Ed Baxter, Wells Fargo, San Francisco discussed on Bloomberg Daybreak Asia


Paul That's right. The last hard copies have rolled off the presses are in residents hands, Bloomberg, Stephen Engel says larger, much larger than normal run. Last circulation of up to a million copies have been distributed in the early hours of this morning. Normally, the daily circulation is about 86,000. So they printed About a million. Yes, Stephen says there have been threats of more arrests, and more employees had resigned for fear of arrest. Stephen says only a skeleton crew there at the end, Another columnist for Apple Daily had been arrested on the national security law. Police only saying. 55 year old man who writes under the name leaping for allegedly colluding with foreign forces to endanger national security Now, Lee writes. Basically, social commentary has been thought of as not one of the most outspoken columnists. Sydney, Australia Looking at another potential lockdown Now Paul is in Sydney. Paul, this is the is the Delta very. And is that right? Yeah, That's right. And that's why people are getting so worried. 31 cases doesn't sound like a lot, but we were at zero for a very long time up until just a few days ago, so there was one particularly chilling story. Of one person who was positive, giving the virus to someone else simply by walking past them in a mall. That moment was captured on CCTV. So it does underscore just how transmissible this is. And the news this morning. We've got the agriculture minister for the state now testing positive the health minister in isolation. So we are anticipating another spike in cases today and the premier Hattiesburg directly and saying Well, lockdown could be on the cards. Yeah, and they're already some measures. Yeah, That's right. Seven local government areas, including the city of Sydney, where the Bloomberg office is and where I live as well not allowed to leave the Metropolitan area states have all slammed their borders shut. The travel bubble between New Zealand and New South Wales has been suspended and it emerged that a traveller from Sydney went to New Zealand and tested positive upon their returns. So New Zealand's covid free status potentially at risk from all of this as well. All right, Paul. Thank you. U. S President Joe Biden Attorney General Merrick Garland are announcing new programs to fight gun violence, Garland says, starting with gun dealers who did not conduct business in a lawful way by failing to conduct required background checks. Falsifying records, failing to respond to trace requests, refusing to permit ATF to conduct inspections or transferring firearms to persons who are prohibited from owning them. And Garland also says a crack down on trafficking with ATF and local government partnerships, President Biden says localities will be able to use money from the American Rescue Plan. Cities experience an increase in gun violence. Able to use the American rescue plan dollars to hire police officers needed for community policing and to pay their overtime. Now, Biden says, mental health issues have to be taken care of. He also says he has not given up on an assault weapon ban. California Secretary of State says the recall election exercise of Governor Gavin Newsom can proceed. This had been expected and more of Aryan Delta Varian who's here. Europe getting a fresh warning about safety and getting people vaccinated as a Delta variant spreads UK reports most cases since the start of February and in the U. S. The state of Missouri has become the canary in the coal mine or if you prefer The crash test dummy for not getting vaccinated, the vaccination rate under 49% and cases jumping as well as hospitalizations and ICU admissions. The the Delta Variant is now dominant scene in 1/5 of US cases in San Francisco. I'm Ed Baxter. This is Bloomberg. Brian. All right. Thanks very much. Ed. Eight minutes past the hour. Let's get to our guest. Thomas Hayes, chairman of Great Hill Capital, Thomas. A lot has happened in the past week as it relates to markets Yet we have the Vicks down today to the Mid teens. Is this a time for you to get aggressive or to sort of stick with your knitting? Well, it depends on the sector. Brian what we saw yesterday. Despite all the hawkishness coming from Bullard, Kaplan, Bostick and Rosen Grand Powell is driving the bus and he's got the pedal to the metal. He's basically said Inflation is transitory. Due to basic facts. It's due to short term supply bottlenecks and the downturn disproportionately hurt low wage workers. So what does that mean of the dual mandate, stable prices and full employment? He's going for full employment, and he has perfect cover to do that. Why? Because last year before the pandemic, the unemployment rate was 3.5%. Now it's 5.8% and they're still 9.3 million people Unemployed. But I think Brian to your point with with the S and P up over 90% off of its pandemic close. It's getting harder and harder to find value. So one of the areas that we've been spending a lot of time on in the last few weeks and building up a core position. Believe it or not in Chinese stocks. Mm. So let's let's return to Chinese stocks at the moment. I just want to get your view on the inflation as transitory is enduring because we've got strong and strengthening oil prices, other commodities rising as well. Eventually this is going to feed through the real world prices and potentially sustained inflation. Yeah, I think Well, two things you're seeing a number of commodities did soften in the last month or so, with the grains with copper. To a lesser extent, oil has been the outlier oils and rising. And I think kind of the black Swan that we should be worry of in coming weeks in coming months is the potentiality of an Iran deal that could knock 5 to $10 off off the price of oil. And you're seeing so much optimism in the oil markets right now, you know, two of our biggest picks last year when no one wanted them. We were going in for banks, which was Wells Fargo. The dirty A shirt in the bunch. And we were going for ExxonMobil because we wanted to stay up high on the quality ladder. And now that these names and these groups are up, you know 75 101 150% in some cases in the cyclicals. Everyone has been forced in. Everyone's excited with oil. Now at $73 a barrel everyone's looking for 100, and I think that's kind of the black Swan that leads us to focus. Coupled with Powell's dovishness to focus on those yields sensitive sectors that have been hit this year and have underperformed this year and we've been trimming back on some of our cyclicals as we've made that move in recent weeks. Quick taster here on your comment about China stocks. You like Alibaba? It's down a lot. Yes. Yeah. I mean, you've seen.

Coming up next