♪ carolyn -- caroline: from bloomberg world headquarters in new york. joe: stocks rallying for another day, but the question is --"what'd you miss?" caroline: there we go again and rip up the script, we are talking gamestop. i'm sure we will be talking jay

powell testifying once again in front of congress. we will be testifying how he was in front of congress while behind the scenes the system failed. but we are talking about the retail trade that has read it having its operational system once again being down, too. it is not just the fed having these issues. joe: it seemed like they could talk about things like inflation and jobs and the fed's framework, but it's clear this story is not over. games -- gamestop shares actually going nuts. romaine: what a time to be alive. forget about the fed going down. it's about reddit being down. joe: 103% intraday, and i think

another 30% already after hours. how much of this is about investors essentially doing their cash flow on gamestop and realizing it is about 100% more than they realized? >> it is 100% about that. to be serious about this, this was pointing to the reshuffling we saw with the cfo at gamestop, but that was not news that just broke. that was news that was already out and known. maybe some communication over the rumblings over at gamestop caught some folks, but they are pretty quick. i'm sure this is not new news to them. rather, we just saw in the last hour of trading, gamestop started to take off, and you look at other stocks.

joe: we are really doing this again. the same old ones. sarah: it was almost humorous in a way because gamestop started surging, then suddenly you looked at blackberry, koss, amc, and they are all moving together. caroline: what is the game here? pardon the pun. sarah: certainly now is different than late in january, and that is one of the main points. you still do not see the amount of short interest in the system that we did in late january.

much of that has been baked out of the system. we saw the short squeeze, but at the same time, this is a very large community of traders here. they have not back down. if you look at wall street bets, nine point 2 million members strong, gamestop wall street data was not really out of hand today, but if you look at amc, surely there was more fundamental reasoning going on behind the amc surge we have seen over the past couple of days, but today, and amc call was the second most traded call in the u.s. on exchanges, and

that just goes to show you that the option

romaine: before gamestop stole all the thunder, we started the day talking about that treasury yield. joe: the original meme stock. at one point today, hitting 1.4%. basically where it was a year ago, round-trip, we are almost erasing much of the pandemic losses. down to 1.38%, but that is very powerful. zoom: wasn't today basically the

one-year anniversary of the first big covid selloff? then oil back to where they were. joy -- joe: very interesting time right now because we have this treasury selloff, rates going higher. we had powell on the hill. we had people talk about inflation but still no signs of it actually happening. what would you say is the most important thing you learned or maybe the market learned about the current stance of fed spread ? >> for me, this is really an opportunity. we are at a moment for powell to really solidify the reaction function. he is on the hill to educate lawmakers about what that means, and it is also a message to the markets, a reminder to the

markets, we are going to be rat -- reacting differently, holding the line. we are waiting until we see actual inflation. we are not going to be preemptive. you guys can guess, but i want to see the proof in the putting before we calibrate policies. i think it is not a new message -- it is what he has been saying -- but we are at an inflection point. the market has been seeing the turning point in the economy and wanting to run that and also try to guess what the fed is going to do in applying its old reaction function, and powell just, nope. romaine: here a lot of economists celebrating or at least more embracing of this new trajectory the fed seems to be on. a lot of market participants, especially some of the old school ones, say price stability is your function. focus on that, and the message we have been hearing from powell and most of the other fed

members is that is really not the function anymore. am i missing something? >> no, i would say let me recap that, ok? the market is guessing there is going to be inflation and we have seen a reflation in some commodity prices. it is a return to a more normal price. that does not mean it is going to keep rising at the same rate, and there has been a real normalization in yields, inflation expectation, in commodity prices that reflect the prospective health of the economy. that is perfectly consistent with price stability. in actual consumer inflation, we have not really seen much that is worrisome at all. i think they in fact have a deeper commitment to price stability, so what they are not

going to do is what the market is doing right now, guessing about the future and setting policy accordingly. they are saying, we've been wrong so many times. the market has, too. we have the same narrative coming out of the great financial crisis, and we were wrong. if you look just a year ago, we had this really robust labor market, right? low unemployment rate, broad-based gains for low wage earners, and yet, we did not really have a lot of wage inflation and certainly did not have a lot of consumer price inflation. caroline: we are going to have to leave you. >> in order to protect and provide our people [inaudible]

