♪ >> we have a social revolution going on between the haves and the have-nots. >> it is the retail investors that could end up getting hurt. >> it is probably going to end in tears for a lot of these retail investors. >> we are going to go higher in inflation over the next couple of months. there's very little we can do about it. >> the system is, from a financial stability perspective, still is robust. >> if you don't establish functioning wall street stability, it is disastrous for the economy. >> this is "bloomberg surveillance" with tom keene, jonathan ferro, and lisa abramowicz. jonathan: from a freezing new york city for our audience worldwide -- just take it,. it's cold -- just take it, tom. it's cold for all of us. this is "bloomberg surveillance ," live on bloomberg tv and radio. alongside tom keene and lisa abramowicz, i'm jonathan ferro. [laughter] 40 seconds in, futures up on

the s&p about 1%. we are onto silver. tom: on radio, this looks great. when it snows out, you where the boots -- you wear the boots. jonathan: tom has thigh-high leather boots with a zip on the side. [laughter] that's what he's worn in the snow. tom: those are boots that the farmer war in the movie "babe." the one about the pig from years ago. i thought joe weisenthal was great an hour ago. is silver not the same as gamestop? jonathan: no. tom: it's popping to $30. the basic idea, silver up. the street, including jeff currie, is long. gamestop stock is up in the

world hates it. jonathan: for me, the hangover of last week, not a single name. it is not a single commodity. it is about market democratization. it is incredibly ironic that the platforms that actually fueled this movement of market democratization last week have been accused of undermining it. that will be the hangover this week as well. that is what the regulators will want to look at. that is what politicians will be asking downing d.c.. what happened asking down in d.c. -- asking down in d.c. what happened last week? why does wall street have the advantage over everyone else. i'm sure it was the same for you and lisa, the amount of messages i had from senior individuals on wall street who agreed that the caricature of what was happening on the retail side was totally misplaced.

it wasn't as if we all hunkered down into one camp on wall street and one camp on retail. many agree there is work to be done. tom: we've also got to remember, it is a huge week. i know lisa is going to beat on that in a moment. there's a whole background of other information besides the idea of gamestop and the rest of it. jonathan: economic data friday. lisa, payrolls coming up. lisa: we have a drumbeat to that. if we weren't talking about reddit and comes thigh-high boots, we would be talking -- and tom's thigh-high boots, we would be talking about the economy, we would be talking about the virus. ism manufacturing data following some stronger-than-expected data out of europe, as well as china. how much will this push the effort to get some sort of stimulus passed in washington, d.c.?

10:00 a.m., german chancellor angela merkel is giving a briefing on covid vaccinations. we've known europe has struggled to get up to speed in comparison to the united kingdom, as well as the u.s.. this is crucial. we aren't talking enough about this. the variations in the virus are speeding up. it is a race to get people vaccinated quickly enough to stave off the spread of this pandemic so that we can get to some other side. let me just explain five clock p.m., and then i will let you go off. [laughter] biden and harris are meeting with gop senators to discuss the stimulus package they have proposed. it does not include state and local aid. tom, take it away. tom: i don't know what the senate budget committee will think of that meeting. jon, i just want to give you a rave here. you are way out front on the importance of ism. i really don't care, but you are right, the ism matters. jonathan: the economic data

matters, and it is flying. the economic data on the labor market side does not look really good. we had a really soft print in december. we are coming in at around 50,000 for payroll reports in the u.k.. we have to do better. tom: there's no question about it. we sort of think it is going to change, don't we? lisa: we talk about the k-shaped economy, and we are going to hear a lot more about that today. my question is, what is the longer-term consequence of this k-shape? manufacturing is picking up at the same time that the prices of some of the commodities, silver, is picking up. how will this affect people facing a labor market that has been destroyed? jonathan: five minutes in, and i haven't gotten you the price action. let's do that. equity futures look like this, up 37 on the s&p 500.

