>> ben carson julie keeping a lid on rate -- central banks are essentially keeping a lid on rates. >> we've got to look at what could possibly go wrong here. >> this is "bloomberg surveillance" with tom keene, jonathan ferro, and lisa abramowicz. tom: good morning, everyone. on radio, on television, a simulcast on a day of interesting economics, market action. romaine bostick info jonathan ferro on radio and tv. i said to ferro, you're gone. we've got to get romaine in. are you long amc? why is it up again today?

romaine: no comment on my personal positions, but a lot of folks went long on this. the big question after yesterday's run up was how many people were going to stay long. for a lot of folks, when you look at the activity not only in the equity itself, but what we saw underlying and the options market, which was a lot more active than the stock itself, that gives you a sense that this is going to be short-term. it will be interesting, still up in the premarket today. tom: forget about waldo. where in the world is gary gensler? lisa: this is a great question, the idea of regulation coming in. which side are regulators on? is this democratization of the market, allowing reddit traders to come in and do their thing? tom: that's enough market talk. see romaine bostick tonight. [laughter] let's get back to the real adult topics of the moment. we'll be smarter at 8:31. lisa: maybe, hopefully.

what kind of information i were going to glean from the jobs reports and initial jobless claims? they are all data points. one will not necessarily move the needle. however, collectively you increasingly get a case for what are -- for whether the federal reserve is going to get a more hawkish tone and tighten. stoxx arguably benefited the most from the fed stimulus, so you will publish fully -- so you will possibly see a drawdown. tom: let's take a look at the markets right now. i'm going to take the equity market off of romaine's burden. the vix is only at 18.79. i look at the rest of the market , and boy, was it correlated on tuesday. it is not now. romaine: looking at some of the correlations we seen in the commodity market, as well as a

lot of the other areas, here's the thing, those correlations, once they start to break down, that is when you start to see that volatility pick back up and maybe it will come off that floor. tom: michael mckee, a special appearance at 8:15 to make us wiser, and then we will get into the it: 30, and then on to ian lyngen at the bottom of the 8:30 hour with his acuity on the bond market as well. i think what we should do right now is just move forward. lisa, what do you have on the brief this morning? lisa: 8:15 am, we get the adp employment report. how much did private companies add to their payrolls? the expectation is for less of a big gain the den month -- then last month. noisy is going to be the key. at 8:30 a.m. when we get the initial jobless claims, the expectation is an acceleration in the decline of people filing for initial jobless claims still

, somewhere north of 350,000 new initial jobless claims at a time when you've had such an incredible -- it is not a good number from three years ago, and a labor market that still has shortages. you are still talking about companies like that one company that had a jobs fair looking to hire 100 people and only a dozen people showed up to actually apply. this was in the base report yesterday. this is a real question -- the bays report yesterday -- the beige report yesterday. this is a real question. how are the frictions affecting that? the frictions are really in the services sectors that were entirely shut down during the pandemic. now they have to restart. what is going to be the supply of labor, as well as how much money they have to pay those higher wages? tom: you've got to wait a minute from the pendulum of gloomy data. [laughter]

the gloomy data is where you want to go. lisa: i think it was there. tom: i think the ism could give us some really important information. we will look for that later this morning as well. right now we are thrilled to bring on someone who is absolutely -- who has absolutely nailed it, julian emanuel, btig chief equity and derivatives strategist. i'm going to cut to the chase. we had a rotation. one camp says the rotation continues. another camp says go long big tech. which one is it? julian: we think the rotation continues. regardless of what the fed does or does not do, says or doesn't say, the u.s. economy is going to grow somewhere 6%, 7%, 8% this year. it is tracking for 10% this quarter. that to us has value continue to outperform. tom: we will come back to it in a moment. amc entertainment filed to sell up to 12 million trailers -- 12

million shares. we will get back to that any moment on a stock that has an original story. julian emanuel, what is your original story on this market right now? as you write up for the weekend after the jobs report, what part of the market are you looking at? julian: for us, the story has been if you look at it, you've got the meme stocks moving. you've got this fascination with inflation. but in reality, the s&p 500 index has essentially gone nowhere for the last two months. normally, wisdom has it you never want to short the market. actually, when the market gets this quiet, day-to-day moves in the s&p 500 of 3% -- of three points, four points, it really says it's time to be a little bit more defensive. we like the value stocks. we are tilted more defensively here.

