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tv   Bloomberg Markets Americas  Bloomberg  May 31, 2022 10:00am-11:00am EDT

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>> from the financial centers of the world, this is "bloomberg markets" with alex steele and guy johnson. >> it is 30 minutes into the u.s. trading day on this tuesday, may 31. here are the top market stories we're following for you at this hour. the what can we do meeting, fed chair powell and yellen talk
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about inflation. we'll break down what to expect. and turning off the tap. a partial ban on russia oil catapult to a two-month high. we'll talk to the head of commodities research. and the end of a messy months. stocks lose steam as traders rebalance. and some warn of a bear market. i'm alex steele. welcome to "bloomberg markets." guy, the month is finally over. it may look like we may close pretty ugly. guy: on the month it will be fairly flat. we'll wait to see what it looks like. we're not quite there yet. europe is looking like it may flirt with a flat line. the europe, you look at the s&p. data, here is the screen right now. in terms of where we stand with the u.s. consumer which is so critical right now and speaks to the conversation we're about to have regarding the jay powell.
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consumer confidence data 106.4, that's down from 107.3 but the economists who are having a terrible time of things at the moment in terms of predicting the economic tata had it at 103.6. present situation, 149 drp 6 down from 152. yeah, the data's softening but it ain't softening that much. it kind of speaks to the story we got from walmart and target. the consumer is still in fairly good shape right now. yes, the savings rate has come down right now but spending is still there and maybe this data kind of supports that a little bit. maybe the inflation narrative isn't quite so worrying for the consumer that we think it is. alix: not as terrible as we might have thought. guy: yeah. but i tell you what, though. the economists are having a shocking time, really shocking time. the european inflation data all over the place in terms of expectations. well below expectations. keeps coming through at a much
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higher than expected clip which is a big problem for the e.c.b. let's talk about central bank in more detail. you don't see these meetings very often. the last one was after the renomination process. president biden, alix, meeting with fed chair powell. we have janet yellen in the room as well. a wall street op-ed piece a little bit earlier penned by the president saying the most important thing for stable and steady growth is to bring inflation down. that basically brings us to our question of the day -- what should powell tell the president about inflation? let's talk about this meeting. let's bring in our washington correspondent and our international economic policy correspondent. amar'e, is this anything other man a photo op? >> you make a good point, guy. because the president last night in his opinion piece talks about
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the fact inflation, this is the realm of the federal reserve and wants to maintain an independent fed. he pointed to his predecessor who he said was demeaning to the fed. so when you think of that, brian said this as well. the president wants to leave it in the fed's hand. then, what is he doing in the oval office? it looks like this is just a show for the electorate. but obviously, they're going to catch up about the economy. this is while it's rare it has happened in the past. it's a little bit rare because it just comes after just a few weeks he was renominated by the senate to his second term given that green light to go ahead. but obviously, if you're going to leave the fed as an independent, you are not going to see a biden in this which the press won't get much of a glimpse to besides the opening comments. you're not going to see him pressuring the fed to do as much. so it looks like it will be a discussion where the economy is going. but likely, for a lot of us, it does feel like just a little bit
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perform tiff. alix: mike, you weigh in. we know what we will see. what should powell tell biden about inflation? mike: hang in there, buddy. inflation will come down. you should phrase your question of the day in the brooklyn accent, what are you goings to do about it? there isn't anything that jay powell -- that the president can do anything about it except raise taxes which he's not going to do and congress is not going to do and it's in the fed's hands. it's a pivot to the economy by the administration's political team. because the president is obviously taking a hit on the inflation question. and you can go back and argue whether or not it was all supply, whether it's oil prices or whether it was the fiscal package. but the president is the president at the time when inflation is high so he's going to take the blame. now, when you think about what's going to come out of this, it is going to be, as annmarie says, pictures of the president sitting next to jay powell and janet yellen. if you work on wall street or
