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tv   Bloomberg Markets European Close  Bloomberg  August 27, 2021 11:00am-12:00pm EDT

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and alix steel. ♪ alix: here is her thing you need to know in europe at this hour. in search of coordination, italy pushing for its g20 extraordinary summit to try and manage the prices. -- the afghan crisis. allowing travelers to skip quarantine a girl of vaccination status. and powell's devastate birth. chair powell reassuring -- and powell's devastating taper. i am here in the u.s. joined with francine lacqua. powell seemed to deliver what he wanted. a dovish type of taper. some tried to say it was not dovish at all. he is very clear on what the
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timeline is to some extent. francine: i know twitter has people staying it is a dovish comment. if you look at the initial market reaction, stocks up, yields down, dollar weaker, corporate credit tightening. all things equal to a dovish speech. this is what the markets are doing in europe. there is a little bit of assurance. monday is off -- also a holiday in the u.k.. you can see the european stocks 600 probably traders taking a little bit of assurance from comments of jay powell that they will guide the markets through this and that is what people were expecting. gold climbing. it is definitely climbing for a whole week. this was in part to what we heard from jay powell and we have some great charts that are put -- that are put together. old was wavering, but it has not done badly at all. alix: it has not.
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it is helped by a weaker dollar. in the u.s., here is what we are looking at. the s&p up by .8%. cyclicals are performing, materials, etc. in the indeces, momentum trades are outperforming. the nasdaq is beating the s&p as well as the dow. the five-year is really outperforming. in a 10 years space, you have yields down by two basis points. it is all speaking to that relief rally. the dollar is down by .3%. if you are going to have a taper timeline, a dovish taper, that is how the market is reacting. brent crude also getting help from a weaker dollar, but very different in this case because you have tropical storm ida hitting landfall tomorrow in louisiana which is the 16th anniversary of hurricane katrina this weekend. also it is going to hit cuba, western cuba. that area shutting down.
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it winds up having a severe impact on oil rigs and companies -- as companies start to vacate those platforms. francine: we will talk more about the markets. let's start with new travel guidelines. the u.k. and canada moving territories to its green list. joining us now is sid phillips. some countries joined the green list. if you are vaccinated or not, does not matter. turkey was hoping to be on the list and they are not. sid: absolutely. turkey is one of the major winter destinations for the u.k. and that did not happen so travel companies are a bit disappointed with the outlook at the moment for the winter season. alix: what about the u.s.? the u.s. was allowed on the list. do you think there will be any updates there? sid: there was some concern, especially since the european union is considering putting the
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u.s. off its white list. there was concern that the u.k. might follow. the u.s. survived on the amber list. that means vaccinated travelers can come in without quarantine. alix: i can still go visit guy. thanks a lot. bloomberg's said philip joining us there. -- sid philip joining us there. right now, you have stalin reporting a record number of new infections while new research papers showing that people who were covered from covid in the earlier waves have a lower risk of contracting the delta variant. joining us now is a bloomberg consumer and healthcare reporting. walk me through the study and what we learned from that. dierdre: this is a large real-world study. it has not been reviewed but what it is showing is that people who recovered from covid-19 during one of the
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earlier waves of the pandemic of the are to have a lower risk of contracting the virus again than those who have two doses of the vaccine from pfizer and biontech. people who had a vaccine were almost six full times more likely to contract an infection and sevenfold more loudly to have symptomatic disease. this is good news for people who have survived covid, but the danger of studies like this is that this might encourage vaccine holdouts not to get the vaccine because they think if i get covid, it will be fine because i will have better natural immunity. francine: thanks so much. deirdre hipwell there. deutsche bank going through some of the things we saw. the asset manager hitting back at claims that it overstated the amount of esg assets. joining is now is steven arons, bloomberg banks reported. we broke that story yesterday
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and now they are heading back and saying that is not true. stephen: that's right. they are not denying that their former executive who has been making these allegations, many of the allegations are not true, but they are saying is that they stand by their disclosures. he is alleging that they describe management as esg reminded, even though they are not really. the dws has given information where that is not right, but the shares are down again today. has declined a little today. it seems like investors are not completely buying into this dws exclamation. alix: definitely not over for this space with no cohesive rules there. thank you so much. we have breaking news. the pentagon briefing underway. the pentagon saying that there was no second explosion in kabul on thursday despite an initial contrary report. joining is now is annmarie
