tv Bloomberg Markets Bloomberg December 3, 2021 1:30pm-2:01pm EST
are charged with involuntary manslaughter. investigators say the suspects father legally purchased the semiautomatic gun used in the shooting last week. prosecutors claim the parents actions went far beyond negligence because they were the only ones in the position to know where the weapon was and it seems to have been freely available. ethan crumbley open fire inside his high school before surrendering to police. he is being charged as an adult. germany's health minister is as more than 1%, one in 100 people there, are currently affected with the coronavirus baby he is calling on citizens to be vaccinated if they have not already. top officials worn a long battle is ahead against the pandemic with pressures set to increase on intensive care units, even as infections show signs of peaking. a conflict between two of
ethiopia's northern states have intensified with thousands of people in the region forced to flee their homes. about 21,000 displaced people arrived in camp since november 22. fighters from federal government aligned groups rated western parts of tigray they claim belongs to them. the fighting is an offshoot of the wider ethiopian civil war. russia has more than 9000 troops near the ukrainian border, according to the ukraine defense minister, who fears the probability of a large-scale escalation. the u.s. and its allies have sound of the alarms over russia's troop buildup, fearing a repeat invasion. the kremlin denies any aggressive plans at the border. global news 24 hours a day, on-air, and on bloomberg quicktake, powered by more than 2700 journalists and analysts in over 120 countries. i'm mark crumpton. this is bloomberg.
♪ amanda: i'm amanda lang. welcome to bloomberg markets. matt: i'm matt miller. we welcome our bloomberg and bnn bloomberg audiences. here are the top stories we are following for you from around the world. stocks slide, treasury's rise, as traders think the u.s. jobs report keeps the fed on track. we will discuss with william rodgers of the federal reserve bank of st. louis. didi is delisting and may be relisting. the decision to abandon the new york stock exchange and go to hong kong, putting pressure on chinese tech companies. and lamborghini's ambitions.
we will speak to the ceo, stephan winkelmann, about the path forward of electrification and supply issues hitting the industry. amanda: it may well be some of those warnings, including from apple weighing on sentiment. it is a negative day out there. it is led by the techs in the broader s&p 500, the groups that make up tech are the weakest consumer discretionary. weakness also in financials. that has been a strength in recent weeks. some of the highflying names giving back gains today, 5% moves lower out there. and then of course we are looking at meta, trading close to bear market territory. toward the end of the year, people start to feel nervous, and then you check out the yield on the 10 year at 1.36 and you wonder what is going on.
it is a bit unbelievable. we have dueling job reports in the u.s. and canada. both strong, but in this country, the labor market is long past expectations. in november, employment was up 150,000. because we are a 10th of your size, it would be like america producing 1.5 million jobs in a month. it is a huge headline number. matt: meanwhile here in the u.s., payrolls climbed just 210,000. that is so far below estimates, the miss is 50% more than the actual number. we were looking for 550,000, but the jobless rate fell to 4.2%, as employment rose by more than a million in the household survey. that last number is why investors believe, despite the payrolls miss, the fed will stay on pad with its taper. it is looking more and more like
we are at maximum employment, at least in some regions of the u.s.. you are seeing wages continue to rise. if you look at this one data point, wages were up 4.8% or so. they are not keeping up with inflation. but if you back up and look at it over the last two years, wages have risen much faster than nation. it looks like wages are increasing, we know prices are increasing, and we are adding jobs that pre-pandemic, 210,000 would have looked good. amanda: you can view this both ways. jay powell said that he would be looking at this data in terms of rethinking with the taper does and their own path. the question is, is this a dovish report? it didn't meet expectations, we didn't see the wage inflations as some feared.
