>> 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. announcer: this is bloomberg

surveillance, with tom keene, jonathan ferro, and lisa abramowicz. tom: thank you for being with us on radio, television, and your gamestop stores, the story of the moment. but many, many other stories around challenging pandemic news, also companies adapting and adjusting. jon, let's stop it on gamestop right now. it is elegant, churning intraday, and let's look at the reality. might i suggest a celebration of airlines and recovery. jon: american airlines, look at premarket action with american airlines this morning. you wonder if that is the name of the day to replace what we saw yesterday. amc and gamestop as well. we talked a lot in the last hour about retail and pushback against the immense snobbery in the conversation at the moment.

not all retail is equal. i know people have reached out this morning about this topic at the moment. you have institutional players not all created equal. you have retail players not all created equal. the people actively engaging this market on the retail side right now -- many of them know what they are doing. the people that are passively allocated to this market at the moment -- and that is what people have written in about the situation this morning -- gamestop's number two, granted just 0.75%, but the number two waiting in the russell 2000. if you get people on the program allocating small caps about the rotation and the -- maybe it has gone into your pension fund. the number two holding in the russell right now is gamestop, which is a battle between institutional money and those looking to squeeze those shorts. tom: i also put out there is a second or third tranche, a retail that gets in that is less

sophisticated than the first try that gets in. -- the first tranche that gets in. the statement that retail is dumb, i flat-out disagree with that. there are a lot of smart people out there, and i am sure a lot of them are buying cottages in capri. short interest on american airlines -- substantial. not gamestop, but lisa abramowicz, 25 .5% on american airlines. that was a bet against the airlines. lisa: which is part of the reason people are tripping the 74% shares we have seen premarket after american airlines reported earnings. they were not that great, it is just that people are saying could this be the next gme? could this be the next gamestop? this is what reddit is hinting at as we look at the shares increase. i do want to say, picking up on jon's point, there is a real conundrum for regulators. he was talking earlier about senator warren and her comments. how do you protect the little

guy if the little guy is winning? right now the little guy is winning versus the big guy. you have the big hedge funds imploding and you have smaller retail investors that are cashing in. as the sc -- at the sec, how do you go to your point and say those follow-on traders, the people getting in after, how do you protect them if the little guy is doing just fine? tom: very important folks -- very important, folks. it is incredibly important to understand that on a given single way trade, in this case long gamestop -- actually the company was amalgamated ferro. you could have percent or 8% or 7% of the game, and everybody else loses money on the way. andrew sheets studied this at brown university. we are going to get right to him. andrew sheets, let's open up -- i don't want to get you in

trouble with mr. gorman -- you are good at this mathematics. your thoughts on this moment as the hedge funds get clobbered. andrew: i think it is important to separate that there are a few overlapping storylines in this market. there is a storyline around the strength of the recovery and will there be issues or delays with the rollout of vaccine, and i think there is a separate discussion now around the conversation of positioning, which has been a discussion for some time. this has been a very unequal market for years really, with very uneven valuations across sectors, cross styles, and very uneven positioning of around active investors to take an -- to take advantage of that. it is important to separate those things out, and in my view the macroeconomic picture still looks good. we are still constructive on the growth backdrop, and that makes us think this is a more modest adjustment rather than some larger challenge for the market.

jon: one of the conversations that you and i have had for the best part of the decade, the need for change. we see the stories that are driving those moves and we draw a line back to the fundamentals. particularly i think back to late august, early september, that maybe it is just this explosion in short dated call options and it is the tail wagging the dog and we all sit around trying to come up with these given moves in markets because that is what we have done for decades. but i wonder whether we need to change our approach in the way we consider what is happening around us in the way we talk about the price action. andrew: i think that is a very good point. this is a case where more than one thing can be true. it can be true that you are seeing an unusually large amount of retail investor activity, of call options activity, that you are seeing an unusual amount of

liquidity going into the markets, and yet viewed from other lenses, the market the way it has been behaving for some time in a rational, fundamental way. my favorite example is over the last decade the market that has performed the best by far has been the s&p 500, which is had the best earnings growth by far, of the international markets. it is nothing case that the s&p is only up because rates are low or the fed is doing q easy. the fed has had significant earnings growth compared to those major markets. the things can be true. you can have shifts in market behavior, you can have changing patterns of behavior, but i think overall those broader fundamental trends remain intact and remain important. lisa: i love that you talked about the different narratives going at the same time. it is a difficult market to sum up in one word.

