more inflation, that we should not be looking at what is happening with the labor market in isolation, that we should be worrying maybe about the possibility that actually we could see, particularly on the manufacturing side were jobs did pick up, some more supply crunch is coming, and that will only hasten the idea that the fed may have to act even more quickly. is that the correct read of this a wish and -- of the situation here, that we should be thinking that the new variance, increased case counts, are inflationary, not disinflationary? mike: it could go either way. it leans to the idea sort of of
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inflationary because more people stay home, creates more supply chain problems, and that should be inflationary. but what happens if everybody stays home and stops spending? the economy sort of grinds to a halt because everybody is worried about going out. then it is a disinflationary impulse. we just do not know at this point. it is really too early to say, which is why think the fed will ignore pretty much every in -- everything in here except for the fact that we got the better-than-expected numbers in terms of minority unemployment that helps them check the box of employment or close enough to it that they can taper, so they will go ahead and taper. then, three months from now and four months from now, in march or april, they will look at whether or not they want to raise rates or not because we will have a much better idea of where inflation is going. alix: ira, you mentioned the markets pricing in the first rate hike now in may. i have to wonder if we are set up for the stagflation scenario
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that we hike sooner and faster, therefore hurt us in 2023 -- is that the right interpretation? ira: the market thinks soapy of the market is only pricing for four or five hikes, than the federal reserve stopping and eventually easing monetary policy. there could be other things going on, the market might be thinking that they are going to start running off the balance sheet, and that will act like hikes, that is a hawkish statement by the federal reserve. but i think this idea that we are going to have lower terminal rates with inflation likely to remain over 2.5% is a little bit too pessimistic, i think, personally. inflation is naturally -- year-over-year inflation is naturally going to be lower in the second quarter of next year than it is in the first -- fourth quarter of this year and right now. it is based effects that will make that happen. some of the increases that we have seen have already started to roll over, so things that i
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look at for inflation and inflation expectations are things in shipping costs. shipping costs have rolled over, well off their highs. oil would have to go up to $130, $140 a barrel to repeat what happened in terms of year-over-year increases this year. so it is very unlikely that you're going to see those kinds of increases. inflation will moderate but will still be higher than the last few years the bond market, and you look at the treasury inflation treasury securities market pricing, pricing right now for inflation to average over the next decade 2.5%. which means high inflation now for the next year or two, lower inflation going forward, and the bond market, when you look at things like five-year yields, five-year yields are pricing for the federal reserve basically to stop at 1.25 percent or so in terms of hikes. i think that is a little bit too pessimistic. guy: to that point though, mike, if we were to see it go beyond
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that, how much can the u.s. economy pay? there is still a lot of debt sloshing around, and awful lot, the point mohamed el-erian makes, that basically the fed is limited by the amount of debt in how much hiking it can deliver. has anybody calculated -- is it possible to calculate what impact, given the debt lives we currently have in the u.s. economy, how far the fed can go? mike: hard to get an accurate figure because it is hard to know how easily companies can meet their debt requirements. the income to debt ratios have gotten a lot stronger in recent years. companies have a lot of cash on the balance sheet. a lot of debt was taken out to do things like buy back stock rather than use the cash you had because it was so cheap. that implies that an awful lot of that can be rolled over. there is a question about what happens in the rest of the world, particularly emerging markets, with dollar-denominated
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debt. it is really hard to get a sense of, at what point is too much too much? the fed will have to be cautious going forward doing this. i think ira is right, it may be a little pessimistic at where they stopped, but i am not sure the bond market has a much better handle on what is going on than the fed and other economists. because this is just all new to everybody. alix: appreciate the round table. we will continue this conversation. mike mckee and ira jersey, thanks a lot. breaking, meta platforms, formally known as facebook, shares dropping over 2%, now looking at a bear market for that stock, up 20% from its september high. remember, it will trade under the ticker -- a new ticker later, but still going under ticker meta. we will delve more into the economics of the jobs report, coming up. job creation misses estimates,
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but the household number is still strong. the fed will read those numbers, we will break that down next. this is bloomberg. ♪