a big weekly loss last week, but of a snapback this morning. fx back on deck in g10. euro-dollar, $1.2086, down about 0.4%. yields backup on the 10 year to 1.0757%. joining us now is mona mahajan, allianz global investors investment strategist. what can you possibly say about last week? mona: it's a great question on a monday morning. it was fascinating to watch. a $50 trillion u.s. stock market has created really a lot of attention, and i think we are living through history here. a few questions that come to mind as we process all of these views around stocks like game

stock, -- like gamestop, imc, what really drives the value of an asset? is it the fundamental value based on some sort of cash flow model or pe multiple, or is it really what owners are willing to pay for it? is this really any different? over time, how does this end? does gamestop come back down to its fundamental value, which, if you look at price targets -- or do we get some kind of regulation? it is something we have been thinking about as an industry and a firm. are we going to need a new set of analysts that just goes through message boards, social media? do we need ai and bots to help us with this to figure out where to invest next? all fascinating questions. tom: we go through ferro's

twitter feed just to see where he is. [laughter] have you changed anything at allianz? it is sort of a readjust off of what was written for 2021. is there a nuance in the tone? mona: generally speaking, beyond what's happening in the retail space, and certainly retail investors have become a bigger part of our equation, both has clients, but really as drivers of the market. we saw that not only this year, but really enforce last year. 2020, you could argue the regional money that really got in, closed that march low, and got up on the s&p and the nasdaq. that was fascinating to watch. but broadly speaking, our outlook for 2021 is driven by three factors. that is re-accelerating growth,

watching whether or not that does come to fruition in the second half of this year, a fed that continues to remain on the sideline, and we argue that will be the case in 2021, and of course, what happens with the biden adminstration stimulus and fiscal spending. interesting to see this week the $1.9 trillion met with the package by the republicans, perhaps meeting in the middle for $1.2 trillion or $1.3 trillion. as long as those factors are in place and we don't get any exhaustion shocks -- any exhaustion us shocks -- any exogenous shocks, we think this is well supported. lisa: do we think that reddit traders will not be the exogenous shocks to trade? mona: we have not seen signals that these traits will spark any systemic change. as a percent of total market cap

, very insignificant, probably less than 0.1% of market cap. we think while they could cause ripples in how the financial services space operates broadly, we don't think it will cause any major shock that would really put in the overall financial services system. i do think we are watching for shocks that are beyond just the reddit type traders, which include things you mentioned earlier. variants of the virus, the race between vaccines and the variants, and we are encouraged on that front not just in the u.s., but globally. jonathan: mona, great to catch up. mona mahajan, stay well. tom keene, a lot of de-grossing last week on the hedge fund side. tom: you've got to believe

there's other carnage out there, but at the same time, i wonder how many other hedge funds are on the others to be trade. they don't get the press. they don't get the media. but i don't have an opinion about the balance of alternative investments other than we get through this. where are we on gamestop? it's carnage. jonathan: we pushed back last week against the caricature of retail, and to some degree, we have to push back on the caricature of institutional investors as well. the hedge fund blowups are well documented. silverlake took the convertible debt over at amc and booked a very tidy profit last week. if there was a bailout of wall street last week, it was in credit, and fixed income. the numbers speak for themselves. tom: you move on it, and this is important. there's a timeline always to squeezes. they're supposed to end by

definition. they don't go on forever. do they go and find other targets? that is the interesting question. jonathan: equities up after last week's rout. futures up about 1% on the s&p 500. tom: dow futures up 136. jonathan: tom doesn't think it is cold in new york. tom: where i am from, this is a dusting. lisa: he's inside high boots. jonathan: seriously. in davos, he takes the bus everywhere. never walks. [laughter] this is bloomberg. ritika: with the first word news, i'm ritika gupta. silver has taken center stage in the retail investment frenzy. they sent the metal to a five-month high today, and that is fueling a debate over the power of reddit inspired investors to take assets even higher. in myanmar, a big step back for the country's transition to

