>> there is clearly a bit of froth. markets are cutting a path between stimulus optimism and market pessimism. >> we cannot do this forever. >> the infusion of players know what they are doing. retail investors could get hurt. >> we have a massive wealth rebalancing. >> not every company can be an apple or a tesla. >> next year, when things start to look more normal, then you will have the hammer come down on some of the companies. >> this is "bloomberg surveillance" with tom keene, jonathan ferro, and lisa abramowicz. jonathan: good morning, good morning. this is "bloomberg surveillance" live on bloomberg tv and radio. it has felt like vegas on wall street for the last couple of

months. i am jonathan ferro. futures down on the s&p 500. tom keene, take us straight in the roulette wheel. tom: thank you for our team yesterday amid the chaos. we will try forward again. adult entertainment. we will describe the shorts, we will describe the longs, we will describe the important issues. i do not want to pick on lisa, but did you note we may look at the unemployment of united states of america? jonathan: before you get too serious, you are redefining adult entertainment. lisa: [laughter] tom: las vegas, i go there. gamestop through 500. jonathan: it is unreal. the real business is at 8:30. lisa: it ties together because there is a populist anger underpinning the gamespot saga. stick it to the man is the

theme. whether that is driven by manipulators, we will discuss that. underpinning this office up as economy that is struggling. 8:30, u.s. jobless claims. the expectation 875,000. coming down a little bit from last week but not that much, highlighting the need for more assistance. 1:30 president biden is signing executive action targeting access to health care. the question we need to address is his use of executive orders. he has been signing as many executive orders as he can. the new york times saying slow it down, pump the brakes and try to get congressional consensus. that becoming a growing concern. 5:10 the reddit co-founder will speak on bloomberg television. this goes back to the gamestop story, these chat boards and what role they play in fostering the huge run ups in the stock. what kind of regulatory action

and oversight is necessary at a time people view this as populist, as the common person voicing their opinion in their view. jonathan: i love chairman powell's reaction. he was asked about this several times. i felt him screaming are you serious? we have 9 million people unemployed. we are this far away from full employment and you want to talk about gamestop? michael: he did a -- tom: he did a dr. fauci where you could tell he was genuinely more relaxed that he was with the previous president. there was a point two thirds of the way through where he lost it as much as he could lose it. he made clear there are 9 million to 10 million people short on jobs, nothing else matters. i suggest jeanna smialek's first question was appropriate and he stepped aside nicely. jonathan: down seven on the s&p 500. your yield on the 10 year

briefly south of 1% this morning. this morning unchanged at 1.077%. euro-dollar coming in .1%. you do not care about that. you and we care about one thing. tom: there is no question. why don't you bring in romaine bostick who is interested and ready to go. this is serious stuff. jonathan: premarket prices, only one place to go to start. romaine: it is all about gamestop. it is up 140%. there was a brief chill that went through the market. gamestop dropped all the way down to $311 in the post market. this morning it got above $500. right now sitting up above 32%. $460. we should point out that you wake up in the morning, the old days he's to check dow futures to see what was going on. now you look at the reddit boards, this is what they're are talking about. gamestop. sundial growers, a penny stock

of a cannabis company is up 61%. amc up 6%. it was up 300% yesterday. forget gamestop. tom: you are on in the afternoon. there is long and short. the behavior of the short squeeze is different in the morning. what did you and joe weisenthal observe yesterday? what was the behavior of the long crew? what was their behavior yesterday? romaine: if you want to good microcosm, look at the price action. you started to see a significant selloff in some of these names. as soon you would drop a couple of dollars you would see a flurry of buying activity to push this back up. who is buying? the general theory is that has to be some of the shorts. at some point the marginal return between that drop down and pop up will get smaller and smaller.

