tv Bloomberg Markets Americas Bloomberg November 9, 2021 10:00am-10:59am EST
-- this is "wennberg market -- this is "bloomberg markets," with alix steel and guy johnson. ♪ guy: tuesday the ninth. we are 30 minutes into the trading day in the united states. from london, i'm guy johnson. alix steel is over in new york. welcome everybody to "bloomberg markets." we rally into the close. we get nine days higher. the last time that happened, 1964. alix: really? what was the top song in 1964? we will look that up. tom: even before my lifetime -- guy: even before my lifetime. alix: just. the other kind of action here is what is happening within the bond market. look at the 10 year yield. you have yields down by about five basis point. a lot of buying coming in, particularly in the long end the
s&p now down 0.4%, so we might not get that 1964 record. you have utilities leading the way, and real estate and consumer staples, so all of the safety kind of trades doing the best within the s&p. ge obviously the outperformer. we will get to that in just a second. you have what feels like a risk off, and then you have bitcoin up by 2%. crewed up by 0.6% -- crude up by 0.6%. at noon we get the eia outlook. everyone looking at that as to whether we will get output from the u.s. guy: what is moving the bond look around at the moment seems to be powell, brainard. let's talk about the top stories we are watching this morn. bloomberg's annmarie hordern is in washington. is it going to be powell? is it going to be brainard?
whenever going to find out? mike mckee breaking down the u.s. cpi data and looking ahead to the cpi number tomorrow. and general electric splitting into three units. carol abelard joining us with the latest on that. let's start with the powell-brainard debate. when will we figure out what's with the president is going to jump? annmarie hordern joining us from d.c. with the latest. annmarie: we just don't know the exact timeframe. when we asked the president in glasgow, he has said we will know sometime soon, but now it does seem like it is coming a little closer to that decision. the fact that our colleagues are reporting when governor brainard was at the white house last week to meet with the president, it was to interview for the top job. many have speculated potentially he would keep powell at the top job, but put brainard as part of the supervisory chair position that quarles is leaving, but we now that -- we now know that powell potentially has a serious
rival. mike mckee has a great threat on twitter, but potentially, will she have a little harder confirmation hearing? is this something potentially bought and wants to extend some political capital on? it would definitely be a nod to progressives, who thinks she is much tougher on banking regulation, even though brainard and powell are really lockstep when it comes to monetary policy. the changes would be in terms of banking regulation, yes g policies, especially climate -- regulation, esg policies, especially climate policies. janet yellen told president biden that she supports the renomination of chairman powell. is resident biting going to ignore the advice of secretary yellen, a former fed chair herself? alix: it is going to be really interesting. it is kind of like, but has taken so long? let's get to the deeper debate. prices paid in the u.s. accelerated in october.
that built concerns up of persistent inflation or pressures. then you get the rally in the bond market. mike mckee, bloomberg economic policy correspondent, is with that -- is with us. michael: they are still going to face the same problem in 2022, and that is inflation. you see that ppi for panel -- for final demand, which is the had time -- the headline number, and ppi core, both are up. they are still both at records. this does not get a lot of attention on wall street. what really matters to people on wall street is the pce, the fed's favorite indicator, and the cpi which comes out tomorrow. the forecast is expected to go to 5.9%, it would be the highest in decades, and 4.3% of the core. the headline is higher because that includes food and fuel, and
according to the bureau of labor statistics, the ppi was heavily influenced by the price of gasoline this past month. so where does this leave us going forward? are you going to feel a political impact from this? maybe not. take a look at this. the white line is the employment cost index. this is how much the raise you have gotten went up over the past three months, and this is the inflation indicators. the cpi is the purple one. you can see that cpi looks really bad for you, but the other indicators are not quite bad, and it inflation, if inflation can keep up, that might work for the political side of the president. he talks about more money going to workers and less money going out the door for oil and fuel. by the way, i can tell you 1964,
pretty obviously the beatles. "i want to hold your hand" and "she loves you" were 192, but -- were one and two, but number three, "hello dolly" by louis armstrong. guy: she's now claiming she would have got it. , much to the annoyance of my father, i was never a beatles fan. alix: you can't say that. you are british. you literally can't say that. guy: i know. as i say, much to the anointment's -- the annoyance of my father, signs a bill during. it has been -- my father, who finds it bewildering. it has been a family debate. thanks very much, michael mckee. let's talk about the ge story. i spent a large chunk of my career working for ge, the once mighty american conglomerate we
now know is going to break up. general electric will split into three companies. the first one is going to folks on health care. then we get power. then we are going to get aviation. it is the most sweeping and can change for ge since larry culp became ceo. i would argue 2008 comedy pivotal turning point. i remember being there at that point, and once the financial crisis hit and ge finance started to his billions problems, be this was always on the cards. carol level hard -- carol level hard -- carol a villard joins us now. this has been on the cards for a long time. my question is why did it take so long? >> a couple of things. the debt structure had to get in much better shape. they were very overleveraged. they needed cash flow from health care and aviation. they weren't in a financial but is in -- financial position to do it. they are now. they will have debt down $75 billion. that is the timing part of it.
