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tv   Bloomberg Markets European Close  Bloomberg  August 20, 2021 11:00am-12:00pm EDT

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johnson and alix steel. ♪ guy: friday the 20th. . 30 minutes to the close. what do you need to know out of europe this hour? european stocks having the worst week since february. hong kong entering a bear market as beijing unveiled a new data privacy law that delivers another blow to chinese tech. the u.k. says it will take a more detailed look at nvidia's purchase of cambridge-based arm on competition grounds. nvidia didn't really talk about this on the call. astrazeneca is going to seek regulatory approval for its new antibody --
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we are below 1.17. in terms of the technical set up, it looks quite troubling. we will talk more about that with kit juckes. alix: where the equity pain lies, that is what i want to examine. the answer is no. one area you definitely think would continue to get hit today would be the golden dragon china index, the chinese listed adrs in the u.s. you had alibaba at another record low. the majority of chinese equities again up to the woodshed, particularly if you are a technology sector come yet we are up by 0.3% today, so definitely a buy the dip feel despite more oversight coming from the chinese government. russell 2000, the longest selloff since february, now up 0.6%. definitely off the highs of the session with the euro getting a
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little bit of ground. copper got pummeled. stronger dollar, yet that is up by over 2%. i just wonder how much of it is going to go in and retake positions if you have sold any. maybe a little short covering somewhere, and then go into the weekend and see where we are for jackson hole. guy: such a turbulent week. people battening down the hatches may be ahead of the storm. let's dig in a little deeper into what we have seen this week. the dollar has been at the epicenter of the action. kit juckes, socgen's chief fx strategist joining us now. it has been bid for the dollar all the way through the week, and i am wondering whether the taper tantrum is showing up in the dollar. how much more is there in the tank? kit: there is some. it depends on which way you are looking at it. the euro is coming down very slowly, and could apply slowly, edging ever lower. i thing that is going to be slow and not go that much further, but the action and some of the
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commodity sensitive and growth sensitive currencies, that is a big flush out. so the australian dollar, canadian dollar, norwegian krone , the south african rand, we've had a big washout and those. everything is exaggerated because it is august. that's always the way the foreign exchange market can have outsized moves. but what we've done is flipped from a stronger dollar story on a rates argument and a taper argument, delta variance story, that's where we are. alix: does that mean we are on the u.s. dollar is a safe haven kind of trade? kit: we are at this point. what we're doing is reversing gains from earlier, but yes, i
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think this week, that is very much where we are now. it can last for a week or two because if i look at the commodity market, since you are talking about it, further to go in oil and copper in the short run as these growth concerns remain around. certainly wouldn't fade the dollar move. i think what could continue to happen is that euro-dollar, dollar-yen remain pretty slow moving in the background. guy: talking about slow-moving animals, there's been a lot of noise around china this week. we are talking about redistribution, pushing back very heavily on the tech sector. there's been a lot of noise in equities, but not much in fx. why hasn't the chinese currency moved to reflect what feels like a very big shift in the way that
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the chinese communist party once to run the country? kit: i don't think there is any advantage domestically or externally. you remember when dollar-yuan was heading down through 6.50, there was a great sense of how much further this could go. it didn't go anywhere near as much as some of the mentals justified. coming back up, moving much less than it might. so at the moment, it is a source of stability. i watch it every day, the first thing i do when i wake up in terms of whether that is going to accelerate. it is being kept on a very tight leash. alix: we have robert kaplan of the dallas fed right now speaking at an online event. i do want to read some of the headlines. he's watching the impact of the delta variant on gdp carefully. he still sees the gdp for this
