ye yes you do. a kohler walk-in bath provides independence with peace of mind. call... to receive one-thousand dollars off your kohler walk-in bath. and right now we're offering no payments for eighteen months. ♪ caroline: from bloomberg's world headquarters in new york, i'm caroline hyde. joe: i'm joe weisenthal. caroline: is a check of how the markets rally towards the close. the s&p 500 closes at a record high with new york crude pushing up. joe: the question is "what'd you miss?" caroline: rising tide lifts all boats, and of course we had to do upon because that was the case as stocks surged into the

close but not the case this week when it comes to this one, 200,000 ton containership remain stuck in the suez canal. the blockage putting a halt to one of the world's most vital shipping routes. a few things are floating. the price of oil up about 4%. people fear the supply chain disruptions and oil ship it disruptions soon ahead. another thing rising? intense interest across digital arts collectibles. virtual houses, $500,000. we are talking nft's, before we talk suez, let's talk the craziness that happened in the market today. you saw some of the big the that's big -- you saw some of the big decliners. joe: some individual names that are really wild. the streaming giants,

discovery down 29%. viacomcbs down 27%. that stock was one of the best performing stocks in the s&p 500 since last march, cut in half in a manner of three to four days, and a lot of this comes on top of the selling in china. gold is dragging china down modestly. they really have been getting pounded so lots of questions about where exactly this intense selling is, because 29%, 27%, you expect that from some electric car start up, not from some of the world. caroline: yes, maybe pin that on the latest spac. so the mighty rise, maybe they fall from that. joe: for more on all of this, let's bring in kriti gupta. it is interesting because markets right there, all-time highs, basically, and yet we continue to see various pockets

of the market that really have turned sharply after having an incredible essentially twelve-month run. kriti: absolutely. we are starting to see this happen on so many levels, the confluence of market factors and i want to get really nerdy here. there are technicals at play. there is this trading arrangement at play. also summer earnings, a wave of downgrade start to sink some major names. it didn't of course goes in the opposite direction of the market which is interesting. you are seeing pockets of the market start to get more action rather than the whole index, things like the nasdaq 100 or the russell 2000. those used to be men some fits as a whole. -- those used to be momentum bi ds as a whole. caroline: before you used to have a nice narrative, correlations at play, yields move one way, the nasdaq moves another, but that slightly

has broken down the last couple of days. what we used it to talk about a lot is the retail traders, and with all of the stimulus checks going out, is that just not going into play? kriti: i love correlations, so the fact that they are not anymore, i am taking that to heart. as far as small caps, gamestop things go, it is interesting. you had this passive bid for the russell 2000 in the past six months since the election, maybe back in september, you saw this massive bid in the russell 2000, and then you actually saw it get pilled back to when the gamestop saga. first the biden bid, and then the gamestop saga, the markets tug-of-war is what i would call it. perhaps when you start to see the retail bid disappear, joe weisenthal wrote a great piece about it. i used your full name for emphasis. hero a great piece about all of the ways that you could see the

retail bid perhaps disappearing. and perhaps that means, there could be a little return to the fundamentals or you could let the russell 2000 perform on simply rallying the idea that the economy is reopening and that will benefit the smallest companies before it benefits the big ones. joe: a couple of weeks ago we were talking about the 10 year, but now no one talks about the 10 year. kriti: we are not seeing them surge anymore because that was a big concern. we are seeing them surged by the massive margins, and it was once again the margin of the move, and that was what was spooking things like tech and other parts of the market. now you see it however, you have not seen it to 180 basis points. i want to go look this up, it is actually not that you have her, 167. it really has not moved much past the resistance level. caroline: all about the

technicals. all about kriti gupta. we thank you so much, have a wonderful weekend. coming up, we are still stuck in the suez canal. bloomberg learning it could take until at least wednesday to move that container ship, impacting everything from oil to grains to cars, you name it, we are on it. we will discuss that with mark -- with our economists. this is bloomberg. ♪

