>> welcome to bloomberg commodities edge. we focus on the hottest commodities with the smartest voices. look at the top market stories of the weekend come i want to start with the suez canal. the tanker is finally free. there is talk that i hundred 75 vessels a day could go through. the canal actually operates below capacity, 58 a on average from 2007 to early on average. even at the peak in 2000 date, the vessels that crossed were only 64. the launch of the merman futures contract in abu dhabi. it is backed by one million barrels of production daily. it is the first time an -- opec member is allowing oil to be

freely shipped anywhere in the world in hopes it could become the regional benchmark, which would be key in pricing sales to asia. a lot has to happen like generating volume, creating forward curve. we are just four days into trading. no doubt the biggest news of the day is biden's infrastructure plan. it means the u.s. is going to need more -- the country that makes those is china. just $1 trillion of spending would meet demand for -- steel. 110,000 tons of copper and 140,000 tons of aluminum a year. that is one reason why many see a super cycle in commodity such as copper. it is all a back -- all about opec-plus, the group agreed to increase production -- pressure for more supply.

earlier, i talked with jeff curry about that decision. >> when you look at the rest of opec about 20% of them cannot reach their quota because of underinvestment. the fact that saudi arabia could cut production by 11% and watch prices rise by 40% and we still not see a supply response in the current environment tells you this is very near term. supply is nearly inelastic. companies that have the capacity, gcc countries and russia, are sitting on all of this spare capacity that matters. alix: i am joined by will kennedy, bloomberg's managing editor. how did we get here? >> good question. it is somewhat of a surprise. going into this meeting, pundits expected they were more overproduction. there have been a number of distinctive -- that suggest

saudi arabia the most cautious member of opec-plus, got comfortable with gradually increasing production. the main thing is the recovery. in the u.s. you have a combination of spending on vaccination, people just doing more that shows demand recovering quickly. people on planes, gasoline back towards pre-pandemic levels. that gives confidence to opec. there is also a little political pressure from the house. the new energy secretary spoke with prince abdulaziz yesterday, and while they said they didn't directly discuss opec, she said we would like to see energy affordable. she may have felt a little -- from her customers. there are people within opec, russia, who wants to increase production and put oil back on the market. at the end of the day, the prince felt he could cautiously

increase production and not risk the price game he has made over the last few months. if prices stay stable, higher profits. alix: saudi arabia will also rollback some of their voluntary one million barrel a day cut. will: earlier in the year, as they tried to get prices higher, they had taken an additional one million barrels a day off the market in addition to their obligations under the opec-plus treaty. that gives them more policy maneuver beyond agreements with the group. it does seem to match what opec plus is going to put back in the market gradually. as we understand, that will be -- barrels a day, maybe the same in june, and then maybe july.

what do you see again i think is fairly confident as we get into the summer, peak demand in the northern hemisphere. the market will be able to absorb that extra oil while continuing to drawdown inventory , which is incredibly important. alix: will kennedy. time for commodity escape where we talked to one executive in the commodity world. today, his firm has 15 years of experience in low carbon investments and scaled companies with over $5 billion invested in renewables. it typically invests in one of these, electrification of transport, grid resilience, green and fossil fuels like methane detection, agriculture,

next-generation liquid fuels like diesel, and horizon resource use like smart meters. it has made investments in ev companies, free wire technologies, lithium royalty corporation. now it is going after hydrogen fuel cells. let me clean how these work the fuel cells take oxygen and compress hydrogen. that creates water and heat, then powers the motor of your car. they have quicker refueling times than a traditional ev. enter horizon fuel cell technologies. it uses this technology for commercial vehicles like buses and trucks. its influence goes from singapore to china. now there is a spinoff of horizon which will take that technology and make their own vehicles with partners then sell them. its own brand in a fledgling sector.

i asked him why he made this deal. >> you take a look at demand on the grid over the next 10 years, there needs to be other solutions beside battery electric vehicles. hydrogen, not only is it one of the lowest scoring hydrogen -- fuel sources to provide the fuel, but it also has far fewer demand and less taxes on the grid than traditional batteries. alix: i thought hydrogen fuel cells were really far in the future. there were a couple of companies, but it wasn't taking off. >> you are not wrong, that was public perception. there have been incredible advances over the last 24 months. fuel cells being commercialized for transportation. the applications for fuel cells for hydrogen expands not just in heavy transportation, but shipping as well.

