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tv   Bloomberg Markets European Close  Bloomberg  December 3, 2021 11:00am-12:00pm EST

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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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>> first of all, your voice sounds a little different. are you ok? pres. biden: i am ok. i have had a covid test, test every day. i have a one and a half euros grandson who had a cold and likes to kiss his pop. anyway, it is just a cold. >> it seems like the administration is starting to soften some of the language, an op-ed where you talked about covid like, we are going to beat this back. are you no longer going to shut it down? pres. biden: we have to beat it back before we shut it down. we have to shut it down worldwide. in the united states of america, we are doing everything that needs to be done to take care of the american people within our borders. look at what has happened. we are starting to make some real progress and we find out there is another strain. and the idea that you can build
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a well america -- around america to keep any covid from around the world out is not fair. besides, that is one of the reasons why -- i know we get criticized, i get criticized for not doing more for the world, we have done more for the world in providing vaccines available and held they and any nation, every other nation in the world combined. in addition to that, we have also been working around the clock. remember, i suggested we suspend the patents, let everybody be able to have access to this so they can make the vaccine in their own countries. thirdly, southern africa. for example, south africa has all the vaccines they need. they do not want any more vaccines. one of the things i have considered is, how can we help them deal with the issue of, as i said before, the biggest challenge we had at the
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beginning of this administration, in my view, was not getting the vaccines produced, although that was not easy, and i have got to give president trump, early on, went out and did the research to try to get the vaccines, but logistically, logistically, getting the vaccine from a container that gets delivered to a hospital, to a state, and getting it in someone's arms, that is a very difficult thing. and we did it better than anybody in the world. >> given that there are now multiple cases of omicron here in the u.s., are you considering requiring vaccines for domestic travel or any other new measures for domestic travel? pres. biden: the measures that i announced yesterday are, we believe, sufficient to deal with
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the proper medical precautions to deal with the spread of this new variant. we are doing, as you know, at nih as well as among the manufacturers, and there is a lot of research to see the extent of how quickly it spreads, how deadly it is, etc., etc. but we do require with travel, will continue require the people have masks on. masks on, and in public places and in federal buildings. but i do not come at this point -- i think i know a fair amount about this issue, but i am not a scientist. so i continue to rely on the scientist. right now, they say we do not have to move beyond what we did yesterday. >> a follow-up on the science -- >> what is happening on ukraine,
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the border of ukraine and russia, and what are you going to do about it? pres. biden: i have been in constant contact with our allies in europe, with the ukrainians, my secretary of state and have engaged extensively, and what i am doing is putting together what i believe to be the most comprehensive and meaningful set of initiatives to make it very, very difficult for mr. putin to go ahead and do what people are worried he may do. that is in play right now. >> are you going to talk to prudence soon? guy: you have been listening to the president speaking at the
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white house, and additionally addressing the payroll number for november, talking about it being an incredible number. talked about the drop in unemployment being incredible. but it was pretty clear that the press corps wanted to move on to talk a little bit about what is happening with covid. i think we are all relieved that the president only has a cold and he is tested, as we all know, regularly. blaming his grandson maybe for that cold. but we wish him well with that. talking a little bit about what is happening in terms of oil prices coming down, that sort of thing being meaningful, but basically talking about the idea that he knows it is tough out there and he will continue to provide support for the american people. he certainly is trying to push back on the idea that anything more needs to be done in terms of pushing back covid at this stage, but he is certainly focusing on testing. he talked about not wanting to build a wall around america. that will come as a huge relief to the travel industry.
