tv Bloomberg Markets European Close Bloomberg November 10, 2021 3:00am-4:00am EST
we speak to the carlisle co-founder david rubenstein. if you have any questions for our guests. francine: let's also look at the futures. wednesday should be looking a little bit better. we did see pressures on futures. we are now seeing gains pretty much unchanged. we had some factory gates orders in china that were disappointing because they worried the markets. tom: these higher prices for chinese factory gates do enable us to pay down the debt load, but you are seeing and bleed into the cpi marginally. it could constrain the pboc possibility to pump additional liquidity -- pboc's ability to pump additional liquidity into the system. that is an area of focus. in terms of europe, the spanish ibex is flat. the ftse 100 is flat.
bear in mind basic resources have come up, particularly iron ore, on concerns about the property sector. evergrande front and center again. in terms of the sector by sector basis, we can switch up the board and see how this is flowing through. we are looking ahead to the cpi numbers out of the u.s. later today. you could be looking at the highest print since 1990. the u.s. 10-year. brent, oil is in focus. biden has pulled back from releasing strategic reserves until -- for now. bitcoin, cryptocurrency still of interest. you see some pressure on coinbase over activities. than the questions about whether you can get back to that record high we saw earlier in the week.
down almost 2%. francine: let's also dig deeper into some of the sectors. it has been everything about energy and oil. the american department of energy and the international agencies. the u.s. is expecting these prices to come down. they are not releasing strategic reserves. energy, i think it is right behind me, it is in the green. banks also gaining 0.8%. some of the biggest movers on the consumer side of things, we have some movers, i'm sure we will talk about doordash later because it bought an $8 billion company. if you look at the overall s&p, we are seeing things that are gaining and losing, but not by much because the ranges either 0.4% lower or 0.5% higher.
tom: allianz, the insurance provider and wealth management. gaining 0.7% with a beat on a number of the key metrics. credit agricole also did better than expected. the earnings of the trading unit were down by about 20%, but they were more than offset by what we are seeing on the corporate side. credit agricole overall was a beat. infineon, this is interesting, they are raising their outlook for margins, longer-term. 2022, they see a strong fiscal year for next year. margins key for the semi conductor producer. up almost 3% in the first few minutes of the trading day. let's get the bloomberg business flash with laura wright. >> general electric will split into three separate companies in a stunning breakup of the
conglomerate founded by thomas edison, once the world's most valuable company. ge will spin off its health care arm by 2023 and combine its three energy businesses into another separate energy -- entity. the jet engine unit will make up the third company. an ev maker will price its shares after expanding its ipo above the top of its marketed range and will raise almost $12 billion, one of the biggest listings of the year. rivian is backed by amazon and ford and delivered its first vehicle to its own emplo the ceo will give his first interview of the day to bloomberg later. doordash is buying a finnish food delivery company. it is its biggest purchase today. they say it will improve value to customers around the world.
who says wednesday is too early for a take away? francine: i feel like there is no dry january. you should do everything in reverse, tom. tom: you want to be drinking through january. it is a miserable month. you can stop drinking in the summer. francine: tom mackenzie understands the lock what -- lacqua values. i don't know whether we talk about doordash and takeaway and alcohol consumption in january, but the markets are very focused on oil inflation. >> this is part and parcel of the big story of rising costs for consumers. oil is part of that equation. i suppose it is a good thing markets are taking it is good news that the u.s.-backed away from tapping their oil reserves.
consumers are already struggling with household costs. tom: we are seeing what is happening out of china. producer prices. cpi coming in marginally above estimates. the concern broadly is that inflation is becoming more entrenched. what are we looking at out of the u.s.? >> we are looking for that core number and the headline number. that will really tell investors how entrenched prices are getting and whether that transitory argument that central banks are still putting forward still holds water. consumers, banks, we have heard warnings that it is looking more than transitory. i think any evidence particularly from the core numbers will help build that case. francine: the thing is is that these inflationary pressures keep on rising, but if you believe they are gone in 6, 7 months, you say it is transitory. i don't know when there is the crunch point when you realize whether it is transitory or not.