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>> we are going to have a strong market moving forward. obviously, we have job openings to work on. we're still dealing with the coronavirus, looking at the new variant now to see the impacts here to overall, i feel good about where we are going as an economy. alix: that was marty walsh speaking on bloomberg television in the last hour. run a code clark is here from citigroup global markets -- veronica clark is joining us. we are seeing increased bets
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right now on a hike from the fed. is your interpretation of the job market good or bad? >> the headline number was a bit softer than expected. the most important take away is that labor supply is still an issue here. the drop in the unemployment rate was very notable, and this is a much tighter labor market. our base case is for the first hike in june, but it could be earlier. guy: veronica, what role will omicron and delta play in that calculation in your mind? a former member of cite type, now with a bank of england, making a speech earlier on suggesting maybe the bank of england should wait -- a former member of citi, he said maybe the bank of england should wait because he does not know the impacts the latest weibel have on the economy. how does that apply in the u.s.? >> there is still a lot we do not know about the virus itself. but i think what we have learned are each wave of covid is that
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the economy is more and more resilient with each wave. if we are seeing something like the delta wave that we saw in august, september, that was a situation where demand tilde very well, so maybe this supply-side was hit more, we have global delivery delays and shortages again, and that is an inflationary scenario. alix: when are we going to learn the impact of that? sorting out whether it will be inflationary or will weigh on growth more, like we saw yesterday, google pushing back their return to office, feels like it will be super key in determining what the distance is between the end of taper and that first rate hike. >> yeah come on the virus front, i guess we will learn more in couple weeks and then a couple months after delta, very strong october and november inflation report, november we will get next weekend likely to be very strong again. so it might take a couple months to show up in some of the economic data. but as we see some of those
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unemployment reports in december and january and see labor shortages continuing, of course we will have a speeding up most likely of the fed taper. that is an inflationary scenario, and i think the fed will get more concerned on that. guy: what would that mean, more concern? if we do see the latest wave, as you say, affecting this supply-side, particularly on the materials side of the economy, what will that mean in terms of the policy response? can you give your cents on the reaction function around that? >> yeah, if we have tapering ending maybe around march of this year, increasingly the fed might not want to wait a couple months to start to raise rates. we could see the risk of a hike maybe as early as that march meeting. our base case is still for june. if you do see short labor supply and putting upward pressure on wages, goods costs still a levay did maybe because -- still elevated because of delivery delays, this is a fed that seems
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to be more concern on the inflation side appeared the anaplan it rate falling -- the unemployment rate falling today was a positive sign. alix: during this week, powell said he is very much looking at the wave spiral. weekly hours rose. wage growth -- wage growth continuing in the nonsupervisory reopening sectors of the economy. i'm wondering when we start to see more productivity and investment in a capex cycle. >> that type of downward pressure on inflation because of an increasingly productivity just takes more time. our base case feels you have these labor shortages in the near term, and that means a broadening of wage pressures. so it is not just the lowest wage industries, like we have seen in restaurants, for instance, but going into sectors like health care and education, and the broadening of wage
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pressures means a pass-through to other service prices. guy: we have seen a fairly bumpy market this week, at least on the equity front. volatility already in fixed income, starting to see that in the foreign exchange markets. energy market volatility has been picking up. to what extent does the fed still have the capacity to act as a force for good in terms of supporting asset prices if we are to see inflation continuing to pick up? is the fed's put so active or to what extent is it being degraded by this inflationary curve? >> first and foremost, they will focus on their mandate of employment and inflation. that is what the fed does, give policy affecting economic activity through financial conditions. it would be reactive to lower equity prices, but i think we are still a long way from that. guy: yeah, we will see.
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we will see what the volatility looks like. veronica clark, citi, thank you very much coming up, investors seeking safety and growth stocks as omicron uncertainty grows. we will follow the story on this etf friday. that is next. this is bloomberg. ♪
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kriti: time for the bloomberg business flash.
