Skip to main content

tv   Bloomberg Markets European Close  Bloomberg  April 21, 2022 11:00am-12:00pm EDT

11:00 am
europe. this is bloomberg markets: european close with guy johnson and alix steel. anna: welcome to the program. this is the european close. i am in edwards in london alongside kailey leinz in new york. both alix and guy are off today. we checked into the markets just about an hour ago and worth a mention once again. this is what we see in europe. the stoxx 600 up .4%. earnings season back to center stage. plenty of big european names
11:01 am
reporting from a host of sectors in the earnings story and pricing power, the ability of companies to pass on higher costs or consumers is turning out to be crucial. we had seen the euro move higher in the earlier part of the trading day. earlier on this morning we heard from the vice president of the european central bank talking about there was a possibility he could see a rate hike as early as july. that was adding on to other seemingly hawkish commentary of a similar nature and we put in the german two year yield in the italian two year yield because all of those were moving on similar sentiments. gi -- kailey: drama in treasuries, drama and a lot of stocks.
11:02 am
we are getting earnings in the u.s. and our big movers beneath the surface of the equity market. a big heavyweight is tesla, higher 8%. that is helping lift the nasdaq 100. tesla beating on profits. sounding optimistic about the ability to work through supply chains. that is giving a big lift to some of the airlines, united is up 12%, american is flying after their strong results. optimistic on the demand story. united says it will be returning to profitability in the second quarter. the airline sector is up 6%. in the bond market you are seeing yields moving higher across the treasury curve. the 10 year update basis points. anna: let's return to the geopolitics. president joe biden says mariupol has not yet fallen to russia, or the president of the
11:03 am
united states says there is not evidence of that yet despite vladimir putin declaring victory the city. we heard janet yellen saying the united states is working with allies to support the ukrainian economy. for more on the war on the ground we welcome richard barrons, former head of the joint forces command in the u.k.. welcome to the program. thank you for joining us. give us your assessment of the risk ukrainian forces now face in the east of the country. as we center our thoughts around mariupol in the wider donbas area. richard: the mariupol battle is effectively over. that is a strategic win for russia. it has taken a lot more effort than they expected, but it is a win.
11:04 am
the battle for the donbas is underway. the risk to the ukrainians is the russians and circle them and there is a russian breakout into more of eastern ukraine. that risk is small. the risk for the russians is the ukrainians keep them out and batter them some more in the russian forces run out of steam. kailey: while we are talking of risks, we have the news russia had launched an icbm capable of carrying nuclear weapons. what signal do you take from that and whether it signals any likelihood those kind of nonconventional weapons may be used in this war? richard: the missile that was launched is a super heavy intercontinental ballistic missile. it is a weapon that was focused on the united states. it was grandstanding. it has no role to play in the war in ukraine and i think it was probably done to coincide
11:05 am
with that success in mariupol and the close proximity to the russian orthodox easter at the need to say something powerful that look positive. anna: president putin said it was designed to give the west something to think about. we will see about that. what about more tactical short range nuclear weapon rate. as that's on than we rule out or do we rule nothing out? richard: the way this war has turned out has been a litany of surprises and lies. it would be a mistake to rule anything out. there's is currently no advantage for russia to contemplate using weapons of mass destruction in ukraine. it is a question that may come around again if they were in danger of significant strategic defeat in ukraine and they do not feel that now. we should bear it in mind but we should not think it is credible at the moment. kailey: your assessment is
11:06 am
deterrence as a strategy still works? richard: we are working out, we will have to do deterrence differently. we have fallen into the habit of thinking of deterrence as the deterrent, the nuclear deterrent. what we have seen in ukraine is we have failed to deter russia from taking this extraordinarily aggressive act against ukraine. we will refashion deterrence to include credible conventional deterrence and that is the question about the revitalization of nato that is underway now it will come to a head at the summit in madrid. anna: you are one of the staff leading the u.k. armed forces. you also have plenty of nato experience and you mentioned nato. what should be the focus of that revitalization? i know you've been critical of nato's readiness for what might lie ahead. richard: the starting point for
11:07 am
the debate is nato has failed to deter president putin from thinking he would get away with this aggression in ukraine. we should also recognize that nato has become so demobilized, actually for understandable reasons at the end of the cold war. despite the west's much greater latent power we have ended up in a situation where russia thinks it can dictate the terms of engagement to the west. that is an absurd place to be. we are going to see the revitalization of nato as a proper military alliance. people need to get bigger and we need to modernize for the war of the 21st century, not the closing stages of the 20th century. when it does that it will have russia in mind but it will also have and i on what world looks like that is increasingly dominated by china and the destabilizing effects of climate change and the dislocation.
