proposal as a once in a generation investment in america. and he says the infrastructure part of it would create millions of jobs. by the fall, president biden is likely to see some version of his $4 trillion economic plan passed in congress but he faces criticism from some splintering democrats and republicans. infrastructure investment is vital for businesses which come from u.s. commerce secretary gina raimondo as she defended the biden administration's proposals to raise capital gains tax rates and some corporate tax breaks. >> the investments that the president is calling for an infrastructure, in broadband, in job training, in basic research are absolutely vital for american businesses to remain competitive and necessary and have been delayed for far too long. mark: republicans called the

increases a job killer and secretary remind those as it doesn't discourage investment. just an sec. gina raimondo says it doesn't discourage investment. the u.s. embassy in moscow says it will slash visa and consulate services. the services will be reduced to a minimum. russia imposed new limits after the u.s. announced new sanctions and expelled 10 russian diplomat. global news, 24 hours a day, on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in over 120 countries. i'm mark crumpton, this is bloomberg. ♪

amanda: welcome to bloomberg markets. matt: not you and i together, we have only been together since valentine's day but overall, we've been here for three years and we welcome our audiences together at the same time each day and here are the top stories we are following. u.s. personal income sword the most can margin monthly records since 1946. we dig into what drove that rise plus, wall street is reacting to joe biden's tax plan and we will discuss mixed reactions across the street and eight to david hunt for his thoughts on the proposal. as the nfl 2021 draft kicks off, we will speak with the ceo of zap, the company that is allowing one of the kansas city chiefs players to convert his entire salary into bitcoin. he is not as crazy as it sounds.

amanda: we will be the judge of that. let's check on the markets. it's a funny day out there with lackluster turnout for stocks. maybe it's the mindset but these are not markets that are responding to what we saw from the big tech earnings we have seen which have been pretty darn stellar. energy is the weight on these markets and is leading declines at one point 75% less. -- at 1.75% less. even though we have very strong turnout from amazon and unbelievable profit growth and other big tech names, including decent numbers from apple and we have heard from facebook, we are seeing a weight on the whole group. check out the degree to which they have beat expectations on the top and bottom line. it is worth noting the bottom line beats are pretty stellar. gross margins at these companies

are expanding. apple is now 42% and amazon is 44%. you wonder if it's sustainable, take a look at the sales growth. there is real, solid sales growth happening so topline growth into new products and they are high margin products. so far, investors are not saying we will be in for the long haul and send them higher. they might be taking profit today. matt: very interesting, they knocked the cover off the ball but it's not really showing too much in the current trading. digging into the u.s. personal income numbers from march, we saw more than 21% surge in personal income but that follows the 7% decline in february. purchases of goods and services increased more than 4% last month. that is the most since june but the number that jumps at you, the biggest jump in personal income since 1946.

we were not even born yet. amanda: thanks a lot. if you notice, there was a big drop off in february and you wondered what happened there. this chart is the role that government receipts are playing in that personal income. you get that government spending is playing a role but look at it in terms of the jump in seeing what shows up beyond personal income. the question is being asked if this starts to kick off inflation. is it overdoing it? boy, is the government ever present in the wallets of americans right now. matt: it's definitely a question. the comments we have gotten from people like marty schenker as well as the former treasury secretary larry summers on this basically amount to, this is a completely new era. we have not seen anything like

this in the u.s. since the beginning of the reagan presidency. yesterday, steve ratner compared joe biden's new plan to fdr's new deal, saying in absolute terms, even in today's dollars, this is a much bigger spend any more comprehensive program. it's very interesting and all of those comments may have been on david westin's show so watch at 6:30 p.m. tonight. coming up, more on joe biden's tax plan as well as his spending plan with the cdo of -- with the ceo of pgm this is bloomberg. . >>

>> i don't believe every tax cut is good.