♪ caroline: the blockage of the suez canal wreaking havoc on the global trade, sending shipping rates surging to make a long journey around africa the only short-term alternative. this sheer cost of that -- the

bloomberg reported that reports. >> it means that hundreds of vessels with billions of dollars of goods on board are standing still. you know what is moving in the suez canal? wind is blowing at a pretty nice pace, 15 miles per hour, which is above average for this time of year. ships are only allowed to move at about seven piles per hour -- seven miles per hour through the canal. wind is a part of the problem at the first place. strong winds blew up a dust storm that made it almost impossible to see and then the ship got stuck. this highlights not only supply chains, but also, the importance of the shift in the way the world gets its energy. with more power coming from increasingly cheap wind farms and solar parks, it means that people will not have to worry as much about the suez canal in the

future, at least in terms of how they get their energy. joe: the entire world absolutely transfixed by this ship that is stuck at the suez canal anyway, and i do not recall any story like this in recent past. joining us now is mark levinson, he is author of the book "how the shipping container made the world economy smaller and the world bigger." thank you for joining us. something you have talked a lot is the logistical challenge of the ships and this ship is gigantic, taller than the eiffel tower. how much is this putting strain on chokepoints and ports and canals all over the world right now? mark: my new book is called "outside the box" and a lot of the book is devoted to explaining why these gigantic ships, which were meant to make shipping cheaper and more efficient has really fouled

up global trade. the idea is it is a lot cheaper for containers if you have 10,000 on one container than you have five or six. that is true when the ships are at sea usually, but not true when they get support and they totally foul up the port. the ships frequently run late because they refused to operate fully and once they fall behind schedule, they cannot catch up. you put it all together, and the global supply chains are actually slower and less reliable today than they were 20 years ago. caroline: not to mention, a awful lot of trade issues that might surround perhaps u.k. and e.u. and all of these animosities that create their own issues. we got this latest news being summarized by a maritime services provider, the shipping services and having been able to

float the vessel it would seem from the stern/aft and they will try to re-float in the moment. what is the future likelihood of this happening all over again from your perspective? marc: the likelihood of another giant container ship getting stuck in the mud, probably not great although container ships of this size have some problems. this particular ship requires almost 52 feet from the water line and the bottom. if it gets off course a little bit, i can run into problems. this particular ship, which is three years old, was in an accident a couple of years ago in germany, a similar story to the suez canal situation of the wind high, and it pushed the ship, because there is a wall of

containers effectively on top of the ship and then they get susceptible to getting pushed by the wind, and the ship hit a fairy. the sorts of things do happen. sometimes, they can be serious enough that they actually mess up trade for other people and they can mess up or operations or otherwise disrupt supply chains. supply chain disruptions have become quite common and it is a problem for manufacturers and retailers around the world, because these long, complicated value chains that they built to save money are not as robust as they thought. joe: there is talking now depending on how long the disruption last and it seems it might last a little while, that more ships might need to be rerouted around africa. what kind of cost are we thinking about just in terms of time, logistical cost delays,

and dollar cost if there has to be a major reroute and shipping giants cannot use the canal? marc: just for container ships, you can figure out what the current day charter rate is and it depends on the size of the ship, and multiply it by another two or three weeks, and that is what it is going to cost you. on the other hand, this is actually pretty good for the ship lines. it keeps capacity in very short supply because now it is going to take a couple weeks longer to make a trip between asia and europe or west asia and the united states and that gives them another opportunity with those rates come up so the ship lines probably do not mind this. the customer are not going to be happy. caroline: always going to be a winner on some side. your whole book speaks to the very narrative of globalization and it is interesting that the u.s., while we think about the new infrastructure bill and the

trillion dollars of being spent, a lot is looking for better ways for the economy and world and looking towards waterways rather than pollutants. are we going to have to depend a bit more on air, because it is a lot more costly than freighting over the water, but are there is something that is going to have to step up? marc: it is not so much airfreight. what we will see is the ship lines rabbit dating toward smaller vessels. a lot of people in the shipping industry, off the record, will tell you that they think really the ships that do carry 11 or 12,000 truck size boxes, are just way too big. they are looking at ships that can be a reasonable size. one problem with giant ships, the kind that has grounded the suez canal, is that they are not flexible. they can only be used on very

busy routes, and they can only call through certain harbors that are deep enough, so if businesses change and you need to put the vessels on a different route, you cannot do it, and it would give the ship lines a lot more flexibility. i would not be surprised to see it back towards some of the smaller ones for today. joe: our thanks to marc levinson, author of "the box." you can hear marc on a recent episode of the podcast and back in january, we talked about the surging cost of shipping. you could check it out wherever podcasts are sold and we will try to have him back on soon. caroline: meanwhile, we are going up on what is in and of the moment, the latest crypto craze. we speak with a member of

