negative about the prospect of future inflation. >> the problem is when you support markets, you are not letting markets do their work. the question is when do you allow that to act. >> the economy antivirus have to coexist. we can't choose one or the other. >> this is "bloomberg tom keenece" with jonathan ferro, and lisa abramowicz. jonathan: for our audience worldwide, good morning. we are live on bloomberg tv and radio. with tom keene, i'm jonathan ferro, alongside lisa abramowicz. vix 10 big figures in the led by thatak, shock fed announcement. down we go to 34 and even a 33

handle on the vix. towas really extraordinary just sit there and observe the turn in the markets yesterday. it continues this morning. surprise, in an election year, we are thinking about infrastructure. a $1 trillion infrastructure on deck, according to reporting in washington, d.c. this shouldn't shock anyone. tom: not at all. as i said earlier, everybody tunes into you. they don't tune into me earlier. i get that. but to the people out there, it is a bridge to nowhere in kentucky, a bridge to nowhere in san francisco for speaker pelosi. i guess the president can put a bridge to nowhere in florida. it is all about politics. you just say to yourself, why can't this happen? why can't this get done? i don't have a straight answer. jonathan: i don't have a straight answer either. they are not here for me, tom.

they are here for lisa. let's talk about the data. retail sales on deck. a series of upside surprises in the united states we've had in the economic data for much of the last month. lisa: you have to wonder, an upside surprise from something so dismal that it defied any books. history rebound comes after the 16% plunge in april, and still we are seeing expectation for a 40% sales. in retail the, at 9:15 we get manufacturing data. retail sales has not necessarily picked up to the same degree --ufacturing has would manufacturing has. then fed chair jay powell testifies before the senate

banking committee. i am interested in how much credit risk the federal reserve willing to take, how they are thinking about the main street lending facility that got started yesterday, in terms of how they are going to outsource some of the nitty-gritty of managing a portfolio of direct loans to small and medium-size companies. this is uncharted territory for the federal reserve. jonathan: and the individual bond buying as well. things yesterday, with an equity market down, and in the process of reversing, and then the federal reserve steps in and boosts it higher, i think it was the timing that the federal reserve might take a little bit of criticism for in yesterday's session. tom: i am of the triple leverage cash fund, and i studied a number of weeks ago, should i step into those three year 0.4% yield.with a

can you imagine that the fed needs to buy those amazon three your notes? that is extraordinary. jonathan: i think it is fair to say the fed has probably moved far away from market functioning and towards something much bigger for this market. that's start the conversation this morning with mike pyle of blackrock, the chief investment strategist. live coverage right here on bloomberg tv and radio. let's begin with the bond buying program from the federal reserve. in many ways, they have done exactly what they said they would do several months ago. i think the focus for many people in the bond market, several months ago, we thought if you were a bond issuer, you would have to self certified. some people thought maybe no one would come forward. the federal reserve has managed to circumvent that. is that why this is having a little more bite in a way that people didn't think it would? mike: i think that is exactly right. dropping the self certification

requirement, just announcing the backups moving forward with individual bond buying, all of that suggests that much more of the capacity the fed has talked about using up to now is going to get put to work rather soon, and that has been an incremental positive for markets. buy corporate bonds, did you end blackrock just assumed they hold them until maturity? mike: our expectation right now is that most of the assets that are being purchased and put on the balance sheet will be held there until they run off at the point of maturity. that is true certainly of corporate bonds, but also even more so with respect to the treasuries they are buying, where there would likely be repurchasing going on beyond that. let's talk about how you trade this. perhaps you can't front the fed. re-create trying to

this index that the fed has created with the express purpose of trying to get ahead of it? is that in your playbook right now? mike: i would say our playbook in general is around being up the capital structure and being up in quality. those are the things we think have been very good risk-adjusted positions over the entirety of the coronavirus shock. that doesn't have anything to do with the strategy you described, but it does have to do with putting yourself in a position to benefit from these very strong policy stops we have seen from policymakers in a highly uncertain environment. jonathan: i am just getting a load of messages on the bloomberg terminal about the subject. we've all had the messages over the last 24 hours. revolve around a sense -- many of them revolve

around a central question. what is the point? was there a real need for the fed to follow through? importantink it is for the credibility of policymakers to follow through on the commitments they've made. , talkingad up to this about things like the main street lending facility, i think it is also an important thing for them to articulate. there's been a lot of discussion about whether the fed is going to be able to reach some of these harder to access parts of the business community of the main street economy, and i think seeing their success there, as well as in the corporate bond space, is going to be very important in gauging the follow-through and effectiveness of their policy interventions. tom: i want to follow up on jobs questions. be andoesn't seem to emergency. anne richards at fidelity made

