Speaker 1: Welcome to the Bloomberg Surveillance Podcast Hometown Keene. Along with
Speaker 1: Jonathan Ferrell and Lisa are Brownwitz Jayleie, we bring you
Speaker 1: insight from the best an economics, finance, investment and international relations.
Speaker 1: Fine Bloomberg Surveillance on Apple podcast, SoundCloud, Bloomberg dot Com,
Speaker 1: and of course on the Bloomberg termament. Let's talk about
Speaker 1: this bond market as well. If you're just tuning in,
Speaker 1: you have got a bond market with your tire on
Speaker 1: tens by four basis points to about one forty eight,
Speaker 1: just short of one fifty. Joining us now to discuss this,
Speaker 1: Marilyn Watson had a global fundamental fixed income strategy at
Speaker 1: black Rock. Marilyn, let's start with Chairman Pale and work
Speaker 1: our way toward into this bond market, treasuries into credit.
Speaker 1: Did you sense a big shift yesterday from the chairman?
Speaker 1: We did censor shift, so I think sickly obviously the
Speaker 1: end of the last week. Um, you know, we saw
Speaker 1: this very much sure, a risk of tone with the
Speaker 1: new variant coming to We're leading to you know, a
Speaker 1: huge amount of uncertainty back in the markets. Um. And
Speaker 1: I think that led to you know, investors being obviously
Speaker 1: a little bit more cautious going into chair Powell and
Speaker 1: his testimony. And I do think it did surprise the
Speaker 1: markets a little bit. And we have been saying for
Speaker 1: some time that we think, you know, the Fed really
Speaker 1: isn't a position now where they can accelerate the taper
Speaker 1: where next year they can start to even um, you know,
Speaker 1: maybe raise rates maybe two or even three times, depending
Speaker 1: on how this new variant shapes out. But I think
Speaker 1: the market was caught a little bit off guard, just
Speaker 1: given the volatility that we've seen over the past few
Speaker 1: days with the negative news you know, around COVID. But
Speaker 1: I think in terms of the overall trajecture of the market,
Speaker 1: that's where it had been heading. I think it was
Speaker 1: just surprising given the context of the past few days.
Speaker 1: The q has been very important for signaling, signaling to
Speaker 1: the broader economy and to financial markets. Were Mary and
Speaker 1: I just wonder what an accelerated QUI taper would actually
Speaker 1: mean for this market. You Rick read above, Miller have
Speaker 1: made the point repeatedly over the last several months that
Speaker 1: a lot of this would be canceled out at the
Speaker 1: taper at the Treasury. But if we accelerate things. Does
Speaker 1: it have a bigger impact, Well, I think on the
Speaker 1: margin it has a small impact. But the fact is
Speaker 1: that when they are still continuing to purchase assets, even
Speaker 1: as they wind down the amount that they hold, then
Speaker 1: you know, they're still actually supporting and they're still providing
Speaker 1: a very very loose accommodative montry policy. They're still continuing
Speaker 1: to buy assets. So even if they sort of accelerate
Speaker 1: this a little bit, we think that the level of
Speaker 1: accommodation at the moment is so high, and particularly I
Speaker 1: think yesterday we did start to hear a lot more
Speaker 1: caution from Chair Powell around just the very high levels
Speaker 1: of inflation that you know, are potentially becoming more persistent.