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year coming in around 6.5%. he sees broadening price pressures to 2.5% pce in 2022, and sees 2021 pce running at the high-end of 3.9%. what is the right trade going into jackson hole right now? kit: the right trade is whatever trade looks for any decision on tapering until the september 22 fomc. the right trade is the trade that they are going to buy themselves three weeks of time to see how the delta variant plays out and how hospitalization data play out. i think that could be more turbulence because we continue to be uncertain until we get the next solid piece of information. so i am not buying risk
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currencies or assets. guy: just in terms of the data you will watch during that period to get an idea of what is going on, kaplan was one of the first to come out and talk about tapering. he's now caveating that because he's watching what is happening with delta, and that is causing him some concern. we talk throughout the show about people delaying return to office. we are certainly seeing restrictions not be enrolled often the way they were expected to. do i just look at what is happening with cases and hospitalizations and make market-based judgments based on that? because the data at the moment is to rearview mirror to give me a guide as to what is happening with the economy right now. kit: yes, we will get pmi data out starting on monday in australia and around the world, but that is going to be softer. we know that is where we are, so it doesn't tell me very much. and i don't get a lot more. i have to say, all of the data we are getting at the moment, under shoot retail sales in the
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u.k., softer sales in japan to go with softer cpi in the u.k., so a debate about how much of it inflation problem there is. if we were just talk i'd and short-term on everything, we would say tapering doesn't get talked about until the story changes. alix: so windows the dollar start to reflect this overshoot? because 4% you see the inflation rate potentially at the end of 2021, that is some serious overshoot. kit: the challenge for the dollar is going to be if the u.s. has more inflation than everybody else, it is the one country which is really hot on inflation, nowhere else has anything like that, i am not sure that easy monetary policy, higher inflation, and deeply negative real rates is forever stronger for the dollar. what is driving it really away from the short-term risk sentiment is the belief that the fed can escape the zero bound
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when the ecb and the bank of japan has no chance of doing so. so when does that change? that changes when we think the fed might not escape, or if they escape and they lose control of things. but otherwise, the dollar, to my mind, it can kind of range trade in a broadway. it can be choppy for the next three months. but there's potentially a bigger move as we focus on rates. guy: i am going to try to get you to answer the question you posed in your note this morning right at the end. how long could a relatively high inflation rate be good for a currency? is there an answer to that? kit: the central bank has to step up to the plate. otherwise you just get more and more uncompetitive and you don't persuade investors to come to you, even if you are the dollar area so the fed has to step up to the plate to keep the dollar strong. alix: really good to see you.
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happy friday to you, kit juckes. so that inflation overshoot question is remain. coming up, china ramping up scrutiny on new industries. more on how it is impacting global equities. freddie lait, latitude investment, will be joining us next. this is bloomberg. ♪ ♪
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♪ alix: live from new york, i'm alix steel, with guy and london. this is "bloomberg markets." robert kaplan in an online event talking more about the labor
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market. he does see pce inflation hitting about 3.9% by the end of this year. he says labor supply demand issues will be with us for a long time, and he hopes a meaningful percentage of care workers will return. so it still feels like a lot of wishy-washy next into of wishy-wash -- of wishy-washiness. guy: i think he's talking about a tight but problematic labor market here. labor supply and demand issues will be with us for quite some time. i wonder if he's talking not about a wide output gap, i.e. still a high level of and implement, or the fact that actually, you are getting tightness in certain parts of the market, and as a result of the which, i am seeing that playing in. this is the fear for central bankers. the first round effects of what we are seeing in terms of shortages and supply chain issues, that could be temporary and could fade, but if the labor market gets sticky, this is
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where life is going to get tricky for central bankers. this is what the bank of england is talking about as well. that is where things become more difficult to manage because people get used to that, and it is harder to take away pay increases. a lot of this is being done on fixed pay rather than short-term bonuses. alix: he does see the jobless rate drifting go to 4.5% by year-end. the other ones this week, the crackdown in china that just keeps continuing. chinese companies listed in the u.s. are now on pace for their longest losing streak in more than a decade after beijing increases regulatory crack across various industries. this having more to do with cybersecurity and companies moving their data or having data stored overseas. going is now is our bloomberg market reporter. focus through some of the damage that has been done in chinese equities, as well as chinese