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shares of db, they have begun preparing to delist in the u.s.. it was reported last week that china is concerned that the u.s. things didi will lead to linkage of sick -- a leakage of sensitive data. max jets may resume commercial flights by the end of this year early 22, that announcement one day two regulators cleared the way for the plane to resume flying in china after being grounded for almost three years. 737 max was taken out of service in 20 after two fatal crashes. credit suisse plans to restructure how it pays bankers. senior bankers should get more of their compensation in stocks with long deferral periods and the chance of fall's to increase
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accountability, it is said. that is your latest business flash. guy here at guy: thank you very much indeed. time for etf friday. kriti gupta is here with the top weekly inflows and outflows. kriti: you are starting to see a little bit of money come across the ocean come away from europe into the united states. it is once again coming off of the omicron variant fears, essentially that travel exposure you had in europe, which was kind of thriving, those airlines, well, that is being reversed little bit. money going into familiar favorites. the tech exposure, the spy, the bond exposure. once again, a return to that growth trade that you really saw thrive and 2020, once again, classic pandemic trade. let's talk about outflows. money is coming out of not just europe but coming out of some of
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those sectors that are far more yield sensitive. financials, for example, or oil, any momentum play getting money out. we have seen that with the russell 2000, for example. that has actually dropped quite a bit since its peak in early october. alix: following up on that one, i'm wondering how much you are accounting for the fundamentals of the fayard, x centric, and how much was happening in terms of end of your flows? kriti: i think you nailed it, because we are going into some year-end rebalancing. we actually had some month-end rebalancing when that black friday selloff happened. so this will be a little extension of a move that was coming. you already saw the financial conditions site -- titan enough, now people are kind of using the variant as a reason to essentially sell the news. alix: thanks a lot. kriti gupta joining us. what i also found really interesting is docusign. if we look at that, downward
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40%. i highlight that because when we were talking to analysts like a year ago, one of their key focuses was going to be docusign. that was like the classic stay-at-home trade, one of the stocks people were watching to see when the trade would shift. down 40% for docusign. that feels like things have then shifted. guy: yep, i think things have definitely shifted. and facebook, look at what is happening there. the nasdaq now down by 1.5%. the s&p down nearly .6%. tech is getting pummeled. alix: exactly. it's get into it more with emily roland, coming up next. jh investments co. chief investment strategist. this is bloomberg. ♪
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alix: live from new york, i am alix steel with guy johnson in
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london. let's go to abigail doolittle. we had the ism services super strong, markets not really responding right now. abigail: though volatile this week, up, down, up, down. so much uncertainty with everything going on this week, starting off with the fed being more hawkish than expected, a new variant come economic data, jobs report, weak on top, strong below. net-net with the s&p 500 down about .4%, now headed for a weekly decline to but the real weakness is coming from china tech. look at that index, down 8%. worst day since 2008, that is the degree of selling power, coming from the likes of alibaba and baidu, pressured by didi dow 13.5 percent, being delisted from the u.s.. it is not surprising. the china tech cracked on can
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move into some of the other china shares. on the other hand, we have some winners. unitedhealth up, home depot, walmart, among the top stocks for the s&p 500. not a lot happening dramatically, but there is some strength beneath the lead for the s&p 500 away from tech. net-net, if you put this together in the terminal, the s&p 500 flirting with that 50-day moving average, sitting on top of it right now. yesterday below it on that 100-day moving average. we saw that earlier this year. so it seems that investors, with all the uncertainty and these macro factors they are trying to figure out, they could be stuck in a sideways range here until there is more information. guy: yeah, i think we have a lot of information but not a lot of clarity. that is what we are waking -- waiting for. tag a, thanks very much indeed. -- abigail, thanks very much
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indeed. joining us is emily roland, jh investments co-chief strategist. it has been an incredibly turbulent week. give me some signal and the noise. what can i take away from this week? >> yeah, it certainly has been a to mulch was weak here, and we are seeing everything from the emergence of the omicron variant, so many uncertainties around that, leading to inflationary pressures persisting longer than we thought as supply chains potentially get disrupted longer. does it lead to a disinflationary impulse if we pursue merger connie and measures around potentially locking down, not our base case, but we have to know more, could it be disinflationary? how does that impact fed policy? this morning, we have mixed data. jobs market no longer really the shining star of the u.s. economic backdrop. it showed this morning that jobs growth was disappointing. some of the underlying data was