that would be the theory you generally subscribe to. lisa: there is also a question about the call options and the role of derivatives. sarah ponczek pointing out that nearly 38 million call options traded yesterday, the most ever. can we get a sense of what proportion of this is the retail investor and how much is professional sophisticated investors taking advantage of this mass hysteria in calls to invest in specific stocks? romaine: the easiest ways to look at what the size of these orders are. we are seeing in 10 or below, which seems to suggest this is retail traders. we talk about this on the show last night. if you're trying to make sense of the price action and draw direct line back to a hedge fund , you will have a hard time doing that. everything is skewed. we had a couple of short-sellers on our program who talk about this. right now a lot of short-sellers

are still active in this market but they are bending over backwards -- tom: s3 said short interest on gamestop's 130%. the shorts have reloaded the canon, correct? romaine: i made my own custom index of the most shorted companies. overlaid that with the number of open interest you are seeing and you get the list of names. some of the names we've been talking about a lot the last few days. there are other names popping up. you see viacom, iron mountain, build a bear. tom: build a bear is a dow component. romaine: it could be. some of these could be dow components. you start with gamestop you have a fundamental story, a company with $5 billion in revenue, $3

billion in assets, and compare that to sundial that had less than $100 million in revenue. tom: the number one thing is the short interest way over 100%. how does that happen? tell our audience how you go from a 20% or 30% sponsor but short interest, part of capitalism, out to more of all the stock is short interest. is that anything more than jonathan ferro's las vegas? romaine: not much difference. tom: leverage and euphoria. that was a song about 25 years ago. jonathan: another band from the 1950's. romaine bostick, appreciate the catch up. other things to talk about. there might not be an audience. apple earnings after the close today. does anyone want to talk about apple?

$100 billion plus sales. we talk about a game company. can i say something about videogames. i think once you are over the age of 30 it is done. i do not understand the peter pan nonsense. why people still buy videogames games at 30 plus. i cannot get my head around. tom: are you looking at me? jonathan: you have a game console? tom: the new playstation is pre-good. lisa: this psa is brought you by jonathan ferro. build a bear you're a pro if you are 30 plus. tom: i have never been to a build a bear. i have never been to a gamestop. jonathan: wells fargo equity strategist joining us now. it has got ridiculous. walk me through what a phone conversation went like with a client in the last 24 hours? hannah: clients want to know the

power of this retail flow and how much they need to keep that in mind when they look at a picture, not just day-to-day but six to 12 months down the road. this retail flow, the power we are seeing it is not out of nowhere, it is just diversified. when you see that concentrated in single names, you have some respect on that retail flow. it is no longer smart money versus dumb money, is a force to be reckoned with. we think the bigger driver will still be the economic recovery. lisa: that is why a lot of wall street is saying by the depth. there is a question of how long the tail can wag the dog with all of these options activity in the hedge fund unwind. how much further does a broader selloff have to go before we hit some sort of bottom? anna: the selloff is not in all parts of the market. you are seeing more weakness in places where you see high momentum. part of that can be investors

taking something off the top, which we think would be prudent, especially if you have such a great run of them. why not take some from there and rotate into something you think would be a hotter growth trade, a higher earnings growth over the next six months? that equity weakness is also because expectations have been so high. as you saw with earnings season, you are mentioning big names that reported last night. great numbers, but still with expectations so high, you cannot help but feel a little disappointed. tom: we had and richards on from fidelity international. she is brilliant. let's do the physics with anna han. when you look at the physics of the moment, i understand the trades close out with leverage losses. there is no question about that. is that going to be discreet and enclosed within that market?

the hedge funds the guys on the couch, or will it rebound over into your world? anna: i think you will see ripple effects. if there is any evidence of that it is the connectivity we see among the trading market, among whether it is at home in your pajamas or it is those institutions, you're going to see repercussions. how deep those go and how long, who it hurts the most, that remains to be seen. that leverage and the technical aspect of what is going on needs to be respected. they are no small thing. jonathan: are you willing to draw a line between what happened in the single name mania and the downdraft we saw in equities? anna: when you say draw a line, i will not say they are completely separated. you are seeing activity in these constituents and it does get people to speculate and draw conclusions about comparables for companies within the s&p 500