frankly, i think the timing of the announcement was a surprise, earlier than i certainly expected. the timing of the split, the planned timing, sounds really right. health care first, the power business later. 2023-2024, aviation will be in very good state -- very good shape, so the timing sounds right. alix: which has the most upside from now? anthony: av -- >> aviation. the earnings power of that business is so much higher than it was in 2019, once we get the full recovery. so that is the best business. health care is also a very good business. it really hasn't run into problems. they will now be more focused, do more m&a, get more growthier businesses, so that makes sense. and power, renewables and power
and a little bit of digital, that is still going to be not a great business, but it will be a fixed business on mid-single-digit, hi sid do -- high single digit margins. it will be earning solid money, so that is the timing. alix: thanks a lot. you have been calling for this for three years, right? so it finally is coming. thank you so much. a programming note, larry culp, general electric chairman and ceo, will be joining "balance of power" today at 12:30 p.m. in new york, 5:30 p.m. in london, so don't miss that. the sb 500 easing off on its longest run -- the s&p 500 easing off in its longest run since 2018. emily rowland of jh investments joins us next. this is bloomberg. ♪
alix: live from new york, i'm alix steel, with guy johnson in london. this is "bloomberg markets." value stocks actually surged, but that hasn't actually worked out. joining us is bloomberg's abaco doolittle. that was the consensus for a second, and it hasn't pound out -- hasn't panned out yet again. abigail: this is a stark reminder that overall, we have growth up about 28% on the year, value up about 20%. to your point, tesla, nvidia up huge, and some of the other top value stocks actually lower on the year, so it is a busting of that idea that rising yields
would really help out value. it just hasn't worked out that way. the spread between value and growth has really widened. back at the end of 2018, the value pe was on was 13 times for growth. right now we are looking at almost a spread of 15. value trading at about 17 times, growth trading at 31 times. this may suggest that there could be some catch up for value ahead, something everybody has been waiting for for a long time. it is not working out that way yet. tying it back to yields, take a look at the bloomberg terminal. rising yields, the 10 year yield up about 50 basis point on the year in blue. it has been a very choppy ride. but below, we have value versus growth, and value really just not performing at all. growth taking the cake. guy: it is amazing, considering where we were and where we have come from and the message delivered earlier on this year. thank you very much, indeed.
hertz indicated to open $29.50. we are basically around the offer price. but you think about where we have come from, that is amazing result. this is a company that was on its knees, and to come back to the market in such form and to be able to basically deliver this kind of a share price turnaround, sensational. alix: i am sure the whole ev tesla thing didn't hurt before the ipo, but it is definitely a big bounce. also disc shows the kind of money that was in here. this was at one point and of a meme stock. it is crazy. guy: all kind of normal practice is, what you would expect to happen thrown out of the window. anyway, we will come back and see what exactly it opens, and
it looks like when we get to that point. we will bring you the news a little later on when that happens. let's talk to emily roland, jh investment management co. chief investment officer. -- management co. chief -- management co-chief investment officer. we had record high after record high. nine days higher, we haven't seen that since 1964. apparently that was when the beatles were in charge in the charts. how big a problem is this, and what do you thing about these markets right now? are you comfortable with where we are, or are you worried we are sitting ourselves up for disappointment? emily: i am still a little worried about the fact that you are not a beatles fan, but i think we will have to come back to that one later on. i think what is interesting about this market right now is that it does have a lot going for it. the economic data has been
surprising on the upside. last week we saw u.s. services pmi hit a record high. we saw the u.s. economy out over 500,000 jobs with significant upward revisions to previous months, and the fundamentals look great as well. q3 earnings season really could not have been better. 39% year-over-year growth, reflecting this really strong demand backdrop, and then you got some significant risks that are fading. covid certainly is one. we've got these new treatments now, so we have kids being able to be vaccinated. higher taxes are fading as a risk at the margin as this infrastructure bill gets watered down, and finally, you've got a ton of cash on the sidelines that is looking to get deployed. the challenge is that we are starting to see these pockets of speculation building again. you got small-cap stocks ripping. you got meme stocks coming back into the narrative. you've got bears really starting to capitulate. i have seen it significantly on
o next year, the quality growth sectors that we really like, areas like technology and communications services, or showing the best earnings growth prospects, along with some higher-quality cyclicals like industrials. when we look on the value side, those earnings growth prospects are starting to fade. the financial sector is showing negative earnings growth for 2020, so we want to be very mindful of that. we just want to notch up on quality. we still want to them brace equities. this is not an overly bearish message. that is the economic growth backdrop slows, you want to be more careful about where you are invested. guy: let me ask you the question that i asked kate more yesterday. her answer was absolutely.