democracy. the military has detained -- and declared a state of emergency very year. they say they took the action in response to voter fraud, and the military will hold a free and fair election after the emergency is over. and president biden meets today with 10 republican senators who have an alternative plan for coronavirus release, calling for $600 billion in spending, less than 1/3 of what the president wants. it is an opportunity for both sides to begin talks on a bipartisan deal. at the same time, democrats could pursue the biden proposal without republican support. the ceos of exxon mobil and chevron reportedly discuss a possible merger last year, according to dow jones. the two largest u.s. old companies -- u.s. oil companies spoke, described as a primary and are not ongoing. a merger would require an ok

from antitrust authorities around the world. exxon and chevron have to climbed to comment. -- have declined to comment. global news 24 hours a day, on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i'm ritika gupta. this is bloomberg. ♪

♪ >> he is absolutely willing to negotiate. glad to hear from this letter

that they are on board, but we need to learn a lot more about it. right now we are in it -- in a position where delay is the enemy of moving forward. jonathan: that was the council of economic visors member speaking on fox news sunday. good morning. alongside tom keene and lisa abramowicz, i'm jonathan ferro. here's the price action this monday morning. a snapback after the losses of last week. futures up 40, a little more than 1%. in fx, dollars stronger in g10. welcome back, lisa. what was the week like without the two of us? lisa: it was wonderful. [laughter] jonathan: did you see what someone said to lisa over the weekend? she's mental for putting up with us. [laughter] lisa: i lost a finger as a result of it. tom: we welcome all of you on radio and television worldwide. of course come the hud and soul this goes back to -- where did we meet, jon?

-- of course, the heart and soul of this goes back to -- where did we beat, jon? zurich? anyway, this is the heart and soul of "surveillance." the heart and soul of what we do is data, and it is surveillance, whether it is karen moskow on radio or ferro or lisa. the data check matters. let's listen to emily wilkins. emily: i see some numbers going up, i'm see other numbers going down, and i hope the index funds are doing extremely well. [laughter] jonathan: i feel slightly threatened by that. tom: audition from emily wilkins there. folks, this is what you get on radio and tv. this is what you get out of washington.

they have no clue what we do here. joining us now, the clueless in washington, emily wilkins after that sterling data check. emily, that was a disaster. we will take you to "surveillance" 101 to do it right next time. emily, the balance of power between the gop and the president, they want to go to reconciliation. the senator from vermont wants to go to reconciliation. this is just a tv photo event, isn't it? emily: yes and no. we seen from the white house that the danger is not too much economic stimulus, it is too little. so biden has continually said he once to work in a bipartisan fashion, that he think he can work with republicans. the white house has got to see this as a big test, but there is a lot of pressure from democratic leaders in congress to just go big on this one, to really deliver the aid to the american people and not worry so much about whether their republican colleagues are on

board with them. jonathan: that was the promise to the voters in georgia. do you think by pushing negotiations too far, they are letting those voters down? emily: potentially. that was a concern that george's new senators brought up in a call with colleagues last week. we got elected on the promise of these to thousand dollar checks. however, we are hearing reporting this morning from the white house that even some of biden's top advisers are questioning exactly what those should look like. remember, there are those concerns that some of these checks are going to individuals who are quite well-off, upper-middle-class nicking several hundred thousand dollars a year. the question is, are these truly going to the right places? tom: we saw it from the -- lisa: we saw it from the retail spending data last week. let's talk about state and local government funding. that is not included in the $600 billion package that the gop senators have proposed. what is the main obstacle here for state and local funding,

given the fact that new government data shows that state and local governments are the biggest drag on the economy right now in more than a decade due to cutbacks because of budget deficits? emily: when you talk to republicans, number one, it is simply the size of the stimulus package. they are worried that the larger the stimulus package, the more debt, the more deficit. the other thing you hear republicans continually bring up is that some of this funding is going to states that have large amount of debt, and the concern is that the funding might be used to pay off the debt or used for other things than to really invigorate the economy the way they had hoped for in this stimulus. lisa: where is the wiggle room here? where's the impact on a bipartisan basis? emily:emily: i think what we are all looking for today is the result of this meeting between president biden and those 10 republican senators who have

