testimony from the ceo of colonial pipeline. last week of ransomware attack stemmed the flow of fuel to the east coast. >> i know how critical our pipeline is to the country and i put the interest of the country first. i kept the information held because we were concerned about operational safety and security we wanted to stay focused on getting the pipeline of and running. i believe with all my heart it was the right choice to make. mark: this comes one day after the justice department senate recovered the bitcoin ransom that was paid. canada is preparing to relax quarantine rules for travelers from the united states who are fully vaccinated with the covid-19 shot. bloomberg learned within the next few days the 14 day

isolation for visitors could be loosened. restrictions it still remain including only allowing in fully vaccinated visitors still must present a negative covid test. border restrictions have been in place since march 2020. a problem that caused multiple websites around the world to go down has been fixed. that's according to the hosting service fastly which is not separate caused the outage. among those that experienced problems was the new york times, reddit, and the british government. global news 24 hours a day on air and on quicktake by bloomberg. powered by more then 2700 journalists and analysts in over 120 countries. i am mark crumpton. this is bloomberg. ♪ >> it is 1:00 p.m. in new york, 1:00 a.m. in hong kong.

i am matt miller. here the top stories we are following from around the world. in just a few minutes we speak to one of wall street's most followed analysts, byron wien, for a look at the market, inflation, vaccines and more. we also speak to krista phillips of wells fargo about ceo charlie sharp. later we speak to the ceo. candidate ceo atul tiwari. let's look at the markets. s&p 500 swinging back and forth between gains and losses but really not a lot of movement. the instant thing -- interesting thing is that the dollar is bouncing back again today.

this is one of the things i'm go to talk about with byron. he made a lot of calls at the beginning of the year and the ones i have read through seem to be playing out in his favor. bitcoin on the other hand down 7%. well under 33 let's get over to -- $33,000. let's get over to byron. he joins us to check in on his predictions. looking at the list a lot of them are so spot on i have to guess you have made a lot of money. for example, you said energy stocks would be among the best performers in if i look at the breakdown, they are far and away the best performers. do you think they still have room to run? byron: i do.

i think the price of oil is going to get higher for the right reasons. the economy is recovering, business is doing extremely well, people are returning back to normal, they are going to be traveling over the summer and the demand for gasoline is going to increase. matt: you did also say you thought by memorial day we would get back to some form of normal with the success of vaccines. pent-up demand would drive depressed hospitality and airline stocks. we've seen that happening. you thought we would see nominal growth of more than 6% this year. how is inflation coming along with those forecasts? byron: i know there are a lot of people that side with the federal reserve and say inflation is transitory but that's not my opinion. i think there are a lot inflationary pressures out there.

the fact that chips can unload, the fact workers are harder to find, the fact housing is booming. all of those things indicate to me that the 10 year is going to go above 10% in yield and inflation is increasing. i think that is one of the negatives in the outlook. on the other hand i don't think inflation is going to go above 3%. i think it will be between 2% and 3% in the market can deal with that. matt: it's interesting because bill dudley yesterday wrote a opinion piece for us and said the fed is too focused on full employment at allowing the economy to run hot. that means they are going to have to turn around at some point and raise rates faster than they normally what to slow things down.

the concern is we then go into another full-blown recession. but one of your predictions was that we are beginning the longest economic cycle in history. you think it is going to surpass the one that lasted from 2010 through 2020. do you stick with that even with your views on inflation and the possibility the fed is going to have to slam on the brakes? byron: i don't think inflation is going to get so high that the fed has to be tough. i think the fed will raise rates or stop accommodating but i think the economy can still move ahead. i don't know if we will go the full decade with increasing growth, but i do think we will go the next few years without growth getting to the point where the fed has to take definitive action. matt: what does this all due to gold? it is a commodity i have been watching closely this year.

it is one of those predictions you made again. you said gold is going to have a strong 2021 and we have gone from 1700 to almost 1900 now. do you think gold has further to run as bitcoin served some inflation hedging prowess? byron: i'm not a big fan of bitcoin at this point. i've been studying it and i wonder if it is a geriatric thing i can't bring myself to buy it, but i think gold will do better because inflation is going to be more of a problem and people will look at gold as a hedge against it. matt: you did say you thought cryptocurrencies would gain more respect and even though we have seen this roller coaster ride of bitcoin at one point it was at $65,000. we showed it now down to