, what it means for certain sectors and industries related to what is going on in the more idiosyncratic story. at the same time, i did not think that is the main driver. keeping that in mind, we are watching that day-to-day, but longer term we still like the cyclical groups, we still think the high growth groups are elevated in value. it will be hard to continue impressing investors come and we think defensive's and the volatility picture continues to decay. we are hitting speed bumps, not surprising. jonathan: great to catch up. anna hand, wells fargo -- anna han, wells fargo. it has only been one story. i think anna nailed it when she said you need to take this retail flow story seriously. we can joke, but it is serious. tom: greg valliere a, a blistering note published.

i love valliere's phrase where the hunter has become the hunted. hedge funds going after the troubled stocks and now they have figured out the game where the hunter is the hunted as we see gamestop move up. 488 right now. my eyes are failing me. jonathan: just this morning. i will let the lawyers deal with the legal stuff. i think the short side is important for price discovery. what is interesting, and we talk about this repeatedly through the week, are the people that use the short story. now we have retail playing a similar game. tom: you have been in meetings where i am screaming about that. we have never let that on our show. we do not tout it. i mentioned the other day. the way steve eisman does it is great. total class, totally silent.

jonathan: might be a word with us after the show. tom: he will probably be in the 9:00 for all i know. jonathan: coming up, a little chat with the imf managing director. joining the bloomberg year ahead conference with tom keene. that interview is coming up a little later. from new york city, this is bloomberg. ritika: the federal reserve is nowhere close to ending its massive support for the u.s. economy. that was made clear by jerome powell. fed policymakers left their benchmark rate unchanged near zero and powell told reporters it would take some time for the fed to reach the threshold for dialing back its bond buying program. in a span of two weeks, states in the u.s. were to have seen the number of coronavirus cases go down by 43%. that outstripped the decline in

other regions. california governor gavin newsom eased social distancing measures earlier this week, but that could lay the groundwork for inspections to spike again. the european union and astrazeneca are locked in a dispute over coronavirus vaccines. the drugmaker refuses demands that it take vaccines from its british factories to include doses going to the eu. the root of the issue is astrazeneca's decision to give the u.k. priority over the you following a part -- over the eu following a production glitch in belgium. xi jinping is signaling beijing will tighten control over hong kong cured president g says the center -- president xi says the center must be governed by what he calls patriots. he told carrie lam -- shares of apple are lower premarket cured executives came

out with a cautious outlook that overshadowed quarterly revenue that top $100 billion for the first time. apple says the sales growth from air pods and wearables will accelerate. global news 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. i am ritika gupta. this is bloomberg. >> the economy is a long way for our employment and inflation goals and it is likely to take some time substantial further progress to be achieved. overall our interest rate and balance sheet tools are providing powerful support to the economy and will continue to do so. jonathan: chairman powell of the federal reserve is not concerned with your online reading club, he does not want to censor it. the online reading club line is great and it is not mind, it comes from someone better than me on twitter. alongside tom keene and lisa abramowicz i'm jonathan ferro. futures just turning positive on

the s&p 500. we have to talk about chairman powell later. rates and the correlation between rates and asset prices and the correlation the chairman of the federal reserve think apartheid. the biggest bubble -- do not think are tight. the biggest bubble we have seen as a rising interest rate environment in 2007. we have rates going up and that bubble kept getting bigger. there is that cap yacht -- there is that caveat but i'm not sure how many agreed with the chairman on asset prices and interest rates. tom: at 8:30 today we will get what he was focused on, which is claims. i want to thank the chairman for the paid promotion for the bloomberg terminal when he talked about data transfer and how that control so much. we thank him for that comment. right now we thank emily wilkins for joining us -- we have headlines at 5:30. they are slipping.

