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tv   Bloomberg Surveillance  Bloomberg  October 27, 2021 7:00am-8:00am EDT

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>> it seems like the economic cycle is moving at warp speed. >> they are pushing back. >> the market has repriced. >> very quick to price out the fed in the middle of next year. >> we don't think they will raise rates to limitless 2023. jonathan: from new york city and audience worldwide, good morning, good morning, this is "bloomberg surveillance." tk, coca-cola, it's a raise and numbers dropped. tom: what i see is mcdonald's,
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way better than 10%. jonathan: that something they don't have, 10% on the estimate. tom: i'm watching the 90 day fiance on the one there. jonathan: i bet you are. confidence in the underlying momentum in the business. tom: we saw adapt and adjust and we could see that tomorrow. does it filter down from big names, juggernaut tech names. mid-cap to small-cap, that's a tangible question. jonathan: i said it before and i will say it again, so far, so good. >> is this just the beginning?
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frankly companies have been adjusting until now and will it be more difficult? john, this really is a question. can we count on that going forward? jonathan: corporations persist, coca-cola talking about elevated commodity prices in 2022. the officials and the policymakers, that's a date change. corporate america is talking about this going way beyond. >> we put out a stock -- chart one part gets delayed in the whole thing gets thrown off. how do we get through this? jonathan: equity futures are down three, negative .1%.
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it's the move that gets the attention with a move towards 50 basis points and we breached the level briefly. the smallest of challenges to chairman powell. tom: each move is not a big deal but i'm sorry, we are back to 110 basis points on the spread. can you imagine a flat curve? jonathan: how hard can they push back? lisa abramowicz: it's hard to push back given that each side is looking at demand-side pressures in the u.s. economy. is it the same for the egg of america, bank of ecb? the expectation, no move in terms of the rates. the expectation is to curtail the bond purchases. but here's the issue, how much they indicate the curtail from's labor market shortages that most
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people think will abate versus demand-side pressures like the reserve is facing. ford, general motors, earnings are front and center, competing against tesla, worth $1 trillion. how do they say yes, we are going to get a piece of the pie and invest our cash? how much are they getting in vehicles and how much can they keep the prices as high as they have been? they've been on a tear, 20% year-over-year, trying to get a sense of just what we expect to see with the rate hike cycle over the midterm, not just the near term. this is where a lot of the action has been but of late you have seen the two-year take the lead, people pricing in near term hikes, but fewer of them as the reserve reckons. jonathan: did you think that 50 basis points would be seen as a small challenge for the federal reserve? tom: no, that's how
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silly it is. jonathan: the global head of macro strategy at wells fargo joins us now. did you think 50 basis points on a two-year would be seen as a fall -- small challenge to the federal reserve? mike: frankly it's crazy. two or three months ago, 50 would seem like a big number. but i agree with you, it's pretty crazy for that to upset the federal reserve and frankly we think that the expectations and the rate hike are seriously overcooked. i agree with your point, they might not push back to aggressively but the market is getting ahead of itself. to some degree the fed doesn't know what to expect. thinking about the source of inflation, yeah, its supply chain, but what can the federal reserve or the bank of england to about chips or the containers going from shanghai to los angeles?
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not much. but they can deal with expectations and i think that policymakers are concerned that expectations have become unglued. what they like to tamp it down a bit? yes. aggressively? i don't think so. jonathan: we all -- tom: we all had a belief, call it summer, late summer into autumn, going into the edge of november. how do you on a global basis extend out the induced boom economy as it tries to get back to something normal? are you in 2023? mike: it probably is. 22 there are crosswinds at play and i'm sure sarah would agree, the big thing that strikes us is the level of uncertainty out there. you just don't know how quickly these supply issues will be resolved and with respect to the consumer basket there has been a tremendous bid for goods and people have been surprised i think that services languished.
