unveiling of the ford f-150 lightning. they say it will start a new era of smart connected zero emission vehicles. a grim site in india. dozens of bodies have been found floating down the ganges river. india confirmed nearly 390,000 new coronavirus cases today including more than 3800 deaths. india's government says the prime minister will not attend next month's summit in london in person because of the covid situation. in china, births felt -- felt to the lowest in nearly six decades. it adds pressure to beijing to maintain economic growth while workforce shrinks. the senses found that there was

just over 1.4 billion people in china. rahm emanuel is reportedly president biden's pick to be ambassador to japan. he represented chicago in the house from 2003 to 2009 before leaving to become barack obama's first chief of staff. global news 24 hours a day on air and on bloomberg quicktake. powered by more than 2700 journalists and analysts in more than 120 countries. i'm mark crumpton. this is bloomberg. ♪ >> i matt miller.

investors on edge. we will bring you the latest in markets. there are concerns over inflation. is that what has been driving this drop? plus, china's surging factory prices lead to global inflation concerns. we will speak with the ceo of ginkgo. let's talk to what -- talk about what is going on in the markets. we are seeing the selloff continuing. i wanted to pull out the faang index to show this is not what

is driving the drop. yesterday, we saw it come down 3.6%. the u.s. 10 year yield is at 1.62%. yields are rising. crude is not doing much at all. right now $65.16. brent is rising even less. we have an auction right now, three-year notes, allotted at a high of 7%. -- 15.77%. not the kind of auction concern we saw last in the seven year. joining us is our reporter. what do you think of the three

year auction? >> nothing to write home about in terms of concerns. i will say that this auction was expected to price about 4.6 basis points richard than last april. it was a high bar to clear. it didn't quite get there, but it was a solid auction. jp morgan wrote that they do expect this to be a relatively smooth auction in terms of the three year. we will see if that holds up for the sales we had. we have a lot of corporate issuance to get through. amazon kicked us off yesterday with their debt sales. a lot of suppliers hitting the treasury market. we have a lot of top-tier data to work through in terms of inflation and retail sales. a tricky set up for the retail market this week.

matt: yesterday was a huge hit for the faang stocks. today, not so much. what's going on? >> it's surprising and interesting to watch analysts and investors try to work through. tech had been the story yesterday in terms of what was striking the market down. it is still following, -- falling. if you look at the s&p 500 sectors, its energy, industrials, financials. those are the biggest losers right now. tech not so much. in terms of the narrative, it's hard to find a moving target. you are seeing a lot of inflation fears. real yields on the five-year,

they hit a record low yesterday. growth expectations are cooling off as your inflation expectations are heating up in that is what's trickling through the stock market right now. matt: thank you so much for joining us on that. i want to hone in on the inflation concerns and the prospect of higher rates that seems to be weighing on the market. for more, let's bring in our next guest. talk to me about what you see in terms of inflation and how transitory it is. a lot of the automakers i have spoken with a lot of the manufacturers, the ceo of siemens told me input costs are higher for them so they are raising prices on their and products.

i don't think they are going to turn around and cut those prices as commodity prices fall next year. >> i think it's going to take a while for the marketplace to get to a point where it can stabilize in terms of the supply chain. we have been through a massive shock in the global economy. a lot of bottlenecks are beginning to emerge. i do see it as temporary. i remember from my days at ford, how important those kinds of volatility metrics were. they can erupt then they disappear. i see the global marketplace really responding and reacting to those bottlenecks. then over time, those price pressures will alleviate. the markets will work if you give it a little bit of time. suppliers will start to return,

they will take her pricing and they will begin to expand their own production rates. the bottom line on this, we are through iraqi time right now to be sure. it's not going to disappear overnight. we are going to see some markets adjust. eventually, inflation will come down again. this is a relative price move. >> there's a comedy news website called the babylon be. they had a story that joe biden proposes a spending bill to research what is causing inflation to rise. clearly, that is not the case but he has proposed trillions of dollars in spending that has to work its way through congress. how can we spend this much money

