Skip to main content

tv   Bloomberg Markets  Bloomberg  February 11, 2022 1:30pm-2:00pm EST

1:30 pm
in a letter to his counterparts and 37 countries, russian foreign minister sergei lavrov says he is waiting for a response from each nation individually. he also called for nations to respect the principle of what he called indivisible security in europe. you will eventually be able to pay for your uber ride with cryptocurrency. we spoke with the ride-hailing ceo. >> as exchange mechanism becomes more expensive, less environmentally friendly, i think you will see us lean into crypto a little more. we are watching it. is uber going to accept crypto in the future? absolutely. at some point, but we will. mark: he also says inflation is here to stay, but fares are coming down.
1:31 pm
about 4000 unvaccinated new york city employees could lose their jobs today. jobs are at risk for workers including police officers, teachers, and firefighters took unpaid leave instead of getting vaccinated by the city's mandate took effect. more than two dozen unions are suing over the requirement. mayor eric adams says 97% of the city's workers have received at least one dose. in hong kong, shoppers are again facing the prospects of empty grocery store shelves and food shortages. more truck drivers responsible for transporting food supplies into hong kong have tested positive for coronavirus at the mainland china border. last week, a rising case numbers forced china to temporarily shut border crossing operations, leading to bare shelves and price surges of as much as 70% for fresh produce. global news 24 hours a day, on-air, and on bloomberg quicktake, powered by more than
1:32 pm
2700 journalists and analysts in over 120 countries. i'm mark crumpton. this is bloomberg. ♪ jon: i'm jon erlichman. welcome to bloomberg markets. matt: i'm matt miller. here the top stories we are following from around the world. u.s. consumer sentiment falls to a fresh decade low after year-over-year cpi reached 7.5. we will speak with bob sloan as investors cope with rising rates. rates are working for ducati north america ceo, but buyers of the superbike typically pay cash. more from our exclusive interview. and ontario declares a state of emergency with the premier threatening severe consequences
1:33 pm
for those protesters. we will get the latest from the ambassador bridge. jon: as we wrap up this week, the final few hours of trading, we will see if the s&p can eke out a gain. right now we are down on the week. continued pressure on telling technology. this inflation story has been front and center. it is where we begin our for what it's worth segments. data released on the consumer sentiment. dropping sharply, falling to its lowest level in a decade. we have the white line which gives you the expected inflation. that when you can see has been moving up at the tail end of the chart, versus the blue line which measures consumer sentiment. we keep talking about inflation. it is clearly going to impact the ability of people to spend.
1:34 pm
the fed is thinking about that. i also wonder about that balancing act. can the fed like inflation, avoid recession? a lot to think about right now. matt: the inflation concern seems to have really risen over the past couple of days with the board reaction and consumer sentiment, now people calling for -- a lot of smart people are calling for an emergency meeting. the fed is trying to combat inflation in some way. right now it looks like by jawboning. earlier we spoke to treasury secretary larry summers on what he things is the answer. >> i think the fed should have a special meeting right now to and qed -- end qe. matt: let's bring in bob
1:35 pm
sloan from s3 partners. what are you seeing in the data that you are buying each day in terms of investors trying to position better or this inflation? >> always great to be here. we find nuggets within our data. if you look at the amount of shares bet against the s&p in the last few months, up 20%. no surprise there. but dig a little deeper, and we start looking at the things that traditionally do well in inflationary times. metals, mining, energy, real estate. short bets are up against those sectors, too. so a very interesting combination. overall, short bets are up.