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what if that except steam and you see consumers picking up a lot more interest in services with inflation staying high for quite a while. i do imagine that it will be 23 when we get a much more normal looking economy. lisa: calling it supply driven, but earlier in the show we heard from rebecca patterson of edgewater that she thinks it is demand driven. why are you confident that it is driven by supply chain disruptions more frankly than the fact that spending has remained so strong in the face of frankly even the higher unemployment rate simply because some of those checks and others support? mike: i can't recall any recession ever, frankly, in which you have had consumer spending stay pretty aggressive with personal income remaining pretty high, especially in the u.s. with the federal support. but on the supply side it's
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interesting when you look at how inflation has been pushed, it seems much more to be on the good side. i think that until you get the switchover to services, from our perspective it's more goods and on the supply side less demand. lisa: what will make you shift your view on that, what data? mike: call it zero price increase over the last five or six months, something like that. if there is a decent uptick there that will be an indicator that things are switching. 7% goods inflation is flipping. that's got to be a case where the pot comes off the boil. jonathan: are you a buyer on the treasury curve? mike: i'm not in here's why, like most of the world chairman powell suspects tapering next week and it's priced in if everyone expects it. i think most of it is, but not all. when you consider the treasury
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curve and what investors really want to buy, the linchpin has been the five-year. call it four or five years, something like that. until you get the taper announcement. after that we might reverse. jonathan: interesting. mike schumacher, thank you. next week, full coverage, special programming is always on the federal reserve decision, the fed decides. there will be a news conference after with chairman powell. tom keene, a little more detail from mcdonald's. this is pretty interesting stuff, the team breaking it down, the regional story, china is the clearest negative, sales slipping due to the covid-19 resurgence is. insight into an economy from an individual company. there it is from mcdonald's on china, the clearest negative. jonathan: they are doing it
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differently. pediatric vaccine in america, how removed is the rest of the world from that wonderful news? jonathan: clearly the threshold is different but to hear a company say what they are experiencing on the ground gives you more color. lisa: and frankly a hint as to what the potential slowdown could reap in terms of how it trickles out into the rest of the complex. i mean how confident are we about the numbers they have been putting out in terms of an accurate perspective? jonathan: we have seen it in bank after bank. mcdonald's sales, plus 12.7%. revenue over at coca-cola, 13% to 14%. that's the full-year view, 12 to 14 is a small upgrade. it's a beat as well once again. looking good for corporate america once again. jonathan: they are adapting
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within a goosed boom economy. growth revenue estimated for coca-cola with a center tendency over 13% and that's extraordinary. those aren't normal numbers. that's not a normal banner on tv and radio. all you need to know is that it is supposed to be nominal gdp. it's a boom. jonathan: 1500 restaurants globally. i know it's your favorite restaurant. tom: the paragraph on that, mcdonald's in zurich, switzerland, that value meal. jonathan: expensive. they are closing restaurants in the u.s. in 2021. but 800 net restaurant additions. i think we should go to mcdonald's to make a video. what do you want to eat? tom: i usually have a double apple tart thing. jonathan: ok, you double them up. do you really? tom: oh yeah. jonathan: i shall record that
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later. radio and tv, i will spare you that. from new york, this is bloomberg. ♪ laura: on capitol hill, democrats have unveiled two new taxes that they hoped would pay for the social spending package of president biden. one targets billionaire assets, all those who earn $100 million a year for three years in a row. the other is a minimum tax for corporations requiring that companies that report more than $1 billion in profit should pay at least a 15% tax rate, even if they qualify for lots of tax breaks. china, flat u.s. assets on the united nations organization. beijing said that the island has no right to join the u.n. half a century after it was kicked out. antony blinken calling on other countries to join the u.s. in pushing to give taiwan a greater role at the u.n. and it's
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another blockbuster deal involving hertz and tesla. uber drivers in the u.s. will be able to offer services with tesla electric vehicles rented from hertz starting next week and meanwhile they sign up with carvana to dispose of rentable cars they no longer want. earlier this year -- this week they made a deal with tesla. shots for school-age children for coronavirus in the u.s. is on track for approval in the panel of expert says that the benefit of the vaccine made by pfizer bion tech for children five to 11 exceed risks. global news -- 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'm laura wright, this is bloomberg. ♪
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i think that there >> is a high probability >> that that is going to happen and i would hope that it passes wednesday evening. the president needs to take something with him by the end of the week. jonathan: the words of senator joe manchin there from west virginia. tom keene, lisa abramowicz, jonathan ferro, just a little bit light, soft and lower on the negative two s&p 500 with numbers so far doing what they do, beating expectations. coca-cola, mcdonald's this morning. jonathan: -- tom: the cynic in you is 100% right. i don't like the word beat, frankly, but it's the way we are beating with a revenue moving forward and outright guesstimates on revenue. it's really something. jonathan: people thought that the constraint on high prices might weigh in on demand but has that happened?
