conductors are meeting with the administration, including the leaders of general motors and ford. the white house said there is no short-term fix for the chip shortage. automakers want to get chips for their factories. today, democrats will consider the president's $2.2 trillion spending and tax proposal. it is up to the house and senate leaders to determine how to package the proposal. the american jobs plan focuses on infrastructure and some social measures. the president is expected to ask for another investment in programs focused on health and families. iran has blamed israel for an attack on its power network. it comes at a time when diplomats are trying to revive the international deal that contained the country's nuclear program. iran says it centrifuges were damaged.

israel is not denying their involvement. in germany, they chancellor's christian democratic union party has backed -- as the conservative choice to succeed at the chancellor, setting up a clash with their smaller sister party. their chairman also wants to run. the election will be in september. global news, 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. i'm mark crumpton. this is bloomberg. ♪ ♪ >> it is 1:00 p.m. in new york, 7:00 p.m. in berlin, i am matt miller and welcome to "bloomberg markets." here are the top stories.

president joe biden is meeting with the ceos about the critical shortage of microchips, an issue affecting companies worldwide, and especially the all-important auto industry. and the post vaccine workplace is taking shape, but what does it look like? we will talk to the ceo of jll, one of the largest players in commercial real estate. we will talk to him about the return to work projections and the after effects of covid-19. for some eco-last months, maybe even a lifetime. we will talk to brian foster, the ceo of bioincept. the s&p has been swinging back and forth today. it's relatively flat right now. but it is holding at a record high. the u.s. 10 year at 167.11.

and we are getting results from the option now -- auction, 1.680. we will talk about that throughout the program. bitcoin is trading up 2.5% right now at $59,795, so right around the $60 mark -- and gold continues to drop, going down to 1732.48. this afternoon, the white house is meeting with ceos from companies like intel, samsung and ford to discuss the global chip shortage. bloomberg has been covering the constrained global supply of semi conductors and its impact. here's what some executives had to say about the chip crunch.

>> covid forced everybody to step back from the industry and it induced a radical increase in demand. >> the last year has been difficult to deal with. >> there's not a single industry that is not or has not been impacted by the semi conductor shortage, from automotive's to homes. >> the whole industry is affected. production has been too low for all players, like the automotive industry and consumer electronics. >> an industry that was increasing in demand last year, particularly with the lockdowns, but the automotive industry was really at a standstill, and since then they are in catch up mode. >> we are working every day with a cross functional team to look for opportunities to minimize the impact, so we will continue to do that. it's a year of execution.

the issue with the chips is a short-term and we will work through it. >> i think we can navigate through it, still being able to hit our retail targets this year. matt: so, a lot of auto industry executives talking about the chip shortage. our reporter ed ludlow joins us out of san francisco. he covers the auto industry as well as tech. what are we going to get out of this conference? any substantial moves to ramp up production? ed: no, no moves. the white house has said there will not be a cure all coming from the meeting. this is an opportunity for those participants and customers to air their grievances about the global supply issue. from biden's point of view, it is about communicating parts of his infrastructure bill that he

thinks will address the supply issues long-term. what's been highlighted is the bottleneck, the vast majority of manufacturing done in taiwan and in south korea. and a lot of the bill is about competitiveness. and the question will be about how long-term the capacity can be rebalanced, bringing it back to the u.s. matt: so, we have heard some announcements about on shoring production to some extent. intel came out with a $20 billion plan to build factories here. is there any hope that this kind of manufacturing, or is there a desire, for this kind of manufacturing to come back to the u.s.? ed: the way that you manufacture semi conductors is so intimately tied it to the quality of the product and margin the company earns on it. it takes time to install all

plants and tool the machinery. we have a chart that shows the planned investment of intel, again samsung. they are going to spenllions of dollars, five times what intel will invest. so from a political point of view the question is, how can joe biden bring it back? what you're looking at is taiwan's exports. they have the biggest player in the world. so you can see nine straight months of gains in exports. it is not just a volume, it is the dollar value of those exports intimately tied t theo supply shortage we see. right now, the white house is an arms length from being able to address the supply shortage and are the only way to deal with it is to bring production back to the u.s., but if there is one thing we can agree on is we are not equipped. so what influence does joe biden