signed onto this bill and say we have a proposal here. is there some sort of wiggle room? are they going to be able to find an agreement? i think we will have a much better idea of what this looks like after that meeting. tom: run that data check again from miss wilkins. emily: i see some numbers going up. i see others numbers going down. i hope my and x funds are doing well -- my index funds are doing well. tom: killed it. jonathan: that is what initiation is like on this program. [laughter] some headlines coming from the british prime minister. confident vaccine supplies and supply chains. read between the lines on that. talk a little bit about the infection rate. infections still at a very high level. starting to see signs of case rates flattening. similar stores across the united states as well. this after a spat with europe and astrazeneca and the last

week. out of control. europe really in damage repair in the last couple of days. tom: we make jokes about it, but seriously, the separateness of the united kingdom from the continent right now is increasing, correct? tom: when it comes to brexit -- jonathan: when it comes to brexit, there's always a feeling in negotiations from the brexiteers that the europeans were trying to monopolize the moral high ground by using any path possible to build leverage, and the legitimate concerns over the irish border were a part of that story. it was being used to build leverage. the events of the last week, the mask didn't just slip. the europeans ripped it off and burned it because when it really hit the fan in europe, they were prepared, at least momentarily, to sacrifice that border in ireland, a huge error of judgment on the continent in the last week, and repair will take

a long time. whoever is to blame here, whether it is brussels or astrazeneca, and they will have to sort that out, whatever happens, every country, every government, everyone has a responsibility to contract with its citizens, even the most authoritarian regime. what happened in the last couple of weeks, the last few months, europe failed its citizens. that will make people less willing to outsource and centralize decision-making to brussels ever again, and he wrote the confidence at the national level in the electorate that they have in the european project over such a crucial issue. a total failure, and it will take a long time to repair. tom: to me, that is the key thing, the city/state archetype.

you go back to a city solution. jonathan: still to come, futures up 40 on the s&p. we advance a little more than 1%. from new york city this morning, good morning. this is "bloomberg surveillance ," live on bloomberg tv and radio. ♪ h■ñsrú ■nga■■ 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.

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♪ jonathan: from new york city, this is "bloomberg surveillance ," live on bloomberg tv and radio. how do we reset after last week? that is the question, isn't it? cover the shorts. cover the longs? reducing leveraging? got to think how we build that backup. in the equity market, we bounce back by a little more than 1% on the s&p 500, snapping the worst week going all the way back to october. in fixed income last week, less about what happened in treasuries. just briefly, a break of about 1% on the 10 year. this morning we bounce back to 1.08%, up a basis point. for me is more about what happened in fixed income on the credit side. had about $50 billion worth of

high-yield that come to market through january, and about 1/5 of that came from the ccc bucket. about 1/3 of that came from energy companies. if we got a bailout of wall street last week, that bailout was on the credit side. the likes of silverlake converted their debt into profit. the big retail surge and some of those names paid out fixed income positions in a big way. in fx, the foreign exchange this morning is all about a stronger dollar. at some point you start to factor in a weaker european recovery because of the vaccine rollout, the failed rollout. what does it mean for this trade? brought that up a few times over the last of of weeks -- last couple of weeks. we will do that a little more little bit later. you don't want to hear from me,

do you? you want to hear from romaine bostick. you've got the headline story, not me. romaine: let's stay with tesla. if you didn't like tesla at $300 or at $500, you are going to hate it at $1200. piper sandler more than doubling its price target for tesla. that is giving it a boost. another tesla related stock, one of the coronavirus vaccine makers that elon musk put his weight behind, the company lagged, one of the lake mers to the vaccine gain, but we are getting news this morning that they are is going to partner with curevac. that stock getting a nice pop. and if you are interested in getting in on richard branson's tourism rocket, they are going to have a flight window february