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work in washington, you know it's meaningless. but if you're around the rest of the country it looks like, hey, these guys are paying attention. they're going to do something. we got their attention here. at least that's what they're going to be trying to sell. guy: ok. what are they going to do, then, mike? let's think about this from a political perspective. the mid-terms is coming up. inflation is a massive problem. brian was talking about this earlier. the president wants to ig signal. the independence of the fed is critical. if that's the message, then presumably what the fed should hear and what the public should hear the fed is going to do what it takes to get inflation down to 2%. and if that's the case, the fed might have to break the economy. so i'm wondering whether the president really is willing to accept that kind of volcker style intervention into this economy that may end up having a big impact on unemployment and may have a big impact on growth? michael: well, you have to take
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him at his word. but it doesee likely biden knows even owning the fed isn't going to do anything. the fed will not break off its mission of trying to do the best it can for the economy because they saw what happened to the fed in the 1970's when richard nixon pressured the fed to back off and they did. nel' keep raising rates. -- they'll keep raising rates. the question might come up if we see another meeting in august or something like that, because the next two meetings, do they do 50 again in september just ahead of election day? that will be an interesting question. alix: either way, annmarie, the 50 basis rate hikes won't do anything for gasoline prices or food prices. premium is so high. i don't have premium. it was like total sticker shock. what can president biden even say or do to make the public feel better about that? annmarie: it's really difficult because even today we have a fresh record on u.s. retail
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gasoline, $4.62. this is a day after memorial day. this is going into really peak u.s. driving season of the summer months. and obviously, this is an everyday reminder to americans and for many people, it's an extra tax on them. even if their wages are going up, how much that is being eclipsed by higher grocery prices, higher gasoline prices and what can the president do? in his op-ed yesterday, he did point to, obviously, the war in ukraine which has exacerbated what we have seen in terms of inflation and especially in the oil markets. he spoke about the release from the s.p.r. but the issue right now is not even so much actual physical barrels of crude oil. it's refining capacity. the president of the united states even mentioned refining capacity in his washington journal opinion piece that i felt like was a nod to a lot of energy watchers. there is no s.p.r. for refining capacity. jpmorgan says it's going to be $6. so what you're going to see is the president doing a lot of
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talking but there's not much he can do for those two things you mentioned. this is what every day everyone knows, gasly prines and grocery bills. guy: i am surprised he put that opinion in the journal, number one. number two, how many americans do you know knows jay powell? if you show a picture, how many americans do you think that will say that's the fed chair, that's jay powell? annmarie: i don't know. maybe mike can answer that. i can't give a statistical answer. but it's few. it is a few people. alix: i feel like it's a billy ike nor -- ichnor piece. michael: yeah. like people in the u.k. knowing who andrew bailey is. annmarie: i think we can say more people in america knows who b.t.s. than they know who jay powell is. guy: if you want to write a
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photo piece, you meet with jay powell who i suspect not many people know. i just wonder whether or not he will be better off meeting with oil executives or grocery c.e.o.'s, the c.e.o. of walmart. i appreciate the fed's responsibility is inflation and the photo op is designed to president the president on -- put the president on it. i wonder if the average man or woman on the street is the way of delivering that message. annmarie: this is a pivot to the administration in june for the economy. alix: and it's may 31, right? this is potentially at start of maybe we will see in terms of the photo op of this white house engaging a little bit more. with these issues. annmarie: and the executives that deal with them. alix: there is a scapegoat situation that will also be unfolding over the next few months. guys, leave it there. much more coming up in the next two hours.