have with those companies to make the fix long-term. the chipmakers and automakers want him to earmark funds, but it cannot happen this week. a lot of suppliers are outside of the u.s. matt: ed, thank you for your coverage on this. ed ludlow coming to us out of san francisco. i want to talk about something that caught my eye, and it is in ed's universe, microsoft made a bid fo nuancer -- for nuance communications. and the region they have in health care is -- reach they have in health care is astounding. a senior analyst points out that nuance's technology is available at over 300,000 institutions. 90% of hospitals use it. that is a massive market share.

300 million patients' stories are captured. so that means that doctors, surgeons, when they are looking over a patient's case, they can speak using everyday language, like i am right now, and what they say will be, with artificial intelligence, taken down as if you had somebody who knows what they are talking about taking notes for you. massive amount of people using this, but my question is can it be used in other industries, like taking a motorcycle to a mechanic. he would be able to speak about the problems with the carburetors and that would be recorded. you can think about the financial industry when you are analyzing a portfolio, being able to do the same thing. interesting stuff with this microsoft purchase. the stock of the hour now.

radical group that is taking a closer look. ritika: this is a big bet in health care technology and artificial intelligence. they will be using this technology that they developed for apple. so, as you said my doctors will not have to take notes, conversations with patients will be electronically transcribed. it will be much more efficient and a big game changer. and nuance is getting six to percent of the revenues from the health care industry. and the other thing to take away is the sheer size of this deal. this one is at $17 billion. and it will include the debt as well. that's huge. when you think about it, it would take microsoft only four months of cash flow to pay for it. it adds to its portfolio.

it wants to continue with this m&a ride. it cannot come at a better time for microsoft because nuance's profits, they plunged in 2020, but we are looking at a big improvement here with a big boost expected for 2022 and beyond, because there's a lot of demand in this upcoming space. matt: absolutely. a behemoth like microsoft takes over, they will be able to do a lot without marketing budget. that's the stock of the hour. as vaccines roll out, what is the outlook for returning employees to the office? we will discuss with the ceo of jll, next. this is bloomberg. ♪

matt: this is "bloomberg markets." in the u.s., 180 7 million doses of the covid-19 vaccine has been administered and 90% of the adult u.s. population will be eligible for the shop by next week. what does this mean for companies trying to bring employees back to the office? joining us to discuss is the ceo of one of the largest players in commercial real estate, christian ulbrich joins us. he runs jll out of frankfurt. you are in germany. we will get to that. but the u.s. is well on its way to a recovery. do not think that is overstating it. what are you hearing from clients in terms of bringing workers back? christian: i think everybody is

looking forward to bringing their people back to the office. and the vaccinations are key for that, because employees have to feel safe and well to get back to the office, so this is connected to the vaccines and getting back to the office. matt: what kind of demand do you see for growth after this pandemic comes to somewhat of an end? for a long time, there was speculation that working from home was not so bad and there could be a new model on the others of this. christian: what i think people are really looking forward to is getting back to the office, not only on the employer side, but the employee side. offices are seen as collaboration spaces and centers of innovation. they also provide opportunities for social interaction and engagement, learning and

teambuilding activities. if you have started in a new company, you have not seen your colleagues physically through the pandemic, and that is not a great experience, so i think everybody is keen to get back into their offices. matt: what do you think companies will be paying for square footage by the end of this year? is it going to be a drastically lower price than we saw before the pandemic? christian: well, even that area, the k-shape, is probably true. you will see very successful companies will bid harder for the best spaces and they will keep rents up, maybe even higher for the best buildings. and for that space that is left, rents will fall. so despite the bifurcation, space will be visible and