Speaker 1: And I think that's a factor that the Fed are
Speaker 1: now starting to really include in the forward guidance, and
Speaker 1: I think maybe they just starting to shift the tone
Speaker 1: a little bit as we do go into you know,
Speaker 1: the the FOMC meeting in a couple of weeks time,
Speaker 1: I think it will be key for market participants to
Speaker 1: really see you know, the timing around the que tapering,
Speaker 1: but also the time being around any potential rating increase
Speaker 1: as well. So I think given the high levels of
Speaker 1: inflation that we've talked about a lot. Given the fact
Speaker 1: that the tone has shifted around that it could be
Speaker 1: a bit more persistent than so far we've been hearing
Speaker 1: from the Fed. Um. I do think it's important. One
Speaker 1: reason why perhaps Fredshire Powell feels important is because markets
Speaker 1: are letting him make these moves, to make these signals
Speaker 1: without getting disrupted too much. And I take a look
Speaker 1: at credit nothing like the tape re tantrum going to
Speaker 1: back to but still nonetheless you are seeing money getting
Speaker 1: withdrawn from the high yeald debt market and slowly see
Speaker 1: yield creep higher the worst performance for that debt going
Speaker 1: back to September. Is this a buying opportunity or a
Speaker 1: warning sign for what's to come? Um? I mean I
Speaker 1: think potentially, if you exclude the current uncertainty around the
Speaker 1: new COVID variant, it could be a buying opportunity. When
Speaker 1: you think that, of course, as you expect to see
Speaker 1: you know, Muntro policy normalize a little bit. Um And
Speaker 1: we have seen obviously, um, you know, the yield and
Speaker 1: treasuries and Greece, we've started to see spreads widen. We
Speaker 1: are seeing now better opportunities and better evaluations in higher
Speaker 1: quality credit, so we have seen some investors sort of
Speaker 1: go up the credit quality spectrum. We have also when
Speaker 1: you're talking about how yield, we're continuing to see investors
Speaker 1: as well um still continuing to prefer the loan market
Speaker 1: in many cases given the floating right structure. So I
Speaker 1: think again, as the market is put you know, really
Speaker 1: starting to position itself for a little bit more normalization,
Speaker 1: although we're far from normal um in this environment, and
Speaker 1: as we do see these you know, ongoing levels of
Speaker 1: inflation that are persisting through until next year, then I
Speaker 1: do think we do we are seeing more dispersion also
Speaker 1: in the sectors that are seeing you know, better prices
Speaker 1: but evaluations. So I think it's a buying opportunity, but
Speaker 1: I think also investors are being you know, particularly cautious
Speaker 1: as we're going to year end. Liquidity isn't particularly great
Speaker 1: at the moment, and as we do have this you know,
Speaker 1: higher uncertainty as we're discussing around the new COVID variant,
Speaker 1: around petition, potentially measures to you know, limit restriction on movement, etcetera.
Speaker 1: So there's a lot of unknowns, but there could be
Speaker 1: potentially buying opportunities. What an end of the year, Mounting,
Speaker 1: fantastic to catch up with you send out best to
Speaker 1: the team as always Mountain, what's in there? Black Rock?
Speaker 1: Right now? On fixed income, Bob Michael joins us here
Speaker 1: for a good conversation to says how to global fixed
Speaker 1: income currency commodities of JP. JP Morgan Asset Management barely
Speaker 1: describes the ability here do you buy the dip in bonds?
Speaker 1: I'm totally confused about what to do with full faith
Speaker 1: and credit or just credit right now? Do you clip
Speaker 1: the coupon? Do you buy it? Or do you just
Speaker 1: go to cash? Which is it? You sell government bonds
Speaker 1: and you buy credit. There's been a tremendous repricing, You've
Speaker 1: had a flattening of the Yelk curve. There's a lot
Speaker 1: of concern that the Fed is going to move too
Speaker 1: quickly for the market and will lead to recession. And
Speaker 1: that's ultimately why thev has inverted. That's nonsense. They're miles
Speaker 1: away from anything that looks normal, and I think this
Speaker 1: is an opportunity to get rid of any remaining government
Speaker 1: bonds you have and then go back into the credit markets,
Speaker 1: go back into investment grade and high yield. You can
Speaker 1: do it in US and you can do it in Europe,
Speaker 1: and those are the things that you're buying on sale.