we are seeing this on a significant stock basis as well as a consensus view perspective as well. coming into the year, the weaker dollar call was very much consensus. the higher rate call was very much consensus. both of those have been turned on their heads the first few weeks of 2021. how important is it to look at the concentration of positioning and move against that in order to avoid such violent repositioning going forward? andrew: i think this is a really important point. i think it is a theme that varies across markets. he find there are some views where in the consensus we, like a lot of people, think interest rates in the u.s. go higher, there are some areas where i think we are out of the consensus or think differently. we are not in that weak dollar camp. we think that the equally weighted s&p 500 will outperform the s&p 500, i.e. you will see a broadening of the market and underperformance of some of those larger weighted stocks, as

often happens coming out of recession. i think if you look at some of the recent price action, i think this is an interesting thing -- an interesting or important way to diagnose what is going on is what is leading the market, the most widely held stocks, or is it a more economically sensitive one? tom: where all students on the mop up books and i think of stanley fischer's book in 1998. andrew sheets, in the derivative space, whether the notional or small amount of derivatives issue traded, however you want to phrase it, what are the shadows out there? for a guy like you, what are the unknowns were the mysteries of derivative space right now? andrew: so i think this is quite fascinating, actually, because a week ago or two weeks ago when things seem much calmer, the equity options market was still expecting quite a bit of volatility at the overall index level and was quite worried

about a larger drawdown, that skew was historically very steep, so i don't think this is a case where you could say the market was completely blindsided. there was an elevated amount of uncertainty expected by the options market, and then what we saw yesterday was an even larger adjustment. you had a much larger move in the vix then you did versus credit or other asset classes. i think that also speaks to the positioning nature of it, that this has the hallmarks of a far shock or a positioning shock than a real economic shift in the e.u. jon: andrew sheets, good to catch up, sir. 2021 will be a year of recovery. american airlines with stock up this morning, premarket, up about 57% now. and little bit calmer premarket on american airlines.

tom: it is a moonshot, and i don't want to get technical, but this is why bloomberg is so good. on a one minute basis or a five minute basis, sort of non-granular. jon, it does not look like him stop. it is one massive short cover. that is all there is to it. jon: it is a squeeze. lisa: the question is at what point with this financially be challenged? will there be a moment where we are moved from this, or is it something that can be perpetuated in an era of monetary policy. jay powell might disagree, but most people wouldn't. tom: of the short cover basically says they are getting out. the shorts are saying forget about it, we are in your correct phase, squeezed, where the lungs are pushing the shorts out. on american airlines, i just see the shorts getting out. jon: chairman powell yesterday i think give a green light for everything to carry on as is. lisa: which is what he wanted.

tom: mckee was rude. jon: well, when is he polite? coming up, a professor from georgetown university. from new york, 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 fed chair jerome powell. fed policymakers left their benchmark rate unchanged near zero, and powell reported it would take some time for the fed to reach the -- for dialing back its bond buying program. in a span of two weeks, states in the u.s. have seen the number of coronavirus cases go down by an average of 43%. that outstripped the decline in other regions. improvements led governor newsom of california to ease distancing

measures earlier this week. that could lay the groundwork for infections despite back up again. china's president xi jinping will signal that beijing will tighten control over hong kong. it is said that it must be governed by what he calls patriots. she told carrie lam that having loyal leaders was the only way to ensure hong kong stability. her term expires next year. shares of apple are down premarket. executive came out with a cautious outlook overshadowing quarterly revenues that topped $100 billion for the first time. apple says that sales growth from air pods and other wearables will decelerate. they also forecast lower services growth. global news 24 hours a day, on air and at bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries, i am ritika gupta. this is bloomberg.