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pretty decent. but then you get this blowout ism services number this morning that provides further evidence that growth in the u.s. is actually re-sl a rating right now. a very mixed picture here -- is actually re-accelerating right now. a very mixed picture here. you want to be careful how you impress equity into next year, and you want to look to bonds to be the balance of a portfolio as volatility continues to perk up. alix: though you still think that bonds will be that safe haven? >> look, bonds are the part of the portfolio that did not work this year. that is always disappointing, when you get that part of the 60/40 portfolio that disappoints you. this will probably be, still have a few weeks left here, and negative year for core bonds. people are not used to seeing that on their statements. it has only happened two times in the last 25 years we have gotten a negative return, and those other times have been when rates have picked up significantly and when we have had tapering, etc. line we see
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this as a better entry point heading into 2022. you're not going to get much with the yield on the 10-year at 1.45. and we should talk about the yield curve, as well, with interesting action there today. what we think you need to get more creative, more active within fixed and tom -- fixed income. we like the ddd's and want a little high yield within the credit spectrum, and we want to use as economic recovery is way to own some credit just in a very careful way and risk- managed way. guy: very careful seems to be the main part of that phrase. emily, the dollar seems to be the counterweight to exit market volatility at the moment. will that continue? >> yes, and interesting, we came into 2021 with a positive view on the dollar. and the way we look at the fx markets around the grill -- globe is it is about, where is
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the best egg in the -- relative economics from? and we are seeing that in the u.s. we talked about this awesome data that we have seen so far in q4. we look at things i global pmi's, and they are looking pretty choppy around the rest of the world but continue to increase here in the u.s. that suggest us there should be a bid for the dollar. i think this kind of contention that we have more risks entering the landscape here is another reason why you may continue to see the dollar catch a bid going forward. alix: you mentioned the yield curve, and it feels like we are pricing in more tapering, more rate hikes, and then sort of tamping down growth and inflation. and the market reaction is legit. consumer discretionary, communications, tech all rolling over kind of on that. financials, as well. do you agree with that trait? if not, what do you do instead? >> so we do not agree with the fact that you are going to see two or three rate hikes next year, which is clearly what the
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two-year is telling you right now, that markets are expecting. the problem is that the yield curve continues to flatten. we are at 80 basis points right now. we were at 100 a week ago. that is already concerning to us in terms of the fed's ability to raise rates and tech, frankly, slowing growth environment. not a recession but the pace of economic growth to us is clearly going to slow as we head into next year, become more "normal." that is typically another way fed policy is designed. it is supposed to be countercyclical. because the fed now is looking at raising rates into a decelerating growth backdrop. we think they will have a hard time doing that, and we certainly think the fed is watching the yield curve right now and do not want to be in a position where they may risk inverting it, which we know is the key harbinger of a recession. guy: went could that happen? as you say, we have moved already quite quickly. how realistic do think the prospects of an inverted curve is right now?
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>> i think a lot depends on some of the unknowns that we do not know about. clearly, the covid headlines have contributed to this lower level for the yield on the 10-year treasury, so that will play a big role, decelerated growth, commodities. clearly, we have seen that rolling over. that has brought yields down. but look, at this rate, the fed can actually only raise rates two times without inverting the curve. markets are pricing that in for the middle part of next year, we just do not see had. we do not really think that the fed is going anywhere for a while. alix: always good to catch up. emily roland of jh investment management. thank you so much per coming up, a different perspective of where we are in the economic cycle. ism services hitting a record, blowout number. we will break that down with nick pinchuk, snap-on ceo, think tools. he will be joining us. guy: yes, i want to talk about the president -- the president's christmas trees, not one but
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two. if you're going to decorate a christmas tree, sometimes less is more. alix: do you not like it? guy: that is a heck of a christmas tree -- that is a lot. alix: i feel like this is a great response with our personalities. i am like glitter, butyl coal -- beautiful, fast -- fancy. guys like, no, too much. guy: a lot of christmas tree, and i'm struggling to see it through all the ornaments. the more important thing is the president is about to speak, addressing the labor market report. clearly, the headline number a little bit disappointing. nevertheless, we will dig through the numbers, particularly into the household survey, positive report. we will bring you the president's comments a little bit later. we will continue to show you as much of those christmas trees as we can, because wow. wow is all i have got to say. that is not what the johnson household will look like this year. alix: it is going to be cold.