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listed adrs this week. reporter: thanks for having me. it is just so relentless in the chinese adrs and in the tax base. we see some of the big companies like tencent and alibaba trading at the lowest valuation since their ipo's. it just tells you there's a lot of pressure, and a lot of investors think that because of regulatory uncertainty, some chinese companies are just no longer investable. guy: just in terms of what comes next, are we done with this now? how much more is there still to come? ye: china has made it clear they are going to reshape the regulatory environment for the years to come. it is going to affect various industries. if you don't know what the regulatory environment looks like in the next two to three years, it is very hard for an investor to predict what kind of earnings and revenues the
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companies will have in the next few years. what tax rate is going to be applied, how much they can charge for consumer business, how they apply to competitors, mergers and acquisitions. all of these questions cannot be entered for the moment. guy: we are going to leave it there. great stuff. thank you very much, indeed. just a lot of uncertainty. that is a problem here for europe. ye xie joining us for what is happening on the chinese crackdown. let's get more insight into what is happening here. freddie lait, chief in the smith officer at latitude investment -- chief investment officer at latitude investment, going is now. i look at this week, burberry down by 13%, richemont down by 13%, lvmh down by 13%, swatch
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down by 12%. the ripple into european luxury stocks, european miners from china has been quite significant. does what is happening in china change the calculus as to whether or not you want to put money to work in europe? freddie: i think it does a little bit, yes. china has been one of the key engines for growth in europe. so i think a lot of stocks where europe is famous for an industry full of low growth stocks, so when you find stocks that have succeeded in tapping into that extraordinary growth of the last 10 years, they are trading at very expensive multiples. in some cases, justified if the growth comes through, but when you add in a higher level of risk premium, a higher level of regulatory uncertainty, what is coming through from beijing at the moment is very meaningful and could directly impact the operations of the business and the valuations attributable to them. it does make investing in china
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led stories much more difficult in the near-term. alix: you also need exposure to china in some capacity because it will have a lot of money going into certain sectors. the consumer is still a story there as well. if you have this wealth redistribution, arguably the middle class will do even better. so what do you buy and sell on that? freddie: i think it depends. the chinese government has come out and said we do not believe we need to look after the interests of local or international shareholders. they are making their decisions around a longer economic plan which may or may not have a huge amount of wisdom in it, but in the near-term, they don't seem to be paying any attention to the shareholder interests. so it is very difficult to say with any certainty, it is quite clear that the economic plan in china is working, the middle-class is urbanizing, and the lower classes are becoming more middle-class, but to actually get exposure to that is an international investor is now not that straightforward. it comes with an enormous amount
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of risk. perhaps it is one to leave aside and say there's growth pockets elsewhere growing just as fast as the china story, but i can hold that for the longer term with confidence, and that is what we have been doing. guy: in the near-term price action, what did you make of this week? did it change your thinking? was this just an overdue correction, or something more fundamental but what is happening with the fed, what is happening with delta, etc.? freddie: i think the delta variant and the impact on growth expectations has probably been the main driver of the recent weakness, combined with the fact that we are likely to get the announcement about further qe tightening or the tapering coming either at jackson hole next week or the fomc in september. i think it is good to see small corrections in this market. the s&p is almost double from the bottom in march last year, very strong. it is trading very richly.
