morning, claiming the grit of the american people and american capitalism. but. >> the american jobs machine is going stronger than ever. truly a strong recovery an opportunity for hard work of women and men all over the this great country. america is back to work. kriti: biden credited the american rescue plan and aid package early in his presidency. russia says it won't meet with ukraine unless there's a clear understanding of what will be discussed and what will come out of the talks. a spokesman said there is no basis yet for a meeting between president vladimir putin and ukrainian leader wilensky. president erdogan has offered to mediate between the two sides. meanwhile, vladimir putin and xi jinping have closed ranks against the u.s. and its allies on key security issues. the two met in beijing today. they declared there are no limits and no for but in zones

between russia and china. they want security guarantees from the u.s. and nato. russia has endorsed china's policy on taiwan. texas's newly fortified power grid is getting its test so far today. temperatures are still low freezing and electricity demand is soaring. last year's deep-freeze triggered sprawling blackouts that left more than 200 people dead. but there are enough to push demand to power to close to record levels in the state. global news, 24 hours a day on air and on bloomberg quicktake, powered by more than 2,700 journalists and analysts in more than 120 countries. i'm pretty good to. this is bloomberg. -- kriti gupta. this is bloomberg. ♪ >> welcome to bloomberg markets. matt: i'm matt miller. here are the top stories we're

following around the world. it's all about jobs today as the u.s. experienced a blowout report, crushing all expectations. but the same can't be said for canada. this jobs games streak came to an end. and as the leisure and hospitality sector lead the way in job gains in the u.s., we'll speak with duane allen, owner of the restaurant and bar, the breadfruit on the states of the industry as prices continue to rise and labor is still short. plus, a big gain for amazon as its urges after its earnings beef, leading to what could be one of the biggest gains in history of the u.s. stock market, one day gains for a company. all that and more coming up. jon? jon: thanks a lot. and certainly that amazon story factors into the broader market story, positive performance, whether toronto or nasdaq today, if these levels hold for the s&p 500, it will be a winning week. i know we had that meta-meltdown

the previous to that we had three of days. one of the considerations for the buying we're seeing in financials today. the new got the oil story, helping to fuel some of the energy stocks. as i mentioned with amazon, some pockets of tech finding their groove on this friday. let's come back to the job story, and a reminder that we had at least here in north america, two different stories of jobs, because we had both the canadian and the u.s. numbers. for what it's worth segment. let's look at the canadian picture, met. everyone's been talking about the surprising numbers in the u.s. here in canada, after many months of seeing good momentum, we saw a lost jobs month, unemployment rate at 6.5%. and really at the end of the day, matt, the issue is we've seen a lot of restrictions tied to omicron. and you did see that reflected

in some of those industries that are reflectively -- directly linked to being able to go about, whether shopping, eating, or going to the bar, we did see some of that reflected. matt: and you have the protests continue in ottawa, the freedom train, the yellowjackets there certainly holding things back. take a look at numbers in the u.s., we have blowout gains, 467,000 jobs for the month. and then you had a revisit of last month, total of over 700,000 for both. unemployment rate now 4%, had been 3.9%, the 4% flat is still pretty low. average hourly wages rising 0.7% mounds over month, and 5.7% year-over-year. that sounds great until you contrast it with the 7% plus inflation that we're seeing. labor participation at city 2.2%, and that's something -- 62.2%, and that's something the

fed has to be particularly proud of. we talked to, jon ferro spoke to earlier in the day marty walsh, the labor secretary. hear what he had to say. >> it was a very good report, very solid report. i think underline what it's telling us is we're in a very different position then we were in march and april of 2020. we're seeing workers and employers learning to live with the pandemic and adjust. so we are in a different place there. matt: a little bit of a victory lap for the administration. let's welcome diane swonk to get us her take on the payrolls report. diane, this was very strong. and if you don't look at what happened in canada, you would think omicron never happened. diane: well, not exactly. the report did actually show 3.6 million workers absent, a record high number due to illness. and we had 6 million workers sidelined because they couldn't

get to work because of the pandemic, because of pandemic related closures. we did have the imprint of the pandemic on it. what was really interesting was the seasonal adjustment in january. we saw basically a lot of firms in leisure and hospitality, retail not do as many seasonal layoffs as they usually do in the month of january. and there's two things going on. what is they already faced acute labor shortages going into the holiday season, and they kept on many of those higher -- holiday hires to cover for workers who were out sick. that helped to the overall numbers. what is striking about the job gains is also we saw the gain in wages. yes, it was startling. it was less than overall inflation. i think inflation is going to come in even hotter next week. when we look at over two years and the average work weekly gains in wages, that is up quite significantly and much more rapidly than inflation. and the reason i look over two years is because we had a lot of