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[laughs] ♪
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ritika: you're looking at a live shot of the principal room. coming up, howard lightening of cantor. this is bloomberg. let's check in on first word news. the latest was jobs report a mixed picture of what is going on in the labor market. job growth registered the smallest gain this year, only 210,000 jobs created in november, less than half the estimate the unemployment rate fell more than expected, to 3.2% . it showed hiring slowed across industries, but the household survey showed employment slipped by more than 1.1 million. christine lagarde says an increase in interest rates next year is unlikely but told reuters she will not hesitate to act on inflation if needed. the ecb plans to decide on the future of its to melissa measures on december 16 in --
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future of its measures onto super 16. more than 11,000 cases of coronavirus recorded since january, more than 5000 cases of omicron variant have been found, and they knew it. state officials bill -- will be allowed to limit nonessential procedures today. global news 24 hours a day, on-air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. i'm ritika gupta. this is bloomberg. alix: the u.s. ism services estimates hitting records of the month of november, and that is good news heading into the we can for manufacturers and services across the country. for an inside read on how the data is affected, we're joined by nick pinchuk, snap-on ceo, which is a powerhouse that makes tools and equipment for all industries. always good to see you. services with solid data.
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the ism a couple days ago, maybe easing on the supply issues, easing on the price pressures what are you seeing on the ground? >> first of all, i saw the christmas trees, and i am impressed that the president has his up. i am still trying to find my ornaments, so he is way ahead of me. look, the world of work is booming. i mean, it is strong. sometimes you have people talk about, well, will the virus affected or will we have interruptions, will it stop anything? i think it is sort of like a matrix, a red pill and blue pill. the people on the street are eating the red pill, and those people are pumped, they see positive. any technical careers are really doing well. question is, can you get enough people? at snap-on, we have been able to get people because we did not lay anybody off.
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so we started out of the virus at full strength, so we want to hire people now. a little more difficult, but we can still get them because stability speaks a lot. i think one of the things you are seeing in these numbers is that the service sector, if i was in the service sector, they're looking at stability and saying, do i want to go back? manufacturers have a lot of jobs open right now, about 800,000, and i believe that you need to have certain skills, so there will need to be a training, training lag in that situation. that i see only positives going forward. i tell you what, they will not get shocked again by the covid. omicron, come what may. guy: it is guy in london. i have been called scrooge and all kinds of things because i'm not big on the president's christmas tree, a little too much for me. nevertheless. we're not getting into the
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tensile conversation, believe you me. >> ok, try to hold back. guy: talk about training. how are? you holding onto people less about hiring, but how are you holding onto people right now? >> the thing is, any ceo would say this, but i think people like working at snap-on. we have increased wages almost every year except the depths of the recession. alix: hey, nick, i have to interrupt you. we will come back to you. president biden is about to speak on the jobs report. pres. biden: in these times, bipartisan cooperation is worth recognition. i want to thank a substantial bipartisan vote in the senate, sending this bill to my desk today to avoid a disruption to operations. i congress to use the time this
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bill provides to work towards a bipartisan agreement on a full year funding bill that makes the needed investments in our economy and our people, from public else -- health, education, to national security. now for today's news, every year, december rings the joys of the holiday season and gives us an opportunity to reflect on the year gone by, to look ahead, and to begin to imagine a new year to come. this year we can reflect on an extraordinary bit of progress. our economy is markedly stronger than it was a year ago. and today, the incredible news that our unemployment rate has fallen to 4.2%. at this point in the year, we're looking at the sharpest one-year decline in unemployment ever. simply put, america is back to work. and our jobs recovery is going very strong. today sister drop in unemployment rate includes dramatic improvements that workers have often seen higher wages and higher levels of unemployment -- excuse me, they