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it doesn't look like it's happened in a big way. tom: it's microeconomics with ambiguity and a give-and-take and frankly there is an unknown and we are learning as we go in a natural disaster. but i'm sorry, company to company, things are better than good. jonathan: and it's going to go on longer. coca-cola is expecting elevated commodity inflation. tom: doug has a long-term vision on amazon. what's our vision, our collective vision, john, of some of these companies, i don't care where they are, three years, five years, 10 years? no one is doing it, no one is thinking that far. jonathan: we will hear from washington soon. tom: jack, i'm confused, you provide accuracy and brilliance. do these bills pass together or separate? where do we stand on
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that right now? jack: democratic leadership it would seem would like to get the infrastructure bill passed. it's already past the senate and is waiting in the house. after meetings between speaker pelosi and for miller jaya paul there does seem to be a significant amount of opposition to voting on an infrastructure bill until there is an actual boat on the -- vote on the tax and spend reconciliation bill at a point where they need to try to with the votes to get to the point where republicans can make up for any loss, progressive votes could do it, but as of late yesterday it didn't look like there was a clear path forward on doing infrastructure without reconciliation. tom: from the congressman west -- west virginia, they talked about a vague agreement in principle.
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is that what you are giving, jack? agreements in principle? or are they actually legislating? jack: right now they are talking bullet points rather than legislative language and it would probably take a while to turn these proposals into legislative language. what we saw last night on the so-called billionaires tax proposal from senator wyden is a summary and somewhat detailed list of how it would work, but we don't have a bill on that. senate democrats, to support this, they said they need more detail. so this is a sort of proposal that is in principle they might get to a real agreement in principle, signaling that they can pass something with a majority of the senate, but a lot of times when that kind of thing happens with a handshake deal, it can take a while to
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turn that into legislative text. and then issues pop up, so we are not really that close to the finish line right now. lisa: i feel like we have been having the same conversation for the last couple of months or even longer. do they have a deal, don't they have a deal, we don't know. how can you judge progress at a time when there are so many disparate parties going back and forth in these negotiations? jack: one, if they announce a deal, even if you should be skeptical that they are fully on board, it's a step forward because lawmakers don't want to hold a press conference and take pictures and say they have a deal and then have everything fall apart. but really you cannot say that they are going to cross the finish line until they have the boat. especially in a 50-50 senate with a very contested house, until it passes the chamber. you probably remember with the infrastructure bill, before they
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could pass it in the senate they announced two deals. a deal on what would basically be in there and they turned it into legislative text. there were issues that came up in the details and then another big announcement saying that there was a deal. the reconciliation bill is complicated enough that we could hear about multiple deals moving through these phases. each is a step forward but it isn't passed until it's past. jonathan: i ask this -- lisa: i ask this as biden heads to the g20 meeting and the disagreements in the nation tie his hands in terms of convincing allies that this time is different and that frankly america is back with respect to how it acts in the world. a lot of people say that it is too divided to have that role. how is biden trying to message that as he heads to meet with national leaders? jack: on the question of whether it is too divided, that may be ancillary to the fact that biden needs
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some accomplishments, needs major legislative accomplishments and is struggling at a point where his polling is not great and he's trying to push things a crossed. probably the bigger questions that he faces internationally with this back and forth legislation is when he makes promises on climate issues and tries to push other countries, what can he actually accomplish at home in this reconciliation bill? the president makes it very clear that this was bound to be sort of a messy process, pushing measure legislation through this kind of house and senate, so the division isn't necessarily the big concern for him, but the fact that he is trying at a time when his whole numbers are tough, 2022 looks difficult to get something significant done, that's the main challenge. jonathan: jack, thank you, sir. the first big test of the electorate, in virginia of next
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week, november 2. tom: and it's interesting to see the play, with mr. mcauliffe and you wonder where mr. trump fits in. jonathan: they wanted to be a referendum on the current president but the current president wanted to be a referendum on the former president. jonathan: i think i understood what you just said. jonathan: does that make sense? does that make sense? it seems to be the strategy from the democrats. lisa: how do you galvanize unity? he was one of the greatest unifying factors for democrats out there, trump was and it highlights some of the challenges in washington this morning. jonathan: futures are a bit of a snooze this morning. it's a bit of calm this morning. yields on a basis point,
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10-year, up a couple of basis points on the front end, if you basis points this morning, that's your next stop for this market. earnings look good. apple, amazon tomorrow, then chairman powell on wednesday with payrolls two fridays away. this is bloomberg. ♪
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jonathan: wednesday morning, good morning, the equity market, a bit of a snooze after yesterday. it was a beat on coca-cola, equity markets doing nothing. small caps down four and after next week, getting over tomorrow with apple and amazon in the mix , next week there's a federal reserve decision on a wednesday, friday. on the long end, breaking 160 939, down just below 2% here. the move on the front-end, tom, the lift again coming from chairman powell next wednesday, how hard does he push back against this? jonathan: you were out -- tom:
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you were out front on this. where will we be on november 1 or november 2? i know what you're saying. just finishing what you were saying. the fed decision. makes people confused. tom: thank god. jonathan: wednesday won't be a live meeting for interest rate hikes on the federal reserve that thursday could be for bank of england. sterling, 137 right now. 100 3420 seven is where we were at the back end of september, tom. the fear is they might be hiking into weakness. this is where they play the music. is this it? do i interrupt tom again? did you do this? kill the music. 137 22. i know who's in charge here. sterling, just a bit weaker.
