tv Bloomberg Markets Americas Bloomberg January 21, 2022 10:00am-11:00am EST
alix: 30 minutes into the u.s. trading day on this friday. here are the top market stories. an end of an era for pandemic stocks. netflix disappoints. locked on favorites lose their shine. and the secretary of state tells his russian counterpart that the u.s. stands behind ukraine, as the u.s. ways of evacuating diplomatic family members from ukraine. this all means safety bond buying is back. flareups with russia put bonds back in vogue as a safe haven trade. i am in new york, and my cohost is in london, guy johnson. turning to the options market. $3 trillion of privative's -- of
derrida -- of derivatives today. guy: hard to put your finger on it. it is friday, as if anybody had not noticed. wow, what a week. maybe people are saying i have held onto these positions all week and hoped there would be some sort of buying of the dip and it has not happened, do i want to be carrying this position over the weekend or do i want to go to the bar and enjoy myself? there are a bunch of factors. geopolitical story front and center. we are heading for an ugly close here in europe, really ugly. the dax is now down by 2.5%. the cac down by 1.8%. europe is being hit by other stories. there is really massive price
action, netflix being the poster child for that. this is the question, tech is wrecked. so is the stay-at-home element, but look at names like microsoft, things like that, being battered. bonds were leading equities, but now looks as if equities are leading bonds. a bid back in the bond market. are bond's strength to play their counterweight world? clearly, we're in the pre-fed phase. elaine bostick's joining us to kick that around -- romaine bostick is joining us to kick that around. we have other members joining us. christine, last week it was rates leading they quitting markets, now it is equities back in charge. is this a derivative of what is happening in equity markets? is the bond market starting to play the safe haven row once
again? christine: i think it is today. all those havens, the treasuries that were selling off massively at the start of this week, are the ones that are really getting bought big today. i think it is what we are seeing, that catalyst from the bed news from earnings from netflix and pellets on kicking up this risk aversion -- and pellets on -- peleton kicking up this risk aversion. alix: romaine, i do not envy your job. are we seeing this tech wreck, go buy bonds? romaine: i think so. we saw a pretty strong bids earlier in the day on thursday. level of conviction out there just isn't there. a lot of folks are concerned about the fundamentals, how it is being eroded, whether it is by inflation by what the fed
will do or just some of the broader economic issues. and what christine said, so early in the earnings season. but it has been a disappoint ment. as we start to get the big cap tech stocks next week, apple, microsoft, we could hear more bad news from the heaviest weighted members out there. guy: absolutely, and this is a market that has gotten narrower around those kinds of stocks. do think we will find ourselves in a situation, particularly for the big tech names, as we start to see yields going back down again, that limits the damage that gets done in the tech space? romaine: i think it is a big game changer, potentially, in this market on wednesday when we hear from the fed. and we're going to get, according to michael mckee, a road map as to what the fed is going to do with regards to not only raising rates but drawing down the balance sheet. i think the certainty could
actually maybe provide a little bit more optimism for this market. right now the market is trying to figure out not only what the fed is going to do but how aggressive they will be and how that affects valuations. that is why you see swings in with equities and why you see more defensiveness with regards to people buying bonds and a flight to some of the haven currencies, like the swiss franc and the yen, today. alix: how much of this is foreign investors coming into the bond market and buying because we had a selloff in now bonds are little cheaper? christine: there is an element of that pit we have heard all of these investors, particularly pension funds, really clamoring for those higher yields that they have not been able to get from bonds for such a long time. so we finally got a taste of that. we're definitely seeing signs of pensions potentially derisking right around this time, just because we have had such a big run up and perhaps it is time to go to the classic haven trades here.
guy: in terms of the expectations for next week, where are we in terms of pricing? we have moved beyond 25 basis points for march. there is growing expectation we can maybe put 50 basis point on the table. this move lower in yields today, how quickly could that get interrupted? christine: we have definitely seen today's move take a little bit of shine off of those expectations. last time i looked before i came here, it was about 25 basis points, just about fully priced for the fed in march. but you are right, we should be looking at that and seeing if there any signs for additional rate hikes, because this idea of 25 versus 50 is gaining traction this week. that was part of why we saw bonds sell off massively at the start of the week. if we get a resumption at that next week, it will enter the conversation once again. alix: it is about 26 basis points, so at that one hike level.
