caroline: is it a time for companies to invest in workers? we will look at how companies have been looking to raise wages to attract talent. the durable goods orders today, this desire for the economy to take off in this rotation trade back into cyclicals. joe: let's talk about that. we know about the name stocks, but it wasn't just amc. industrials up, financials up. lots of real sloth on the board. for more, were joined by one person.

what this is coming in the background the risk off behavior. joe: you had a lot of substance. romaine: you have material stocks railing on the potential for what this proposal could be. we had all these means stocks railing. was it because of the infrastructure bill? >> i don't think so. you are seeing that comeback.

some speculative bids broadly. amc and gamestop are back, but what is in our the ipo's. that is what was getting all the attention. this retail stock favorite stuck around, where the ipo's are not doing so well. caroline: they are worried about inflation. something jamie dimon is worried about. did they not get hit? >> inflation is a broad theme. there is an interesting take, controversial, but interesting, what if inflation is transitory and the search for return in means stocks, bitcoin, maybe that is driving commodity prices

higher in addition to global supply shortages, deluding what you are seeing -- diluting what you are saying. the index is coming down. breakevens coming back down. when we talk about these massive trades succeed, or even these commodity rallies, there is a lot going on in inflation is the overarching theme. caroline: a lot going on. we always keep you up to speed on that. coming up, we turned to the economic recovery. our next guest will talk about why firms are not investing more capital in their business. that is next. this is bloomberg. ♪

>> i am mark crumpton with first word news. president biden will increase federal spending in the coming fiscal year in a new budget, according to the new york times. the annual deficit would be $1.43 trillion. today, the president of the cleveland fed spoke about it. >> we turned the tide on a once in a century pandemic, a once in a generation economic crisis, and families are beginning to breathe easier.

we still have work to do, but our future today is as bright and wide open as it has ever been, and now we are facing the question, what kind of economy are we going to build for tomorrow? >> gop lawmakers rejecting the plan the senator of indiana told bloomberg television that mr. biden's plan is unbelievable and crazy. former president trump and his lawyer rudy giuliani have asked a federal judge in washington to throughout lawsuits accusing him of helping to incite the january 6 capital insurrection. both men spoke at a rally before the riot. mr. trump argues his speech was a presidential back, for which he cannot be held legally liable. rudy giuliani said the suit failed to show they planned or coordinated the incident. a sheriff in california says the gunmen who killed eight people

and himself in a workplace shooting in san jose yesterday fired 39 shots. that is according to the ap. the incident happened yesterday at a valley transportation authority light rail yard. ap reports that u.s. official says a homeland security department memo shows the shooter had disliked of the workplace for years. global news 24 hours a day on air and on quicktake by bloomberg powered by more than 2700 journalists and analysts in over than 120 countries. i am mark crumpton. this bloomberg. ♪ joe: shortages, bottlenecks hitting businesses. companies are scrambling to find more workers. we dig into the new ways companies are working to attract talent. ♪

as the u.s. economy rebounds from the pandemic, the biggest companies are finding themselves in need of workers. that is putting upward pressure on pay. wall street giants, fast food chains in ride-hailing companies, all offering higher wages, hybrid work opportunities, or cash payments. incentives were rarely needed before and now becoming commonplace. >> essential workers need more than a thank you. that is why they have been demanding to be respected, protected, and paid during this pandemic, where they have been serving us and delivering packages for us. joe: it represents the march towards a goal that lawmakers and labor activists had pursued for years, higher minimum wage. >> we need to reward work, not just wealth. i think both parties recognize it is time to raise the minimum wage for hard-working people, earning at least $15 an hour

minimum. joe: mcdonald's, cosco, and bank of america, all announcing wage increases. >> those companies that do right by their team members and their workforce are the ones that end up doing better financially. joe: there is an intensifying debate about inflation, as costs rise, and perhaps consumer prices will follow suit, stoking that debate. >> we are watching the inflation concerns. we see we pay a good market rate already, so we are monitoring that. joe: despite inflation concerns and that millions remain out of work, companies are feeling pressure for that new benchmark of worker pay. here to discuss all this is a research analyst. thank you. we have always bottlenecks and

talk about them literally every day. we are discovering more every day. it seems like the answer is to invest or build out supply chain capacity. what would stop him from doing that and taking advantage of higher prices? >> new capacity takes a long time to come online from the point at which you decide to invest. if high prices are transitory or temporary shortages, they may not think it is worth there while. and so the memory of the low demand from 2008 until very recently really speaks to the since there is no guarantee that

buyers will be there in the long term, so there taking a wait and see approach. caroline: we remember that demand might be sustained in investment cycles looked at again. >> there is reason to be optimistic. the manufacturer shipments inventories and investment measure, if you exclude aircraft , it is past the high point it hit in 2000, showing there is some investment, but for the widescale overhaul, there needs to be an understanding that demand will be there through income support, a willingness to let wages rise, and expansionary fiscal policy stance, all of these will help demand to be