consumer staples with pricing power, health care, and reads, which are going to do well if the environment stays inflationary. tom: are you telling -- lisa: are you telling clients to load the boat on amc? julian: that is a much more difficult call. when you look at it, the options market is telling you that the yellow flag is coming up once again. we go back to january, when you had that first pop in the meme stocks. we all know the videogame retailer, their option implied volatility hit 1000%. we are at about 700% in the movie theater stock today. this is a warning sign. the speculation is intense. as we saw back in january, rocket ships back to their launch pads. lisa: how do you understand the trading activity here? is this reddit traders saying to the grandmothers, load the boat

on amc? or is this more tied to the fundamentals or institutional traders? julian: it is a more magnified version of what happened in january. basically, the people gathering on social media have plenty of money in their accounts. they paid their taxes with winnings from last year and are pushing selected stocks. the group is narrowing, but it is very much a social media phenomenon. the other thing about it is, strangely enough, the shorts really haven't learned their lesson from january. if you look, the short interest continues to rise. it is not what it was, but it is still too high given the price action. tom: i don't want to get you in trouble with the general counsel of btig, but are you seeking regulation of what we are observing in things like amc? julian: the thing that ties all of this together is the fact that margin debt leverage is at

all-time highs, and generally when we see that, obviously the indices are near all-time highs, it is almost inevitable that the government will step in at some point. tom: thank you so much, julian emanuel in for btig. romaine bostick has been following this really carefully. people look at it is a zero-sum game. there's obviously some people making big gains here. who's losing? romaine: well, no one is losing just yet. we have seen this play out before. there are going to be a lot of people left holding the bag. but the idea about the government stepping in, we had the same conversation for five months ago after the whole gamestop saga, and the fact is, regulators haven't done much of anything. someone say -- some would say they still needed time to gear up with this administration. we talked about amc's ceo leaning into these retail traders, and he's doing it for a reason. there are no institutional investors in this stock, so why wouldn't you embrace some of

these traders? that's what you've got a new share sale going across the wire now. tom: the stock on an intraday basis was a surge up to $76, and we have come down to a $70 level. you get some dilution on this offering, but the math here really doesn't work. romaine: no, you've got to rip up your cfa textbook for this stock because this is an about fundamentals. that downgrade yesterday from goldman on imax and set a mark making the case that what we see -- and cinemark making the case that what we see of the entertainment business isn't going to be what we saw pre-covered. so what are people buying here at $70 a share? apparently, a lot of people don't care. tom: lisa did a word search on bearish and came up with something. [laughter] lisa: i have an alert that triggers any article that has bearish in it. the idea that there are still shorts out there, as julian emanuel was saying, he is

surprised people haven't learned their lesson. if you take a look at the paper losses for short-sellers on 10 of the most short of u.s. shares, it was $4.5 billion of paper loss yesterday. romaine: that wouldn't tempt you to come out if you are a short seller? lisa: how do you understand the dynamic going on? honestly, i don't have sins of how many institutions are in here to push against their peers over on hedge fund x to try to push them out of their shorts, right? how much is that part of the action? romaine: we will find out probably two years from now once the autopsies are written. and when they write them, i think what you will find here is that a lot of people that did come into this market short and into the stock short saw the opportunity at $70, probably side at $30 haswell, and eventually they will come out. tom: what is the importance of the service that measures the shorts? romaine: it is very important. a lot of people look at it. that plays a lot into how people look at these stocks and look at

the valuations. they crack open those cfa textbooks and turn to page 637 and say this isn't supposed to be $70 a share. tom: amc makes global headlines. futures -27. important data in one hour. stay with us. this is bloomberg. good morning. ♪ karina: russia is trying to reduce exposure to u.s. assets because of the threat of sanctions, so it will eliminate the dollar from its wealth fund. it is instead shifting to euros, yuan, and gold. it will take place within the russian central bank reserves, so it won't be difficult to trace whether there is a market impact. benjamin netanyahu's record long grip on israeli politics is on the verge of coming to an end. he's about to be unseated

by the unlikeliest government in the country's history. a centrist would share power with a nationalist who would become netanyahu's immediate replacement. president biden and the senate's main republican negotiator on infrastructure met yesterday. liberal democrats have been pushing biden to stop trying to get a compromise with republicans. bloomberg has learned president biden lemmond a current ban on invest -- president biden will amend a current ban on investments. the treasury department will create a list of companies that could be penalized for ties to china's defense sector. 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. much more to come.