is this like three months out? what kind of timeframe are we looking at? >> i think that is the big question because even if it is say for example 3-6 months out, that is still three to six months of households really getting pressured by the soaring costs. i think markets are trying to discern that by looking at real yields, for instance. investors are trying to read the signals and see what it all really means. does that mean there is a very pessimistic view on the economy over the next six months or is it really more of a function of inflation really getting out of hand in the short-term but then eventually falling back down? i think that is one particular signal. it usually tends to be the canary in the coal mine that investors are watching for. lots of discussions over what real yields mean. tom: thank you very much for your take on what to look at in terms of the inflation story and
the oil complex, as well. so far, the biden administration holding off on tapping those strategic reserves. marks & spencer shares rising 20% after they listed their full-year forecast. they are seeing strong demand for food and the clothing side. francine: i was at marks & spencer a couple days ago. i'm no retail analyst, but i do shop around. it was a beautiful collection. we talk about the share prices philosophically, but chances are a lot of people will like it if you like it when you go into the store. mms has had a really tough time. tom: you talked about the collection. years gone past, people would say it is a drab collection when it comes to the clothing. they have been trying to turn that around. it seems they are having some success. francine: frumpy no longer. we will have a look at what that means for margins.
nothing to write home about, my favorite british expression, but if you look at the levels, some stocks are gaining 0.2%. factory gate orders were the highest and 29 years in china. tom: very high. francine: the million-dollar question is do they come down from this or will they stay higher for longer? tom: also a key question is what extent does it bleed into cpi? slightly above the estimates. still relatively in a zone of comfort, but does that constrain them? there are some economists who think that pboc will support them with a rrr cut by the end of the year. people are starting to walk back that assumption given prices are so high now. what does that mean to support an economy where the rest of the data is fragile? francine: i think we have to remind ourselves is that they
still have a zero covid policy, which means that supply chains are affected and you can seaport staff because of rising cases. we have had a lot of companies reporting. let's get an update on the global supply chain crunch. great to have you on air today. how is adidas going? they had results. >> they had a 600 million euro hit from these asian supply issues. the situation is especially dire in vietnam. vietnam has had a resurgence in covid cases, which has led to factory shutdowns and worker shortages. just this morning, a key supplier to adidas said 6% of its workers quit, which means it is going to struggle to meet orders. it is interesting to compare the impact on nike and buma. nike has also had to lower its sales forecast, but puma raised its forecast, but all three will
be hoping that the biden administration saves the day and ramps up vaccine donations to vietnam. tom: in terms of what is happening with infineon, it is a different picture on the question of margins. they have raised their forecast. what is happening with that? >> revenues grew more than expected. the ceo said he is confident the higher demand for semi conductors would last, so infineon is investing to take advantage of that. it is leaning into the aftermath of this supply crisis, the global chip shortage. tom: lizzie, pricing power has been central to the analysts we have been talking to. let's check in on some of the other stock movers. we will be speaking to the cfo of continent al later -- continental later.
reporting third-quarter earnings. ok, let's check in on the movers. elian's -- allianz credit,, and infineon. let's take a look at what is happening. stop down 0.4%. it was a beat in terms of third-quarter operating profits. credit agricole, loan loss provisions coming down. down 1.5%. third-quarter profit jumping at the french lender. nonetheless, you are seeing pressure on the shares in the first 15 minutes or so of the trading session. infineon has done well in terms of margins and they have raised the forecast for the margins, saying they see a strong fiscal 2022. francine: there is quite a lot going on.
now, this is what we are looking at across the board. si biden has met with top u.s. executives on the supply chain crunch. the pressure has been piling one of the president to clear supply chain logjams as consumers begin their holiday shopping. joining us now is our guest. thank you for joining us. i have a million and one questions. if you look at equities, it is margin pressure and they want to know what happens to inflation. when are we settled on whether this is transitory even if it rises? >> i think that question will stretch into next year. we are seeing inflation across every sector across the globe. i think the question with regard to natural resources, inflation on that front, logistics costs, we think that is more transitory in nature and likely to subside as we enter and go through 2022. wage inflation is something that
is more likely to be sticky. it is difficult to see that coming off. tom: how does that informed the way you differentiate across sectors? do you look at companies that are reliant on large labor forces and cut those out of your portfolio at this point? how do you think about the stickiness of prices in which companies have pricing power? >> the key thing we look for is the quality of the business model. and the ability of the company to put through price rises. you look at consumer staples, generally considered to be a very stable market, but we are seeing a lot of different impacts from inflation. within food and beverage sectors, much less inflation, and the companies are able to expedite pricing power and margin pressure is not quite a significant. coca-cola reported an increase in gross margin in the quarter. they are able to offset the inflation.
