he has lifted the states pandemic restrictions now that 70% of new york's adult population is at least partially vaccinated. the last protocols include place included social distancing requirements, capacity restrictions and health screenings. early in the pandemic, new york city had the most coronavirus cases in the world. president biden has arrived in geneva ahead of his planned meeting tomorrow with russian president vladimir putin. mr. biden plans to warn is to proving that the united states will respond to actions that conflict with its natural. -- national interests the white house expects the meeting to last four or five hours but does not expect any concrete announcements to come from it. the leaders are expected to talk about the renewal of the new start arms packed and human rights issues. five months after the assault on the u.s. capitol, the biden

administration is outlining plans for fighting domestic terrorism. the government promised to be better at using existing federal resources and also will consider whether more laws are needed to deal with the threat. the u.k. has agreed on a free-trade deal with australia. the agreement is expected to cut tariffs on products like scotch, clothing, and cars. british farmers have been concerned they could be undercut by cheap australian meat imports. the british government has hinted that tariff cuts could be phased into protect the farmers. prime minister johnson wants to expand commercial ties around the world following brexit. global news 24 hours a day, on-air, and on bloomberg quicktake, powered by more than 2700 journalists and analysts in over 120 countries. i'm mark crumpton. this is bloomberg.

>> it is 1:00 in new york, 7:00 in berlin, 1:00 a.m. in hong kong. welcome to bloomberg markets. here are the top stories we are following from around the world. u.s. retail falling. i will discuss the consumer pullback with ann berry, wheelhouse chief investment officer. the u.s. and the eu agreed to a five-your tray truce on subsidies for boeing and airbus. we will dig into the details with henrietta treyz. and we will preview what we can expect from biden and putin meeting in geneva tomorrow with angela stent. first off, let's get a quick check on what is happening in markets, and remind you that we will be following the fed very closely tomorrow. we will talk about that

throughout the program. tomorrow, we will be joined by tom keene as we approach the meeting. the s&p down a quarter of 1%, had been moving less previously. to be fair, we are coming off of an all-time high. the u.s. 10-year yield still under 1.50, interesting considering the fed meeting tomorrow. that tells you what the market expects from jay powell. gold coming down right now, 1853 a troy ounce. that could represent market expectations of a shift eventually toward tightening, if you are talking about global central banks. brent crude up 1.5%, $73.91. let's get back to that u.s. eco data. retail sales declining signaling consumers are spending more on services as the economy reopens.

here to discuss is ann berry, chief investment officer at wheelhouse, who invests in tech and fast-growing companies. all of the shopping that we've been doing over the last year, i was saying to myself, my doorman must have thought i was an awful person, getting somebody packages during lockdown, but that has decreased substantially since i've been able to go out to dinner. i guess my experience mirrors the u.s. consumer. ann: we knew that the u.s. consumer would be spending, but what are the changes by which people purchase? you talked about your own a shift to direct to consumer and delivery to your home. we are looking at subscription businesses. and then the shift toward experiential. retail data only captures restaurants and specific types of services. it does not capture the big

demand in experiential, consumption of media, other kinds of goods that businesses will have to pivot to provide to their consumers in new and differentiated ways. matt: there are some behaviors that are very sticky, for example, here in berlin, there is a service where they do their grocery shopping and bring it to your door and it is at your door in 15 minutes. that is something i guess i will never give up now that i have started. i have noticed a number of competitors popping up over the last x months -- six months. this must be one of the behaviors that is sticky for u.s. consumers as well. ann: we are seeing new businesses pop up, delivering exactly those kinds of services. one example here is foxtrot. focused on high growth wellness

categories as well as rapid delivery to people's homes. it is like what amazon has been doing at scale. what is so fascinating is, we are going to start seeing some of these high-growth consumer oriented businesses that have been hiding away in the private domain come to market through things like spacs and the ipo market. matt: how are consumers -- which new businesses will be able to cater to consumers' needs for experiential spending? we already saw a ton of online during the end of the 1990's, 2000's, online businesses trying to help you travel, book a table at restaurants. will we see a pickup in that kind of tech startup? ann: i think so.

