francine: server spikes, retail investors swarm into their biggest target yet. astrazeneca ups the vaccine deliveries to the e.u. as they try to give the rollout a boost. angela merkel holds crisis talks. president biden will meet with republican senators proposing a $600 billion stimulus plan as debate over the size of the relief package continues. good morning. happy monday. i'm francine lacqua in london. tom, i know we'll talk about silver. i was uneasy about making it to what'ss happening -- what's happening in gamestop for a number of reason. it's a very different scenario, especially with money managers being net long on silver. is not as contained as gamestop.

tom: it's a very different market. i would say 2000. i don't want to say too much on that. i'm more interested in less the tick of whatever's shorting at the moment, but the market, the clearinghouse, and the regulatory response. i'm more interested in how jp morgan adapts to the given price moves. francine: i think you're right, but u.s. need to understand whether it could touch wti. there's huge market repercussions, but less today, and whether it could happen in your. the rules -- in europe. the rules are different. >> as you were saying, silver has taken so -- center stage.

it sent the mental stage over debate of reddit taking on bigger targets. a weekend buying bridge -- engine overwhelmed -- binge overwhelmed senators. president biden meets with republican senators. they're calling for $600 billion of spending, less than a third of what the president was asking for. in myanmar, a big setback for the country to democracy. the country detained the leader, voided the election victory, and declared state of emergency for a year. the army chief said he took the action in response to voter fraud. he said they will hold a free and fair election after the emergency is over. astrazeneca will deliver 5 million additional doses to the

european union in the first quarter. dexter doses were given a total of 40 million -- the extra doses were given a full test a total of 40 million doses -- a total of 40 million doses. global news, 24 hours a day on air and on bloomberg quicktake, powered by more than 2,700 journalists and analysts in more than 120 countries. b this is bloomberg. tom? tom: let me do a regular data check ticket monday started, futures up, down over the 30,000 level. the vix does what it's a supposed to do, a fine statistic. the yield space, a mixed story, but yields set a little bit higher here, ism coming up at 10:00, will be an important tone setter. we're at january, dollar stronger. i'll have francine explain

sterling. francine: the pound is rising on expectations the u.k. will confirm eligible care homes have been offered a vaccine. it just seems the story has changed from the number of deaths to how quickly the u.k. is being able to administer these vaccine doses that we seem to have plenty for, as well -- plentiful, as well. we're less concerned about volatile retail training -- trading. sticking with silver, retail investors feeling the -- investors are looking to take on bigger bets. marty schenker, thank you for waking up on a monday morning. the concern i have is that you can link it because you have a lot of retail investors. but it's a different market when you look at the scope for short

squeeze, less obvious than gamestop and other stocks we're looking at last week. marty: very perplexing and reflects the chaotic atmosphere under which these retail investors are operating. you know, many of them unsophisticated and novices, basically, and who don't truly understand the nature of the markets in which they're investing. francine: how does it change? does it change regulation? if you look at the fairness, you can argue there are hedge funds doing these shorts in the past that are not as fair. so, give the retailers a chance to do the same. marty: this is the basic conflict, isn't it, the notion it's the little guys versus the institutional players? but in terms of regulation, the regulations are designed to perhaps give more access and democratizing the markets. but regulation moves

extraordinary slowly in washington. and even if the sec were to do something about this, it would take not days, but weeks, months, and as far as legislation goes, it could take even years. tom: marty, good morning to you. good morning -- monday morning, and i hope that state on gamestop worked out for you. joe weisenthal i'm sure would give -- get up early. he only gets up at 10:00 a.m. or something. francine: he starts tweeting at 4:00 a.m. tom: the heart of the matter is robinhood is robinhood. with silver, you're playing around with very, very experienced, entrenched entities, aren't you? marty: you are indeed, and one of them including citadel, which is reported to be one of the top