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alix: and challenging reporters to go back to where they took pictures of empty shelves a few days ago and take them again, promising the supply will be there. i do not care what you say, that single shot of biden with the tree behind him is beautiful. guy: ok. i think we will be ok with that. the president certainly sounded terrible. we hope that he can get that cold sorted out before christmas and the festive season. alix: true story. let's get to market reaction. during biden's speech, not attributing it to that, but we have seen a risk off feel so to permeate the market. the s&p rolling over lows of the session, led by check. a big part of that will be facebook down by 2% now, but in a bear market, down 20% from september highs. nasdaq now down over 2%, around the lows of the session. a risk off feel and the equity market leading to some buying in the treasury market, particularly the back end. the two-year is pretty much
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flat. we were up by about three basis points. due to that, we are seeing the 2/10 spread the flattest it has been. we usually seem to be fading the close, feels like we're going to be fading the whole day. guy: do we buy into the end of the week? the selling is certainly aggressive, particularly in tech. i want to talk about remarks the president made, talking about the fact that wages are taking up. that is particularly at the bottom end of the labor scale. nick pinchuk, we thank him for his patience, snap-on ceo. the president talked about rising wages. let's talk about what that means for american businesses. a much more are you having to pay people right now? >> i do not think we are having to pay more. as i said, we keep increasing.
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what the president said is right, that people have more buying power, including snap-on people, much more buying power than a year ago and much more than five or six years ago. so we are able to keep the people and, in fact, as we move forward, maybe wages will have to go up, but we are not seeing the pressure right now. that is not a first-order problem for us. you asked how we are able to keep our people, and we are. first of all, we did not lay them off, so we had that stability. another point, when i was in the asia, i spent a couple hours with mother teresa and she told me that beggars would come up to her and give her coins of small value, and she said it was because it every human wants to believe they have pride and dignity and relevance. and we treat our workers, wherever they were, in the factory the warehouse, as if they are important. we tell them that during this covid, one of the things that came out of the covid is that they were at their post
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preserving and keeping our society from disfigured desk disintegrating why we defeated covid. they are american heroes of our time. we sent many of our salaried workers home, but i third of them, including myself, were in the office all the time. because we cannot see a difference between ourselves and the factory workers and the warehouse workers and the other people. and the technicians that we serve. that is important, and it has worked for us. a lot of people say, ok, things are decelerating, and people on the street will say that growth is decelerating, but when they compare it to maybe the second quarter of last year during covid, but do you take the right comparison over 2019, pre-pandemic levels, we are up 15%. and it is because we got out of the covid at full strength with our people. alix: that is a great story.
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and thanks so much for sticking around. president biden was also talking about how those empty shelves were going to be plentiful, and we did see in the manufacturing date of this week some indication that the supply chain issues are easing. i am wondering where the sticky bottlenecks are still there for you? >> the bottlenecks are multiple. there are a bunch of bottlenecks. in chips, steel, and a number of things in terms of transportation and so on. i do not think it is soft, i think it is flattening out. we like to say we are resistant, not immune to it. we make in the markets were resell, so we have short supply chains. we have a huge product lines, so when things are not available, we can shift to sell other things. and when you do not buy that much you can bind the stock market, so we are able to imagine -- able to manage of bunch of this stuff. most of this stuff though, i think a lot of people who are in
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economics try to process this through the basis of other supply-chain problems or other inflationary periods come of it almost all of this has to do with the sort of micro feedback loop of interruptions that are occurring because of the covid. i talked to my managing director in shanghai today, five cases in there shutting down the city. he has been in quarantine five times and never had the virus. so those things are creating this kind of inflationary pressure and supply chain problem. when the covid gets under control and we are able to live through it, the net goes away. alix: you are echoing what janet yellen has been saying. thanks for sticking around. nick pinchuk, snap-on ceo, thank you so much for your time today. coming up, we will talk more about covid and how it interacts with central bank policy. a policymaker said the variant
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may delay a rate rise. we will break that down with kallum pickering, berenberg's senior economist, coming up next. is is bloomberg. ♪
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guy: 15 minutes to the european. let's check in as we had towards the end of the day and week. similar to the united states. equities under pressure. the stoxx 600, 461, down by ron .8%. i am going to come back to this in a second, the pound. brent crude rising, up 2.71% right now. one of the factors is what is going on in terms of opec. but another factor worth bearing