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>> hedge funds have a right to be short on gamestop, they

should know their worms more shortage than in the game market. you're getting strength only in gamestop. this will end in the next week or two, but it is going to be ugly and there will be more than just one or two hedge funds that find themselves in the dinger. jon: dennis gartman. alongside tom keene and lisa abramowicz, i am jonathan ferro. stocks to watch this morning up, up, and away. now just 40% on american airlines premarket. let's get to the story for the broader market fulton equity futures fall back on the s&p 500, down 11. unbelievable in the last couple of days -- apple, anyone? microsoft? euro-dollar, 1.21 in a bond market year. down to basis point. tom: 12 minutes away we have the labor report. jon: jobless claims just around

the corner. tom: i was at one of my fancy breakfast yesterday where i hold court with an entourage. i got a phone call from jon ferro, so i had to take it. he's screaming at me, "tom, forget about all these pundits, get us a rocket scientist." we got close. esther gartman -- mr. gartman. now james angel, he is at georgetown. jim angel, what is so important is that he is a rocket scientist, engineering out of caltech. his brilliance in mathematics at berkeley among others. we are thrilled that the finance professor could join us this morning. i have to go with you, jim, about whether you are participating in this. are you long or short gamestop? jim: i was long until yesterday, but when the stock went crazy i decided to go short just a little bit, although i see it is double that it has doubled

overnight. i have proven to myself once again i am a lousy trader. tom: when they throw you out of georgetown, you have a job appear. if that's the reality, are you worried that the people on the couches are dumb, or are they as sophisticated as you are? jim: i am sure they are more sophisticated than me, that's for sure. i mean, what we have here is confluence of debts. we have the mother of all short squeezes going on. at the same time, we have a retail heard, but i'm also hearing that hedge funds are jumping on board. as one hedge told me, when the herd moves through the gate, get on a cow. i think what we are seeing is this move is being amplified by other hedge funds that are jumping on board. they smell the blood in the water.

they can see that shorts are overexposed, and they are playing a game of musical chairs to ride it until it turns. lisa: professor angel, this goes to a broader issue here, which is a question of democratizing the market, allowing smaller traders to participate in a rally that has been unprecedented and phenomenal, equities is fueled by policies versus protecting the individual investor from institutional investors where they are manipulating the herd to do the bidding. how do you distinguish one from the other? jim: it is very hard. there is no easy way. personally, i think investors should have the right to invest in anything they want, so i am very leery about people wanting to protect people from themselves. lisa: you are leery of people protecting people from themselves. in other words, you think there is nothing wrong going on, and

you disagree with senator warren saying do your job because there is nothing for them to do. is that correct? jim: not completely. there are things that regulars should be doing. they should be investigating what is going on because we see stock prices clearly disconnected from reality. and who is driving this? now is the task of the newly consolidated audit trail. it is giving us -- see if it is giving us good data. also, what is causing the short squeeze? this is not the first time we have seen these kinds of planks in prices. it's face it, an overpriced stock is nobody's friend. when he market is over priced or an individual stock is overpriced, it is not coming back to its proper level. superhigh prices are not good for anybody. the sec should also be looking at imperfections in the market

that are driving the short squeeze. i think we need improvements in the -- i think we also need to upgrade to 204 and regulation. these are things that i think and be done to improve customer protection and smooth out some of the wrinkles leading to these price spikes. jon: james, terrifically smart. james angel of georgetown. i'm going through the next -- i'm going to get through the next one he minutes and stay out of trouble because we are drifting toward politics. what is it about people on the left that just assume everyone should be protected? what is that about? why is that the position of everybody on the left? i'm talking about senator warren here. do you hear that from the retail investors putting these trades on? i don't hear that from them. tom: it comes out of the depression. it comes out of 1933. when they had 33, they had to

fix 1934. at that time, it was economics, and it was to protect people from what was clear and epilation. we are a lot -- what was clear manipulation. we are a lot more -- your question is really well put in that you have got to have some pain out there. i would say as we heard from professor angel, you have got to have transparency, disability. when i look at the bloomberg terminal -- and i did not get to this with james angel -- when i look at the bloomberg terminal, jon, i see a healthy bid adrift like gamestop. jon: the legal issues are way over my head. these are just questions. one blog this morning, when wall street is taking advantage of the system it is called capitalism, but outside it it is called manipulation. lisa: there are many different