on the other hand, home and personal care. francine: you like europe as well. >> absolutely. europe is trading at a very big discount to the u.s. we think there is going to be a period of multi-year affluence driven by some of the valuation. the tech leadership in the u.s. market has been persistent, but it is very narrow. the s&p 500 is at an all-time high, but only about 16% of companies are at their 52-week highs. that indicates to us that there is an opportunity for stockpicking in the u.s. and europe. tom: stockpicking, that is the case you want to make. interestingly, that would be the argument from active managers, as central banks pullback their support and the blanketing of the market is removed, then it becomes more of an opportune moment for stockpicking. what are some of the companies you can flag for us where you see real opportunity? >> if you look within the
building material space, an irish company, about half of their profits come from the u.s. market. they are the largest road builder in the u.s., so the infrastructure bill that has been passed in the u.s. market will be a tailwind over the next five years as highway spending increases by 50%. that is a great opportunity. king span is another irish company, but they are seeing a long-term secular driver in terms of the efficiency, energy efficiency of the insulation they produce. we see a long runway of growth driven by regulation across the globe for that space. francine: i want to talk about your craziest pick. i might ask about cryptocurrency. is there an equity that gives you exposure to cryptocurrency without buying them? >> we do not have direct exposure to them. it is a little bit too difficult to predict. we like to invest in companies that have a very good understanding of what they will
look like and 5-10 years. francine: you actually like fundamentals. >> absolutely. tom: health care, we have had some developments in terms of treatments when it comes to covid, positive developments when it comes to these pills that may be available next year. how does that change your view of the health care sector? >> i think health care is a very interesting sector because it is largely insulated from a lot of the cost inflation pressures we have been talking about and insulated from a lot of the macro pressures and uncertainty. it was one year since the pfizer vaccine results came out and a few days ago, we had the antiviral announcement. so, a lot is happening in health care that has ramifications more broadly across society, but within health care, a company we like is novo nordisk, known for its diabetes franchise. they recently introduced an anti-obesity drug, which is
really a huge breakthrough for them. if you look at estimate's, obesity is predicted to affect about one billion people across the globe by 2025, so there is a significant opportunity there to be addressed. francine: you don't like any of the bigger companies. you mentioned king span, a huge irish construction company, is there anything in consumer staples, luxury players that you would be interested in? >> we think luxury is a great spot. those are companies that demonstrate brand power and pricing power. but we are increasingly concerned about the chinese consumer and that has been a big driver of their growth domestically and through international travel. we are a little bit more cautious on luxury then we have been in the past. francine: chris, thank you so much for joining us. coming up, tesla loses nearly $200 billion in market value in
let's get to a major corporate story. tesla has lost some $200 billion in market value in its biggest back-to-back selloff in 14 months. stephan, thank you for jumping on the line for us. what is behind the tesla selloff of the past few days after such a significant hot run-up for this company? >> basically, it is a trifecta of things. it really started on the weekend, when elon musk asked his twitter followers whether he should sell 10% of his stake in the company and they said, yes. that was followed by news that shares were sold just before that pole. capping it off was an insider report that the investor made famous by the movie the big short said elon musk may want to sell shares to cover his personal debt. all of that combined and possibly some healthy profit led
to this route. francine: sometimes you wonder if it is more volatile than crypto. what impact has this had on elon musk's personal wealth? >> elon musk has lost about $50 billion so far this week, but after all we should not feel too bad for him. he still is the richest person in the world and his fortune still is up about 70% this year thanks in part to tesla's massive gain, but also higher valuation for spacex. don't feel too bad for him. [laughter] tom: we are not weeping quite yet. thank you very much indeed. the impact on elon musk's wealth. david rubenstein talks to bloomberg ahead of his keynote speech at super return. we are live in berlin with that interview. european stoxx 600 up 0.2%. the ftse 100 up 0.3%.