when we do not know what happens in the market, we tend to blame auctions, and that is what goldman sachs is talking about. what about those headlines? romaine: it is a major options x. in the u.s. today, and that has reverberations with regards to volunteer eddie -- volatility. guy was talking about the idea, do you want to be exposed to this over the weekend, especially with earnings and a busy week for fed policy or do you just wait and see? think about how much money has gone back into cash and cash-like instruments. a lot of strategist i have talked to say a lot of that money is itching to get back into the market. but where is the opening? guy: in terms of how big of a shift we have seen this week, romaine, give us your sense. we have not seen a proper correction, and there is a huge amount of debate around what constitutes a correction.
people arbitrarily talk about 10%. in terms of how that has affected market psychology, how much damage has been done this week? romaine: dramatically. we went more than a year without any meaningful direction -- correction. russell 2000 has been in the correction now since early december. you have the two nasdaq indices now down 10%, s&p down more than 5%. and looking in europe, looking at a stoxx 600 down 4.7% or something from its all-time high. these are meaningful drawdowns. more importantly, it is the idea we have not seen these types of drawdowns and quite some time, and that rattles folks. alix: industrials, materials, and energy hit hard in europe, and that actually was where the money was going. interesting development. thanks a lot. good to see you. we are going to give you the conversation of callie cox, u.s. investment analyst at etoro dive into our question of the day. tech is wrecked, by bonds?
>> i think the crazy behavior is behind it, i really do. i think we are now in the buy the dip mode. you do not have two years of buying frenzy dying overnight. alix: that was jeremy grantham, gmo cofounder, sink the historic collapse in stocks is underway. that leads to the question of the day. tech is wrecked, buy bonds? callie cox from utah real --
from etoro joins us now. our bonsai safe haven? >> that is the question. if you look at the everyday investor, bonds can be a great tool to get you to your go, especially -- get you to your goal, especially when stocks are selling off. but there are a lot of structural forces at play right now, so they look incredibly overvalued. there is international pressure. it just depends on which sector you're coming from. guy: what do you make of the price action this week? let's start there. we started with bonds pushing equity markets. equity markets look like they are now pushing bond markets. as you'd he's -- as you sit here this friday watching the price action, what are you thinking about where we are in the cycle, where we are in terms of understanding where we should be positioned with our portfolios? what are you thinking? >> thinking worst case scenario,
there was the check -- chance for a few hikes this year to jumping to hiking 25 basis points and possibly hiking every meeting. seems like it has been -- frankly, we think the markets are overreacting quite a bit. as you mentioned before, it has been a while since we have seen that 10% pullback. a 10% pullback happens about once every two years or so. so we are taking all that in stride and thinking, ok, we do not think this is an economic crisis or bull market enter -- ender, but you need to position your portfolios for a pullback. alix: what does that mean? do you buy tech on the dip then? >> we talked to quite a few retail investors, did a survey among about 2000 investors, and
retail investors are looking to buy the dip, and that is not such a bad idea. tech has sold off quite a bit, make sense. but there are also a lot of great stories out there, and we have been surprised that people have not stepped in to buy the dip more. we think that can happen. but we are telling our investors to be careful. tech is a great long-term story but might not be the place right now. buy do we need to understand what tech is? is netflix tech? got blasted overnight. a multibillion dollar company that has moved 20%, callie. this is stuff we have not seen for a really long time and we are seeing at now time and time again. with peleton, as well. these are big moves, merchant call moves, outsider moves. you say be careful. how careful do you need to be? >> i think it depends on what
you are thinking for your portfolio and what your goals are. there are lots of different players only tech. a lot of the smaller, newer tech companies have massive valuations. and they are getting hit especially hard. there might be some good stories there, might be a chance to pick up a stock on the cheap if you believe in the story and management of the company. big tech looks a little more stable. we see that as more of a defensive play. the balance sheet and financials look pretty strong. the newer -- we are saying be careful. step in, maybe think about what you are buying, but if you really believe in the story, it could be an opportunity. alix: the s&p is seven points away from that 200 day moving
average. over the last few weeks, as we process more aggressive fed and more rate hikes yields higher, is the move into value, then the conversation of go buy value, energy, industrials, materials in europe, but that is selling off quite hard today, in addition to tech. what does that mean? where in the equity market do you get value and safety? >> i think people are pretty much selling everything, selling and mass. i think that says something, there is a lot of fear out there. if you step back and look in the environment, it is still a hybrid phase of the cycle. gdp looking to come in at 4% to 5% growth annually, very high compared to the averages. in a hybrid cycle where rate hikes are on the horizon, value stocks like energy, financials, and industrials really thrive in
that environment, even if they are not thriving now. there is selling at the moment, but we think there will be opportunities, as well. guy: where do you think we are in six months to nine months time? there is a note from bank of america earlier on, thinking there will be a rate shock in the first half of the year and then recession panic in that second half of this year. is that the kind of trajectory you think we might be on? >> gosh, i forgot my crystal ball today. but it is really dependent on the fed chair. i think the biggest risk to the market, a fairly small risk, is that the fed loses control. inflation is high. growth is kind of a question mark. i growth right now, but we're still figuring out about omicron and future variants and how they will affect the economy.