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hordern. this is 24 hours after the very chaotic thursday. what are we learning? anne-marie: very chaotic where we thought there was going to be, there were two terror attacks, a suicide bomber outside the at the gate where the u.s. military is letting people in and as well as a nearby hotel that is about a mile away that many people that visit afghanistan in kabul would stay at. now we are hearing that there is actually only one exposure from the pentagon. the pentagon saying that it is a very dramatic event. sometimes ports can get misrepresented. we know that there was only one suicide bomber and that was at the abbey gate. we are learning that within the last 24 hours, they were able to evacuate another 300 americans, bringing the total to a little bit more than 5000. that breathing is ongoing and will continue to get updates from the pentagon. we should make note, given the fact that the intelligence committee does ss that this was carried out -- does assess
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that this was carried out by isis-k. these attacks are very real, something that the military is prepared for. we are going into a very precarious and scary situation on the ground. quite dicey situation in terms of finishing this evacuation by august 31 that the wet -- with the fact that they do know that there could be more terror threats on the ground. francine: we heard from the french, we heard from the u.k. that they will end some of their analyst very soon because of the chaotic situation in. will the u.s. continue? annmarie: we have heard from european international partners that they are starting to wind this down. the u.s. says they will continue until august 31. we do have the president ask the department of defense as well as the state department to draw up contingency plans just in case. right now, the military, the pentagon thinks they can get this mission done by august 31. what comes after august 31 is interesting.
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we have the italian foreign minister meeting with the russian foreign minister just about one hour ago and the italians are really pushing and they are really pushing for a g20 meeting to talk about what happens post august 31. russia, china, and turkey are a part of the g20 and we have heard from the likes of president erdogan of turkey that he would want to maintain of -- maintain the security of that airport in doing a deal with the taliban. a lot of partners would want to see that happen. we need to see if yesterday's suicide bombing at the kabul airport, if it was just that one suicide bombing, is that going to potentially change the security of the airport after august 31. francine: thank you so much. annmarie hordern at the white house. coming up, former u.s. secretary of homeland. coming up talk markets, fed, jay
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powell, the stoxx 600 on track for a seventh month of gains. we will discuss all of that with aberdeen standard investments shortly. this is bloomberg.
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♪ >> the timing and pace of the coming reduction in asset purchases will not be intended to carry a direct signal regarding the timing of infrastrate left off for which we have our take later day different and more stringent test -- articulated a different and more stringent test. francine: that was chair powell. joining us now is luke hickmore. thank you for joining us.
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is anything surprising of what you heard from jay powell? does it make you change your portfolio structure at all? luke: i think i have ended up a little bit more bullish post chair powell. there are a few things that started the move afterwards. we have seen crossover high-yield index from cds moving a little tighter in the u.s. and through the cdx station of that. bitcoin is moving. that is exciting. other than that, it kind of felt that the fed was trying to avoid flattening at the long end of the curve. this is a set up. we know tapering is coming. he made that very clear. the timing, who knows. it is probably going to be this year. the sequence where they have to get really tough criteria for interest rates to rise.
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he does not want those rates to rise, flatten the curve at the front end where the backend is already flat. we all know if that inverts, that is telling you a recession is coming as it did in september 2019. nobody could have seen covid's, but tens saw covid. they want to try and avoid that. alix: what we also saw this week was a decent selloff in the bond market that was led by europe. francine picked up on the pack that a chief economist paved the way for discussion about reducing test purchases. do you think that we see the end of policy divergence now? do we need to start playing that are not? luke: probably not. the problems are still structurally generating inflation have not gone away. the ecb yield -- ecb will remain in emergency purchases.