is the honeymoon over? emily: biden is going full speed ahead on the executive orders. we expect more today focused on health care, that includes reopening the health care insurance market, allowing americans to sign up outside of the normal window of time, and some of these executive orders will also deal with abortion and providing government funding to nonprofit agencies that provide services, including abortion counseling. tom: what percentage -- i do not mean to pin you down -- what percentage of these so-called orders are reversals of president trump's or are they newly created orders? emily: these are a high percentage of orders reversing policies from president trump. we sought the republican party very antiabortion, we saw president trump go along with that with a number of these policies. the opening of the health care market, this is something democrats have called on the

trump administration to do during the pandemic, but because of republican opposition to the affordable care act, that does not happen. lisa: does it highlight these executive orders in a way joe biden is trying to unilaterally go at reversing some of these orders? does it highlight the ongoing divide in washington that the tone people were talking about that there would be bipartisanship is not real and we are back to square one and the old washington? emily: if you want to look at indicators that the kumbya tone is over, i can point to a dozen. there are people criticizing joe biden for signing the number of executive orders he has. there are people praising him for taking such quick action. part of what you are seeing is recognition democrats only know they have control of the congress and the white house for the next two years and this needs to move as quickly as they can on their priorities because in 2022 there's a chance

democrats might wind up losing either the senate or the house. tom: we need to interrupt and translate for you. kumbaya is a song you sing at campfires. ♪ kumbaya my lord kumbaya. jonathan: what is the ? -- what is the next line? lisa: this is adult entertainment? jonathan: what is the next line. i think there's a chance before the next hour we take this show down from three hosts to two. senator warren, did you see her tweet on gamestop? "with stocks soaring and million struggling to pay bills, it is not news the stock market does not reflect our economy.

for years the same hedge funds and private investor firms have treated the stock market like their own personal casino while everyone pays the price. it is long past time for the sec and other financial regulators to do their jobs. with the new administration and democrats running congress." senator warren tweeted a gamestop article. i am trying to understand. tom: you are on about the confusion, but emily wilkins, what does the confusion in washington between liberals represented by the good senator from the commonwealth and president biden? what is the separation? emily: in regards to the gamestop thing or regards to water policy? tom: wider policy. how are the liberals doing? emily: there'll be tension between the moderates in the democratic party and the liberals in the democratic party. i note news has broken from

politico about a potential two track spending bill for the big stimulus, and part of that is to appease the moderate demand for bipartisanship while also telling liberals we know we control all the branches of government besides the supreme court and we are going to be using that power to make sure we are making sure to give people the a they need during the stimulus. jonathan: emily wilkins in washington, d.c. headline from dr. fauci. he thinks double masking make sense according to npr. 12 months ago, 1011 months ago, where were we on masks and where are we now? the confusion over the messaging that came from the health care community on the one side, and then the botched communication that came from the administration on masking. double masking, this is not the first time i have heard it, because of the new variant we are starting to see from the

mutation of this virus that has become much more contagious. tom: i do not have any wisdom on this other than to say i love the difference between san francisco and los angeles and it tells me is cultural. most of this is cultural. if that is the case, you need responsible messaging. jonathan: i have to be clear on something. my experience, i have lived this in both london and new york. tom: and capri and key west. jonathan: in my experience in the united states it became politicized. in the u.k. it was not politicized, it was a cavalier attitude, almost in antigovernment push that you cannot get to tell us what we are doing. it is not about either side of the political aisle. a general attitude around masking. what we will see in the u.k. until recently is a lot of people still walking around in public without a mask. i do not see much at all in new york city. tom: we have short time.