issues here. first the question is are there institutional investors, hedge funds that are trying to push the masses into one thing or another, and what is the consequence of what james angel was saying? the high stock prices eventually being a very bad thing, and those stocks suddenly having a very big proportion in the indexes, that all of the retirees and pensions have all -- it creates a problem, a systemic problem for markets. you raise a good point, this idea of protecting people from themselves, democratizing markets, and letting people play in this, is a very serious issue. i don't think it is just the left, it is a populist idea versus a more traditionalist approach. that is being challenged on its head. jon, the real question is, how do we get to the bottom of what the actual dynamic here is? jon: on the issue of politics, this is a left-wing issue. it comes with some snobbery, some highbrow stuff, and it is often made by left-wing politicians that have got so much money and then they talk

about the elite protecting the normal people, as if they have not made the millions of dollars themselves. you guys know who i am talking about. from new york this morning, good morning. this is bloomberg. ♪ wanna lose weight and be healthier? it's time for aerotrainer. a more effective total body fitness solution. (announcer) aerotrainer's ergodynamic design and four patented air chambers create maximum muscle activation for better results in less time. it allows for over 20 exercises. do the aerotrainer super crunch, push ups, aero squat. it inflates in 30 seconds. aerotrainer is tested to support over 500 pounds. lose weight, look great, and be healthy. go to aerotrainer.com. that's a-e-r-o trainer.com.

jon: from new york city, for our our audience worldwide, this is bloomberg surveillance. alongside tom keene and lisa abramowicz, i'm jon ferro. the unemployment, jobless claims, the numbers pour out in the united states of america. there is michael mckee. mike: we are live waiting for a lot of numbers this morning, and unfortunately the sexy ones are a little bit delayed because everybody has to go on the internet and get them. trades balance comes at 82.5 billion. the forecast was for 84.8 alien, so this suggests -- this is for december -- -- 84 point 8 billion, so this suggests -- this is for december -- when the numbers do cross when they get into this, that suggests maybe growth is a little bit stronger. we are also looking for jobless

claims, and jobless claims come out at 847,000 for the week of january 21. last week. basically what we are seeing here is a decline in the number of claims, by 67,000 from the previous week, which is good news. we are out of the holiday period, so we are seeing some they be more accurate -- all those concerns about double dipping and fraud and things like that. but the numbers come down just a little bit still, 847,000 is an awful lot of people who are still looking to find employment. the gdp number is out. at least we have the headline. it looks like the bea's server has crashed on the overall numbers. tom: they are all going short. mike: 4% for the fourth quarter, below the consensus estimate of 4.2%. for those of you who have been

paying attention, way below the atlanta fed's 7% production. 33 point 4% was the third quarter again as we rebound, so this 4% is a smaller rebound. we don't want to say it has recovered yet because we are still well below the numbers that we were anticipating in terms of -- that we would have been adding right now. tom: let me take time to get a question as we digest this. it is not the norm here at all. mike mckee, is the data now in a rebound, still noisy, where you basically don't trust it? you cannot get a trend, you cannot get a vector, or you begin to see a stability and many different data points where you can make a guesstimate of where we are heading? mike: you are not seeing enough stability, enough information yet. we're still trying to figure out what the economy is going to be doing. the latest estimates that we

have in terms of higher frequency data is that growth is about zero in this first quarter. so the real question is how quickly do week start to ramp up. getting a little more here, the increase in gdp, the 4% reflected increase in exports, nonresidential fixed income investments, business income is rising, consumer spending rising. i'm looking for numbers here. lisa: we will let you keep looking. mike: not finding it immediately yet. the pce index on a quarterly basis increased 1.7%. we don't care so much about that, but we are seeing the rebound start to come through. a sicko we are getting some more numbers, and one of them is personal consumption, each has come in below expectations. are we getting a sense from the data as we look at another round, another week of near a million people filing for unemployment, who these people are in terms of what jobs they hold, in terms of their income brackets?

mike: we know the people in the lower income brackets are the ones that have lost their jobs and lost income. there is probably a combination of things happening with the drop in personal consumption to 2.1% with a 41% gain in the third quarter. people are not just losing jobs and don't have money to spend, but also the people who do have money to spend are not spending it. they are more cautious, they are saving. whether that is because they are concerned about what is happening in the economy or they just don't want to take a chance on going out and spending is the open question. i think jay powell said it again yesterday, as he said many times and other has, -- and others have, it will really be the virus that determines, that when people feel safe in going out and spending, they will start to spend more. the problem is we are not at that point yet and we don't exacting know when we are going to get there. tom: michael mckee, thank you so much. we will digest the data and get more to you through the morning.

