♪ caroline: i i'm caroline hyde -- i am caroline hyde.aylor: today is ladies day on "what'd you miss?" caroline: the s&p 500, higher. the russell 2000, flett ahead of rebalancing. crypto -- taylor: the question is, what you miss? caroline: it is a rebalancing act. we are keeping an ion the levels. the ftse russell, it is rebalancing. there's a lot of attention on our main favorites, gamestop, imc. waiting to see when they enter the big leagues. they've also been putting a spotlight on trading platforms and also the importance of financial industry. before we get to that conversation, let's start with the rebalancing. we are awaiting the headlines. taylor: we are. we thought we would get them. we are itching on the edge of our seat. is the focus not on maybe the fundamentals, as more of these stocks have more of a waiting and these indices. the volatility that comes up with that. well, the fundamentals. take a look at this. this is amc. theaters are not totally full again, but the equity value, and how does it help the bondholders as well?

caroline hyde has more. just made my flight from bloomberg's london office from new york the other week, and even with the badness of travel with two small kids in the tests and quarantine, i can't tell you how nice it was to be back in the air. . with virus numbers steadily decreasing, international travel is making a comeback. >> there is a lot of pent-up demand for travel. we believe with a lot of conviction that if some of the barriers to traveling are removed, like these quarantine procedures, then we think demand can come back very quickly. caroline: according to a survey of 50,000 people globally, 50% would travel as long as more people get vaccinated. the indonesia government is discussing plans to offer vaccines as part of holiday packages to attract travel. the u.s. state department is using advisories for dozens of nations, including many in europe. >> i think it is important for vaccine passports, because we can open up economies and travel safely. caroline: fears over the pandemic are not comple

i'm caroline hyde.e of the stories we are reading about is how u.s. banks are getting back to the office. one lender is giving up its pre-pandemic nods. the bank behind credit cards offered by amazon and paypal has begun to test its reopening plans and decided that no one is coming back five days a week. joining is now -- this is a tech forward bank. perhaps they are going to take things differently. are you surprised by the sudden ways in which they are saying, for the greater good of everyone, no one has to come in five days a week? >> symphony is bringing back people to his office and has said they cannot come back four, five days a week. this is the company behind amazon and paypal credit cards and it says it is listening to employees who are looking for flexible working and if you look at the measures they are introducing, you can see how big of an effect that is making as -- as the way americans work has changed forever. this is some of the details. it is going to introduce three types of office,

caroline: from bloomberg's world headquarters in new york, i am caroline hyde. joe: i am joe weisenthal. caroline: new record highs almost on the s&p 500. the dollar goes weaker. gamestop pushes to new heights come up in pecrypto, what a wil. stocks climbing after fed chair jay powell raised rates once again. saying that inflation pressures are transitory. the dollar was on the downside. powell continuing to say that currency actually coming down over the past few days, rallying. we will be digging into currencies today, traditional and new. bitcoin taking investors on this wild ride, dropping below 30,000, before making a full comeback back, turning positive. before we go to that volatility, we start with powell. he still thinks that king dollar will be a reserve currency of choice. joe: still not going anywhere for fed chair jay powell. he testified before congress earlier today. take a listen to what he had to say. >> we will not raise interest rates preemptively because we think employment is too high, because we fear the possible onset of inflation. instead,

caroline: from bloomberg's world headquarters in new york, i'm caroline hyde. joe: i'm joe weisenthal. caroline: s&p 500 at a record high. the russell 2000 gets a boost as we see this infrastructure deal seven to between republicans and democrats. the dollar is down 2/10 of a percent. the pound also lower. the banks easily clearing the u.s. stress test. joe: let's bring in wall street -- bloomberg wall street correspondent sonali basak. it is all good now. the crisis is over. sonali: it is a historic moment coming out of such a big pandemic. now that they are all clear, what this means is you have morgan stanley who a week or so ago says they have an embarrassment of riches. they are ready to give capital back to shareholders. you have jp morgan saying they will continue to pay a healthy steady dividend as they continue to invest in their business. we are waiting for what those numbers will look like. they will announce sometime around the 28th when they are allowed to do so. jp morgan, they are expected to return the most in dividends. caroline: is it all about