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this has been a difficult week, the hardest since february. but the market is not yet what we use to think of as a meaningful correction. it is certainly nowhere near a bear market. so i think it would be reasonable to expect more downside volatility in the market and a more meaningful correction as we have to adjust to firstly, the delta variant and the impact on growth, but also the fact that this supercharging of growth has come from consumer demand and is going to fade, and trying to time that an factor that into your analysis is very hard as you are in a market priced to perfection. alix: so it sounds like you don't want to buy the dip, and if you ever want to do that come aware? freddie: i think equities are a very attractive asset class, and when markets fall, there is so much index buying that the really high-quality businesses are on sale. just basically saying i don't
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think the 2%, 3%, 4% dip we have seen this year is enough of a debt. it is not a huge move yet. guy: but are you comfortable with markets at these levels? freddie: if i was an index investor and i had a market at this level, i would be pretty nervous. i think on just about every metric relative to bonds, stock markets are overvalued, and the 95th percentile -- overvalued, in the 90th or 95th percentile, depending on your metric. liquidity growth is slowing globally. so i do believe that from that point i mentioned earlier, there's a lot of very high-quality businesses in developed markets that are being completely undervalued and oversold still, most notably outside the tech sector. so our equity portfolio trades
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on 15 times earnings. that is not a worry in that scenario. i think you can still build portfolios that will withstand it, and it is a very exciting opportunity if you can do so. alix: thank you, freddie lait, chief investment officer over at latitude. this is bloomberg. ♪
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♪ >> we believe that the worst is passed. >> it is very fluid. >> the chip shortage is driven by the capacity. already, the action has been taken by our suppliers, and this will also go away. >> microchips are the center of most of this activity, but we are seeing a wide range of supplier disruptions, due largely to continued outbreak of covid. >> we do think we will probably
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be until at least mid-2022 until we see supply rebound. >> this will probably go away. in short term, i don't think so. >> we will see 5%, 10%, 20% of maximum production compared to our plans. alix: ihs markit says the global shortage of semiconductors could actually cut worldwide auto production by as many as 7.1 million vehicles this year. that is a lot. guy: and volkswagen is now saying it is going to have to further delay production as well. i think as we come out of the summer, it is not going to be re-falling -- going to be restarting fully. i do wonder whether or not this is actually a long-term wake-up call for germany more broadly. we are going to talk a little bit about the german election a little later on. not going to take as many people to build electric vehicles, and i wonder whether or not
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the disruptions could be an indication of the pain germany is going to feel further down the road. but at the moment, everybody is feeling it. toyota this week, i was really surprised by that. they managed it really well so far. even toyota now being affected. alix: what surprised me is the market was so surprised by that. i understand they were able to manage it, but the fact that they stock got hit so hard is this disruption and the length of it isn't yet priced and. it will -- priced in. it will definitely have bill effects, particularly for the tax -- have ripple effects, particularly for the dax. guy: i thought your chart earlier was good on that. the european close is next. ♪
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guy: we are wrapping up the
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worst week since february with a positive session. the ftse is up, the cac 40 is up, the dax is up. italy fairly quiet. after such a turbulent week, there are a number of factors today as to what is joy gone. we are seeing a front foot situation developing, not just inequities but also some of the currency markets. look at euro-dollar. it is bouncing back a little bit. got a low 1.17 yesterday. today we are picking up a little bit. going sideways. at least slightly positive. let's take a step back and see what has happened over the last five days. european equities suffering the worst week since february. not a massive move. down 1.5%. it kicked in over the last couple of sessions. it is hard to pin it down, a
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combination of all of those factors coming to the forefront. certainly we have waited for quite some time for some sort of a correction. i'm nuts or 1.5% qualifies. we will see what comes next week. we will walk you through the price action in some of the individual names. this is indicative. the growthier names that have done well in europe and china, the luxury sector has been the epicenter of the action and the cac 40 has outperformed on the back of these names. this week they suffered. the push back from china on conspicuous consumption. the redistribution narrative developing out of beijing having a big effect on the stops. kering down 17%. burberry down 13%. montclair, lvmh, richemont, all down, all double-digit losses. a scene of get amount of money