frederic mishkin came out of new york city, studied under stan fischer at m.i.t., and went on to a sterling applet -- sterling academic set at m.i.t. university. we are thrilled on our new policy that frederick michigan could join us this morning. i don't have a time for it as well. do you see the construction of possible policy in washington, or will it be gridlock as we have known? ric: i think they are going to get some things done, but there will be issues of what the biden administration wants. what they definitely will do and quickly is to get funding for more vaccinations and testing and so forth. i agree with jay powell on this, which is, it is really all about covid. that is the deal, that as we get

covid under control quickly, the economy will come back and it can -- it could come back fairly strongly. the days that i can start traveling, i am out there. i want to spend some money. i would like to go out to restaurants. right now i am living the dream, and i want to live a much better dream. in terms of after covid, getting it under control. if we are going to get quick progress on that, we will become more -- where it will be more complicated -- i do think we are going to have some fiscal policy, some checks will get sent out, but there are other elements of that legislation, we will have to see. that is one of the key issues for the federal reserve and the economy. are the politics in washington going to be a problem? what is extraordinary is within two weeks of the pandemic being

declared, we had a $2 trillion bill from congress. there was not any -- it was not any less artisan there then is now. -- than it is now. the key issue now is going to be how quickly do we get the vaccine out? the biden administration says by the end of the summer we will have everybody vaccinated. there will be good news if it happens. how effective will the vaccine be against the variants? i think all of this is basically key to what is happening in the economy. it has dominated everything else, and i think that is why the fed is basically in a holding pattern. they are not going to tighten or deploy from the policy regimes they have put in place until it is under control. we don't have that yet. that is why they are taking the position they are in and why we are all waiting for hopefully better times, but we don't know. jon: you mentioned the speed,

the pace of the snapback, the recovery. what is it about the nature of the specific shop that detects -- that sets the pace in which we recover? ric: the unique thing about this recession is we have a sharp downturn in the economy, but this is a case of what we call a supply shock. the fact that basically problems in terms of production, certain types of goods in communities, the service type industry, a one-to-one contact -- the supply shock is driving demand. where people are not spending, it is not because of typing monetary policy or something else, it is because of the fact that the covid actually causes people not to be able to spend. so once you release that, once you get people back able to spend again, they have been

doing a lot of saving and they are doing a lot of spending and they will probably spend very strongly. the economy will bounce back fairly quickly. the problem is until people feel comfortable with traveling, getting on an airplane, they feel comfortable going inside a restaurant and so forth, this is going to be a key to what happens. i have just been vaccinated. once i get the second dose, i will be much more willing to go out and travel. when that happens to everybody, that will be -- it is unique because what is happening on the supply side is driving demand, which is a very unusual situation, almost unique to this recession because we really never had a pandemic recession before, at least in this era. lisa: congratulations on getting vaccinated. ric: absolutely. lisa: i look forward to that day. there is a question with people sitting at home looking for something to do -- they are

trading stocks, and we have been talking about that all morning. it is not just individuals, it is institutions playing around with all the money that has washed in. jay powell yesterday said if you look at what has really been driving asset prices, really in the last couple of months, it is not monetary policy. the connection between low interest rates and asset values is not what people think. is that true? ric: i think in general when you look at a long period of time, that is basically true. there is an issue that there could be interactions between expenditure policy and what people call rational exuberance, so there is always a concern about that. i actually think that people overdo their focus on the markets as driving things. global -- per se they are not the problem. it is when it involves the credit markets.

in terms of the last global financial crisis, it was not the stock market, not the defective change in asset prices per se, it is the fact that when that happened, it really affected credit markets, causing them to seize up. that is not where we are right now. as people focus on the market -- and people can lose money, do stupid things. pricing things like gamestop and so forth. but that -- we have rarely had a major affected economy unless there are interactive credit markets. tom: i don't want to go all sandy grossman and joe stiglitz on you, but i want to talk about the information out there. do we have too much information visible now, or are we still drowning out in the equity markets and in all of our long, short, and all the silliness? or is it still information we