do you want to be fully invested at this point? emily: you do. we continue to embrace value and growth, so you want their higher-quality value stocks. you want to own growth stocks. you want to also have a balanced portfolio. you hear a lot, and i know it sounds boring, but you hear a lot of folks talking about the death of fixed income. you don't want to own bonds in this environment. we actually think youds to offet buffer, as we see volatility next year, which we do expect, and you want to pair that with corporate bonds, particularly in the bbb end up be space, in order to capture that additional yield. we still think equities need to do a little bit more of the heavy lifting here. we want to own bonds in that intermediate part of the curve. there's great rolldown potential there. where we don't want to be is in cash. cash is going to be a very inefficient asset class. the fed we think is going
nowhere. we think rates stay lower for longer. right now, you are losing money if you own money market funds or cash, where frankly, lots of flows are going. alix: we started the show talking about lael brainard versus fed chair jay powell. the excuse for the market yesterday is that we may get lael brainard as fed chair. how do you factor that in? how much do you care between the two of them who leads, and how does that affect any investment decisions you may make? emily: i wouldn't over emphasize that is a key catalyst for the market. just to enter the question around bond positioning, we look at the rally we have seen and bonds as just a shift in positioning, as investors were overwhelmingly positioned prior to the fed meeting for rates to backup, and those positions needed to be unwound. that is one reason we think we are seeing this rally and bonds. as far as the decision between brainard and powell, probably won't put much of a denton markets.
not much can right now, so we don't think that event will cause significant volatility. the challenge for if we do see significant turnover on the fed, which, regardless of who the chairman is, we will see significant turnover, the cycle is moving quickly. this is a new federal reserve that could get put to the test very fast. we have seen with powell that sometimes it takes a little bit of runway to get that communication just right, to get that messaging just right, and that could be a challenge as we have a more junior group of federal reserve officials into next year at a time when the economy is slowing and inflationary pressures potentially need to be snuffed out more quickly. alix: emily, thank you very much. nelly rolan -- emily roland of jh investment management, think you so much. we are looking at hertz indicated to open at $26 a stock. tom brady apparently just tweeting "to the moon" in a
guy: let's talk about what is happening in the market right now. roblox managing to double its q3 revenue once more, even as kids go back to school. dave wilson looking at the numbers and the pop we are seeing in the share this morning. dave: bear in mind, roblox is one of those companies that when you talk about the meta-verse, it has to be part of the
conversation. it is not just facebook and its meta-platforms parent company. video games, people can create their own games, share them with others, and that model seems to be working out for them at a time when we are seeing other companies struggle to hang on to their business in light of the coronavirus pandemic easing. roblox doing just fine. more than doubling revenue in the third quarter, as it did in the second quarter and in the first quarter. we should bear in mind that the company has only been public since march, so quite the start for roblox. it comes at a cost, no question, when you look at how the results break down. things like developer fees, personnel, and all the rest, that leaves them with an operating loss for the latest quarter, so if you make the adjustments, it turns out that they had earnings that beat analyst average estimates. a similar story with revenue. alix: so roblox gets a boost from analysts as those results
do look better, but hasn't the game industry been really closely tied to the pandemic? i wonder what happens as the reopening trade, which we are still seeing, has more juice. dave: there's no question if you look at the index of video makers, it peaked back in january. since then, relax pop really defying the broader trend. you're talking about a stock that set a record today, and their average daily active users actually rose in the third quarter, which is saying something. alix: that guy's kids are still playing, basic a. good to chat with you on that. coming up, cop-26 still in the thick of it. christiana figueres's former secretary of the yuan framework convention. -- former executive secretary of the u.n. framework convention. we will get the latest. this is bloomberg. bloomberg.