i will give you some examples. we are seeing the intersection of retail, media, and real-life life experience coming together. an example is a business that is a kids retail concept, a retail store that build some of the space that toys "r" us left behind. it has a fantastic concept built into it. kids can go and engage in activities. you have a toy merchandising element. there is now an aggressive push into e-commerce. there is also ip content that can be put into programming that kids and parents can experience at home. that is the kind of model that brings all of these separate pieces together into a single brand, a single means of consuming them. matt: savings rates have skyrocketed, not just in the u.s., but here as well in

germany, across western developed economies. do you expect that money to be put to work by consumers now, or are they going to be using it to pay off debt? jamie dimon yesterday said that consumers are not taking loans because they are paying off debt. can they do both? ann: i think they can and we are at a fascinating point in time. on the one hand, consumers are think fully taking down their debt load on the one hand. on the other, we see massive demand for high ticket goods. things like autos, home purchases, because there is such crude -- such cheap credit available. matt: what kind of new businesses will we see come to market? what are you looking at at wheelhouse right now? ann: focusing on the creator

economies. influencers, celebrity talent, creators that have spent a lot of time building audiences direct to consumer social media platforms, now looking to monetize their fan base, pushing out authentic brands that speak to them and their viewership. the second one is how media and commerce comes together. you are seeing netflix pushing into merchandising. amazon is out there buying media assets. that is a trend that we expect to see in the private and public markets. matt: is the spac boom that we witnessed and fizzle out, is it going to come back once these companies start making real acquisitions and making actual revenue? ann: there have been a slow done in the number of new spacs

coming to the market but in terms of overall law activity, it remains robust. we have some exciting spac activity coming up. some of the sponsors have increased the number of spacs out there. 23 and me is going public, will start trading on thursday. fascinating business model. i think it is a consumer-products thing hiding in plain sight. those are really interesting things that spacs can take public. i think high-quality managers will win, despite the fact that it has become crowded. matt: great to get your insight especially after this retail data we saw. ann berry, chief investment officer at wheelhouse. coming up, the u.s. and eu agree on a truce for subsidies for airbus and boeing. we will get into it with henrietta treyz, next. this is bloomberg. ♪

matt: this is bloomberg markets. i'm matt miller. the u.s. and european union have agreed to a five-year truce over aircraft subsidies for aircraft -- airbus and boeing, ending a dispute for now that has lasted 17 years. that battle led the sides to impose tariffs on 11.5 billion dollars of each other's exports. for more on this, we welcome henrietta treyz, the economic policy director at veda partners. this has been an epic battle between boeing and airbus, the

u.s. and the eu. this has lasted for much of my professional life. why do you think now it is done? is this because the u.s. really needs europe to help it confront china and russia? henrietta: i think it's a combination of factors. there is a will from the biden administration starting with the president, but also down to ambassador tai who is deeply informed on the airbus suit, where she led the trade subcommittee, former staffer at ustr. she knows the entire history of this. the will is there to bring this to an end. there are a myriad of other issues that the u.k. and the u.s. needs to work out, the eu as well on issues like digital trade, climate change, china. as it turns out, this dispute is

now the low hanging fruit, which it had not been for some time. there is a will and there is a way. it will be the first in a string of changes that we see to u.s. trade policy with the european union. matt: that is exactly where i want to go with this. here, in europe, it is more expensive to get harley davidson motorcycles, jack daniels whiskey, levi's jeans, there are tariffs on a number of popular american goods. pickup trucks come at a huge premium here. is that the kind of thing that biden will convince the eu to temper down? henrietta: i think that will come later in the year as we start to get into the section 232 steel and aluminum tariffs. the biggest thing right now is the ustr is also issuing a eu

and u.s. deal on specific terrace, 232 tariffs, by september 1. we know the biden administration has prioritized investing in policy before getting into international trade, but setting out that deadline signals to me that they are hoping the infrastructure bill will be completed by then, and then we can focus on the top issue for the next three years, which is resolving trade issues and getting a multilateral world order back to normal. after we reach a deal on those tariffs, you could see those tariffs start to come off. certainly heading in that direction before the end of the year. matt: in terms of what biden has to do with back home, how difficult will it be to get his infrastructure and american families plan past? henrietta: it is extraordinarily difficult.