i'm karina mitchell. this is bloomberg. ♪

♪ >> you see an extreme shortage of meat. you see gasoline prices higher. you see a really acute shortage

of labor. you see housing prices on fire. i think a lot of consumers will look at this stuff and 10 to -- and tend to blame the incoming president. tom: greg valliere on fire yesterday. we will have much more on that this morning. futures deteriorate, -26. dow futures, -175. we were watching amc, which i think now is at $69. they do a public share offering. no surprise there. romaine bostick in for jonathan ferro. lisa abramowicz darkens the door. we are surprised by that today. [laughter] lisa: never happens. romaine: i think we call this paring gains. of 3%, for our radio audience. tom: with us is wendy

benjaminson. i want to emphasize something. there is a parliamentarian in the senate, elizabeth mcdonough is uncommonly powerful come out of one of the washington schools, vermont law, a whole series of interesting jobs. one day, senator shelby said this woman has integrity, make her the parliamentarian. tell the audience, why is she so powerful? wendy: the senate parliamentarian has become an extremely powerful position because she can decide whether a bill must go through the reconciliation process, which is a specific budget process, and only requires a simple majority, which democrats in the senate can now get if it is a 50-50 tie. or it has to go through the regular process, senate republicans can filibuster unless they get 60 votes, which

would mean 10 republicans going along with 50 democrats, which is going to be a rare bill that that happens. so the parliamentarian holds are the power. tom: so is schumer or the gentleman from kentucky or from west virginia, are they inundating her with gucci? how do they sway the parliamentarian? [laughter] wendy: the thing is, she is not an elected official. she's not a politician. so i think the only way to persuade her is with the law behind your back. lisa: let's talk about the process of passing the infrastructure bill as talks heat up between publicans and democrats -- between republicans and democrats. how much is inflation weighing in on this? wendy: i think inflation is weighing a lot on these discussions for political reasons. you had someone quoted earlier as saying that if prices go up, it is going to fall on the incumbent president, and that is absolutely right. these infrastructure projects are going to take years, so he

may have a big political success in getting an infrastructure deal, saying he can work with republicans, saying this is all going to pass, but before we vote again in november 2022, if prices go up, if the recovery isn't smooth, if we are all not back singing hallelujah at that time, that is going to fall on biden, and the democrats could lose control of the senate, and then biden gets nothing for the rest of his first term. romaine: there certainly is a race against the clock here. talk about the makeup of the biden adminstration. one thing that comes up a lot is the idea that a lot of these folks working on this proposal were around for the global financial crisis. a lot of folks who, by their own admission, made some pretty big mistakes with how they responded to that financial crisis, and they seem determined not to repeat those mistakes. how much does that aid in beating the clock? wendy: debate if is if they

don't make the stakes or if they don't make different mistakes. the idea that many of them were around and felt that the last recovery wasn't big enough, that the stimulus packages weren't big enough, so this time they are going to go really big, 1.7 trillion dollars on infrastructure, which is down from over $2 trillion on the original proposal, but republicans aren't willing to go that far, especially with new money in the budget, so their attempts may be stymied. lisa: president biden has set again and again that he population, that he has popular support for the info search her plans he has been proposing. how much is that popular support eroding as you see prices people are paying at the gas pump rise more than 40% year-over-year, and the average was nearly three dollars a gallon. is this eroding that support? wendy: i haven't seen too much

polling yet on it, but certainly coming out of the memorial day weekend, when people are really starting to drive around, and to be smacked in the face with higher gas prices, that is going to have an immediate impact. whether they connect that to the infrastructure deal or blame biden for it specifically is up to the republican message. tom: we've got to get to june 7, which rapidly approaches. what are you looking for as we jump off of june 7 into the summer? wendy: what i am looking for is an infrastructure deal. tom: infrastructure is all it is about. wendy: i think right now eight is, yes. that is what they -- right now it is, yes. that is what they need to get done first and that is what will move the congress to the rest of the summer. tom: wendy benjaminson, thank you so much. lisa, i look at the parliamentarian and i mentioned gucci. i only do that because when i