without causing inflation that is here to stay? >> fiscal policy is really needed now. there is no question as i just said last year, it was an incredible crisis. now, we are in a position where we don't want to do what happened in europe during the debt crisis where we implement austerity programs. if anything, we want to go big and bold. we have a really unique opportunity right now to set the stage for the 21st century. this is not the time to walk away and implement a shrinkage policy. we have some areas in clean energy. our latest jobs modeling on clean energy really shows that

we are going to add at least one million jobs in the next five years. we have a big push, the technology is advanced and the u.s. is in perfect position. we are tech leaders. we are innovation leaders. there is no reason why we can't get some nudges going on the private sector with some added public support. there is a lot of what we are seeing in clean energy that is for the good of everybody. these are public goods we are talking about. how tight is the labor market? i think the most job openings we have seen since the year 2000 for the month of march. there has also been a record number. of respondents who were unable to fill positions. is that a concern? >> i haven't seen any good data

or metrics that really show us that the digital platform isn't affecting the openings data. i'm not sure about that relationship. i kind of discount what we are seeing there. i'm just not confident it's going to give us a good reading. i will tell you in the report last friday, we saw 331,000 new jobs in leisure and hospitality. it is growing six times faster than the national average jobs. people are going back. we have had 40 million people go back -- 14 million people go back to work since the covid downturn february through april. we are still 8 million short of where we were pre-covid. i think the labor market is

going to clear, but it's going to take some wants. >> we hope to get you back on soon. coming, ginko bioworks agreeing to a merger with a blank check firm banked by hollywood executive. we will speak to the ceo about that deal and we will bring in emily chang as well. this is bloomberg. ♪

matt: this is "bloomberg markets."

ginko bioworks is said to undergo a merger. emily chang joins us with the ceo, jason kelly. >> i did ask you about a possible spac deal. tell us now, why spac with a deal this big instead of a traditional ipo? >> the main reason for us was velocity. here we worked with the folks at soaring eagle, they have been doing spacs for over a decade. we got it done in two weeks with great investors. i could get back to building the business fast with this and we had good maturity around the funds we were bringing in.

>> kathy woods arc, what others getting in on this. ginkgo makes things more sustainable. guy understand you are trying to be like microsoft or aws but for biotech. explain that. >> the core idea is inside of every cell is digital code in the form of dna. you can read it and write it. you can program it. if you have had a vaccine, that is a piece of code. yourself rings it in, reads the code, turns on your immune system and we all get out of this mess. that's a great example of cell programming. you're also seeing things like in the impossible burger, there

is a protein that makes it taste and smell good. we have a joint venture to program microbes to produce fertilizer. those are different apps. ginkgo is a horizontal platform much like the tech industry were people come to get their acts -- apps programmed. >> we are seeing with the vaccine huge progress from this kind of technology. what else do you expect to be able to achieve? you are the organism company, but you also work with electronics and other kinds of mechanisms. how to those two things go together? > >> think about a computer. it's an amazing thing, you put different code in and you can have different applications. if you look at the industries that got disrupted because of tech, it was all information industries.

a computer moves information. a cell is programmable. he put in different dna code and it does different things. it's like installing an app. except it doesn't move information, cells moves adams around. if you look at the industries that are going to be disrupted, it is food, medicine, building materials, electronics. it's the physical things. ultimately, i think you will have a bigger impact than computers did over the last 50 years. >> your profile partnership is probably moderna helping them grow what they need for the vaccines. what else do you have coming down the pipeline. when will average consumers like us see the benefits? >> people see them almost immediately. we have a company called food works. the impossible burger, you bite into that thinking it's a veggie

burger but it bleeds. that's a little bit weird. what impossible did was they found the gene for hemoglobin, they put it into brewers yeast then you brew it up but instead of beer, you get hemoglobin. that's not the only animal protein that impacts food. think of egg protein, milk protein. vegan cheese crumbles to dust. if you wanted to have a vegan cheese product, i think what you will see very soon is more and more that are enabled by a celt that has been programmed to produce the milk protein without the count. that's going to be on store shelves. consumers will see this in more and more parts of their lives as technology makes it cheaper and faster to program the cells. >> what is your unique selling point? this is a crowded industry, but

you are the biggest player right now and you will be the biggest one that is traded. >> what is unique about us is we operate more like platform tech company. i'm not trying to launch the vegan cheese or the vaccine or the anti-biotic or whatever. i want to be the place where people come to do that work and importantly, in our facility we have 200,000 square feet to do the kind of lab work. more important, when we run our facility, it runs the scale economic. it gets cheaper as we do more of it. our bet is, we will have a tech left for future. we will touch all of the applications and people will come to us because we make it easier. >> this is where it goes back to the aws of biology. thank you so much for joining us.