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mike, annmarie, thanks for joining us. coming up, we'll continue this conversation and how the fed can avoid a hard landing. our next guest says probably. a landing will be bumpy. we'll talk to john hayden solt /* /* soltes fuss -- so -- stoltzfus. this is bloomberg. ♪
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alix: all right. the last trading day of the month of may and we're picking up a downside here. the s&p looks to be off by 1 1/2%. abigail has been tracking that for us. abigail: prior to the start there was green. we have declines that's weighing. obviously on the index. the s&p 500 is looking for the second down month in a row after a very difficult april. you have the nasdaq down 2.8%. it would have been down irrespective of the action today unless there had been a huge rally. you can see this is a big one, the msci down .6%. snapping what had been a four-month losing streak but now looking at the fifth down month for the world equity index. the bearish tone is continuing right here in may even though it looks like there's a little bit of hope. as for a bright spot that of course is commodities. if we take a look what's
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happening right now and where we're looking at the bloomberg commodity spot index on a monthly basis. the last streak for commodities since february of 2017. this is the bloomberg energy index. you can see that energy strength a big piece of it, the oil -- the rally in oil that we have, w.t.i. crude back near $120 per barrel. not surprisingly, then, the top sector this month is energy. soaring up 18%. this is also the top sector on the year. up 60% in the year after gaining 50% last year. so this energy rally is really just pretty incredible. and then in terms of the other sectors or all 11 sectors last time i looked that were higher that may have changed with this downtrend we're seeing. it's very energy you have utilities higher. with rates. and then u.s. financials and then headquarter. there is a defensive for sure, guy, for folks going into utility and headquarter. you have the utilities higher with rates higher it tells you
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how defensive it is even though it's a gain. guy: absolutely. abigail, thank you so much. indeed. meantime, mike wilson of morgan stanley that it's likely to have limited upside. the risk to growth remains prevalent. joining us is john stoltzfus, chief investment strategist at oppenheimer. let's talk where we go from here. you can say the fed can avoid a higher landing but looking at a bumpy landing. what does a bumpy landing look like for the s&p? john: thanks for having me on, guy. a bumpy landing looks like just like we're having right now in the sense if this is analogous to landing a commercial aircraft, we're down from 40,000 feet down to probably around 30,000, 20,000-some and experiencing some turbulence, ok, a little bit of extra
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turbulence than the type of turbulence you usually get coming in. for business travelers, nothing unexpected. going to london airport, catch a little bit of turbulence. nasty kind of stuff. my thought is here, what we've got is we're in the process of seeing the fed do what it does best. which essentially is address its benchmark rate that already finished the taper and now it's taking a glance of how much it's going to raise trying to estimate that. plus, it's keeping an eye on the balance sheet to start really reducing that. we do think the real thing that has to happen here, it's the price of energy that's the problem because it feeds everything in our economy. it's no secret. i mean, our clothes, the food we eat, the buildings behind me. everything runs on energy. and as a result of that, we think the administration needs to pivot on this very hardline
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policy it has towards fossil fuel. there is a gap between fossil fuel dependency and the new world of alternative energy. we believe in global warming. we invest in alternative energy. but we think it's too early to abandon fossil fuel. alix: so john, that would take a recalibration from shareholders, in particular, to give the green light to have industry pump more oil. if you were betting on energy in the last month you were up versus every other sector. how do you invest with that thesis? john: related to -- in terms of energy itself, in terms of the share price, it's been extraordinary what energy has done over the last two years up to now when you consider that it is still i think the worst performing sector since the peak of the s&p in october of 2007 before the financial -- before we really entered the financial crisis in depth.