holders of the contracts that underlie the silver price. and there are very different mechanics to the silver etf than there are for basically gamestop and other securities. and the end of the line, taking possession of this physical commodity may be in-store, as well, so it's a very different market. the institutions are net long. meaning they hold. they're not shorting the metal. how this all ends is likely to be badly for the retail investors. tom: it'll likely end badly for them, and is likely short-term. by the way, i thought bloomberg's reporting was really smart. was there any indication of people walking away from the short squeeze? i don't see it. marty: we don't see any indication of that so far. like everyone else, we're

watching the numbers and making determinations based on the price movements. francine: marty, how are hedge funds viewed with what happened last week? does every major hedge fund now have an algorithm tracking reddit? marty: i don't know if everyone does. but if they don't, they may have to get one pretty quickly. the hedge funds -- this is obviously an unprecedented market phenomenon -- they were caught unawares by the short squeeze in gamestop and others. they took significant losses. and, you know, the point is we're having discussions on the air about this this morning and nobody really knows where this is going over this is going to end. francine: where does this end? is there a worry? markets, not even chatters, but what happens if they start going after oil? marty: yeah, i mean, everybody

is -- a lot of market experts saying this is just a tiny portion of the asset markets around the world, all the different asset classes is just a minuscule amount of money. but stranger things have happened in the marketplace where unintended consequences can go into different asset classes. so, it's not clear where this is going to end. tom: marty, i guess to start the week off here, it is the cash call, -53% return for a hedge fund. do you assume there's other hedge funds that will enjoy that drawdown? marty: there's no question there are other hedge funds -- hedge funds suffering distress. we have not picked up specific names, but it just stands to reason that anyone who had short bets -- and they all -- many of

them did because that's how you hedge your long bets -- are suffering some lossest signint. francine: thank you so much, marty schenker joining us. coming up next, we speak with jeff foley. will ask the question whether anything like this has ever happened in the currency markets. this is bloomberg. ♪ want to save hundreds on your wireless bill? with xfinity mobile you can. how about saving hundreds on the new samsung galaxy s21 ultra 5g? you can do that too. all on the most reliable network. sure thing! and with fast nationwide 5g included at no extra cost. we've got you covered. so join the carrier rated #1 in customer satisfaction. and get a new samsung galaxy starting at $17 a month. learn more at xfinitymobile.com or visit your local xfinity store today.

>> the price is just wild. >> gamestop, mc, blackberry, and the like. >> it's really a casino atmosphere there. >> sounds a lot like market

manipulation. >> none of this is questionable in my mind. >> and probably needs to be regulated. >> will be don't need is for congress to come in and save everybody. >> this is from the financial stability perspective. >> this is going to end badly. >> everyone talking about rational or irrational exuberance. >> rationality is going to be irrationality. >> not something that threatens to bring down the market. >> is probably going to end in tears for hedge funds. francine: some bloomberg investors waiting in on the feud -- weighing in on the feud. jane, we have a couple levels we want to discuss shortly, including pounds. first of all, when you look at what happened with gamestop, possibly touching silver, could anything like this happen for a currency? jane: i would say it's impossible, in the dollar.

you've got to look at the foreign-exchange market. it's about $6.6 trillion every single day. a lot of that is in the big dollar crosses, euro-dollar, and then dollar-yen and cable. it's unlikely you can get retail investors making themselves known in the currency panel like that. whether or not that's the same case in the emerging markets, or perhaps the new zealand dollar, it's unlikely, but perhaps a little bit more probable. but a daily turnover of fx is so big, this would be a completely different market for the regional investor. francine: it harkens back to when george soros wrote back to england many decades ago. jane, is there any way of tracking some of the movers? anybody, including fx strategy, need to now attract with retail investors? jane: i think it's really interesting.