[speaking foreign language] ♪ caroline: i'm caroline hyde. joe: i am joe weisenthal. roline: volumes down. the s&p 500 managing to push forward to the close. joe: the question is? what do you miss? caroline: economic data. the stocks in a long mode. raphael bostic both saying it may happen sooner rather than later -- tapering may happen sooner rather than later. we're going to be digging into price expectations but investors assesing the recovery and the fed. that is dominant. how hot are the markets running? joe: we're looking at the nasdaq over the last two years. pretty extraordinary. how many times have the fed made policy mistakes? the fed is caught in a box of its own making. the fed is in a corner. the line is going up to the right. there you see it with the nasdaq, new record highs. let's bring in bloomberg news reporter amy for more. the lines keep going up. amy: it feels like it. volumes like caroline noted are down. if you look at the s&p 500, volume was 20% lower across the 20 day average. you saw a hick up the s&p 500 when you had bostic make hawkish noise

caroline: from bloomberg's world headquarters in new york, i am caroline hyde. joe: i am joe weisenthal. caroline: coming off of verizon terms of the nasdaq, the underperformer. money moving out of copper and into oil. all eyes on that yield head of the fed. it was not only a slightly down day for stocks. crypto erasing gains. the fed is set to make a key rate decision tomorrow in decision builds around what the global central bank and global central banks will do about cryptocurrency. we will speak to -- investment interest and other assets. full talk to another executive raising new money for a decentralized exchange. before we start going deep into crypto, let's go deep into what the fed is going to do tomorrow. joe: currency run by a central bank. we do have that fed decision coming up tomorrow. no one expects any change in the policy rate, any taper talk or anything, but something could happen with when they project lift off. as you can see, much like the other central banks, pretty much at rock bottom rates. for more, let's welcome bloomberg news economics

caroline: from bloomberg world headquarters in new york, i am caroline hyde. romaine: let's look at where the markets ended on the day. the meme stocks rallied, the small caps outperformed. the s&p 500 finishes just shy have a record high. caroline: meme stocks back at it again. this time, some new names. clover health, wendy's, the longtime home of frosty's, burgers. joe: the meme stocks are multiplying. i thought i'll had to know about amc and blackberry. clover, that is a thing? wendy's come up a lot, too. [laughter] back to rotation. let's bring in abigail doolittle. if it were not for the meme stocks, it would have been a boring day but they are keeping us entertained. abigail: it is almost like a movable feast, from gamestop to amc, wendy's, clover. mania after mania, speculation going from stock to stock. at the end of the day, i think it has to do with all of the liquidity in the system, too many dollars chasing assets. romaine: do we have any real sense of who is behind this? we always say, it is the folks sitting at home on the retail trade. but there

caroline: from bloomberg world headquarters in new york, i'm caroline hyde. romaine: let's take a look at where the market stand. embracing big tech, pushing the nasdaq and s&p to a record high. joe: the question is "what'd you miss?" caroline: did the industry build up a stockpile of cash and it may be the largest ever. sonali basak is here to walk us through. what are we hoping to see from the bank? >> we were expecting one by one, bank by bank. if you compare them to previous years, you compare them to wall street expectations. that banner number, the biggest was from j.p. morgan at more than $12 billion. for the lower end of the bar, it's goldman sachs, a smaller bank than the rest. now will they be or go below that is what we will be watching. romaine: we are getting region financial saying it does plan to consider a dividend read -- a dividend increase in morgan stanley saying a 100% boost. expected? sonali: repurchase authorization , the expectation was $4 billion, that goes to show you how much more money they had on hand. dividend at $.70, they double