>> a lot of us were surprised to much of they were cut. >> we are coming off of a time when taxes were cut for corporations and individual tax increases were not responsible for corporate earnings. it looks like the economy is heading off to the races here. >> the incentive of the tax savings to make capital investment creates jobs and raises living standards. if they take these incentives away, i think it's insanity. >> that could have an impact on corporate taxes. >> from a corporation perspective, the amount of investment that actually gets made because people worry about what the text structure will become a we will have an issue. >> we are in for a great perio of growth andd economic activity around the world and the expectation is that will prevail over the text situation expected. >> we are used to paying taxes

and if we have to pay a little more, that's fair and i think it's ok. >> i'm not surprised by anything about this and i think the market is not surprised either. >> it's a long way until the get solvent. matt: this is bloomberg markets with amanda lang. those are in number of differing views. that's the reaction to president biden's tax plan. you didn't hear a lot of outrage. you didn't hear terror and i want to talk about that with our next guest. we will bring in david hunt, the ceo of pgm. it's interesting you haven't heard an incredibly angry or scared reaction. of course, they were campaign promises the president is following through on but you

don't always see presidents do that when they come into office. what's more -- what's your view on the potential tax increases? >> the market so far has focused far more on the stimulus nature of these bills than they have and how they will be funded. i think people do expect taxes to go up in some form, shape. i think that is basically built in so most business leaders and investors expectations at this point. secondly, i think most people view what's been shared by the administration so far as simply an opening bid and what will be a complicated and probably closely fought wrangell over how this will come out. the actual ability right now for any of us to really project what the impact of the taxes are and how much it will be corporate versus the other sources is very hard. right now, the markets are

looking through it. amanda: it will be a while before we know what any of this will look like in congress. having said that, whether we are looking at the u.s., canada, the u.k., it feels like we are in a new era, a new government interventionist, big taxa kingdom redistributive era that might roll back some of what we saw in the last 30 years. from investors point of view, do you worry about that word do you take it as it comes? >> in think you makeo a terrific point. , many people have looked at the proposal so far and have begun to compare to the new deal. even adjusting for inflation, as to what's proposed, it's far larger than what fdr did. without a doubt, there is real concern that this is too much of government into many ways.

the real thing investors are looking at is whether or not this spending will be on things that need to improve productivity. if we end up on the other side of this with a lot of bridges to nowhere and roads we don't need and empty reports, we will all feel, regardless of where the taxes came from, that this was not good. on the other hand, if we can put the country on a different trajectory on productivity, i think that will be meaningful i think people would then feel much better about how their tax dollars were used. matt: steve ratner yesterday was talking to david and said this is bigger than the new deal and it's an incredible science experiment he is excited to see. he is optimistic about america and about the u.s. economy. in europe, we don't really see

this kind of experiment playing out. people talk about the hamiltonian moment of european union nations getting together with a 750 billion euro package which is teensy wednesday and that hasn't started to go out yet. that still has to be ratified over a year later. what kind of bifurcation will we see, especially of the u.s. experiment is successful? >> that's a great point. that is one of the really big trends we are seeing right now which is that we have a three stage or three-pronged approach right now to the recovery. on the one hand, you have the two largest economies in the world, the u.s. and china, on a very fast v-shaped recovery with china probably ahead. you have your which is not had the same kind of fiscal stimulus and has struggled more with the vaccine rollout, probably a solid six months behind.

europe just reported they went into a technical recession. then very regrettably, you have the terrible situation we see unfolding in india, brazil and other developed economies. what we are hearing from investors is that there is real belief in putting more money to work in the united states economy over the next couple of years and we will outperform. secondly, there is the belief that there is not enough exposure to china given how well they've done and how little actual weight they have in the indices and there is a real wait and see as to how the emerging markets will play out stuff that is different than what you would have heard in 2019. amanda: it sure is. i have to ask you about the speculative nature, we heard from the dallas fed president that maybe it's time to start thinking about easing up on qe because of speculation. you have made comments about not

investing in spac's. is the market to frothy? >> it's a fascinating time. if you look at the overall level of markets, you would have to say they are pretty crazy. everybody likes to look at the equity markets but yesterday, investors -- investment grade corporate were tied to the gnc. overall, markets are expensive. at the same time, the level of creative destruction we have seen around the world but particular in the u.s., has also been at all-time highs. active management has actually delivered some of its strongest returns in over a decade. in 2020, pgm were era strongest returns and that continues this year. if you are doing the security selection well, there are big winners and losers coming out of this and there is lots of money