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the asset purchasing program is likely to continue in the background until they see some inflation coming through. that remains difficult and where that is going to happen across europe. the u.s. is kind disagreeing with jerome powell. it is not as transitory as he suspects. there are more structural issues. mark on europe, they are not. -- in europe, there are not. francine: how difficult will that be to convince the market that is the case? luke: in europe, not difficult at all. in the u.s., increasingly. one year ahead of inflation, they still 4.6%, that has been high for the last three months. people are worried about inflation and if that really catches hold in the psyche of the american people, it is hard to stop inflation. probably not massive, but even if it comes to 3%, he is going
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to have to speed up tapering to get to that point where he can start putting rates up. alix: what kind of risk -- different question. how fast do you think the fed will actually taper once they start? if i go back to my previous question at the ecb, someone said it earlier today. they have to do something if there is a more aggressions push to pare back the asset purchase program. luke: the currencies are going to give us that kind of clue or if -- on if we get the dollar running away. he will have -- the ecb will have to do something again. let's see what next month's payrolls are going to do, whether that starts pushing on the employment button as well. it does look like delta may have peaked. i suspect given some of the other fed members you have had on today, that it feels a faster pace of tapering than 2013,
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which was roughly a year. this feels maybe six months to nine months in terms of tapering, which the markets seem pretty well set up for. even when we get rate rises, is probably not going to be much either. francine: i know you were tongue-in-cheek. you mentioned crypto. were you suggesting that crypto now follows fed speeches? luke: it is just the trade. i have none for clients. i suppose it is fair enough. if you are pushing money into people's pockets and they are finding something to do with it, it seems to be a good beneficiary of that. alix: you get the momentum train -- trade like the nasdaq outperforming. what has also done billy well is tech in europe. we have european stocks heading to a seven monthly gain. that would have been the longest
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since 2012 and 2013. can you buy european stocks at this level and will this rally sustain itself? luke: i thing my favorite place in europe is the u.k.. i would be buying may be small cap u.k.. there are possibilities here for recovery. europe, i do agree. the head of european equities is very much pain on small and mid-cap situations around europe. he is seeing a lot of growth there. francine: you love the u.k. more than the rest of europe, despite significant pounds of volatility. luke: the labor shortages a difficult one. you go and the supermarket, there are many empty shelves and it is going to push up. it will push up inflation. people need to realize here in the u.k., we have people in jobs too cheaply for too long. there is a cost for that.
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for now, there is a chance -- i think we are getting growth coming through. we are well on top of covid. even with the big numbers in scotland today, i think that the growth is coming through in the right places. small and mid-cap in the u.k. in particular. alix: thanks. really appreciate it. you cannot get milkshakes at mcdonald's. a different story in u.k.. luke hickmore, thank you very much. this is bloomberg.
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♪ francine: a look at some of the biggest business stories in the news right now. china is taking steps that could thwart the ambitions of tech firms that want to list abroad. dow jones reports the government plans to ban companies with
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large amounts of's consumer data from going public in the u.s.. the move could give beijing more control over the complex structure. chinese tech companies used to cite research on foreign investments. peloton shares are tumbling after delivering more than expected quarterly results as the at-home fitness company/the price of most of its -- slashed the price of most of its consumer bikes. over its reporting of treadmill injuries. >> we will always cooperate with authorities whenever there is an investigation. we are proud of what we are doing. we are making the right decision. we don't have any thing to hide. another government agency, the consumer product safety commission, also investigated us. we are working with them to get on the right side of the line of safety for our tread and a lower-priced tread will be for sale next week in the u.k. and
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canada and the u.s. for the first time. ritika: there is a chance that audi could build cars in the u.s.. they spoke to bloomberg television about the chances. >> discussions on the possible production in the u.s. are ongoing, but we do not know at the moment what the result will be, but we do have factories where we produce platforms that audi also uses. it is super important for us. the customers are important for us. the likelihood of us producing in the u.s. is there. ritika: he also said that they will stop making combustion engine vehicles in 2023. that is your latest business flash. alix: thanks so much. this is obviously part of volkswagen's large push into electric vehicles. apparently, audi's new cars when
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fully electric after 2026 onward. my issue is the rates, but if you don't have charging stations available, i don't know how you solve that problem the matter how many ev's you make. francine: that is why you need the infrastructure bill why in the u.s. to have the component of building roads. you can actually say i'm going to give $1 billion, $2 billion to the state toward infrastructure so that we have ev's, but as a -- does that come after you have a car? the other thing is battery and power storage. it goes back to the amazing scoop saying that caribbean wants a valuation of $80 billion rivian rivian -- wants the valuation of $80 billion. they are the most serious contender to take on tesla. alix: it depends on if you can get the price down. once you get to ready for ev's, then you are good.