Speaker 1: Well that word normal, What does that word mean anymore? Well,
Speaker 1: for me who's been around for four decades, it means
Speaker 1: getting the central banks out of the market and leaving
Speaker 1: it to people like me to price. And there's a
Speaker 1: very different operating model than what we're used to from
Speaker 1: the central banks. Um, when I started the business, the
Speaker 1: central banks extended credit to the banking system and they
Speaker 1: controlled the cost of funding, and then they relied on
Speaker 1: the banks to extend credit into the economy. Now they're
Speaker 1: controlling the cost of funding across the entire economy. It's
Speaker 1: gone too far. It's got to stop, and participants in
Speaker 1: the market like myself have to get involved again. Well
Speaker 1: that's a design, Is it a full cost? What makes
Speaker 1: it a fuecast? What makes it a forecast is j
Speaker 1: PAL yesterday and j PAL saying it's time for them
Speaker 1: to exit the market, which I think they're going to do.
Speaker 1: They should announce uh that they're going to double the
Speaker 1: pace of of tape ring, so they should be out
Speaker 1: of the market by March, and then we should see
Speaker 1: rate hikes pretty soon after that, So they're going to
Speaker 1: start that journey to normal, and we're going to help
Speaker 1: them on that path. All right, You're gonna help them
Speaker 1: on that path. So so completely egourgeous of you. I
Speaker 1: do wonder that when you say it's a buying opportunity
Speaker 1: for credit, particularly riskier credit, why this is a good
Speaker 1: entry point given the fact that we are still so
Speaker 1: vastly below where we were before the pandemic when it
Speaker 1: comes to yields, why is this an opportunity at four
Speaker 1: point eight percent a coupon on a junk pond. For
Speaker 1: a number of things. For one, corporate profitability still remains
Speaker 1: very high. Companies have a lot of financial flexibility, and
Speaker 1: the companies were talking to don't see any significant drop
Speaker 1: off in aggregate final demands, so their top line is
Speaker 1: going to grow. They do see the input cost pressures
Speaker 1: and they're starting to pass some of those along, and
Speaker 1: by the way they've been raising dividends and buying back shares.
Speaker 1: They can dial that down a bit if they need to.
Speaker 1: But right now we're looking at a consumer that's flesh
Speaker 1: with cash, that's out there spending. Yeah, there may be
Speaker 1: some headwinds from the O Macron variant will see over
Speaker 1: the next couple of weeks and couple of months, But
Speaker 1: for now, corporate profitability looks pretty good. I want to
Speaker 1: be a part of that. Well, but do you really
Speaker 1: think central bankers will ever get out of this market
Speaker 1: and let people like you truly price it or is
Speaker 1: there sort of an implicit put that if things get
Speaker 1: volatile enough, they'll step right back in. Well, that's the debate.
Speaker 1: I start off by saying, I'm I'm used to one model,
Speaker 1: but when I look around our trading floor, um a
Speaker 1: very large percentage of the people only know the current model,
Speaker 1: which has existed since two thousand and nine, where central
Speaker 1: banks do intervene in all sectors of the bond market.
Speaker 1: So now I think it's a tool that they've learned
Speaker 1: to deploy. It's not going to go away anytime soon,
Speaker 1: and they're going to have to gauge that with all
Speaker 1: the other tools that they have. And yes, financial conditions
Speaker 1: indicators are one of the reasons that you buy dips
Speaker 1: in risk assets. As long as they look at those things,
Speaker 1: they're back stopping the markets. Michael with his JP Morgan
Speaker 1: here on radio and television, Bob, I'm not going to
Speaker 1: get you in trouble on China. Somebody else at JP
Speaker 1: Morgan is some challenges this week on China, But I
Speaker 1: am gonna ask you about the Pacific rim and about
Speaker 1: the great miss our David Wilson notices inequities internationals failed.
Speaker 1: What do you do with the international paper right now?