clear this is the path from liquidity to solvency challenges. is that what this is really about, the dreaded fear of solvency issues? why: i would say that is continuing to see a fiscal policy impulse as well as a monetary policy impulse is going to be so important over the next handful of months. it is clear that the fed leaning hard into the liquidity challenges in the economy at this moment. what we have seen in the data is a strong fiscal policy response, whether it is through small through lending, unemployment insurance, through direct payments. seeing that is going to be an important part of solvency, as well as liquidity. tom: right. pick it up here and pretend you are doing the real yield. the artificiality of this is shocking. these bonds come off, and is

this just like a high-yield junk-bond bailout? jonathan: we've got to live with it now. of course we have a distortion now. lisa, we talked about this so many times. we have a price-sensitive buyer in a market buying in size that will cause distortions, but we have to live with it now. we can complain on programs like this forever about how divorced this market is from economic fundamentals. we can spend the next 10 years doing it. you can get the macro call right, the economy is going to be weak. we've just got to accept it, work out with the consequences are and what it means for markets. lisa: and to me, one of the big questions is how much is the fed going to be willing to backstop insolvencies. i think you are certain to see corporate defaults rise to the highest levels so far this quarter on record, if you look globally, which indicates

losses. how do you trade around those fundamentals when you have the central bank completely stifling a lot of the price discovery could bore used to from all of the textbooks? jonathan: is that the pain? , butu get a weaker economy the pain trade is you get the market call wrong? mike: we have seen dynamics that do suggest they are trading with some importance for fundamentals. during the peak optimism of the last couple of weeks before last thursday's selloff, we saw the really strong value encyclical rally. then the rally out of it on friday and monday, we saw the our performance from what we have seen during most of the coronavirus crisis, the up in quality, up in the u.s. rally. we think that, looking ahead,

that is going to be the better risk-adjusted play for investors , to stay up in quality, stay up the capital structure. that is going to be the sensible place to be in light of the possibilities that lie ahead for policy over the next couple of quarters. jonathan: mike pyle, always good to catch up with you. mike pyle of blackrock, the global chief investment strategist. in, i don't agree with you -- i don't disagree with you on any of this. but quite clearly, they are going further. they are worried about their credibility. they want to follow-up on what they promised to do. as a market for it is bent, you just have to work out what that means for financial markets. tom: ok. to me, it is an easy path, but you've got to look at the swiss national bank and the bank of under and all of a sudden pressure, under crisis.

and all, the fed is starting to buy apple shares at a $400 price target. if chair powell gets out front, he could probably nail that citigroup price target. jonathan: we joke. 10 years ago if you said the fed was buying corporate debt in the way the federal reserve is now, buying equity etf's -- tom: 10 months ago. jonathan: yeah, and here we are. in the next downturn, that is the other option left on the table. a lot of questions for chairman powell in front of the senate come alive on bloomberg tv and radio, just a couple of hours away. from new york this morning, good morning. this is bloomberg. ritika: with the first word news, i'm ritika gupta. the trumpet ministration is preparing its latest proposal to get the economy going -- the trump administration is preparing its latest proposal to get the economy going. most of the money would be set

aside for projects like roads and bridges. on 5gld also spend networks and rural broadband. fed chair jerome powell specter to give another downbeat view of the u.s. economy today. he begins today's of hearings on capitol hill with an appearance before the senate banking committee at 10:00 a.m. new york time. asked week, fed policymakers held interest rates near zero and signaled they would probably stay there through 2022. it is one of the largest provocations north korea has made in years. kim jong-un's regime has blown up a liaison office on its side of the border. in recent weeks, north korea has issued an escalating series of threats against the south. it is unhappy that south korea backs the u.s. led sanctions campaign. the u.k. and the european union believe they are a step closer to a brexit deal. they believe a video call has

injected momentum into the deadlocked negotiations. global news 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. i'm ritika gupta. this is bloomberg. ♪

♪ >> i think we are better equipped to handle additional spikes, which tells me the restart of economic activity i think is going to continue. jonathan: the constructive view from jim polson.