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are receiving higher wages. and the rate of black and hispanic unemployment has also dropped sharply. that is not just jobs that are up. wages are up, especially for hard-working americans often ignored in the past come in the past recoveries workers in transportation and warehouses have seen their wages go up approximately 10% this year. workers in the and restaurants have seen their wages go up 13% this year. and thanks to the american rescue plan, they deliver significant tax cuts to families made, tax cuts for middle-class families meaning that americans, on average, have more in their pockets today than they did each month since we have been in office and they did last year after accounting for inflation. let me repeat that. even after accounting for rising inflation -- rising prices, the typical american family has more money in their pockets and they
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did last year. in fact, we're the only leading economy in the world where household income and the economy as a whole are stronger than they were before the pandemic. applications for new small businesses are up 30% compared to before the pandemic. thanks to the american rescue plan, we are cutting child poverty in america by more than 40%. and millions of children who spent last christmas and poverty will not bear that burden this holiday season. today's news means the unemployment rate has now followed by more than two percentage points since i took office. that is the fastest decline in a single year on record. it is about three times faster than any other president in their first year in office here at the number of people claiming unemployment has fallen from 18 million when i took office to 2 million this week, another record drop. we have also learned today that in november, 235,000 jobs were created in the private sector.
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and when recalibrating, the last two months, they found a job growth over the prior two months, september and october, actually created 82,000 more jobs than previously reported. which means that we have averaged nearly 400 thousand new jobs a month over the last three months, a solid pace. all told, in the first 10 full months of my administration, the economy has created 6 million jobs, a record for a new president. this is a significant improvement from when i took office in january, a sign that we are on the right track. because of the extraordinary strides we have made, we can look forward to a brighter, happier new year ahead, mind you, but i also know that despite this progress, families are anxious, anxious about covid, anxious about the cost-of-living, and the economy more broadly. they are still uncertain. i want you to know i hear you.
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it is not enough to know that we are making progress, you need to see it and feel it in your own lives and around the kitchen table, and your checkbooks. and that is why every day my team and i are working to deliver consistent, determined, focus access to overcome the challenges we still face. chief among those challenges is covid-19. yesterday i laid out key actions we're going to take this winter to fight this virus to protect one another, to protect our economy and our economic recovery. they include, number one, expanding our nationwide booster campaign. more outreach, more appointments, more hours. i was thrilled to see that yesterday we had more vaccine shots administer than any day in the past six months. number two, hundreds of new family vaccination clinics to make it easier for children, parents, the whole family to get vaccinated in one place, new
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policies to keep children in school instead of quarantining them at home when someone in the class comes down with covid, if they do. thirdly, making a free at-home test more available than ever before, by having them covered by a private health insurance plans come of the availability of community health centers and other sites for the uninsured will be the alternative, as well. if you have insurance, they will cover these tests. and if you do not have insurance, we have facilities you can attend to get these tests. increasing our search response teams, they are made up of doctors and nurses and medical staff who go on to communities with rising cases and provide the needed staff for overrun hospitals, for their emergency rooms, intensive care units, and get help for them as they need it. we are about tripling the number of those search teams.