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being knocked off. has it been the work from home trade that is worked better this week? maybe? hello fresh trading to the upside. good numbers today. the first upgrade we have seen in terms of guidance this century. that tells you the positive news is not quite over when it comes to the retail story in the u.k. they are talking about significant uncertainty. today's retail sales numbers quite week. i want to get to marcus spencer in just a moment. i want to start with astrazeneca, going nowhere. it is talking about a new therapy for covid-19 that it will push forward with regulators to get approval for. this is where i think some of the action will turn to. we were talking to a doctor in california about the idea that maybe we are under using some of the therapeutics. keep an eye on astra on the back
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of that. marcus spencer, a 14% -- marks & spencer, 14% move. out with these blowout numbers and this upgrade. everyone was in a state of shock. you get a massive push higher in terms of the share price. the other stop is morrison, coming back with another offer. it looks like it has been accepted. we have the fortress story. is the takeover panel going to have to force an option? we will watch. remember the story is on the moment. we've been flip-flopping between these offers and the stock pushing higher and higher. retail a big focus in the u.k. today. alix: let's unpack some of the retail headlines. let's start with marks and spencer and figure out overall you tail -- figure out overall
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retail sales for july. is it fair to say marks & spencer was a reopening backward looking look, are we still peek retail growth or is there something else going on? deidre: if we talk about july, part of what has happened is people have been going out to pubs and restaurants more and we have the european football championship, which meant fewer people were heading to the store. bear in mind that in most parts of the u.k. stores had reopened after april 12. a lot of that pent up demand had been splurged and the first two weeks after reopening. i think july was a dip. people would've also been on holiday. i do not think we should read too much into july. moving into marks and spencer you can see the last 19 weeks trading has been especially good which is why they have raised
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their profit outlook. guy: i think we were all in a state of shock about that. let's talk about what is happening with morrison. it has been a long time since we have seen this news from marks & spencer in this kind of way. let's talk about morrison. ufc dnr raising their offer -- you have cdnr raising their offer. do you think the regulator will have to step in, the takeover panel will step in, will we see a forced option? -- forced auction. deirdre: it is possible. we saw that recently with the drugmaker and the takeover panel requested an option with phillip morris and carlisle. at the moment there is no indication that is the way it is going. one assumes that fortress will probably do that sooner rather than later. at that point, if they do come
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back, it might treat up -- it might reach a point where the takeover panels say we need to accelerate since june 18. this is a -- for the more with them 100,000 employees at morrison it could be quite a trying time as they try to figure out what is happening with the business they work for. alix: more consolidation after? deirdre: it is possible. we have seen what is happening with morrison. bringing us back to marks and spencer, they have a food business doing exceptionally well. there's always been speculation marks & spencer would end up hiring off its food business or facing some offer for that. i think food will be an interesting space in the next few months. guy: in terms of the mechanics of what is happening, cdnr,
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terry leahy is on the board. in terms of the relative opportunity for both companies come is it perceived as being reasonably balanced? does one company or the other potentially have greater opportunity to generate value out of this? cd&r has the petrol stations on the portfolio. how does it stack up mechanically in terms of the opportunity to get greater value? deirdre: that certainly would be cd&r's view that they would be a better owner for morrison because their argument is they have done far more deals in the u.k. then fortress and they have the potential synergies of linking morrison's business with the fuel group. that was one of the driving motivations for the as the deal.
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they also have a large business. on the fortress side, they have done tremendously well with their acquisition of majestic winds. it is not -- majestic wines. it is not only about the petrol stations. there is huge growth for driving online, driving wholesale business, one of the few supermarkets that makes a lot of what they sell. in terms of the value you can extract from the business, i think those private equity firms are finally poised between them as to who would be the better owner. certainly cd&r would be hoping the terry leahy angle would help swing it in their direction. guy: it will be finally balanced. deirdre hipwell with what is happening with u.k. retail. i want to turn to the subject of the fed. mr. kaplan continues to speak at
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the events he is at virtually. this is the critical line. if delta persists, he may adjust his asset purchase view, i.e. the taper may need to be delayed. kaplan was one of the first to talk about a taper but he is now starting to review that based on the data he is seeing from the delta virus. alix: what is interesting is if he says he does not know if asset buys are helping the labor market. if we know the fed is ok to overshoot, the real concern is the labor market. if he does not see asset prices helping, what is the point? guy: this was a topic we were raising earlier this week. the services side of the economy , i wonder whether it is less dependent on the rates market? if you are in capital goods and you have to invest, the interest rate really matters. how you just doubt that is a huge factor. in the services side, it is less relevant.