weird distortions to the pandemic, and it's hard to sort through those. but if you look over the to your period, you can see were some of that wage inflation can be starting to swarm in the u.s. economy, and that's what's going to worry the federal reserve. jon: it's 20 be very informative to see what that inflation data tells us as we move into next week. as i'm listening to you and think about how businesses have been navigating through the labor crunch and what's happening with wages, maybe spend more money on technology. it sounds like we're seeing more movement by employers. are the trends happening now that you think are going to be with us for a period of time here? diane: well, we certainly seen the rotation into online, which is not going to go away anytime soon, and the shoring up of online, the ability to work online. also, the persistence of the remote work. there are going to be a lot of

hybrid work, delays, returning to offices in the month of january. mine was one of them. all of those things are important to keep in mind. in terms of trends of employment, you really want to see how far the leisure and hospitality sector is still lacking. there's a long way to run to catch up to catch up to what it lost during the pandemic. once we emerge into an endemic, will it morph into an endemic, see a leader and hospital -- hospitality sector be as robust as it once was? on the flipside of that, you've seen this incredible increase in employment and professional services. that's a sector i happen to work in. you've also seen a term it is increase in credit remediation, mortgage bankers, a lot of that interest rate sensitive could be interesting to watch how that responds to interest rates over the course of the next year. some might argue there's a

hiring bubble in some of those sectors, and that's not something we've ever discussed before, the concept of a hiring bubble. but i think it's something we need to start thinking about, where we're going to see interest rate sectors a slowdown in demand, and this is something fed chairman powell also talked about. we've got so many job openings, we could see a slowdown in demand and still not have enough workers looking for jobs. and so that's why the fed feels comfortable raising rates. i think we really need to watch carefully and see how persistent and how resilient the job market is through those rate hikes. i think you're going to see a lot of rate hikes through june. matt: you expect inflation to come in hotter in the next print. does that then even out towards the end of the year? are we looking at a full year figure of 5%, or more like 3%? diane: we're going to see a slowdown in inflation in the second half of the year. the comparables make it harder.

the issue for the fed is will inflation cool enough not to burn? and of course, consumers, one thing they look at, they want to see volume prices. they don't want to see prices at the level they're at and the momentum low. we'll see inflation, close to a burn that is still persistent at the end of the year, even after the fed does five rate hikes. that's something that's very worrisome for the fed. in the real problem is going to be the stickiness of inflation and the acceleration we see in the shelter sector. we're going to have some services inflation, like hotel rooms, airfares fall down in the month of january, even as rent are going up, owners equivalent rent is going up, but that shelter because component is a third of the cpi, more than a third of the cpi, and that's something that's going to continue to accelerate at a pace we've not seen in decades in the months to come and read through the end of the year. so even as we see some of the

pressures of inflation slowdown, there's going to be a very important component for the federal reserve in court inflation, most notably in shelter cost. you're going to force the fed's hand more aggressively as we get into 2022. jon: very helpful roadmap, wants to consider there. thanks for your time, diane swonk joining us with the latest on the economic picture and those jobs numbers. coming up, a company in washington state has been hiring a lot of people, amazon at its prime, the e-commerce giant facing a huge market milestone, as well. it's our stock of the hour. we'll have that next. this is bloomberg. ♪

matt: this is bloomberg markets. i'm matt miller. time now are stocks of the hour. amazon is surging, or was really surging a lot earlier after reporting strong fourth-quarter -- looks like it's up at the top of the session right now. bloomberg's ed ludlow out of san francisco has your breakdown. huge again here for amazon even after the losses we had the last couple days. ed: headed for our biggest day since april of 2012. i've been saying all day amazon has kind of proved it's bigger than some of its parts, even some slippage or stop this -- softness, no problem, because the advertising business, the

line item comes to the rescue. cloud continues to be a driver of. profit and then with the inflation outlook, they come in with a price hike on prime, and basically they spend most of the course saying don't worry about the price hike. we don't think anyone is going to cancel the subscription because the value is not just the speed in shipping, but also the content pipeline on prime video. "lord of the rings" is on its way, stoked about that, as i told you. they've also got live sports. they've got a lot of momentum. jon: i think of the many reasons that andy jaffe, and he got the job of -- looking at a year where they generated more than $60 billion in revenue. they first broke out those numbers, 2013, $3 billion, just astonishing cloud growth. ed: and maybe a little harsh on the business because that was a quarter where supply chain disruption, higher input costs,

labor shortage, they preempted this, saying they spent through the nose. that's why the cloud business became so important because the variability that we'll probably see in that e-commerce business because we're going into a different phase of the pandemic, it becomes less of a worry for investors because cloud is going steady and it's the majority contributor to net income. incomes are going to boost from again in the caribbean and a lot of focus has been on that. but savvy investment, right? jon: no doubt, no doubt. ed, thanks for breaking it down for us. ed ludlow joining us. we're going to take a quick break. coming up, while the leisure and hospitality sector did see job gains last month, many restaurant owners are still struggling to get business back to pre-pandemic levels. we're going to speak to the founder of the bread group to join us -- will join us to talk

