romaine: let's take a look at where we stand in the markets. all that treasury volatility led to eity. the nasdaq back down to january levels. joe: the question is, "what'd you miss?" caroline: rates rising, momentum

stocks continuing to lose some of their mojo. tech stocks like apple and amazon falling with the nasdaq up by 2.5%. inflation expectations just keep on growing. inflationary levels we haven't seen since 2008. there is some green, carnival rising 4%. the carnival ceo will join us but i know you are looking at stocks reclaiming some of their value. joe: that is the other side of this. a lot of stocks are on fire these days. take a look. cruises, concerts, live business venues. shares of companies in this space are rocketing back in

recent months. check out royal caribbean. it has basically quadrupled off the lows back in march. this is before the virus is really even gone. look at shares of live nation near all-time highs. thise of the first stocks to tumble about a year ago when fears of the virus really started to mount. these days it's on a total tear, people are even ready to flock back to nightclubs. an unbelievable run, well above precrisis highs. the global black seat -- vaccine rollout, more than 240 5 million shots globally administered to date. some countries really making significant >> we will see more and more countries as we reopen the tourist sector, airlines will function a bit more openly. it's to build them up with people who have been vaccinated. joe: reopening trade is red-hot.

11 months ago there was all this talk about a bailout, they were going to prop up all these zombie companies. it turns out there was nothing really broken about any of these business models, they were just massively disrupted by a once in a century pandemic. romaine: not broken, just disrupted. the question is when will we get back to those pre-pandemic levels? we have an exclusive interview with the ceo of carnival. >> is great to be joined by you. a once in a century pandemic. as chief executive of a company that will be remembered as the poacher -- one of the poster

child of covid, what would you do differently if you could go back to when all this began? >> first of all, it's good to be with you. of course everybody has learned so much more about the virus and everything, there has been a tremendous amount of science and learning and obviously there is still more to come. but we would do differently, obviously, we would have probably -- at that time, no one knew. other than that, we did all the things prior to that that allowed us to provide the outcome to this point, and we think we have a nice runway well into next year now. last year we had zero revenue.

so we started with the strong balance sheet and manage that proactively for many years prior to when this happen. because of that, we're in a position to weather the storm. >> let's talk about liquidity, you raised $20 billion during the crisis virtually. if it weren't resume and all the things that have allowed this, would a company like this have just gone under? it feels like the time he is quite for tutsis. arnold: there's no question, -- quite fortuitous. arnold: if someone had said we would be able to raise $23.5 billion virtually with no one in the office, not the investors, the bankers, everyone would have thought they were crazy. so the technology has certainly made things possible that didn't seem possible before.

what i also know is that people in a time of crisis kind of figured things out. so i wouldn't speculate that it would've been impossible without today's technology, but there's no question it would've been far more difficult. >> obviously a lot of that stuff you raised is done in aggressive market conditions. arnold: as i said, we have a nice runway, where at the point where we still have additional debt we could secure if we needed it. obviously with regard to the balance sheet overall in terms of equities and so on, at this point we have the liquidity we need to take us well into next year. i would say we are hoping to have some revenue this year.

some of the debt we raise wasn't rates we never would've even considered in the past. even more recent ones are rates where we are happy about than now, but two years ago we would not have been happy with those rates. it is what it is, but we will adapt. we have a great resilient industry. we will be able to generate lots of cash and over time, we will get back to the solid rating we had prior to the pandemic. >> i'm interested in that resilience you mention. every industry suffered from covid but the cruise industry, there have been some horror stories over the last year. i understand -- how do you pitch this as a model for new, potential cruisers? arnold: first of all, you are right, it has been a very difficult time. zero revenue, even when you've

gotten very conservative like we have, $600 million a month and zero revenue, that's not exactly the world's greatest business model. having said that, as we look ahead, we have over 8 million peak cruisers in our world of carnival and are nine brands. there is pent-up demand. they cruise on average once every two years. so that's a whole year of repeat cruisers basically that haven't been able to cruise. so there is plenty of pent-up demand. additionally, reproduce the size of the fleet, because obviously we had ships that were less efficient and it didn't make sense when they weren't generating revenue to continue to invest in those ships. that's how we got our burn rate down. so we plan to exit 19 ships.

that takes our capacity down when we do come back. all the destinations will not open up at once. different destinations will open at different times. so there will be plenty of pent-up demand, as is evidenced by the bookings already, as you look at late 2021 and the first or second half of 2022, where the bookings are stronger than they were even prior to covid on the same basis. >> with more people on these boats in isolation with one another -- you have to jostle and mingle with strangers, you have this conviviality and a ready supply of aperitifs. if you don't have that, will people really want to go cruising? arnold: you're absolutely right

that traveling and cruising in particular is about people connecting with other people. what people remember are the other people on the cruise. it's all about the exchange, and people learn what they have in common and then they learn to celebrate their differences rather than fear them. you are absolutely right about that. having said that, we've already resume cruising in italy and germany on a limited basis. people love the experience. the second part of that is, you can't look at a point in time. those cruisers had all kinds of enhanced protocols, universal testing, everybody had to wear a mask, enhanced sanitation processes when they went on

excursions, very controlled with distance and so on. so a lot of rules and regulations, but people still had a great time. that is all going to evolve with the advent of vaccines, with the acceleration of advanced treatments that mitigate the risk of either hospitalization or long-term effects or worse from covid. as the risk goes down, then the need for a lot of those different things will begin to mitigate as well. but even with those things, we had the highest ever guest satisfaction scores. >> a great conversation. we look forward to having you back as the world prepares to set sail again. joe: great stuff, we really appreciate it. coming up, nasdaq at a two month low and other parts of tech continuing to like. how much longer will this pain go on?