rate hikes, factoring in inflation but also slowing growth. it depends on how they take it. they take it gradually in the market responds correctly, we could be in the clear. we are still positive on equity markets, still positive on u.s. stocks. we believe the fed will be able to lead the economy into the next phase of this, but there are risks. they might have to backtrack with hiking or cut quickly. alix: let's end with bonds. the move pretty big, 10-year yelled down six basis points, 1.73. a bigger move in the u.k. we're in the bond market might you want to be buying or is it too late? >> a great question. i say today's action is more reflective of the fact that yields internationally are so low that these bigger investors are buying into u.s. bonds.
hopefully the environment is friendly to risk as we get out of this, as people rush in and buy the dip. we see opportunities on the riskier sides of credit. there is a lot of fixed income in general right now that is undervalued, and it is almost a tool to give us goals to your customers, something to lean on. we believe that stocks are on the way to positive territory for the rest of this year. there could be some opportunities in riskier credit. but right now, that does not look like an opportunity. we will have to see how the market shapes. guy: we will see how we close friday. great stuff, thank you very much. really nice to have you on today. callie cox wanting us from etoro . this selling persists. nasdaq down 1.8%.
>> time for the bloomberg business flash. i am justin morton. bloomberg has learned that intel plans to build what it expects to be the world's biggest silicon many factoring site, spending $20 billion on the chipmaking hub near compass, ohio. the ceo tells time magazine the company will use the new facility to research, develop and manufacture its most advanced chips. bitcoin felt today to the lowest
level in more than five months. it dropped below $40,000. it hit a high of almost $69,000 in november. other cryptos fell. virtual coins have become a symbol of the retreat and speculative investments sparked by the prospects of tighter monetary policy. and that is your business flash. guy? guy: thank you very much. ok, tough week for tech, pushing the s&p towards its first straight week of losses. but that is not stopping investors from hopping into the ark innovation fund. let's talk about that slighty counterintuitive move with kriti gupta. kriti: it is kind of strange to see such a selloff in the nasdaq and s&p 500. people are actually going into the high beta tech space and asking if anyone will be buying the dip, perhaps not directly into the s&p 500, but they are doing this into funds. look at fund flows on a weekly
basis, and you can see some of the pressures in the funds but outflows have reversed a little bit this week. the question, is this a buy the dip move or is this a more specific target towards some of the stocks in the ark a novation fund, like some of those biotech names and chinese adr's? something to watch in the weeks ahead. alix: so how does it compare to the s&p? kriti: pretty good before today but now about equal, reversing gains where it was outperforming in 2020 and 2021, not just on par with the s&p 500. we will see if that reverses now that you actually have perhaps a buy the dip mentality. guy: is there any movement around some of the price action we are seeing? this is a conviction trade, not only for the management team but also for many people who put money to work in it.
kriti: it does not seem that they are rebalancing the funder taking names out. it will be curious to see whether netflix will change their fans. we know the cathie wood's arcing novation etf fund is a very important play on the 2020 pandemic, but it is also a huge play on china, especially the big adr's. this will be interesting in terms of whether or not they are reversing stay-at-home play names or whether this is more of a long-term bet, not just a better bet on tech in the u.s. but better back on tech in china, as well. alix: the whole innovation point. thanks a lot. kriti gupta joining us from bloomberg. breaking news, a scoop by bloomberg on goldman, goldman sachs is apparently looking for another way to do pay for top brass with a new equity award that will be doled out to members of goldman's management committee. these new grants will be offered in place of a one-time guaranteed stock reward.
