produce a deal on carbon trading rules after six years of failed efforts. he spoke with john micklethwait at the climate change summit in glasgow. >> i'm for making sure that we continue with our research and i am confident, yes, we can get there. human beings created the problem, human beings can solve it. ed: he added that he was working with russia and china to get them to participate in a deal to curb damaging methane emissions. kamala harris is in france, where she hopes to heal the rift between the u.s. and. speaking to a reporter in paris, she said she was looking forward to many days of production -- productive discussions. chris sununu says that he will

seek a fourth term as the governor of new hampshire and won't run for the senate against maggie hassan. a blow for senate republicans who had hoped that he would run and reclaim one of the new hampshire senate seats. sununu says that he believes he can be more effective serving as governor. people who are fully vaccinated are 16 times less likely to end up in intensive care or die from covid according to a new australian study that found 16 out of 100,000 people who had yet to receive a vaccine landed in intensive care or died after contracting the virus compared with fewer than one in every 100,000 who were fully vaccinated. this is bloomberg. ♪ -- global news 24 hours a day on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. i'm ed ludlow, this is bloomberg.

>> it's 1 p.m. in new york, i met matt miller, welcome to "bloomberg markets. here are the -- markets." ge splits into three, separating into companies focused on health care, power, and aviation. plus we break down the comments from jay powell. and we will bring you the latest on the crypto markets with the chief strategy officer for coin shares, which focuses on digital asset investments. first, a quick check at what's going on in the markets right now. the s&p is down, stocks can fall after eight days of new records. it's a drop of 22 points with a

drop on the dow jones industrial average. the u.s. 10 year yield comes down a little as well as investors purchase treasuries across the curve. the 30 year is at the lowest level since july. the bloomberg u.s. dollar index is right now unchanged with nymex crude coming up. that inflation and the inflation of prices at the pump as well is a big focus for markets this week. let's get back, though, to the story at general electric. those shares skyrocketing as they announce they are splitting into three separate companies, ending its iconic conglomerate structure. joining us now is nicholas heyman, analyst at william blair who has an outperform rating on the stock. i say iconic, somewhat also say

infamous conglomerate structure. what does this mean for the company? how big of a changes this? nicholas: it's about why you had a conglomerate. once upon a time you try to cross leverage r&d with managerial skills and credit ratings in order to be able to really balance out diverse cyclical cycles in different industries. today, much of that is really increasingly less relevant. it's much more important to have really 110% focus on one market and set of customers, because things are changing structurally so rapidly, you cannot be burdened by having to wait for

another part of the company to come around to financial strength or a return to growth or whatever. as such, this is a big statement , that their businesses are all in strong enough health to be able to sustain and be set up with investment grade ratings. matt: why has ge so badly underperformed? i like the nice five year snapshot on the terminal. comparing the underlying asset to benchmarks. it not only underperforms the s&p but if i put it up against philips or abb, why does it do so badly? 4 i would tell you that it's a hard company to understand and that bob pugh station was probably further enhanced as a perception of risk increased because of the ongoing element of capital. ge capital will be ended

momentarily as soon as they pay down the debt, the 25 billion dollars in protein -- proceeds from the sale. and then in turn we thought we would be happy with just one set of financials and income statements from one industrial company, but now ultimately we are going to see what we learned a lot about from when united technologies was broken up. if you look at the performance of otis and carrier subsequent to being spun out from that conglomerate industrial portfolio, it is dramatically outperforming the ongoing larger aerospace defense business technologies. this was the united technologies spent out, remember? matt: 100%, i remember. which company from ge do you think is going to do the best?