the executive order i signed was to ensure their was more manufacturing here for people at home and today i'm going to sign another executive order to address supply chains across additional critical sectors of our economy so the american people are prepared to withstand any crisis and rely on ourselves. this is about making sure the united states can meet every challenge we face in this new era in defense, cybersecurity, climate change, and so much more, and the best way to do that is by protecting and sharpening america's competitive edge by investing here at home. i said from the beginning while i was running we are going to

invest in america. we are going to invest in american workers, and then we will be in a much better position to compete then we are now. resilient, diverse supply chains and help revitalize our domestic and you factoring capacity and create good paying jobs. not $15 an hour, which we need to do some day, but the sick -- and the sooner the better, in my view, but jobs at the prevailing wage. we are going to spur new opportunities small businesses, communities of color, and economically distressed areas, and i will drive new investment in research and innovation and our workforce investing in training, university partnerships that will lead to new technologies and new solutions, and all of this will not just strengthen our domestic capacity but will help unleash new markets around the world and grow opportunities for american businesses to export their goods that we will be making. these are the kind of commonsense solutions that all americans can get behind. workers and corporate leaders and republicans and democrats. it is about resilience. when we find possible points of

vulnerability in our supply chains and making sure we have the alternatives for workarounds in place. remember the old proverb, the shoe was lost, for want of a nail. and it goes on and on until the war is lost all for want of a horseshoe nail. i have here a computer chip. you can hardly see it, i imagine. it has caused delays in production of automobiles as a result of reduced hours for american workers. the 21st century horseshoe nail. the semiconductor smaller than a postage stamp but has more than 8 billion transistors -- 8 billion transistors. 10,000 times thinner than a single human hair in this one

chip. chips parked at one innovation and design, enable so much of our modern lives to work, not just cars, but smart phones, televisions, radios, medical diagnostic equipment and so much more. we need to make sure these supply chains are secure and reliable. i'm demented -- i'm directing senior officials in my administration to identify solutions to this semiconductor shortfall and work hard with the house and senate. they have authorized the bill, but we need $37 billion short-term to make sure we have this capacity. we all recognize that the particular problem will not be solved immediately. in the meantime, we are reaching out to our allies, semiconductor companies and others in the supply chain to ramp up production. we need to stop playing catch-up

. we need to prevent the supply chain crisis from hitting in the first place. in some cases, building resilience will mean increasing our production of certain types of elements here at home. in others, it will mean working closely with our trusted friends and partners, nations that share our values so that our supply chains cannot be used against us as leverage. we are free identify and and building surge capacities that can quickly be ramped up in times of emergency, and it will mean investing in research and development like we did in the 1960's, to ensure long-term competitiveness in our manufacturing base in the days ahead. the order i'm about to sign does two things. first, in -- it orders a 100-day review of 4 vital products -- semiconductors, key minerals and materials like rare-earth that

are used to make everything from harder steel to airplanes, three, pharmaceuticals and their ingredients, 4, advanced batteries like the ones used in electric vehicles. with strong bipartisan support, they are -- there is strong or partisan support because they are needed for american competitiveness. these reviews identify policy recommendations to fortify our supply chains at every step, and critically, to start implementing those right away. we are going to wait for you to be complete before we start drawing on gas.

we will draw on a full range of talent including labor and industry experts, farmers, scientists, engineers, to get their input. i'm grateful to the members of congress who came to see me. we are leading the way. we are going to stay in close contact with members of both sides of the aisle and keep advancing our shared goals. everyone has a role to play to strengthen our supply chains and our country. this is the united states of america. we are better prepared to meet the challenges of the 21st century than any country in the world. there's nothing, nothing, nothing we have ever failed to achieve if we work together. that is what we have decided to do today, and that is what we are going to do -- work together. i thank you all. i'm very optimistic about the meeting we had today with our congressional colleagues. now i'm going to walk over and sign that executive order.

romaine: we are watching u.s. president joe biden signing an executive order, this related specifically to the chip shortage. he talked about the idea that americans should never have to face a shortage of goods. he did speak with officials earlier today about addressing the semiconductor shortfall. this executive order is aimed at that, not only in the short-term but also in the long-term. he said it would also potentially address long-term other equipment shortages outside of the semiconductor industry. just to be clear, we are not seeing a lot of movement in chip stocks after hours. nvidia did report earnings. shares are higher off of those earnings, but the rest of stocks pretty much flat in after-hours trading. caroline: it is interesting as we speak about the supply and concerns -- let's listen in. president biden is speaking once again.