we've got to put this in perspective why this is more interesting now this year, this month, than it is previously. there's a couple of things here, and the first is the huge savings ratio that we've seen in developed countries because of the coronavirus, because of payments, because people can't go back and save money. we've seen a lot of people furloughed or underemployed, so people have time on their hands. we have access to technology that wasn't there 20 years ago. that's continued to improve. there's a number of reasons why we're seeing this now. whether or not we see the same sort of trends in a years time, when ratios are down, when people can spend their money remains to be seen. but i do think from here on in, perhaps the retail investor is going to be more enforced to be reckoned with than it was before. what we've seen is an acceleration of a trend that was already building. tom: one of the great

distinctions here, and i looked back at the hunt brothers over the weekend like a lot of other people did, is where interest rates are. that dovetails into your foreign-exchange strategy, as well. could this happen without a low real rate, without low nominal rates? could this happen in a normal, non-central bank adjusted rate market? jane: i think it's probably less likely. it could happen because people have the technology. they've got the platforms. access is easier. we've got this enormous savings, so people are -- they got this money to save. they're looking at putting it in normal means, relatively conservative or safe methods. and they're thinking there isn't any yield here. how else can i get some yield? in recent years, people have seen their stock markets, do very little but keep going

higher. and this is a function of what central banks are doing, leaning on the yield curve, keeping interest rates low. this is part of fueling what we've seen in recent weeks. tom: i'd ask about myanmar, but let's go to something more fungible, the chinese remedy -- renminbi. what is your call with new renminbi yuan strength? jane: we've seen disappointment in the debtor yesterday, but the market is of ashe -- there's been so much interest in pushing into chinese bonds, for instance, more liberalization of the market. if we look at the photo, what we've seen is yes, a big win for emerging markets. but china is seeing flows from investors that would have consider china of years ago. i think we are going to see more

strength with the renminbi this year. and perhaps we do need to see rebalancing of other major economies in terms of growth before we see that trend really slow down. francine: we weren't sure in the u.k., the government can't to anything, look at how may deaths there are, it's been in shambles, to being able to vaccinate people quickly enough and reaching some of the eligible care home residents. what does that mean for trajectory for the pound? jane: i think it has underpinned the views of the bulls. we saw sterling continue to flexor muscles, to show their faces. there's been setbacks. there was pmi data that set them back. but it's one of the best-performing currencies in the years of our. -- so far. and i think the vaccine rollout is part of that. also, the sterling and u.k.

economy performed badly in recent quarters. that is a function of the u.k. economy. you know services has hit more about social distancing than other sectors, and there is this view that because is sells so hard, it can rebound hard, as well. the bull's reflecting their muscles. it's a rocky road. we've got a couple quarters of disappointing data before we see growth. we've got scarring in the economy to contend with. it could be a rocky road, but certainly there's number of sterling bulls right now. tom: i'm hearing arrange. staggered one month, basically what we observed last year. i'm hearing a range been. is that correct? jane: i think it's two steps forward, one step back, same for euro-dollar. i think we can correct that, but go higher as well.

choppy, but within much more tighter range than what we've seen last year or so. tom: jane foley, thank you so much, greatly appreciated, getting started, linking everything with the gyrations in the market, gamestop, silver takes an ebb off. he is truly our greatest thinker on systems analysis, on systems linkages. michael is a laureate with general electric as a senior advisor. coming up, michael on the systems analysis, the stumbles of moving from vaccination to vaccine. this is bloomberg. good morning. ♪ so you're a small business, or a big one. you were thriving, but then... oh. ah. okay. plan, pivot.

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>> this is bloomberg surveillance. the ceo's of exxon mobil and chevron reportedly discuss a possible merger last year according to the dow jones. the two largest oil company spoke as the coronavirus was hurting oil and gas demands. it was described as a primary and are not ongoing. it would require authorities from around the world. exxon and chevron declined to comment. ryanair says it expects to lose a resurgence in coronavirus cases in europe has led to

governments to impose new restrictions on travel. the continent's biggest airlines hope for a recovery in demand on the vaccinations. a new ceo for ari is not being limited -- for for right is not being -- for ferrari is not being limited to the auto industry. the ceo says it may shed light on the search tomorrow. that's when he'll unveil the results. that is a bloomberg business flash. tom: thanks so much, early trading, gamestop with a bit, silver to 30, ruling over at 29 level right now. futures on the general market bid nicely, dow futures up. i'm going to call it modestly correlated to a better risk on seal. it gets my attention. stronger year, weaker yen. francine? francine: a couple of things.