which new group? health care has obviously been a great place for investors to put money. aviation, not so much during pandemic. 4 the company that i would say has the most buoyancy is health care. we can see that today with siemens. plus the elevated valuation as opposed to the overall company in that industrial portfolio. it was notable and i think that will be the case here. you have kept 19 per -- 19.9% of health care going into aviation to help fund the development of the next generation rise engine. i think that's very encouraging. and i think, you know, as you spin this out, aviation will do well, but it's a long cycle business with long expensive

development cycles. matt: when i started off as a cub reporter covering siemens 22 years ago in munich, at that point they were also going through a conglomerate to breakup structure and then got back to a conglomerate. is that just a cycle that you see with these big industrial companies? 4 conglomerate ideas started at itt in the late 60's. i think that the market endorsement peaked in the late 90's under welsh. i think that ever since, they have been in the process of being unwound. clearly, i think that this will, you know, probably make everybody think harder about other large diversified companies and how they in turn will seek to maximize value not just through capital deployment but through actual corporate focus.

matt: nick, always great to get some time with you, especially with your expertise in this area. couldn't think of a better person to talk to about this. ge really is the big story in corporate today, a historic move that we will continue to talk about throughout the program. coming up, jay powell delivers remarks at the fed conference on diversity and inclusion. we will discuss his comments and the role of the central bank in addressing economic inequality, next. this is bloomberg. ♪

matt: this is "bloomberg markets." the fed virtual conference on diversity and inclusion is underway. jay powell spoke earlier and said that there were limits to what the fed could do to fight economic inequality with monetary policy. >> most entrenched in equities are beyond the power of monetary policy to address with specific goals being given to us by congress to foster the achievement of place -- price stability forms the foundation of a strong and stable economy. matt: here to discuss, samuel dubois cook at duke university. thank you for joining us. it's interesting, we just had

this horrible pandemic and lockdown, monetary policy was adjusted to help. but at the same time we needed trillions of dollars in fiscal spending in order to deal with that, which was probably just a drop in the bucket compared with the problem of racism and inequality that has built up in this country over the last few hundred years. is into the chair right, a lot more needs to be done than just dealing with this through monetary policy? >> oh, absolutely but i also want to applaud him for making that point and for the fed's continued interest and activities surrounding addressing questions of structural inequality and racial inequality in the united states. matt: at the same time, there is something, there has been a role that the fed can play and they have adjusted, making tweaks in

order to try to deal with inclusion and diversity in looking at, in looking at who is working, which groups of people are getting jobs. how has the fed done over the last couple of years. nicholas: they have made --4 they have made it -- william:th. and i think that chairman powell is correct there are limitations to what the fed can do with traditional instruments, including interest rate management. so, if we are concerned about the issue, for example, of wealth inequality in the united states, particularly the racial wealth chasm, the chasm of wealth between blacks and whites in the united states that amounts on average to about $840,000 per household, that is something that that has to be

addressed by a different set of policies then the woods that -- than the ones the fed has traditionally used and as you probably know, i'm an advocate of reparations plans for black americans who have ancestors that were enslaved in the united states. matt: and that's not something that the fed could affect, is it? >> not unless charged to do that by congress. congress must approve a reparations plan for black americans who had ancestors enslaved in the united states. i would add that the united states president of course has the capacity and authority of course to establish a commission to bring proposals to congress that might include certain activities that might be performed by the fed in the process of executing such a plan. matt: what kind of structure would your plan take?

william: the one i have in mind makes direct payments to eligible black american recipients of a sufficient amount to build their assets to a level that we erase this large gulf in the wealth we've been talking about. i would estimate at the present moment to do that it would require an expenditure by the federal government in the vicinity of $14 trillion. matt: reworking the tax code, bloomberg has been doing a lot of work on property taxes and how they affect inequality. don't you see much bigger structural problems that need to be dealt with even beyond reparations? william: well, there are always structural problems that need to be dealt with they cannot be handled by a single act but the problem of eliminating the racial wealth disparity would be aim -- would have to be viewed as a major game changer.

