♪ caroline: from bloomberg world headquarters in new york and here in london, i'm caroline hyde. joe: i'm joe weisenthal. romaine: market ends the week on a record high. joe: the question is, "what'd you miss?" caroline: s&p 500 posting a best week since thanksgiving, and it

is not just equities, it is liquid assets. bitcoin touching another record, around $40,000. investors kind of shrugging off the u.s. jobs are part that shows jobs were lost in december, first negative trend in eight months, but joe, there was positivity in the report. joe: exactly right. the headline number came in worse than expected. we thought this contraction in the number of jobs, but it was extremely concentrated in service areas of the economy. add the good news is that , layoffs job losses characterized as permanent, did come down for the month. we have a picture of extreme pain due to resurgence of the virus, but other economic indicators, sickle coal areas, manufacturing, showing improvement. it could be worse. . there is a glass half-full

argument to be made about the quality of the jobs report. romaine: and there is concern here that in order to continue the trend of improvement, particularly with service areas, we would need to see a tremendous spike in demand coming out of the covid crisis. if that doesn't materialize and leave up to expectations, you wonder if the jobs come back. joe: exactly. joining as is the bloomberg u.s. economy reporter. thank you for joining us. today's number comes amid growing discussion about what the biden physical move is going to be next, stimulus checks and so forth. what is the number, tell us what the economy needs? think you are, i right, you saw a jobs report that on the surface meets expectations, but some details were pretty promising. we saw job losses were almost exclusively in hospitality.

this sector lost 498 thousand jobs last month and three fourths of those were at restaurants and bars. otherwise, many sectors saw solid gains. i think this shows us the recent surge in covid-19 case is the activity to curb the spread, and frankly cold weather, are having a devastating impact on covid-sensitive businesses, particularly restaurants. that is something stimulus could really help with. and until we get widespread vaccinations and they return to pre-pandemic activity, that sector and industry is going to continue to struggle. half-full glass outlook, the good news is that other parts of the labor market are holding up and are seeming to recover. can we go to the glass half empty bit?

long-term unemployment is picking up. people have been out of the workforce for a long time. that leads to a much harder time getting back into it. can a stimulus package ensure people have the right skills to come back in? it might help pay the rent and ensure they can feed themselves, but what about ensuring we don't have long-term scarring? reade: no matter what, we are probably going to have at least some long-term scarring. we still have long-term unemployment that is superhigh. today's report showed us it made up more than one third of total unemployed, people who have been unemployed for six months or more. that is concerning however you slice it. in terms of the next step and how stimulus helps, things like retraining are really helpful, but in the meantime, even with something as simple as we saw in the last pandemic aid package,

and probably will see something similar in the next one when it comes to an employment benefits and extending those, more people getting those, having them for longer as well as direct payments in the form of stimulus checks or whatever it may be to help people pay their rent or whatever it may be. romaine: it is always confusing as to the way they massage these numbers. but we are still talking about more than 9 million jobs loss -- lost last year, and millions more in the labor numbers because a lot of people have dropped out of the labor force. how do we talk about those people as we talk about the recovery? do those people come off the sidelines quickly, or are they out there for the longer term? reade: it is hard to know right now. fort of it is dropping out a variety of reasons, everything

from parents who are trying to figure out what to do when their kids are not in school or if there childcare center has areed, there is people that discouraged and have stopped there isor work, people dropping out of the labor force because they are looking at job options and are not seeing anything that they can do safely. so i think it is a little hard to know how fast that can snap back at this point. in the december report in the thert out today, we saw workforce participation rate stayed steady, but stayed steady add to a pretty depressed level. it will be interesting to watch open,r when schools whether you will see people surge back into the workforce, or whether it is going to take much more than that to fix this issue. downne: nonfarm payrolls

140,000. if you are a glass half full person, most of those losses were concentrated in service industries, and other industries did well. we are about to talk a lot more about what the future of the economy is. this is bloomberg. ♪