11:08 am
this will be nato stepping up to protect western security values and prosperity for a much larger world. kailey: what do you see is the chances nato may have to get involved in the war in terms of use of force, that potentially the war in ukraine spills over into nato countries? richard: it is a very remote prospect at the moment. the policy has been very consistent and there would be no consensus amongst the nato members about this becoming a war between nato and russia. it is not something you can exclude, because if vladimir putin decided to extend the war nato would respond. you cannot rule out the russians doing something that was so egregious involving weapons of mass destruction in ukraine that the population of the west said they were so outraged that nato
11:09 am
was now going to intervene in ukraine. we are a long way away from that. anna: a long way from that. let me stick with the theme of nato. we have seen finland and sweden discussing membership. both are much closer membership than they have looked in the past. what change with that build -- what change with that bring in the baltics, what difference would that make for nato? richard: is hugely significant because it finland and sweden were to join the alliance, it would put them under the article five umbrella, so it would enormously strengthen nato's northern flank and via massive strategic concern to russia. they would see it as another net loss to their own interests. we should recognize that unlike many of the more recent joiners to nato, both finland and sweden would at military capability and resilience to the alliance. it is a win for nato if they joined. kailey: speaking of other allies
11:10 am
in terms of the european community, obviously there has not been a move on russian oil and gas. there is growing pressure for them to do so. if they made the move, what is the lag time in terms of how quickly it could make a difference in the economics of vladimir putin's war? richard: sanctions are powerful but they take time to work and are always a bit uncertain. in the case of russia sanctions against an energy driven economy can be undermined by finding other customers elsewhere in the world. part of this is about europe finding its own energy security so it does not feel the vulnerability it currently feels. we need to recognize the war in ukraine has a military dimension in ukraine. it has a strategic dimension which is about provoking a
11:11 am
discussion in russia and in moscow in particular about what sort of life they want, what part to they want to play in the international community because right now they are being made a pariah in economic and sporting terms and they ought to think that is a terrible outcome for the modest price of a small bit of ukrainian territory. kailey: richard barrons, former head the joint forces command of the u.k.. thank you for giving us your insight. coming up, we continue the discussion of the fallout of the war in ukraine. former secretary of state john kerry talks about its impact in pushing greener economies. we are also paying attention to janet yellen's remarks at the ims g20 meeting. she is pledging to work with allies to support the ukrainian economy and is deeply concerned about the rising threat of food insecurity it is reiterating the pledge of $500 million for the ukrainian government.