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you are definitely off to the races. that is also a different beast because that is trucks versus regular cars. the third leg to all of this are huge commercial trucks that are transporting stuff. once they can start electrifying that, which is a very different story, then i think we were in a different spot. whether or not you and i get an ev will not make much of a difference. whether or not amazon will be able to deliver its goods in an ev, that is a game changer. francine: they are building a lamborghini that is ev, which matt miller was in awe because you cannot hear it's engine. if everything is going ev, you are right. you just wonder the infrastructure on whether that gets built in time and how fast they can ramp it up. alix: if you can use hydrogen for fleets, that is different and do day trips and come back and refuel, that could be a different mix of technology that
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is expensive. still definitely in flux for that. we want to recap the pentagon had debriefing underweight here in the u.s.. apparently the pentagon is saying there was only one blast that hit kabul yesterday. you do have spokesman kirby saying there is not a significant evacuation role still sticking by the august 31 deadline. still saying that they will not allow attacks on homeland to imitate again. the question was what is the appropriate response. we will be speaking to the former u.s. secretary of homeland security, coming up. the european close is up next. really strong month again for european equities. this is bloomberg.
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francine: let's take a look at where european markets are trading. 22 seconds until they close. a nice day, possibly because of the dovish and fairly precise speech from jay powell at the jackson hole virtual symposium. they have had a pretty good month overall. the longest winning streak on a monthly basis for the european stocks since 2013. still getting .4%. a lot of technology stocks will be the ones that did the best. onto individual indices. it would give us a good indication of whether there is a difference between the cac 40, the dax, and the ftse. here in the u.k. we have a bank holiday on monday. a lot of stocks are closed and traders out for an extended weekend. real estate, technology. we did spend a bit of focus on last couple of days. probably ones doing the best in the last two weeks of august and then the regulatory from china.
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basic resources getting 2%. these are some of the stocks i'm watching. the biggest losers in today's trading session, just eats. new york city put some price caps on how much you can charge for food delivery. you ventas, this is a good one -- juventis, i do not know if this is good for christian en route although -- rinaldo. the biggest star on instagram. he was not cheap. brunello pacelli, bit of pressure on luxury stocks. alix: good stuff. let's go back to the pentagon briefing.
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potentially there was only one attack yesterday we saw. yet the spokesperson for the pentagon, mr. kirby, saying there's no significant evacuating role for the u.s. after august 31 in the u.s. capabilities to secure the kabul airport has not changed. it is hard to know the situation on the ground. information is moving so quickly and it is modeled. -- it is muddled. there is much more to do, whether it is working with the taliban. there are still about 1000 americans that need to be evacuated. the get some perspective with michael chertoff, former u.s. director of homeland security, chertoff group founder. it is a pleasure to speak with you. i am not happy this is the occasion we get to do it. what is your best knowledge of what kind of conversations will be taking place in the white house right now as president biden pledges to have retaliation and is sticking with
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his august 31 deadline at the same time. michael: conflicting challenges. they do need to evacuate the americans. on the other hand the president would like to it here to a statement on august 31 to be consistent. in dealing with the taliban, that has been a big issue for the taliban and getting their cooperation, maybe honoring, at least in general terms the deadline. this will be a very dynamic situation. francine: do you see the u.s. working with the taliban? michael: we may wind up having some kind of cooperative relationship, at least for a time for a couple of reasons. the taliban needs to consolidate the governments of afghanistan and may want to have american acquiescence.