you can catch emily chang later on on bloomberg technology. ginko bioworks is based in boston. you can catch a tech focus on key policy, business leaders and anchors and boston in a special edition tonight. in the meantime, let's listen to just one of the voices from the special. >> it's hard for me to wrap my mind around bitcoin being a viable currency? i see blockchain as extremely viable. ♪

♪ matt: this is "bloomberg markets." inflation concerns are not just in the u.s..

in china, prices surged more than expected in april. consumer prices remain subdued so far. joining us is an economics editor to talk about the numbers we saw. talk to us about this. >> numbers were surprising. it was a 6.8 increase when our surveys indicated people were expecting 6.5. that was the highest since 2017. a lot of it is commodities, but also there are factors like bottlenecks. what happened with the suez canal and less macro than that, people are reporting that they are having to stretch out order when basically they have to wait longer for inputs. matt: or raise prices.

i have been talking to manufacturers here in germany who have been raising prices on their customers from the higher input costs. you are saying that in the u.s. as well. does china then export that inflation? >> we have been talking to manufacturers on the mainland. there is a reluctance to pass onto the customer, but they are saying they won't be able to tolerate much longer to keep eating the costs. we are saying that the commodity component went up by a lot, but manufactured goods only went up by 5.4%. that shows you manufacturers are absorbing some of the increases. there has been some research done on the correlation between china's ppi figures and the u.s. consumer price inflation which shows the correlation can be as

high as .6%. it is tightened again. that means, we are starting to see in the data increases in chinese import prices that could be feeding into the u.s. cpi eventually. matt: fascinating stuff. thank you so much for joining us. this was a big story today and it will continue to be. coming up, remaining optimistic. we spoke to a ceo about how their company will be able to function despite higher interest rates. and in earning smith. that's next. this is bloomberg. ♪

mark: i mark crumpton with bloomberg's first word news. the head of the cdc says the

vaccination effort in the u.s. is going well, and that americans are gradually becoming less hesitant to get a shot. cdc director dr. rochelle walensky also told a senate panel today that the agency is meeting its goal when it comes to tracking a or committing viruses. >> generally, the ballpark was to have 10% of viral sequences, 10% of all circulating viruses to be sequenced. with cases coming down in sequencing rising up, we have been able to reach about that 10% mark right now. mark: dr. anthony fauci he also testified today, he said he expected to have enough data to vaccinate all children in the u.s. by the end of the year. greece is hoping to fully vaccinate all of its permanent residence by the end of june. the prime minister said today that greece wants to support its island communities and economies

while also sending a positive signal for the image of greek tourism. more than 700,000 people live on greece's 19 biggest islands. and, france's afar light leader says the country is at risk of a civil war, as she prepares to tackle pretty with -- tackle president emmanuel macron and the 2022 presidential election. she has been campaigning since january, trying to frame herself as the law & order candidate. french officials call it political maneuvering. israeli prime minister says strikes will intensify at the gaza trip -- gaza strip. israel unleashed new airstrikes this morning, hitting two high-rise buildings where militants would be. other armed groups fired hundreds of rockets at southern israel. it is the worst violence between israelis and palestinians in years. global news 24 hours a day, on-air and on bloomberg quick take, powered by more than 2,700 journalists and analysts in more

than 120 countries. i am mark crumpton, this is bloomberg. amanda: welcome to bloomberg markets. matt: we welcome our audiences, each day at this hour, the top stories we are following from around the world. investors are on edge. we will bring you the latest on markets as equity selloff amid concerns over possible inflation. possibly that is what is driving it because that might be monetary policy. plus, and a few moments, we will speak to the ceo of united wholesale mortgage. we will ask him about his