1:36 pm
sectors that are supposed to be doing well in inflationary times are up, too. what does that mean? stagflation. that is what the market is saying. jon: maybe you could spend another minute going into those themes. in all of your years watching where the short positions are, are there any comparable situation that you can think back to? bob: it takes somebody like s3, who had to survive a rising rate environment and had to accommodate that. one of the challenges here, most of the trading desks, people managing money, money has been asleep the past 20 years. it is waking up and striding across the financial markets and people don't know what to do. the volatility you are seeing is people have to recalibrate. what does inflation mean for them? that is what is causing the volatility. matt: the fed is still adding
1:37 pm
accommodation at some point, we assume, they will stop and even reverse course, quantitative tightening. when they take that liquidity out of the system, what does that mean for the frothy meme stocks we have seen go crazy in the past year, like amc, gamestop? bob: our squeeze score has become the metric for who is winning and losing in those battles. earlier in the year, the score was not 100. the reddit crowd waiting. three years ago, institutional investors cap there short bets, and they started winning. now we see our score ratcheting up to about the mid-80's. we find the crowding score is also approaching something worrying. if you look at the squeeze score, you will see who is winning and losing in the battle between hedge funds who think amc and gme are dead men
1:38 pm
walking, and the retail crowd who believes, if we just gather enough force together we can squeeze the shorts out. it's a great financial soap opera. the fed taking the money away will not end it. jon: what about the battle taking place under the hood. we have seen all the headlines at peloton. with all of the changes, what is all the numbers and data tell you? bob: peloton is an interesting one. the stock is up 100% or something the last 10 days. the short-sellers are saying we don't believe the taken belly of the stock, if someone is there, is above where the stock is today. most of the time we see short-sellers not covering at. that means they are still negative on the stock. they don't think there is a
1:39 pm
buyer. jon: helpful context as always as we continue to watch the stories of these individual stocks, navigation around inflation play out. bob sloan is a founder of s3 partners. when we come back, escalating tensions in canada, as blockades widen and economic damage piles up. more of that conversation ahead. this is bloomberg.
1:40 pm
1:41 pm
1:42 pm
1:43 pm
jon: this is bloomberg markets. i'm jon erlichman. we are watching a continued weakness for some of those technology stocks, as we are also watching the continued rally in oil. matt: brent crude rising to $95, the highest price we have seen since 2014. right now at 95.15. really interesting rise. meanwhile, treasuries have erased their declines. the 10-year yield had a session low of 1.946. taking a look at treasuries. looks like we will see the numbers turnaround what we have previously seen. 1.9892. treasury yields have really been up and down.
1:44 pm
right now, they continue to fall. jon: we will continue to track the markets. meanwhile, ontario's premier doug ford earlier declared a state of emergency. the government is exercising new powers to end the blockade. let's bring in someone from ctv who has been covering this. this news coming as they were so many concerns about a lasting economic impact for both canada and the u.s. from what is going on. what is happening on the ground right now? >> that is right, the economic impact being felt over the last few days. we have heard from the big three automakers having to cut shifts short. as for what is happening on the
1:45 pm
ground, for the first five days, we are seeing some progress when it comes to the protesters. behind me is a single lane about the protesters opened up this morning. this is canada-bound traffic. although they opened up this lane as a sign of goodwill, traffic going into canada is still not open at the ambassador bridge. officials have not made the decision to open up the border. there were a lot of aggressive moves by the government today to end this protest. the premier declaring a state of emergency. right now there is an injunction happening here in the city of windsor, auto parts manufacturing, and the protesters. matt: what are the problems in the supply chain? what does this result in for ford, general motors, chrysler? >> some of the experts i have spoken to say typically these manufacturing companies have
1:46 pm
about two or three days of surplus supply. this blockade has gone on for five days so we are starting to see the real-world effects of what this group is causing. just yesterday, the windsor assembly plant have to cut down on a bunch of ships. multiple toyota plants have to shut down. as well as on the other side of the border, gm and ford also had to cut shifts. it is not just this area that is blocked off. about a six-kilometer radius is shut down, so all of those businesses are being impacted as well. matt: thank you for joining us on the ambassador bridge. stocks are sliding. right now, and nasdaq is off to .25%. the s&p is down 1.75%. losses continue to get worse as we get to where the end of the session. kriti gupta is here to talk
1:47 pm
about what is happening. >> i don't want to speculate on what the driver will be but we should talk about the cross as it moves you are seeing. yields a little bit lower, pop in the dollar. brent crude crossing $95 for the first time since 2014. it is the end of the week, it is going to be some end of the week flows move the market. we don't want to speculate but it is worth watching as we move forward. jon: when we look at this nasdaq selloff, you are right, we have seen the tech group as an easy target. the reality with earnings season, for the most part, it has left out some inspiration for volume especially for some of those big names that had expectations. there are some pronounced percentage decliners among that tech group. kriti: the volatility you are