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francine: welcome back to the open. 30 minutes into the start of the european trading day. this is what we are looking at. chinese data highlights pressures building in the global economy. uscp cpi data due out today. joe biden backs away from the immediate release of u.s. oil reserves. up next, we speak to carlisle cofounder david rubenstein. if you have any questions, you can tweet us. tom, looking at the markets. tom: it is a modest midweek bump
so far. 30 minutes into the trading day. francine: modest midweek. tom: the modest midweek bump of 0.2% 30 minutes in. inflation is front and center. factory gate prices at a 26-year high. the focus shifting to consumer prices out of the united states. it could be the highest since the 1990's. markets are now pricing -- this is the view of the markets starting to price that by early 2023 that could bp great hike cycle. will that change? it is flat on the dax. gains of 0.1% on the cac 40. stronger picture here in the u.k. gains of 26 points. part of that is down to what you are seeing in energy prices. brent is up. wti is up.
biden is not yet ready to tap into the strategic reserves. let's break it down sector by sector. you have iron ore that is lower on the concerns and china around property. you have those grace periods. energy is gaining 1%. retail is also up 0.7%. consumer down 0.7%. about 32 minutes into the trading session in europe. francine: i like that, 32 minutes, we like to be precise. tom mackenzie, very precise. david rubenstein was a successful lawyer who was an advisor to president carter, he now sits on the boards of top institutions. he has also found the time to publish two books and hosts his own tv show which airs on bloomberg tv. dani burger is sitting down with him ahead of his appearance at the superreturn international
summit. over to you. >> thanks so much. i'm really pleased to be here with david rubenstein, cofounder of carlyle group and host of the david rubenstein show. david, thanks so much for sitting down. i know you have a busy day ahead of you. you are giving the keynote speech tonight. i don't want you to front run it. but can you give us a little taste for the people here at this conference, the titans of the investing world, what is the number one question the need to be asking themselves? >> right now, when you think about it, this conference was held two years ago, if you had known two years ago we would go through covid-19 as bad as it was and an economic recession as bad as it was, you would have thought the private equity world would have gone down. it is healthier than it has ever been. my point today is that if you looked at the most important economic and geopolitical issues
facing the world now, is it likely we can also ignore them over the next two or three years and have a private equity world be in a bubble of its own? my concern is that maybe we can't, so i'm trying to get people to pay attention to the economic and geopolitical issues because they will probably affect the private equity world. i'm not sure we can escape being affected by them as we had over the last year and a half. >> what are these issues you think we won't be able to escape? >> when interest rates go up as they inevitably will, will asset prices come down and will be more difficult to sustain the values people had over the last year and a half? the biggest geopolitical issue is the u.s.-china relationship. it is not as pleasant as we thought it would be after biden was elected. it is probably no better than i was under president trump. i think people have to worry about investing in china or doing business with china, and also what are the ramifications if the relationship gets worse? suppose something happens with
taiwan, how will that affect the chip business? those are the two big issues. u.s.-china and economic interest rates when they do go up and the bond buying stops, what the impact on private equity and the stock market. >> let's dig into china a bit. last year, you talked about the u.s. being the best place to invest, but china was not too far behind on your list. given the changes that have happened over the past year, is china still an attractive place to be investing? >> china is attractive, but not as attractive as it once was, in part because the regulatory environment has gotten to be much more complicated, more american companies are afraid of doing business there, and china has made some steps to kind of thwart some of the efforts of some of the chinese business leaders to be more visible. it is not quite as welcoming as it seemed to be two years ago. it does still have 1.4 billion people, to consumer base, and it
can do well for people who can invest their. you have to know what you are doing and be very careful. >> you kind of can't ignore china. it is so huge. considering some of the geopolitical tensions, how in general should we view china and their place in the global community? >> china was the biggest economy in the world for most of organized history and then in the 1700s europe and the united states came along. china thinks it is regaining its rightful position. china was roughly 1% of the world's gdp when richard nixon went there and now it is 17% of the world's gdp and will probably continue to grow at the pace it is growing. at some point in your and my lifetime, china will be the biggest economy in the world as measured by gdp. as measured by purchase price parity, it already is. >> let's bring it a little bit closer to your home and the carlyle group's home in washington, d.c.