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acquiescence of america's allies in order to make this transition, but beyond that, ironically, they are now facing their own issue with radical islamist. because of isis-k, which is hostile to the taliban. they may find themselves in the position of fighting a terrorist group which would make for what they call strange bedfellows. david: indeed -- alix: indeed, i have to wonder if it is furthers , the taliban now seems to be looked at as moderate will stop the u.k. reporting two british nationals were killed in the public tax yesterday. -- in the attack yesterday. how does the u.s. get the rest of the people out? michael: they made to find additional staging areas and use some form of transportation. they may still be able to get people into the airport in kabul and fly them out and they may be
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able to work out an arrangement to find some other airstrip they can use. i think there'll be pressure to get this done over the next three days and the biggest logistical problem is getting americans from wherever they may be in afghanistan to a location where they can be safely removed. francine: is it better to scale back the evacuation until they have secured it because of more threats of attacks? what the taliban, if they could work together with the u.s., with the taliban give the u.s. and allies more time to get out? michael: it would be the taliban cooperating with america and its allies to come up with a schedule that might extend it over a period of time. that does not necessarily have to look as if it is consistent with august 31 withdraw because
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it depends what you mean by withdraw. it may mean you are no longer occupying a permanent position, but you still have the ability to fly planes in and out. alix: is the taliban weak? michael: its weakness is a question compared to what. the government -- the afghan government collapsed and was slowly undermined over a period of months before what we just saw. i do not think they have consolidated their government. they are composed of different factions. it is not a unitary organization. as we saw with isis-k their other extremist. they will have their hands full in managing the ability to transition to government.
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francine: will it lead to more attacks on u.s. soil? michael: that is the most important question for the president and the administration. whenever there are extremist groups with certain freedoms to work on weapons like isis did in syria, that creates a big risk for the united states. it also creates a risk for our allies in europe, a bigger risk. we need to make sure we are vigilant in monitoring what is going on in that part of the world, in afghanistan, and seeing how that may become a platform for direct or indirect attacks against americans in other parts of the world. alix: pakistan was warning of a power vacuum earlier. they are shutting their hotels everybody, even americans who
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are seeking refuge in the meantime. where you think the biggest power vacuum is and how it affects the geopolitical inner of that region? michael: pakistan harbored the taliban for a considerable period of time and in many ways there are strong sympathizers with the taliban. it would be in our interest to make sure afghanistan -- to make sure pakistan does not succumb to what afghanistan has experienced. pakistan has nuclear weapons and that would put us in danger way beyond what we are seeing before. i am not predicting that -- we will have to see whether the iranians will take it manage of this instability in order to assert themselves further in the region. i would not be surprised if the indians were not concerned because they look at afghanistan as a potential launching point against them. all of that region of south asia
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is one which will continue to occupy part of our attention because of fears of instability. francine: thank you so much for joining us. michael chertoff of the chertoff group. the briefing of the pentagon is still ongoing. we found out just moments ago that they think only one blast hit kabul yesterday. alix: still sticking to that august 31 deadline as well. markets yesterday seem to have an initial reaction but now it is harder to digest how market should react to afghanistan. the real focus is on the fed. what we learned, not a lot. no rush on rates. we will bring in the latest fed speak from jackson hole with atlanta fed president raphael bostic in st. louis fed president jim bullard. this is bloomberg. ♪
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ritika: this is "the european close." coming up, fed president loretta mester at 1:00 in new york, 6:00 in london. this is bloomberg. let's check, bloomberg first word news. i am ritika gupta. large crowds gathered around the kabul airport despite warnings of more terrorist attacks a day after 13 american servicemembers and at least 75 afghan citizens died in explosions there. the wind over civilian evacuations has all but closed for thousands of afghans. -- the window for civilian evacuations has all but closed for afghans. martin progressive democrats on a collision course over how to pay for president biden's economic agenda. the president has proposed tax hikes on wealthy households to pay for in new spending. progressives are seeking more but moderates want fewer tax