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it's a matter -- it's a smaller segment of the s&p than it was in prior eras. it just happens to be of great importance right now because of all the disruptions that have been caused. some by policy here in the u.s. policy abroad in europe. and, of course, the incursion of russia into ukraine. of course, just the general effects of demand from china initially coming out of the crisis and then dropoff. there's all kinds of turbulence there. the administration needs to pivot. there's something wrong with pivoting. when we talk to people in the oil industry, you know, they say, why should i invest if i'm going to be put out of business? guy: absolutely. and every c.e.o., john, we talk to says the same thing. they are looking at super high costs. why should i invest when sand is so expensive, when labor is so
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expensive? can i just take you back to the issue of the balance sheet? john, just for a moment. we've seen q-e suppressing volatility. we've seen it boost asset prices. how are you thinking about the impacts q.t. is going to have? will we see increased volatility as it kicks in? will we see lower asset prices at the moment? have we priced some of that? will we see a bigger impact? john: i think without a doubt we've seen it priced in with the dramatic move from equities from the start of the year and the increased volatility on a day-to-day, week-to-week basis. we've got to think that going forward now it will really be able to judge it not off expectations, on modeling, of what's coming forth, a lot of projections which tend to be negative in their effect but
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actually taking a look how it comes across the plate when the -- when the fed starts moving to do this. and in the process, you know, of the bernanke legacy which is part of powell's fed, this is a much more clear fed. it's communicative. it's sensitive and it's not afraid to pivot. the word pivot is operational here. it's the key word. and it means -- the most important thing is to respond but when you see your respond, opt to pivot. alix: john, based on that. how do you know if yields have peaked? as of last week it felt like maybe yes and then we get this really chunky move in the bond market. we have the potential for more 50 basis hikes to am co. i understand your pivot point but how do you know how to invest if you don't know where yields are supposed to go? john: i think you have to figure here, we had a world of
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abundance, in effect fact, we had -- in fact, we had overcapacity. shuttering large segments of the economy threw everything out of tilter. the whole work from home business. the idea that the resignation, a lot of people resigned and retired early. a lot of turbulence here. but things are likely to go back where we came from because last we looked, there's still every bit as much as natural gas under the crust of the earth than there was before the pandemic. you know, plenty of oil to be had. guy: john, finally quick question from me. i want to make sure i got this right. your year end target for the s&p is 5530? is that correct? if that's correct, how do we get there? john: first, guy, when we put that in was december of last year. we couldn't perceive the incursion of -- into ukraine by russia and the chinese policy in
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terms of the lockdowns. but what we will see, the last time we saw a market that was in the process of coming out of a crisis, which was 2009, the s&p declined 25% from january to march of 2009. it then rallied 64% to the end of the year. if we get half that this year i'm at my target. guy: ok. you think that target is mrauz -- is possible? john: absolutely. we'll know that within the next few months. guy: ok. great to catch up, john. we'll have you back when you have another thought on that number. i suspect, as you say, maybe going to be above landing but we'll see how exactly that landing is delivered. john stoltzfus, greatly appreciate it, sir. this is bloomberg. ♪
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>> it's time for a look at some of the biggest stories in the news. more legal headaches for deutsche bank. the search is related to accusations of green washing by the asset manager. there had been claims that d.w.s. said they were greener than they were. activists nelson lass has been appointed director. and his son took a 1% stake in the company. the last c.e.o. failed to take over glasson smith kline and had to grapple with inflation. and student loan borrowers made no payments during the payment freeze. 60% of borrowers who qualified for forbearance didn't make a single payment from august, 2020 to 2021.
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some of the 11.5 million borrowers may not be able to pay on august 31. guy. guy: thank you very much. coming up, president biden will have a rare oval office meeting with fed chair powell. our next guest say it's --
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alix: we are one hour into the u.s. trading session and let's get a quick check on the markets . off of the lows of the session but it looks like we could end in the red today, erasing any gains that we saw over the last 24 hours and put us in a negative for the month of may. what a month it was. part of the action we are seeing is in the bond market. it is inflation numbers out of
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europe but also rebalancing your portfolio into the month but it is hard to know what to make of that 12 basis point move. all of it helping to propel the names in the green with top performers in the s&p. the only reason i have that in there is just to say that i saw "top gun," it made 127 million dollars in three days and it was a fun good movie. i highly recommend it as long as you don't have many expectations. guy: high expectations. i have watched the original many times, my expectations are very high. it was too sunny this weekend. alix: totally worth it. i stand corrected, $248 million. guy: that's a big number. it's an epic number. looks like an epic movie. all right, let's talk about another show.