i think your observation is appropriate. like we have seen in other technologies, the compression in cost and the improvement in deliverability has made significant strides in a short period of time that the conversation around total cost of ownership for hydrogen, today, versus three years ago, is different. at one point -- 1.i would make is absolutely the gap was wide four or five years ago, but the improvement has been incredible. alix: so there are two parts to at. there is the hydrogen part, where you get it, then the charging stations. do you have investments in one of those two areas? >> we have not made investments there as of yet. however we have financed a number of them.

the vision for the future is to partner with infrastructure buildout partners who are specifically focused on sourcing hydrogen. one of the attributes of the business model which appealed to us was the fact that they are not relying on the buildout of a national network of hydrogen infrastructure. they are specifically selling their vehicles to folks who have already sourced their own hydrogen and are operating in a -- model. for example, a municipal fleet that may leave a depot in the morning, has a noon route, comes back in the afternoon. you know where you're hydrogen sources. you can source it locally and you know where it comes back to. alix: would you look at hydrogen refueling companies, or are you leaving that to the side? >> 100%. not only is -- contemplating an

advancing conversation around hydrogen infrastructure, we as a firm feel it is an area to spend time on. i would consider it highly attractive for growth for the entire investment community. alex karp that does it for me. catch me every thursday at 1:00 new york time. have a wonderful holiday. ♪

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matt: we have a stellar lineup this hour. jobless claims come in higher than expected despite signs of labor market improvement. we talked to kpn be -- kpmg's constance hunter. plus, the second largest radio station owner in the u.s. is playing a new tune. entercom communications is a rebranding in a pivot to podcasts and sports betting. we talk to their ceo david field. plus, how covid recovery could lay the foundation for green housing. we get insights from molly bordonaro from green cities, a company focusing on sustainable infrastructure. let's check on the markets. a big day for equity owners as we hit all new highs on the s&p, over 4000 for the first time.

you can see the u.s. 10 year is coming down as investors by treasuries. 1.68%. gold is gaining, back to 1725. oil is the story of the hour. new york crude gaining even as opec puts more supply into the market. that is something that caught my eye. even before the opec meeting. take a look at this. in the bloomberg terminal, it is 9077. it shows you the amount of spare capacity that opec has ready to go into markets. they are still holding back a massive amount. the 250 million barrels they are going to be releasing, opec releases 350 million next month, saudi releases 250, is nothing

compared to the 11.5 million barrels opec has ready if need be, if prices and demand continue to rise. let's turn to the odyssey story, the second largest radio station owner in the u.s.. it was called entry column, it changed its name to odyssey to expand business into podcasts and sports betting, a huge piece of it. the company announcing a partnership with that mgm david, talk to me about the foray into sports betting. it is a massive business about to boom. an interesting twist for a radio company. >> if i made for one second, we

had spent the last -- since acquiring the -- we have moved into sports betting. we have become active in podcasting and built a scaled leadership position across all areas of the spectrum. it did not fit us anymore in terms of who we had evolved into an where we were headed. we are very excited about building our future around this new brand, which we think is a smarter business platform than amtrak, -- and trucks. >> sports betting is appealing because we have the largest sports radio platform in the united states. three times larger than our next largest rival with ufa in new

york and so forth. with the exploding nature of sports betting, which is turning into a bigger market, we had the opportunity to lineup important partnerships with fan dual, the largest single radio advertising deal in industry history, then announced this tweak a partnership with better rivers. we are bullish. we made an acquisition in the fall of the q l gaming group, which is a terrific algorithmic driven data provider for sports bettors to enable bettors to bet better.