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tk is the meeting, a live one, chief bank economist says it is. jonathan: taylor wants to know what she parachuted into. [laughter] jonathan: i will wrap it up. that's the sterling. tom: thank you. jonathan: good morning, taylor. taylor: it's my pleasure to be here and according to dan, it may not be a 600 type down with a world series, but microsoft is darn close. it's not often you see a company this size posting these gains, but it's an opposite story for alphabet. earnings yesterday had signs of slowing in the cloud market with the fourth quarter setting up nicely, but don't get too concerned. that with twitter it looks better than some of the warnings we got from facebook or snap around the apple changes, so overall pretty good but what isn't good is robinhood, down
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about 9%. it's so interesting, they had one million customers on the waitlist for the crypto trading platform but crypto really slow down in the revenue and it caused a big concern. tom: is that traditional securities analysis from robinhood? it's based off he does, right? -- the does going -- the doj, right? taylor: one million customers on the waitlist for the new wallet, but yeah, crypto trading didn't look good in the order, so i will leave you at that. i'm no expert on doj. i thought we only did this stuff in the afternoon. let's get to some of the other serious heavy hitter stuff here. take a look at mcdonald's and, of course, coca-cola. we have seen this from the raised quarter, mcdonald's customers are ordering more and
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paying more and really navigating the labor shortage well. coca-cola, going out to eat, restaurant sales are doing well. jonathan: come back soon. good to see you. thank you. tom: wrap it up, taylor. let's talk seriously now about the character that the market has defined through their derivative space. what do you do with all of these earnings in this boom economy and this bull market? what do you do for words? stuart has an optimistic tone. what are you going to write about for monday? i'm just curious how you take this odd bull market and drive it forward with a derivatives analysis. >> it's a great question, hopefully i get to pick my own exit music. the market had been underinvested because of what happened in september, going through the numbers with big eats across the board, the markets are responding positively to that that i do
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think that your question is the right one. a couple of big weeks of earnings with the fed in the backdrop and in the rate market, how does the fed behave when the earnings are behind us? we have seen large tech quality degrading earnings with those results and usually when we get through you get back into the value trade. that would be the case. jonathan: -- tom: when you synthesize into derivatives, do you see a redux? i can't do the math, help me. january of next year, are we going to be doing the same ballet that we are doing this morning? mike: january is going to be interesting on earnings and gdp. early next year will be a tricky time for the markets as they try to balance what is probably
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inflation through q1 and an outlook for slower growth, so that is probably going to be a tricky time for the markets but at the end of the year, hopefully people just want to run it back and that would be the general assumption at this point. lisa: let's talk about inflation and when it peaks. the demand is there. even at these high prices. what is your view? mike: inflation has been tricky, both macro and micro. we had clients focusing on stocks to be the losers in the inflation story and we saw a little bit of that with the larger consumer staples stocks that made large moves, so i think there is a micro story here with some stocks that can deal with higher inflation and others can't. any other macro story, big picture, the path of inflation, what we are most concerned about is equities that respondent
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generally positively to inflation until it hits a certain level and for a lot of markets we are starting to get to those levels where inflation starts to be a negative, not a positive. it could be a micro story or a macro story and the market is trying to sort it out now. lisa: this is important, you say that the levels of inflation are going to hurt big tech? mike: yeah, with the nasdaq markets, it's already starting to shift negative for s&p, positive but closer to zero and we do think that there are parts of the market already that are not real happy with where inflation is right now. tom: how do you handle big tech with, i added it up the other day, everybody's got the bent, but stuart, how do you handle that intellectually when you look at all the mathematics you are dealing with? mike: tech is a tough one from a