look out of the radio studio at in washington, it is four to six steps away from the gucci store. lisa: are you counting them, to go get your bowties? romaine: is that where you get your bowties? lisa: do you wax your bowties? tom: no, i don't wax my bowties. but it is part of the redevelop into washington, d.c. this is actually near ford's theater, folks. lisa: the idea of the person who determines the process by which they vote being so important highlights how narrow the gap is for president biden to get his proposal passed. 10 republicans need to get on board. how can they get on board at a time when there is still such deep older is asian? -- depolarization? -- such deep polarization? tom: what is your take on amc? romaine: we are going to keep and i on what is going on in the options market. this was the most actively traded single stock option yesterday.

about 11% to 12% of the total volume yesterday was amc alone. this is it right now. if you are looking to unwind that short, maybe this is your chance here. tom: i don't know. we went through gamestop before. romaine: you got stomped out of gamestop. tom: no, that bill -- no, ve t bill had gamestop. i don't want to ask, do we even know what doge is doing this morning? lisa: amc is now more valuable than over half of s&p 500 stocks. it really raises the question of the meaning of fundamentals. how do you understand this? romaine: seven months ago, this was probably one of the smallest stocks, now pretty much at the top of the board. tom: we will have more on this through the morning and through the close. much more coming up, including our conversation with william

dudley of the new york fed. economic data and less than one hour. michael mckee with perspective on two jobs statistics, adp and claims. on radio and television, this is bloomberg. ♪

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♪ tom: "bloomberg surveillance." mr. ferro off today. romaine bostick is in and that's a good thing, because romaine is way better on amc then any of us are. amc entertainment basically erases the gain, crushed from a price of $76 this morning. do you start your data check today with amc, ort can we talk about apple or something boring? tom: i don't know what -- romaine: i don't know what apple is doing, but there are other stocks out there not named amc. one of these, they are going to stop selling their hvac system. those shares a little bit lower in the premarket. also keep an eye on c3 ai.

they came out with a that really disappointed. in fireeye, this is an interesting story. this is a security software company. the company is basically selling off the cybersecurity division, and the remaining company is going to be renamed, and it is going to be some kind of software services company. investors aren't quite sure what to make of it. that is why you see the shares down in premarket. everybody is still talking about amc today. coming off that almost 100% gain yesterday, that adds to basically what is about a 2900% gain year to date. those shares now dipping into the red. a share offering, this can't be much of a surprise. earlier in the year when they had that pop, earlier they took advantage of it by dealing with that convertible share offering. this is just another opportunity for the company to take some

cash, potentially pay down its balance sheet. that could be a positive going forward, but it is going to provide some dilution. also keep in ai -- also keep an eye on tesla today. there's a recall of a few thousand cars because of a seatbelt issue. there was also some negative news yesterday about some of its deliveries not necessarily meeting expectations. i put a couple of other names on the board. a lot of the meme stocks that had gotten a pop yesterday, were course, bed, bath & beyond, gamestop, anything can be a meme stock if you want. you've just got to put your mind to it. anyway, you could see a rotation. we have seen this before. once something falls out of favor, the retail hordes find something else that grabs your attention. tom: i thought it was a me me stock, and lisa corrected me two weeks ago. romaine: just two weeks ago? lisa: it was tolerated for a long time. tom: the great martin feldstein

told me you try to write up ides -- right up ed's, and that -- right op-eds, and they are really hard to write. william dudley of the new york fed and all of his work at goldman sachs over the years, bill dudley has done that. the essay this morning from dudley is a required read because he lectures us on the dynamics of inflation and how it links to the real economy. i will get that out on twitter. it is somebody mouthing off with certitude about inflation. congratulations on clearing the air. i want to go back to heller in the 1960's. it is real simple. you emphasize demand inflation over cost push inflation. why is demand of labor so important to jumpstart our fear of inflation? william: there's an ongoing