when you look at china taking steps to ease the cash crunch, it's giving a lift to stocks, silver crossing $30, now back at $29 and something. the u.k. will confirm all residents at residential care homes have been offered a vaccine, better than expected in terms of the rollout, but also in terms of the doses they have access to. we're looking at silver, the vix not doing much today. we look at hedge funds, how they deal with this ever volatility. coming up, the venture's partner will talk about gamestop and algorithms, tracking some of the trotter on -- chatter on reddit, as well. this is bloomberg. ♪

ritika: this is bloomberg surveillance. i am ritika gupta with the

"first word news." a group of 10 republicans will present their proposal. to president biden today. republicans mostly rejected the president's $1.9 trillion proposal. still, the president has said he hopes both sides can negotiate a bipartisan deal. former president trump is named two trial lawyers to represent him at his upcoming impeachment trial. he parted ways with his previous defense team over the weekend. according to reports, they left after trump wanted to argue the election had been stolen from him by massive fraud. the foreign ministry says both the u.s. must reverse a series of key sanctions that allow -- both the u.s. and iran are calling on each other to restore the international agreement. in russia, more than 4000 people

were arrested in a second straight week of anti-putin protests. a russian court is preparing to have -- hand the opposition leader a three and a half year prison term. global news, 24 hours a day, on air and on quicktake, powered by over 2700 journalists and analysts in more than 120 countries. i'm ritika gupta. this is bloomberg. tom: the vix comes in nicely. what we are trying to do, adjusting off of what we saw last week, bring you voices of experience on the different parts of this great investment debate on the short squeeze. hussein kanji is with hochstein ventures, partners a lot with microsoft -- is with hoxton ventures, partners a lot with microsoft. hussein, thank you so much for joining. a lot of chit chat over the

future of robinhood. doug kass of sea breeze talking about how robinhood would consolidate. is that just a given? hussein: i think it has aims to be an independently owned company and it is going down the path of an ipo at some point. i don't think it will be part of somebody else's portfolio is much as it can help it. they are certainly in a cash squeeze because of last week but they were able to raise the money in short order. tom: tell me the thinking of the people that gave them a report at just under $1 billion? is it to protect their interest? is it to take a greater equity interest where it is opportunistic for them? what is that emotion? hussein: it is their financial backers, to begin with. these are funders who want to see it become a large valuable entity. it had a cash squeeze because of

a change in listing rules where you needed to put up collateral. it is a sign that people have a lot of faith that it will become its own big company. francine: hussein, what will robinhood become in three years? hussein: i think it will become the big brokerage firm for the millennial population. it has its eyes on being the next generation for up-and-coming investors. francine: are there any mistakes this week that could give way to another platform, or do they have first mover advantage that won't go away? hussein: i think they have first mover advantage. we learned the communication strategy was very lackluster, when everything was happening. they did not control the narrative. there were a lot of accusations as to what was going on. there was a thread on reddit saying people were behind the scenes manipulate and robinhood,

going against everything. i think the ceo did a bad job in terms of owning the message, but most of the stuff was out of robinhood's hands. people were buying long dated call options, they had to go off and fulfill collateral requirements. tom: let's pick up on these delicate statements you make, the observation that the gentleman from the hood did a pretty bad job of messaging. are his principles setting robinhood up for a management change, to go ipo, or are they setting it up for a management change to find the greatest bidder to be the millennial broker? hussein: it is a good question. implied in the question, is there going to be a management change. i don't think there is, but you are seeing the immaturity of a

young tech company and the leadership of a young tennant company being able to -- a young tech company being able to own responsibility. yet again, you are finding a company that is more powerful than it ever intended to be, and it is on the back foot. you would imagine these companies should be able to grow up a lot faster. tom: hussein, it is monday. i'm going to step very carefully here. francine is london laughing at me. a delicate statement that you are making, what is the monday morning task of the backers of robinhood, and the sharks circling who would love to take out that franchise? hussein: i think the monday morning quarterbacking is does the company have the resources that it does and how do you prevent -- if there is another run like this, how do you