Speaker 1: I don't mean Turkey, but what do you do with
Speaker 1: the JP Morgan opportunity in international fixed income? You go
Speaker 1: for it. And we've had a lot of conversations about
Speaker 1: emerging markets, specifically emerging market equities, and how earnings for
Speaker 1: companies across Asia in particular have come in higher than
Speaker 1: anyone anticipated a year ago. The stocks have gone nowhere,
Speaker 1: They've even drifted down compared to the double digit recurrens
Speaker 1: returns in the developed markets. Next year is probably the
Speaker 1: year that stock prices catch up to earnings, but earnings
Speaker 1: are still going to look pretty good. So yes, we're
Speaker 1: also buying credit across a pack in China and across
Speaker 1: the emerging markets. Is Europe a piece of that as well,
Speaker 1: Bob Um, Yes, and and and in fact Um we
Speaker 1: were looking over the last couple of days of going
Speaker 1: back into the European Bank sector. Uh, particularly UH, the
Speaker 1: alternative the additional tier one securities and the lower tier
Speaker 1: two securities, so the bank hybrid securities. Um. So we
Speaker 1: do see some opportunities there as well. You know, I
Speaker 1: have some speculations. So let me finish with this question.
Speaker 1: What did you think of cham and Pal making that
Speaker 1: move a week after secure and renomination? Bob? Did that
Speaker 1: stand that to you? It's so well, the easiest path
Speaker 1: for him would have been to do nothing and coast
Speaker 1: through the hearings on his reappointment and to suddenly start
Speaker 1: the tapering process disrupt the markets. Um to me is
Speaker 1: is taking some risk. What I want to know is
Speaker 1: what changed from Monday to Tuesday and what's going to
Speaker 1: change today from yesterday? Yeah, I couldn't agree more Tom.
Speaker 1: It's been a month since they announced tape rink and
Speaker 1: now we're having a conversation. What's changed in a month
Speaker 1: for him to say, you know what, maybe we should
Speaker 1: accelerate things. What do you see here is a grizzled
Speaker 1: pro like Bob Michael getting right down to the nitty
Speaker 1: gritty what changed in twenty four hours? And that's the
Speaker 1: whipsofe for people who are not in the game. On
Speaker 1: this John, we're all talking about the market action. We're
Speaker 1: forgetting about the losses earned and made over the last
Speaker 1: forty eight hours. Is I really wonder what the carnage
Speaker 1: is up there? So my final question to Bob Michael
Speaker 1: Thomas usually football related, so we'll keep it consistent in
Speaker 1: remain in Georgia, not Alabama, Georgia this weekend, Bob. Confidence
Speaker 1: level so I want to understand from your perspective tends
Speaker 1: back to two or another championship for Liverpool. Another championship
Speaker 1: for Liverpool to they are a goal scoring machine. Well,
Speaker 1: Michael JP Mark and asset management in the flesh, Bob,
Speaker 1: It's good to see you joining us now, not just
Speaker 1: on the global economy, but on the pandemic. Lauren Spoon,
Speaker 1: the chief economist at the O E C. D AND's
Speaker 1: typically I've come straight to you on a forecast, a
Speaker 1: call for US growth for Europe et center. I want
Speaker 1: to come to you on a number you guys have
Speaker 1: put out this morning. Vaccinations are key for the recovery.