$32,000. does that seem like the end for you? do you think the curtain has been pulled aside or are wall street heavyweights going to increasingly lend their reputations to bitcoin, back bitcoin, and make it investable? byron: the reason i can't bring myself to buy it is that it is just a trading vehicle. when i you something like bitcoin i use it as something like the equivalent of cash or a safe place to put reserves. i don't want to put in anything that volatile. it is a trading vehicle and if i wanted to trade something, i would trade something brian could have an opinion about the earnings outlook and the

prospects of the price of the stock. i trade in stocks but put my reserves and things like gold and bitcoin isn't like gold. matt: you mentioned earnings. you also forecast the s&p would trade at 4500 later this year. we have seen this reopening rally pushed the gains from the bottom in 2020 continually higher and higher. trading at 4230. are you looking for 4500? could we see even more this year? byron: 4500 was a pretty ambitious forecast at the time i made it at the beginning of the year. you know, i don't revise those targets during the year.

i'm sticking with the 4500. i feel pretty confident about that and i'm not willing to say i have a lot of conviction it will go well above that. matt: it certainly looks like it is headed there although it is bullish. we are up 12%, 13% to date and another 300 points, 270 would be pretty impressive. a lot of it has to do with the dollar and everybody was calling for a continued drop in the u.s. dollar. if you look at the bloomberg dollar index, we have seen it come down but really bounce over the last couple of trading sessions. right now we are at $11.18. does the dollar come back or was the peak we saw the end of march the high point for the greenback? byron: if the economy recovers,

real estate stocks are attractive. who know capital spending is increasing -- we know capital spending is increasing. i think foreigners will be more comfortable putting money in the united states. as a result i was bullish on the dollar. i have to admit the fact everybody was bearish at the beginning of the year raised the issue of maybe it's not going to do as badly as everybody thinks. it hasn't done is badly as everybody thought. i think it can have a positive year and i still believe that. matt: it definitely was a crowded trade and it has turned around a little bit. we will be watching that closely. a lot of it has to do with the fiscal stimulus. really unprecedented money being poured into the economy by the u.s. government. what are your thoughts on how much more we get?

president biden proposed another $4 trillion that needs to go through congress. byron: thank god for congress. i thought the $4 trillion on top of that already out there to deal with the recession in the rescue plan. if the full $4 trillion were to get into the economy, that would be too much fiscal stimulus and it would create a serious inflation problem. i think both the jobs and families program will be trimmed back and as a result of that the economy will overheat -- will not overheat. interest rates will move higher but they will remain somewhat

restrained and that is a favorable background for the equity market. i think the fact biden is not going to get all his program through is good news rather than bad news. matt: it's rare that we hear somebody say thank god for congress on this program, but it was a pleasure having you on. i appreciate you checking in with us halfway through the year. keeping yourself honest on these predictions. byron wien is blackstone vice president of wealth solutions. coming up, charlie sharp goes on the biggest business expansion. the push to expand the credit card business next with krista phillips. this is bloomberg. ♪ loomberg. ♪

♪

matt: this is bloomberg markets. i'm matt miller. wells fargo unveiled new credit cards today to expand the business line. with us for more on the announcement is krista phillips, head of marketing product loyalty and digital for wells marco cards. -- wells fargo credit cards as well as sonali basak. you have got incredibly good experience in this going back to helping j.p. morgan chase rebrand, the business at bank 1. what does wells fargo offered to the client that customers can't get elsewhere? krista: thank you for having me today.

i'm excited to share the news out of wells fargo. we are announcing a new credit card portfolio and renewed focus on credit cards under our leadership and ceo charles scharf. the first card is the wells fargo active cash card. we are launching in july and will offer unlimited 2% cash rewards on purchases with no annual fee. we believe this is going to be the best cash back card out there. sonali: it is a really crowded market though. this is something j.p. morgan has been for years, citigroup, you worked at places before wells fargo. how are you supposed to compete in this space especially at a time when customers are not getting into consumer debt? krista: i mean, we are -- we have looked at a lot of customer research and watch where our consumers were spending, especially the last 18 months. we saw consumer spending habits