caroline: from bloomberg's world headquarters in new york, i am caroline hyde. joe: i am joe weisenthal. romaine bostick is off today. caroline: the dollar goes lower. that helps commodities get a bounce. quite the comeback for equities. the s&p 500 snapping that losing streak, posting the best day in five weeks. industrial, equity stocks driving those gains despite of course ongoing hawkish rhetoric coming from the fed. in fact, investors kind of getting comfortable with it, may be more ok with projected type. crypto not joining in on the party. bitcoin falling to its lowest level since january. this has to do with china. we will be talking about the u-turn in the treasury curve. joe: the treasury curve, that is where the real action is. last week, we saw the real flattening, a little bit of uptake at the end. a little bit of a reversal. we are still way flatter than we have been for most of the year. caroline: this comes as we get a more hawkish fed. we'll get more of a read on that tomorrow, giving evidence in front of lawmakers, saying inflation has increased

caroline: from bloomberg's will headquarters in new york by an caroline hyde. joe: i am joe weisenthal. romaine bostick is out today. caroline: a new record high on the s and p. we even saw money move into amc. yields push up five basis points. joe: the question is, "what'd you miss? " with the biden-putin meeting some might forget. we are all still fretting about inflation, front and center. a survey out today from the new york fed, it rose to an eight year high. restaurants like to bully have had to raise prices on their menu. price pressure could be lessening. a dip in prices from corn to cotton to lumber. it seems as though parts of the commodity spectrum are coming off highs. joe: narrative buster here. not every commodity input good going up right now. one thing that is go up today, stocks. for most of the day, the s&p 500 index was in the red. look at that, heroic gains. i don't know what happened. it counts. they still count it. for more, let's welcome bloomberg news cross-asset reporter katie greifeld. what saved the day? more buyers than sellers? katie

♪ caroline: from bloomberg's world headquarters in new york, i'm caroline hyde. e: i'm joe weisenthal. caroline: let's take a look at your market moves. we are pretty flat on the s&p 500, but a new record high. the russell 2000, the amc stock back in play. joe: the question is, "what'd you miss?" caroline: amc was up 15% on the day, wendy's, and gamestop. this sets the play, of course, for the next week as we hear from the u.s. federal reserve. core cpi is high, the highest level since 1992, prices surging. lumber, food -- baseball cards. but joe, yields, we did not talk about it much this week. joe: they were the story of the week in some sense, because of all of these things are surging in price and headline inflation metrics are going up, even baseball cards, you think the fed might raise rates, but it hasn't happened. a big week for a decline in the 10 year yield, we basically drop it a year, which is pretty wild. not exactly what the smart money might have guessed. to explain more on all of this, let's bring in bloomberg cross asset reporter katie wright -- k

♪ caroline: from bloomberg's world headquarters in new york, i'm caroline hyde. e: i'm joe weisenthal. romaine: and i'm romaine bostick. the s&p 500 closing out a record high. joe: the question is, "what'd you miss?" caroline: the industry is going to cost you a little bit more each and every day. prices paid by u.s. consumers rose more in the past consecutive months in more than a decade. if you want to go to crypto, perhaps you are using it as some sort of currency, but you are also talking about if you are a bank looking to get into crypto, you will have to set aside quite a lot of money to do so. joe, let's start with the cpi data. joe: another hot on the headline measure, at least. cpi trend up. that's something we haven't seen in a while. this is the second month in a row. highest since 1992, so there you go. a big jump, and we know this is a debate by now, how much is transitory, how much is the base effect, how much is skewed by reopening categories, but the headline is pretty hot. romaine: absolutely. let's get some more insight here. bloomberg news, mone