emissions. >> it is important for us to recognize that, as was true five years ago, we have not done enough. >> world leaders haven't up to this point delivered on their promises. they haven't acted fast enough. >> what excuse should we give for the failure? >> is out -- it is not a secret the cup 26 is a failure. we don't need any more distant, nonbinding pledges. we don't need anymore empty promises. we don't need anymore commitments full of loopholes and incomplete statistics that ignore the historical climate injustice. >> for any government, it is not as simple as flicking a switch. there are careful transmissions that need to be done, and that is an energy transition. alix: those were some of the heaviest hitters in global politics and activism and the environment saying that there's a lot more work to be done.
that is all coming off the heels of cop-26. house speaker nancy pelosi is also in scotland, and the u.s. congressional delegation to cop-26 is holding their news conference in glasgow. we will bring you any headlines that cross. let's get a report card on where we are. christiana figueres is the former executive sec. of the yuan framework convention, one of the architects of cup 26 -- the you and frame -- the un framework convention which of the architects of cop-26. can you frame for us how you think things are going? christiana: thanks for inviting me back on. i would say there's definitely been progress, and much more progress needs to be done the second week. i would choose three big ticket items. number one, 1.i've degrees is the new two degrees. what that actually means is that we thought several years ago that a maximum temperature rise of two degrees would be more or
less ok. it is not. scientists are screaming from the rooftops that we have to actually be able to limit warming to 1.5, so that is actually very important. this is the first cop at which there is unison agreement, that has to be formalized at the end of the week, but it is definitely clear that 1.5 is now the new two degrees. the second point that is a big ticket item is the role of nature. all of a sudden, it has exploded at this cop, with 100 countries planning to reverse deforestation by 2030, and $20 billion of public and private funds being allocated to that challenge. perhaps the most exciting thing is how the finance system is moving. at this cop, we had more than 450 financial organizations in the financial sector, include banks, fund managers, asset owners, insurance companies, and
more than 45 countries pledging to move $130 trillion of funds to a d carbonized portfolio. so three i think very important, big ticket items, with a lot still to be done. guy: it is guy in london. 1.5 is a new 2%. the problem is, china wasn't present at the meeting. plenty of other important countries weren't present at the meeting. how effective can this all really be if those countries aren't all on board? christiana: just because they didn't come doesn't mean they are not on board. actually, china and india are very much moving towards a 1.5 degree because they know that it actually can be quite dangerous for them if we don't do that. so those are not the countries that have been a problem.
the countries that are still having a very hard time accepting the fact that we have to d carbonized the global economy are actually australia, saudi arabia, and brazil. for obvious reasons, but i have a feeling that even they will have to given to what is by now a majority position on the responsibility that we all have to stand up to the science. alix: what role do using that coal, nuclear, and natural gas need to have? it feels like you can't win anyway you slice it, and that is why disagreement, it feels, and light of the energy crisis. how would you think about it? christiana: on coal, it is pretty clear. no more new coal. that is absolutely clear.
you cannot even afford to take the coal plants that have been mothballed because they are such stranded assets back into operation. a very dangerous thing is that with these absently crazy gas prices we-now and electricity prices going through the roof because of gas prices, there is some temptation in some countries to take those coal plants out of mothball and have them fire up again. this could be a make it or break it winter for many countries, and in fact, even for progress on climate change, because of that condition to but highly inefficient, costly, and polluting plants back onto the grades, and -- back onto the grids, and it underscores how we have to invest deeper and much quicker into the cleaner energies that are of course of the traditional energies by now,
solar and wind, but a very exciting new energy beginning to emerge, so watch that space, is actually reusing -- actually using renewable energies to produce green hydrogen. that means you can substitute coal power and gas in heavy industry, and that is actually going to be the most important contribution to the decarbonization of the economy. guy: when are we going to get a global carbon tax, and when are we going to get penalties for not living up to promises? christiana: i don't think you are going to get penalties. we went through that during the regime that anyone is old enough to renew member -- to remember. we had penalties, and the only thing that led to was that those countries that were not complying just pulled out of the agreement 24 hours before the penalty was imposed, so that was a big lesson learned. that is not going to happen.