i think this speaks to how competitive it is within the investment banking community and how we saw compensation ratios move higher for all the banks and how we are looking at the sort of one offs to try and retain all that talent. guy: i think it is about retention, isn't it? they are trying to make this sticky, trying to make some of these awards as sticky as they can to make sure it does not happen, to be paying people a huge chunk of money is one thing, putting caveats around that, you have to stick around to get this, make sure you stay with us, i think that is happening here, not just at goldman sachs but also elsewhere. but i think we will see more of these stories as this issue continues to rear its head. anyway, this is bloomberg. ♪
a brutal day, tech leading the retreat in the equity market. abigail doolittle has the market action. abigail: really is brutal, but we are seeing something interesting. moments ago, the s&p 500 down more than 1%, hitting that 200-day moving average, now off of those lows. so today has a little bit of a feel of panic, a real selloff, and options expiration could be contributing. we are looking for a capitulation bottom. was this it? it will be a very fast move back up if it is. this could be the beginning of that are there could be more selling. bigger selling in tech. nasdaq 100 down 1.4%, on the week down more than 6%, heading to its worst week since march of 2020. if this was the year, the worst year since 2008. that faang and asked on more, and even the banks are lower, down 2.4%. no surprise the resent tech is down so much has everything to do with netflix.
netflix down 25% over the last two days. what makes this incredible is going into this report, the stock had already been down 25% over the last two months. that would typically tell you everything bad was priced in. but with the stock trading 76% premiums to the group, their outlook being cut, this is the result, the stock plunging, weighing on tech indexes. in banks, yields down today. feels like a little bit of a haven bid, interestingly. but on the year, a tremendous backup in yield, up 23 basis points. the 10-year yield currently at 1.74%. the question is whether or not this fear and stocks will bleed into bonds to create a continued bid. or as next week begins and options expiration's is over, will yields climb? something happening for the first time since 2020, the s&p
500 testing its 200-day moving average. interesting. back to 2020, for such a long time, the five had -- the s&p 500 in 2019 had been elevated over that 200 have a day moving average, not a lot of consolidation. basically up, up, and away. but recently, we have had this consolidation above the 200-day moving average. there is this range we have been talking about. so this could be one of those times when the touch of the 200-day moving average will turn out to be one of those tests, if it turns out that way, you get here lots of talk next week about buying the 200 day moving average. we will see if that comes because it is a different set up than back in 2020. guy: wednesday could be a pivotal moment, the fed, what we are all waiting for. earnings, but then the fed is pivotal. back to netflix, whistling down today, this after the company --
joining us now is ed ludlow. ed, how did we miss communicate so badly with these numbers were going to look like? ed: interesting, and that is the point i was focused on last night. we knew that as of the fourth quarter, december, netflix was moving market share -- i am a big fan of the para analytics data, which looks at all the players, hbo, hulu, amazon prime, apple tv, the trend is clear, that between the second quarter of 2020 when the pandemic hit and the fourth quarter of 2021, netflix surrendered market share because those guys have been investing heavily in their regional -- original content. so you see that reflected in the price target cuts this morning. it is becoming saturated at the same time that the macro picture is becoming much more blurry for
netflix. economic pain in markets we do not often talk about, like latin america, for example. alix: it reminds me of what we saw with disney in 2015. summer, beginning of august, and disney surprised to the downside and rolled over the entire media sector with it. and there was the devaluation of the yuan. what is that power and a broader market since? ed: we think about netflix in the context of north america, let's the honest, because that is where the pricing power is strongest, where you and i are. i know that guy is a big "bridgerton" fan in europe. alix: no way. guy: didn't you get my big whistled on reference? ed: i did. but they have revenue from outside of the u.s., and there
is an impact with currency headwinds. they say full-year 2022 revenue will be deal -- down $1 billion because of a strong dollar. for a long time, we just look at the subscriber number, subscriber number. you have to look at the bottom and top line, as well. the street seems unimpressed with the outlook of the future, especially in the context of if they bring this new subscriber back to pre-pediment growth levels, they will have just been quite a lot of money on new original content. alix: great stuff. thanks, ed. let's get more and the big tech selloff and earnings for next week with david kirkpatrick, a bloomberg contributing editor. it is great to see you. broad stroke when it comes to overall tech. heavy selling this week, although we are off our lows for today. nasdaq 100 only down now by .6%. i wonder how you look at valuation and the selloff we have seen, is it weighted enough