companies will make their choices. the most successful companies of each industry are focused on getting the best space for their employees. matt: are you seeing bifurcation between european and u.s. markets, as the vaccine rollout has been much slower here on the continent? christian: yes. we saw that over the whole time. we saw cultural differences. people were more cautious in the u.s., especially in silicon valley. also in your, chicago -- in new york, chicago and boston. whereas in europe, over the last summer, there was strong activity back in the offices, especially on the continent. that has changed. obviously the situation in

europe is not great right now. infection rates are high. so, in the u.s. we are seeing already the return to offices, where as in europe, especially in the u.k. and in the netherlands, those offices are closed. so there are differences, but i am sure once a vaccinations ramp up in europe, we will see people get back to their offices. matt: it was reported last week that jll will take over 100,000 square feet in the city of london and i wonder what you think this means for a commitment to what really has been seen as a global financial hub until brexit. christian: london will get back as one of the key cities of the world. clearly it has been impacted by brexit. and is impacted by brexit. and it has been impacted by the

pandemic. but it is more of the best cities for doing business and the quality of life is very high. so i have no doubt that london is the winning place going forward. we have decided for new space for our company, and the most important piece of it is this will be one of the most environmentally sustainable places you will find in london. we want to make a statement there that you can get into buildings that are environmentally friendly and comfortable for your employees. matt: we built a pretty sustainable building on queen victoria street recently, so you have some competition there. so let me finally ask about the asian market. you are looking at a potential sale of very china management business. i'm sure you do not want to comment on that right now, but

what is the demand like for that type of business in asian markets? christian: china is such a relevant market. we have over 18,000 employees there. the market has changed over the last 5-10 years, it has become a mature market now. the expectations in shanghai are no different than the expectations of those in western europe or the u.s., therefore we have to refocus our model and become much more localized in our approach. and that is what we are focused on what the next area in our china business. matt: ok, thank you. that is christian ulbrich, ceo of jll, talking about the commercial real estate industry. u.s. covid infections are climbing for a fourth straight week, the longest streak since november. we will discuss the rise in cases and of the vaccine rollout

with dr. anna durbin, next. this is bloomberg. ♪

matt: this is "bloomberg markets." as vaccinations surge and communities reopen, the weekly death toll rose for the first time -- fourth -- first time since february. here to tell us why is anna durbin from the johns hopkins school of public health. why do you think we are seeing infection rates rise, even as a so many people have gotten vaccinated? dr. durbin: i think it is probably because so many people are getting vaccinated and we are looking at positive effects of those vaccines being available. people think everything can go

back to normal right away, when it really cannot. we have not vaccinated the majority of the adult population yet. yet things are opening up, people are -- from a year of covid fatigue -- are getting out there, congregating with people and not wearing masks as much as the you should. that has a lot to do with it. we are also looking at, particularly in michigan, a variant that is known to be more transmissible really taking its toll. i expect we will see that go up. matt: i was just going to ask about that. um, are these vaccines, which have shown incredible efficacy with the original variant, are they going to show efficacy with the new strains? dr. durbin: that is a good question. i think it is important to note that we have real world evidence of efficacy against a variety.

we know that the u.k. variant, that so far the vaccine used there has been very effective against that. when we see how well the antibodies attack, like johnson & johnson, moderna, pfizer, all of those antibodies recognize and work well against the b- 1-1-7 variant. the south african variant is different. we know that the vaccines will not protect against infection as well, but the encouraging data we have out of south africa is experience with johnson & johnson vaccine, which was 100% effective against severe covid and death caused by the south african variant. even though the antibodies to not -- do not work against the

variant as well, we think all the vaccines will be effective against severe and hospitalized covid caused by the south african variant. matt: one of the questions we repeatedly get, especially from viewers who have gotten shots, is what can you do once you are vaccinated? can you still transmit the virus? that's something we can hopefully talk about at another time. i appreciate your insight today. that is anna durbin, professor of international health at the johns hopkins school of public health. that is supported by bloomberg lp and bloomberg philanthropies. coming up tomorrow, we will get the latest -- ♪