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president biden is going to be hosting jerome powell at the white house with a focus on inflation. the policy meeting they said denigrates fed independence but we saw brian saying that that was the exact purpose of the meeting, to reinforce the independence. terry joins us now. i'm scratching my head, trying to work out for the average american why the president inviting the fed chair tortilla and writing a policy piece in the op-ed section of "the wall street journal" changes anything in any form. is the politics off for the team? >> i think the politics is about six months late and we will have to wait for the memoirs to figure out exactly why, but markets know that inflation has been going on for quite a while and the president has had its and start on this and continues to. they are trying to do an op-ed
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today and a meeting, you know, pretty much to assuage markets as much as they possibly can. but you know, there is very thin gruel here, even by the president's own discussion, the "wall street journal" opinion piece," their idea of knocking down inflation is not only to tell every bun it is the feds problem and not the presidents problem, but if only they changed the tax code and put in place clean energy tax credits and understood that, you know, infrastructure that will take five years to build out will eventually happen and, you know, they will be dealing with broken supply chains, which they have been saying they have been dealing with for a year. politically in any other way this isn't going to cut it in the world of the voter. this is already baked in as biden's problem. alix: to that point, are we setting up for the scapegoat
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situation in november? it's not my fault, here's the stuff i did, let's blame jay powell? >> absolutely, frankly this is nothing but a blame game and they have been saying that for month. that this is really up to the fed. question two markets for me is what does, if you, if you buy the idea that there is a failed policy, a big policy mistake here from the fed, the first question is why do you reappoint the same people. the same -- second question is what you expect from the reappointments? i think that what you can expect from political washington is a fairly soft policy. what these folks learned years ago is that it redounds badly on the party in power for a long time, so frankly a softer policy is better politically for these oaks because there is less of a wrench. guy: ok but at some point in
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that scenario you get to the voelker moment and i wonder if this president is thinking about that. you have got the midterms coming up, there needs to be a mechanism to message the american people that inflation is going to come down, we've got this and if we haven't got this is the feds fault. but after the midterms how was the president thinking about inflation? after the midterms, assuming that he is ready to make a decision on whether he runs or doesn't run into years, do you think he lets the fed off the leash? i'm wondering what the political calculus here is. not for the midterms but for the next general election. is the fact going to be allowed to deliver a tough message on inflation in order to get the economy ready for two years time rather than a few months time. >> let me first say first that i
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think markets will hear nothing new out of powell today for one practical reason. if he says anything new today at all it look like biden leaned on him to do it so there is a great impetus, reason not to do that. post midterms, there are three calculations for biking. one, is he going to run or not? second, politically they are overrepresented. moving center it's very similar to the way that bill clinton went centrist after 1994's shellacking. thirdly on the fed left off the leash, the president has nothing to say about whether the fed is off the leash or not. the fed doesn't exercise executive power. you know? janet yellen is a subordinate of
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biden, jay powell is not. so if the president starts leaning on powell or, frankly, on other independent agencies like federal trade commission or the fcc, he's causing a constitutional problem and that's up to the congress. alix: you had a note out yesterday that was interesting, thinking nothing would come of the powell situation but when it came to the sec or doj there were things that interference would pick up that would matter for markets when it came to antitrust or regulation. how might we see that play out? >> look at it this way, those of you who remember ferris mueller remembering camera -- cameron calling his father in for a little chat. if biden is asking powell for a little chat today, in an institutional washington sense it tells me that there may be other little chats.
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biden has already been leaning on the ftc. i would look in the markets regarding this powell meeting that they start doing those things as well to try to influence policy. constitutionally, that's over the line. but in a practical sense, you know, that is going to cause negative market reactions in a variety of different places and it is something that i think the white house has not sufficiently thought through. because, you know, then leaning on powell as if he is another staff is not a good signal to send it to the markets, frankly. guy: tactically, even
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strategically, are the midterms gone for the democrats? it could be tough for the democrats and if they are, are they looking beyond the midterms and thinking we need to be ready in two years with an economy that is up into years? we need to have inflation beaten ? is that the narrative that may be starts to develop here so that they are not looking near-term but further down the road and as a result of which, leaning on powell, maybe they aren't leaning on powell to be, to be, to go soft on inflation. they are leaning on him to go hard on inflation. beat it out now, get the economy ready for a rebound in two years? >> let me say that i think democrats know that they are behind the eight ball but they don't get a lost cause and you have no further to look in the 2020 elections, when the usual suspects in washington were saying democrats are going to win 15 to 20 more seats in the house but quite the opposite
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happened. republicans picked up seats in the house. democrats don't think that this is over but they know there is a problem. i will tell you that on the ed business, they are going to fight it out over the next few months but on the fed to business there is no percentage in democrats wanting a volker like hard pivot because it just exacerbates the problem that they said they are trying to fight. part of my calculus all along here has been that there is this now reinstalled fed that will be fairly dovish and that is what they want. they don't want, they don't want the big shift. alix: terry, really appreciate your perspective today. it will be very interesting to see what comes out. plus you quoted ferris beeler, so you will always be a friend now. the latest consumer confidence numbers are out.