here is what some of the folks we talked to on the network had to say today. >> overall a strong report. >> it is a good report across the board. >> the headline number was a little bit softer than we expected. >> a lot of that looks like seasonality. >> it is exactly the kind of report the fed wants to see. >> there is no ambiguity, the fed has a window to move. >> they have to move. >> they have to make up that lost ground. maybe that means faster hiking rates. >> the fed is now looking at raising rates into a decelerating growth backdrop. we think they'll have an awfully hard doing that. >> the fed will have to be very smart, both in what it says in its communication, and its policy limitation. amanda: joining us now for his perspective, william rodgers,
vice president for the institute of economic equity at the fed. let's start with your thoughts on what you see. the real question is what jay powell sees when he looks at the data today. does it tilt hawkish for you, or dovish? william: i will leave the answer to what chairman powell sees. i will also leave it to president bullard, who is also a frequent guest on your show, on the network, to talk about today's reports, how they would influence fomc policy. i can share with you my perspective on the report as how it fits into the mission and work of the institute for economic equity. you introduced me as the director. one of the things that my colleagues and i have been
doing, we have been following the recovery of what many would call vulnerable groups. young teenagers, people with disabilities, minorities, women in particular. why is this important? there were great calls for social justice. the pandemic raised our concerns about how equity is being distributed in our society, so there was strenuous statements about we have to do the right things to help americans, these vulnerable workers. if you focus on the household side, it shows continued healing. employers seem to have changed their mindset over who the qualified employees are, potential resources, skills that people have. people with disabilities, their employment rose for the third or second consecutive month. still a lot of work to be done,
but i found the household side of the report to be encouraging. matt: important work that you are doing. at the top level, when you look at what jim bullard and what jay powell can do with monetary policy to affect equity, what are some of the tools they can use? william: i think it is best for them to give you that direct answer, what they see their perspective is -- matt: you work with the federal reserve bank of st. louis. what can they do to help fix the problems that we continue to see in terms of equality in america? william: what we are focusing on here at the institute are the structural barriers that people face, whether that is having
access to homeownership, access to financial services. as a labor economist, i spend a lot of time focusing on skills and education and training that people need. we also have a clear mandate from our bank to also focus on discrimination, the unfair treatment that people in the labor market face. that is where our institute, which has been running since last spring, where we are putting a lot of our effort and energy. being a voice for people on main street, trying to do that in a credible way, in a way that is positive but also moves us forward. amanda: we hear about all of the unfilled jobs. there seems to be a disconnect between people who need work and employees looking. is this a time when equity is well served, or does it fall by the wayside? i just need a body, i will fill
it anyway i can. does equity fall back to a second seat in that? william: equity always has to be a primary concern. equity is not about equality. equity is providing the resources and training, opportunity that will help move people, let's say, what my colleagues call asset limited income employed. the share of households in your community that don't have the income to make ends meet. there is no one tool. there are macro tools and also fiscal tools that we have been seeing implemented by this administration, this congress. if you do them together, we stand a chance to have prosperity broadly spread. they also have to be sustainable
hathaway's charlie monger says that he thinks markets are wildly overvalued in places and the current environment is even crazier than the .com boom of the 1990's. you could have said that in 1999, and you would be right, amazon is overvalued. but if we have the chart, long-term chart of amazon. that boom and bust now looks like a flat line relative to what the stock has done since. what do you do with this information? getting out of the market is often the worst thing you can do. matt: this is pretty amazing. i didn't expect it to be that pronounced. amazon, though maybe a different story from other companies that we would have been talking about in 1999 that no longer exist. amanda: pets.com. matt: in any case, it is
fascinating to hear from charlie monger. he pooh-poohs cryptocurrencies as well. it is possible that people from a certain air i will just never grasp new trends. he is only 97, but cryptos could last longer than charlie monger. just interesting to get his take on equity valuations because he has such a long-term view, but a lot of the things that are here now to stay he may not completely cotton to. amanda: i feel like there is a bit of dissing their that i'm bristling at. matt: i love charlie monger. amanda: of course you do, you love your grandpa, too. but fundamentals matter. if you don't know why you are valuating something, we are in trouble territory. you know what i hope?