from new york city this morning, good morning to you all. alongside tom keene, i'm jonathan ferro, together with lisa abramowicz. we are live on bloomberg tv end bloomberg radio, getting human shape for the trading day ahead. this morning, a couple of hours away from the opening bell. 34 points on the s&p 500, up by 1.1%. really mixed session in foreign exchange. in g10, the euro slightly negative against the u.s. dollar. outside of that, a much bigger directional move comes from the treasury market. yields higher at the long end. we are up five basis points on 1.51 percent. we go nowhere on twos. the elephant in the room, supply risk. once again, we are discussing infrastructure down in washington. it is a long-running joke through the last four years. for structure week down in washington, d.c. theregain, reports that

is a $1 trillion plan slowly coming together. tom:tom: what is so important here, and i think all of our viewers and listeners know this, is the idea that the democrats a berry -- the democrats agree, the republicans agree. what is the trouble? let's go to our correspondent kevin cirilli in washington. there are 40,000 bridges in mitch mcconnell's kentucky. ngineer rating e on those bridges. how can senator mcconnell block a $3 trillion program which i am certain will benefit kentucky's roads and bridges? kevin: well, not so fast. this is a potential vehicle come september for another round of economic stimulus. however, september is just a couple of weeks before the next

presidential election. so it is incredibly unlikely that a massive congressional package would move that close to an election, especially weighing in at $1 trillion. however, we are living in a very different time in the middle of an incrediblyand volatile time. while republicans are skeptical to get economic stimulus at the end of july, early august, the president is forecasting in this bloomberg news report that they might have their eye on september. separately, i am interested in the 5g component because that is something democrats and republicans do agree on. whether they get to it before november or in nexgen you are a, you know, that will likely be more likely the case. jonathan: from your perspective, is this in addition to or instead of what was supposed to be discussed over the next month to help this economy recover

from the pandemic of the last several months? kevin: right now, if i am being incredibly straightforward, i think right now it is saying we could have another congressional vehicle to get through in the round ofld this next economic stimulus not proved to be adequate or not can across the finish line before august recess. lisa: there's is a headline this morning, mick mulvaney, the former head of the budget office for the u.s., said that an infrastructure plan would be a poor short-term stimulative matter. pushbackering how much there is the part of republicans on engaging in another major stimulus or economic spending package at a time when the deficit is increasing. when where the republicans the party of the hawks? kevin: people like mick mulvaney want to know how they are going

to pay for it. frankly, if you are looking at this even in the longer term, we are all obsessed with the november election, but if you play this out to 2022, 2024, that is really going to be the battle from an ideological standpoint in the republican party. people like mick mulvaney. they are going to be pressing, how exactly do we pay for this? you're going to see a resurgence of that. i have my eye on senator joni ernst. she recently just launched with senator tim scott a millennial debt coalition, a coalition of republicans increasingly coming to the forefront for a new generation about these types of issues. that is why i am skeptical that a $1 trillion infrastructure plan would have a strong prospect in the fall, but i guess we are to have to wait and see. the president on air force

one, he can read a book on the first lady and a book from john bolton. what is he going to read? kevin: i don't think he is going to be reading any of these books. i think his lawyers are going to be reading the john bolton book, and they are already saying that they are willing to have this play out in the courts. as far as the first lady book is concerned, stephanie grisham, the spokesperson for the first lady, saying it is pure fiction. summer int be a washington without healthy d.c. bookclub, right? is the buzz of the town. tom: no question. [laughter] story.e kevin cirilli look for it, labor day. jonathan: the biography. i am looking forward to that. are you putting together the summer reading list? is that what this is about? tom: i haven't got there yet.

i'm threatening to read the bolton book. we'll have to see if it ever sees the light of day. jonathan: there is something that could go on the back of the book. tom keene is threatening to read this book. [laughter] that will help sales. equity futures positive 1.4%. about an hour from now, we will get u.s. retail sales. i do think the stimulus conversation is worth having. the composition of it, if you speak with democrats and republicans, the prospect of a bipartisan deal on some been like supporting unemployment, supporting companies to incentivize rehiring come of those kind of things can get done quickly. when you're thinking about things that go beyond next year, may be money that won't be deployed until several years from now, and infrastructure plan this close to the election, i just find it difficult to believe that that is something that can get through in a bipartisan way in just a couple of months. tom: i would be skeptical, too, but to lisa's point earlier, this retail sales report will speak volumes when we see it

this morning. jonathan: bear in mind, it is month on month. month on month, this has got to be better than the month before because the economy is slowly reopening. that is what we have been trading on, sequential month on month improvement. if you go from shut down to reopen, guess what? the data is going to look better. what has been interesting is that it is been so much better than many people thought it would. the -- ifou take at you take a look at the citigroup u.s. economic surprise index, it has surged. but what does this actually mean? people are basically throwing darts at a dartboard. a lot of people say the data is very noisy when it comes to jobs in particular, so there is a question as to how much of a leading indicator this is or whether it shows how little way since we have of the actual economic picture. jonathan: full coverage right here on bloomberg tv and bloomberg radio. and later, we will hear from the chairman of the federal reserve, jay powell, and front of the

senate banking committee. coming up next, michael feroli, ,p morgan chief u.s. economist here on bloomberg.