♪ romaine: we were just talking about pain still felt in the

labor market, in the economy, but the markets are still risk on. of all the top movers in the market, most of them bitcoin. buying is extraordinary electric coins or people buying companies related to electric coins. in the meantime, we are running out of ways to describe enthusiasm in the market. here is another way. the percentage of stocks currently trading above 200 day average, it doesn't get higher than this historically, basically. we sought during the financial crisis, everything getting slammed to the moon. caroline: it has been called an epic bubble, but a nobel prize-winning economist who identifies bubbles doesn't yet see one. we have a post-pullover whether push-pullvalued --

over whether it is overvalued. joe: let's welcome ben emons, managingy global advisors director. i expected tesla to rise 5% every day, today it actually rose 8%. what does the market environment tell you? ben: joe, thank you very much for having me again. it tells me that coming out of the shock from the pandemic, economic changes occurring. part of that story is tesla, as in people jumping on stories that it is all going to be electric vehicles one way, or digital payment systems are going to become such an important part of life, that is part of this rally we are dealing with. the chart you just showed, this extreme enthusiasm about the markets, i think all about that.

but underneath remains the recovery story, as you just went through the segment, the hospitality sector saw a lot of job losses. president-elect biden was making a specific policy target to start helping that sector, so there is a recovery story coming. and i think that is the enthusiasm in the market, recovery this year. romaine: when you look at stocks that moved, yeah, apparently we are just driving ev's and counting our bitcoins in the future. [laughter] in all seriousness, earlier in the week we saw a pretty significant move, materials ampany, asphalt maker had bonkers day couple days ago, and you have a lot of these names, steel companies rallying hard on the idea that you are going to see a tangible, shovel in the ground type of economic recovery. it is not going to be as if eve as wel at -- ephemeral

saw in 2008-2009. goodyes, that is a morning, america, feel. the materials sector has been outstanding in the market since november, and that speaks to this anticipation that we do not have any more major political hurdles to get a significant package through the senate, or at least a serious vote over it. and that could lead to a bigger infrastructure effort that we saw after the financial crisis, which was meant to kickstart the economy. now, there is a global story happening. anybody stronger than anticipated at the supply chain that everybody still relies on from china, and the pandemic still has to be fought, so i think that is part of the materials story. not to be stuck here, but there given byore momentum the uncertainty as countries

deal with lockdowns. caroline: is it going to be in everything rally? i am looking at another index at the same times the small caps russell 2000 rally. emerging markets are hitting record highs at the same time u.s. markets are hitting record highs. time is opportunity cost come in? ben: one opportunity cost is that we can't have a rally without a notable rising yields. tesla should be reflective of the bond market. that is one thing we will get reconciled with, and it is somewhat showing up in credit markets of the start of this year. so i do think that is the credit market has a bit of a different tone, eventually the stock market will start taking note of that. in other words, companies that issued a lodge of long-term debt, the communications area for example, they have lagged in

the rally since the start of the year because the credit markets are not really well performing because of higher interest rates. noyes, everything rally, but free lunch, it will be with higher interest rates. at what point does not become problematic, 10-year, 1.11? does this have a ways to run? ben: it has some ways to run, joe. because we have to look at the mobility ofd, the the dallas fed, for example, is a reflection of the pandemic. higher andy grinds you open the economy over the course of this year, if we ever get back to pre-covid levels, that is 1.9, that is still recovery. but if it gets a fast move to

1.9, that is obviously destructive. we want to avoid that scenario and a destructive move in rates, but i think we can get to a number after covid and when the economy is normalized, higher interest rates will start the way, and you will also get the housing slowdown. that is one reason why the everything rally doesn't have a virtual nature. time in thedinary markets, our thanks to ben emons . bitcoin handing another record, we talk about the extraordinary moves. this is bloomberg. ♪

♪ ♪ today we are focused

starts risk on rally to 2021, s&p 500 setting a new high, best week since the end of november. but joe, the bitcoin surge can't go unnoticed. a particular tweet caught your attention. joe: this must have been a delicious tweet to tweet. cameron winklevoss, one of the winklevoss twins, owner of the gemini trading platform, it makes sense a money network would be more valuable than a social network. we all know the backstory, create winklevoss didn't , but what -- bitcoin he attached himself to is very impressive. romaine: are you the inventor of the bitcoin?

