♪ >> berg -- taylor: -- caroline: the bounce back is strong. that stack of 2000, rebounding significantly. yields push higher. taylor: the question is, would you miss? caroline: stocks rally in their biggest since march.

treasuries bow out of the spotlight, finally dropping a bit. yields pushing higher. some are not looking at the dip, they are looking at alternative assets. art, jewelry. we speak with the ceo of christie's later. meanwhile, the -- of tom barrett , arrested of acting as an unregistered agent. more on that ahead. first, we got to dig into these markets and some breaking earnings. taylor: further breaking news from united airlines, look at their second quarter adjusted loss per share, $3.91. that is more than the expected estimated loss per share of $3.84. they are saying they are seeing a faster than expected recovery. as we migrate toward the top, revenue coming in at 5.47 billion dollars, outperforming estimates of $5.35 billion.

second quarter passenger revenue, light. $4.37 billion. indeed, looking to turn that adjusted pretax profit in the third and fourth quarter of 2021, ever looking so closely towards that profitability later this year. caroline: meanwhile, ual down 1/10 of a percent. it had a significant rally today, all airlines did. we got the bounce back, the desire to get back into reopening. tylor: back into the reopening trait, look at what is happening to that reopening trade. this incredible terminal, it's like we planned it. united airlines comes up, we migrate to airlines, cruise lines. the problem, that has started to rollover, as a deed -- it did indeed peak in march and april. the 10 year has been tracking that closely. both of those could a lift. ever so correlated.

let still with this correlation with kriti gupta. kriti: let's start off with the inflationary trade. the green does not necessarily mean it is a risk on day because we got to put it into context of yesterday's selloff. what caught my eye, and another big hot tip for taylor, this idea from daniel curtis, our markets producer, the one and only. taylor: my former boss. kriti: he wasn't my boss, but he is my favorite. he put the call ratio at the s&p 500. where that ended monday, how bearish a signal it was, the last time it hit that level, we saw a massive buying rally. the question is, what happens tomorrow? there is our beautiful chart from our wonderful dan curtis. you can see from last time where that arrow points, the next day

you have this massive by rally. this is potentially exactly what is happening. the question is, what happens tomorrow? taylor: as -- caroline: as much as we saw industrials and financials lead the charge higher from more beaten up areas, you might think that is risk on. so too big -- so too are big tech names. kriti: taylor was talking about correlation. we have to look at the fact that there are correlations coming back into view. the dollar, when you start to see foreign investors hopping back into u.s. assets, part of that is the vaccine come apart is the reopening in the u.s., which you are not seeing around the world. the dollar is a major part of that. that isn't the best signal for a lot of foreign investors, but today it didn't seem to matter. caroline: thank you. let's turn to what investors are trying to get their head around,

inflation. john authers today writing the markets are no longer worried. you can see the measure, the five-year breakeven far below. are we or aren't we worried about inflation? >> mi? -- am i? yes. the markets? no. if the five-year is barely above 2% -- i mean the last time i checked i think we were above 100 basis points, but we are still in a not had all steep and flattening yield curve. though suggest the market is not worried about inflation at all. which is very strange, but last year we know according to the national bureau of economic

research, we have very serious recession that only lasted two months. presumably, lots of other things are now also possible. that might include an inflationary environment where yield curves flatten and breakevens go down. by any normal metrics you would use, the market is not bothered by inflation at all. taylor: i have a bone to pick with you. i woke up this morning and had two competing headlines. the first of which, an incredible 35 indicator you put out weekly measuring inflation. that headline says inflation is here, how bad is it? the next headline i get from you is, markets are not worried. what are the indicators telling us? ? john: inflation is obviously a fact. you would know this when you were -- start to exclude the sectors we know to be particularly affected by the pandemic.

you can exclude used cars, air tickets, we know the lists. you still actually would have pretty elevated inflation, inflation right at the top of its reasonable bound. any number of sensible people would go, i happen to want to buy some of these things. i don't take kindly to you excluding this. [laughter] inflation may not be transitory, but it is fact. there are people trying to cast doubts on the bureau of labor statistics. it is unfair because they are very transparent. they allow you to mess around with their data and exclude all the things you want to and try to pretend there is not any inflation. you can do that with the data they provide. the basic point is the markets has one particular point of view. if you then look at consumer expectations, michigan had another dose of this last week.

the ism's, nfib, they are all screaming. several standard deviations above the norm. plainly there is something real there. those aren't gallup polls, those are detailed surveys people fill out, answer actual questions. they suggest there is a real problem with inflation. and then if you look at the other -- they are available -- very finely balanced. you can make arguments on the quantities market, the labor market. i am a congenital worrier. british. [laughter] caroline: why isn't the market worried? you are on the phone all day every day, why? john: there is an element of the fed being -- confidence in the fed.

it is one risk that almost never gets mentioned, but is implicit people think might happen is that the fed does not make the mistake and expertly navigates us through these difficult times. i have literally never heard anybody suggest to me in the last year and a half that it might just happen. it would surprise everybody if it did. the main reason -- this is not good news -- the reason we are not worried about inflation is the reason you are not worried about getting a speeding ticket if you get a car that can't drive more than 30 miles an hour. people are now more worried that deflationary forces are going to be ascendant, partly thanks to what is coming out of china in terms of why it has catalyzed the turbulence in the last few days. it is about covid. taylor: john authers, so smart on all things inflation.