♪ jonathan: from new york city, this is "bloomberg surveillance ." we are live on bloomberg tv and bloomberg radio. alongside tom keene, i'm jonathan ferro, together with lisa abramowicz. two hours away from the opening bell in new york city. here's your price action as we await fed chair jay powell on capitol hill the next two days. equity futures advance on the s&p 500, up 1.53%. treasury yields higher, the curve steeper once again. down in washington, reporting that a $1 trillion stimulus ban isbeing -- stimulus plan being considered on the infrastructure side of things. big focus not just on the policy this morning, but also on the economic data. an hour from now we will get u.s. retail sales. let me get you the detail from bank of america.

"the economy is in the transition phase, bouncing out of a deep hole as if from a trampoline. however, after easy growth comes the more challenging incremental progress. it will be like climbing a rope." i think that is a really good way of describing what we are seeing here as we go from closed to reopen, that initial bounce, then the long slog will start at some point, and that is what we've got to get our hands around. tom: a raging debate across all of wall street, the v-shaped mess, and what we see into jay powell's 2021, and at the zero bound 2022. for those of a certain vintage, there is a way you read research of the street. for jp morgan, it was always friday evening, you would get the report from robert mehlman, and it would ruin your friday evening because he would have to go for 15 or even 20 pages.

the tradition continues with michael feroli, putting together a jewel of a report for global wall street every friday evening. he joins us now, a chief u.s. economist for jp morgan. what you are looking at on the consumer our little micro details like charge card dynamics. what do you see right now from the american consumer? -- michael: what we see in may was a pretty nice rebound from the depths of april. we see a number of indicators which suggest a very strong rebound in may. we will find out in an hour's time exactly how strong. we already have strong indication from the may auto sales report, which increased 42%. i think in line with the comments earlier, the early part of this recovery are going to be

because you're coming off of such low levels, and i think the easy part should be may, june, perhaps july. after that, the story gets a little more interesting, but it does look like it is a pretty strong month. jonathan: let's get to late summer, going into september. if we haven't passed another billing washington to help this economy, to support people who , to incentivize companies to rehire workers, what happens? michael: it is not necessarily the death knell of the recovery, but firmer stimulus would be nice. given the current policy environment, you were going to have a pretty big decline in real disposable income in the third quarter. the reason is you pack so much of that stimulus into the second quarter, whether it is

the unemployment checks, the program. we have to be confident that the economy has its own recovery dynamics in place for there to be no need for further fiscal stimulus. i don't think it is an absolute necessity, but it certainly would be nice insurance against a relapse into further weakness as we get into late summer. jonathan: help us establish the signpost to determine whether we need the extra package or not. the administration are going to take the next month to look over the data and draw a conclusion as to what we do and don't need. is that too early? michael: i think part of the problem here is the classic challenge with setting either fiscal or monetary policy. if we have to wait until we actually see the data in the late summer or early fall, it may be too late.

so congress and the fed have a tough job here, which is to make a judgment on what the economy is going to look like and act now. i think if we wait until late july, it may not pass that test of being forward-looking. this --lisa: this goes to exactly where we want to go. this economy is still recovering, but there are still millions of americans collecting unemployment benefits. it raises the question of whether the rebound we are seeing is largely confined to markets, or whether the economy is keeping pace. i am wondering from your perspective, given the fact that you try to square the markets with the economy, how much of the federal reserve stimulus, of the rebound we are seeing in stock and bond prices, how much

of that is getting into the real economy? michael: the first thing is it does look like the real economy turned the corner in may. we should see some confirmation of that later this morning. we already saw that in the jobs data. so the economy is picking up. it is true that when it comes to markets, publicly traded companies probably employee only about 1/3 of the workforce, so that leaves about 2/3 of the workforce employed by companies that aren't listed on the stock exchanges. that doesn't mean that the fed actions don't have trickle-down effects for the rest of the economy. of course, some of those actions will support noncorporate behavior. for example, lower mortgage rates. certainly, the housing sector is one area of the economy that looks like it is holding up reasonably well, and i think low mortgage rates have some role in that. i think what you are going to hear from powell later this