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in mind is what is going on with the dollar. what we're seeing at the moment is equities down, dollar up. that trend seems to be firming up at the moment. we are going into really critical calls with the ecb and the bank of england in the fed, and looking at volatility when it comes to the foreign exchange markets. a chunky move today, down by around .7%. part of that gets down to what i described, what is happening in the united states, the payroll number, what we are seeing in equities. the other part is what is happening with the bank of england. michael saunders, a hawk, the most hawkish policymaker at the bank of england, delivering a speech a little earlier on, talking about the idea that maybe there could be advantages and they waiting now for the data on how the omicron variant and delta may impact the economy
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before thinking about raising interest rates. take a listen. >> at present, given the new omicron covid variant detected quite recently, there could be advantages in waiting to see the possible effects on public health outcomes and on the economy. but continued delay also could be costly. guy: that was a little bit earlier on. he voted for a hike last time around. as a result of those comments and of what we have from michael saunders today, the market and traders have started to pay it back the idea that we do get a december hike from the bank of england, february looking increasingly likely. kallum pickering from berenberg is joining us to talk about this. will the bank of england start hiking rates in december? >> not sure. before he mentioned omicron, he
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said the risk of a more consistent inflation seemed to have increased, and it is likely that the risks are higher than november. so if over the next two weeks, we find that it looks as if the u.k. can get through this potential wave without significant restrictions, then i think given monetary politics, there is an argument for the bank of england to hike rakes while there is still a window of opportunity to control inflation without having to overreact to it if that materializes a year or two down the line. alix: do we know yet if the markets and economists are more worried about the omicron being a growth event or inflation event? >> that is very hard to say. it will be difficult to judge at
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this stage. depends on what the restrictions are looking like. one sticky thing, the restrictions in the most recent wave, winter of last year, hit domestic services and consumer activity more than production and construction here at so you could reason from that that the supply side of the global economy would be less affected. the problem is, if you look to asia, countries like china, zero covid policies, with higher covid rates, you get more port restrictions. in consumers figure out that we can buy lots of stuff online even with lockdown. guy: doesn't matter if the bank hikes in december or in february -- does it matter? >> yes, potentially. the bank of england has been surprised by the extent of the inflation surge over the year. there is every reason to believe that when we break down the supply chain issues that this
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trend may persist. hence, they need to take a window of opportunity to start modest, gradual, and early rate hikes. if it moves too late, if we have two or three more months of inflation upside surprises and the wage data starts to suppress to the upside and inflation expectations creep up, that could trend it -- trigger panic buying paired we want to avoid it. we do not want central banks to see that they missed the target and then need to create some unemployment to bring inflation down. if you move early and gradually, you can avoid that situation. alix: is the market pricing any of that in? at least in the u.s., seems we are pricing in condensed tapering and then a condensed rate height cycle. feels like over in the u.k. we are pricing in one rate hike, and then what? >> if you look out five years, it roughly captures what the
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market expects, expecting a good 110 basis point hikes over the next two years, than stabilizes, then starts to rollover. so if you look at the market pricing in the bank of england and going through an accelerated period of rate hikes into next year and the 2023, then having to cut, it looks like a policy mistake that i think the bank of england would want to avoid. if omicron will not be an economic risk, it is better off hiking early and setting the expectation for markets. guy: what about the ecb, christine lagarde making it clear that she sees no rate hikes in 2022. however, while we do not have the same inflationary impulses within the euro zone as in the u.k. and the united states, is there any possibility that christine lagarde and the ecb and possibly a new member of the boone to spank -- bundesbak may
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decide it is needed? >> i think a rate height this year and the -- rate hike next year and the eurozone is highly unlikely. the eurozone had a much more pronounced disinflation in the upswing, so inflation expectation. look at the german five-year, still below 2%. so even if we got real upside surprises next year on inflation in the euro zone, you can only imagine a situation for a year you have breakevens above 2%. that does not seem like the sort of development for hiking interest rates. it is possible they do some fine tuning and have to accelerate the pace, but the ecb would really need to be afraid by inflation of elements. the big difference, the u.s., there is a human excess demand
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to. in eurozone, demand is strong but it is mainly supply driven inflation. alix: such a good point and speaks to how we dealt with unemployment during covid. thanks a lot. kallum pickering, berenberg senior economist, thank you very much. this is bloomberg. ♪
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guy: just under five minutes until the end of the session in europe. certainly rolling over, largely driven by market action in the united states you'd wall street -- the nasdaq down hard. the ftse 100 outperforming today, and the reason is brent has bounced back, crude prices are higher. bp doing well. she'll strong -- shell strong.