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they beat expectations and we will talk to the cfo of a buy now pay later company, after the break. this is bloomberg. ♪
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>> this is "bloomberg markets," i'm ritika gupta. coming up, a special guest at noon. this is bloomberg. keeping you up to date with news from around the word -- the world, here's first news. i'm ritika gupta. a partial ban on russian oil that's part of a package of sanctions aimed at punishing russia for invading ukraine, banning the purchase of russian oil and petroleum products temporarily allowing eu nations to purchase on the pipeline. inflation in the euro zone has
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accelerated to an all-time high this month with consumer prices rising more than expected, eight point 1% from a year ago. food and energy was the big reason. the debate at the european central bank is about how fast to raise interest rates. the ceo of soros fund management says the u.s. is on track for a recession. >> there's a lot of discussion about a looming recession and the bottom line is that a recession is inevitable, it's a matter of when. when you look at what markets are pricing, they are pricing it fairly soon in the 2023 context pending on your asset classes, i actually think markets might be wrong and the reason is there's a consumer right here that is in extraordinarily good shape. alix: -- ritika: you can watch
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all of david rubenstein's exclusive interview tonight at 9 p.m. new york time. global news 24 hours a day on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. alix: thank you so much, ritik.: numbers above estimates but still hitting their lowest level since february and the health of the consumer and the impact of an nation are the key issues for companies, politicians, and investors. we want to look at it from a purchasing power point of view. by now, pay later, the ceo of that company joins us now, michael linford and sonali basak is with us as well. thank you both. michael i want to start with what i'm sure you read a piece by scott galloway in "new york magazine," talking about the buy now pay later model. he said that any hope of profitability hopes on
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overextended consumers continuing to match the buy button and what is more likely is the precarious finances of the twentysomething generation are going off the precipice and there is a big risk of collateral damage. what would be your response question mark -- response? michael: thanks for having me and i think it is important that investors understand just how different we are. different from the traditional financial institutions that offer revolving credit products and infant from the competitors being poked at in that analysis. sonali: a lot of those competitors have never seen a down cycle and we are about to experience something of the sort now. do you think that they will experience something of a washout? michael: i think you are already seeing pressure on a lot of these players. people like a firm, -- affirm
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have made a business model where we don't charge late fees and we don't allow deferred interest. these kinds of consumer oriented positions have made it so that we don't have a choice but to underwrite very careful. we have no way in our business model to support consumers that don't pay us back. in our most recent quarter we put economics 70 basis points ahead of the long-term values and we stand out amongst all the other players. you have some who are doing headcount reduction to save costs to avoid credit losses and we are in the opposite position. we are front footed and adding to the team, our economics are in a exceptionally strong position right now because of our world-class underwriting and that isn't an accident. it's based on how the business model was built in the first day and how we treat consumers. guy: what kind of position is the u.s. consumer in? we just heard from don
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fitzpatrick, she was talking about the u.s. consumer bringing extraordinary -- being in extraordinarily good shape. do you think she is right question mark michael: i do, i never go against don, she's brilliant. what i tell you is a -- i see a very strong u.s. consumer with unemployment remaining very low. at least in our business consumers remain in a good position and that is only possible if you think about underwriting and the way that we do, which we do with every transaction, we are looking at their ability to repay on a transaction by transaction basis and we really are the first to see it if you see a deviation. sonali: then what are you looking for? relative to what you saw during the pandemic, michael, are you seeing that there is more pressure on the consumer now they can lead to more trouble ahead? michael: the total monetary