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mark: i'm mark crumpton with first word news. in the u.k., non-essential shops

and salons are once again open, plus outdoor dining. since early january commit research and have been in place in england and other parts of britain. since then, hospitalizations and deaths have fallen. more than 60% of british adults have received at least one vaccine dose due to a mass vaccination effort. the inviting administration is scrutinizing china's plan for a digital currency. it could kick off a long-term bid to topple the dollar as the world's reserve currency. right now it only makes up a fractional foreign-exchange compared to the dollar. president biden's spending and tax proposal is being taken up by democratic leaders, as they began considering the president's proposal. his american jobs plan focuses on structure and some social measures. the president is expected to ask

for another massive investment in programs focused on health and families. a year since the coronavirus became a pandemic, 8.4 million fewer americans are working. one reason is fear. about 4.2 million adults are staying away from work because they are afraid of getting the virus. the wall street journal says that suggests the labor market may not fully recover until the pandemic has been tamed. global news, 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. i'm mark crumpton. this is bloomberg. ♪ >> i'm amber.

welcome to "bloomberg markets." matt: we are welcoming our bloomberg audiences each day at this hour. here are the top stories we are following. bracing for inflation, the monthly consumer survey shows the highest inflation expectations in years. we will discuss what to expect ahead of tomorrow's big cpi print. and we will talk with the ceo of bioincept about treatments for those dealing with the long-term effects of covid. and coinbase nearing a $100 billion valuation ahead of its listing on the nasdaq this wednesday. we will discuss what to expect from the fast-growing exchange at the center of the crypto frenzy. amber: ok, so the a lot of exciting stuff on deck, and maybe that is why we are looking

at subdued trading. the dow led lower by intel in reaction to the nvidia news we saw. nvidia is trading up. for all the talk about the u.s. economy, perhaps reaching an inflection point. according to jay powell, it is relayed those reopening stocks, like travel stocks, that are moving today. all ahead of the big show tomorrow when it comes to economic data, a key read of u.s. inflation. further, we heard from the president of the st. louis fed about -- earlier, we heard from the president of the st. louis fed about what he expects. >> i think we will see more in 2021 than what we have seen in recent years and i would like to see that flow through to expectations, so they become better centered at 2%. we have missed inflation target to the low side most of the time

since 2012. so, we want to re-center and put those expectations close to 2%. this is an ideal time to do that. amber: let's bring in the chief u.s. economist for bloomberg economics. the fed is saying inflation is coming. businesses are saying inflation is coming. as well as leading indicators. is there anything at this point that will surprise you about the inflation and put we will get tomorrow and through the next couple months? carl: first of all, good afternoon. what would surprise me i would say is if we start to see some real endurance in the inflation pressure. of course, this quarter, we could see double-digit growth, possibly 11% annualized growth in q2. that type of growth in an

economy accustom to growing at a 2% pace of course will be causing strains in supply, chains and labor shortages, so we are kind of in the fog of war at the moment in terms of deciphering the trends. we have to wait until this fiscal stimulus will run its course, by about midyear i would say, and all these distortions of the year on your comparisons, to a very weak economy at this time, fall out of the tabulation. when we get to the back half of the year, we can start to read the data to see if we are just seeing the reopening of the economy or a more substantial upturn. matt: we have seen inflation not in the core headline number, but it has really come through from food and gasoline. this hits hardest those who were

hit hardest by the economic downturn during the pandemic. is the fed going to acknowledge this? is there anything they can do about it? carl: there is nothing they can do about the short-term volatilities in the food and energy prices. energy prices in particular have gone up very sharply in the last months, we will see that tomorrow as well, looking for just a 2/10 of a percent. and given what is happening with gasoline prices. the fed does not have an oil well, so they cannot do anything on that front. they can work with inflation trends over longer periods through interest rate policy. and what they can do -- because it does tend to be lower and middle income households, a

larger share of the budget goes toward energy and food, and they were certainly hit harder during covid. so the one thing the fed can do is keep their hand on the throttle a little bit longer into the recovery. which they have vowed they will do, to make sure the recovery is not just for the top echelon, but they will wait until the recovery is broad-based throughout the economy. that is a point jerome powell has made time and time again. matt: dan curtis put together a chart showing the base effects. this is one i am betting you will see more of tomorrow. this is a preview for viewers. the top line is just cpi, the bottom line shows, in blue, what

