i'm carolina ine >> joe: i'm joe weisenthal. caroline: the yield pushed lower. joe: the question is "what'd you miss." caroline: stocks falling into the close and talk about the trade. in particular.

central bank is nobody is talking about it. and earlier than many thoughts. and expectations to hot economic growth and inflation that is driven in part, which we'll hear from the fed speakers are going to get a new showing. what a wild ride. joe: the big story this week. stocks were down, but a little under 2%. not the end of the world. the real action is in the yield curve and see it in the 5:30 spread. look at how sharp. normal curve and then, bam in the course from wednesday afternoon to now, an extremely sharp move, one of the biggest moves in years. you see that compressing. for more let's welcome our

reporter. what's going on? >> at least when it comes to the long end. what a week. and remember, the narrative for the past few months is going to let the economy run hot and the inflation run hot and take this out with a big grain of salt, word-for-word and seeing this change where the market, the bond market is saying, actually maybe the fed is going to have breaks in two years and two-year yields shoot up. and the long end has just been on fire. a lot of buyers there and seeing this textbook in the yield curve. brutal, just in general, this is a huge gut check. and only been about two days and not make too much of it. those sectors took it on the

chin and sawtek outperform. tech, nasdaq 100, only index and in the green today and the dow jones industrial average for the week and the dow jones industrial average dropped 3.5%. that is what you saw play out. joe: yesterday, we were talking about on this show, feels like summer 2020. spread come compression. is that the big picture? it feels like with the fed talking about inflation, it is back to the old. >> everything we were thinking about, we are going to see inflation and get above that 2% target that has been missing, maybe that is the case but feels like the market is saying, the bond markets is going to be over

in 2023. caroline: this isn't the clash that we were talking about. a.m.c. was down 2% and what are the outperformer. >> and trying to fit stocks in this macro narrative. it feels like they are in their own world and got the lead on it. the traders who are in these stocks and not listening to michael. al little while ago but the real action is on a.m.c. and in their own own world. caroline: always smart on the money. coming up, getting into the knit gritty of shifting costs.

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>> and very common line. absolutely certain, not slowing down at all up to the summer of 2020. highest in years and years.

for more what's going on, the c.e.o. at the mercury group. what does the mercury group do and what is the biggest problem that your clients face? >> we are focused on the global logistics, steel, metals, ores, agricultural commodities and trading commodities and banks. supply chain management, focus. choorlchoorl supply chain focus and it is a great story out of control shipping. one manufacturer in the u.k. and and i never known such challenging conditions from the and kind of teddy bear. how much are you seeing these prices go through the roof?

>> we are seeing astronomical jumps and just daily fluctuations of what is happening in the markets. if you look at our focus on the types of commodities we are moving, on the medals and industrial commodities, we are seeing ships that are carrying those types of commodities and have tripled in costs for daily higher rate. several months ago, a ship that would carry steel from the far east was running at $10,000 a day for hire. but now we are seeing over $30,000-plus per day to take a ship on long-term lease. that is filtering down to the per ton cost of freight that is going into the aluminum, copper,

steel, that is going go into the consumer goods. we are seeing it on the shelves. joe: there are areas of supply chain and commodities that have shown some signs of easing. doesn't look like that. is there any light at the end of the tunnel? what's it going to see that number ease a little bit? >> it's a good question, joe. we saw china intervene on the copper side by releasing national stockpiles. it's going to -- until there is a downward pressure on the commodity pricing and work that overall we aren't going to see much happening on the industrial, certainly on the industrial commodity sly-chain side. retail is on the container.

but everything is still hot right now. so downward pressure with china jumping in and downward pressure on agricultural commodities but comments today on interest rates certainly helped but when is this going to end? good question. i would like to know the answer. joe: i thought you were going to tell us. >> if i knew the answer, i would be buying some interesting future contracts, derivatives. caroline: how are you going to hedge this out and try to alleviate this? >> the big thing is communication with our clients, making sure they are not stuck out there, not letting them execute trades and purchases without having the great support. getting that point across to our clients is key to work in

lockstep and make sure if they are going to pull the trigger on the trade, aluminum, buy steel or iron or coal, that we have that great support to back up that trade before they make that particular trade. so communication, hammering home what's going on in these markets to our client base is just critical right now. getting that communication out and knowing what is happening. infrastructure, joe and i talked on the podcast last week is another big part that we are seeing strains all over the place. understanding what is happening, understanding the constraints we are seeing because of the infrastructure situation, not just in north america but throughout the globe. what ports to avoid, what parts of the inland river system, all key. joe: one thing we have seen in

this amplification. if companies are and maybe make a larger order down the road and uncertainty about supply. does that create an issue with booking freight down the road and i don't know what i'm going to need in september and ogget but i'm going to buy some space now because i want to get it and get on the ship, creating further problems? >> not as much of an issue. at least i'm not seeing that, not seeing that as an issue. the focus is securing face for immediate needs and short-term needs. we are working on longer term business, steel coming out of southeast asia, running into 2022. and we are trying to secure that in long-term contracts with some