flamingo, an nft. this is bloomberg. ♪

♪

caroline: nft's, and joe, you have decided it is the thing you are going to check every morning when you wake up and where nft prices are going. joe: nft prices tell you the whole thing these days and they are correlated with the broader crypto market and the broader crypto market is somewhat correlated with the broader stock market. we have seen crypto come off of it ties there. having peaked in february, a little off of it ties, still an incredibly six-month run. we will see. right now, it feels like everything is everything, it is all one trade. caroline: all one trade, but

they are getting creative when it comes to nft's. there is a virtual house that sold for more than any real house really sells for, $500,000, here is the pictures of it. meanwhile, did you see the story about nft's for the new york times, then became an nft, and then sold for charity. it gets quite met up quickly. joe: $500,000 is a good deal for that fake house. joining us is priyanka desai, member of the nft focused dao, what is an nft focused dao? priyanka: great question and nft's are all the rage. dao stands for defensive autonomous organization, and you can think of them as curators or case makers of this emerging art

landscape we are seeing. there is no leader, so basically people come together, pull their capital, and then democratically vote on where that capital goes and basically use it as a way to crowd source various collection strategies through a completely democratic system. caroline: the -- be undemocratic and give us your viewpoint to because i know you cannot speak to the rest of your dao, but be a case maker for us. initially, i got it, i saw the digital arts which you could own and have these beautiful tv screens, and i understood the music and collectibles, but then we get into fake houses and into nft's made of tweets and stories, and i am understanding the debt that is a trend and how you think it will sell. priyanka: beauty is in the eye of the beholder. people are excited and when you are getting an nft you are

getting a token that is tied to a media object like arts, music, and any digital contents. if people want to see value in it, i think that is great. there is a lot of value floating around, but what is beautiful about nft's,, it is giving creative workers and this creative class online that we have seen bubble over over the past decade the ability to support themselves digitally. it also gives the holder of these works to prove that they are owners that they could be a cultural icon eventually are possibly have some sort of value tied to it. for example, if you are an enthusiast or case maker that can prove that you are an early supporter of someone like francis bacon, that has social and economic value over time. joe: it is great to support its art and creativity and all of that stuff, but what if someone wants to make a lot of money?

how would someone go without to facilitate what is hot? how would you think about this question or approach of the question of where lasting value would be? priyanka: it is a good question. if you individually want to go check out a marketplace that has these nft's, and pick what you would like, based on your respective budget, there are billions of of markets, what dao does well as it cuts through the noise a little bit so you have this community of about 60+ people come together, crowd sourcing strategies, kind of figure out what artists, as a community, they want to signal to the rest of the general internet. that is kind of a special way to collect. caroline: what is the latest thing that you guys from a

crowd source perspective chose to invest in? were you able to say what you decided to invest and why? priyanka: our entire collection is publicly available, but recently, the members of the dao have been excited about something called crypto pump. 10,000 pixelated characters that represent different rarity t raits. they are generating tons of value. joe: what else would start simple art? you have this image whether it is the crypto punk, people talk about end game items or end game -- what are the next assets that could become a part of the ecosystem? priyanka: i would say that the flamingo strategies actually spanned that as well, so what we

were talking about before as far digital arts, there is a live commissioning of digital arts by this emergent artist class online. there is also, as you mentioned, crypto punk collectibles. to your point with gaming, there is quite a bit happening. you can imagine the amount of value that exists in gaming. nft's give you the ability to unlock that value. with skins or fashion online, you can flow from one meta-verse to another. you can signal that through a digital museum or gallery, and flow from one space to another, almost like a ready player one reality. caroline: do you worry that the frenzy and some of a the silliness around nft is going to be a negative headwind in the

same way that the centralized tokens? were a few years ago? priyanka: just like anything else, people are excited about this and there is a lot of new people coming in. we are seeing an outpour that she mentioned "new york times," "time magazine," and many media outlets playing around with this. we are in early, early days. we are going to see a bunch of awesome, amazing different things, but also probably some bizarre things emerge with people leveraging nft's. we will stay tuned. as the years go by, i am sure we will kind of understand they landscape little bit better. caroline: definitely, we hope you are able to steer us at times. priyanka desai, fascinating

stuff. joe: we need to nft a whole episode, or of our podcast, "what'd you miss?" you can check it out with all of our best interviews of the week. caroline: that does it for "what'd you miss?" joe: bloomberg technology is up next.

emily: i'm emily chang in san francisco. this is "bloomberg technology." in the next hour, bloomberg broke the story. the first time they went public before the implosion. the company has regrouped, reorganized and is still planning on a public debut. we have all the details. plus, speaking of