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macro perspective. as i mentioned, it might be under some pressure but i think the real hard question is if you get into early next year, inflation is high but growth is decelerating, do investors want to hide in tech again? strong margins with strong earnings? or are they scared by the rates? from our perspective we tried to be involved in tech when we thought earnings would be recorded and people would focus on strong fundamentals but in between with folks focused on inflation, we have shied away. it has been of whack-a-mole to some degree. lisa: the biggest argument against what you just said is the earnings that we saw that absolutely didn't show any kind of ramification from higher inflation. it's still there and frankly there's a question that goes to what tom asked earlier about big companies doing better than smaller companies, able to consolidate and pass along price
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increases much more. how do you counter those arguments where we have already passed up when it came to an asian rates and big tech? mike: people who are worried, i think it has more to do with valuation and i think we could have a debate over whether large tech cap could be sensitive to rates from the valuation perspective but i think most investors look at it through that lens. the question would be if your earnings are strong and you have strong rates on inflation impact from a negative perspective, how do you balance that? thinking about the negative impact of inflation on tech, that will be the valuation in general. jonathan: you are five nil up, the other team is down to 10 men, don't you just go for it with 30 minutes or less? go for it, make it six or seven? mike: in a rivalry game,
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definitely. tom: the rivalry game is at darby. jonathan: why did they do it on sunday? they should have made it painful. mike: i think they were trying to enjoy it, right? embrace it. jonathan: thank you. that was the important one, i know you watched the game as well. there's a single name at ubs, gm , general motors, up 38% year-to-date and in the premarket it's 5924, 20%, here is why. it's the beat on eps with the estimate in terms of guidance where they see the full year at 570 to 670 with 540 to 640. a beat and a raise for a company where the stock is having a great year. ford is on the back of this by more than 1% and i believe that we catch up with a chief over at gm later this morning?
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tom: what's fascinating to me is they can't build the cars, they are worried, worried, worried, but the answer is the cadence has changed. the discussion, john, of detroit and a big auto making eight cents, nine cents, 10 cents on the dollar, it's a change discussion. jonathan: valuing these companies leaning towards tech a little bit more. lisa: with the revenue loans growing in 2023 all the way up to $90 billion at the end of the decade. jonathan: we will catch up with mary barra later this morning. looking forward to that conversation i believe with david westin. tom: is that the rapid up music that they are playing? jonathan: it is the polite way to get to a break. not the rude way.
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i thought we were colleagues. tom keene, lisa abramowicz, jonathan ferro. tom and i are paid to like each other. the swap comes up later. this is bloomberg. ♪ laura: democrats are trying a new, riskier approach to taxation to helps save the president biden social agenda proposing a tax that would affect about 700 people, one billion dollars in assets for those that earn at least $100 million three years in a row and meanwhile the separate path would require companies that report more than $1 billion in profits to pay a 15% tax rate. president biden is zeroing in on whether to renominate jerome powell for another term as chair of the federal reserve. the president has started to meet with treasury aids to review candidates and hasn't settled on a choice and is not clear whether he is leaning
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towards reappointing powell or replacing him. the chinese president is calling for breaking new ground in records development, saying china must establish a modern management system for the defense industry, coming after taiwan, the u.s., and china rebalanced forces for what the biden administration called strategic competition. third-quarter sales beating expectations at mcdonald's with u.s. customers placing larger orders while paying higher prices and international results were used to it by fewer pandemic restrictions and comparable sales were up 12.7%. 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. this is bloomberg. ♪ erg. ♪
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> the market has been screaming that the economy was
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not going to roll over for quite a while now. it feels as though people are waking up to that. the call on the big correction i thought was completely misguided because they were saying know that the economy was strengthening and my experience is that a big correction comes with a growth scare, not an acceleration. tom: coming off a vault -- jonathan: coming off all-time highs, from new york, i'm jonathan ferro, equity futures heading lower, yields on the basis point around 22 and so far, so good. mcdonald's, coca-cola, general motors, we will catch up with mary barra a little bit later. heading to westminster briefly, you think we are doing this for me? we are not. we do this for tom. chancellor sumac delivering what is traditionally called the autumn statement.