we saw last year. you can see the dip. this is why we will probably see a spike in the reading that we get tomorrow. do you think the market has discounted this? has everybody said, no big deal, we will at this one pass? carl: we are all learning or reviewing the term base effect, so i think this is widely priced into the market at this point. everybody knows the cpi at this point last year fell. so if we are looking at a year on year comparison, of course we will see a big spike. but there are ways to get around it. one, strip out the most volatile components and focus on the core. if you look at the core over the last 10 and 15 years, they basically run at the same pace, so we are not cheating and looking at the lower number, we

are looking at a less volatile subseries of the cpi. another way to look at is the three-month change, six-month change and nine-month change, avoiding dramatic swings in the early stages of the pandemic from last year. when we look at those metrics, everything is pointing downward, and that tells you that there is still not a lot of inflation pressure on a sustainable basis in the economy. now, we will get a hot flash over the course of the next several months, but until we see some real wage pressures in the economy, price pressures will prove to be just a flash in the pan. amber: thank you for all of your insight, carl. that's our chief u.s. economist for bloomberg economics. as the vaccine rollout has been one of the strategies to deal with the pandemic, another is treatment of those who have already been infected,

especially the so-called long-haulers. we will talk with the ceo of bioincept, looking at exactly that solution, treatment, for the long-haulers. brian foster will be joining us. ♪

matt: this is "bloomberg markets." i'm matt miller. along with amber kanwar. justin trudeau said any adult that wants to be vaccinated can be fully inoculated by the end of the summer in canada, which seems like a long way off, but if canada can really come through with this, that's a great thing for the economy there. and for the pandemic.

amber: absolutely. it feels like we are living in a very different univers in canada compared to stories of reopening in the u.s. and in the u.k. in many parts of the country, we are looking at the worst number of cases we have ever seen. a large majority of them are becoming variants. this when we are just kickstarting a large vaccination drive. and they have already had to rip up the playbook. they were trying to do vaccines by age, but as hot zones have appeared, they have had to totally readjust where and who they are vaccinating, so there is chaos right now. and we are in some of the strictest lockdowns we have seen as we rush to contain the numbers. matt: well, we still see cases surging elsewhere as well.

four weeks in a row in the u.s. the biggest problem here, if you survive the virus, many people who have gotten it have reported long-term effects. joining us to talk about this is brian foster, the ceo of bioincept, a new york-based biotech that was one of the first to look at this research last march. this really hit home, because growing up in the northeast i contracted lyme disease, like almost everyone else in my family and at the time we thought, just hit it with drugs and you are good in a couple weeks, but we noticed years later that there are long-term effects that become incredibly difficult to deal with. are we going to see something similar with covid? brian: thank you for having me. yes, i think that you are going

to see -- what you are seeing is the emergence of a chronic disease with covid patients. it was just reported that nine months post infection they are seeing 30% of patients with surviving symptoms, whether it is chronic fatigue, shortness of, brain -- breath, and brain fog. w are seeinge -- we are seeing this all at once, so it will get a lot more attention, or soon will. amber: are you looking at, and emerging characteristics of the long-haulers or are the symptoms popping up in surprising and unpredictable ways? brian: i think it is the latter. some of it is predictable, but what we are seeing from the

affected community as we work toward fundraising to start a long study, is that there's a core group of symptoms, they run across the four body systems like pulmonary, neuro-, g.i. tract and typically cardiac inflammation and others. but we are looking at a broad range of symptoms in some, isolated in others. bioincept is focused on treating autoimmune diseases and trading with tissue regeneration -- treating with tissue regeneration. we have just seen an emergence of lapsing diseases. it turns its immune system on itself, which causes severe symptoms, illness and then obviously death in some. the question is how do you treat