to be made in the markets today. matt: you have a ton of money under management. something like $1.5 trillion? there is giant chunks of institutional money but what about your wealthy clients? have they been concerned over the last few days? are you getting calls from panicked investors who want to sell now before the capital gains tax steps up or changes kick in? >> i think it's been a trend we have seen since the pandemic started a year ago. maybe it's because many people went through the gfci remembered how painful that was. there really has not been levels of panic in any of our customers. certainly not in the large institutions, not really in the high net worth areas. for the most part, people are sticking with their strategic

allocation and changing some things at the margins but they are actually of the belief that the next couple of years will see some good, strong access returns in the market. amanda: it's great to have you with this, we appreciate your time. >> thank you for having me. amanda: a football player for the kansas city chiefs wants to take his salary in bitcoin. we will talk to the ceo of zap next.

amanda: this is bloomberg markets with matt miller. into the fray whether bitcoin is hyped up and overvalued. the kansas city chiefs player is planning to take his entire base salary, 920,000 dollars u.s., in

bitcoin. you said earlier that this makes sense. why don't you tell me why you think so. matt: i'm not sure it makes sense. i am not forecasting the future of the value of bitcoin but i think it's interesting in that this is not some lunatic sports superhero that is just buying bentleys for everyone. according to his financial advisor, he is a fairly conservative dude. he still drives the same 2009 dodge pickup he bought in high school and has been saving his money, putting it away and is known as quite frugal despite his wild hair. it's interesting he made this decision to translate -- transfer his entire base salary into bitcoin. the numbers sound so much smaller.

he's only going to get 16 point -- 16.2 bitcoin at today's rate. amanda: that's very true. it gets to our next guest because in order to do this transaction, he needs a way to convert. that is done in this case with a company called zap and the ceo is with us now. let's start with the kind of attention this brings to your business and smart contracts. he could have asked to convert his salary to anything he wanted , even the japanese yen, so it's a bit of a giving but the smart contract pieces real and important. >> yeah, thanks for having me. i agree, as a company, we pride ourselves on delivering the best financial experience on top of the bitcoin network. i don't think our company is the headline of this story. i think what sean is doing is a

direct reaction to the macroenvironment and the plane as they monetary expansion happening in the united states and all over the world and the fact that asset inflation has reached over 20%. the everyday citizen is currently operating their life a loss. if you are not getting a 20% raise year-over-year, you are operating at a 20% loss. you have to preserve and protect your wealth in something else and i think what sean is doing is to grow it and i think that's why he is doing it and that should be the story. matt: i always feel sorry for the guy who bought pizzas with bitcoin. he paid something like $260 million and the number continues to grow for two pizzas. then we started hearing about people who were able to buy lamborghinis or ferraris with bitcoin. it's not terribly transactional and there are better crypto's for that.

people are now making big purchases like houses or apparently getting their salary in the nfl. where you see this going? >> let's talk about what that means. bitcoins is using dishes being used as a savings technology. it was engineered by human beings, the first money we engineered to solve a specific problem and it was to preserve and protect wealth. in an event where you have monetary expansion -- expansion it reached 20%. my dad paid $9,000 for duke university for a degree. that same degree cost over at quarter million dollars. it's the house you dream of, the car you've always wanted, the vacation, the education, the health care. it's getting over 20% more expensive year-over-year and you have to protect your wealth and something else. traditionally, it's real estate and precious metals but bitcoin

is the best engineered asset for this exact problem and it's showing itself as the best-performing asset of all time and will continue to be and whether it's corporations like tesla or athletes like sean or whether his you and i that want to protect and save because i want my kid to go to university, it's a universal asset. it's most accessible, inclusive asset and promotes financial inclusion and opportunity and it's becoming a cultural phenomenon. amanda: all right, great to have you with us. the ceo of zap. that's it for bloomberg markets today. have a good weekend.