Speaker 1: They would only cost fifty billion dollars. Fifty billion the
Speaker 1: context of how much we've spent over the last eighteen
Speaker 1: months is nothing. How do you get there? How do
Speaker 1: you get to that number? So so the way we've
Speaker 1: getting to that number, sorry about this. Basically, you know,
Speaker 1: the fifty billion is what's been estimating by Covax and
Speaker 1: all the related institution um. The ten trillion is actually
Speaker 1: what the twenty has been providing into fiscal support to
Speaker 1: the economy, two people, to firms, to jobs. So when
Speaker 1: when you balance things out, ten trillion for supporting our
Speaker 1: economy going through the pandemic, you know, compared with the
Speaker 1: fifty tiny fifty billion to bring the vaccine to the
Speaker 1: entire world population, that looks completely disproportionate. Well, right now
Speaker 1: we're dealing with the omicron variant, the idea that Africa
Speaker 1: has an incredibly low vaccination rate. Have you heard from
Speaker 1: member nations that they're accelerating, doubling down some of their
Speaker 1: aid to try to distribute vaccines in Africa and in
Speaker 1: other places that are really underserved. So yeah, with our
Speaker 1: Health Department here A, the O, E, C D, and
Speaker 1: the Trade Department, notice that it's very difficult to bring
Speaker 1: it to Africa, as you say, it's where the rate
Speaker 1: of vaccination is very low. There's a huge logistic questions,
Speaker 1: right bringing not only the vaccine, but being able to
Speaker 1: keep it at the right temperature and then distribute it
Speaker 1: around UM. So that that's where I think a lot
Speaker 1: of the effort now has has to focus on. But
Speaker 1: not only if we go back to the O E
Speaker 1: c D UM and that's what we should this morning.
Speaker 1: Even within O E C D countries and advanced economies,
Speaker 1: some countries have very low vaccination rate and that's an
Speaker 1: issue because as we've seen for example in some of
Speaker 1: the Eastern European countries, UM, they just had led them
Speaker 1: to put in place restrictions to mobility and economic activity. Again,
Speaker 1: so really, you know, expanding vaccination, making sure people get
Speaker 1: double or triple vaxed is key to a sustain recovery.
Speaker 1: In the meant time, Lawrence, there is a problem when
Speaker 1: we talk about the hiking cycle for the Federal Reserve,
Speaker 1: when we talk about the Bank of England going to
Speaker 1: a similar type of mode at the same time that
Speaker 1: you are seeing the potential for additional variants to slow
Speaker 1: the economy. What's the risk that we get a slow
Speaker 1: down in economic growth at the same time as surging
Speaker 1: inflation and central banks being forced to tighten into that UM. So, look,
Speaker 1: there's lots of uncertainty um, and there is no question
Speaker 1: that it's new variant is adding to this uncertainty. Now,
Speaker 1: one of the things we're very clear about is there's
Speaker 1: no one size fit all policy. The inflation in the
Speaker 1: US is very different from the inflation you may see
Speaker 1: in Asia, for example, in China or India. It's again
Speaker 1: very different from the one you see in the continental
Speaker 1: you are or in the UK UM And for that reasons,
Speaker 1: we have a very clear message. If inflation tensions mostly
Speaker 1: from the supply side, then sents for banks who looks
Speaker 1: through when you have a lot of momentum in the recovery,
Speaker 1: excess demand, un employment back where it was, then Yeah,
Speaker 1: normalizing the monitory policy is not something that's extraordinary and
Speaker 1: should be done. Lawrence tim Kin in Good morning to
Speaker 1: you on radio and television, Lawrence Mooonwether. So the O
Speaker 1: E c D as they reassess the global economy will
Speaker 1: do that again with key economic data today, including a
Speaker 1: d P. Lawrence I did a very careful study of
Speaker 1: John Byrne Murdock's magnificent work at the ft on cases
Speaker 1: and particularly deaths from COVID. The vector, the trend called
Speaker 1: the log vector of Germany, Austria and Switzerland is nothing
Speaker 1: short of grim. Can O E. C D extrampolate out
Speaker 1: the trends that we see in death from COVID or
Speaker 1: do you sit back and wait for more data? Look
Speaker 1: at Good morning to you and thanks for the invitation again,
Speaker 1: um Adeo CD. You know, we're economists. So what we
Speaker 1: do is we take into a the uncertainty that has
Speaker 1: increased with the period with the emergence of the new volant.