to account for what netflix, facebook, google stocks can deliver. >> each has a different story, but they have been bid up so much during the pandemic. interest rates are shifting, and that creates a new environment for this sector and entire market. i think a lot of investors are much more cautious about companies that they have been betting on unbelievable growth, especially a company like tesla, but some of these companies are better -- i actually think netflix is the least testing company of the group you're discussing. so you talked very intelligently about the specific challenges it is facing, which are real, but when a stock drops 25% in just a couple hours, you can see the sentiment is shifting. guy: how do i segment the sector and think about the different components, from netflix to the
chip stocks, with everything else in between? >> look, chip stocks are going to generally define, but a company like amd is down, still has a huge p/e. let's look at apple. certain companies stand apart, and apple is one. i think microsoft is probably another. in its own weird way, so is facebook. apple is going to continue to do great no matter what happens. the stock will probably be the most reliable over the long term, even though men -- even if though no matter what happens in the economy in the next year or so, because it is a combination of factors, it is global position, incredible management. there are supply chain constraints. they do not have a problem with their business. on the other hand, going through some of the companies, tesla, they have done beautifully well as a company, but there p/e is
10 times the p/e of apple or microsoft. that is kind of -- of is beyond perfection. the belief investors have shown in tesla is so absolute that any hiccup is going to be punished brutally. so that is what happened with a much smaller market cap company, netflix. but this is a difficult time. the interest rate environment is so different that investors do not know how to function in this environment, many of them, have never been there for decades. alix: when you're facing higher inflation and a rate hike, you mentioned apple being one that will stand out from the others, what about google, microsoft, facebook, some of the other faangs? which ones can stand on its own and where is the sentiment souring that make sense? >> all three of those companies
basically can stand on their own. from a business performance point of view, there is no problem for any of those companies. google and facebook are still -- if the economy really slowed and advertising really started diminishing, maybe facebook and google would be hurt a little bit. but the reality is everything is moving, even still more digital, even as the economy were to contract or slow, the fact that e-commerce is becoming a bigger and bigger portion of commerce is going to insulate google and facebook. microsoft is a lot like apple, their move this week with activision shows the confidence they have, and they are building an even more diversified business with long-term impacts from that deal. now their cloud business is their business -- biggest revenue segment. that has been cared for and fed
in an amazingly effective way. they are very nicely diversified across a variety of different product areas, including gaming. doubling down on consumer. and people are not going to stop living digitally no matter what happens to the economy. guy: is there a useful comparison here with 2000? >> well, i mean, that remains to be seen. i think we are not to that point yet. there was an amazing article in the new york times yesterday about the valuations that startups are being given, and that strikes me as a little crazy, that the investors are fighting to invest in any startup that is digitally doing anything. i think it said 800 or 900 unicorns now. that is where you would feel it if things really started to get bad. not in microsoft or apple or
google or facebook. guy: have a great weekend, david. that was really interesting. david kirkpatrick, technology media founder and bloomberg contributor. coming up, europe using its pandemic terms. the latest on the virus with karen edwards, university of california epidemiology. that is next. this is bloomberg. ♪
provide one billion free covert tests to americans will meet a multimillion dollar payday for test makers. the first 500 million tests alone will cost the government for billing dollars. abbott laboratories set to receive more than half of that. a rising number of covid infections in hong kong is hurting political and health care leaders. they are known for the zealous covid zero approach. hitting levels not seen in a year, and some infections appear to be coming from unusual sources such as family pets and recycled items from apartment buildings. the surgeon the coronavirus infections has claimed another casualty. adele's residency start in las vegas, and she announced the delay on video on social media. >> hi, listen, i am so sorry, but my show ain't ready.