for black americans to have the average amount of wealth as white americans would be truly transformative and i can only say that it's limits of our imagination that set the boundaries on what the possibilities might be under those circumstances. matt: going back to the fed for a moment, it strikes me that while jerome powell and his team can focus on the labor force participation rate and they can try to bring up people from the bottom, those policies seem to also supercharge gains for the wealthy at the top. then in that case, they can try to address diversity and inclusion, but they actually seem to make the inequality problem worse. william: i'm not certain it's the fed policies that do that. it's the structure of our tax system as linked to our fiscal

policies that reinforce the degree of wealth inequality in the united states. but i also think the fed policies that increase employment, when they use soft interest rate policy, or that expand or result in economic expansion, primarily affect the incomes of people in they don't do much about the wealth position of individuals at any tier of the economy. i would argue instead that we really have to focus in a direct way on that wealth disparity and it is indeed something outside the realm of the conventional policies that the federal reserve uses. matt: you have been very outspoken on this at the university of course and you have written op-ed's, for example, like in "the new york times," have you had a chance to have any discussions with the administration?

they obviously have a lot on their plate but i assume this is something they would want to focus on. william: i have not, but have had significant interactions with researchers and leaders of several of the branches of the federal reserve. i think the federal reserve has displayed a greater degree of consciousness around these issues than the current presidential administration. matt: professor, thank you so much for your time. sandy, professor of public policy at duke university. still ahead, insight into what's driving a rally in the crypto market for the chief strategy officer for coin shares. this is bloomberg. ♪

matt: this is "bloomberg markets

," i'm matt miller. turning now to crypto, bitcoin, ether, new all-time highs amid a rally with a hedge against inflation and i'm not 100 sent sure about that. let's talk about it with meltem demirors, chief strategy officer for coin shares. for a long time, you know, i could understand the logic behind the thinking of bitcoin or ether as an inflation hedge. but you haven't really seen it pan out with inflation scares in the past. is that the case now? meltem demirors: it's an incredible day, breaking all-time highs, with the inflation linked narrative having been a compelling one over the past several years that

you have heard touted by many investors who look at investing through that lens, but what we are seeing is a broader recognition across the investing landscape that the world as we knew it doesn't exist anymore and capital markets change dramatically. so much dry powder on the line, looking for a place to go. it's only inevitable that it slows into cryptocurrency with publicly listed equities as well. it's it's not just the inflation story, it's a whole lot of money story with a market thing up across the board as investors look at where to allocate. matt: more and more, big wall street names are in big -- embracing it. hollywood is embracing it. i saw matt damon, who is i would think the second most trusted male actor in hollywood after

tom hanks fronting a crypto website now. how long until the mainstream is really considered bought into bitcoin? meltem: that's the question we have asked ourselves since as early as 2015 and one of the really interesting statistics that always blows my mind, even as someone who works in this industry, we are now at a point were fully 22% of american adults own bitcoin according to a recent study that was done. a good chunk of the population actually has exposure to bitcoin . if we look at the launch of the bitcoin futures etf and proliferation of bitcoin financial products, like in europe, we have a lot of new channels emerging making it easy for investors and consumers of all types to interact with cryptocurrency and i think we have reached the point where it is a part of the mainstream and

is no longer this esoteric corner of finance and it is, for all intents and purposes, an important sector asset category and if you look at where we are at today, we started with $1 trillion in market cap for all and i firmly believe that in the next few years we will be much larger than the precious metals sector. so, a lot of room to grow. matt: the one overhang that people point to is regulation. we have seen a lot of concern about the stable coin market and regulators haven't yet allowed true pure play bitcoin etf. where do you see this kind of regulation going and how does it affect the space? meltem: we think about regulation all day, every day. i always liked to joke that i have become a lawyer through the process of working in crypto.

i have never known more about the securities act and the rules we have in capital markets. look, at the end of the day the regulatory concern is there, but the companies in the space are in or mislead successfully and have a tremendous amount of capital. not just financial capital to work with the best law firms in the world, lobbyist, start new trade organizations to figure this out, but there is a tremendous amount of human, social capital in the space and i think it's becoming very politically unpopular and frankly if i were a politician i wouldn't come out against crypto . the industry is active and we are looking to max crypto with supportive candidates. matt: thank you so much for joining us, meltem demirors. this is bloomberg. ♪