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hikes and are hesitating on the spending. that is where the fight will come in starting next month. tropical storm ida is forecast to grow into a powerful hurricane. it is hitting oil and gas production in the gulf of mexico. oil companies are evacuating. ida is forecast to strike cuba, regain strength tomorrow, and make landfall over louisiana and mississippi sunday and monday. global news 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. i am ritika gupta. this is bloomberg. alix: part of the significance of what we will see with ida is it is headed straight for louisiana. 16 years ago this weekend was hurricane katrina. all indications are could be pretty bad. winds could reach 120 miles per hour. children's hospital medical center is sending home patients. other hospitals are locked down until sunday morning it would
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get worrisome. francine: you're probably closer to it than i am, but it is clear when small towns start telling residents to flee and hospitals are sending home patients and plan to lockdown before landfall, it could be worse than what we have seen the last couple of years. our heart goes to all of the people who lost family during hurricane katrina. i do not know if it will have a direct impact on the price of oil but it is the kind of thing that if it does go the course we think it could go now, it could hurt some of the rates. alix: this is the typical oil reaction to the headlines. you get the spike in prices, natural gas the same kind of this is par for the course. things will get back up and running and business of usual. the issue is on land.
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the disaster modeler says as of now you could be looking at $25 billion in damaging. will be watching that for the weekend. jay powell says the fed could start tapering this year ahead of its virtual jackson hole -- ahead of his virtual jackson hole speech we got a view from many, including atlanta fed president raphael bostic. pres. bostic: when i talk to businesses, what they have told me is this is episodic. we believe this is driven by the pandemic circumstance. what is also become clear is the episode will last longer than people expected. we will figure out how to incorporate that into our modeling. i would safer meet what i am seeing is consistent with the outlook i had before. i am still comfortable we are in a good trajectory with the economy and we should see fairly robust growth. michael: let me put you on the others of that big table at the fed. those who might argue for a delay.
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is there an argument, because what seems to be happening is a problem on the supply side and you guys adjust the demand-side. pres. bostic: it is true there are supply-side challenges. we have all heard many stories about supply chain issues, trying to get goods to product to meet the robust demand. i am definitely worried about that and thinking about that. what i would also say is what we have seen come in businesses consistently tell me they are having record volumes, the demand is superstrong, and so i do not think that pushes in a different direction than the types of things we're thinking about in terms of removing some of the accommodation. i think the economy is performing extremely strong and any weakness we will see is pulling us off of high numbers initially. michael: there seems to be a feeling on wall street that if you end tapering and particularly if you do it quickly that will remove support from the equity markets the fed
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has been contributing to the big rise we have seen in the indexes and maybe even to inflation with qe purchases. how much you worry about financial market stability with a switch and policy coming up? pres. bostic: i always worry about financial stability. it is important we make sure our financial system remain strong and resilient so it can provide the services that are needed for our economy. what i do think in terms of our policy is we are aimed at two other things, we are looking at maximum employment and stable prices. we are doing pretty well making good progress in both, which suggests we should be trying to get our policies back into a more normal situation. we have been at a very extreme level of accommodation and i think the strain in the economy calls for us to pull all that and let the economy stand on its own -- to pull off of that and let the economy stand on its