a conversation we could do every day if we had the time. stay with us. former trump ally tom barrack charged with illegal lobbying for the uae. we talk about him about his relationship in the middle east. more ahead. this is bloomberg. ♪

caroline: top trump fundraiser indicted. tom barrack charged with acting as an unregistered agent for the united arab emirates. according to the report, barrack conducted -- his relationship

with the middle east with erik schatzker. >> everyone knows you have deep and long-standing ties to qatar, you have a history in saudi arabia that goes back to one of your first jobs ever in the 1970's. are they behind you in this effort? >> yes. [indiscernible] the region is complicated. >> i heard that the -- family is backing you. >> yes. -- is one of the smartest human beings i have ever met. he comes from amazingly humble origins in one of the most complicated countries in the world. a tremendous role model. when we talk about -- relationships, he is thinking a decade ahead. i have a hard time -- [indiscernible]

he has an incredible team. india is amazing, you look at india and china and just look at the numbers of where we are all going, he is a great friend and a valued partner. caroline: tom barrack speaking about future opportunities. and was looking at new spec ideas. -- spac ideas. let's talk about this indictment and what it means. >> it is a really wild time for this to come down. you heard him say, this is a man of the world who has investing friends everywhere. where that got muddied during the trump years was, he was at times, you know, somebody trump was speaking to, still running

his business and had all these friends of the middle east who had their own agendas as prosecutors laid out today, he was specifically focused for a time on the agenda of the united arab emirates and what they wanted to see happen in washington. they document all of the ways he worked to push their policy goals. taylor: you mention to, what are you hearing for someone who has to be arrested. how serious are the charges, how serious the evidence must be for this to come to fruition? >> prosecutors layout pretty clear cut text messages and other messages, and specifically an emirates counterpart. in all of the ways where specifically instructions came down through emma rathi

officials, it looks like a good set of evidence. as far as not registering as a foreign agent, that is something that other people around trump have been ensnared in previously. paul manafort, michael flynn, elliott broidy. brody was engaged with the emirates as well. taylor: we appreciate you running here to chat with us as we continue to tie further into these headlines. a story that is not going away anytime soon. we will indeed bring you back. coming up, from real estate to the art market. christie's seeing one of its best first halves in years. we discussed the performance with their ceo next kriti: -- next. this is bloomberg. ♪

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caroline: demand for everything from non-fungible tokens to jewelry seeing record sales. christie's released a key performance take away from the first half of the year. the auction house selling $3.5 billion in art so far this year. 13% higher than pre-pandemic 2019. we've got ceo guillaume cerutti. talk to us about what you are seeing in 2021. people are back and buying all sorts of collectibles. >> there were rebounds, global. last year, strong demand but supply was challenging. this year, strong demand, very resilient from everywhere. especially asia.

the two together, we came to this -- what we called -- for christie's and we are back at higher levels than pre-pandemic. it is a complete turnaround. taylor: you talk about supply mode is in demand right now? guillaume: demand is global and uniform. that is what we have seen. it is true that everything that relates to the 20th and 21st century modern, contemporary art and design, and fts, jewels and luxury is in demand. but, less than two weeks ago, we saw in london a drawing by da vinci at a very strong place -- strong price. caroline: talk to me about london. many were handwringing brexit being an issue for the arts market. has it? guillaume: it is a challenge. brexit means more complexity

when you export from the eu to london, it is more complicated. we reacted in the best way. we made a life of our clients easier. we play on the fact we have auction rooms in london, paris, milan, and altogether europe has been very strong and positive. taylor: you say 30% of buyers are new. 31% of new buyers are millennials. what is the new young crowd telling you? guillaume: they are telling us many things. they are interested in the cutting edge chart, contemporary art. they drove us to change the profile ourselves. we invented a new way of segmenting ourselves and creating a new category to address these new demands. they are telling us that they want to see a more diverse art

market with new artists. more female auctioneers, which is good news also. being inward looking in a typically conservative industry. caroline: when you begin in the 1700s, that is something to stand for. we talked a lot about the -- auction, such a landmark sale. drew everyone's attention to what so-called nft's are. the people buying, i think statistics are amazing, from this auction you saw come about, 90% bidding were new clients? are they staying with you? are they continuing to buy? guillaume: that's what we want. that's what happens. one of the bidders for the nft,

two weeks later was active in one of our classic sales and bought a major work by picasso. we are trying to expand what they do and we also want to convince people who are traditional collectors buying fungible art that nft's are interesting because it is a real category. what we have done at christie's is connecting these two worlds. that's what we want to with these clients. taylor: you had a statistic about female auctioneers, and you have a goal of a more gender balanced, just 66%-30 4%, now highlighting more toward the goal of 50-50, how do you maintain that? as we have talked about, we are trying to turn a moment into a movement. how does it look to you in the future? guillaume: we have no choice,

but we are not forced feared we are doing it because -- we are not forced. we are doing it because it is right. it is what the market wants. what we have done is accelerated and we have great female auctioneers. we put them on the world stage and tell them that is your moment. one of the most important moments in the six months, we sold a major work in new york, auctioneers by gemma, and i am sure that made a difference. caroline: what about management? guillaume: of course, management is the same thing. our president for america is a woman. recently appointed. it is something we are seeing is a major objective, but it is

always thanks to their merits. caroline: you started the conversation by saying previously were held back by supply. why are people willing to sell? guillaume: what was lacking last year was people were waiting on wanted to see what was happening in general, especially the art market. at this moment, we had to restructure, change our business model going more toward online sales. the clients on the selling side -- and it is normal -- they wanted to see what was happening. what we proved last year was at demand was strong and the way we adopted to the new era was right. people are more confident, they are coming back. caroline: here is hoping it remains post-covid. guillaume cerutti, come back again.

christie's ceo. bloomberg technology with -- you guessed it, me -- is next. taylor: were the highlights? caroline: earnings, but mainly blue origin. [laughter] ♪ so... i know you and george were struggling with the

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