inflation problem, not just the bubble we are experiencing right now from reopening and supply disruptions. you really need to have pressure on resources, and pressure on resources starts with labor. it is probably premature to expect a real inflation problem right now because we still have a lot of people out of work because of the pandemic. you look at the level of payroll employment compared to where we were for the pandemic started, we are still 8 million jobs short. while wage pressure in the first quarter was a little bit firmer, a year-over-year basis, it is only up to .8%. it is hard to have much of an inflation problem if wages are still quite quiescent. tom: how do you overlay this american economy? to me, it is simply an exercise in technology and an exercise in concentration of jobs growth, almost monopsony stick -- almost men ups any -- almost men ups

any -- almost monopsonistic. tom: -- william: a lot of people work remotely, so we will see a wholesale change over the next few years. how much we go back to the prepend mode of working i think remains to be seen. i think the problem right now is you've got a lot of people who are not i diddly seeking work because they have childcare problems, they are worried about getting sick, or their businesses may not have been reopened yet, but i think as the economy reopens, a lot of these 8 million workers will become available again. lisa: how much control does the fed still have over inflation? william: i think they still have control in the sense that they can control how fast the economy grows, how tight the labor market becomes, and then alternately drives inflation.

obviously, the supply disruptions we are seeing right now, they can't do very much about that. the big spike you saw and used car prices, that is a confluence of two things. one, chip disruptions are limiting production, and demand for cars by rental companies who are starting to get back in business. lisa: it raises the question for the reaction function of the federal reserve. in other words, how much they can actually effectuate change or a decline in these prices so they start to tighten policy. the fed is going to unwind its nearly $14 billion portfolio of corporate debt and corporate debt etf's. was this policy a temp look for how the fed will handle other market situations going forward? william: i think what they are doing with the corporate bond portfolio is pretty unrelated to the whole notion of monetary policy tightening because it is actually very small in terms of size, and it is not something that they typically own as part

of their portfolio mix. i would not take that decision as implying anything about the timing of taper and the timing of lifting off and raising short positions. romaine: does the fed actually really want to see that target hit? we get a lot of talk about how this is transitory. there seems to be this general sentiment now that if expectations themselves don't rise, you basically don't get there. you look at market pricing right now, somewhere around 2.3% or so on five-year five-year forwards with regards to inflation expectations. that is pretty much in line with what we have seen over the last 10, 20, 30 years as far as averages go. expectations among the market really haven't risen, despite all of that anecdotal evidence we have on the ground that inflation is here and it is real. william: the fed is actually happy that inflation expectations have risen a bit because they were pretty low going into the pandemic, and this is one reason why the fed has changed their long-term monetary policy framework to

target a 2% inflation average rather than 2% at any point in time. they want to keep expectations better anchored, and the increase we have seen in expectations has better anchored inflation expeditions around 2%. they are pretty comfortable with what is happening in that respect. they are probably pretty happy about that. you are right, inflation expeditions are well behaved, it is really hard to get an ongoing inflation problem. it is really about tightness in the labor market that is driving the wages, wages getting into prices, and then does the increase in prices start to affect inflation expect patients. i think what we are seeing now from inflation is going to turn out to be transitory, but there could be a longer-term inflation problem just because the monetary policy regime is a different one now. they said it could be very slow to lift off from zero in terms of short-term interest rates. romaine: i am curious your thoughts on the wage inflation situation, particularly because we actually saw wages as far as their historical averages hold up pretty well during the covid

induced recession. the idea that we would see some sort of meaningful appreciation of whatever it is, the 3% plus rate we have been at, is it even possible given that we are coming off such a relatively high floor, that we would see a meaningful bump up in wage inflation? william: it is possible, but it is hard to imagine a wage inflation spiral at this point. the unemployment rate itself, that doesn't suggest the labor market is that tight. 6.1% unemployment is still well above the 3.5% rate that we reached in february of 2020. there is still a lot of labor market slack. lisa: before we let you go, is the fed response of her frothy markets? william: i think the fed's response for creating a monetary policy that is conducive to lifting financial asset prices, but the amc phenomenon i think is something i would not lay at the feet of the fed.