much more important in terms of punitive measures is the peer pressure that countries are getting from young people for sure. thousands and thousands of them on the streets, but also from scientists, from anyone who is aware of what is going on. so i think punitive measures have been substituted by peer pressure, and that has to remain. alix: one thing that may bridge both is a carbon tax. basically, setting up carbon price and a carbon trading market that is liquid and that can be very much participated in. it still feels like we are far away from that. every ceo i talked to once that. what do you think is the right price and the right structure that will really incentivize change? christiana: what i know is not the right price is the ridiculous price we have now is two, three, five dollars a ton.
it has to go up to even $100 a ton to make it. when we will get that global price, it has been lagging since the paris agreement because there is not agreement from everyone either to make it a global market, liquid, as you say, or in fact, to do so with transparency and without double counting, which is absolutely critical because a global market that has double counting is not going to help us at all. so those are the two points that are still being discussed as cop-26. last week, there was some progress on it, but it still needs to be landed at the end, hopefully in a much better space at the end of this week. guy: how should the proceeds from such attacks be used? christiana: i think one thing we learned from the yellow vest movement in france is that you have to tax pollution, but that
funding needs to actually be able to support those who would be negatively impacted by a raise in energy prices, and that was a very clear lesson that was learned, and one that is at least with intent already being planned by many countries because of that lesson. guy: fascinating conversation. we hope for more progress to come out of glasgow. we will watch with interest. christiana figueres, we really appreciate your time and your analysis. what are we going to talk about next? the end of the road for ge in its current form. dean dray from rbc capital markets is going to be joining us. the 129-year-old industrial giant seems to be, at least in its current form, coming to an end. it will be interesting to see
ritika: this is "bloomberg markets." coming up, dr. anthony fauci at 12:00 p.m. in new york, 5:00 p.m. in london. this is bloomberg. ♪ let's check in on the bloomberg first word news. spacex has returned four astronauts from the international space station. nasa's mission splashed down off the coast of pensacola, florida late monday, completing one hon or 99 days in space. the space agency was forced to alter its launch and landing schedule due to disruptive weather over the past two weeks. in nicaragua, president daniel ortega has won a fourth
consecutive term after jailing his most popular opponent. the u.s. and european parliament called the election a farce. president biden is pledging to use diplomacy to hold ortega accountable for abuses. in the u.k., primus or boris johnson under fire over a scandal involving a conservative party lawmaker. his government has been openly accused of corruption in parliament and even newspapers that are typically friendly to johnson took aim. his approval rating is at a record low. the industrial giant built by jack welch and his predecessors will no longer exist. ge will split into three countries focused on health care, power, and aviation. renewable energy, power equipment will be spu -- will be combined into a separate unit and spun off in 2024. the remaining couple he will be ge's airplane engine operations. global news 24 hours a day, on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i'm ritika gupta. this is bloomberg. guy: thanks very much, indeed.
let's dig deeper into that story. ge is trading up circa 6% on the back of this news. our next guest has the price target of $127. deane dray of rbc capital markets joining us now. we've got a nice pop on the stock. you have a price target of 100 when he seven dollars. what you think the real breakup value of this business is? deane: thanks for having me on. we have been looking at ge evaluation on a some of the parts basis ever since larry culp joined with the expectation that there could be a breakup coming. so our published model suggests there's at least 20% upside on a breakup value. this all has to play out over time, so we are not surprised to see some of that realized today on the announcement, but we see at least 20% upside from here. alix: which one would you want
to own after the split? deane: that is the question i have been asked most frequently today, and i have set all along if i were starting a multi-industry company today, i would want to be in the aviation business. the business model is so elegant that you get seven to eight times the revenues servicing a jet engine over its 30 plus year economic life significantly higher margins, so if i had to pick one, that would be the one that i would like to see in the multi-industry portfolio. that said, the health care business is a leader in the powered renewables are also a leader, but you asked me to pick one. . guy: if you had the opportunity to pick two, my question is, why are they splitting aviation and power? you look at the hydrogen power,
you look at the renewables business and you think about where it is going there, and ultimately the direction of travel. there seems to be some overlap. doesn't make sense to split those two businesses off? deane: there was that thinking all along, that somehow aviation would still be paired with the power business. if you think about it, a gas turbine is a similar technology as a jet engine, only stationary and attached to a generator, so there's all kinds of synergies in terms of the technology, but not in the end markets. in the end, this is an end market decision, and from that standpoint, that is the reason we are seeing them separated today. alix: i have sort of the flip question. it feels like when you're looking at low single-digit growth and high single-digit margins for the power renewable business, it seems like that is a utility. so versus something that has the gross kind of potential and the sick little potential of the