Speaker 1: We take into a condy uncertainty that has increased because
Speaker 1: the LATA is developing faster in countries where there's less vaccination,
Speaker 1: and we factored that in. But I think that's that's
Speaker 1: the base we can do again. We've warned about the
Speaker 1: uncertainty that was coming from the lack of vaccination. We've
Speaker 1: warned about the threat that this total imbalance between countries
Speaker 1: very vaccinated and those where they are just might be
Speaker 1: or where the vaccines has not gone yet was creating,
Speaker 1: and the risk that's creating this what's happening now is
Speaker 1: it's just a reminder that we need to find this
Speaker 1: fifty billion you know that that that will help us
Speaker 1: and all these imbalances and and there's stress that the
Speaker 1: various is creating on the global economy. Lawrence, always good
Speaker 1: to hear from you. Thanks for being with this morning,
Speaker 1: Lawrence Burning that of the A c D. We're staggering
Speaker 1: here on Bloomberg surveillance and particularly with our aviation coverage
Speaker 1: from story to story. Guy Johnson has led our coverage
Speaker 1: on airlines, on jets, on the Transatlantic, on the global
Speaker 1: and joins us now and Guy, I do understand that
Speaker 1: with our wonderful guests, the key question is the new
Speaker 1: Manchester United and how they'll do with Arsenal this weekend.
Speaker 1: But other than that, it's getting the planes in the air.
Speaker 1: It's a I think that's gonna be a critical question
Speaker 1: for shy Wi. Yeah, let we can. We can start
Speaker 1: on the football I Alsenal match to unite it. That's
Speaker 1: what Tom wants to know about. Are we live Yeah,
Speaker 1: Arsenal of course, Okay, we have an answer. Yes, Okay,
Speaker 1: let's let's talk about what this is going on now
Speaker 1: that we've we've cleared that one up. Um O Macron
Speaker 1: hard to say what impacts is theyre having on the business. Well,
Speaker 1: I'm just reminded that we met twenty three days ago
Speaker 1: outside of Terminal three at Heathrow for historic day of
Speaker 1: opening up the corridor between the UK and the US
Speaker 1: joint synchronized takeoff. And here we are twenty three days
Speaker 1: later and we have a new variant. UM. I think
Speaker 1: it's early days on this one. My intuition tells me
Speaker 1: that it is probably more transmissible, maybe not as severe,
Speaker 1: just based on the patterns. This just didn't emerge for
Speaker 1: five days ago. It probably emerged a few weeks ago,
Speaker 1: possibly in October. UM. We've changed adapted, of course South
Speaker 1: Africa's shut down, although there was a flight right now
Speaker 1: in the air from South Africa back to the UK
Speaker 1: where people needed to quarantine. So we'll we'll deal with it.
Speaker 1: You know, this industry has shown resiliency and so are we.
Speaker 1: The governments have reacted much more quickly in this time.
Speaker 1: He has that surprised you be? Is that the right
Speaker 1: soil wrong thing to do? It hasn't surprised me, and
Speaker 1: I think it's the wrong thing to do in the
Speaker 1: sense that travel is so omnipresent in our lives and
Speaker 1: if you can, you know, kind of put a combination
Speaker 1: of politics and pandemic, airlines is the easy target for
Speaker 1: changing of signals to the public, so I wasn't surprised.
Speaker 1: I think we should evaluate the situation quickly, and what
Speaker 1: I'm telling my team and telling the government in the
Speaker 1: UK is as quickly as you introduced those measures. If
Speaker 1: things turn out that they are not as significant, take
Speaker 1: them back immediately as well testing opening up orders, removal
Speaker 1: of of red less countries. Do laias told that the
Speaker 1: North Atlantic may be shut down again? I am not
Speaker 1: that concerned about that, based on the comments that President
Speaker 1: Biden made a few days ago, which in my mind
Speaker 1: were the most calm of the political leaders out there.