you lead the discussion on this. madrid will stop vaccinating. does that surprise you? jonathan: where will the vaccine come from. it is a huge issue. i talked to the european commission yesterday and put the question to the commissioner, is this european bureaucracy slowing things down, and i got a lot of pushback over that. the facts are clear. the contract was secured with astrazeneca three months after the united states and the u.k. the fact is also clear this vaccine has not been approved in europe. there may be good reasons for that. i do not want to prejudge that but the fact is it is slower to get things done in europe than it has elsewhere. the europeans are not acknowledging that. tom: we will see. catalonia scheduled to be out of order after madrid and a very difficult spain. jonathan: it is tragic. from new york city, alongside tom keene and lisa abramowicz,

i'm jonathan ferro. coming up, christine? and send of saxo bank -- coming up, christine of saxo bank. heard on bloomberg radio and seen on bloomberg tv, this is "bloomberg surveillance." ♪

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jonathan: from new york city, this is "bloomberg surveillance." i know what the best of times nobody cares what i've got to say, but for the best is come in its no one cares what i have to say. i will go through the main markets. i will avoid the single name mania and stick to things like the s&p and the nasdaq. s&p 500 futures doing nothing. apple helping things there. we have gone back and forth about the capital return program at apple. light shed on the team. we have cut the share count at apple by 35% since 2013. tom: is different than intel or ge. jonathan: underperformance in big tech. mastech futures down .4%. a lot of talk about around

chairman powell and what he has to say about rates and asset prices. next time someone comes on the show and talks up markets based on where rates are, let's play the chairman powell sound from yesterday. yields unchanged. yields unchanged on a 30 year at 1.77. let's finish on foreign exchange and make this boring. euro-dollar 1.21, unchanged on the day. price action is clear. you have to go elsewhere. tom: let's get a gamestop. right now just below $490 a share. there is a persistency to the bid. i did not speak of the moment yesterday. i love the intraday chart on radio. both hands on the steering wheel. yesterday i did not speak to gamestop too much with the managing director of the international monetary fund.

she wanted to talk about the pandemic and the new inequalities the international monetary fund disease. with our your hand -- with our year ahead at bloomberg, kristalina georgieva. kristaline: we are bringing our members together. last year to come up with the right policies for this very unusual crisis and this year to march together for the recovery from it there is good news. we now have vaccines and monetary and fiscal policy has done their job, but we also are under the clouds of uncertainty. what we are looking to for the next year are the race between a

mutating virus in multiple vaccines. second, the resolve of policymakers not to withdraw support remit surely. -- not to withdraw support prematurely. we have to see the health crisis in the rearview mirror before we do that. three, a reenergized global corporation so we can vaccinate people everywhere as fast as possible and we can bring the global economy for a more profoundly effective recovery rather than the uneven recovery we foresee. tom: i think my good friend david malpass at the world bank would suggest you are more

qualified than anyone in the world to understand the systems analysis, the processes of the world bank or the eu and now at the imf, of getting the job done. what are we not doing that we need to do correctly? kristalina: the very first we need to focus on is a recognition that vaccine policy is economic policy and only vaccinating everybody everywhere would get us out of the risk of this mutation that we have already seen threatening the hope for accelerated recovery. that is possible. not only is it possible but it is conducive for everyone. we need -- if vaccination is

accelerated around the world, we would get $9 trillion bigger global income and that $9 trillion between now and 2025 will be split 6040 between emerging markets, developing economies, in the advanced economies. it is a great value for money from advanced economies to give a helping hand to the developing world. tom: go ahead. kristalina: the second issue we need to zero in on is something i am very concerned about. it is a growing divergence within countries and across countries. what we see is parts of the

economy, high tech, digital, no contact manufacturing, is doing extremely well. people are flourishing. parts of the economy, the contact-dependent sectors, low skilled workers, women, young people, minorities, very badly. when you take this problem globally, advanced economies are pulling out of this crisis much faster. poor countries are falling behind. tom: kristalina georgieva of the imf. i thought she had a great perspective. we do not have time to get to the euro that jonathan ferro has been talking about but there it is. american airlines gets it done. american airlines pricing in

