>> 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 worldwide, and on bloomberg television.

without question, the data, another remarkable day after the remark about turnaround we saw yesterday. jonathan ferro will give you that data in a moment. coming up, terrific sets of conversation on economics. you've got the retail sales data coming out that will be most interesting and important as a sign of the american economy. jay powell at 10:00. in moments, we are honored to bring you the secretary of labor of the united states after the history made yesterday at the supreme court. jonathan, that was remarkable to see what the supreme court announced yesterday, the immediate impact of those for and those against. jonathan: making some serious progress on a whole range of issues in this labor market, particularly on discrimination. we've heard about the social injustice of the last couple of weeks. but we are making progress, and i think that is key. equity futures are positive 43 points on the s&p 500.

treasury yields, the curve is steeper. chairfederal reserve navigates that with the senate banking committee and how things progress on infrastructure, as we report this administration is looking at a $1 trillion plan. tom: lisa, i thought of you this morning when we figured out another $1 trillion for infrastructure, and kevin cirilli making it clear we may not see that, but we begin to buy corporate bonds today. investmentg lqd grade bonds, looking for them to never go down in price ever again? lisa: i've been listening to you for years talk about triple leveraged cash flow -- triple leveraged cash funds, so i had to follow your lead on that. there's been conversation on the fiscal stimulus ahead of the retail sales we get and about a half an hour. this comes as mcdonald's reports

better-than-expected sales, only down 5% in may after plunging more than 19% in april. there's a question, how much of the uptick we are seeing in the data stems from the enhanced unemployment benefits that are giving a lot of workers spending power at a time where the jobs picture is still very bleak? tom: let us get right to it. we have a lot here on our simulcast, and we will come out of the. the secretary of labor of the united states, eugene scalia, we are thrilled to have you on after this supreme court decision. how will the department of labor adapt and adjust immediately to this historic decision? sec. scalia: good to be with you. yes, it is an important decision. the court issued it yesterday. we don't have the primary responsibility for administering that particular law. the equal employment opportunity

commission is the agency charged with administering title vii. but we are certainly reading through the court's decision. the court has ruled, and we will adhere to that. tom: it is very important to understand that you will set the tone, and we would suggest that jean scalia has been doing that -- that gene scalia has been doing that for years. there's ideas here of the religious exemption to the normal labors of this country. that businesses can say we digress from this ruling, we are not going to do it. do you think that will be evident immediately? how should eeoc or labor respond? sec. scalia: i think that was one of the issues that justice gorsuch, in his opinion for the majority, sidestepped a little bit. people ofedged that faith and religious institutions affectedrly might be

more than other institutions by this decision, and he said that is an issue that we will address some other day. i think that was one of the issues the decision potentially addressedat will get by the courts down the road. dissenters would have liked the court to address that more fully, but the majority didn't. thank tom: tom: you for addressing these issues. -- tom: thank you for addressing these issues. give us an update on what your micro data sees of a depression level joblessness in america. tom: well, i have to say ash sec. scalia: --sec. scalia: well, i have to say the comparison to the depression only gets you so far. we have had very high unemployment. we have had too many americans put out of work, and we know the

hardship for them and their families. at the same time, we got here by a very different route than we got into the great depression. i think the jobs data we put out suggests we will come out of it by a different route. trend that isa continuing right now. that data was a month old. there's been a lot of reopening since then. so i think people are getting back to work. it is important that that happens safely, and that is something we keep an eye on, but i think we are making real headway on the employment picture right now. jonathan: let's talk about that. do you see any evidence right now whatsoever that the enhanced unemployment benefits are holding back rehiring? we hear concerns about that raised anecdotally by a number of employers. the point that they make is that with the enhanced unemployment

benefit provided by the federal weeknment, which is $600 a come on top of the state benefit, people can be making and $55,000 on an annual basis on unemployment, significantly more than one see s, and the concern is that they will not return to work. that benefit expires at the end anticipation that we wouldn't be shutting down our economy at that point, that we would want people to go back to work. lisa: when we spoke to you last, you said you do expect those enhanced unemployment benefits to expire in july, and we have heard the same from other administration officials. what could meet you chain -- what could make you change your view? what data would come in weaker than expected that would make you think, even if people are making more than they previously made, it doesn't mean that they , andt going back to work

at least they can continue to pay their rent? sec. scalia: i think those are a couple of different questions. we will look at a variety of data coming in. on july 2, we will put out a report for june. i think that report will show many more jobs added to the economy, but let's look at that report, watch other trends, and see what additional measures may be needed. going to bek it is continuing that $600 benefit, which was a very important, valuable benefit for american workers while we were closing our economy, but it was a blunt instrument. it is in light of some real limitations states had in their item limit systems. -- there unemployment systems. i don't see that as the policy going forward. secretary, are you working with you to permit of