11:12 am
we heard president biden detailing some of that aid later today. you can follow janet yellen's remarks on life go if you wish to hear them. this is bloomberg. ♪
11:13 am
11:14 am
kailey: welcome back to bloomberg markets: european close's top the special presidential envoy for climate john kerry joint bloomberg and talked about how the russian warhead setback progress on global energy. sec. kerry: europe is doing
11:15 am
that. there is been a massive step up of commitment of the countries in germany and a major deployment of renewables, way beyond what they thought they were going to do on the current schedule. they are about to take major steps to decouple their gas and oil dependency with respect to russia. things are in flux. is there a momentary hold on the progress we are making? the answer is yes. it is unfortunate. in the long run i think most countries have come to understand they do not want their source of energy to be weaponized by another country. they want the freedom to be able to move to cleaner energy and they are going to. i think it could wind up accelerating the transition. there are 20 countries that equal 80% of all of the emissions. 65% of global gdp is now committed to pursue legitimate
11:16 am
plans to achieve a holding of 1.5 degrees as the limit of warming. the ones that are outside of that 65%, the other 35% include china, russia, india, indonesia, brazil, mexico, south africa, saudi arabia. it is a problem and we will have to get them or it will create a huge challenge to our ability to meet the goals we have set in paris and glasgow. >> as former secretary of state, how worried are you about russia that this war is extended beyond the borders of ukraine? sec. kerry: i do not personally believe it will extend. obviously knows what vladimir putin will decide to do. we know there is a lot of personal motivation in what he
11:17 am
is doing. it is anybody's guess. i personally do not think it will go beyond come into his recent announcement about not assaulting the steel mill in mariupol, his shift to the donbas may be the sign of a limited set of ambitions then he began with. it is dangerous and we all have to be extremely vigilant not to provide any mistaken sense of opportunity on his part. i think the reinforcement of efforts in the baltics, i think the movement by finland and sweden to consider being part of nato, all of those are very important measures. hopefully we can do it in a way that still gives president putin and offramp, way for him to be able to get out of what i think
11:18 am
is an unbelievably bad calculation on his part in a miserable outcome for human beings. janet: what would it take for the u.s. to get involved directly? sec. kerry: if he touches nato in any way whatsoever, we are more directly involved. i would say we are pretty involved now, but not in the way people interpret it directly. if he steps too far, the united states will not hesitate to take action. anna: that was the u.s. climate envoy john kerry speaking with bloomberg's janet wu talking about climate and the geopolitics and the war in ukraine. coming up, twitter says it is conducting a careful and comprehensive review of elon musk's upgraded proposal to buy the company. we will have the details, next. ♪
11:19 am
11:20 am
11:21 am
kailey: funding secured? elon musk says morgan stanley and other financial institutions are helping his bid for twitter, giving about $25 billion in debt financing. another $25 billion will come from elon musk himself. ed ludlow covers twitter and he is joining us from san francisco. we have heard from twitter, they received the bid and will do a comprehensive review. ed: it is interesting because in the amended regulatory filing, elon musk's associates pointed out twitter had not responded to the additional $54.20 a share of that on april 13. you raised a good point. he is getting $25.5 billion of debt financing, but $21 billion of equity out of elon musk's own pocket. you said it, funding secured.
11:22 am
elon musk has not set it. you have to question where that when he one dollars is coming from. anna: and linking to the other story you've been covering, are the other options tesla stakes? sec. kerry: -- ed: one of the options is he could sell down his tesla equity. if you go to the bloomberg and hit the wealth analysis to it will show you the breakdown. he has options. boring company, another one of his investments raised $655 million overnight. it is hard to keep all of this elon musk stuff in your head. that is one option. tesla is doing well and he has not sold stock in large volumes historically. kailey: let's talk more about tesla. it is doing well in today's trading. a lot of confidence in the
11:23 am
ability to withstand supply chain challenges. is that confidence backed up in real terms by what we are seeing in the world, considering they talked about shanghai and how that impacted them and will impact them in the first half? covid zero in china is not something we can guarantee is going away in the second half. ed: there seems to be contradiction. supply chain issues would continue to the end of the year. they say they have seen raw material costs rise from the first quarter into the current second-quarter. they mentioned in the shareholder letter that chips continues to be an issue. the gout record profits. they have margins -- they eke out record profits. they appear to have more levers they can pull on the pricing side and the ability to manufacture and scale more profitably. it is not that they are
11:24 am
circumventing the supply chain issues. the supply chain issues are still there, but the most important part is they reaffirm guidance. anna: that matters from another angle. if you are facing higher cost you want to know you can pass some of that onto consumers. tell us about pricing. ed: we have seen tesla raise prices multiple times in recent months on all of its products. what elon musk said was it may seem unfair to raise prices and a quarter where a company sets record profits, but some of their suppliers are increasing their prices by 20% to 30% in elon musk's argument was the prices of vehicles today are reflective of the price gains in raw materials and input costs the company expects on a 12 to 18 month time horizon. they were also bullish in writing that as time passes, profit will be boosted by