about how his group is faring. join us. this is bloomberg. ♪

jon: this is bloomberg markets. i'm john altman along with matt miller. i keep thinking about what diane swonk was talking about earlier in the program about the long road potentially ahead for some of the hardest parts -- hardest hit parts of the economy. we've been talking about the leisure and hospitality sector in the face of that new job stated today. they did lead the way with more than 150,000 jobs added, a fifth of those coming from food services and accommodation. i guess the question is, with a lot of heavy lifting that still has to come, what's that process going to be like? matt: renita young from bloomberg radio was talking to shaq recently about his decision to close some of his restaurant businesses because he just couldn't get enough people to work for him. and he's kind of a big deal.

so i think it's very difficult out there. obviously, people will say just pay them more. but that's not all of it, right? you don't have the flux ability for restaurant workers that you have in other industries -- flexibility for restaurant workers that you have in other industries. they can't work from home, for example. it's a difficult nut to crack. jon: let's talk to duane allen joining us, founder of the bread crude and brent barr. he's also a member of the independent restaurant coalition. and we appreciate your time today, duane. we can talk a lot about cocktails, certainly an area of expertise for you. but for the industry which is really trying to recover, what would you say about where we are in this recovery right now? duane: well, thanks for having me. we relish every opportunity to really talk about what the reality is for folks like myself that's in the restaurant business. listen, restaurants were essentially the tip of this be a

for the destruction that this pandemic has brought on economically. we're bearing the heaviest of the follow-up for that and we're saying to the federal government we need the kind of support that was offered to the banking industry and the airline industry, all these large industries that have massive lobbying efforts that are in washington. the majority of restaurants are ran by independent operators like myself, so we don't have that kind of influence on capitol hill. but that really is besides the point. russians are in a very difficult to -- restaurants are in a very difficult position. some of us might look like things are normal, but it really isn't. the labor crisis, difficulty in getting supplies. when you can get supplies, costs

are through the roof. so restaurants are really in a bad space and we need the federal government to step up and replenish the restaurant relief act to create a level playing field. matt: and it's important to point out it's not just labor. food cost are at decade highs right now. and those are only some of the costs that you deal with. the irc has been instrumental in getting the help that you have gotten. what is it that you are pushing for now? dwayne: well, a year or so ago, the federal government crated the restaurant relief act, and it was a wonderful attempt at providing relief for restaurants. the restaurant business has borne the brunt of the impact of the pandemic. but it wasn't enough. congress allocated a measly $28 billion when the need was summer around $70 billion. and what that's done is created an uneven playing field where we have a case where some

restaurants who did receive funding are better able to weather the storm of increased labor costs, increased prices for supplies and goods and services that restaurant depends on. the restaurants like mine who didn't get any of that funding, essentially we're in the losers circle. it was a good attempt, but now we need congress to do its job and putting exactly what we know is needed to support restaurants such as my own. jon: we're almost out of time, but i do want to highlight that through the pandemic, even you yourself, pop-ups, take-out catering, you have been very creative. what would you say about your industry and the things that you have been trying to do before, for example, asking for more assistance? there's been a lot taking place to keep things of -- of flow. dwayne: that's a great point. restaurants have always been resilient. we operate on the thinnest of margins compared to all other industries. so with the pandemic, it's

really forced us to get even more creative. like you mentioned, we're doing takeouts and week're doing every thing possible. for our restaurant, we went so far as to sell arpa spices and sold recipes for people to cook at home. but all that we are doing, we can't do this on our own. we need the federal government to step up and support us in the way that we long believed in the idea that we're all in this together. we heard the president say it. we elected officials say we're in this together, but we need them to do this by supporting the restaurant relief fund. it's the only way we're going to create a level playing field. matt: we only have 10 seconds left. i don't want to get away from the serious issues in your facing, but what is the best rum to use in a painkiller? dwayne: any rum that's in your repertoire, my friend.

the rum that's good is the best rum. matt: there you go. thank you for humoring one matt miller on a friday. he'll take that to the store tonight to fix those ailments. appreciate your time, in all seriousness, of the breadfruit and rum bar. and for matt miller, i'm jon erlichman and that's -- and this is bloomberg. ♪

>> the most crucial moments in the trading day. this is bloomberg markets: the close with caroline hyde,

romaine bostick and taylor riggs. >> 2:00 p.m. in new york, 7:00 p.m. in london and we are live. i'm caroline hyde. >> i'm romaine bostick. >> i'm taylor riggs. >> jaw-dropping jobs report, coming in strong despite expectations. rates lifting up in march all but assured. reasons for the rally. taylor is tracking. we have you covered. we cut up with the director of the national economic council on blowout jobs numbers and how he feels about wage inflation but it is an unequal recovery. black unemployment double that of white. we break down the jobs data.