morning is that the fed actions are designed entirely to help american households. that said, there are only limited tools the fed has to support. tom: i know that bruce kazin has a bottle with a genie and it on its desk, but the genie is out of the bottle. we have to look at the central bank history of buying stuff. they can't stop, can they? once they start, it is really hard to say no to buying the next marginal bond, or in some to buy the next marginal share of apple computers. do you think the fed can behave? michael: well, the fed has stopped in the past after qe.

it took a taper tantrum, but they were able to pull that off. secondly, and maybe something the markets aren't fully appreciating, the corporate credit facilities which have received so much attention over the last 24 hours, those are set to expire on september 30. i think deliberately, when the implement of these programs, set expiration dates because they didn't want them to be lingering on. of course, they could extend thee, but it will take economy underperforming. lisa: what would you ask jay powell today if you were on the senate banking committee? michael: there's been some indication that the fed's next

big step is going to come in step number. i would ask -- in september. i would ask why not next week or why not in july. wait?d ask him, why jonathan: love getting your thoughts on this program. morgan --owley of jp michael feroli, chief strategist at jp morgan. -- if you were ever on the senate banking committee, tom -- tom: no, it is not going to happen. but the chairman has gotten much better in his press conferences. he's gotten much better at conveying the communication of on what all of

those these at the fed think. this is truly, as dr. for rowley said this -- as dr. feroli , this is original territory. jonathan: history has told us it is really hard to step away once you've stepped in. i just wonder whether they can let these programs expire. if you get one hit to financial conditions, let me put you in this position. do you think you will be convinced by the recovery by september, by october? will you be convinced by the trajectory of this recovery? tom: absolutely not. you don't have the time. with us in our and a half ago, and he was heated that the focus was not on the fed, not on the major banks, but his study of their ramifications over to e.m.

on thepositively grim fiscal workout for e.m. they don't have the optionality that jay powell has. jonathan: if the federal reserve hadn't stepped in the way they had back in march and into to april, can you imagine how much worse things would be globally? remember how big demand was for the u.s. dollar in march? can you imagine the state e.m. would be if the federal reserve hadn't addressed those issues? tom: no question about it. absolutely. question for jay powell a little bit later from the senate banking committee. we will take that full come alive on bloomberg tv in bloom or radio. that in full, live on bloomberg tv and bloomberg radio. also onounting you down

u.s. retail sales. we will bring them to you at 8:30 eastern, in a roundabout 49 minutes. from new york, this is bloomberg. the first word news, i'm ritika gupta. today, president trump will sign an executive order on police conduct and reforms. it is in response to nationwide protests over george floyd at the hands of the police. it urges police to adopt stricter use of force policies. there will be more federal grants to departments that curb the use of chokeholds. the fed is stepping up its emergency lending program. up until now, the fed has bought only exchange traded funds. they will follow a diversified market index of corporate bonds. buying begins today. beijing trying to figure out if a new coronavirus outbreak in the city should lead to another strict lockdown. health officials have ramped up

mass testing. beijing closed another food market after a case was discovered. 11 other markets have been shuttered, and almost 300 others sanitized. it was the deadliest corporate crime in u.s. history. today in a california courtroom, pg&e will plead guilty 84 times two involuntary manslaughter. sparkedities equipment a wildfire. has already settled with five victims for billions of dollars. will not require standardized testing for the class that begins in fall 2021 because the coronavirus pandemic has restricted access to the sat and act. harvard says the changes only temporary. one survey says that more than

half of colleges won't require the sat or act for fall admission. global news 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. i'm ritika gupta. this is bloomberg. ♪

>> this is nowhere near some kind of second wave. nowhere near it. they believe that we have a lot more experience with this.