13 for the test version. if that goes well, you can start space tours as soon as this year. tom: what did you learn about gm and all the rest of it this weekend. romaine is a voracious reader. what did you learn this weekend? romaine: gme, the volume has gone down. restrictions are still in place on a lot of trading platforms. a lot of folks started to turn their attention ever. -- attention elsewhere. there's the idea that lightning could strike twice if you put this retail army behind it or get -- but this retail army behind it. the attention has turned to silver for some reason that i am not quite sure of. i am not sure how you squeeze out an etf linked to a precious commodity like that. the hunt brothers failed to do it years ago. we will see whether the retail

army can do at this time. tom: what did you learn about robinhood? it is early on a monday, snow day on the east coast. but after you take your nap, you get on air again. are you expecting robinhood like news this afternoon, dtcc kind of news? romaine: there was all this talk out of washington that they were going to have to do something. exactly what they would do and who it would to be seen, but if you are on any of the streaming platforms, you saw a lot of lawmakers trying to break it down and pick out the next bogeyman. they are pointing the finger at citadel and a few other hedge firms. one of these companies is going to take the blame for it. tom: thank you so much. a little bit south right now, futures advance up 37. a nice morning all in all for the equity market. gene tannuzzo with columbia

threadneedle to one's is now, global head of fixed income. we are so distracted by the equity market. i need to get back to fixed income 101. are you clipping coupons. , or are you defensive? gene: this is definitely a coupon clipping environment, tom. i think you said it right. we are not playing for price appreciation at this point in time in fixed income. we are looking at elevated prices across the spectrum in fixed income, and for us, it is about lowering volatility. we are still in an improving economic environment where vaccines can add a tailwind. it is an environment where, in general, you would want to be in reddit, but you look at traces of credit assets and they are more or less at nosebleed levels. for us, it is clip that coupon

and find it in a way that has the lowest volatility. for us, we are looking more for shorter maturity assets than we would be longer maturity at this stage. lisa: are you going with the trend of buying riskier assets on the margin of buying those ccc companies, perhaps because the volatility has gone down? investors want to buy the stock of these companies. the better off you are is a credit investor. gene: that's true, but i don't think ccc evaluations are all that attractive at this stage. we do like shorter maturity high-yield. in general we prefer bb or b-type assets. ccc is not a very homogenous universe. there can be some opportunities, but certainly at this stage if you are still hanging on by a thread and the economy hasn't come back in your favor yet, it

is a pretty risky venture to go that far down the capital structure. jonathan: you mentioned duration a couple of times. you were talking about the double bees -- the bb's too. how much is the average maturity in that's c -- in that space that has let them down because they drop into high-yield? gene: that's a great point, and we have seen that in the high-yield market, but even so when the investment-grade market. that market has lengthened as treasuries and cfos have done the very natural and, which is to take it vantage of low interest rates and borrow at these levels. from an investor standpoint, we are seeing that average maturity move from seven to eight and nine to 10, where we are almost seeing a 10 year degradation overall. if we are only planning to clip that coupon, there needs to be a catalyst. that catalyst could be

deleveraging. you mentioned fallen angels. there are several of them that are now making deleveraging a priority for 2021. those are some examples where we could find some price appreciation if they are going to be on a journey back to investment-grade, but aside from that, we are seeing a lot of potential price volatility with longer maturities, and without that catalyst, we stay quite careful. jonathan: do you think about balancing out some of that rate sensitivity by buying a little bit floating rate leverage loans? is that a consideration? gene: yes it is. we do like leverage loans. we think it is an asset class that the retail investor has been mostly absent from for the last couple of, as the fed has been cutting interest rates. we do see strong demand from the institutional community there. at the economy recovers, i think tank loans, while they have already done reasonably well, are a place to get some attractive income. lisa: one of the consensus trades heading into 2021 was