prevent the company from being in the crosshairs? there is probably a lot of pressure on the founder and ceo to take a leadership position and own the narrative. you already saw it on twitter. one of the executives or former executives from robinhood put up a large twitter stream, saying i wish the company kind of owned the messaging a little bit better and got ahead of the story instead of always reacting. francine: hussein, i'm trying to introduce tom to clubhouse. what will clubhouse become? is it kind of the new twitter? can it take over the narrative? hussein: what i am surprised by is how much of this story is being told on these channels, like clubhouse and how open people are. i woke up to the news that elon

joined clubhouse and had a conversation with the ceo of robinhood on it. it is a very closed network because you need an invitation, but it is a surprisingly open and transparent conversation. it is not that hard to get a token to be able to get onto the platform. it is like a next-generation cora, insiders having a very transparent conversation with each other. tom: hussein, do i look clubhouse ready? hussein: absolutely. tom: mi clubhouse ready, folks? francine: i just sent you an invitation. tom: i have scotch and a cigar. are you kidding me? francine: hussein, clubhouse, you basically drop -- how do you describe it? it is almost like some kind of podcast, live podcast and you listen into the conversation. tom: i'm doing that with my 13-year-old right now. hussein: it is like dropping

into a radio station, except you get the chance to speak. it is almost like a talkshow in some respects. everybody has a bit of a voice, and all the people are around the -- all the people around the table are mostly insiders in the industry. they are not having superficial conversations. you get to listen in, if you are in the club. francine: tom is so in the club. hussein, thank you, hussein kanji partner at hoxton ventures. coming up, we will talk about m&a and the way forward. this is bloomberg. ♪

francine: this is bloomberg surveillance. i am francine lacqua in london, tom keene in new york. a deal surge comes as soaring markets trigger bubble fears. special purpose acquisition company's are the driver behind a busier start for offerings. joining us now is philip drury, citigroup head of emea. is very worried that somebody companies are scrambling to ipo because valuations are insane into years from now, it all comes crashing down? philip: thanks for having me on, this morning. it is certainly true that things are very busy out of the gate. you mentioned ipo volumes, $25 billion of spac proceeds raised

in january, compared to 18 billion dollars raised throughout the course of 2020. we are seeing unprecedented levels of volume, it also a lot of demand and in this low interest rate environment, we continue to see irritation into equities and we think that -- continue to see -- ipo's open and close. the windows can be closed and we do see challenges to this recovery, as regards the vaccine deployment in the second half of the year, then we will see a slowdown in activity. for now, offerings are getting very well oversubscribed. francine: what are the fast-growing digital plays that make sense at the sort of

levels? philip: we have certainly seen significant activity from e-commerce. if we look at the ipo's we have had in the market recently, we probably saw -- also auto one, which is a german european secondary car business. certainly internet generation of growth that has seen a catalyst to business models through this period of covid. technology, content, software, that is where we have seen the drivers of activity in the recent weeks and months. tom: i know you have a record 14 days in a row of rubber chicken on the old ipo circuit.

you got a trophy for that. it is gone. today, we have a new transparency, a different transparency. are we getting the correct information on these investments, in particular on the spac's without the rubber chicken launch? philip: i think we have become a lot more efficient as it relates to marketing. this period of covid and the ability to use zoom, i think we will have long learners -- long-lasting effects when we come through covid. the ability to engage investors and educate investors, the ability to time -- the billeted to be time efficient for our cfos has certainly improved and we have become -- the information dissemination is still getting out there, but it is getting out there in different means. whether that be testing the

waters in the u.s., or investor education and cornerstone investing in emea. it allows for more accelerated marketing in the public domain. we believe the necessary education is "conveyed and the level of engagement with investors to make sound investment decisions. tom: do you see the next 60 months continuing the emea shift from fixed income to equity? philip: the under change in administrations, we have a change in views as it relates to interest rates. may be a level of pickup under the new u.s. administration. there is no doubt with this low interest rate environment that the search for pickup in yield and a rotation into equities,

certainly that is the case for the short and medium-term, whether that is the case in the long term remains to be seen. tom: thank you so much. the citigroup head of emea banking and capital, philip drury. yield higher, fractionally higher. right now, gold up the $12. we are watching silver. we are watching gamestop. francine has seven other names. we will continue to watch that story. ism, at 10:00 a.m. stay with us. this is bloomberg.