we have a lot better equipment to deal with this. we can send teams in to these particular places and calm things down and get the numbers back down. jonathan: the chief optimist in washington, d.c., larry kudlow, the national economic council director. the bar being higher for a second lockdown. this market seems to be the way some any people see it. equity futures up 40 points on the s&p 500. we advance 1.3% on the s&p. higher, curve, yields curve steeper. on the 30 year, by five or six basis points. totends to 0.74% -- on tens 0.74%. alongside tom keene, i'm jonathan ferro, together with lisa abramowicz. we are live on bloomberg tv and bloomberg radio. that seems to be the take that this time around, unlike several

months ago, relatively speaking, the bar is higher now for a lockdown. whether it materializes and plays out that way, that is the take among a lot of policymakers in washington right now. tom: it is the path of a pandemic. i love how you say mr. kudlow is the chief optimist, and i say that with great respect. right now, your interview of the day on this pandemic. if you are ever so lucky, and science, you can read biochemistry and say i wandered by it. others mastered it. yale,hotez went to rockefeller used -- rockefeller university. he joins us this morning from baylor university. i take great issue with the media silliness over a second

wave. it is a three variable differential equation. are we looking at a second wave, or is it just the normative expansion of a virus in pandemic? peter: first of all, thanks for having me on. i think you are the only major news anchor who knows what lenin ger 's biochemistry is. we saw what was happening in new york. we went on lockdown in the middle of march, and we did everything right, and never got that surge, but then we couldn't keep it together. the modelers told us we had to keep this in place through the month of may. we opened up towards the end of april, and now we are seeing massive resurgence.

i'm not sure if it is a second wave. it is just that we never brought it down to zero containment like we could have. tom: you are scrambling to acquire, to invent, to give us a vaccine. give us an update. peter: we have developed a low-cost vaccine made of the same technology used to make the hepatitis b vaccine used all over the world. it is made in india, brazil, indonesia, bangladesh. we decided we would do that to make a highly accessible covid-19 vaccine. it looks promising. we have been engaging the drug administration to move this along. we think this could be one of the first global health vaccines

used everywhere, and made locally. the problem is we are not a pharma company. we don't get all of the stuff you hear about in terms of big-time government. but we are raising money privately, and hopefully we get a partnership in the coming days and weeks. moderna ceo is expecting a vaccine could be ready, if all things are up and running, by thanksgiving. how close are we? not only to getting a vaccine that can be widely distributed as you are talking about? peter: certainly not by thanksgiving. what is going to happen is you are going to see a number of feedback things into interface .hree critical trials

it will take about a year to show that the vaccines actually work and are actually safe. the white house frames this is a manufacturing is to -- manufacturing issue. they talk about in the same context of making ventilators or diagnostic kits. it is not the same. the big hurdle is you need to show that it is safe, and that means doing a 30,000 person study. i don't see a path by which you can collect enough data showing that it works before the end of the year, so i think more likely in the middle of next year, that would be a speed record. so i don't think some of the ceos and people coming out of

the white house saying we can get it by fall, i don't see how that could happen. jonathan: thank you for being on the program. the market coming at this rather crudely and emotionless, as you would expect it to. the market is focused on reopening. whether this will put the brakes on reopening. you have to focus on what the governors are telling you. ,ight now, governor newsom governors from states where we are starting to see an increase in infections, they are showing no appetite for shutting these economies down again. until we see the economic data and the recovery held back by an increase of infections or some type of appetite to shut down economies again, i don't think the market picks up on this in a bigger way until we start to get to that breaking point. not saying we are not going to get there. that just seems to be the direction of travel right now. tom: i think you are 100%

correct. all it comes down to is, after a lot of experience, we are doing our own swedish experiment. the colossal bet here, and i defer to steve riley or the good people at johns hopkins, all we are doing is making a strategic that that the juncker -- strategic bet that the younger, healthier people won't die if this. but you have to ask, what about the elderly across the sun belt? jonathan: and confidence in general. how much confidence will we have on this from the pandemic side of things? lisa: you are already seeing that, with people not going out to eat as quickly as they could in china. if we get a vaccine, what kind of confidence will beget if it is safed -- will we get that it is safe if it is rest? jonathan: let's hope it doesn't

take that long. from new york city, up next, we will be catching up with the u.s. secretary of labor eugene scalia. that is next on bloomberg tv and bloomberg radio. this is "bloomberg surveillance ." ♪ you doing okay?

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>> the market has gotten really negative about the prospect of future inflation. >> the problem is when you support all markets, you're not letting markets do their work, and the question is, when do you allow that to happen? >> we come to a point where we realize that the virus and the economy have to coexist. we can't choose one or the other. >> this is "bloomberg surveillance" with tom keene, jonathan ferro, and lisa abramowicz. tom: good morning, everyone. "bloomberg surveillance." we welcome all of you. this is a simulcast. we welcome you on radio worldw