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london is outperforming. dad's around .9% -- dax down around .9%. software, the subject of the potential private equity takeover. there is a business specializing in tech takeovers, on the move. there is also a takeover by advent having a significant impact. looks like it will not happen. astrazeneca potentially getting in the way. the closes coming up next. we will also talk about what is happening with covid here in europe. okta sarah pitt from the university of brighton will be joining us next. this is bloomberg. ♪
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guy: wrapping up the session in europe. wrapping up the week.
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what a week it has been. today as you can see, a sea of red across the continent. not as much as we have seen in the united states. as a result of which may be we are faring better. the cac 40 down .7%. the london market, which was described this week as drastic park, is doing better -- as jurassic park, is doing a bit better. we are talking about the hydrocarbon industry, we are talking about the mining industry. brent around 2.5%. london is outperforming. it has been a turbulent week. let me give you 90 of what it looks like. this is last five days. we are down but only just in terms of the stoxx 600 commonly only down round .5%. the bottom end of the range.
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462 is where we are trading. we have a gap lower in the back end of last week. we trade in this new tighter range, trying to figure out what the course of action should be. we are coming into the end of the day at 462. it was not that long ago we were trading at 490. let me give you the sector picture. i mentioned energy. look at the outperformance we are seeing from energy this week. up over 3%. opec kept the meeting opened and left the optionality to potentially reduce the amount of supply coming onto the market. energy up strongly. it is interesting in terms of where the losses have come through. staples down on the telecom sector is down, health care down 1.72%. it has been the energy stocks that have done well.
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drastic park maybe not -- jurassic park maybe not a bad place to be. there interesting tales out there. swedish orphan was about to be taken overvalued advent. -- by astrazeneca -- about to be taken over by astrazeneca. that takeover is not going to happen. the stock market reacting violently. off 24%. dazzled aviation, we are focus on the fast jet story. emmanuel macron has secured a deal that dassault will provide the uae with 80 jets. the stop responding nicely to that. then software ag, the subject of a series of takeover offers from private equity.
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the real question is will the foundation, which i think earns around 30%, be willing to see this happen, be willing to see that takeover take place? the market is liking the idea of that. we are up 9% on the day. alix: tgif. it has been quite a week. in omicron case from a recent traveler. we are also seeing rising case counts as well. we got some new data out of south africa that says 68% of coronavirus hospital emissions were people under 40. u.k. hospitalizations are over 7000. we are joined by dr. sarah pitt, university of brighton lecturer in microbiology. thank you for joining us on set. what are we learning about omicron over last week? the data come the 68% of those
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in hospitals, 11% of those admitted were under two years old, what have you learned? sarah: we know it is very infectious, even more infectious than the delta variant. we also know it's behavior in terms of the type of disease it causes, the people it infects, and the people who will most likely be badly affected by the virus is the same as we have seen in all of the previous versions of the coronavirus, particularly with delta we saw that the age profile of people who are seriously affected ships down -- shifts down into children. it looks like the omicron variant is doing something similar to that. guy: that is a high number of children. how much of a cause for concern is that? up until now this has been something that has affected older age groups.