we will discuss that latest moves, next. this is bloomberg. ♪

romaine: welcome back to "what'd you miss?" the nasdaq pulling back from those january levels. joe, while you were on the others out of the room relaxing, caroline and i were covering a lot. joe: the market went back down to january levels? that's pretty scary. look at all that red. caroline: you were resting on your laurels, not a care in the world. joe: i had a lot to do.

let's find out what happened. some of these moves accelerating to the downside, levels right near last tuesday and friday. are people thinking we could bid a point where things start to break down further, or is it safe that we are back to january levels? >> a lot of it had to do with the yield picture. i did a little nerd math crunching, bear with me here, just for you, joe. the correlation between the two new yield and the nasdaq 100 has turned negative and that hasn't happened for two years, chai think is a pretty interesting accommodation. it's not just about the cyclical rotation anymore. it's directly a result of the yield market. essentially when yields go up, tech drops specifically. i think that's a really important thing to keep in mind

private it's not just people selling tech in favor of the energy names and carnival cruise lines. caroline: there you've got your positive or inverse negative. what it means is, big tech is getting hit harder. where else should we be training our eyes to see if the pain continues? >> tech is no longer trading as a whole as one big basket. you're seeing the semis do their own thing. we ran a story from our stoxx team that some of the old guard names like oracle and hp that were underperforming those big tech names, now they are actually in the green. on a day like today when tech is six points ahead, it speaks to the idea that tech is no longer a big plank it bid anymore. you start to see these moves and people are being a little more nuanced with what they are

picking. romaine: when we talk about tech, you have that new school stocks out there but you still have a lot of concerns about whether they can continue the same growth rate. then you have the old tried and true. you know what you will get out of apple. it may not be exciting, but you're going to get it. >> when you're looking at the earnings picture, you have names trading on sentiment largely. there is a case to be made that some of these names, look at how they have dived into the ev space, even talking about, there's a story today about how amazon is talking about streaming some of the nfl games on prime video. so there are places where there finding growth avenues for some of these big tech names.

caroline: no investment advice here. we thank you for all the market analysts -- analysis. we continue the conversation on the reopening trade and whether you call it rotation or reflation. that's up next. this is bloomberg. ♪

caroline: today we're focused on that good all reopening trade and how it's causing rotation in the market. we over use that term rotation but there's a lot happening. joe: there is a lot going on, and of course the really big picture is what's going on in long rates. were talking about continuing --

you can see it on this chart because it goes back to 1955. the big story it tells you is that, sure, we've had the treasury selloff come rates have picked up, but there's a very big downtrend that is strongly in place. we are nowhere close to reversing this in a durable since. is the new policy regime going to flip this or is it just another cyclical blip on the long elevator down? 60% free my -- free money. joining us with more on all this is our guest. let's start with the equity market rotation that we've seen. of course it has coincided with this backup and rates and we can tell the story about reflation and cyclical acceleration and so forth.

how sustainable is the return to value, the return to some of the cyclical areas and how much does it have to coincide with ongoing upward pressure on rates? >> well, when i look at previous cycles, you do tend to see an early recovery such as the one we are having now. you do tend to see rotation in favor of the companies that might have gotten beaten down during a contraction. those are small caps, they can be emerging markets although the emerging market data doesn't go back that far, it only goes back to this 1990's or late 1980's. i think it is reasonable to expect that the value will continue to do well. in general, foreign stocks

should do well as well. i don't think you want to go and bet your entire portfolio on the proposition. were talking about probabilities, not certainties. but it's a good time to look at the portfolio. it's a time to take stock and find balance more than two to take huge bets. caroline: we heard scott minerd of guggenheim saying i'm hearing everyone talk about treasury yields going higher, but i think they could go back negative on the five-year. the tenure going negative, is the only path for yields to go higher? how much does it worry you? >> i see all the handwringing around the interest rates.

but i don't really see what the big deal is. when you look at the longer-term chart, what it shows is that we barely had any movement. if you look at it up close, what happen in the last year it looks dramatic. but if you pull back the linens, -- the lens, we are still well below the average number. it's hard to imagine we get anywhere near it unless we get some unexpected uptick in inflation that no one really expects at the moment. i suspect we won't go negative, i think it's unlikely. romaine: most equity investors we talk to, it's more the bond

investors that have a little bit to worry about depending on what their entry point was. i'm curious as to, going back to the idea of value and what you look for as value in this environment, and i mean an environment where receiving economic improvement but also arising rate and maybe potentially a tightening of monetary policy. >> i have an unpopular opinion you will be shocked to hear. i think we've done investors a disservice by making too much of the relationship between interest rates and what happens in the stock market generally and what happens in general cross-sections of the market specifically. when i look back at the available data we have, i can't find a relationship between lucrative interest rates and what happens to growth versus value in general.

i think we've set up investors to think that if interest rates go up, there will be now she will be a boom to value rather than growth. in my opinion it will be mostly because growth has just gotten ahead of itself. in general, higher interest rates are destabilized, and it should be informed to some extent by how extensive it is. you would imagine -- i don't think it has anything to do with the intrinsic aspects. caroline: we love unpopular viewpoints here. meanwhile, look at what happens, what goes down apparently comes back up again if you're a good stock picker of hedge funds.

he did ok in february, up 22%. joe: if i'm ever in a short squeeze, i'm going to hold through it. don't let them squeeze you out. romaine: bloomberg technology is up next. ♪

emily: i'm emily chang and this is "bloomberg technology." bitcoin surges past $50,000 once again and coinbase isn't the only exchange riding the waves. smaller rival kraken is raising money at a potential $10 billion valuation. we speak to the