♪ caroline: from bloomberg world headquarters in new york, i'm caroline hyde. e: i'm joe weisenthal. romaine: i'm romaine bostick. say hello to q3. joe: the question is, "what'd you miss?" caroline: the halfway point of the year and progress in the recovery, especially here in the u.s., vaccine rates higher across most parts of the country. recovery is not complete across the world. places where i come from, the u.k., struggling with the delta variant today. how are investors approaching the economic climate? let's dig into the numbers. start with the market story. joe: right, stocks up. another good quarter, goodyear, halfway through the year. pretty impressive overall. little volatility lately, stocks mostly going up rate what can you say? that is the story. let's bring in katie cry felt -- katie greifeld. katie: i want to look at the equal weight s&p 500 index versus the fraud s&p 500 index. this tells the story of the first half. we had cyclical's and small caps dominate the bulk of the first half of the year. and in the past few weeks, since the fed, you ha

caroline: from bloomberg world headquarters in new york, i am caroline hyde. joe: i am joe weisenthal. romaine: rounding out the best anchor trio in television, i am romaine bostick. the s&p down, the russell 2000 outperformed. joe: the question is, "what'd you miss?" caroline: on the surface, a pretty quiet day in the market. you might have missed two moves. lumber prices sliding again. the historic rally continuing to backtrack. sawmills appear to be catching up with intense homebuilder demand. you may have also missed asset stumbling in peru as results in sunday's election showed a leftist candidate with an edge. we are going to start with the headline. let's take it back to the meme stocks. joe: extraordinary day for biogen, having got that historic therapy approved. the 8% move. pretty extraordinary. it had been up i think around 50% early in the day. amc, 15%, whatever, kind of standard move. [laughter] for more, let's bring in bloomberg cross-asset reporter katie greifeld. biogen and amc but overall one of the quieter days in a while. katie: not a lot ha

♪ caroline: i'm caroline hyde. romaine: i'm romaine bostick. t's get you caught up on where financial markets stand. another record high on the s&p and nasdaq. >> the question is, "what'd you miss?" caroline: the economy is certainly not boring, recovering from the pandemic. bottlenecks remain in focus. there are still a long way to go. it's not just the white house. you will hear from new jersey governor, phil murphy, in an exclusive interview in a few moments, plus we discussed the roads and bridges. gridlock remains the world's biggest block. joe: we talk all the time about inflation and lumber and shipping and all that. but if you are as people how they are feeling about the economy, it continues to improve, coming in at 127.30, much better than expected. also a big jump from last month. the bottom line is in total, all these things, great employment possibilities, the big picture is an ongoing public assessment of the economy. romaine: i guess it makes sense when you look at the data, a lot of folks are starting to see some of the benefits

♪ caroline: from bloomberg world headquarters in new york, i'm caroline hyde. e: i'm joe weisenthal. romaine: i'm romaine bostick. cicadas got in the way. s&p 500 down. joe: but the question is, what you miss? caroline: darn those cicadas. shakeup of gamestop. the company announcing two amazon veterans. gamestop is the old guard, the poster child for retail trading. meme stocks can waive seen an explosion during the pandemic. you will be talking about meme stocks and crypto. will we still be trading can will be still wanting to be go into retail stocks, will we be wanting to travel, dine out, joe? joe: the original meme stock, now has a new ceo for the announcing potential share sale. the old-fashioned meme stock. for more on what is going on, let's bring in billy lifshitz float -- bailey lifshitz. i want to know what they are going to do. new executive committee so forth. when are we going to find out what they are going to do to be on more than just stripmall game store? bailey: i have no idea. ryan cohen at the annual meeting was very vague on what you're goi

caroline hyde is off this week. s&p 500 closing up a 10th of 1%. joel: what did you miss? >> it is all about the meme stocks frenzy and they don't die, they just multiply. amc is now the king of the block. almost doubling on the day. now up almost 2900% year to date. a money-losing movie theater chain starting to welcome back customers and now has a market cap of more than $31 billion. joe, there will be a lot of talk about fundamentals and whether the stock price is justified. at the end of the day, there is a large cadre of investors that have shown they can move the markets at their whim. joel: before we get to all of that meme mania, a bit of news from another entity that sometimes moves the market, the federal reserve saying it will line down some of those pandemic-era entities. it will be gradual and orderly, this wind down process. i want to bring in bloomberg's economic and policy correspondent, mike mckee. pity extraordinary vehicles that were an established a bit over a year ago top backstopped the credit markets. at this point, is this the kind of wind down, thi