cannot see? are we drowning in visible information from all the trading volume? ric: there is an issue that the nature of markets, sometimes you can go a little bit crazy. that is just a history of financial markets. charlie kenda brooke was one of my professors. quite a character. in his book, this is what happens. people get sometimes a little rusty. that is one of the reasons why you want central banks to be there, to make sure that -- the central banks can come in to stabilize the situation if bad things happen. this is what the fed has been able to do very successfully, extremely successful in this covid crisis. one of the things that people don't realize how lucky we are, that covid did not occur 15

years ago before the last financial crisis. it took 18 months for the fed to figure out what to do. in this case it did in two weeks. that is important in terms of the economy doing much better than it otherwise would have. tom: this is so important. i want to move from kindleberger to hyman minsky. would you suggest that the distortions in derivatives, and calls, inputs, in the long-short hedge fund battle could be something our central bank will have to focus on on the road? ric: again, i think the issue is what hyman minsky was talking about with his credit cycle. that is really what we have to worry about. big moves in credit that crash. that is where we get into real trouble. other bubbles typically are not as important. they do create some losses, but think of it as the following, that during the precursor to the

global financial crisis, they basically lost about 500 billion in the market that triggered the whole thing. if the stock market moves 1%, or just a couple of percentage points, that is way more than 500 billion dollars. so the stark market -- the stock market moves all the time and it does not create these kinds of problems fulsome it is bubbles in the credit market that we have to worry about, not bubbles in asset markets per se, although sometimes they do occur at the same time, and that is when we get into real trouble. that is where i think i am less concerned now than i was for example during the global financial crisis, or the bubble really spread very much into credit markets, and that is where we are in deep trouble. jon: we will have to continue this conversation another time. frederic mishkin of kumble university, thank you.

you'll still 1.02% on the 10-year. tom: i went back nominal gdp at 6%, a pretty good animal spirit. let's remember, gyro and -- jon, the recovery as professor mishkin mentioned. jon: they are still way too high. lisa: the economy has been devastated. what frederic mishkin was saying about credit markets -- if you get a bigger than expected pop in inflation, will that make people reassess the bubble iciousness of the markets? this is the conundrum to jay powell's point. if interest rates are a problem, they would be a problem. i think most of wall street really will disagree.

tom: we had this week our quota of abramowitz gloom. jon: i'm watching the clock, don't worry about that. [lisa laughs] jon: we are going to get you to do a 10 minute monologue. this is bloomberg. ♪ ritika: jerome powell says we are a long way from a full recovery. he pledged to keep the central bank's monetary spigots wide open to help the economy hurt by the pandemic. he brushed aside concerns that the super easy stocks will lead to a stockmarket bubble, and to high inflation. president biden will not make it easy for americans -- will make it easier for americans to buy insurance, opening the obamacare

marketplace with an executive order today. a special enrollment period will begin february 15, helping people who lost their insurance when they lost their jobs. the republican party not automatically back donald trump in the 2024 presidential race. the chairwoman of the republican national committee, trump realist ronna mcdaniel, tells the associated press the party has to stay neutral during a primary battle. she said what republicans want now is to win back control of congress in 2022. british prime minister boris johnson has tried to quell support for another independent vote in scotland. johnson stressed the banking his government has given during the coronavirus pandemic. the prime minister visit there today. global news 24 hours a day, on air and at bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries, i am ritika gupta. this is bloomberg. ♪

>> we have our forecast out. growth is about 4%. but look, there is dispersion around that. the dispersion around that is significant. you could see significantly higher growth if everything goes smoothly in terms of global distribution of vaccines, you can see less than half of that. tom: carmen reinhart, incredibly important. my essay this summer i the right hearts this summer, she drives forward the conversation, an

important part of our year ahead. right now i want to tell you how the sausage is made here. when jonathan ferro leaves, lisa and i go, ok, let's talk about what we care about, and that is what we are going to do right now on bloomberg radio and bloomberg television worldwide. was it danielle -- a fancy french restaurant. left that and do what you do, which is redefine cuisine on the island have manhattan. that would be in the area of korean food, hugely acclaimed, no other way to put that. we are thrilled that -- what do you need from the mayor, from the government, from washington, from the governor? what do you need right now? >> to be honest, we need all the help we can get. most of the restaurants, we are far behind in rent, and i think that is the most critical. we don't have the income where