>> i think we are going to be in good shape. thank you. >> [indiscernible] >> am going to be talking to them. i have not spoken to them yet. >> [indiscernible] >> no. >> have you read the jamal khashoggi report yet? >> yes, i have. thank you. romaine: of course, that was joe biden, president of the united states signing that executive order related to shortages of supplies in the united states affecting automakers and a whole host of other industries out there right now. joe: the theme is shortages, bottlenecks. that is what we are talking about. we are also seeing it in agriculture. prices of coffee beans, arava,

look at that -- absolutely soaring. it's not gamestop levels, but up quite a lot over the last several months. joining us now, scott irwin, chair of agriculture marketing at the university of illinois asher boehner vanna -- at champagne herb and -- university of illinois at champaign-urbana. what is the number one because that these things are on the rise? >> china is the answer. they have already bought over 2 billion bushels of corn and soybeans for the upcoming year. there are other factors, but that's the key. >> if we see prices surge, where are we drawing it from? is there a key issue that we are going to see price increases here in the united states where we are going out and buying serial, for example? we speak about food prices on

the rise. >> excellent question. sometimes there's a little confusion about terminology. we are talking about the price of basically raw materials that go into making things that you buy at the grocery store, except for milk, meat, and eggs, about 80% of the cost of the food items you buy at the grocery store are processing, transportation, marketing, and advertising, so you can increase the price on the 20% that the farm level value of the crop or commodity represents and not increase the overall inflation level at the grocery store very much. romaine: i am curious about some of the supply issues. i've seen data out of the ist a that shows we are not seeing a huge increase in planting here in the u.s., and then, no doubt,

in latin america, there are weather issues holding back planting there. how much of that will factor into any further price appreciation we see going forward. >> it is sure going to be interesting. that's one of the limitations. when you have one of these kind of big, unexpected demand shocks -- you could argue if it was unexpected and not with china -- it does take a while for the world to respond. it typically takes a couple of crop cycles. we have a huge usta report coming out of the end of march when we will get our first readings. i expect u.s. farmers to go back to a mantra from the 1970's. i think we are going to plant a lot of everything, but particularly corn and soybeans. joe: we talked about this chinese demand cycle, a restocking of their goods. we have a sense of how long this

cycle can last or how long cycles have lasted in the past? >> china's soybean appetite is voracious. it was just up and up and up for 10 years, just cap setting records until we went into the trade war with china, so that is -- you know, it can go on a while. my own personal belief is we will see continued strong buying on soybeans. corn is the wildcard. we do not know how much of that is just rebuilding stocks, feeding more because of rebuilding their hog heard after the african swine fever, so there is a lot of uncertainty about where this corn is going into china. caroline: the trade breakdown we saw between the u.s. and china, are farmers taking that well,

assuming china can be the biro choice, or china has not figured out a way in the longer-term? >> farmers here are very attuned to the possibility china will diversify suppliers. i don't think there is any doubt china is going to do that, but they are such big buyers right now i think that is a secondary consideration. joe: great perspective, great explanation of what is going on. scott irwin from the university of illinois at champaign-urbana. you can hear more of the conversation on the outlaw podcast available tomorrow morning. romaine: always great content. i definitely encourage everyone to check out lots. we started as a meme stock show

and are ending it that way. what is game stock stand -- where does gamestop stand right now? job: one 79, up 300%. romaine: do you buy into this ahead of tomorrow? joe: i make no calls. caroline: but you do make calls as to how many odd lots shows you may have about gamestop. joe: our producer laura carlsen says we cannot jam out another five episodes in a week. we'll see. maybe if it goes to 1000. romaine: you got to jump on it. maybe a netflix special. joe: i did not think there is going to be any interest, to be honest, but maybe if it keeps going. caroline: meanwhile, that does it for "what'd you miss?" joke: "bloomberg technology" is

up next. romaine: and "daybreak australia" is next if you are in asia. thanks for joining us. this is bloomberg. ♪

♪ emily: i'm emily chang in san francisco, and this is " bloomberg technology." coming up a key milestone -- u.s. regulators say johnson & johnson's covid vaccine is safe and effective. it would be the first a single dose in the united states.