change and we did our homework. we asked them not just how they were spending but how they were feeling about their credit cards. a couple of themes came through loud and clear. one, people don't want complexity and we know this credit card spaces complex. we are going to offer something simple, straightforward, and value of the customers. sonali: you have been at wells fargo less than a year now right? how big has that team grown? what does it look like now? krista: we brought in whole new leadership teams in the card space under the helm of ray fisher. i have been here for about nine months and really happy to be here. as we took a look at our business we also took a step

back to say, what can we do that's different and better and how can we meet the needs of our consumers? me along with nine other individuals -- actually, i did the math this morning and i believe we have, collectively, 250 years of credit card experience. matt: but as you point out consumers' behavior has to have been influenced by the pandemic. i'm sure a lot of consumers were doing their best to pay down debt, keep their heads above the water, especially if they had job issues, and probably are not going to want to rack up credit card debt going forward. krista: we saw consumer spending habits change. we saw category spend shift over the pandemic while people were spending in travel and dining. that goes to the wayside and now there is more spend and online purchases, home goods, groceries. when we decided to launch with

this particular product we were very disciplined about going out with something that have broad appeal, to percent cash back -- 2% cash back so whether you are the venturing into the restaurant or plane tickets, we offer you 2% cash back on all of that. sonali: this is really charles scharf's first expansion. but help us understand what is this card business supposed to do for wells fargo as it tries to grow again? krista: we saw great opportunity to expand our card relationships. for a long time we have been punching below our weight in the credit card space. under our ceo we are focusing on not just reestablishing our brand but giving customers products of value they cannot

find anywhere else. this is just one milestone along this journey of transformation. matt: i just want to know what it's going to do for shareholders, the bank's bottom line. i'm sure customers are going to be happy about 2% cash back or 0% financing any number of months, but that doesn't make you any money. are you after something else? is it the data, the relationship, or do you think this will be a more profitable business in the future? krista: we are very pleased with what we anticipate as our returns but more importantly we are deliberately putting all the value into the consumers' hands. we were thoughtful in the designs of these products and we want to build long-term, engaged relationships. that's why we are doing that. matt: thank you for your time. really appreciate getting somebody with your experience on about this fascinating sector of consumer finance. krista phillips of wells fargo and reporter sonali basak.

the report this morning show record job openings. one industry stood out. we tell you which one next. this is bloomberg. ♪

♪ matt: this is bloomberg markets. i'm matt miller. time for a bloomberg business flash to look at the biggest bloomberg business stories. ford is betting by going small it can score big with the import crowd. they are pricing the newest maverick a compact pickup truck at less than $20,000. the truck is powered with a standard gas electric hybrid propulsion system and the ceo

said he wanted vehicles that appeal to younger, entry-level buyers who have been priced out of the market. for the first time in more than 15 months new york's madison square garden is preparing for a rock concert without social distancing or masks. unless the foo fighters wear them they will be performing june 20 and only those vaccinated will be allowed to attend. fans will have to show proof of inoculation along with tickets. that is your bloomberg business flash update. let's get to something the caught my eye today. the jolt's job data so she u.s. job openings rose in april two a fresh record high. that is an all-time record high for job openings in the united states and one sector stood out. 5.6 percent of workers in the accommodation and food services industry quit their jobs that month. the record level of quits.

more restaurants and other service industries say they are aggressively trying to hire which in turn makes more workers feel comfortable leaving a job knowing other opportunities will away them. still, please be sure and tip your server. coming up, we speak with window snyder, former fastly chief security officer about the vulnerability amid the short but punctuated outage we saw this morning. this is bloomberg. ♪ s is bloomberg. ♪

mark: i mark crumpton with bloomberg's first word news. in hong kong, the government

says it's goal is zero infections. their ongoing strict quarantine restrictions, despite weeks of few or no infections. the congress and economic development sector cherries are urging full vaccinations is attached to ensure public safety and a rebound to the economy. >> we must aim to have a zero infection. so everything would need to be checked off. having said that, there must be the flexibility on risk management. charlie: -- mark: hong kong is under pressure to relax border restrictions and to speed up its rollout. hong kong's vaccination rate also lags. rival financial hubs including singapore and london. rocco of wattage will spend the rest of his life in prison. u.n. judges upheld the