there. romaine: you talk about government spending, the biden administration, the idea this is an investment rather than just spending, the idea that this pays us back with job growth, etc.. how do we make the in that way? >> there is almost no way to not make that link. while it might be politically good to frame things as investment-focused in infrastructure plan, even just ensuring that americans are taking home more and see higher

wages will ensure more investment is brought online. joe: what about interest rate hike slowing it down? maybe we can help businesses invest more, expand, build out capacity, but is there response, why don't we just tap the brakes? >> we are already seeing bottlenecks in a variety of goods. if we raise rates and it will cost more to make the investments in capacity we need to alleviate those bottlenecks, if we raise rates in an attempt to shut the man down to close off these bottlenecks from opening, you are essentially leaving a lot of investment, gdp growth, employment growth and improvement in employment conditions on the table just to avoid transitory price spikes. caroline: how much is an investor base a help or

hindrance? how much investors do want to see return from share buybacks and putting money in pockets? how much are we seeing longer-term investors that is not the way to go and are seeing signs? >> part of the trick is recognizing a lot the managers and people in these companies making these investment decisions have come up in a world that has been structured over the past 10 years by systematically low demand. for some younger folks, there is no muscle memory. the memory of the 1970's looms larger than the 1990's, so they may remain hesitant as well. romaine: we are on the precipice of a great deal of change. some of it has started to take place because of covid prices. we talked with some investors in

exxon, getting somebody appointed to that board who takes a different approach to climate change and wants to push the company in a direction where they address the climate change issues. this dovetails with what we are trying to deal with and how we get this economy up and running in the short-term and long-term effects of it. how do you make the case for making longer-term changes? >> the trick is adapting to ecological constraints and building out a climate conscious capital stock will require investment that creates jobs, which creates a boom, which creates need for further investment. the classic kinsey and cycle is something policymakers can lean on to justify investment for long-term sustainability, but

show the second-order effects of those investments and how they ingest the investments themselves on their own in terms of an increased standard of living, better employment, and higher consumer demand. joe: we got more news today on this stimulus infrastructure that theoretically the white house will push forward. is this the right level in your view, and is this the policy that can sustain effective demand? >> i think there is a lot to be praised in the stimulus package. some of it is undercut by their lack of willingness to ensure that the added benefits to unemployment insurance are not being paid out to states rejecting him, because those are such an easy source of demand in addition to the government as a source of investment, so it is imperative that we match both

sides and increased demand alongside increasing investment. more might be better in bringing out these long dormant impulses to investment. romaine: always great to get your points. we go from that conversation to kathy woods. great cover story on the believer. she is holding strong in her belief and technologies future. more coming up next. this is bloomberg. ♪

caroline: kathy woods has been the most prominent investor of late. an amazing business we cover

story on her this week. her etf is one of the most-watched. every day people would see what she was buying. the transparency was something many had not seen before. joe: we will talk about the cover story in a second. it is an extraordinary new business model and extraordinary returns. year to date, it has come off a little bit, actually down, but going back several years, there has been this in norma's moneymaker. i would think -- enormous moneymaker. i should've picked a five-year chart. anyway. joining us for more insight is one of the co-authors of the piece. great piece. what was the most surprising thing as you learn more about her background.

what struck you the most about her? >> how consistent she has been over time with her bold bet on technology. calls like tesla and bitcoin, she got in early and was optimistic. over a career spanning decades, she has been bullish on things like artificial intelligence. even if you go back to the start of her career, she was so bullish on these trends in this vision for the future, so it's not something in the past five or six years, but something she has been consistent on for her entire career. romaine: we asked about her religious beliefs and how some of those religious beliefs may tie into her convictions with

her investing style. what is the connection? >> she is open about the fact she is religious. she even has a connection that dates back many years to another person, through religious affiliation. she is open about her christian faith and involvement. as we were thinking about the story, there is definitely a connection between a willingness to keep the faith and hold steady on these beliefs about how different and optimistic the future might be in her faith, her religious faith. caroline: what else is also interesting about her is the fact that she is a conservative. she has supported the trump campaign in the past.

she surrounds herself with a diverse team to challenge her on many things. >> that's right. she is a different leader in finance. there are not that many women who are rock stars in the financial industry in this particular part of the financial industry. she is worshiped in the way elon musk is online, and she has risen to that kind of fame. she is conservative in her political beliefs and has backed trump. at the same time, cultivates this young, diverse team, and she has even received criticism for may be cultivating a team that is too green, but that is the type of team she surrounds herself with. she does not fit into any particular box.

caroline: fascinating story, taking us back to where it all came from. meanwhile, that is all for "what'd you miss?" joe: "bloomberg technology" is next. romaine: have a great evening. this is bloomberg. ♪ this is bloomberg. ♪

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announcer: this is "bloomberg technology" with emily chang. ♪ emily: i am emily chang in san francisco. this is "bloomberg technology." president biden chose cleveland to deliver a speech on the economy and his $1.9