we have seen synergies producing 30 million plus fans from sports stations to our platform where there are subscription opportunities. matt: what has the pandemic been like? i look over the last five years, the stock has come down, but revenue has soared. what is going to change now? david: for our business, it has been interesting. there has been a bifurcation. our digital business is growing rapidly, that includes podcasting come our radio network business was also up. what remains rough is the local

business. radio does an extraordinary job in the united states. we do an extraordinary job getting people to get up and do things. the get up and do things business is challenged by a pandemic. whether it is going to a gym, movie theater, you name it, all these businesses are sidelined. we found in the summer, 42 percent of local advertisers were sidelined. that has put a damper on local sales. as we look forward, we see that business recovering nicely. we are having great conversations with customers who are looking forward to getting back on the air. ringing back their customers. at the same time, we see this rapidly emerging area in our transformation of our podcast business and digital audio business and network business and -- business picking up and

growing. we are excited about where things are headed here as vaccines move forward and as we look forward to a more normalized world. matt: thank you for joining us. appreciate your time. david field, ceo of audacy. bloomberg radio competes with -- partners with audacy in local markets and we provide business programming to audacy's 45 markets nationwide on more than 100 radio stations. just for full transparency. so, the meltdown of archegos management. the latest on the fallout with erik schatzker. out with erik schatzker.

matt: this is "bloomberg

markets." details emerging over the fallout from archegos fire sales. joining us is erik schatzker, who has been helping break this story since friday. one of the focus is the market has been the sec, had a call apparently with banks monday. what else do we know about the possibility of new regulation erik:? -- new regulation? erik: i think that is an important place to focus because the initial fallout from archegos was on the stocks and filleting's -- phil lang's portfolio. it spread to the banks that had loaned him money, including mitsubishi. now people are beginning to ask, ok, what is next? what is next is, in all

likelihood a regulatory crackdown on a number of practices that have become increasingly apparent as we know more and more about the supernova that was archegos. among them, a family office -- this extends to hedge funds as well -- ability to take large positions in sox without revealing their identity. how did this happen? archegos used swap agreements. swap agreements allow you to gain exposure to a stock while not reporting economic interests. the economic interest remains with your counterparty. if you are trading with goldman sachs, you would put up collateral, goldman would put up the leverage, but the stock you have leverage to would be reported by goldman.

matt: when bankers at morgan stanley and goldman sachs are all hanging out in the eagle club, don't they say to each other hey, we gave bill weighing a ton of leverage. have you? erik: if bill ever found out about that, they would loose his business. the lack of disclosure among prime brokers such as morgan stanley and others is e central to the industry. this is what regulators are taking a look at. what is obvious at this point is a lack of what you just described. the prime brokers did not know what they were doing collectively. there is limited ability when you open a swap account for the prime broker to demand financials. each prime broker was, to a degree, operating in the dark. that is crazy.

there is an incentive for the prime brokers not to demand more information beyond his insistence to remain anonymous, they want his money. if they say, we demand this, and he says, take a hike. you face a quandary. that is one of the reasons this has become standard operating procedure. matt: it will be interesting to see if they continue to extend that kind of leverage to these whales. erik schatzker, bloomberg editor-at-large who has been breaking this story for a week. coming up, constance hunter on the upcoming u.s. jobs report. this is bloomberg. ♪

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gradually made in july, responding to both internal and external pressure to provide more crude to the recovering economy. at the start of the week, there were expected to rollover existing curbs. the group featuring business union and faith leaders who have trust equity in their respective communities. their mandate is to spread the message to get vaccinated. >> the vaccine is safe and will save lives. the community core is about getting that message out as far and wide as we possibly can. >> the vice president echoed what the president has already urged saying, "we want everybody to get vaccinated.

" as college basketballs best teams is getting together to decide the next champion, one of the coaches is calling it quits. global news 24 hours a day on air and a quick tech powered by more than 2700 journalists and analysts in hundred and countries. this is -- i am karina mitchell. this is bloomberg. ♪ matt: i am meant miller. welcome to quickly toss it over to the president of the united states, joe biden. let's listen in. pres. biden: to make sure that

when the government is spending taxpayer money, they are spending get on american made goods, american corporations, and american employees. today i directed every member of the cabinet, every one to make -- take a hard look at their agencies spending and make sure it follows my american standard we set in january. now he got a lot of business to do and get done, and i think the press for being here, but i will talk to you all later. matt: that was joe biden giving

a short talk there before his first cabinet meeting. you can see all of the cabinet members masked up around a sincerely distanced table. he does have a lot to talk about and sell. we do have the $2.2 trillion infrastructure plan, which should be easier to sell than the tax hikes he proposes to pay for it. tomorrow we get the nonfarm payroll number, even though it is an easter holiday, the bureau of labor and statistics will still release that. jobless claims still holding above level that was the high watermark during the great