flexibility. but not necessarily seeing situations where people are making ghost bookings that they think they will not need and not going to accomplish much at least in the world of industrial commodities. caroline: it seems like how much of these seemingly isolated incidents like the block in the suez and covid in the chinese ports. how much of these things at a time when the chain is so stressed compounds? >> good question, the suez situation was done in a week when they cleared the ship. it caused uproar and ships diverting going around the southern tip of africa to avoid

the canal. it turned out it was probably not the best move forever those ships. but what we are seeing in china right now with a port just outside of hong kong where the covid situation having massive delays and now container car years avoid those ports, that is having major disruptions. there is already a backlog and tracing those on the teddy bear example. you already have a situation where containers are getting left behind and you have ships avoiding these ports all together. just really compounding the situation greatly. we saw a few good pieces out of the media about how many ships are sitting out of these ports. joe: really appreciate your

insight in what is another area of the economy. mercury group and hear more conversation with him on the recent blog post. you can find on apple. caroline: rebuilding venezuela's oil industry and we will talk the oil minister next. ♪

caroline: inflation on the economy and the market. oil, such a runup in oil. it fell in lockstep with the commodities and looking at some of these countries, they have a lot of reserves. joe: we are looking at an oil

chart in venezuela and venezuela is a powerhouse, for many reasons including -- having been crippled by u.s. sanctions. the president said it can recover and in an interview, he laid out his plans for oil production comeback. >> venezuela can achieve up to five million barrels of production. we have been pursued and don't lend money to any private company to invest in oil. that is a substantial investment. and blockade was imposed on us. we lasted 14 months without being able to sell a drop of oil. now, we are reconstructing the

investment and we are recovering the wells and recovering the production and recovering the international commerce. in the middle of serious sanctions, because we don't have to forget, because it's very easy to say in the news, venezuela who has the largest oil reserve in the world we used to produce three million barrels. it is maduro's fault, he is a a dictator and easy to say it but no one is saying that venezuela was pursued and a single ship reached its shores and forbidden to take out any ships, that we had ships with fuel stolen. nobody says they are not given a single dollar in the international banks and nobody says that venezuela with its own effort and own little money is recovering.

and we come from producing almost zero barrels and already at 500,000. and with our own effort and heroism from the workers in the oil industry, we are going to recover. >> they tell me the problem is the lack of investment. >> it is the fundamental thing. >> how much would it cost to reach a level of five million barrels a day? >> it's a calculation that needs to be made. i'm not going to trick you. >> billions and billions. >> there are some who say it would pass $30 billion because, well, venezuela has an infrastructure that is quick to recover, an infrastructure which is what we are doing now. we are recovering an infrastructure that was there and with some basic investment,

as i say, doing a lot with little, we have achieved that the production begin again. joe: that was our exclusive interview with the venezuela venezuela president. extraordinary reporting on the question of oil, how much is the new president and the prapts new relationship between the two countries what can be done? >> it's everything. there is so much they can do. the oil industry was built by americans and chevron and exxon. french companies there, spanish companies that really this is an american industry and now that sanctions are in place, they can't get sparle parts. and getting pair parts and only so far you can go with that and

one of the reasons that while the chinese and the russians and iranians, they can't get production back up. it's about 500,000 barrels a day. they hope to get it to 1.5 million barrels. that is a target. they talk about getting to 5 million barrels which is in excess of their historical high. that is a dream. they can't do it on its own. the only way they can do it if investors can come in, capitalists from the united states and other countries can move in with their technological expertise. but a lot of things have to happen. venezuela is a humanitarian disaster and a deal to get to that point is a long way off. caroline: this is years in the

making and trying to talk to the capital markets. but a lot of brokering has to go on. >> absolutely. the question is joe biden. donald trump, under the influence of some political hardliners and let's not forget vessel significant group of people free venezuela that support marco rubio pursued a policy of regime change. the purpose of these sanctions was to get him out and it didn't work. trump is gone and he is still there. and so getting maduro out of the pal ace is going to require a different approach. the sanctions aren't working. the biden administration says it wants free and fair elections as opposed to regime change is disposed to negotiating. sitting down at the table with

someone from madureo's -- maduro's government and people from norway who are brokering this negotiating process. joe: it's not for us to say what is right or wrong. all we can observe and conclude that it's probably going to require a different path to a solution. caroline: what did you observe? joe: life in he venezuela. if you have dollars, you company live relatively well. blackouts are a daily occurance and interruptions in the water supply it's not. things are crumbling and everything is in a state of dekay. there is no water in the

bathrooms. people bring their own toilet paper to work. that's what it is like. caroline: thank you. now that's it for "what'd you miss." joe: "bloomberg technology" is up next. ♪

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