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ed:ed: house speaker nancy pelosi says the united states

has a commitment to curbing global warming and in scotland today she led a delegation of congressional democrats as they zeroed in on the effects of climate change on gender inequality and that 80% of those displaced by climate change are women and children. new york city schools are seeing greater than expected demand for vaccines for children ages five to 11. long lines were reported at a dozen school vaccination sites and de blasio said that today they are sending mobile units to schools and 4500 students got shots on monday at school sites for a total of almost 25,000 in the age group vaccinated so far. the supreme court is hearing arguments today in a case about whether texas must allow a chaplain to pray audibly and touch a prisoner during execution. the case involves a man on death row who killed a convenience

store clerk in a robbery and 2004. executions are on hold as the court considers the question. in lithuania they have declared a state of emergency in the border region with belarus, responding to the standoff on the border with thousands of middle eastern migrants attempting to storm a barbed wire fence and some 4200 migrants from a rack crossed into luther gandy from belarus over the summer. 50 times the number that crossed and all of 20/20. global news 24 hours per day -- global news 24 hours a day on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. i'm ed ludlow, this is bloomberg. amanda: high, i'm amanda lange. matt: welcome to our bloomberg

and bnn bloomberg audiences everyday at this hour. here are the top stories we are following from around the world. meme stocks slipping after concerns evaluation, we will speak to joe mobley on the --joe moglia: on the outlook of the evolving investor community with concerns about inflation continuing and the future of the fed to hanging in the balance. we will speak to the chief economic advisor at green capitol about whether powell's fate is sealed and a new future for general electric. beginning a new chapter in their history, splitting into three companies. all of that and more, coming up. that's one industrial name standing out today, ge moving higher with weakness across the broad markets in record levels in the s&p snapping that long winning streak that they have been on.

at least for today. financials is a weak spot with a yield on the 10 year in part to blame. we are continuing to watch it drag its way lower with some stocks getting huge moves, paypal jumping out in the double-digit declines there, but in general as you know it has been a fairly positive earnings season, markets grinding their way higher despite a little bit of weakness today. matt: yeah, there are some great stories. paypal has the venmo that they are hooking up with amazon. everyone loved it after the bell, but didn't love it after they saw the forecast. meme stocks, amc, beating estimates, losing market share in the u.s.. it's falling today. one of my favorite stories is called naked brands. the company that makes lingerie and swimwear purchasing an electric vehicle maker. that's an interesting meme stock

movers. for more on those markets, we welcome joe moglia. to be clear, you are not a meme stock expert, but you are a trading expert in this has been an incredible phenomenon to watch throughout the pandemic. is it here to stay? joe: i think so, i think so. go back to when day traders were involved. they do well as long as markets are doing well. the late 90's could be a comparable comparison where anyone who was a day trader did very well. then 2000 through 2003, the world blew up. the vast majority of those you've got the edit crowd doing a better job of got -- of guiding them. what they did a while ago with gamestop and amc, it was an incredible trade, but i don't know how much training the day

trader has gotten. when things go well for them, how do they manage risk? if you purchase at 10 and it goes to 50 and you take nothing off the table, who helps you with that? those are the concerns i've got. the pressure on meme stocks today matt: -- matt:in fact, they are saying don't sell with joe: dimon hands. but that's a mistake, not a good thing for them to say. i think now the trading community and even the individual investor community recognizes that these are incredibly overvalued. using amc as an example, they are losing a lot of money. they are still losing money and less than everyone thought they would, but the stock is down four points, five points. amanda: of course one of the

problems with these markets, i felt it in 2007, i felt it in 99, there's a part of the market where it's musical chairs but everyone assumes they will get a chair when it stops. now the fed is providing extra chairs, no end, no alternative. there is never going to be a big asset swap if there is nowhere to go and even if the rates so-called normalize, it might not be enough to drop the capital. how do you see this ever ending or correcting or getting back to anything like fundamentals? joe: the markets it everything that they were expecting and were used too, there was no move in the market. i heard them say for the first time that we are looking at inflation no longer as transitory. it's the real thing and is above the 2% target. to me that was the beginning of

tightening from a few months ago, but earlier than expected. making a good point, it's something we should be sensitive to going forward. i'm not talking about gold, but within the equity markets, it's always an opportunity. matt: by the way, you focus a lot on the education that traders and people on wall street should be getting. are they getting it from any of these platforms? joe: when the online business first started the idea was to do what you could to do as much business as you could, but after the.com -- after the bubble burst, there was a much bigger