outlook for rates, housing, as well as the spac market. and, we will speak to a representative from new york about reopening the u.s. canada border, as canada's largest airline calls for an ease to travel. amanda: checking on markets, you want to characterize it today, it's a comeback session. some real turnaround from big tech names. we have been characterizing this as a weakness for tech earlier today. certainly, that is no longer the case. the nasdaq almost moving into positive territory, certainly breakeven. it is led lower now by energy, industrial financials, we're seeing a positive action from names like amazon and paypal. we are seeing movement there. not a big spike you might see, if it was really inflation fears

driving the rotation today. love checking on some of the big tech names, these have been in focus, the leadership of the market got us here. we have seen profit-taking and some of the biggest markets. these are, in many cases, off of the lows. we are seeing some of the biggest turnarounds, two or 3%. we will continue watching it, we may well see mining of the positive territory. for what it's worth, the question of inflation and what the fed will have to do about inflation remains very much central for investors. earlier today, speaking on the bloomberg network, the former fed president bill dudley added fuel to the fire with the suggestion that treasury secretary janet yellen maybe should not have backed off her remarks, and that fed rates may have to go higher than some market participants are pricing. >> lift off, in terms of short-term rates, will not happen until the economy has employment. there will be a gap in where

they are and where they need to be to keep the economy from overheating. those meeting seem like the most likely template. one they have to catch up, the level of short-term rates will climb much higher amanda: -- amanda: the big question is when you should pricing, hard not to look at it as a record level commodity price. and not the inflation that could take hold. we know they are looking at the labor market were closely. matt: in the labor market looks pretty tight as well right now. but, the thing is, as we talked to economists, especially related to the administration, they tell us there are still millions of jobs that need to be added. maybe seven or 8 million jobs more. so, at this point, it does not seem like a near-term worried. betty midterm or longer-term. the market should probably know

that after you get back to serious growth, after you get full employment, rates are going to have to rise. amanda: that's right. of course when rates rise, all kinds of different segments will feel it differently. we are watching those rates, especially the financials. one company that projects it may do better than others when rates rise is united wholesale mortgage. just reported its results, disappointing on the numbers but buying back stocks, its chair and ceo is with us now. thank you so much for being with us, matt. i wanted to start right there, in terms of how you'll will whether higher rates, whether you have a bit of a competitive advantage on that front. >> obviously, rates at an all-time low. as they start to creep up, the market changes. companies that are reliance on refinancing will struggle.

we said the whole time, we look good when revisor happening but we look better with the market share perspective on persons. that's what we do with mortgage brokers. we are guiding up through more businesses, second quarter and first quarter. all competitors are focused on doing less business, concerned by the mortgage market in general. matt: talk to us about the housing market, right now not a lot of supply out there and everybody wants one. we have also heard there is difficulty to get a mortgage. is that the case? >> not difficult to get a mortgage, that is a myth completely. if you find the right person, find a local mortgage person they can help you find the right mortgage, it is not complicated. loans are closing in 15, 20, 25 days consistently. including purchases. right now, the housing market is so hot, if you're not coming in with a strong offer or low contingencies, you're not getting that house. finding a mortgage broker,

someone who can get you taken care of is important. it's not complicated, it's easy. you just have to know how to do it. amanda: the hot housing market is a subject of concern for some on both sides of the border in fact, for different reasons. do you worry at all about it getting too hot? which come of course can cause a price correction at some point. >> there is always a concern about the values going to high. the reality is, we saw back in 08, 09, that is not what is happening. nothing like that. that was because not only of housing appreciation but a really crack foundation in the mortgage, the government has done a good job putting the mortgage market and a safe structure place. making it so that is not going to happen again. with adjustable-rate mortgages and subprime mortgages. i feel at the housing correction is always possible. more about slowing the growth, instead of 5% left for the year, nydia goes back to normal, like