financial crisis, but still a lot to do for the u.s. economy. joining us now to tell us what to expect tomorrow and what we can take out of bidens plan, constance hunter. living get your reaction to the jobless claims number and what you expect from nonfarm payrolls tomorrow. constance: the number was disappointing, but we are still moving in the right direction. i still think we are probably getting some residual from the weather in texas impacting the claims number. we are not too concerned about it, it is one week with the disruption. tomorrow were looking at pretty strong numbers, 676,000 jobs. i would say where we might

wrong, and we got some hints from the men factoring ism that came out today, we might see fewer manufacturing jobs than suspected, but we are expecting a strong leisure and hospitality print, and that is expected to get stronger as the months go by with warmer weather and more vaccinated. matt: i was talking to tim fiori earlier, the chairman of a manufacturing business survey at ism, and he was saying the blowout number was amazing. the biggest growth in manufacturing since 1983, you

and i were not even in high school at that point. he did say there were a lot of concerns from manufacturers in terms of transportation issues, increasing prices. how do you think this bottleneck fixes itself or its fixed? constance: i do think we are going to continue to see continuing rises. we expect them to continue rising until the fourth quarter of next year. i think a lot of these bottlenecks are u.s. related, but a lot of them are global related. we do still have a high level of virus around the world, in europe and latin america. all over the world where work stoppage is is affecting the supply chain.

you overlay that with strong demand still here in the united states, and i think we are going to see supply bottlenecks into the second half of this year that will push it prices intermittent leave. -- intermittently. matt: what he think of the biden infrastructure plan? is he spending money and right -- in the right places? constance: it looks pretty comprehensive. he had to walk on a tight rope. within his own party he had a range of views from the most progressive all the way over to the right in. he had to do something progressive, but that was not over the top. he wants to get some republican support, i would guess, so he really had to do things that

were down the middle of the fairway. that will be on top of the pandemic has already done, which has shocked so many households and firms into greater digital literacy and higher productivity. i think we could be in for a very strong period of productivity. matt: there are so many areas which -- when i talk to business leaders, they say this pandemic has fast forwarded us five years in terms of making progress on so many technological issues. there are still concern on both sides of the aisle for paying for this package. republicans are going to be dead

set against raising corporate taxes 28% and even some democrats are not willing to do anything in terms of getting rid of the soul -- cap. had he think that will work itself out? constance: it will be some negotiation. 28 will -- 28% will probably be too high. they'll probably have to come down. i will say this, for all of you people who were afraid of the mmt world, it's good to see there is some physical discipline being brought, and there is this concept that you need to pay for this package as it is not going to pay for itself. this is the fallacy we are seeing coming out of washington on a number of different fronts.

it is nice to see the fiscal discipline aspect, but raising corporate taxes is not going to well received by corporations, but when you poll households, they would much rather see corporations have higher taxes than household. the corporate and personal income tax it's going to be favored by most people. if you've that early polls, this plan is getting high marks across the political spectrum. matt: great to hear from you inky your insight on this. chief economist at kpmg. coming up, reports that canada's ontario is going to be under lockdown for 28 days just adds

to the increases in lockdowns we are seeing around the world as the rate of infections shoot. we will bring you the details. this is bloomberg. ♪

matt: this is bloomberg markets. i am at miller. ontario will be returning to a lock down on saturday, winding restrictions on gyms, hair salons -- joining us from auto a is bloomberg news correspondent

shelley had your. first of all, the scenario in canada is so much different than that of the u.s.. that -- is that because of the vaccine rollout? >> ontario went into his second lockdown around christmas. it finally able to use those your shoes and this all cases in lower around february. now we are in the midst of this third wave again, and we are going to have another walk down here in canada. with looks of the border, we can see that they are reopening and their vaccine rollout is accelerated. part of it is the fact that the u.s. does have a faster vaccine rollout, they have been able to reopen more. they may be more tolerant as

well of higher virus cases. possibly the -- their hospitals are able to endure more cases. but they also have a higher national immunity. whereas in canada people have been exposed to the virus and there are the possibility of more and more waves since not as many people have been exposed. only 2% of population have taken the vaccine. it is a lot slower rollout than u.s.. matt: what kind of damage is being done to the nadine economy. we look at this type of lockdown, what does that mean for adp? >> amines economy is not going to grow as fast in the second order.