late february. jonathan: impressive to see some of these airlines snap back. we hope the country can get vaccinated quickly. we have to get justine jacobson waiting patient -- we have to get to steen jakobson. your take on the last couple of days? steen: i think it is super interesting and plays into the larger narrative we have a social revolution between the haves and the have-nots in the world's -- in the words of the people who play the stock market, the wall street suits and the retailers. we have a fit that continues to play a game. the next it will be the world is flat or gravity is something that was invented in terms of fake news. most importantly, we have the fact that the fed needs to stand up together with the treasury secretary that is incoming and realize the financial repression that goes on today creates a market which is in its nature a

one size bet with the market at all times. you have created, by virtue of this extended policy, a look into the future of even more extension of the same policy. lisa: a betting market. just to fill in people who did not hear jerome powell, you are throwing shade at his comment where he said if you look at what has been driving asset prices, it is not monetary policy, the connection between low interest rates and active value, probably not something as tight as people think. given we are in the betting market, do you think this populist shift, this anger you were talking about that seems to be a hallmark, whether in actuality of who is doing the trading or at least in the sentiment on the chat rooms, how else will be expressed in markets -- there is going to be a pervasive feature that does affect where prices end up going. steen: it does and they have

done it. you are aware of a few hedge funds that have been in trouble. if you look at the construction inside the fund management business, and that is the list of the 50 most shortest stocks, you are also attacking the nominal names everyone has in the short, the big hedge funds. we will see, as we saw yesterday particularly in the energy space , a lot of names down 50% or 20% simply because the collateral value of the shorts blew up. they need to sell collateral, meaning they have to sell profit. i think it is important to note we had in percentage terms the single biggest move yesterday we've ever seen. not in nominal terms but in percentage terms, which is a clear indication. if you look at the curve in vix

futures, the indication of what is to come, we have seen a contract aggressively being priced. tom: part of your charm is you have a lot of trading experience. i want you to talk about what we are seeing. hedge funds short, retail, the guys on the couch, i think they're way more sophisticated than people think, i want you to talk about the cost to short. the big guys clear there short. everyone else's re-shorting gamestop. the so-called borrow to short is a mess. what does that signal to you? steen: it signals if there is one component of markets where i agree with you, we have to give credit to you -- to people in the retail space. not only are they giving credit to the short names and the vulnerability where you deliver stocks back to the owners, they can get cold, but they also use

the optionality of options, which translated means they are getting a massive leverage, such as buying the nearby calls. do not forget this is a generation of people, young people, who primarily came from the betting industry. in the betting industry the probability at a bet is at best 50%. now they are aggregating their voices, their money against a short interest as you allude to with a game that says we are playing this like a lottery ticket. we can buy the calls forever and we will lose 40% or 50%, but as long -- we have change the dynamic. for us old suits as they call us, we need to realize the game has changed. i have to go back to fit -- to fed. it is a repression of the

market, we have no price discovery, of course we get to a betting situation. jonathan: let's add to that. with chairman powell, when does it get on his radar? in the last 24 hours that was just a shrug of the shoulders. we have bigger things to worry about. steen: absolutely. we should also give credit to powell who connected it to the full employment mandate he is trying to operate. he put it in the context that despite the fact we are on a low interest rate and we have into 2024 in terms of changes, was to have 6 million people unemployed. the market disagreed with jay powell on the fact that you can go back to a model where you have full employment. for the record, if you asked any futurist, they all expect that by 2030 we will have 25% people, maybe not unemployed but employed alternatively. creating a model that drives towards full employment, full capacity under the headlines of

technology and demographics going the other way. a huge policy mistake incoming. tom: i love what you said about the conflation of quantitative financing and betting over to people trying to play a game, the hunted, the hunter being the hunted as well. i want you to conflate what we heard from the legendary ed thorpe, which is it is ok to take a loss. i know i will take a loss, but i have the upper hand. explain that. steen: it is optionality. the crypto space is another example. let's use crypto. if you play the game of crypto, you do not need to understand crypto, you do not need to understand stocks.