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if you are looking for an industrial recovery, maybe those asset purchases have a meaningful impact. i am not sure you can force people -- whether interest rates -- i know that will have zero impact on people, i will go back to the office, go back to work in the bar or the restaurants. i understand that argument. alix: this is where i think we circle back to delta and return to office. according to a memo see idc is requiring staff to be vaccinated to return to the office. the idea is you require vaccinations and you do testing, then you may have to close the office or stay home. we have seen this from apple and ibm. that will hurt the services business. that has nothing to do with the fed buying assets. it could help you buy a house but not the actual services jobs for the waiter and the restaurant. guy: absolutely. people are concerned about breakthrough infections. that fear is going and you
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wonder if that keeps people out of the office and out of the bar or the restaurants or the copy shops. we will wait and see. it is an interesting argument as to which side of the economy or focusing on. services, my thought would be that is less rate sensitive and certainly sensitive to those asset purchases. let's look at where european markets have closed. a difficult week for european equities. today we are higher on the weep. we have been lower over the last five days. you have the cac 40 down 3.91%, the ftse down, the dax only down 1%. very much focused on these luxury stops. today we bounce a little bit -- on these luxury stocks. alix: coming up, we have the german chancellor and the russian president holding talks on afghanistan.
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just two more weeks until the election in germany. this is bloomberg. ♪
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alix: you're looking at a live shot of the principal room. coming up, richard johnson, footlocker ceo at 5:00 in new york, 10:00 in london. >> we have to see that the taliban got more support than we would wish and we have to try to talk to them and work towards a point where those whose lives are threatened and those who worked with germany can leave the country. guy: angela merkel speaking earlier alongside the russian president, vladimir putin in moscow. this weekend she heads to ukraine.
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bloomberg's maria tadeo is here with the latest. walk us through what we got out of the trip. everybody is watching carefully what is going on with afghanistan. germany feels like it has been wrongfooted. the fear of migrants is growing. what we learn about the way we've been approaching this. maria: when i watch that press conference between angela merkel and vladimir putin come it is always worth highlighting angela merkel has unique profile when it comes to russia. see is someone -- he is someone who grew up in east germany. she is fluent in russian and has been in power almost as long as bonhomie or prudent. this is someone here -- as vladimir putin. this is someone he respects. it is interesting to note she said we have to accept the taliban has way more support than we anticipated. this is about getting the people out of the country, both
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european nationals and the staff that have worked for them. the situation is not political. there has been no political debate as to what happens next. how do we get all of these people out in 10 days? alix: thank you very much. maria tadeo joining us. all of that for the backdrop of the next couple weeks before the german chancellor elections. what does that mean when we have pmi data next week? holger schmieding, berenberg chief economist joins us now. we get pmi monday, the german confidence data next, what will we learn about the sentiment in germany as we head towards the election? dr. schmieding: we know sentiment is still very optimistic. there is a bit of a dip near-term reflecting much more supply shortages and the rise in the inflection -- the rise and the infection rate much more
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than concerns about afghanistan and other issues. the election plays a major role in sentiment. guy: what you think will decide this election? is it going to be what is happening with delta or what is happening with migrants and the fear of afghanistan? is it going to be the economy? can you give us a read on what you see happening in the key drivers of all of this. i should probably throw climate in as well. dr. schmieding: dr. schmieding: none of these issues seems to be decisive. on afghanistan it is hard to say which way it will impact the election debate. there is more discussion about the migrants that may help the right wing, but there's almost universal consensus germany should take on those afghans that supported the german forces. in that sense it is not such a hotly contested issue.