going into emerging markets credit. i am wondering if the dollar has shown the same we getting trend as it did at the end of last year, and given some concerns about the vaccination schedules, are you rethinking that trade long em? gene: we are, actually. i think there are opportunities in emerging markets, but i wouldn't pay with a broadbrush -- wouldn't paint them with a broad brush. many of the responses of these economies to the pandemic has been very uneven. we haven't seen the large-scale physical response that we have seen in the u.s. and other markets. it is something we really need to consider. if we look at the investment-grade cohort, quite frankly we don't find the price is very attractive at all. certain yields are higher in the high-yield area of emerging market, but they are your about a very fragile every at this stage. it is a much more -- fragile recovery at this stage. jonathan: i asked tom keene

this question last week. are you happy that you're in fixed income and not a market -- and not equity markets? jonathan: certainly -- gene: certainly with the shenanigans we saw in the equity market, it was nice to not have them in the treasury market. that is something that we need to pay attention to, and if that trend continues, that the correlation, that is something that is quite concerning for asset allocators. jonathan: that is a really important final point. gene tannuzzo there of columbia threadneedle. the break last week didn't hold, up about 1.1%. tom: i am going to call it range bound. jane said that this morning. all of the different asset classes that are maybe not being

discussed like they should because we are looking at the equity market. jonathan: that was one of the concerns coming into this year, that you wouldn't get the buffering from treasuries. lisa: it is hard to extrapolate out too much since there was this massive deleveraging and people blamed that turmoil on the drop. that said, some of the concerns tom is talking about are very real. the idea that you are getting variations in the covid virus and that these ongoing vaccinations that have come out aren't has effective at combating them. that has underappreciated risk that people are starting to look at more seriously. jonathan: payrolls this week really sharpens the focus. tom: totally agree. this is the second difficult job. you mentioned 50,000 earlier. i like that. a sharpening of focus. jonathan: sharp minds after a

really crazy week. crazy couple of weeks. coming up, david axelrod, former commissioner at the securities exchange commission. this is bloomberg. ritika: with the first word news, i'm ritika gupta. a group of 10 republican senators will prevent their coronavirus stimulus plan to president biden today. republicans have mostly rejected the president's $1.9 trillion proposal in the plan being led out today that -- in the plan enrolled out today. president trump parted ways with his previous defense team over the weekend. according to cnn, those teams left after trump wanted them to argue that the election had been stolen from him by massive

fraud. iran warned the u.s. they can't return to the cyclical deal -- to the nuclear deal. both are calling on each other to take the first step to restore the agreement. in russia, more than 4000 were arrested and a second straight week of anti-putin protests. among those is the wife of the jailed opposition leader. elon musk sent prices spiking after saying bitcoin is a good thing on the social media app clubhouse. he said he should have bought eight years ago. bitcoin jumped 18%. global news 24 hours a day, on air and on bloomberg quicktake, powered by more than 2700

journalists and analysts in more than 120 countries. i'm ritika gupta. this is bloomberg. ♪

>> it's not about protecting people from making bad trades. it's about keeping the playing

field level. you can't do that in the middle of a trading cycle. jonathan: senator warren of massachusetts speaking on cnn's "state of the union" there. >> this is "bloomberg surveillance" with tom keene, jonathan ferro, and lisa abramowicz. that distinction -- cnn's "state of the union" there. alongside tom keene and lisa abramowicz, i'm jonathan ferro. interesting point to there. it goes back to a point mohamed el-erian made. leveling the playing field, that was the question people ask last week. whether you think anything going on is fair or not, let the legal issues workout. people asking, why couldn't i trade when other people still could? i could still see the ticker in the new york stock exchange alive and well. tom: you saw that thursday and friday of last week. this is not the david axelrod of obama administration claim.