ritika: this is bloomberg surveillance. i am ritika gupta. the world's richest person rocked the bitcoin market. elon musk assent prices spiking

after saying quote, bitcoin is a good thing on the social media app, clubhouse. he wrote that he should have bought the cryptocurrency eight years ago. on friday, bitcoin jumped as much as 16% after musk changed his twitter profile to #bitcoin. -- fueled by demand for technology to support work at school and home. meanwhile, sales in the americas -- 20%. nintendo raised their annual forecast for a second time, continuing momentum for the switch console resulted in the best courtly earnings since 2008. -- in the best quarterly earnings since 2008. it is your bloomberg business flash. francine: silver taking center

stage in the -- with the retail investor surge sweeping through markets. it feels very different. how difficult is it to link silver to what happened with gamestop? >> we had a significant move. at one point today, we were up 7%. these are significant moves. it pales in comparison to what we saw in gamestop, which was up 1000% or more. it is a much more muted move and i think part of the problem is that retail investors are taking on a much bigger market, and they are taking on a commodity market and that is making it very hard to squeeze this market. .

they have a lot to prove. francine: i guess the market is so vast and different to stocks. eddie: i think it is a very different game. it is possible to squeeze the commodity market, it is possible to squeeze the silver market. but you would have to get demand to a level, not where you are triggering a short squeeze but you are triggering a physical squeeze. silver has been oversupplied for approaching a decade when the photograph industry collapsed. silver attracts the conspiracy theories. tom: i don't mean to interrupt in any way. we are thrilled to have you on

and it is not for bitcoin. it is simple, and you nail it. you just move onto the next thing. when does this end? if anybody had a believe that -- a belief that there is a short view and they're going to go against it, whatever technology, you just bounce from thing to thing don't you? eddie: and that is the problem for the riddick round -- for the reddit crowd. they have not unified around one stock. as they attract more people, there is this group that is growing exponentially, and you will get more disparate voices that will start to split the vote, and therefore split where the money is going. i think they are better focusing on single stocks and the ones that are shorted. the silver rally we have seen, i

midweek, i would be surprised if it is still moving. tom: so you're going to go up to midweek. that is what i was going to go for, a timeline of what you're reading of history is. you are using that coin back in the tule thing. your timeline -- you were using bitcoin back in the tule thing. eddie: etf's were saying what we can do is we are going to buy so much silver etf that we will prove that there is not enough metal to supply them. the problem with that theory is that the etf's don't have to fulfill the mandate by the end of the day. they said something like we aim to get no more than x amount of unallocated metal. the problem is by wednesday,

once you've got the truck, the silver supply line can very quickly ramp up and get metal from other sources to london. francine: eddie, at the same time, money managers have this net long position on silver and metal. does that not counter the narrative that we heard last week against wall street? eddie: it does. we talked about the managed money position. the bullion banks, they have a net short position in new york. that is what attracts the speculation around their being this naked short against the silver futures. but the problem is those same bullion banks have a net long position in london because they are sitting on physical stocks in london. it is two halves of one trade.

the short side is visible and people are extrapolating from the visible that there is a naked short bet against the metal, and there just isn't. tom: edward van der walt with us. eddie, thank you so much, on silver and bitcoin as well. -- this is a really important conversation. on the systems analysis, the process, the logistics of moving forward from a vaccine to the societal vaccination. michael spence, next. this is bloomberg. ♪

tom: this morning, the squeezer's of shorts find a silver lining but silver is not gamestop. pro tip, the street is generally long. how do you go along against people already long -- how do you go long against people already long? president biden will meet with the gop 10. senator collins spoke to the president. jerrod burstein says quote, -- the pandemic partition, covid one year on. good morning everyone. bloomberg surveillance on a monday. a busy week, jobs week in america. we will take a look at the january american economy, but all that pushed aside by the pandemic. vaccination, news in europe. francine, you and i are right in, we see a short squeeze and we see it. francine: there seems to be more

chatter saying what we are seeing in silver