♪ >> from bloomberg world headquarters in new york, i am caroline hyde. joe: i am joe weisenthal. roline: more hawkish tones in the fed, that means that stocks drop and the yield that pushes higher? joe: the question is "what'd you miss?" caroline: we are doing a lot of talking about, talking about, talking about. 13 of 18 fed officials see a rate hike in 2023, and beginning discussions of getting back into the bond buying. it was a hawkish surprise, you see the market reaction and we did into that spike in yields and we are going to dig into why and we will also be focusing on why jay powell is more quick to say the pace of improvement in the job market has been uneven, and out how to build a more inclusive labor force. joe: fed keeping interest rates at zero, and talking about talking about tapering, but take a listen to some of the highlights. fed chair powell: maintaining asset purchases. the housing sector is strong and business investment is increasing at a solid pace. it can be large and rapid, and bottlenecks, hiring difficulties and other constraints can raise the possibil

shery: caroline hyde. let's get you a quick check of the latest business flash headlines.unged after the company announced a stock sale of as many as 5 million shares. it also disclosed that they are investigating recent trading activity. that news overshadowing first quarter revenue. it is tapping amazon executives to become ceo and cfo as it pivots from brick and mortar into e-commerce. it has postponed its anticipated deals for the fourth quarter that worked on a financial audit. the food delivery giant is the latest company to be affected by intensifying scrutiny from u.s. regulators on deals involving rational purpose acquisition companies. it is said to be one of the largest ever mergers with a blank check company and that has been expected to take place in the third quarter. brokers are planning to offer crypto trading. he says he expects the offer to be ready in the coming months. it joins a growing list of online service providers offering buying and selling of crypto's including robinhood, venmo, paypal, and another. the announcement comes on the same day that el

romaine bostick, caroline hyde, and taylor riggs will be doing that.will see if we can extend the record highs we will see. what is interesting is the defensiveness we continue to get with the nasdaq. that through 2020 has been the defensive sector that leads the way. at least for the day, the dow looks like it is making a comeback. we love doing the dow because it is price with it instead of market cap waited. lisa: jon ferro loves the dow. he tries to put that is much as possible. tom keene tries to hide the dow. we are looking at the nasdaq up about 20. the s&p up a little. no trauma. it has been up in the green all morning. the 10 year yield coming down a little bit more after the disappointing spending data. still core pce coming in at an annualized 3.4% rate. well above the 2% yield we are seeing -- the 2% rate the federal reserve is looking for. coming up will be speaking with libby cantrill, pimco head of public policy. that is at noon. taylor: space. i want to go to space, lisa. lisa: this is bloomberg. ♪ (announcer) do you want to reduce stre

anna: that was caroline hyde on the global return to international travel and personal reflections oning with the travel theme, airline ceo's are warning the u.k. is isolating itself. easyjet's ceo and iag's ceo urged the british government to restart the international travel as soon as possible. >> most of inner european travel and most travel from the u.k. to europe should be able to recover and start because it is safe to do so. i am very concerned about the fact that the u.k. is now isolating itself and cutting itself out from the rest of the globe. >> vaccinated people or people with tests that can demonstrate they do not have the virus or they have passed covid, they can travel. i hope this is going to help intra-european traffic. the north atlantic is one of them. i think the meeting they are going to have today is going to be important. it is only a first step, but we still have an opportunity to save the summer. anna: louise gallego. louise dudley this --. we hear from -- louise dudley is still with us. how do you approach the travel sector? guest: as you say, things have bee