put this to rest. joe: we will discuss this off-camera. joining us with more insight, slowcarlson, principal at venture and cofounder of the open money initiative. obviously an extraordinary year, extraordinary week, one of the best months in a long time, i think since december 2017. how does it feel from your perspective? are you getting calls from people asking you to help them find the private key? jill: not yet. but people are starting to crawl out of the woodwork. this to isd compare bitcoin in 2016, it started to climb from $400 to $4000 before we reached the fever pitch, ipo's coming to market for we

reached bitcoin hitting $20,000 three years ago. steadybeen a more quiet, and i think more sustainable climb we have seen thus far. we will see where it goes next. caroline: sustainable because of the people buying? paid $.50 bye every person that said institutional money is coming, we would all be millionaires. can you tell us about flows? unoriginal, to be but it is indeed institutions this time. what is striking to me is the diversity of institutions buying. paypal,alking about microstrategy, corporate treasury, hedge funds, real money, family offices, venture funds, lps venture funds starting to look more seriously

at bitcoin. that is a point that can often get lost in broad brushstrokes of saying institutes are buying, is that there is a real variety of institutions playing in the space right now. romaine: what about government, and speculation? jill: governments are always going to hold their cards closer to their chest, and rightly so. that is one thing we should be keeping an eye on you in 2021 though. thell love to talk in bitcoin space about how bitcoin is the next gold, bitcoin as a reserve asset, none of that can be said to be true until we start seeing central banks and governments being into the asset than treating it as a reserve. speculation about some governments in particular around the world moving into it, but we have yet to see real confirmation of that. joe: you work for a venture firm.

of companies are promising within the bitcoin space? where does more work need to be done on security for payments, custody, things like that? what are the opportunities as this gets bigger and more institutional? jill: great question, such a different tone this time around in terms of innovation we are seeing in crypto versus three years ago. three years ago, it was all about how we can develop a new token, new protocol, new cryptocurrency, where is this time -- and you see this in the prices of the publicly traded to cryptocurrencies and token, it is really all about bitcoin. and what is really exciting there is to see all manner of new infrastructure, whether custodians, exchanges, all kinds of startups attempting to be almost crypto banks who can networks andat rails, and also bitcoin and

cryptocurrency networks and rails. so it is much more focused on infrastructure this time, and that is why -- that is what i am seeing in terms of innovation out there, and why i am excited personally. caroline: you said it is all about bitcoin this time. we have known it was always about bitcoin in terms of digital gold, but we have seen all boats rising at the moment. when we seeed in aresmaller companies blazing capital through their own cryptocurrencies, how are you seeing them raising money? lot lessre has been a of that. honestly, a lot of focus in that area of the world this year has been around projects and protocols that raise money via their own tokens.

three years ago, coming to market and lunching and trying to gain traction within their own developer communities and so forth. so it is a lot less about people coming to market to raise money anew withaise money their own tokens, and more about those companies that got started a few years back trying to grow and drive traction. what we talk about is bitcoin dominance, where the bitcoin toket cap is relative to the broader cryptocurrency cap. three years ago, it recovered 30% to 55% whereas now, it is recovering between 70% and 80% and to me, that is down to a few factors. bitcoin has always been, if you will come at the gateway drug into cryptocurrency. so it makes sense if you have institutions and so forth buying for the first time, they would

move to bitcoin first. but it is also down to the macro environment and that is what has been driving all this bitcoin buying and accumulation over the last several months. and it really is about the digital gold story and the inflation hedge, and the idea bitcoin is a safe haven asset despite its volatility. great stuff, we will definitely have to have you back on soon. there will be more to discuss in the weeks and months ahead. our thanks to jill carlson, principal that slow venture. romaine: you can subscribe to what'd youpodcast, miss this week, the second highest rated podcast available on bloomberg. check it out. ♪

caroline: i am guessing both you guys are going straight to olive garden? i am.e: joe: they do a good job of salting the water. caroline: that is all for "bloomberg markets: the close." -- that is all for "what'd you miss?" ♪

♪ i am emily chang, in san francisco. this is "bloomberg technology." coming up in the next hour, social pressure. facebook, google, amazon are feeling the squeeze. president trump regains control on his twitter handle. $2 million where