1%, 2%, 3% going forward. matt: that supply isn't out there right now. existing homes, that market has been tight. new construction is also difficult due to lack of labor and higher input costs. how does that get solved? >> is definitely a concern. during covid, a lot of things slow down. now, there is a bit of a blacklock. people have to get houses built, what is happening is costs are going up. it is creating a domino effect of making at warehouses, i can't build, i will bid up on it and pay too much. that is where this is all happening. i think it settles down in the third or fourth quarter, going into 2022 a more normalized market. amanda: although you did miss on earnings estimates, you are expecting better things in the back half. what will be different you? >> we made $860 million in the first quarter, 42 times will we

made last year. we got a great quarter, i don't know what other people say but the reality of the way we look at it -- we are a growing company. in rates rise, we are less cyclical than the number one company, the number three company, the number four company. we will become the number one overall mortgage company. we feel we are elite with our technology and team. we are excited to prove it. matt: where are you with your brokers and what has been the reaction to the rocket controversy, the fight you have with your crosstown rival there? >> is not a fight. the reaction from our brokers has been overwhelmingly positive. very few brokers decided not to partner, the great majority of them said we are all in with uwm. the reality, it has been a nonstory in the industry because our brokers are partnered. we are aligned completely and we are growing.

we have massive growth from february to april. that wasn't expected because rates went up but we still grew, we will do more the second quarter, the third quarter, more purchase shot. i am not focused on what competitors are doing, they did some things that were appropriate. we supported mortgage brokers, we did the right thing in our brokers appreciate that. matt: thank you for joining us. the uwm holdings chairman and ceo talking to us about the housing in the mortgage market. coming up, we have been in michigan a lot today. the governor of michigan draws a firm line in the sand over a critical pipeline between the u.s. and canada. we will dig into the details, democratic representative brian higgins of new york next. this is bloomberg. ♪

amanda: this is bloomberg markets, i malan -- i'm amanda lange with matt miller. the deadline looms, as you know. the governor of michigan says tomorrow is the day that the oil and gas company pipeline operator must shut down, and runs under to great lakes. some americans won't know, but as an aficionado of canada, you will know. big chunks of kandahar south of the united states. to get to sarnia, ontario, not just for eastern canada, it south of the border far lome. -- part of me. we run through to great lakes. concerns are environmental, its pipeline, it could leak. the pipeline can't be shut down, it's a political fight. it's getting kind of ugly between our two countries. matt: yeah, and a sense i grew

up on lake erie. i spent a lot of time there. we went out to canada all the time. i have gone to the detroit auto show for years and years. suffice it to say, the two countries are close to each other. it is interested -- interesting there would be a threat to close on this pipeline as we are dealing with the closure of another pipeline. that is more important to u.s. infrastructure. this one, of course, usually important to canadian infrastructure. it has to be something resolved. amanda: nothing on the pipeline in the sights of u.s. politicians. we are delighted to have with us representative brian higgins. a democrat from new york. also the cochair of the northern border pockets. great to have you with us. it speaks to this particular issue. i know it's another state in

question, and a governor of that state, really at the forefront of it. but, it speaks to the relationship. as we work to reopen the border and normalize our relationship, does this create friction between our countries? >> the united states, under the biden administration, is now debating, congress, a two trillion dollar infrastructure bill. the largest infrastructure investment in the history of the country. critical infrastructure includes pipelines, and it's very important that you have a security to make sure those are safe. and not subject to interference from domestic or foreign interference. matt: but the concern here, acclimate concern. or an ecological concern. americans are worried that this pipeline could cause pollution in lake erie. how do you satisfy both of those

issues? on one hand, you have ecological concerns. on the other hand, international relations. >> you need to resolve those diplomatically. but be truthful, it took a major hit over the last year. really over the last four years. these issues being resolved and a common agreement to address these issues in a safeway, environmentally. but, also protect critical infrastructure that is input ordinance -- important to both countries. amanda: also important to both countries is getting the border reopen. we have been an agreement so far, leader to leader, that should be close. the u.s. is ahead of canada on the vaccination front. how much pressure will there be on canada to reopen the border to u.s. travel? >> pre-pandemic, 400 thousand people traversed the border every single day. including, at one point, $6