emphasis on doing a better job at taking care of clients. there's a tremendous emphasis on that at schwab, td ameritrade, e*trade, i'm pretty sure. matt: robinhood? joe: i don't think so. they are still young, they say it's all on their website. it's not easy for an individual investor to go through that website and understand it and if you have to go to court to have someone asked him -- explain it, i don't think a lot of people have the time for that. as time goes by, they have to do a better job with education, a priority for a lot of companies now. amanda: what about payment for order flow? joe: putting it in perspective, i'm an individual trader who wants to do a trade and we go to the market and the trader takes a piece out and before that, before that the brokerage firm comes back to decide whether or not they will give a piece of

that price improvement to the individual investor or keep apart for themselves. at schwab and td ameritrade, 95% of the trade that we wound up doing. now, when the individual investor does it, it's simple and easy. they press a button and put in a couple of things and it's done. they get that for free. behind the scenes is incredible technology. regulatory, reply, operational, things going on that costs money . if i am an individual investor getting this for free with a price improvement and i get to choose from the marketplace to get it for free, someone's got to pay for it. that's the little spread on every trade. that would be a disservice to the individual investor. matt: at some point do you see stocks going down? i love it when someone on

twitter says stocks never go down and if you have been in the market for a few years, you've done well. we were up 16%, 17 percent last year. 29% in two thousand 19. these kids just don't know what it looks like to have it drop. are we, are we near a real drop? could we see a real correction? joe: number one, there's something to be said about experience. if i'm a twentysomething all i have seen is a positive market. same as in the 90's. markets by the way, in fairness, they do go up in general over long amounts of time, but they don't just go like this, they go like this. the dips are critical. sometimes it lasts a long time. sometimes it doesn't. they are there and it's critical for the individual investor to be on top of understanding what he or she needs to do as far as

risk management. that's the play. maybe it will be when the fed starts actually tightening. at some point they will. i can't guarantee it. but it will happen. amanda: joe, always a pleasure. appreciate your time. amanda: thank you. coming up, president biden interviewing someone for the top job at the fed, signaling jay powell having a serious rival. that's next. ♪

amanda: this is "bloomberg markets." bloomberg has learned that president biden has interviewed lael brainard for the top job at the central bank, a sign that jay powell has a serious rival. with us now is the senior economist from the fed, john ryding. to the extent that you are an insider in these places, does that feel to you as though jay powell's job is at risk? john: well, governor brainard was always going to be in the running for the top job. so, we haven't had the announcement. there was an expectation that it was going to happen a month and a half or so ago. so clearly there is a reason why the president hasn't made the announcement yet.

we are just going to have to wait and see how things shake out. there are very few insiders on this one and most of them are, it's the president, it's probably the treasury secretary, yellen. and i assume we will get an announcement soon. matt: they have been really tightlipped about it and we should say, while we are giving your bona fides, you were the chief u.s. economist at their sterns, assistant coach at leicester city as well. how political are these organizations? i mean, when you were at the bank of england, did it matter if people on the fomc were republicans or democrats? did it play a role or did they leave that at the door at those institutions?

john: people do have the leanings but the fomc is a committee has been fairly impartial over time. i don't know that politics are at work here. and i wouldn't want to suggest they are, but we are having what i would consider to be a triumph of hope over reason on the whole mantra that inflation is transitory. sorry, bostick. i will send you a dollar in the mail to a swear jar. the data at this morning's producer price index, as with the nfib small business, was 53% of small businesses raised prices in october. what we need is some hard talk. it's always easy. politicians at the bank of england, where the policy wasn't independent, it was to keep interest rates low to help the economy, but that isn't always

the answer. the german side of you knows that if you let inflation get out of hand, you run into problems in the economy and it's better to head it off early. amanda: you make that great analogy, the fed wants us to reconsider the word transitory, by which you say by that measure the holy roman empire was transitory. in terms of where that leaves us , if there is a change at the fed, a brainard fed, is that a change in approach with a more hawkish kind of federal reserve? matt: first -- john: i said roman empire and the like there. i don't think there is much chance of us getting a hawkish fed out of these personnel changes. in fact, we lost two of the more hawkish participants of the fomc in the boston and dallas fed