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the real issue is the party that under nor comes dances -- that under normal circumstances -- has been seen as lackluster. the real issue is whether he can correct this impression, and if so we would still be heading for a victory for the conservatives, that is angela merkel's party. the outcome is unusually open due to the plunge in support. alix: either way, are we going to have some kind of coalition government, and how does that work when there are still so many unknowns, whether you're dealing with climate, the delta variant, vaccinations, boosters, and now afghanistan refugees? dr. schmieding: on many of these issues there is enough consensus between the parties that it will
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work. the real issue at the moment and for quite a while is that on election night we may not know much about the coming government . as opinion polls now stand, what seems to be the most likely combination, that is a two party coalition between conservatives, and would be short of a majority. hence germany will probably be the three party coalition, something it has not had before. there are many options for three party coalitions. it will take months until we know which three parties will agree and who will be chancellor. elevated uncertainty for quite a while might be the first outcome of the german election. guy: germany is very exposed to what is happening in china. i'm try to understand china. i'm trying to figure it out. i would be interested in your perspective. french luxury stocks have been hit hard.
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i'm wondering whether if we were going to talk about redistricting wealth, more middle-class focus out of the government in beijing, whether or not you want to drive a bmw or a mercedes. i'm wondering what the impact will be on the german economy? dr. schmieding: figuring out what is happening is a difficult thing. from a european perspective we cannot hedge too much on the details of china. in china, the clampdown that is happening on the tech sector, at least on some very big firms, if that works or hurt not just capital markets but the chinese economic outlook, then the authorities would probably add a new stimulus so chinese demand is likely to remain robust. i do not see a sign this
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clampdown will go as far as reaching the average client of german car companies and french luxury goods if they just see the top end that is really effective. at the moment i do not see that as a reason to rethink the german or french economic outlook significantly. china is often worth a modest dip in the market at a modest dip in economic growth. begin too strong and china added stimulus. guy: have a great weekend. thank you for much indeed. holger schmieding of berenberg. this is bloomberg. ♪
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alix: jackson hole symposium kicking off next week. the buzz around the event revolving around the taper. we have seen kaplan tops today.
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there with her preview is michael mckee will be going on a plane on tuesday. what are we looking for? michael: it may be more interesting than we thought. alix: you never say that. michael: we figured there would not be anything on tapering but now they may have to incorporate covid. i did do my own jackson hole meme. the fed tapering plan. this is the michigan sentiment, this is philadelphia fed, that is the empire index. you can see the how it is going now part all of take a dive on covid concerns. therefore the fed may have to worry about it. the big news for you is jay powell is going. he will talk virtually from washington to the conference. you can probably stay on nantucket are out of the hamptons. alix can go back to montauk. he will be live on bloomberg at
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10:00 eastern time, 8:00 mountain time. guy: mountain time. that sounds very glamorous. i think will be a great deal of fun. michael's not going alone. important people are going. i had forgotten about montauk. what else do we have coming up apart from the big storm that will hit montauk? tuesday, lie harris is in asia. wednesday -- tuesday kamala harris is in asia. i think we get personal u.s. consumption data on friday. i am looking forward to that. what we have coming up? liz shuler, afl-cio president, joining "balance of power." ♪
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>> from the world of politics to the world of business, this is "balance of power" with david westin.
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♪ david: from bloomberg's world headquarters in new york to our tv and radio audiences worldwide, welcome to "balance of power." earlier this morning liz shuler was elected the first female president of the afl-cio, succeeding richard trumka. later in this hour we will have the first interview with the new afl-cio president on "balance of power." we will start with afghanistan. as united states and its allies continue to evacuate amid reports of protests on the ground we tune to our washington correspondent in record turn at the white house. what is the latest from the u.s. government -- we turn dora white hart -- we turned our washington correspondent annmarie hordern. annmarie: the president will be making remarks at the top of the hour. his first speech, he did not take


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