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if we start seeing younger age groups being affected, that could significantly change behavior. sarah: yes it could. that is very concerning. not only is a very bad for the children. they could be very sick. the risk of lung covid, we do not know the long-term consequences in anybody, but if a child gets covid and is severely affected for a long time, well into adult hood, that will not be very good. we know how infectious diseases spread easily among young children. that could spread from the children to their parents and potentially their grandparents and set up another global wave. alix: what i found so interesting, we have a relatively high vaccination rate. i am still seeing cases climb. does that tell us more about the variant or does that tell us more about the waning efficacy
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of the first shot? sarah: it is a little bit of both. what we know with the delta variant, even if you have two doses of the vaccine or you have the johnson & johnson vaccine that was one dose, but all of the others it was two doses, you can still pick up the virus, you can still be infectious to other people. there is a 50% chance that if you picked up the virus you have symptoms yourself. people have milder illness, but also can move about and transmit it to other people. that is the reason the delta is spreading is because people are going out and about with it, not necessarily knowing they are infecting other people. guy: should we cancel christmas? sarah: you cannot cancel christmas. christmas is on december 25 no matter what happens.
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i did not that we should be having large christmas gatherings. guy: i was at an event where people were not wearing masks, they were hugging each other, talking to the impact those kinds of events could have given the backdrop on the number of cases we have. sarah: given that some of those people in the room potentially had covid, did not know they have it because it is spreading to all of the other people, if you're in an enclosed space and are not wearing masks in your coming into very close contact with people who are not your normal social contacts but your family, than the chances of the virus spreading around in an event like that are much increased, and you're actually creating a risk that it could happen. in terms of christmas parties, what i would recommend is having much smaller gatherings in a space where there is good ventilation. christmas jumpers just to keep
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warm and try to keep your distance from people who are not your normal social contacts. try not to get too close to them. alix: are all of those people in the room -- if all of the people in the room guy was in got their boosters, would you be saying something different? sarah: the boosters seem to be very good and seemed to give very good protection. a study at the university of southampton was the boosters seem to work against not only delta but also the beta and gamma versions, those were the ones we were quite worried about early in the year. one first arose in south africa in one first in brazil. we saw the vaccines were more resistant against those variants then alpha for delta. if the boosters work against the beta and the gamma it is likely
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it will work well against omicron as well. this people have not had their booster dose yet. even if you had the booster dose yesterday, it will take you two or three weeks for your immune system to know if you had that dose and create a response. if they all had their boosters several weeks ago that might be better. chances are they have not. guy: i had mine last week. we are a couple of weeks apart. in terms of how quickly omicron could become the dominant strain, what are we learning from south africa, what did we learn from the pickup in delta. if it is 10% more infectious in delta what is the timeline we are working with? sarah: delta has been very stable. delta has cornered the market across the world. those delta have arisen.
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i've been asked to comment on that four or five times and they have never taken off. what we do not know is whether omicron is going to be more infectious and be able to be more stable and more lasting. it is too early to tell whether that will happen. the information coming out of south africa might do, but they were saying they got over the delta wave. it might not be a straight fight between delta and omicron in south africa, where we have that ability and europe and will wait to see what happens. guy: thank you very much for setting us up. a lot of christmas parties being canceled on the advice you are giving today. dr. sarah pitt, university of brighton, prince for lecture in microbiology, thank you ray much. we have seen a down day for european stocks.
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a little bit higher for the ftse 100, but nevertheless outperformance coming largely as a result of higher oil prices we have seen this afternoon. the dax and the cac 40 off their lows but still negative into the end of the day. the dax negative on the week. i have to say i do own a christmas jumper. i've been called scrooge and other things as result of my views on only decorating christmas trees, but i do own a christmas jumper. i have been worst to wear in the past. it is a rare occurrence. alix: i would pay money for a picture of that in front of a tree with tinsel and lots of lights. guy: never going to happen. alix: a girl can dream. we will talk about his sweaters and his hate of tinsel on "the cable." you can listen to us on db digital radio in london and you can now catch us on spotify and apple. it is now podcast.