president and they are undergoing searches right now for replacements. but at some point, inflation is going to prove to be an unacceptable problem. what the fed doesn't realize, they seem to think that somehow engineering inflation will help the economy to a degree, but the public doesn't like in -- inflation. behavioral evidence is clear on that. at some point it will be unacceptably high, the fed will have monetized the supply shop and of the fed will have to get tight. where could that happen? could be six months out, 12 months out, 18 months out. but that sows the seed of the next recession and the downturn in the equity market that you were asking your previous guest about. matt: violent as a mugger, frightening as an armed robber.

what else did reagan say? those people view it as theft. what can the fed do about inflation, especially if it is because of supply constraints? for work well for the root cause of what we are seeing today. john: let's think about that. milton friedman said that it is always a monetary phenomenon. we don't interpret that to mean that necessarily the start of inflation was the printing press. but for it to continue, to go beyond a shock and into a process, it needs monetization and we still have monetization. yes, we are starting to see a slowing in asset purchases that will continue through june of next year. but here is what i would like to see. the fed to, talking about what

they talked about in the past, chairman powell talked about the trimmed pce inflations with faster and slower rising components. that moved adversely to the transitory story in november and at the press conference did he mention it? no. talk about it, say it is of concern. acknowledge the fact that between september and october in the fomc meetings, you had 50 basis winks in rise between the market five year eight, so let's talk honestly about the data and how we might respond. of canada responded by ending their asset purchases rather than continuing to pay for them. the fed could have down to $30 billion, but they didn't want to surprise the market. there's a lot of things that can

be done to set expectations that we are going to take action? we recognize we are not just saying transitory. five years jobs number, if we continue with labor force participation, no labor supply, we will be under a 4% unemployment rate in the first quarter of next year. matt: john, thank you so much for joining us and talking to us again. it's been a while. hope to talk to you again soon. this is bloomberg. ♪

>> these businesses will be more focused with a higher, greater level of accountability. we should have sharper

allocation with strategic flexibility and frankly i think it will be good for the team as well. investor bases that are underinvested today and you put that together, it's clear that this is the best path for us to unlock and create value. matt: that was the ceo of general electric, discussing the company's historic decision to split into three, taking us to our stock of the hour. >> ge does a lot of different things. health care, aviation, at one point they owned nbc universal, but most of their profit came from health care and that's really what they were spinning off. this isn't the jack welch company anymore, not trying to get bigger and bigger, they are trying to enough their balance sheet.

half of what it was in 2015. they are really decreasing five ex-dividends as well. amanda: thanks so much. appreciate it. a quick check on another stock we are watching, tesla continues to fall. 175 billion dollars in lost market value today alone. elon musk asked on twitter if you should sell the stock. 11%, matt. for matt miller, i'm amanda lange. stay with us. ♪

moving is a handful. no kidding! fortunately, xfinity makes moving easy. easy? -easy? switch your xfinity services to your new address online in about a minute. that was easy. i know, right? and even save with special offers just for movers. really? yep! so while you handle that, you can keep your internet and all those shows you love, and save money while you're at it with special offers just for movers at xfinity.com/moving.

>> pfizer is hoping to get its covid-19 booster shot approved

for adults aged 18 and older. the drugmaker is expected to share new data with the food and drug administration today. pfizer will share new data from the more than 10 thousand person study evaluating its safety and efficacy. the u.k. government is requiring all online national health service workers to be fully vaccinated against covid-19 by april 2022. the health secretary told our limit today the move is necessary to protect patients and other staff, and staff who do not work face-to-face with patients will not receive mandatory shots. john kerry says he believes cup 26 negotiations will produce a deal on carbon trading rules, a major win after more than six years of failed efforts. he spoke with bloomberg at the climate change summit in glasgow. >> making sure we continue with fusion, pouring our efforts into