tom: we would like to get more of a quote from you than that on amc. [laughter] do you think regulation's got to step in here? this is unusual, to say the least. william: this is the question where i think people need to think about what the fundamental value is and what the stock price is based on the value. so buyer beware is i guess the way i would put it. tom: bill dudley with advice for romaine bostick. [laughter] i can't say enough about his essay today. i will put it out on twitter here in a bit. futures deteriorate very importantly through a vic's 19. gets us back -- through a vix 19. get us back to may 25. romaine: the way the s&p has been anchored, there is a sense that they are waiting to hear from the fed and get a better read on inflation. more importantly, they are waiting to get a better read on the employment situation. lisa: what are we calling that,

boring, sleepy? tom: lisa, we got a nice video moment with president dudley that can be used on "the close" this afternoon. romaine: always promoting. lisa: it is a really interesting question here. what is fundamental value? people would also point to the federal reserve elevating asset prices. you would also point to the federal government pumping money into the hands of individuals across the country who haven't been able to go out and spend it on real things. what does fund a mental value mean in this kind of situation? tom: also, has it heightened inequality? as we extricate ourselves from this mess, where does the inequality lie for our next election? lisa: which speaks to why the federal reserve is targeting something in addition to just the unemployment number. what percent of the population is unemployed? tom: romain is going to look at amc and give us an update in just a moment.

maybe you can help me with that. we are going to come back and really drill into the economics of the moment. at eight: theme -- at 8:15, adp, then claims. on radio, on television, this is bloomberg. good morning. ♪ karina: with the first word news, i'm karina mitchell. global powers have adjourned talks on reviving the iran 2015 nuclear deal. negotiators will return next week. a foreign policy official warns that but the u.s. and iran will have to make hard decisions that could ruffle the mystic political constituencies. the accord cut iran's nuclear work in exchange for lifting sanctions. payroll estimates range from gains of 335,000 to one million. forecasters say models just

can't account for all of the frictions in the reopening of the economy. china has given jack ma's ant group the go-ahead to start operations in a consumer finance company, the first sign of progress since a regulatory crack down sank the fintech giant's listing. it transitions to become a financial holding company that will be regulated more like a bank. global food prices have risen to their highest level in almost a decade. the united nations gauge of food costs planned for a 12 straight month in may. drought in key brazilian growing regions is hurting crops from corn to coffee, plus, vegetable oil production has slowed in southeast asia. and how about some fries with that electric car? tesla ceo elon musk has filed trademark paperwork to use the company's logo and other intellectual property and the food industry. musk has talked about putting an old-school drive in at one of the tesla supercharger locations

in los angeles. 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 karina mitchell. this is bloomberg. ♪

>> this market is long on conviction, short on position. positioning in this market is very light.

you look at oil, at is about average. copper positioning is back to last july's levels. you look at agriculture, they are 20% off the highs. more importantly, those numbers i quoted are looking at the volumes over the last 20 years, see you are not even at the peak of the last 20 years. tom: jeff currie of goldman sachs with a great call in commodities. jeff currie really out front at goldman on the commodity boom that we live right now. brent crude, $71 $.21. the tape deteriorates. romaine bostick in for jon ferro. let's look at the equity markets right now. 19.15 on the vix as well. what we know for certain is it is a single digit actuarial assumption, and it has been wrong, wrong since time began. david wilson looks back your to date -- looks back year to date, and you go, hmm.

dave: exactly. that's what i did in my latest chart of the day. looking at years in which the s&p 500 rose between 10% and 15% through may, just to get an idea of how the rest of the year went . there have been 10 instances before this year to resolve moves within that range over the first five months of the year. on average, the s&p 500 rose another 11.5% in the final seven months of the year. in other words -- tom: so when idiot like me in the triple leveraged all-cash fund should load the boat? dave: i don't know if load the boat is necessarily the case, but we have stocks down the have kind of stalled out lately. so for some people perhaps it is an opportunity. by the way, the s&p is 10 for 10 when it comes to rising in that

final seven months of the year, as we see in that chart. tom: that is let you going to the adirondacks and the temperature being under 40 degrees. lisa: i knew you were going to go there. i will ask, there is a question, just ripping up the script here. we have been talking about boring, sleepy markets. how sleepy have markets really been, or is this a continuation of what we have seen all year, which is a turn beneath the surface, this idea of a rotation that has been ongoing? tom: we have seen -- lisa: -- dave: we have seen a certain lack of rotation by recent standards. beyond that, the summer months do tend to be relatively slow historically for the s&p 500. when you talk about the possibility of an 11.5% gain or whatever else in the final seven months of the year, it may be backend loaded. tom: david wilson, thank you so