if you are bidding 5% of your wage, 5% of your total amount you have an optionality that says once in a while you get a 50, 100, 200 payback. then you will always be ahead because you control construction of your capital relative to your earnings. we have a high optionality game in the markets and the optionality is being not only supported, but being extended in terms of guarantees, the lengths, the depths, by the federal reserve who has a different agenda, but one of the unintended consequences being to support that optionality itself. jonathan: always great to catch up. steen jacobson. covering this story, the amount of snobbery in the coverage. tom: don't get me going. jonathan: i think is ridiculous. why is it ok for wealthy individuals running funds to, networks like this talking about their book every week, why's it

ok at the height of the crisis for them to go on air and start crying, and then behind the scenes start covering their shorts, why is that ok, but it is not ok for retail investors to talk about where they are positioned, what they like, and what they don't like? i will let the legal issues be dealt with by the lawyers. i think the approach in general, there is huge amount of snobbery. i do not think you are right. tom: one of the great things i mentioned is what you are talking about, the elites being caught off guard. i will not say thing about the hedge funds but i take issue with the boys on the couch idea. that these are dumb people, lucky people, they are unemployed. i am sure there is an element of that within any large groups, but these are sophisticated people who said look at the short interest on whatever the stock is, let's go. i refuse to believe the

tarnishing of the boys on the couch that is going on worldwide. jonathan: cannot agree more. i hope that after this we get away from calling it dumb money. tom: including lisa's kids, so it is important. jonathan: how much of the smart money on this program 12 months ago talking about the crash we would see two months ago, how much of smart money came on the show in late march and said buy, buy. not many. from new york, this is bloomberg. ritika: fed chairman jerome powell says we are a long way from a full recovery. powell pledge to keep the central bank wanted terry spigots wide open to help in economy hurt by the coronavirus pandemic. he brushed aside concerns of a stock market bubble and too high inflation. president biden will make it easier for americans to buy

health insurance during the pandemic. he is reopening the federal obamacare marketplace with an executive order today. a three-month special enrollment period will begin february 16. that will offer health care to people who lost their insurance when they lost her job. the republican party will not automatically back donald trump in the 24 presidential race. the chairwoman of the republican national committee tells the associated press the party has to stay neutral during a primary battle. she says what she really wants is for trump to help republicans win back control of congress in 2022. british prime minister boris johnson is trying to quell support for another independent vote in scotland. johnson has stressed the backing his government has given scotland during the coronavirus pandemic. the prime minister visits there today. toyota has become the world's best selling automaker.

toyota sold a little more than 9.5 million cars in 2020. global news 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. i am ritika gupta. this is bloomberg. >> there is a significant increase in chatter with a particular company or particular situation, then we can flag that and compare that against the trading activity. if we think there is something unusual or even nefarious going on, we can halt stocks. jonathan: that was the nasdaq ceo and president speaking with us. from new york city, alongside tom keene and lisa abramowicz, i'm jonathan ferro. equity futures down .1%. euro-dollar unchanged at about

1.21, in .1%. in the bond market, yields unchanged at 1.011%. there the moves. tom: translate the german headlines. we have all the gamestop malarkey. this is serious stuff out of germany. jonathan: we are talking about a vaccine from astrazeneca that at the eu level has not been approved. we are talking about the efficacy of the shop. there have been reports about the efficacy of the shot for the elderly and reports about how effective it will be for people over 65. germany is recommending the shop for only ages 18 to 64. this is coming out of germany. at the eu level this is a drug that has not been approved, but the recommendation from germany is the shot will only be for people age 18 to 64. tom: i make jokes but this is

not funny. it is extraordinary to see. a lot of good scientists race on vaccines for many different companies. shannon cross writes blisteringly straightforward tech reports. there wonderfully clear. i love when it is seven pages, it is actually seven pages and not filled with filler. she joins us now. off of microsoft and apple, let's start with big tech. what have you learned? shannon: certainly the consumer has been extremely resilient. iphones were up 17% year-over-year. pc sales were strong at microsoft. i think we have also learned the cloud is a big focus. services within apple were driven partly by the cloud services they have. azure was up 50%. those trends are strong.