Speaker 1: Let's look at the formation. This should be data driven
Speaker 1: and then we make the calls. And travel is not
Speaker 1: the way to stop a pandemic. This variant is now
Speaker 1: everywhere in the world. Everybody understands that. So shutting borders
Speaker 1: hurts thousands and millions of people, of course over the
Speaker 1: festive period, but businesses and GDP is reliant on it
Speaker 1: and we need every single piece of help that we
Speaker 1: can get, and travel enables that. What has what does
Speaker 1: the North Atlantic look like since November eight um? What
Speaker 1: kind of load facts is if you've been experiencing what
Speaker 1: does pricing look like. What does pricing look like around
Speaker 1: the holidays? Has Business Travels given me a kind of
Speaker 1: a data dump as to kind of what it does
Speaker 1: look like since then? And I will try and be
Speaker 1: organized in my comments on the data dump. UM. So,
Speaker 1: first post the eight tremendous bookings across the Atlantic UM,
Speaker 1: and we've seen load factors building very nicely close in
Speaker 1: in December, and we will probably be still flying anywhere
Speaker 1: between six load factors. On the week post the eight,
Speaker 1: you couldn't get a seat on a Virgin Atlantic from
Speaker 1: London to the US. The variant has changed this a bit,
Speaker 1: but I think we're neutral in the December period, so
Speaker 1: new bookings are offsetting cancelations, and there have been cancelations,
Speaker 1: of course people want to do that. But for Easter
Speaker 1: and UM and the summer, we're still building momentum and
Speaker 1: still building load factors UM and if you look at
Speaker 1: the expected January load factor is trailing quite nicely anywhere
Speaker 1: in the s some flights up to so overall I
Speaker 1: would say very good response to the opening of the borders.
Speaker 1: The Armicron of course a dampening effect, but not enough
Speaker 1: as a long haul carrier focused across the Atlantic neutral
Speaker 1: at this point? What are the states of the finally,
Speaker 1: what are the states? What is the states of your
Speaker 1: finances at the moment? If I can spit that out, Um,
Speaker 1: there is a suggestion that maybe you're in talks again
Speaker 1: with the shareholders to raise some more money. Can you
Speaker 1: confirm will deny that. Are you comfortable in terms of
Speaker 1: where you are with with the balance sheet right now?
Speaker 1: There was talk of an I p O. You haven't come.
Speaker 1: You've never confirmed that to me? Is there're still talk
Speaker 1: of an I p O? Is that a discussion that
Speaker 1: is happening. So first of all, I'll start with the
Speaker 1: important thing. We were trailing ahead of our plans by
Speaker 1: a significant margin leading up to the month of November
Speaker 1: and December, so we have a cushion. Any airline executive
Speaker 1: is thinking about their capital structure and raising capital. We
Speaker 1: are never short of needing more capital. All options remain
Speaker 1: on the table and we are exploring them, um robustly.
Speaker 1: But I am very confident that Virgin Atlantic will have
Speaker 1: a very good balance sheet going into the recovery phase
Speaker 1: that really starts in December and on to the sumber
Speaker 1: of two. Also know by how many versus Matchester here
Speaker 1: and I didn't. I'm going for a win to one,
Speaker 1: surprise win, surprise win to one Arsenal overmatch the United Shy. Wise,
Speaker 1: the CEO of Virgin Atlantic has spoken song. Thank to you,
Speaker 1: Guy Johnson, Thanks so much. Of course, man, you was
Speaker 1: so much change going on right now. This is the
Speaker 1: Bloomberg Surveillance Podcast. Thanks for listening. Join us live weekdays
Speaker 1: from seven to ten am Eastern on Bloomberg Radio and
Speaker 1: on Bloomberg Television each day from six to nine am
Speaker 1: for insight from the best in economics, finance, investment, and
Speaker 1: international relations. And subscribe to the Surveillance podcast on Apple podcast, SoundCloud,
Speaker 1: Bloomberg dot com, and of course on the terminal. I'm
Speaker 1: Tom keene In. This is Bloomberg