the house passing the infrastructure bill. how important is this that this gets to fruition and put into action in order to have the usp competitive with places like china? >> it is a very good bill to have been passed. it is a five-year bill. over five years, above what we would have otherwise to appropriated, it is $100 billion a year, which is not nothing, but it is not going to dramatically change things overnight. it is important that it passed. it shows the president has the leadership ability to get something through congress. can he get the soft infrastructure bill through, which is much more politically difficult? >> some of the proposals, higher corporate tax, how do you see that discussion involving? is it going in the right direction? >> i don't think they can pass the soft infrastructure bill, or the build back better bill with tax increases in there. i think it is unlikely that you
will have anything except marginal tax increases. because senator cinema and senator manchin are not in favor of these tax increases, i suspect it will have to be paid for in other ways. >> what are those ways that you could pay for it and still have a constructive business environment? >> what people like to do when they want to pay for something in washington is they say we will have higher economic growth. you will probably get some projections of higher economic growth, greater irs enforcement, and try to find money and places it was not spent before. they will take some of the covid money and apply it to this. there are some games that people play. one of the things is this is 10-year spending. we are going to spend money in years 1, 2, and three, and we will get taxes back and 8, 9, and 10, but that never actually happens. the 10-year budgeting system allows us to get big deficits
and big debt. when the budget act of 1974 was passed, the debt was under $1 trillion. the debt is now roughly $29 trillion. the system we have is not really working to keep the debt and deficit low. >> you mentioned the political hope for economic growth. are you confident about the growth trajectory of the u.s.? >> i think we have a pretty good situation coming out of the recession we had before. i would say the covid situation was helped by the enormous spending by the congress and the fed's easing up of interest rates and bond buying. as we get out of that probe learn -- program, i suspect you will see some asset prices go down a bit. i don't worry about a recession in the near term. >> a great optimistic note to leave it on. david, thank you so much for joining us. the cofounder and chair of the carlyle group and the host of the david rubenstein show. tom: thank you very much indeed.
just a reminder for our viewers, david rubenstein is the host of the david rubenstein show which airs on bloomberg television. we have some movers. francine: we do have movers. marks & spencer flying off the shelf. see what i did there? this is a big company in the u.k. that is clothes, previously considered as a little frumpy, now they seem to be doing a little will -- a little better. they raised their profit forecast for the second time this year. they are looking at strong suit sales and recovering clothing demand. the long-awaited turnaround does seem to be taking effect. tom: i remember when it had international branches in french -- france and beijing. adidas is falling under pressure. on the back of supply chain constraints. vietnam, where they produce a lot of their items.
but also boycotts and china over cotton and concerns about she and jane. under pressure by about 6% in the session. francine: i tv, another gainer. gaining some 8.6%. it jumped after the broadcaster says it expects full-year advertising revenue to be the highest in its history as it is rebounding from lockdowns and it does bring back rands -- brands saying they want to go back on tv channels. continental reported a big drop in earnings for the first quarter as the chip shortage hits global car production. we speak to the cfo next. this is bloomberg. ♪
tom: welcome back to the open. 44 minutes into the trading day. gains across the stoxx 600 of about 0.1%, just paring some of the earlier strength we saw. in terms of what we are seeing in the u.k., gains of 0.4%. different picture over and france, where you are essentially flat, as you are in germany as well. switching to the corporate's. continental has reported a 42% drop in adjusted ebit for the
third quarter. europe's second largest car parts supplier says the drag from the chip shortage and higher prices for raw materials is growing significantly. joining us now is the cfo. sir, thank you for joining us this morning. the drag for the input costs and the supply chain constraints are on semi conductors. give us the timeframe for how long you expect this to persist and the measures you when the team are putting in place to mitigate some of these impacts. >> these are two different topics which we are talking about. the one thing is the raw material price inflation which we see. we had 300 million more in input costs then we had had in the year before. the good news is nevertheless we have managed double digit earnings in this division. the other good thing is in this group as well the trend toward the big rim tires positives
continue. but you are right, specifically the semi conductor shortage which we are feeling at the moment is heavy weighting. as well, adding two extra freight costs, shipping costs are increasing. how long is this going to last? difficult to predict. we expect that capacity increases from our suppliers will be there in significant ways only starting in the second half of next year and even this is not completely guaranteed. we are working on many issues to get better there to improve our delivery and make sure that long-term we will not be had from such a short adjust we are at the moment. francine: so, at this point, what is your biggest concern? energy, chips, something else? do you worry this will lead to some of your peers facing legal