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great conversations about all of the market action. coming up right now, our next guest is boarding a cold winter could be catastrophic for the european gas market. guy is already paying more money in his energy bills. this is bloomberg. ♪
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ritika: you're looking at a live shot of the principal room. coming up, mark mcclendon, former fda commissioner. that is at 12:30 in new york. this is bloomberg. guy: let's talk about what is happening with carbon prices. european carbon prices rising up above 80 euros for the first time ever. the cost of polluting continues to skyrocket. look at the increase we have seen this year. the cost of polluting in europe
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has gone through the roof. does it continue to rise? let's join bloomberg's rachel morrison to get her take. give us a sense of what is driving this? the forces behind it and whether there is forces are showing any signs of abating? rachel all and it is a key psychological level to reach 80 euros. we started the year around 30 euros. the increase has been so quick. that is what the carbon trading system is designed to do. it is designed to make polluting expensive to incentivize people to find cleaner ways of doing ends. what is actually happening at the moment is the rally in gas prices is making coal or economic and driving up the prices of carbon. while it may not be having a short-term impact on emissions, what is really interesting is
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that for some policymakers, this speed might be too quick. it might be causing more problems to have a carbon price that is moving at this pace. it really test some of the promises that were made at cop saying we wanted to carbonized. you have some policymakers thing we want to d carbonized but maybe not this quickly. traders in the market only see the spike going one way. earlier in the year we had predictions of 100 euros soon. people still think that could happen in a couple of days and weeks. it looks like the price is going to continue to rise. guy: -- alix: you also need to provide energy to households and businesses. thanks a lot. bloomberg's rachel morrison joining us. we want to get a perspective from a company in the middle of the energy story.
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inventories are unusually low for this time of year. if it gets cold europe could be in trouble. during us is marco alvera, ceo. good to see you on set. you said if this is a cold winter we are in real trouble. what does real trouble look like? marco: real trouble means because the storage is not full we could have a situation because of heating demand the extra demand is only barely covered and you need to look at beginning to reduce some of the big industrial customers to leave the heating which is a most delicate part intact. guy: good afternoon. what you think the weather forecast will look like in january? i am sure you are looking at this very carefully. you talk about this risk scenario. what is the weather telling you about the likelihood of it coming true?
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marco: it is early to make a call on the january weather, and i'm not a weather person, but january weather is important because how much gas is taken out of storage in january determines how much gas we can take out of storage in february, which is a critical log. the storage performance means we need to have pressure inside the storage to take gas out. if we take the pressure out in january that means there's less pressure to take more gas out in february. alix: what are the talks in europe and what is your involvement in increasing storage capability and thereby creating a strategic petroleum reserve like we had for oil? marco: this is not a crisis late to the energy transition. this is a crisis because china is beginning to build new gas demand. it is trading extra demand of world is not ready for. this is a crisis of storage. if china had europe -- if china
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and europe had more storage we could avoid competing for ships. guy: how short of storage are we? marco: the storage infrastructure is there. it needs to be filled up. if there could be a concentrated effort, gas is a much more fragile commodity, much more subject to the weather, much more subject to the winter. when the summer comes nobody needs a lot of gas. it is also a good business opportunity to store it when it is cheap in the summer and have an underground for when we need it. guy: why would -- alix: why would that money be better spent doing that than investing in more wind and solar? if we had storage for solar and wind in the same capacity for hydrocarbons, we would not be in as bad of a spot. marco: we will absolutely invest in more solar and wind, but in