we have watched this play out for six months. there was a lot that went into the covid-19 package. by the way, president biden, then vice president biden, also negotiated. it will be difficult to pull off, but i have 80% odds that it will happen. i have no real hope that it will be bipartisan. i cannot find the republican votes that you would need to pass the bill with republican support. i think we will see the democrats go the path of reconciliation right after the fourth of july recess, come back and get everything in a row. they will get the top line spending number, and deficit finance goes to the rest.

getting in donne in july is a possibility but september is more my expectation. matt: let me ask you about the fiscal stimulus injections we have had. as an economist, what do you expect the results to be in terms of inflation? we have had 35% gdp injected into the economy in terms of fiscal stimulus, and at the same time, the fed has -- is all of this going to pass, is it transitory as jay powell wants us to believe? henrietta: i think you can look at specific areas where inflation has been so rampant, a number of commodities, it is fascinating. you have had this dramatic run-up in lumber. all of a sudden, this week, it has dropped by 40%. that is the kind of psycho that we will see.

fast up rises followed by a steep decline. as these prices shoot up going into the pandemic, which disrupted a host of supply chain issues, how we get products to market, we are starting to see that come back to more normalized patterns. this is a once-in-a-lifetime global pandemic. there will be dramatic swings. we have seen that in the labor market which should succeed million jobs. now we are seeing it in steel, aluminum, lumber prices, rental cars. that will all come down as we start to come out of covid, out of this pandemic, lockdowns. i have no overwhelming concerns that the federal reserve is not in a position to handle this. matt: looks like the markets agree with you now with treasuries under 1.50.

thanks for joining us, henrietta treyz, director of economic policy at veda partners. still ahead, coinbase founder fred urschel on why he thinks crypto will be the biggest world changing technology of the decade. this is bloomberg. ♪

matt: this is bloomberg markets. i'm matt miller. if you are an avid crypto watcher, you'll pay attention to early crypto adopter and coinbase co-founder fred ehrsam. he is a legend in the industry. of course he believes blockchain will be the most world changing technology of the coming decade, like so many of his peers.

on the next episode of studio 1.0, he discusses regulation and why the u.s. make it crypto wrong. >> i think the u.s. is at a very important crossroads with crypto today. the u.s. is blessed with the best currency and the world reserve currency today. it also tends to be the de facto financial regulator for a whole bunch of the world. we also have a history of being the strongest technology country in the world. if you look at the most valuable companies in the world today, most of them are american internet technologies, google, microsoft, facebook. i do think that crypto is a nuanced issue, and it is possible that the u.s. gets crypto wrong.

i think, today, you have a lot of regulators whose job it is to mitigate risk and keep us safe, and that is appropriate. at the same time, i think crypto is the next internet-sized opportunity for the united states, has the potential to create as many if not more jobs than in the internet, similar economic growth. i think it has the potential to square the circle on the privacy internet issues that we've been talking about with big tech companies for the last 10 years. namely, we could use these technologies to continue to own our own data while still getting the benefits of the internet platforms we know today. emily: china is taking us down on crypto for better or worse and that is where a lot of the mining is happening. do you have concerns that china will be the u.s. in crypto? fred: candidly, yes, and it is

on multiple fronts to your point. there are government programs to exquisitely build using crypto. this is true with their initiative, which is making a digital renminbi. it's also true of local governments trying to use blockchain technology. to your point, historically, most crypto mining has been in china. recently there was a government crackdown on mining, often times because energy was being siphoned from the chinese grid in ways that may or may not have been kosher. i think there is a huge moment of opportunity today for miners globally to step in, on the crypto side, to make it more decentralized. if you want a view from a nationstate point of view, that no single country is in control. matt: you can catch that full

interview of studio 1.0 tomorrow at 9:30 p.m. new york time, thursday across our other regions. you can also check it out online at bloomberg.com. coming up, toronto mayor john tory joins us to discuss reopening the city and the countries red-hot housing market. this is bloomberg. ♪

mark: i'm mark crumpton with bloomberg first word news. there are new signs that new york state is returning to a sense of normalcy after the