11:25 am
software sales, which is much higher margin revenue, and some of that links to robo taxis and self-driving. kailey: we thought about 10 minutes ago we were going to get a launch of spacex, falcon 9 rocket launching satellites into low-earth orbit. we understand that has been delayed. ed: it has been allayed to 1:51 eastern time. out on the cape in florida they get inclement weather. the weather can change, and that is the biggest factor to delay a launch. this would be the 16th launch of the year for the falcon 9 booster and spacex. it has become normal. while there is a delay and i know you are excited about it, there's a chance later today they send up another 53 star link satellites and that is such a big part of the spacex business. anna: thank you by much. talking of the weather, it looks better in london than in san
11:26 am
francisco. ed ludlow joining us with the latest on tesla and twitter. let's take a look at where european markets are training. we are coming towards the end of thursday's trading session. a holiday shortened week for european equity markets. as we get towards the end of thursday, we are up a little on the ftse 100. almost unchanged on the ftse 100 , the dax up more than 1% and the cac 40 up more than 1.5%. the sector breakdown explain some of the difference. a lot of action and bond markets. we did have action earlier on in the euro. we will update you on the european trading picture when we come back. this is bloomberg. ♪
11:27 am
11:28 am
11:29 am
♪ welcome back to the european close and equity markets edging their way towards the final few
11:30 am
seconds of the trading day this thursday. welcome back to the program on bloomberg tv. the european trading picture this is what we have as we edge towards the close. a mixed picture. the london market flat. real gains being made in paris. frankfurt doing well. another one of those down there in italy. a mixed picture geographically. we'll come to the sector break down shortly. that will explain a little bit of what is going on here. luxury names certainly part of the story. the french market helping to lift things. this is how the session has played out. we have seen the stocks make gains towards the start of the day. hold on to some of those but lose ground as we see trading in the united states kick in. in terms of where we are on other assets. that's something we need to keep an eye on. the relationship between stocks and bonds crucial for investors at this point. also the expectations around central banks crew -- crucial. it they have been moved the bond
11:31 am
market anti-currencyerly yer. and the currency earlier. 108.55 is where we trade on the eurodollar. the latest voice to talk in hawkish terms about what to expect. saying that july could be live in terms of interest rate hikes. could be. that's what we could see an interest rate hike. with that in mind, we saw the eurogo high with closing out the session fairly flat. we also saw some action in the front end. also the middle of the curve when it comes to u.k. debt. the u.k. two-year yield making moft higher. the german, french, italian yield moving higher and others at the e.c.b. in the u.k., the comments from the bank of england is moving things around. industrial goods and services playing well for frarches. france.
11:32 am
basic resources to the down side. that is one of the biggest losing sectors or the biggest. that weighs heavily on the london market. that goes to explain why we saw a divergence between the french and london market. it's a day where we are focused on earning stories. here's two of them for you. necessarily is up by .-- nestle is up .7 of a%. when it comes to coffee and chocolate, we'll pay. akzo nobel is another company when it comes to pricing power. up by nearly 7%. this is a home improvement business. or paint for all kinds of different trades. and coating. industrial but also exposed to the consumer. that business talking positively about its ability to pass on costs. also talking quite positively about how costs might start to come down in the second half of the year. shell is a different story. not necessarily one that moves
11:33 am
the share point that much. worth a mention. we see politics to the fore. it does seem there are a number of chinese buyers that have come together to express interest in buying some of shell's assets in russia. that is something that geopolitically we keep a close eye on. kailey: we have more news in relation to that from exxonmobil. exxon mortgagedly is mulling russia withdraw by june 24. according to reuters. those shares where they were trading up about 1% on the day. let's turn back to the other story, the e.c.b. i vestors are preparing for the european central bank's first rate hike in a decade which maybe could come as soon as july. e.c.l. president says the bank will assess the data. the vice president sees an-t ending in july in a possible rate hike is possible in that month. that echos remarks we heard from the likes of martin over the last couple days. joining us is arend kapteyn, cloabl head of economic research
11:34 am
for u.b.s. your thoughts? arend: clearly anything is now possible. the larger the market applied after the press conference they haven't done half months of a.p.p. if you stop in q-3 you do a.p.p. in july and skip the july 21 meeting and can't start until september. if now they say that actually you could hike in july, which must imply you change the guidance again stop in june which is not q-3 or do a half month. you have four meetings in play. kate lin: ok. kailey-ily: , it's only last week we were talk -- last week? arend: we are rethinking it by the day. after last meeting we had two hikes, september to december. now we need -- if they go in july rethink. the other thing it signals is more urgency -- if you have a gap between june and september to do the first one it implies you are at a pace.