what you need to know is we know on "surveillance," the length of the resume is inversely proportional to the skill, except axelrod is a wild exception to that. his cases are extraordinary both in private practice and his work with the securities and exchange commission, and we are thrilled to bring you this voice on "surveillance" this morning. really honored you could be with us this morning. you did an insider trader thing at the williams court in washington years and years ago. if you were speaking to a body of attorneys today about what is to come in this uproar, what would you say to them? david: i would say that in the wake of this, everyone is looking for a bogeyman, but i think we will find out nothing has really changed. not much was done wrong here.

the rules are going to work fine. we may see other examples of this going forward, but i think the market is going to shake out. the small retail traders saw an inefficiency here, saw a window to do something, and they did, and they made some money. but the stock is going to go down. tom: you've been on both sides of the fence, practicing the law. how do you treat the silicon valley tone we get from robinhood and others? how do you handle the behavioral and cultural millennial tone we observe? david: there are very smart people at the hedge funds and institutional investors. they have been scraping social media for years already. this is nothing new to them. it may be new to us in the general public seeing it. but they are going to have to build into it. they are going to build it into their models, and probably taking advantage of it in ways

that i wish i could contemplate because i will not be working in the law. lisa: what are the legal issues here, david? david: i'm not sure there are. a lot of people are looking for something wrong here, but this isn't a case where you see people lying about what they are going to do. people have been doing this for years. you need to look at the terms of contracts they have for actual customers, but i haven't seen anything to indicate robinhood is a problem either. lisa: as a social media takes on an increasing presence in markets, what is the line when it crosses into market manipulation? david: that is going to be the difficult thing. usually in situations like this, you see people crossing the line. the line is deception, part of the pump and dump.

but if that line has been crossed, if you just have axelrod sitting in front of his computer, trading stocks, it's not there. jonathan: does intend matter? if i go on a for them and say this is what i like, this is why i like it, and the objective is to make money, what if the objective is to hurt or cause someone else pain? does that matter? david: i mean, no. in our system, hedge funds have been doing this for years. the intent is to make money. they don't care whether businesses get put out of business, which is the very clear responsibility, but if retail investors want to hurt hedge funds, our system doesn't capture intent. as long as you are on it -- you are honest, your intent is really relevant. tom: what was your response when

he saw trading shut down on thursday or friday? did you just assume that somebody got out front of those announcements. tom: yeah -- david: yeah. i always assume that if there's going to be a big shift in the way the market is operating, it is someone with a disadvantage taking on opportunity. tom: how does someone discover that malfeasance? david: i suspect the sec and perhaps the department of justice wilson subpoenas for testimony, for emails, for bloomberg im chats. it is always in the records, so if some hedge fund new that robinhood was going to take action. lisa: given the politicization of this issue, the fact that aoc

and senator ted cruz cited on the side of the robinhood traders, became a populist versus the system kind of debate, what are the long-term consequences for the supposedly apolitical regulatory agencies? david: from a policy perspective, i could go millions of different ways. from aoc's perspective, they could attack large put options that some people argue had no economic benefit in the beginning. they could attack robinhood and make sure market place access is there for everyone. but anytime you see ted cruz and aoc lining up on the same side of an issue, it can go a million different ways. jonathan:jonathan: that is a good way of putting it. david, great to catch up. david axelrod, thanks.

i think there's going to be some huge pushback on the price discovery. tom: what we are trying to do here, folks, is talk to adults in every segment of this uproar. i take real issue with the word mania. i don't think it is mania. i think it is a short squeeze. jonathan: exactly. hedge funds themselves should want to move away, and then there's the shortselling. i think all those years ago, some of the work. actually, an element of it was just a really welc -- a really well constructed trade many people wanted to see from the retail side, and it worked.

tom: in gamestop, pop that up to $321. jonathan: a little late on that one. alongside tom keene and lisa abramowicz, i'm jonathan ferro. heard on bloomberg radio, seen on bloomberg tv. ♪

>> we are going higher and inflation over the next couple of months. there's very little we can do about it. >> the economy is still very robust. if you don't establish functioning wall street and stability, it is disastrous. >> this is "bloomberg surveillance" with tom keene, jonathan ferro, and lisa abramowicz.

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