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supplies beginning to tighten. you are seeing the fed respond to the rising rate environment and it results in the matters that you see, but it hasn't impacted employment yet. if you think about the health of the consumer for our business, the most important thing is are they fully employed and right now they are. sonali: you are in a position to grow even in a tough environment. what kind of hiring plan could you have as you see that your rivals are cutting their workforce? michael: we really like our position in the market. you saw earlier this month that we saw that hired engineers and it was one of the better markets for labor right now where we had a strong need to build great products where we were not constrained in terms of opportunity. we are the fastest growing and in the early innings of what our category will become. we need a big team of engineers
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to tackle the opportunity and we are excited to be able to aggressively grow our business, again responsibly. we are looking at the macro indicators like everyone else and we want to be careful but we feel that our ability to scale the enterprise will be a function of the human capital that we have, not a function of doing bad deals and other uneconomic things and contortions like our competitors do. alix: talking about deals for a second i'm interested in your scope of consolidation with the exposure that others don't. what kind of exposure to uc? what kind of consolidation might you see? michael: we have already seen some consolidation in the industry with players having to pair up with large enterprises. we love the brett of offering that we have and are confident in our ability to generate real shareholder value scale. we are confident in our ability to generate a lot of cash when
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we scale. guy: if it is a rollup opportunity or not, if you are going to grow, how do you maintain the quality of customer you currently have to make sure that the credit cycle ultimately doesn't come back to bite you? michael: such a great question, guy. the reason we are hesitant to answer the first question yes is because we are so different. the way that we go to markets and think about underwriting, from our standpoint it makes a combination with the players that are out there very difficult. it's not really one plus one equals three. oftentimes there would be synergy around deactivating late fees and energizing fees, keeping us from being the principal in the material rollout of the industry and in terms of how we think about future deals that we might do it might be good to look back at the deals we have done. we purchased a company in canada last year that grew rapidly and
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continues to grow rapidly and the key thing there was the strong alignment in terms of how we treat the consumer and a shared mission that will always govern what we can do. sonali: you also announced a partnership with strike this morning. what is the role that fintech is going to play going forward relative to traditional banks? months ago jamie dimon named affirm is a large competitor in this space. michael: yeah i think it is the case that traditional financial institutions will continue to receive a lot of pressure and we are really excited about this opportunity to partner with strike, offering up the adaptive checkout technology now, meaning that we will brand what we do so well to a wider set where we are moving leaps and bounds over equity with 60% of commerce live
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on our platform and we have a chance to continue to grow that with other partners. guy: michael, great to catch up, appreciate you dropping by. of course, our thanks to sonali basak. this is bloomberg. ♪ at fidelity, your dedicated advisor will work with you on a comprehensive wealth plan across your full financial picture. a plan with tax-smart investing strategies designed to help you keep more of what you earn. this is the planning effect.
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guy: coming up, we are wrapping up the month. the european close is almost upon us. the stoxx 600 are down by half of 1% and i think that the action is elsewhere. italian bp, superhot inflation coming from europe at the headline level. french numbers coming through hot. we are up by 12 basis points today as you can see, the curve is steepening up just a little bit with crude in focus as well. then you have got the stoxx 600
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story from the weekend. negative by 1.3 8%. fading a little bit but nevertheless, basically finishing where we started in the month of may. commodities are what we are going to talk about next. that's the story we are figuring out in europe when we think about what turning off the russian tap actually means. this is bloomberg. ♪
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guy: tuesday the 31st of may, energy is down, stocks are up, -- stocks are down, energy is up , the countdown to the close starts right now. >> the countdown is on in europe . this is "the european close," with guy johnson and alix steel.

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