1:48 pm
seeing, it is normal to be punished if you miss in the earnings, rewarded if you beat. it comes amid a backdrop of the idea that tech has been underperforming. fintech will be a big part of that. a lot of the moves that were so strong at the start of 2021 are reversing. fintech, the spac craze. we have to keep in mind that a lot of those reevaluation trades, rotation trades, a lot of people thought would start 2022 off, not so this time. moving assets around, pretty sideways in light of the hawkish moves that you'll see from the fed. matt: a firm is one of those by now, pay later. i don't understand why. you may as well get a credit
1:49 pm
card or put it on lay away. one of the interesting things i got out of my interview with ducati, a lot of their buyers are just paying cash. thank you for joining us on the market moves. we will hear more from that ducati interview, next. this is bloomberg. ♪
1:50 pm
1:51 pm
matt: this is bloomberg markets. i'm matt miller. we have seen markets slide lower as we get closer to the close. right now the s&p 500 is down one and two thirds of a percent. lower biotech stocks. in 2021, ducati motorcycles set a record for global sales. the u.s. led the market with an increase of more than 30% from
1:52 pm
2020. the north american ceo discussed how they managed apply chain challenges while maintaining growth in an exclusive interview. >> we are suffering the same challenges that every manufacturer that deals with technology from automotive to motorcycling. it has proven to be an issue. the good thing for us in north america and specifically the u.s., not only did we do good planning, we prepared well to get the stuff that we need in order to make sure that we get it when we need it. we have also seen a change in the buyer behavior in north america. we are a market that wanted yesterday. when you make a decision to buy something, you wanted in your garage. people have learned that that is not the way that you can buy now, whether it is a luxury good, premium good, whatever the case is.
1:53 pm
we are seeing people are placing deposits down which is helping us prioritize the way those bites are sold. if you walk into a dealership these days, you may not see the volume of product that you may have seen in the past, but we are prioritizing those deliveries that we have two those customers that are presold . we are satisfying them, it is lower cost along the supply chain, lower floor costs, and the customer is satisfied quicker. matt: this place looks amazing. i have been coming here for years. i know they were smart enough to preorder a lot of product. is it tough for the other dealers, are they selling out as soon as they get things in? >> they are selling out pretty quickly. of course, we are in the off-season for most of the country with the exception of the warmer states. they are selling through quickly but we have all had to adapt to this environment. matt: you were at lamborghini
1:54 pm
for a while, now the turnaround here is incredible since you arrived. what are your main goals for 2022? >> the first thing we want to achieve is record market share. matt: taking it from harley? >> we will take it where we can. it is -- with the product that we have -- to chip away. that famous statement of how you eat an elephant, one bite at a time. market share is a really important part of us understanding how we are performing versus the market. last year, we achieved record market share, but we are not done. matt: as we emerged from the pandemic, is demand going to stay at the same level? >> i am cautiously optimistic, but i am cautious. while we are very excited,
1:55 pm
believe we can, because a lot of it is fueled by things that are not just related to the pandemic. dealer network growth and expansion has been a part of it. the product is a part of it. as long as we continue to make the investments back into the market, we are not in the background counting the money. we are going to ensure that we have the growth. i will assume that we continue to grow 2022 and beyond. matt: rates have been a huge tailwind for you. does that worry you, do you think be her at a low enough level? >> no doubt i have to keep an eye on that. the reality is the way that people are buying now, they are not necessarily financing. a lot of the things that are related to the cost, people are buying with cash. that is very interesting to see. we know a lot of people sat on their money for a year and they realized they were not spending on all of these things they use
1:56 pm
to, so now they have a little more in their pocket. we have seen less of an impact on that but we have to keep an eye on that in the future. we know it is not forever. matt: that was the ceo of ducati north america. we see stocks continuing to slide. the s&p 500 is down right now, being dragged a biotech stocks. the nasdaq is down 2%. the good news is the flattening yield curve is flattening no more. to year and three year yields up 8, 9 basis points respectively. the 10-year yield, about five basis points. for jon erlichman, i'm matt miller. this is bloomberg. ♪
1:57 pm
1:58 pm
1:59 pm
the trading day, this is bloomberg markets to close with caroline hyde romaine bostick in
2:00 pm
taylor riggs. -- romaine bostick, and taylor riggs. romaine: live from a bloomberg world headquarters, this is bloomberg markets, the close. sonali: i'm sonali basak i'm a off today. romaine: looking at your screen you are seeing a market moving a little lower on some anxieties over what the current diplomatic status is between russia, ukraine, and the rest of the world. the s&p 500 is moving lower as we speak. a pretty big weakening in the ruble versus the dollar. you are seeing a lot of defense contractors including lockheed martin, nor


info Stream Only

Uploaded by TV Archive on