those patients afterwards. that is where our focus is. matt: you come from a wall street career, not a biotech career. you are the vice-chairman of jp morgan's private bank. you have been called one of the best private bankers in the country, so how did you make this switch and do you feel like those ties have enabled you to be better equipped to raise funds for research? brian: i left jp morgan after i had been there for 32 years and i thought it was time to do something different. i made health care investments, because i think it is an interesting area and biotech seemed like a unique opportunity to treat a broad range of cases that have autoimmune disease, and most importantly to promote tissue regeneration, and ultimately return to function. for me, it was -- i was

presented with the opportunity to become ceo, to focus on commercialization of the drug therapies. and so it's an interesting opportunity to perhaps give back to society. i have friends that have autoimmune disease, and i myself have had one, so this is a unique opportunity to work with what is an incredibly unique therapy to make a huge difference. matt: any chance that bioincept goes to market in the near term? it's a great way to raise funds and right now the markets have an appetite for this kind of company. brian: our path forward is we are raising money for a study in covid, but i think we have drug potential, as well as opening the door to treat lots of patients. so we will likely have a public

listing. we think it is a tremendous opportunity for a platform like ours. what has been surprising, as we have worked through this, is 30% of patients having long-term symptoms -- that's surprising to even us. the nature of autoimmunity is going to change. for those folks who have been infected, we are looking at increased autoimmunity for those who have had the disease. the pressure is on. employers and the governments will be surprised at how many people cannot return to work, or will become part of a long-term care with a new chronic disease. amber: thank you for sharing your story with us. that is brian foster, the ceo of bioincept. on the ipo front, one we will be watching this week, coinbase,

targeting a valuation of $1 billion. we will talk about that when we come back. ♪

>> this is "bloomberg markets." one thing we are watching for this because the ipo of coinbase, slated to go public on wednesday at a valuation of $100 billion. that will make it bigger than what it will be listed on. joe, you watch the crypto space so closely, but tell me what are you watching for in terms of the success of this ipo and what it means about broader adoption? joe: this is no question that this will be massive. there's incredible interest. it will be one of the easiest

vehicles that will exist for people in the space to get access, to get crypto industry exposure, basically. but does this sap away other flows that are trying to find exposure elsewhere or is this just the beginning? that has always been the thing, within the regulated environment, getting a good quality -- getting good quality crypto exposure has been difficult. matt: that was exactly my first thought. does this pull $100 billion out of flows? there's a time when that would have destroyed them, but now not so much. you put them altogether and we get to multiple trillions of dollars, joe, so who is going to buy this? institutional investors or wall street bets? who's the end-user? joe: i think it will be a mix.

as you note, the coins themselves is somewhere around $2 trillion, so in this context it is big but not crazy. you could make the argument that this saps money away from flows, or you could say this is legit, there is no more of a reputational risk in being associated with crypto. you could say what else is out there, but it definitely feels like a graduation of sorts for the industry. matt: my broker does not even take my calls. i'm not getting any syndicate if this is a legit ipo. this is democratization, are we excited about that? joe: this has been gathering steam for a while. and i am not surprised that coinbase -- you know, they are

listing on the new york stock exchange, or the nasdaq i think, so there's still the legacy -- one will get their share. but part of this whole thing is cutting out the middleman. matt: joe weisenthal, thanks for joining us. catch him on "what'd you miss?" that will be at 4:30 p.m. new york time, as usual. amber, thank you for joining us. i'm matt miller. this is "bloomberg markets." ♪

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mark: today, congressional

democrats will start considering president biden's 2.2 trillion dollars spending and tax proposal. it is up to house and senate leaders to determine how to package the president's plan. his plan focuses on infrastructure and some social measures. the president is expected to ask for another massive investment in programs focused on health and families. next week, new york city's mass transportation authority will sell $1.3 billion worth of bonds. they will be repaid with a payroll tax. as the first time the largest public transit system and the united states has offered long-term by the revenue. the deal gives bondholders a way to invest in the mta. it also helps avoid the agency's most critical problems. brazils hospitals are being crushed by the high number of covid-19 patients. this as the south american giant gets hit by a more contagious variant. in a 24 hour.