conviction of genocide and other offenses during a war in the 1990's. the 79-year-old former general terrorized bosnia throughout the war. the last major figure from the bloody conflict to face justice. on sunday, israel's parliament will vote on a new coalition government. if approved, the prime minister would be removed. corrupted charges have been charged against the longest-serving leader. it is the fourth election and the less -- less than two years. if the coalition is approved, then it would become the prime minister for two 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 mark crumpton. this is bloomberg. amanda: come to bloomberg markets, i'm amanda lange. matt: i'm matt miller. here the top stories we are following for you from around the world. the webs hidden weeks five, we will discuss the outage or fastly today and the vulnerability of the world wide web cyberattack. if human error, the founder and ceo of official technology. plus, more on meme stocks as wendy's benefits from the retail trade, shares hitting a record high today. we will speak to canada ceo about how fine wine will become more accessible to retail investors and hopefully drinkers as well area -- as well.

amanda: bloomberg is reporting at of the european union's be there with president biden next week, a resolution for that meeting suggests an end to some long-standing trade disputes around a movement of -- around aluminum and metal tariffs. boeing is already moving on this news, an awful lot of money on both sides of the border. we are keeping eyes on this, a bloomberg news report out just now. the market is fairly quiet today. the market is fairly quiet today. we are seeing weakness for consumer utilities. utilities the single weakest group on the market today. bitcoin down another almost 7%. you can see that, it is essentially a bit of a week market. one thing we have been watching

our stocks moving on what appear to be social media actions, those meme stocks. wendy's is now one of them. watching trading action on wendy's it looks like it is driven by that kind of volatility today. as is clover. another one getting some renewed ion. a bloomberg deal summit this week. can mullins was asked and spoke about these meme stocks. >> i think you are in a global crafts game, everybody is talking to each other and having a blast. you get to go home, the market just down, you get to go to a bar. the meme stocks are half of the conversation. a lot of it is fun now. every crafts table, 70%, 80% of people are having fun, they know they're going to lose their money. there is somebody who is going to lose their mortgage or try to hitchhike home. lose the college fund. i think a lot of the meme stocks are people having fun.

matt: that leads us to bloomberg steve wilson. he has our stock of the hour. which, i wouldn't have thought of this as a mean stock because i grew up with wendy's. it was started in the heart of ohio, columbus metro area. to me, it seems like the most solid company there is. but, i guess i'm a little bit biased. >> one thing you can say as wendy's has it participated before now and all of this demand for the meme stocks. and see entertainment, a whole lot of other companies. the shares haven't gone anywhere in the past year. we can go back to, in essence,

june of last year. very little direction. today, you see postings about when things on the reddit boards, wall street bets, you see the shares taking off. just haven't had a day like this historically. not just that the stock prices at a record, also the amount of trading. you haven't seen anything like it historically. from the fast food chain. that is really something that jumps out in terms of today's training. another thing you can say, because, you haven't had the sort of move in wendy's shares the you have seen in the likes of gamestop and amc entertainment. even the likes of bed, bath & beyond. to see it come up like that, it's a surprise. amanda: that chart tells us an extraordinary story. you have to love that.

the turnover is so high. one thing wendy's does not have in common with some of the other meme stocks is a big short position. why that targeted? >> that's the real question. you saw the chart a moment ago showing us less than 5% of wendy's available shares have been sold. sh -- short, borrowed and sold. to see a lot of other numbers for meme stocks here. 37%. you can go through other companies and come up with similar numbers. it does leave you wondering why wendy's? people figuring out the shares didn't go anywhere for the past year. they are do to move higher. at the very least, somebody is pushing them up. matt: there is no other frosty. dave thomas created this company in 1969, since then nobody has been able to replicate the frosty. amanda: it's true, you can ask whether anybody needed to but you are correct.

another stock we are watching today, matt, is biogen. for what it's worth, we now have some of the numbers around. you called it controversy yesterday, that is a fair way to describe biogen. it is going to be $56,000 a year for this drug. one of the big issues, the efficacy is not assured. if you have a loved one in cognitive decline, do you spend $56,000 a year on the -- on something that might work and side effects are severe? matt: the concern is the side effects are severe. brain swelling among them. and b, the two trials biogen date, one of them showed no success and the other showed only a 22% slow and the decline. so, it is not like anybody is going to get better or even stay at the same level. it is only going to get worse.