enterprises a little weaker. it remains shakier. tom: in the game of extrapolation, what is your conviction out two years or five years on these names? how do you recalibrate your conviction to five years? shannon: i remain positive on both the main companies. apple has one billion iphones out there. they have one point 6 billion devices people are utilizing. their services continue to grow. they are spending aggressively in r&d which continues to support their product pipeline. they come out with their air pots that are continuing to be sold out. some of these products do not necessarily move the needle a lot, but in aggregate they do. for microsoft, azure is becoming one of the top choices from a cloud perspective.

companies continue to shift to cloud services like office 365. the interesting thing about pc's is where a few years ago everybody said they were dead and everybody would go to a tablet, now the pc companies are talking about one pp -- one pc per person, not one per household. they're still long way to go in terms of pc adoption. lisa: can we take a step back? shares are lower because they do not provide a forecast yet they had a revenue for the quarter of more than $100 billion, surpassing revenues for full years as recently as 2011. people are selling the shares because they do not have visibility in the near-term that they will crush at the same way they have. there is a question of what they have to do with the money, with all the cash in order to keep crushing it at a time when facebook views apple at his biggest competitor in volkswagen views apple as its biggest competitor with imessage and the apple card. is apple investing its cash in

enterprises that will lead it to that dominance in those particular industries in a different way than it is now? shannon: apple is running the playbook they've been running for several years. i do not think they need to buy something and be aggressive from an acquisition standpoint. you look at their r&d, it is significant. we hear chatter about autos. they are investing heavily in health care. i am not sure they need to change what they are doing. if you look at the trajectory of the revenue, last year they did $274 billion and this year we have them doing $332 billion. the numbers are staggering. i remember when they gave us a model that said we will do $8 billion to $12 billion over the next few years annually. it is working. i think they will come out, they have always said they will come out with products when they are ready to release them. they were not the first product on pc's, not the first product

on ipods, not the first on tablets, and yet they have come out. iphones come you can make the argument they were first with the product they had. they have continued to take significant share and become dominant leaders in the category. i think we will see that again and some of these other prod. it will take time. tom: we have to go -- jonathan: we have to go. there is an airline going into space. shannon cross. in american airlines, and the premarket come up 58% in early trading. ceo struggling -- shrugging their shoulders and the c-suite saying we do not know when demand returns. the stock is flying. tom: dare i ask if it is being moved off the couch? jonathan: if it is, we have to process that. that is the market. tom: what we do is we go to the

charts. as i said earlier i do not believe we are back to late february levels before the terrible march drop. who knows? lisa: here is the thing i find interesting. we are talking about apple crushing it on revenues. that is the reality. people are selling the reality. they are buying the hope. american airlines not seeing a big pickup in their summer booking. it is not like everyone is flying around anymore. people are pouring their money into hope. a note from jetblue's fourth quarter and i found this compelling. they increase the price of fares , lowering the prices to lure more people. we will see more of this. they have to plug that gap. jonathan: i have some jetblue points for you if you want them. where would you like to fly? tom: your points are unbelievable.

[laughter] jonathan: i cannot do anything with my undervalued points. andrew sheets is coming up. tom keene causing trouble for another hour on this program. american airlines up 53% in early trading. this is bloomberg. ♪

>> there is clearly a bit of -- >> it is a fine line between stimulus optimism and pessimism. >> the institutional players know what they are doing here. it is a retail investors that could end up getting hurt. >> we have a massive wealth rebalancing going on in the world. >> i think now people are looking for something that doesn't really exist. >> next year when things start to look more normal, then you will have the hammer come down on some of those companies.

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