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what you get from them twice a year, tom, is the updated forecast from the office of budget responsibility and an upgrade to the forecast. upgrade to the forecast of 21, looking for 4% growth, now 6.5%. the economy could grow in 2022 and here's what's original about this moment in the u.k. compared to other places, better growth ahead is find, but this is the commentary from sumac, we need to strengthen the public finances. underlying net debt must be falling as a percentage of gdp. that, tom, is where the focus already is for this chancellor. i have to say there is a bit of daylight here, a fiscal hawk compared to this prime minister. tom: to get them reelected, to use an american phrase, how distant is this message from the
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conservative or borderline conservative districts they stole from labor? jonathan: it's called red wool in the north, tom. tom: like a game of thrones. jonathan: yes, there's work to be done. if that recovery is good, then ok. if inflation becomes a bigger story and we don't get a handle on gdp, we might have some trouble. tom: at the desks, can i get my own breadbox? jonathan: you know what was original about this, for the spring budget the chancellor could have an alcoholic beverage. but not for this one. but traditionally for the spring budget you could have an alcoholic beverage. it wasn't just her breadbox, you could have a drink. tom: really? jonathan: are we done? we don't go to westminster for me, to the audience out there. tom loves it.
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tom: i love it. this is important. i got to get my glasses. this is like a three hour conversation that we's reason to know time this morning. what is the singular feature we want to explain about the tech moment of microsoft, amazon, apple, google, alphabet? what's the thing when you look at the revenue income statements, what does it say about tech america? >> spending is phenomenal, there might be slight tapering, but it is intending anytime soon. tom: how do you respond to this joy and the idea that the gentleman from microsoft says it could be disinflationary to america? tech, all these tools, where will we be in three or five years with all this stuff? >> increase productivity with creative automation, this will help to counter inflation.
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lisa: how much is it that microsoft is just killing it with respect to the cloud? >> one thing that we talked about with microsoft and amazon is they are going to take it away from vendors with scale and more services. this is one of the most important points, they spend more on security than any other vendor out there. lisa: the idea of them taking business from alphabet, which we certainly saw in the hints of her earnings may not make people that concerned, but beyond that who else are they taking share from? how are they cannibalizing from the rest of crypto america that may not benefit in the same way? >> they are taking shares away
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from the systems of the past 20 to 30 years. it all needs to be upgraded. we are still 20%, only 20% in public cloud. that number needs to actuate to 50 over the next several years. it's a huge room to move. tom: you wrote an essay about iphone growth where they were wrong. dan was on the show, calling it 8%, 9%, 10%. do we have any clue on what will be delivered tomorrow? >> from the apple point of view, tomorrow's earnings will be ok. the current iphone cycle doesn't really impact it for this quarter. it will be in the next one. for apple i think supply chain is a bigger issue at this point in the biggest thing is can they get the parts needed? we don't want to get into the next summer where we are still waiting for parts because then the people start waiting for fort.
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the next two quarters are very important for them in terms of iphone numbers and amazon, from that point the cloud numbers will be strong. lisa: how much have higher taxes been priced into earnings? i say this with respect to that enforcement of the 15% tax rate being called for in washington. >> i personally don't think it makes a dammed difference. these companies are growing topline much faster than overall tech spending. imagine a company like microsoft, one third of the software market, growing at two times that, 20% right now. it's unheard of. it's what, 10 times gdp? at that point the minor taxes don't make a difference to me. jonathan: well said. thank you very much, sir. these numbers, 30% to 40% growth in the cloud business? i think it was 44 yesterday for
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google. we are shrugging off these numbers like we are use it now. unreal. tom: they are unreal but i've got to go down the income statement here. it's about scale. not only scale at the revenue line, competing day after day, but it's scaled on the income statement where the operating leverage, it's like an old industrial company where as they build it up, it gets better and better. that's the bowl case. jonathan: and those stocks have had a great year, microsoft and alphabet, as well as gm. lisa: this idea of electric vehicles and what the future holds, how much they expect to derive revenues from that, they want to be viewed like tesla. then the share price has a much higher ceiling. jonathan: it had been positive after the numbers but is now negative after a stellar year so
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far. we will catch up with mary barra a little bit later this morning. from new york city, alongside tom keene, lisa abramowicz, i'm jonathan ferro. yields are up on two with a curve that is flatter for chairman powell next wednesday on radio and tv. this is bloomberg. ♪
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>> don't miss out on the bigger picture here. fundamentals are good. >> it's possible to go faster and things are wrong and therefore it goes higher. >> inflation is going to get worse before it gets better. but we are going to see these supply chain issues easing. >> we are a long way from stagflation. >> this is "bloomberg surveillance." tom: we are on radio and television and it's a different hour of sla


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