the big problem with that, you want to slow down the decline if you can, but this takes billions of dollars that were being funneled into new research and pushes them towards amyloid, getting rid of the emma lloyd clack players. maybe that is not the answer. amanda: this will play out over time. we talked about this yesterday, experts are weighing in, there's a great piece on the terminal today were looking at. there will be real-world results here. the first drug approved in a long time. the story for biogen on this may not be over. matt: matt: absolutely, and unfortunately, when i saw this headline i had great optimism. for fighting alzheimer's. it doesn't look like we're there yet. coming up, we will get important insight about the outage, the internet outage we saw this morning. it turned out to be a fast maker

at fastly. we will talk with the founder and ceo of digital technology, the former fastly chief security officer. this is bloomberg. ♪

matt: this is bloomberg markets, i'm matt miller with amanda lange. an outage at the crowd based -- cloud-based content platform fastly. some major websites off-line for about an hour today. really interesting, amanda, because we were talking about the hack attack at the pipeline and what we saw happen at gbs. all of a sudden, we realize you couldn't get on reddit.

i spend a lot of time on their obviously. you couldn't get on the new york times website. shop of fire and amazon were down. all of a sudden, we spent -- we spent -- refill super vulnerable. fortunately for me, i was able to pull up bloomberg.com and continue to work. very interesting, especially with timing. amanda: a lot of us are newly alert to the cyber risks. what highlights, this we now understand it was the goal on the part of fastly. the lack of redundancy behind some of our systems. whether it is a bad actor or a mistake. a fat figure, as you said. it doesn't matter if it takes you down. consequences, a lot of mad people. matt: it could have been in turn asking -- and in turn asking what does this button do? i realized after, these websites and was never go down.

it seems like fastly isn't doing too bad. she is the founder and ceo of fiscal technologies. formerly the chief security officer for fastly. can you tell us what happened? do you know? >> is thankfully not a security issue. matt: what does that mean? did somebody push the wrong button? is it something that could happen again? something that happens on a regular basis? >> for fastly, not that often. but the critical thing, when these things happen, seeing how fastly cut the customers up and the way they do perspectives -- retrospective, they can show it.

how happen, why it happened that way again. that gives me confidence. we are so interrelated and interdependent on the cloud. amanda: it's interesting, as matt notes, it is rare. you wouldn't say that about a plane crash. to keep it in context, of course, but do we have enough redundancy in general? is there enough of a failsafe system -- a failsafe system on what we considered to be somebody online shopping or surfing the web, now we understand is critical to economic well-being. we did more work on this to back up backups? >> as an entire industry, we need more time making sure the foundational technologies we rely on our delivering the security that is appropriate to the security threats we are up against. what we incorporate, whether it

is at the device level, it is growing in complexity. the number of technologies that we need to all deliver, and high degree of security resilience, is our ability as an industry to deliver it. matt: what needs to happen? i've been reading stories, for example, the company that runs crack income of the crypto exchange, has such incredibly high security that they make eight-year-old sign nda's when they go to a company picnic. that seems like overkill to some extent but is it necessary for companies like fastly and that are responsible for so much in terms of the internet economy? >> the nda is relying on the individuals holding up the other end. an eight-year-old is only as reliable as they can be. things that make us more resilient, more reliable are the systems that we build that

produce complexity. that produce attack surface. -- a tax service. deliver foundational technologies in a reliable way. so, we are not open to every possible mistake. not everyone is so graceful when all these kinds of things happen. back on the west coast, a lot of folks barely notice anything happened. getting back up to this state, that is critical. a critical part of delivery. amanda: obviously, there is still a lot of attention on the colonial pipeline in the survivor attack -- the cyberattack. i think we will see investment as a result of that intention but -- of that attention but how far are we from protecting against intentional bad acts as far as unintentional ones? >> pretty far from where we need

to be. a lot of work that needs to be done. even as an industry, we know it needs to be done is not being delivered consistently across areas we are vulnerable. a lot of different industries waking up and realizing this is critical to their business. what they have made at this point is insufficient. trying to figure out how do i get to a 2021 level of resiliency, given that i haven't made that investment as we have grown complexity? that's truly acting side. also increasingly true of the products we deliver, which have more and more technology components themselves. amanda: it's great to have you with us, we appreciate your time in your industry knowledge on this. the founder and ceo of fiscal technologies. thank you for that. coming up, investing in