much. we make jokes about a serious chart there on the perspective of january to the end of may and optimism ahead. romaine bostick, give us an update on amc. what do you see? romaine: 1.4% higher, in the green. the volume is off the charts. this is the second biggest volume in the price. tom: you mentioned earlier it was stunning. romaine: the options data yesterday was off the charts. it has been like that for the past three or four sessions. it will be interesting to see what happens today. take a look at your screen right now for one share of amc. for those folks who did managed to rise to the top,? do you bailout now? where do the shorts stand -- rise to the top, do you bail out now? a lot of people are betting on this stock to go down. tom: let's go to our "bloomberg surveillance" expert on amc. lisa: which is? >> this is a question where people need to thing about what

is the fundament of value and what is the stock price relative to the fundament of value. so buyer beware, i guess that's the way i would put it. tom: bloomberg equity strategist william dudley. [laughter] romaine: i never know what tom is doing. lisa: extensive planning, romaine. tom: he's tiptoeing around this. what are we going to do, lisa? come on, this is not healthy for the ultimate trust in the bid and the ask, is it? lisa: is it, though? i'm asking a question of whether this is the outcropping, a product of whether it is years of financial crisis or just distrust in markets. tom:tom: it is technology run amok. lisa: it's not technology because the reddit boards are not being run by computers. there's a question of the game if occasion of stockmarkets -- to give medication of stockmarkets -- the gamification of stockmarkets.

tom: romaine, you've got to save me here. it's free. i remember sitting on the bloomberg set, there were ads, everything is free, free. but there is a cost embedded there as well. is this just market makers making it off the troops on reddit? romaine: probably. i will say when we talk about the idea that the upfront cost to make these trades is basically zero for most of these folks, you are going to see this continue. but when you talk about regulation, you can only really looked through the lens of systemic risk. tom: fair. romaine: one of the problems with regulators so slow to respond to gamestop, when you take a look at amc, the systemic risk on the surface doesn't appear to be there. lisa: the other reason they don't want to get involved is because there's a populist tilt to this. that's where i was going with this. there is a feeling from the reddit boards of stick it to the man. romaine: yeah, power to the people. [laughter]

lisa: i am just saying there is that energy underneath this, which brings the question, how do politicians increasingly trying to side with populists push against that? tom: how did the gamestop thing end actually? give us a precursor to where we are heading on amc. romaine: gamestop is down about 40% from that high that it reached, but it is still well above where it was before all of this nonsense started. remember, when we talk about gamestop, there really was a fundamental story that started to drive the stock up. of course, it got out of hand as it spiraled up and up. you saw the same thing with amc. there was the fundament of story about a stock that had basically been left for dead. people looked at this a year ago and said this company will not be around. it was a beaten-down stock, and a lot of people saw value in that. whether that value should be at six dollars, that is certainly open for question here. but there is an underlying story to these meme stocks and what brought them here. lisa: i think this is a very

tricky situation because a lot of people are hiding behind reddit names, so you don't know who is doing what. yes, there are a lot of individuals, but there are also a lot of institutions behind this. tom: to a dummy like me, we really don't know. are you two suggesting that the illusion of david wilson when he is done here, he sits on his couch and trades reddit? romaine: i don't think that is dave wilson. lisa: is that the image you've got in your head? honestly, there is a mystery around the reddit trading. there also is a feeling that is not bad to allow people to participate in the markets. however, what kind of message are you getting from markets that are supposedly the wisdom of crowds when you get wisdom that seems disconnected to a balance sheet? tom: lisa abramowicz going all 1842 about manias and panics and wisdom and crowds. lisa: i try to be a thought leader. tom: that's good. [laughter] lisa: thank you very much.

tom: futures deteriorate, -31. i have no idea where amc is. when we come back, we will do more amc. this is bloomberg. good morning. ♪

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♪ >> this a lot of question about the outlook for the u.s. economy. >> we have seen a rebound, and it is telling you we are in a strong world economy. >> we are waiting for the central banks. they are essentially keeping a lid on rates. >> since the pandemic, my argument is that the fed is changing policy. >> we've got to look at what could possibly go wrong here. >> this is "bloomberg surveillance" with tom keene, jonathan ferro, and lisa abramowicz. lisa: good morning, everyone. seeing around corners of a mysterious labor market. jon off today.