canada's economy has been resilient, even to the second lockdown we had back in january and part of february. other sectors of the economy like manufacturing, commodity, construction, those have been strong and have held up despite restrictions on other parts of the economy. really what we are going to see is the pen -- the damage is in those pandemic exposed sectors, restaurants, hotels, travel, and tourism. we are going to see losses there, but economists don't think these -- the hit to the gdp will be that much. matt: in terms of stimulus or infrastructure, but has the canadian government done? >> they've implemented a series

of programs and ordered keep distances and consumers afloat so they can keep some employees on the payroll. they've given businesses loans, plus a substantial amount of unemployment benefit and then the government has promised to do voice of a billion to $100 million in additional stimulus over the next three years. it does so small when you. to u.s. fiscal package, -- but there is possibility that the canadian government is the third wave could increase that amount of stimulus. we get the budget from the federal government later this month. matt: shelley, thanks so much

for joining us. shelley hagan talking to us about -- the situation for the country of canada. coming up, we are going to get insight on esg in the housing market. and economies trying to cover -- recover from the pandemic.

matt: this is bloomberg market, i am at miller. let's focus on housing -- and infrastructure. joining us now from portland, oregon is molly for naro, managing partner at green city. molly, what are you seeing in terms of the shift, are people moving around, and therefore

building more sustainable living spaces? molly: there is no question that even prior to the pandemic, sustainability, where people worked and lived was very important, not just in terms of their own value, but increasingly towards their own personal health and wellness. it is only accelerated, so our broad look has become much deeper in terms of moving beyond just the environmental impact of our properties, but also looking at health and wellness and equitable communities. it is opportunistic in terms of where people's values are when they're spending more time in their own home environment. matt: what kind of changes are you seeing? molly: for health and wellness,

we were well prepared going into it because we focused on clean air, all of our properties have the highest rated filtration, that is very important in terms of viral protection. but we also have designs where bring h -- that bring nature into the indoor environment. we do have studies that show that it is significant -- this is been a stressful year, people have been spending more time in their apartment at home, these values have been critically important and are only increasing. there is no question that they're good for the tennis that we rent to, but there are also significant in terms of the communities where we invest. we are pleased in that regard, but we are also thinking this is where people's desires are

going, as well. matt: when you look at the biden infrastructure plan, is there reason for optimism in terms of sustainable housing? mo -- molly: i've not looked at the entire amount of it, but there's no question that -- across the board. i would tell you that the biggest impact we are seeing is coming from consumer demand. those that we rent partner -- rent apartments to are demanding that there's base is sustainable with equitable -- their space is sustainable with equitable design. matt: we have seen an incredible

push for esg investing. i wonder if the private piece of the puzzle helps even more than state support, molly. molly: first and foremost our responsibility is to return into our investors on the fiscal side, but we fundamentally believe that what helps drive right returns is putting esg components into our properties that greater attract tenants and drive tenant retention. it's not only good for our communities and neighborhoods in the tenants that reside in those properties. matt: are there pockets of the country that are doing better, i mean, i guess it is to be expected that where you are in portland, people are wanting to be more sustainable. are there other pockets of the

country that are doing better? molly: we rent across the country, and i can tell you that in all markets, this is where people want to live and work. it has only increased as people have spent more time indoors over the last 12 months due to the pandemic. recognizing and delivering that is important. not just in terms of making good financial decisions by real estate investments, but also making our communities and neighborhoods that are -- communities and neighborhoods after. matt: i want to bring you some headlines from ontario, as we were telling you before, it looks like there's going to be 28 day lock down. ontario is indeed declaring a virus emergency.

indoor events will be banned. grocery store capacity will be capped at 50%. we will continue to watch what is going on in canada. we had these lockdown announcements in europe yesterday, and france and italy, germany is also in what it feels like is a never ending lock down, which also things like no plan. i will also say germany has kept the infection and death rate down to a much will lower level -- down to a much lower level. i am at miller. this is bloomberg. ♪

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karina: they're predicting -- the size of it and proposed tax hikes, the white house -- mcconnell says he will fight it every step of the way and does not believe democrats of the public mandate to advance ident proposal. meanwhile the wave of infections smashes records and chilly -- in chilli. it's also expanded retail restrictions and a nighttime curfew. in dealing with a shortage. the price tag of the different -- proposal may drive away republican support. that includes 50,000,000,004 r&d. another blow