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accelerating our efforts to vaccinate the rest of the world and strengthening international travel rules, were people coming into the united states, this is a plan all americans can rally behind in my view. we are also addressing another concern for families, prices. just about every country is grappling with high prices right now as they fight the pandemic. as the world economy continues to come back to life, the more price pressures are going to ease as things begin to move. we are not sitting around waiting. in the meantime, i have used every tool available to adjust price increases, and it is beginning to work. take gasoline and gas prices. last week i announced the largest ever release from the united states strategic petroleum reserve to increase the supply of oil and help bring down prices. i brought together other countries, india, japan,
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republic of korea, united kingdom, who all agreed to join me in releasing additional oil from their reserves, and china may very well do more, as well. they have not done it yet. this worldwide effort we are leading will not solve the problem of high gas prices overnight. but over the last month, likely due in part to the participation of this action, we have seen oil and gas prices on the wholesale market come down significantly. since the end of october, the average weekly price of gasoline on the wholesale market, would you sell to the gas stations, has fallen around 10%. and that decline has picked up in recent days. that is a drop of about 25 cents per gallon. these savings are beginning to reach americans and should pick up for the weeks ahead. and it can't happen fast enough. i have asked the federal trade
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commission to consider whether potentially illegal and anticompetitive behavior in the oil and gas industry is causing higher prices for consumers when they do not need to be that high because of the wholesale price is coming down so much. so we can ensure the american people are paying a fair price for gas. at this time of the year, another concern facing american families is about being able to find what you need during the holidays, whether it is gifts or groceries. as i laid out earlier in the week, because of my actions, the actions my administration has taken, in partnership with private business and labor, retailers at grocery stores, freight movers and railroads, these shelves of our stores are going to be well-stocked. we have sped up operations at our ports. for example, the port of los angeles and long beach, the two busiest ports in america, over
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the last month, the number of containers left sitting on the docks for over eight days is down by 40%. i have said that before and people probably said, well, what does that mean? down 40%, well, it means that the products are no longer sitting on the docks, getting off the docks and into trains and trucks come into vehicles to get them to the store shelves. this is an incredible success story. on monday, i convened a group of ceo's from some of the largest retailers and grocery stores, as well as leading companies that work with small businesses across the country, and they reported that their investments are up, shelves are well-stocked, and they are ready to meet consumer demand for the holidays. i said that yesterday. i saw a couple of your stations on, we found some empty shelves. [laughs]
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their old empty shelves, but it does not matter. we will go back and take a look. the point is, the vast admit -- majority of shelves are filled, and the ceo's of not only the suppliers but of ups and fedex, which are on track to deliver more packages than ever, are saying the same thing. so we're heading into the holiday season and strong shape. again, this is about a concerted focused action. we averted this potential crisis by figuring out what needed to be fixed, and we brought together the people with the capacity to fix it or at least alleviate it. now it is time to build on the success we had this year. jobs, wages, creation of more small businesses, fixing challenges in the economy. we need to cut costs further for families. that is what my build back better plan does. it will lower the out-of-pocket costs for child care, elder care, housing, college, health
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care, prescription drugs. in fact, a new independent analysis released this week showed that my plan would mean $7,400 in tax cuts and savings for the typical family of four with two children, 17 nobel prize winners in the economics have written a letter to me affirming that this bill would reduce long-term inflationary pressures and lengthy economy. two leading rating agencies, not liberal think tanks, two leading rating agencies on wall street confirmed this month that my plan not at two inflationary pressures. what i have always proposed and am proposing now, is lower some of the most difficult costs. the difficult costs families pay every month, by asking corporations and wealthiest americans, including, for example, the 55 corporations who
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paid zero and federal income tax last year, despite generating $40 billion in profits, and i'm happy they are profitable. so paying their fair share. just requiring corporations to pay minimum 15% in taxes raises enough revenue to pay for lowering the cost of childcare for 90% of families, provides universal preschool for all three and four-year-olds in america. what is better for those corporations? is it better for them having childcare so parents can come back to work today and they have a better educated workforce in the future? or keep not paying any tax? once again, no one, no one making less than $400,000 a year will pay a penny more and federal taxes. my build back better plan is fiscally responsible, the first major piece of legislation in more than a decade that is not only fully paid for but will generate more than $100 billion
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in deficit reduction this decade. it fully covers the cost of its investments. we are making the largest corporations and richest americans pay little more in taxes. i think that is a trade-off worth making. by the way, those businesses will do better having a better educated and more available workforce. having those that have done very well pay their fair share is the right thing to do to provide breathing room for millions of american families. we have emerged from crisis by investing in ourselves throughout history. so we're going to keep at this. we're going to keep making progress for our families. i promise you that is going to happen. god bless you all, and may god protect our troops and keep everyone safe. >> mr. president, mr. president.

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