11:35 am
if you are going on an off quarter meeting. the quarterly projection meetings in july. then basically all the meetings are in play. we'll have to go back to the drawing board. anna: christine saying it's going to depend on the data. she warned in that same statement of upside risk to inflation. how large do you think that upside risk is? arend: the
11:36 am
what is happening at the corporate level inel in investm? anna: move towards the united states. you said in passing you think we have reached peak inflation in the u.s. what does that do to your thinking?? the feds trajectory is not the same as when inflation peaks. what doesdoes it do to your thinking? arend: not very much. it's a peak from a high level. are you going togh level. stay about 7% forrare you going to the next c. they are going to deliver most of the cycle until inflation --- before inflation comes down. we think you are going -- in the month to month, are you starting to see starting to see the decelebration particularly in core goods. we had the first negative prints since february of prints si last year.nce february of good news. that's the pressure that seems to to be subsiding. for the fed it doesn't matter t will take so long for the year on year to come down to something closer to target that most of the cycle will be over..
11:37 am
i think 225 at the end of the year. anna: talk more about that. we are hearing from san san francisco fed president, she's speaking on another network, she says the fed is likely hiking by 50g by 50 basis points at a couple of meetings. then she goes on to say there isn't a sign that the u.s. is going the u.s. is to tipgoing into recession. kailey: do you think the fed can movefed can move back quickly and nail a soft landing? arend: if you are just going to deliver are just going t what to deliver pricing, i think it's possible. if you do 300 basis points, that's not a small tykele, it's sort of containable. most of the impact will be on the housing market. we are will go seeing the housing market soften amarket se bit f that's all you do, then we are sort of ok. there is enough covid recovery winds that are helping. of course the u.s. is benefiting from all they'll commodity prices. they have a bit of terms of tradeoff set tradeoff set helping them offset some of the consumption weakness. i think it's possible.
11:38 am
but it's notot but it's not without risk. the faster you go the riskier it comes. one example, themple, the lebban market, once you get past 150 you'll see downgrades. we are at a tipping point here where you have to be very cautious in going more aggressive than i think what they are signaling, which is why this comment about 75 is a unnerving. anna: we kept saying -- it opens up the conversation. if that would be essential. maybe not. sticking with these comments from maryfrom mary daley, do i a wage price spiral beginning. she says lateen she says lateen markets are producing an inflationary push for wages. how important is the link how import between inflationant is the lint this point when you look what central banks around the central banks ar world are doing?ound the does it go t arend: historically there is little between wages and prices.
11:39 am
the good market clears and the wage gets ash soshed. right now market is notmarket it clearing. the reason there is pricing power is because there is a shortage of goods. everyone passeses those costs on. temporary. temporary. get in the second half of the year, that pricingas you por evaporates and goes back to the old old relationship where the wages are not a big factor for inflation. the other thing on the u.s. which is interesting, thes intee pressure is incredibly skewed to the under 24-year-old. they are gettingare getting 10%e increases. if you look at everyone above age 24, you are not even at the early 2,000 levels in terms of what wage momentum is. i agree with her. i'm not worried about the wage aspect of the sustaining inflation. historically thoseorically thoss are not big. for europe they are bigger. if we are starting to get wage drift in europe. we drift in e are beginning to get. we basis points of basis in europe, add 20 to the quarter inflation forecast. that's a lot. a difference between meeting the target and not meeting the
11:40 am
target.. target. kate lin: i want -- kailey: i want to point to another headline. a third 50 basis point in july. looking at three in a row here. you were talking about the difference with europe. i know you think that the fed may be if their careful can deliver a soft landing. the u.s. won't tip into recession. what about europe? arend: if youif you do what's p, and you go to something, bit over 1%, the cycle iscycle is sr than the u.s. it's possible. europe is a whole different animal because you have all thee russia-ukraine risk. we'll have to see whether there's an energy disruption. in disruption. in theory the cycles that are priced across markets are not large. they are very front-loaded butft not large large in cumulative terms. you are coming coming off a twor period where there was a lack of investment, bore ring. in that sense it doesn't feel like this is an overstretched market. i think if you just deliver what
11:41 am
the market is pricing, it's not that big a deal. including europe. anna: thank you very much. arend kapteyn thanks for spending time with us on these markets. talking about these markets. we should tellshould tell you ws happening with the end of the european trading day. as we go throughugh settlement e are up by .3%. the daks -- dakss up. we have quite a lot of die ver gents. kailey? kailey? kailey: breaking news we want to mention. apparently warner brothers discovery is shutting down cnn plus. this is according to reporting from variety. this is cnn's streaming project. it launched less than a month ago back in march. it has brought on hundreds of people. the goal was to establish a closer relationship with consumers. in the same way a netflix or hbo max would operate..max would op.