alternatives is getting easier and easier. when it comes to fine wine, we meet the ceo of cold wind canada. -- colt wind canada. ♪ canada. -- colt wind canada. ♪

amanda: welcome back to bloomberg markets. i amanda lang alongside matt miller. we talk a lot about alternative investing. some already do that with a collection of find wine. it is getting more successful as a retail investor. thank you for being with us, this is really interesting because fine wines is something you think of as being very rare five.

i spoke to the investor and the product. how you open it to a broader base? >> they queue for having me on the show again amanda and matt. what we were looking to do, to make the asset class of fine wines more accessible. something that has been accessible to wealthy investors over time. we have opened it up to individuals currently with a minimum balance of 45 thousand dollars. in which case, you get a dedicated portfolio manager and asset management of a fine wine portfolio that you actually own. it is a real asset. matt: it's interesting, i think of vanguard as a leader in etf. is this essentially what you are doing with fine wines? creating a fine wine etf? >> it's a little bit different in that it's a separately

managed portfolio. it is tailored to the individual. actively managed. the asset, as i mentioned, is owned by the individual. the wines are purchased by us. we are one of the largest buyers of bordeaux for example. they are stored in an independent facility in the u.k.. we actively manage that, we ensure your collection, we ensure the wines are actually authenticated. matt: no chance i'm going to drink some of this wine then? >> well, it's your wine. you may take possession of it. but we have found historically is that 80% of the wine is investment wine. our clients do want us to manage the portfolio.

they take the proceeds or reinvest them. 20% will say these are great wines, i would love to take possession and enjoyment. amanda: you mentioned a low correlation, what about the risk? what would you say about the risk of investing in a portfolio like this? >> some of the positives are low correlation to equities, low volatility, low down site capture, when the s&p 500 was down 38%, the 1000 index was only down 1%. you have some real buffering of your portfolio by diversifying into wine as an asset class. some of the risk, why you want to work with an experienced and established company like us who have been in business for 13 years with a solid track record, you want to make sure they are being stored properly, as i mentioned, with the third party.

you want to make sure they are insured. make sure the value of the wines is clear. luckily, there is a stock exchange for wine in london called liv-ex. we use these prices to value the portfolio. amanda: it's really interesting. great to have you with us for this. you don't get to drink it, matt, but interesting nevertheless. this is bloomberg markets. ♪

[ sigh ] not gonna happen. that's it. i'm calling kohler about their walk-in bath. my name is ken. how may i help you? hi, i'm calling about kohler's walk-in bath. excellent! happy to help. huh? hold one moment please... [ finger snaps ] hmm. ♪ ♪ the kohler walk-in bath features an extra-wide opening and a low step-in at three inches, which is 25 to 60% lower than some leading competitors. the bath fills and drains quickly, while the heated seat soothes your back, neck and shoulders. kohler is an expert in bathing,

so you can count on a deep soaking experience. are you seeing this? the kohler walk-in bath comes with fully adjustable hydrotherapy jets and our exclusive bubblemassage. everything is installed in as little as a day by a kohler-certified installer. and it's made by kohler- america's leading plumbing brand. we need this bath. yes. yes you do. a kohler walk-in bath provides independence with peace of mind. call... to receive fifty percent off installation. and take advantage of our special offer of no payments for eighteen months.

mark: i'm a mark crumpton with bloomberg's first word news. at a briefing, dr. anthony issued a warning to states about

a coronavirus variants. the variant known as delta has surged in the u.k.. the top u.s. factions -- the top u.s. infectious disease doctor is pleading with state have less than 50% vaccination rates to ramp up efforts. the variant first reported in india now accounts for more than 6% of cases being sequenced in the united states. websites around the world that were down a running now after hosting servers easily fixed the glitch. a configuration problem because the disruption, not a hack. among the websites that kid experienced -- that experience problems were the new york times, and reddit. last month, a ransomware attack paralyzed the east coast flow of gasoline, diesel and jet fuel. >> it was the hardest decision i made in