the revenue to meet the rent that we promised our landlords to pay, 5, 6, 7, 8 years ago before the pandemic, when the revenue was 90%. the drop was 60% to 80% in most restaurants, and basically it is not enough to pay our staff. it is deftly not enough to pay our utilities and rent. we are just hanging on because the law isn't allowing landlords to kick us out of our restaurants. when that law disappears, i think most of us are gone. and i really do mean most of us are gone. lisa: so what does the new york city restaurant scene look like post pandemic should that happen? hooni: i would think the big restaurants, the chain restaurants, the hedge fund

backed restaurants, they are still ok. but that is only 5% of the restaurants in new york city, about. most of the restaurants and most of the restaurant tours -- most of the restaurant tours that i know, we are the ones that are in trouble. we are the ones who our main priority, number one, is to pay our staff, and then it was to pay whatever, and then it was to pay -- we are all struggling to just even pay our staff week by week. that is not -- that is including not paying rent. so it is not looking good. lisa: there is a question about how much the pandemic has been a transformative moment. it has been nationally devastating, as you know, for the restaurant industry, but it has also raised questions about how things look afterwards, whether it is home delivery kits, whether it is meals to go. what are you seeing and what are

you doing now that will have a long-lasting footprint on how we think about restaurants going forward? hooni: i think many chefs and restauranteurs were resourceful. i myself have many restaurants. one started to do meal kits and deliver ourselves. the other restaurant, we are doing the traditional method of doing outdoor dining and delivering food via the services. i have no idea where this is going to lead, because ultimately the meal service, the meal kit -- it is a band-aid. it is good enough to meet right now, but that is not -- for a restaurant, we cannot survive. tom: i want you to answer in the struggle that you are in.

which lisa and i observe and our viewers have observed nationwide -- restaurants are closed, as a general statement. do you believe you can run them open now with safety for all involved? hooni: you know, new york city several month ago allowed indoor dining for about 25%. for me, i asked my staff, would you feel safe? i know they need the money, so i left it up to them. my staff said no, so we didn't open up any doors. if my staff doesn't feel safe, i don't think that people at the diners feel safe. tom: i don't mean to interrupt but we are running out of time and this is so important. what do you need from president biden right now to get to february? hooni: i need him to make sure the vaccines are readily available, and week by week it

becomes more available because it feels like the opposite right now. three weeks ago when people were optimistic about getting the vaccine, now especially in new york, nowhere can be get the vaccine. it is for everybody and anybody. so we need that vaccine soon, now. and at least that optimism will soon be able to get the vaccine. tom: thank you so much. legendary in korean cuisine on the island of manhattan. i'm sorry, lisa, that is our most important interview of the day. lisa: it really highlights the concern of what we are seeing everywhere, just the shuttered stores, the feeling of the world on pause come after it has been on pause for a year. people start getting exacerbated -- exasperated. tom: and who is the guy with the foreign accent>

jonathan ferro. other nations are doing a lot better job of it come and there is the microcosm right there. lisa: it just highlights away from the game, the gambling part we have been talking about all morning. there is an economy very much waiting for these vaccinations, and it is not just when it comes to restaurants, but also with kids. i know we both experienced this, this malaise washing over all the schoolkids that are not able to socialize in any real way. it is a very, very real situation come with depression and a whole host of other problems, people being left hind . the question is, how quickly can we unroll some sort of vaccination schedule to release these kids and let them go to school? tom: there is a moment on society, and that report, challenging again to say the least. we have a lift on the tape off the gloom from an hour ago, futures up 19, dow futures up 2.06. yields fractionally higher by

two basis points. that's not a bad idea. and for gamestop, for those of you following, off of 500 now, sitting at 400. an important conversation, the chairman and chief executive of dow chemical coming up. this is bloomberg. good morning. ♪

jonathan: from new york city,

good morning. the countdown starts right now, 30 minutes until the opening bell. we are up 6/10 of 1%. retail investors are throwing their weight around. >> retail investors. >> retail trading. >> this looks like pockets of frothiness. >> it's in the options market. >> retail investors have used blogs to kill a ridiculous short position. >> short squeeze. >> blackberry and gamestop. >> markets are performing as markets do. >> there will be regulators scratching their heads. >> regulators, when they act, they react. >> imf a there could be somebody holding the bag. >>