challenges because delivery times are not met? >> the major concern at the moment where we are working most on is the semi conductor shortage which we see all over the industry, not only the automotive industry, but hitting us as well. besides having more than 700 people working on getting as much chips in time to our customers as possible, we are working as well annoy more long-term perspective. lessons learned, as an industry, how to improve and be more safe against the threats that we are in the moment in the future. tom: when it comes to the margins because in put prices crucial, you are guiding 5.2% to 5.6%, so quite a way away from the medium-term. when do you think you get back there? have margins started to bottom? >> i think the good news of all
of this will be as supply is increasing, we don't have any problem with demand. we see our sales should go up and increase and this would be a big step toward our target margin of the 8% to 11%. francine: what is the one thing that actually you think we should have foreseen? i don't know whether it is energy prices. it is incredible that some of the supply shocks no one had foreseen. are we going to have a better reading on some of the raw material shortages and the energy prices in the future? are we measuring things wrong? >> at least we are working on these topics to make sure that our demand forecast is not getting better, translated into supply chain topics which we
want to get better. not only as an automotive industry, but this is true for many industries. i know many are working on this to be more resilient against these types of situations, which is unique. very different from the last financial crisis. to get better and more resilient, to get better through situations like that then we have done it in the past, to find the complete remedy against the raw material price increases, the business needs to be strong enough to make sure that these costs which are heading the business can be passed over to the consumer. i mentioned again our business where the mark in -- margin is still double digit. tom: very quickly, any more spinoffs for the business or acquisitions amid this transition to ev? >> i don't expect any spin off
and the powertrain business or any other business in the months to come. francine: thank you so much for joining us. as always, the continental chief financial officer. we hope one day very soon to see you face-to-face in our london studio. let's get straight to the bloomberg first word news. >> france's president is presenting a bright outlook for the economy in a national address. the president warned older people they must get a booster shot or see their so-called health pass deactivated, stopping them from going to cafés or restaurants. the u.s. vice president meanwhile is embarking on five days of diplomacy in the country as she looks to heal a rift between the u.s. and its oldest ally. she will meet with the french president today. the health secretary has told frontline national health staff in england they must be fully vaccinated by april of next year.
over 100,000 nhs workers are not yet double jab. 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. this is bloomberg. tom: coming up, the beginning of the end of cop 26. the draft of the summit communiqué now released. we will discuss what it means for the future. this is bloomberg. ♪
francine: welcome back to the open. 50 minutes into the european trading day. a lot of stocks and movers are kind of trading sideways. earnings beat estimate's in terms of forecasting. now they are kind of trading sideways, looking unto u.s. data , cpi later today. a draft text of the summit communiqué was released from cop 26. it will go to consultations as the meeting in glasgow enters its final phase. our cop editor joins us live. first of all, what should we make of this? will cop he remembered for some of the pledges on the communiqée
or some of the protests? >> it is an interesting question. i think the protests were certainly spectacular, but now we get down to the nitty-gritty of the documents dropped this morning. we had been promised them around midnight and they did not emerge until somewhere around the 6:00 hour, so that gives you some indication of the degree of haggling that is going on. on the one hand, the language on temperatures, the paris agreement talks about keeping global warming well below 2 with efforts toward 1.5. the u.k. has been talking about keeping 1.5 alive. this is important because the fallout of 1.5 is very different to 2 degrees. the language is pretty much the same as what we got from the g20, so not much to write home about. but what we do have is a bit of push from climate vulnerable countries and the u.k. and the u.s. to get countries to rewrite
their climate plans and to do that quickly. the key thing is that this decade before 2030 is seen as a crucial moment to get us on track to slow global warming. what we do have in draft is a push for countries to redo your homework, have another look, strengthen your country's climate plan, and bring it back crucially before the end of 2022. is this binding? no. everyone is meant to put in ndc's. india still hasn't. the language reflected in the text does mark a slight cranking up. tom: ok, thanks to emma ross-thomas, our cop editor on the ground. the gap between the rhetoric and
♪ >> these businesses will be more focused. there will be a higher, greater level of accountability. we should have sharper -- strategic capable. >> do business in. specifically they want teslas. >> i am confident that we can get there. human beings created this problem and human beings can solve it. announcer: this is bloomberg "surveillance" early edition with francine lacqu