coronavirus pandemic. governor andrew cuomo made an announcement a short time ago. >> we get back to living and life. the state mandates that have proven right and correct and brought us through this pandemic are relaxed as of today, effective immediately. mark: governor cuomo said he was able to take the steps now that 70% of new york's adult population is at least partially vaccinated. the last protocols in place included social distancing requirements, capacity restrictions, and health screenings. early in the pandemic, new york city had the most coronavirus cases in the world. the coronavirus pandemic is picking up steam in moscow. the number of seriously ill patients hospitalized in the capital has toured by 70% over the last few days. the city's mayor says there are more than 6800 new virus cases

in the past 24 hours, up 78% from a week earlier. moscow officials introduced new restrictions over the weekend to limit the spread of the virus. china is criticizing the united states, calling the country "very ill, indeed." the comments from a foreign ministry spokesperson after president biden express support for european allies at the g7 and nato summits to present a more united front against beijing. it is the latest sign of beijing's frustration with washington over numerous issues. lina khan, a legal scholar who has helped lead a movement for more antitrust enforcement against technology giants, was confirmed by the senate today for a seat on the federal trade commission. this gives democrats a majority control of the commission. khan, a 32-year-old columbia law

professor, rose to prominence as a year law student when she wrote a research paper casting amazon as a harmful monopoly. global news 24 hours a day, on-air, and on bloomberg quicktake, powered by more than 2700 journalists and analysts in over 120 countries. i'm mark crumpton. this is bloomberg. amanda: welcome to bloomberg markets. i'm amanda lang. matt: i'm matt miller. we welcome our bloomberg and bnn bloomberg audiences. here are the top stories we are following from around the world. in just a few moments, we will speak to john tory, the mayor of toronto, about the cities red-hot housing market amid a new report from bloomberg economics that dubbed canada one

of the frothy is to markets in the world. more on draftkings as shares drop by the most since march after a short seller said it is betting against the online gambling company. and we will preview what to expect from president biden and putin's meeting in geneva tomorrow. joining us to talk about that is angela stent, author of "putin's world." amanda: we are seeing something of a similar kind of session as recent sessions, which is to say a quiet one at or near record levels but moving sideways in this range we have been stuck in. today it is technology that is weak on the s&p 500. energy and industrial leading the way higher. exxon and chevron are rocketing because the price of oil continues to jump. new multiyear highs with some big traders globally saying $100

is not out of this world. of course, opec, new production has yet to come on stream, so we are warned by those same traders that there could be a slip. that is sending part of the markets stronger. consumer discretionary and tech is the weak spot. that 10-year yield hovering around 1.5. will the fed have anything to say in the press conference? perhaps that will give us some insight into the beginning of thinking about the end of quantitative easing. we have been talking a lot about lordstown. it says it has adequate funds for production through may 2022. it also says it is not seeking to raise money, has reconfirmed orders in the last two weeks. lordstown very much in order as some executives have parted. it would appear that the short-sellers are circling this one as well. matt: including the chief executive officer, as well as the chief financial officer.

those are two really important leadership posts. there are questions about the orders that lordstown have taken. how many people really want to buy one of these trucks? the president of the company says they have reconfirmed orders in the last two weeks. does not say exactly how many there are, not printing any -- putting any quantity on this, just that they have enough mind to last almost a year, that they have actual orders. enough to boost the stock by 10%. we should note, trading at $10.17, the stock traded at well over $30 on a couple of occasions. it has certainly been chopped down to size, but it will be fascinating to see how this goes through. of course, they have taken over some closed gm plants, and

people want to back to work in that state of ohio. let's turn to another stock of the hour, shares of draftkings are falling after short seller hindenburg and knows it was betting on a decline for the online gambling company. stocks editor dave wilson is digging in. dave: we are seeing a bit of history repeating itself. just yesterday, we saw the management changes at lordstown motors. hindenburg research was all over that company in march. you saw the effect. now they are all over draftkings. they came out and said they are betting against the company, putting out a critical report that focused on its technology unit, raising issues about its business dealings, also questioning their spendings on promotions and marketing. that has been going on even since shares have risen since