transportation on that plan -- the department of transportation on that plan? sec. scalia: there are discussions across the administration on what the right steps are for the economy. we certainly appreciate the implication that the infrastructure bill could have throughout the economy on unemployment, and there are things being talked about. jonathan: is infrastructure one of them, a $1 trillion plan? sec. scalia: there have been different numbers put on it. i will just say that certainly, something being talked about, and there has been interest to sprecher -- there has been interest expressed in it. one of the things i have said before is one of the marks of the virus is how swiftly things. i think it is important to watch the economy develop, what's the rush ing, and not to a playbook we used in march,

for example. jonathan: hopefully we can get you back on soon because this labor market healed quickly, but i am not sure how many think that it will continue quickly. there, the u.s. secretary of labor come on this labor market and the global economy. this is the key issue right now, the bounce as we reopen. continue? how much more assistance what we need from washington, d.c. in the months to come? tom: a complete mystery. with 200,000 claims long ago, and we explode to millions. yes, we are coming back, but i would suggest the next four to six weeks of weekly jobless see a complete and total mystery. jonathan: we see this in some of the big.

-- we see this in some of the big multinationals towards the end of the year. lisa: some of the first cuts were the lowest income employees. now there are talks about managerial staff being laid off. we are seeing this anecdotally. i am wondering what that will do in terms of the data to keep the economy chugging forward. jonathan: much more to come this morning. in around 19 minutes, we will have u.s. retail sales. full coverage of the economic data coming up. 90 minutes after that, you will hear from the chairman of the federal reserve, jerome powell, and front of the senate banking committee. full coverage come alive on bloomberg tv and bloomberg radio. alongside tom keene, i'm jonathan ferro, together with lisa abramowicz. we will hit the markets with james athey of aberdeen standard investment, the senior asset manager. equities drift higher on the s&p 500. treasuries lower, the yield up, curve steeper.

risk appetite improves compared to 24 over the ago. from new york, this is bloomberg. ritika: with the first word news, i'm ritika gupta. the trump administration is preparing its latest proposal to get the economy going. bloomberg has learned the plan calls for spending almost $1 trillion on infrastructure. most would be set aside for traditional projects like roads and bridges. it would also spend on 5g networks and rural broadband. fed chair jerome powell is expected to give another downbeat view of the u.s. economy today. of hearingso days on capitol hill with an appearance before the senate banking committee. last 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 to south korea in years. kim jong-un's regime has blown up an inter-korean liaison office on its side of the border

, according to south korea's unification ministry. in recent weeks, north korea has issued an escalating series of threats against the south, unhappy that south korea backs the u.s. led sanctions campaign. the u.k. and european union believe they are a step closer to a brexit deal. they believe a video call between leadership has injected momentum into negotiations. they suggest that johnson is willing to soften his position, and european officials said they are willing to do the same. it may take a couple of years for global oil demand to recover, according to the international energy agency. theiea says fuel use around world will remain 2.5 percent lower next year than in 2019, largely because of what the agency calls a dire situation of the aviation sector. they also predict that output cuts and shutdowns should put the oil market into deficit next year.

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. ♪

>> just announcing the fact of moving forward with individual bond buying suggests that much more of the capacity of the fed has talked about using up to now will get to work and put to work

rather soon, and that is an increment of positive -- an increment of positive. that is a huge positive for the credit market over the last several months. down to the opening bell, one hour and 12 minutes away, with equity futures dancing higher on the s&p 500. we advance 55 points, session highs going into u.s. retail sales on equity futures, in a roundabout an hour and 40 minutes from hearing chairman powell on capitol hill. lower,ies are softer, weaker. yields higher by three basis points. that steepness is back in the curve, the cyclical rotation back in the equity market in the second half of yesterday

session. tom: just extraordinary. you say second half of yesterday's session. i thought it was just amazing, the gloom that we felt while we were doing this 24 hours ago. ,hen we launch forward launching down the field when the premier league opens here in a bit. you know that's got to happen. does that mean we have james athey of aberdeen standard investments with us? are you going to bring in the fans from london with us? tom: every six weeks, we are required to have a spurs fan. mr. athey joins from aberdeen stamford. it is -- from aberdeen standard. it is incredibly loved market. the cliche is walls of worry. how higher those walls right now ? it is just -- is it just the

resurgence of able market based on worry -- of a bull market based on worry? james: i've probably got more conviction speaking about spurs then i do about this equity market. interesting -- one of the interesting questions to the fed in equities. you talked about how quickly jobs come back, how much demand we've lost, how much medium-term damage there is, how much companies, individuals are forced to pay down debt as opposed to spending and hiring. all of that stuff is very difficult to analyze. what we got from the fed yesterday didn't seem to come at a time when any new information was available with respect to the economic outlook, but the one piece of real-time information was that risky

assets have been having a bad couple of days. it did seem to have already found a base, and we got the fed seemingly trying to goose markets a little higher. is that a reflection of how sensitive the fed and other central bank's are going to be? it is very difficult to believe that there isn't a longer period of risk on for asset markets, in spite of how crazy that looks compared to the real economy. jonathan: they are dammed if they do, dammed if they don't. they would have been criticized heavily at the end of february for not stepping up and stepping in when it was clear this economy was breaking down in a significant way. as they step in even more and start to carry on saying that this is about market functioning , at what point does that impair market functioning from doing this much?