11:42 am
variety reporting that cnn plus is getting shut down. interesting to contrast this with the resultstrast this we got from netflixxwith the res . theults subscriber losses there. raises a question how systemic this is among streaming platforms. that's something we'll continue to follow. we also continue to we also con follow thetinue to situation in ukraine. and the economic ramifications not just for the global economy but for the global eco russianoy but for specifically. the situation just got a lot more serious. we'll talk with the head of emerging market debt at bloomberg asset management next. this is bloomberg. ♪ . ♪
11:43 am
11:44 am
11:45 am
: this is bloomberg marker the european close. coming up the occupyon pacific c.e.o. lance fritz joining us on balance of power. this is bloomberg. ♪ : here's the "first word." in china the president has defended the country's reliance
11:46 am
to fight the coronavirus. despite mounting economic would hes she reaffirmed the underlying goal. in a video steve to an asia forum. chinese is in the midst of the worst covid outbreak since the beginning of the pandemic. hong kong is beginning a slow mass to normality. sports facilities and gyms reopen. restaurants will stay open later and people can meet in larger groups. more restrictions will be raised in the next few months. and a $325 million super yacht tied to russian gold billionaire won't be leaving the south pacific island nation of fiji. a court has ordered the detainment of the yacht. the u.s. has a warrant to seize the vessel as part of sanctions imposed following russia's invasion of ukraine. 24 hours a day on bloomberg quicktake powered by more than 2700 journalists in more than 120 countries.
11:47 am
this is bloomberg. anna. anna: thank you. russia is inching closer to its first foreign debt default in a century. the latest development, the c.d.d.c. has judged russia breached the terms of two bond. let's brick in polina kurdyavko, active management head of emerging market debt. good to see you, polina. we'll talk about russia but other emerging markets as well. start with the russian story. this determination from the cddc there could be a default event. essentially if they don't pay up by early may when a grace period ends. do you think the market has concluded that this is going to be a debt that's in default? polina: thank you for your question. glad to be here again. the short answer is yes. i think that given the distress price of russian assets i think the market expects a high probability of default.
11:48 am
as you mentioned we have to wait for the fourth of may that's when the grace period expires. if russia happens -- manages to make the payment, then the next guideline to watch is the 26th of may because that's when the sanctions might block the coupon payments anyway. i think may would be a very interesting and headline heavy month when it comes to the payment of russian debt. anna: it's only a few weeks away. hypothetically if russia does default, what does that mean for chances of securing financing from even more friendly countries like china? polina: i would say that, firstly it makes lending more difficult. however i would say that it's not impossible to lend. i do feel that accessing foreign funding from friendly or nonfriendly countries will be much more difficult.