we tried absolutely everything we can to put it together in time and make it good enough for you, but we have been absolutely destroyed by delivery blows and covid. justin: the show was scheduled to open tonight at caesar's palace. she says half of her team has coronavirus. 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 am justin morton. this is bloomberg. guy: supplying -- supply chain issues and covid affecting everything. an adele concert, not conference, it is being affected, and that tells you what you need to know. that comes to this story, that europe has started to take a much more relaxed attitude to what is happening with omicron. a number of european countries
moving over the last few days and hours, talking about the fact that they can back off. the dutch premier indicating that his country will continue to ease. we are seeing that in ireland, france, germany sticking with current terms, seeing quite high numbers dominating in germany. but other countries are starting to back off. karen edwards, university of california professor of epidemiology, joining us to give her take. what we have seen in europe has been a sharp spike in then a very fast drop off in terms of the omicron cases we are seeing. do you think the response from government to ease off as quickly as they are is the correct one? >> everybody would certainly like to get back to normal as soon as possible, and obviously, the economic impacts are huge. i think in some situations it may be a little premature to start backing off. we would like to get this under
control and not continue the surges. i think we need to be cautious. it certainly is helpful. i think easing some of the restrictions is probably appropriate, but we need to keep a careful watch on this and make sure things do not start going the wrong way again. alix: is it fair to say that omicron has peaked, and if not, what signs do you look for? >> we look to see, in many of the european countries, we saw a very sharp peak and then a sharp decline. what we do not want to see is for the drops to stop and to start going back up. so we need to watch that. guy: what behavior should we maintain, do you think? >> absolutely we need to continue our efforts to get people vaccinated. in situations where there is still high community transmission, whether it is in certain regions or pockets of
countries, we should continue masking. in the u.s., we definitely need to stay on top of that. we are still in a surge here. alix: do you think that the reaction function of future variants is going to be the same? what i mean, you get a surge, a mini shut down in some capacity, and then a mini kind of reopening -- is that the reaction function or do you think it changes as we get more endemic? >> hard to tell largely depends on what new variants emerge. this is the concern. if we get a new variant that is highly transmissible and also very severe, it could be a very different situation. this is the huge unknown. it is difficult to predict because it largely depends on what new variants emerge in the properties and whether or not we have any immunity to those new variants.
guy: talking immunity, we have had a huge spike in the case counts, millions and millions of people over the last few weeks on both sides of the atlantic have had omicron and continue to get omicron. do we have any idea what natural immunity will stem from that and the duration of that natural immunity that comes from it? >> the short answer is no, we do not know yet. we're certainly hopeful that the omicron will provide a certain level of immunity. the problem is we do not know how long that will last. we do not know whether or not people can get infected again with omicron. so there are still a lot of unknown spirit we do not have enough -- there are still a lot of unknowns. we have not had enough time to look at it and answer the questions. alix: what do you think about the news of animals getting covid, mutating within them, and sending it back to humans? we talked about the culling of
hamsters in china. what do you make of these headlines? >> what we know is that there are certain variants they can use animals and other species as hosts and then transfer back to humans. so that is certainly possible. again, we need to look at the data and determine what is really happening here. that always takes time. but these are all possibilities, and the point is that we are not done with this covid virus yet. there is still a lot we need to understand to control this. alix: thank you so much. karen edwards, university of california professor of epidemiology. i was reading that some people are paying thousands of dollars to get their pets out of china. more coming up. this is bloomberg. ♪
alix: live from new york, i am alix steel. guy johnson in london. every friday, we break down some of our favorite charts of the week. here is mine. the white line is -- almost everything is get hit hard. the performance of the basics resource sector, the energy, materials, industrials, and the basic resources.
but you look at the underlying spot, and you see a big disconnect here. guy: commodity stocks here in europe, adding to the downside, we will talk about what is happening as we approach the european close. we are talking a lot about tech today, talking about tech getting absolutely battered. just about everything getting checked out, except chinese tech. chinese tech is starting to outperform. this is the nasdaq golden dragon china index versus the nasdaq. you see the chinese tech starting to outperform the nasdaq. chinese tech has been beaten up for quite some time. we have seen some of these names being smashed lower with the regulatory crackdown in china, the chinese economy decelerating. but maybe we are starting to climb back. people are looking at what is
happening with the arkk story. kriti talked about that, looking in this space, as well. maybe something of a turnaround. you need to be a bit more nuanced in terms of some of these stories. getting beaten up but not all tech. alix: the pboc is easing, fed is going to tighten. there is a macro narrative. guy: absolutely. pboc next week, and we will contrast that with the fed. coming into the european close. we are off the lows. dax has been beaten up today, but we're watching very carefully what is happening with that story. we will discuss this with susannah streeter. she is coming up. the close is next. this is bloomberg. ♪
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-- >> the countdown is on. this is "bloomberg markets: european close" with guy johnson and alix steel. guy: we are counting down to the close, 30 minutes to go and it has been a brutal day for european stocks. stoxx 600 down 2% trading 4.73. the dax is where the real pain has been felled. prices are trying to creep up around prices with what is happening around ukraine could add to the reflationary aspect. corporate news in the mix. siemens' energy trading down. it is a familiar theme, input costs, being margined, that is impacting the ability of consumers to be able to buy the products tha