they went public to a blank check company in april of last year. the chart certainly shows the stock has held up even in the face of that selling. you have a situation where companies are under scrutiny. just as lordstown was before, nikolaaa before that. draftkings has come up with a response saying they did the research, when it came time to combine with sb tech. a small piece of the business, just 12% of last year's revenue, the gaming software part of the business. they said that they came out and reviewed before combining with them and going public. the company was "comfortable with the findings." so you have that going on. we should take a step back and

say that this is a business focused on making money. analysts that we have surveyed are not expecting a profit out of draftkings until 2026. there you see the response. the report was written by somebody who is short on the draftkings stock, and certainly that is happening today. matt: that is their business model. amanda: you mentioned lordstown and nikola. how have they been faring since hindenburg took a hit at them? mayor tory: they have been taking a -- dave: they have been taking a beating. nikola, hindenburg first weighed in in september on that stock. you are talking about a couple of shares that have tumbled and have gone through management shares as well. the top two executives at

lordstown stepping down yesterday. in september, just after hindenburg came out with the report, the founder of nikola stepped down from that company. you can understand why the people at draftkings are concerned about hindenburg's interest. clearly, not one that they share. matt: thanks very much for joining us on today's stock of the hour. dave wilson. i call him the stocks boss. coming up, we will set the stage on what to expect from president biden and putin ahead of tomorrow's meeting in geneva. angela stent joins us from georgetown university. this is bloomberg. ♪

matt: this is bloomberg markets. i'm matt miller. with amanda lang. biden and boudin are set to meet in geneva tomorrow following summits with the g7, eu. here is the state of russian relations heading into that meeting. president biden: we are not looking to set up a cycle of escalation with russia. >> it is not us who brought russian-u.s. relation to the current position. president biden: i'm prepared to take further action to respond. >> we don't have disagreement with the united states, they have the only disagreement. president biden: he won a stable equitable relationship. >> which is why what they have done until now is a mystery to us. president biden: responding to

attacks on our democracy. >> the united states and russia have corresponding interests. >> we can also cooperate when it is our mutual interest. >> i hope that our meeting will be constructive. matt: joining us now is angela stent. also a professor of government and foreign service at georgetown university. thanks for joining us. how do you view this? do we, westerners, as americans, have a skewed view of this relationship, or is vladimir putin's rule and behavior really as we see it? >> this is the worst relationship we have had since before the end of the cold war, since mccalla gorbachev.

certainly, since putin has been in power, he has consolidated a very authoritarian style rule and russia has returned to the world stage very effectively even though it's gdp per capita is about the size of italy's. we are dealing with a power that is on the move. i think president biden is correct to want to find a way to lower the tensions, be more productive, if possible, and interacting with russia, and we also need to remove russia as a domestic political issue. during the trump administration, it was a toxic issue. also, he says he would like to put a guard around this relationship, ensure that the u.s. doesn't have to keep spotting to fires that emanate from russia, so that he can face the major challenge to the united states, and that is china.

amanda: the russian front, professor, there are some who may argue the united states has not responded strongly enough where ukraine is concerned, more could be done with belarus and russia's role there. has the u.s. lost its upperhand, has it allowed russia to play the strongman in that part of the world and making it difficult to negotiate? angela: we do not have a strong hand in that part of the world. ukraine is an existential question for russia. president obama said that at the time of the annexation of crimea. it is not an existential question for the united states. we are providing defensive weapons, other assistance, but there is a limit to which the u.s. will go in order to combat what russia is doing in ukraine, because nobody wants to risk an all-out confrontation with russia. matt: germany is closer

geographically, but perhaps even weaker when dealing with putin? germany is currently reliant on russian gas already and planning on making itself even more reliant, if it can, with nord stream 2, passing billions and billions in funds to finance putin and any of the antics that he feels should come next. angela: germany is a major trading partner for russia, dependent on russian gas right now, about 40% of its supply, as well as other european countries. the germans fought two wars with the soviet union, and also allowing for russian unification, so the german attitude toward russia is somewhat different than the u.s. they are neighbors, economically

dependent, so there is a limit to which the germans would be willing to go to take action to promote russia. you see that in their unwillingness to agree -- matt: they are not currently direct neighbors, although they may well be soon, if vladimir putin continues his politics with the free countries that separate them. shouldn't the germans do more to beef up their military and get aggressive? angela: that is certainly the view of the united states and a number of other nato members. the germans are still doing with a very militaristic past. they certainly could do more. amanda: we appreciate you being with us. wait to have you, angela stent,