billion every day. and, 128 land ports of entry. it is critically important to the economy of both ontario and western new york, and new york state. to get the border open. the fact of the matter is 40% of americans have been fully vaccinated. if you are fully vaccinated, you pose a low risk of getting covid. if you are vaccinated and you wear a mask, you pose a very low risk of getting covid. those folks in canada and the united states that have been fully vaccinated, that can certify that, should be able to cross the border. the bottom line is, the coronavirus is going to be with us for a long time. all viruses mutate. many many times. we will have to be vaccinated, revaccinated, booster shots. throughout most of our lives. this is the reality of what we are dealing with today. you have to be able to manage

the crisis, and, concurrently open up the border for commerce and life quality which is critically important to the livelihood of both the united states and canadian citizens. matt: how do you see transnational cross-border travel, cross-border business right now? is it going to bounce back quickly as soon as the border is reopened? >> there is pent-up demand. we are finding that demand creating growth, which is very important. there is growth this year at 8%. perhaps optimistic, but we have not had economic growth to exceed 3% since george w. bush was president in 2005. so, there is obviously a pent-up demand on both sides of the border. i think, if we can do this in a safe, successful way, the economy of both ontario and new york state will benefit from it,

as will the people whose livelihoods depend on reliable, predictable access between the united states and canada. the fact of the matter is, the problem in canada right now is there is virtually no drug making going on. no drug made a factory. they have not produced one dose of vaccine. owing to issues relative to price controls. that said, the united states is the world leader in vaccinating his people. not only do we have a vaccine, we have three of them. that was, we were all told, the inflection point at which we would be able to get back to a sense of normalcy. so, 40% of the people in the united states that have been vaccinated pose virtually no risk to canadians if they are let's go over the border.

look, this is not ideological. it is commonsensical. if you except that we have to wait for the boards open, it will never open. amanda: lots to chew on, hope to have you back. appreciate your time. brian higgins, congressman from new york. thank you, so much. we will leave you with a look at the markets. nasdaq from deep in the whole back to breakeven territory. more on that, next.

matt: this is bloomberg markets, i'm matt miller with amanda lang. tech stocks have come back today from the big drop that we saw yesterday. the new york faang index, which was down 3.6% in yesterday

section -- yesterday session and drive the broader market down, is now posting gains. figure games then you see on the nasdaq 100, for example. this is the arc innovation etf, that is the stock of the hour right now. focusing on it. >> nowhere is the tack selloff that we have seen lately, we -- it is higher on the day. as we mentioned, we have seen some of the tech pressure start to ease off. it is still down some 30% from those february highs. investors have been yanking cash out of there. a lot of the performance tied to the top holdings. tesla, teladoc health, those down double digits over the past two months. teladoc really getting hammered here. a big part of it, perhaps investors taking profits off of

the table. some of these names had incredible rallies over the last year. another big part of it, tied into that narrative that we have been having on inflation. when you look at breakeven rates, these are the expectations, rapid events over the past year. dragging down that etf, you can also see it when you look at that speculative frenzy in the market. you see that when you look at volumes which have been waning, and at the same time finding that painful. again, down some 30% on those february highs. matt: thanks very much. talking to you about arc. tech stocks recovered in this session. for amanda lang, i'm matt miller. this is bloomberg. ♪

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mark: i am mark crumpton with bloomberg's first word news. gas stations along the east coast in the united states are

starting to run out of fuel. as north america's biggest petroleum pipeline fight to recover from a cyberattack. from virginia to florida to alabama, fuel stations are reporting they have sold out of gasoline as supplies dwindle and panic buying sets in. colonial pipeline does not expect to be able to substantially restore service before the weekend. pediatric researchers are investigating whether covid-19 is becoming more severe for children. the cdc says since early april, the rate of cases in young kids and early teens has been surpassing that of those 65 and older, and hospitalizations for children with covid-19 are not falling as much as those 18 and up. that has researchers concerned that variants may be affecting children in new ways. including a rare inflammatory disease that has been linked to covid-19 infections. and the u.k., a milestoneha