aviation business. the reason why i feel like that has significance is for the rating, but what a lot of energy companies are dealing with in the energy transition, are we moving to this being utility based? deane: you are exactly right, there is a utility aspect to the power business because the primary customer are utilities. there are some of the derivatives going to some industrial applications, but for the most it is utility based, and i like that you touched on the energy transition because the power business that we knew over the past several years is transforming rapidly into green technologies, hydrogen, and the pace of change i think is going to be remarkable, and the turnaround has gotten trucks in the past couple of years. i think you will see a lot of change going forward. guy: what does this mean for other industrial conglomerates? is this just an idiosyncratic
story? ge didn't fit together, others do? or is there a lesson on conglomerates? deane: there is an important lesson on conglomerates. we have talked about this extensively. we have called this trend the pendulum swinging towards the urge to de-merge. you call it addition by subtraction. the market is rewarding these multi-industry companies for some blood flying. we have seen this happen. the last one of size was united technologies breaking three ways. so in our note this morning, we said ge is the longest anticipated breakup, so it is finally underway. we do think there are some others that could be urged long. we think the board at companies like emerson might take a second look. 3m has not participated in its supplication on a go forward
basis. so we think there are significant implications for the sector as a whole. alix: would that be your next guess, like a 3m? deane: the one that probably bubbles to the top in terms of anticipation, and we published on this extensively, would be emerson separating their automation business from commercial and residential solutions. the x ceo and chairman said that is up to the new ceo to decide, so it has come up on several conference calls. they would be doing it from a position of strength if and when they decide to pull the trigger. alix: deane, thanks a lot. we enjoyed chatting with you. stay with bloomberg. larry culp, general electric chairman and ceo, will be joining david westin on "balance of power" today. definitely do not miss that. this is bloomberg. ♪
ritika: peloton is expanding beyond cardio. the company has launched its first strength training device, a $495 setup ox with a camera that guides you through exercises. southwest gas has rejected an unsolicited takeover author front -- takeover offer from billionaire carl icahn. they say the offer undervalues it and is not in the best interest of shareholders. icahn holds a 4.9% stake -- icahn holds a 4.9% stake. netflix is launching a tiktok-like feature for kids. hurts hopes to raise as $10
billion. if shares are sold at the top of the market range, it would be the largest u.s. ipo on record. that is here business flash. -- that is your business flash. guy: thank you very much, indeed. it is not far off half of what volkswagen's worst, which is amazing. alix: it also becomes how much can they produce. it is the same situation tesla was up against. it is only about 300,000 400,000 units per year. but i don't know, did you really buy tesla for the actual production? no, you bought it for the potential and for the dream. guy: yeah, and to get from a to b, considering they have the range that nobody else is to have at the moment. just anecdotally, talking to people about why they bought tesla. so i think part of the dream, part of the opportunity, and
they led the market in a huge way. really and that's really and -- really and -- rivian, i think they have more of a focus on commercial vehicles and what is going to happen there. they have this relation to with amazon which is going to be really interesting in the way that that allows them to access the market. clearly, amazon needs to figure out a different way of delivering products in a more sustainable way. alix: as of today, it does feel like a really good tape for these kind of ideas. hertz will be very indicative also. so below the offering, but this is like a bankruptcy stock turned around quite quickly, and now it is an ipo yet again. if we are able to stabilize, the nasdaq 100 also because tesla is getting hit, but that is more idiosyncratic. michael burry saying you should sell shares to pay some debt.
but aside from that, if you look it could be a relatively good tape because it is a pretty chunky ipo. i'm using your words. this is so unfortunate. guy: yeah, it is bananas. it is a story that basically, the halo effect of ev is amazing in terms of the effect it has on the share price. there was a really interesting note out earlier this week from jeffries on volkswagen that seems to imply maybe volkswagen had taken that too far. at the same time, they upgraded the target on tesla massively, so still seeing significant upside there. headlines coming through. boris johnson to travel wednesday to cup 26 in glasgow -- to cop-26 in glasgow. the european close is coming up next. this is bloomberg. ♪ ♪
european close," with guy johnson and alix steel. ♪ guy: tuesday the ninth. what do you need to know out of europe this hour? european gas prices starting to actually dip as the russian space owned -- the russian state owned energy giant starts to fill storage sites in germany and austria. how much gas are we really going to get? avf announces a big push into the united states. many retailers have tried and failed to crack america. car for -- cara for -- carrefour goes after amazon. hearing europe, equiti