that charlie monger is around long enough. matt: how many times could you have looked at amazon and said, they don't make any money at all? over the past 20 years, quite often. amanda: it is time for stock of the hour and it is an important one. if it were a boxing match, didi's fight against global stocks would have been stopped. kriti gupta has more. tell us what is going on. kriti: chinese tech companies getting delisted from the new york stock exchange, relisting in hong kong following months of regulatory pressure. didi dropping 41% in intraday trading. 54% decline in the back half of the year. that discount will get wider when you compare it to what u.s. tech is doing. more and more companies could be abandoning their listing.
matt: as consumers try to cope with inflation and freak out about omicron, demand for the iphone 13 is slowing. that is trouble for apple, but does the same kind of trouble affect much more expensive products? joining us to talk about luxury and performance cars is the president and ceo of lamborghini , stephan winkelmann. as we celebrate the fourth anniversary of your suv, and
look to the future of aventador, how does the man look for you? stephan: we are on an incredible run right now for more than a year and it is not stopping. we have an order bank which is one year out. if you order a car today, you'll get it in december 2022. it is a very good situation for lamborghini. matt: is it possible you can jump up production a little bit? even though your customers don't usually walk into a store and drive off the same day, they are probably a little frustrated having to wait a whole year to get their huracan. stephan: we increased production twice already in 2021, and we will see what we can do next year, but we always have to produce less demand.
it is important that we are not running for peaks. this is a very positive situation for lamborghini, but the market is very high. we don't know how long this will last. we are looking forward, never to put too much cars into the market. amanda: you said recently between percent ebitda margin. how much of that is passing on higher cost to your customers? stephan: everything that we do is high investment. our cars are packed with the newest technology. it is clear with hybridization, some costs are on top, but this is not only an issue affecting lamborghini, but all across the automotive market. i have to say, when we launched
this year certain cars, which are in the highest demand, it is a car that will cost more than the future hybrids of the same. this is something which the customers really appreciate. they see what we are giving them is worth it big time. matt: that is interesting. do you think a customer is willing to pay more for a naturally aspirated v12 right now than a hybrid? do they want to lock in those gas powered cart before they are illegal? stephan: they will not be illegal, but what is clear, there is a shift also for us into hybridization. if you are producing lots of different kinds, this is creating a rush on some of those cars, but there is still time.
we have still three years to go with internal combustion engine cars. we will hybridize our lineup starting with the aventador, v12, plug-in hybrid at the beginning of 2023. we have enough time. amanda: we are watching this variant, the covid pandemic fight closely. numbers in europe have been bad anyway, creeping up in north america. it feels like the luxury market has been a bit immune, pardon the pun, from the pandemic. does that continue or is that a worry for you? stephan: it is continuing. at the time, we are not affected. it is not only our customers, that it's important that they have the opportunity to buy, but also the supply chain, that we keep running the business. if the pandemic is growing all
around the world and we have local shutdowns, this can also affect the supply chain of lamborghini. so far this is not happening. we are confidently positive that we can continue, at least another year, with the pace of today. we are not seeing any drop in the demand. the contrary is the case. every month, we are selling more than we can deliver. amanda: great to have you with us. lamborghini ceo and chair, stephan winkelmann. a check on the markets, we've been watching declines accelerate as we go on, especially in the tech heavy nasdaq. for matt miller, i'm amanda lang. . stay with us.
mark: the latest jobs report offered a mixed picture. president biden says the economy continues a strong rebound from the pandemic. >> looking at the sharpest recovery ever. america is back to work. mark: only 210,000 jobs were created in november, less than half of the estimate. the government survey of employers showed hiring slowed across industries. the households surveyed showed employment surged by 1.1 million. the president said he is coordinating allies in europe to make it very difficult for vladimir putin to continue -- consider attacking ukraine. russian officials are planning a call between the leaders in the