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own. we still a fair amount of energy and momentum. we can do our tapering faster then we have in previous episodes because of that momentum. my expectation is the economy will continue to operate in a strong way. francine: that is fed president raphael bostic speaking to us earlier. we also talked to st. louis fed president james bullard about his outlook for the year ahead. pres. bullard: the key word is optionality for 2022. i would like to taper now and get it finished by the end of the first quarter. at that point i think we could assess what is happening in the economy with respect to inflation. by that time we will have many more jobs reports and it certainly looks like they will all be strong to varying degrees. unemployment will tick down at that point. that way we will be able to see
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in the first half of 2022 if inflation is moderating or not and if it is moderating then we were in great shape. if it is not moderating, then we might have to be more aggressive . i think that optionality has a lot of value right now. i think the purchases do not have much value right now. it seems like the trade-off is just right to me. let's phase out the purchases and give ourselves breathing room in 2022. michael: as you look over the forecast horizon, do you think inflation sticks around? pres. bullard: right now today i'm saying 2.5% or higher in 2022 core pce inflation. right now we are at 3.5% on core pce inflation. that is the committees preferred measure of inflation, the one
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trying to end the summary of economic projections. it looks like we will have quite a bit of inflation this year. the 3.5% number from one year ago is higher than it has been in 30 years. alix: that was st. louis fed president jim bullard speaking of the jackson hole symposium. overall, i am getting a lot of economist notes, they are looking at the taper announcement in november, not looking for a rate hike until the end of 2023. a lot of pressure next week on that jobs number. francine: it does put a lot of pressure on the jobs number. it is interesting jay powell was maybe a glass half-empty on the labor market compared to some of the hawkish comments we have from other fed officials. it was clear to point out employment is now 6 billion below february 2020 levels. he did not paint a picture that was there some a jobs opening and we cannot fill them.
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i feel like there's a lot more caution and much more will depend on the jobs number. alix: a lot of strategist say we are waiting for the fed. it seems like the fed has been clear. i wonder what the catalyst will actually be, particularly if they will not be selling any assets, they will just be running off, reinvesting them, which is different from actively selling which is different from hiking. i wonder where the volatility will then sit and in what asset class? francine: the truth is if your data dependent, and jay powell said he wants to taper, but i thought it was quite dovish because he wants to wait for data on the delta variant, which he spoke very little, which i thought was surprising on that. it means the market maybe once the certainty any central bank can give them. alix: they want clarity. that does not exist. this is bloomberg. ♪
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alix: news for you. italy will reinstate covid restrictions for sicily. that news crossing right now. lots of stuff happening. monday a u.k. bank holiday. tuesday you get the deadline for the u.s. withdraw from afghanistan. a lot of ecb speakers plus france and italian cpi. francine: italian cpi is one we've been watching out for. we've seen a flareup in covid cases. on wednesday opec is meeting. alix and i were talking about the hurricane that could hit the gulf of mexico. the euro zone, france and germany pmi is a good indication of what kind of thinking for the
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summer. on thursday factory goods orders and durable goods orders. the big one on friday, the u.s. jobs report. alix: also manchester united confirms rinaldo's agreement. francine: and he has 333 million followers. i cannot get over that. he is the person who has the most followers on instagram. period. alix: francine, thank you for joining me. francine: that is all i have. alix: thanks for joining me. i will see on monday. happy weekend. coming up on "balance of power," gregory meeks will be joining david westin. i am headed over to bloomberg radio for dab digital radio. this is bloomberg. ♪
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>> from the world of politics to the world of business, this is "balance of power" with david
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westin. ♪ [indiscernible] -- david: from bloomberg world headquarters in new york to our tv and radio audiences worldwide , welcome to "balance of power." we heard from jay powell speaking virtually at the jackson hole symposium for economic policy. for an early read, we turn to kriti gupta. did the markets react? kriti: they certainly did. this is pretty normal to see the markets react. traditionally when you see a jackson hole move, the week before is always a risk on week on the exceptions being 2012 and 2016. we went in on a risk on tone and got a bigger reaction. stocks appointed percent. the initial reaction was down because chair powell did say tapering what happened by the end of the year. that should be bad


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