11:49 am
secondly, the question is, how do you get out of the default? the reality is coming out of the default will be quite difficult under the current regime. and that poses further pressure on future -- future russian growth. anna: thinking more broadly about eamericanning markets, how concerned are you about the confluence of higher interest rates in the united states, debt levels in emerging markets, and what all that adds up to? some of our colleagues at bloomberg economics concerned, concerned like it's the 1990's. polina: i would say that there is no doubt when the liquidity tightens globally. all countries face that pressure. and have to react. however, i would highlight there are two reasons why the glass is not empty for emerging market economists. firstly is the pace of monetary
11:50 am
policy adjustments. if you think about last year, the majority of emerging market countries had already embarked on the heightened cycle. by the end of last year with 300 to 400 basis points upward adjustments of the front end of the local currency curves. you could argue that developed markets have come in late to that party. and on the -- only started to raise right now. as a result you think about the performance of the emerging markets, the best performing global risk asset is emerging market effects. which is up on the year. partially reflecting that more monetary -- orthodox monetary policy regime. i would say the two changes in emerging markets now compared to 20 years ago have been firstly a more orthodox monetary policy regime. and secondly, a rotation towards
11:51 am
local currency debt which allow account for almost 80% of total emerging debt outstanding. which makes it more produceddent or which makes emerging market economies more resilient when it comes to their ability to withstand the current shock and service the debt. the second point i would make, let's not forget 2/3 of emerging market economists are still commodity exporters. they are benefiting in the current environment given where the prices are. kailey: a major emerging market economy would be china. talking of the monetary policy environment, china's sticking with covid zero. many say that will mean easier policy. you haven't seen that come to fruition in the last week. we didn't get a cut earlier this week. jinping didn't you will jail any pressures -- measures. how great is the down side risk to china as long as it sticks with the zero tolerance of covid? polina: i would say that even
11:52 am
without the zero covid policy, ultimately china should be on the path to be lower growth going forward. the question is how significant would the decline in growth be. and in my mind the zero covid policy is making that pace steeper. than otherwise. that's what we are likely to witness. when it comes to official statistics and the delivery, we know that chinese government in the past has excelled on that. and i would argue that when it comes to official numbers, if the chinese government said they have to deliver by the end of this year, chances are they will deliver. kate kailey: thank you search for joining us. we want to quickly retouch on that breaking news. bloomberg has confirmed that cnn plus will be shut down by warner
11:53 am
brothers discovery. we have a separate headline crossing from dow jones that cc plus content will move to hbo max. warner brothers discovery chairs down 7% in the u.s. trade. we'll have more details on this story coming up. this is bloomberg ♪
11:54 am
11:55 am
♪ kailey: we are tracking the move. >> it's about whether or not the peak earnings after two years of pandemic boom. a lot more earlier in the sesmghts a lot comes from the move. you are sealing in the yield spacing. once again tech very sensitive to that. from a earning perspective a good story. tesla up over 7%. in the tech space that's where you are seeing pain. cnn plus might shut down april
11:56 am
30 with some of that getting move to hbo max. anna: thanks so much. here is what we are watching in the next 24 hours. today the focus on powell and lagarde speaking. spacex also "in focus." the launch was delayed earlier. that was supposed to happen earlier. it will happen in about two hours. kayly: p.m.i.'s for the u.s., france, germany, u.k. on the earnings front. american express will be reporting. that wraps it up for anna myself. coming up lants frints union pacific c.e.o. will join balance of power with david weston. from new york in london this is bloomberg bloomberg
11:57 am
♪ ♪ ♪ ♪ ♪ ♪ ♪ ♪
11:58 am
11:59 am
>> from the world of politics. >> inflation is much higher than they were dealing with. they'll bring it back down. >> to the world of business. >> russia and ukraine together
12:00 pm
supply a very substantial portion of the world's exports. but it's not merely important though that may be a weak issue. >> this is "balance of power" with david weston. ♪ david: from bloomberg world headquarters in new york to our television and radio audiences worldwide welcome to "balance of power." ukraine is at the top of the agenda with president putin of russia saying his troops have taken mariupol even though there remain 2,000 ukrainian troops still occupying the steel mill. president biden said we'll send more aid to the ukrainians. to cover all this we go o our crackerjack washington round table. joe matthews. week days on bloomberg aido. and bill ferries who leads our national security coverage in washington. joe, start with


info Stream Only

Uploaded by TV Archive on