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the winter in europe you do not have a lot of solar it in the u.k. you do not have line. where gas comes in today and where hydrogen comes in and the future is when we need bulk energy stored in the summer we can produce in the winter. this applies to natural gas today. it will apply to solar and wind tomorrow that will be stored in the form of hydrogen. guy: you will invest around 5 billion euros in storage. is that more storage, is that better storage? where are those euros going in terms of how you will use them? marco: we will be investing in more gas storage and better storage, that is the storage of the future. this will help smooth out the tension. what is critical as europe builds increased storage capacity in china does the same so we stop having these high energy rises that have an adverse effect on the whole energy transition. alix: talk about what you mentioned of having natural gas storage converted to hydrogen
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storage? what does that do? marco: we store gas and depleted gas fields. they empty themselves. we put gas there in the summer and take it out in the winter. massive caverns underground. we have demonstrated and announced this monday that we tested pure hydrogen storage in the gas fields, which means the cost of the transition has suddenly come down for everyone, as we have demonstrated we can use these massive fields for the future of energy, which is hydrogen storage. guy: can you store natural gas and hydrogen at the same time or delayed to be separated? marco: they are better separated. for the use you want them separated. you could mix them from a geological perspective, but we are better off doing is having bulk caverns dedicated to hydrogen or to methane, or bio
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methane. alix: can europe we are seeing a lot of money pumped into the green energy transition starting next year. i wonder the tops you are having with governments, other companies in terms of spending a lot of cash and how that will work. marco: there is a lot of recovery money being put underground. 2022 will be the year when the rules are set in terms of what we mean by hydrogen, how the standards are defined and how the incentives are crafted. the real money will be spent in 2023. this is not just a european thing. it is increasingly an american thing. i was in d.c. yesterday. there's a lot of infrastructure money that will be spent on the green transition for the simple reason we can make solar energy a lot steeper -- it is not only necessary thing for the planet but a very good business investment. guy: a lot of people want to
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invest in this space. a lot of people are interested in what you do. mcquarrie and others would like to take a stake. are there tops ongoing? are you looking to coinvest? how do you think you will utilize some of the storage opportunities that exist to their full potential? can you do that on your own or you think you will do that with others? marco: we are always open to partnerships, and to find the right partners for the right projects is the way to accelerate. i think the energy transition needs $150 trillion of investment. we need to scale up the investment amounts from the one trillion we are investing today and energy to $5 trillion. that means a lot of new funds, a lot of new companies, a lot of new ideas. i'm in favor of finding the right partner for the right type of investments. alix: is jobs day in the u.s.. from your perspective, there
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still supply chain issues. what is your biggest bottleneck? marco: i think the bottleneck will be people. as we think about ramping up from $1 million to $5 trillion, a lot of people need to come into this industry. it is a great opportunity for economies, great opportunity for developing economies. we will land on an entry system cheaper than today and more reliable but the bottleneck will be human talent. alix: pray to talk to you. marco alvera, snam ceo. the nasdaq rolling over. the dow and s&p trying to get off the lows of the session but struggling to do so as the safety trade winds up coming in to the market. you are looking at the 10 year, yields down six basis points. you are seeing buying in in the front end. using a flatter curve, but it is a serious risk on day picking up a little bit of steam.
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guy: heavily risk off, particular in u.s. tech. a note that south african covid cases quadrupling in four days. alix: that will not help market sentiment at all. coming up, senator pat toomey of pennsylvania will be joining "balance of power" with david westin but you can still get more of me and guy. that is the best part. guy: you have to be in the u.k. or tune into dav digital radio or go to spotify and itunes. we are now available as a podcast. have a great weekend. we look forward to doing more of this next week. enjoy the weekend. 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." we begin to date a very special guest. joining us in are new york's studio's republican senator pat toomey of pennsylvania, the ranking member of the banking, housing, and urban affairs committee. thanks for being with us. it is a treat. let start with the big news. the jobs numbers which people are just baffled by. the top line number was way below what people expected, but the participation rate is up at the end of limit rate is down. what you make of what it tells us about the economy? sen. toomey: i have not had a chance to do a deep dive, but the research i have done seems to suggest we should not put too much stock in any one number.

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