professor at georgetown university. coming up next, we are talking to the mayor of toronto, on the hot housing market here and reopening the city as the covid pandemic begins to abate. that is next. ♪

amanda: this is bloomberg markets. i'm amanda lang. candid i got attention of the unwelcome kind today. our hot housing market deemed among the most unaffordable in the world, a subject that has been top of mind of policymakers. with us now is the mayor of toronto, john tory. thank you for being with us. this is not a foreign subject

for you, for sure, but to have the on affordability driven home, what can be done about it? mayor tory: in our case, knowing we cannot control interest rates as a city government, for that matter, we cannot even control something that is good, 100,000 people coming. pre-pandemic, this was the fastest growing city in north america. we are trying to address the supply of affordable housing in particular, taking measures like short-term rentals to stop some of the units being taken out of circulation for people to have that were previously airbnb type things, putting on a vacant homes tax, but none of that addresses the questions of the marketplace or housing market driven by demand. i keep asking, it is being as much driven by the fundamentals as much as anything else, and i'm told it is.

we have huge growth taking place in the city, so we are trying to provide affordable housing, some ownership, and those are the measures we can take as a city government. amanda: one other the things that surprised everybody is the housing market continued so strong through the pandemic. we now know the stay-at-home effect had a strong effect on pricing and the willingness to buy and move. how is the city doing economically? is it still among the most restrictive places in north america? how does it look economically? mayor tory: we suffered like everywhere else. a lot of our businesses have been closed for extended amount of time or severely restricted but they are starting to open up now. there is the same pent-up demand from consumers who have not been able to spend. my greatest level of optimism arises out of the fact that i have continued to do virtual trade missions over the course of the pandemic, and that we

continue to attract new offices to toronto, well-known companies , including reddit, netflix, uber is expanding in terms of their r&d work they are doing. there has been all kinds of activity, but it has been very tough, especially on the downtown businesses. like i've been reading about in new york and elsewhere, people want to come back to work. businesses are ready to take on a renewed challenge in a post-pandemic world. i am an optimist. we have the largest number of construction cranes, people are still coming with construction applications, including for office space. i'm not complacent about it but, on the other hand, i am not quite optimistic about our prospects once we can get through this, making progress on getting everyone vaccinated, and moving forward. matt: are we going to see a canadian independence day on july 1, the likes of which

president biden wants to celebrate in america on july 4? will we see a reopening of toronto and the country? mayor tory: the actual answer to that is unfortunately not. we previously canceled canada day celebrations when we had to do that. you will see much more low-key, neighborhood by neighborhood celebrations of canada day on july 1. but i don't think that is because the city is not opening up. i think the city is opening up in a cautious wave. we had a difficult third wave. but we are now near the top of the g7 for first doses, somewhere around 75%. we are making great progress on the second doses, but that will be key. the measure will not be the size of the celebrations on canada day, but how are we doing with people being back to work, culture, sports, entertainment and so on. it will be a gradual process

that will be noticeable on canada day, just not the biggest celebration ever, just not happening at the big square in front of my office. amanda: we appreciate your sign -- time. we do look forward to that celebration one day. john tory is the mayor of toronto. matt miller, we will have to get you up north for that. i have been there, it is great, but we need to do a canada day party. matt: i would love to go to the aquarium, the toronto zoo, hockey hall of fame, the museum of ontario. i am there. amanda: lots of good stuff. we have to get you up here. ♪

mark: president biden has arrived in geneva ahead of his planned meeting tomorrow with

vladimir putin. mr. biden plans to warn mr. boudin that the u.s. will respond to actions that conflict with its national interests. the white house expects the meeting to last 4-5 hours but does not anticipate any paul -- any concrete policy. the federal government's efforts to combat domestic terrorism are focused on stopping violence, not policing ideology. that is from merrick garland is the biden administration unveiled its strategy to prevent attendance -- events such as the january 6 siege from happening again. u.s. officials said the most dangerous domestic threat comes from potential bull attacks by white supremacists. katherine tai is sounding an optimistic tone about the partnership between the u.s. and