james: already think it is impairing market functioning, and i think it has for many years. when using about market functioning, one of the primary functioning of markets is accurate pricing of risk and the role of allocated capital in a sufficient manner, making capital go where it is going to be the most positive, in terms of returns, but also in use of that underlying capital. markets should not be esoteric casinos. connectedd still be to drive that valuation. i think we are in that place where it is continually impeding the true function of markets. if there a point at which all of the central banking is no longer able to push prices up, where markets just start to say this sentiment?ing the

price beginning to the unlikely mess. at the moment, it doesn't seem so. the question is that there are certain investor types, investor styles within markets that don't really care about fundamentals. there either -- they are very much about price moves, and they could keep the market supported for a long time. correct, ift is there is a point where central banks run out of room to prop up not just buy the riskiest securities and watch the prices rise? james: i think people are doing just that. it is really anecdotal, and we try not to use anecdotes to drive an investment thesis for obvious reasons, but some of the anecdotes around retail

in the most beaten .p names, that is concerning in days and weeks simply because the narrative around that firm is popular. all of this stuff is indicative of exactly that sort of behavior where people really are throwing out the textbook as to what it is exactly they are buying, and just latching onto narrative and sentiment and momentum in the most aggressive way possible. that can be a very successful strategy. we know from other experienced investors that participating in a bubble is not necessarily rational, but you just need to make sure you get out before things start heading in the other direction. where that point comes is difficult to say. it is lightly to be collective psychology rather than something fundamental or even related to policy. jonathan: looking forward to catching up with you soon. james athey of aberdeen standard investments.

equity futures at session highs, up 57 points, 1.9%. we are five minutes away from getting the u.s. retail sales, as we await prepared testimony from fed chair jay powell as well, and equity futures rallying into the event. tom: there's no question, it is more than a rally. call it., you can acceleration like your automobile, jonathan. just extraordinary to see what we've done not only in the last 24 hours, but in the last 20 hours from that bombshell at the fed yesterday. jonathan: questions for chair powell? i thick it's got to be about fiscal. i have no doubt some people will be criticizing what they do on the monetary side, but we are really trying to figure out the next fiscal steps, aren't we? lisa: and how much he is going to push for additional stimulus from the federal government. i am wondering what he is going to say when it comes to taking on credit risk and backstopping companies against bankruptcy, a

key question. jonathan: the economic data five minutes away. equity futures up 1.9%. live on bloomberg tv and radio, this is "bloomberg surveillance ." ♪

jonathan: from new york city, this is "bloomberg surveillance." for our audience worldwide, we are live on bloomberg tv and bloomberg radio. alongside tom keene i am jonathan ferro together with lisa abramowicz. we wait jay powell in front of the senate, tomorrow in front of the house. retail sales. let's head to michael mckee. retail sales, up 17.7%. more than the decline in the month of april, 16.4% down in may., up 17.7% if you drop from a higher number any rebound, you are still below where you work. that is where we are at this moment. autos up 12.4%.

the forecast is up 5.5%. gas -- motor vehicles and parts up 44% during the month. there were almost no auto sales during the month of march. furniture and home sales up 89.7%. electronics and appliance stores up 50.5%. this type of thing you will see because of the huge declines we saw. we will get something of a rebound. food and beverage stores up to present. 1.3%.estores up only everyone went out and bought in march, stopped out their freezers and cupboards. it looks like they did not have to go shop during may. these are the kind of numbers you would normally see. clothing and accessories. i do not know if this was tom keene buying new bowties, up 188% in may.

it does show when the economy reopens, people want to spend money. that is the initial action. we will see whether it lasts. jonathan: let's talk about the reaction in the market. equity futures at session highs. we advanced 2.3% on the s&p. treasuries head even further south. down on treasuries by four basis points. upseven r8 basis point -- seven or eight basis points on 30's. it is not the bounce, it is the magnitude of the move, the magnitude of the upside surprise. it leads me to ask the following question. why are we finding it difficult to understand that initial bounce as we come out of lockdown and why it is surpassing expectations again and again over the past couple of weeks? michael: hard to say. the economy has not changed that much. you cannot go into clothing stores and things like that,

although in some states you can. in most states you cannot. people are obviously buying online or they are doing curbside pickup. it does show a pent-up demand on the part of americans. these kind of numbers, the magnitude is what will impress the wall street people who bet on the idea of a v-shaped. the question is does it stall out? do people satisfy that urge and start to save up because they worry this could come back in a second wave? that is a later in the summer story we will be following. jonathan: huge upside surprise. michael mckee, a little bit later catch up with michael on the federal reserve. let's talk about chairman powell. that testimony get easier tougher because you have to convince people not to get carried away from the initial bounce coming out of the shut down. tom: he can say that. the answer is every politician

once good news. -- wants good news. republicans or democrats will love this good news. -- this is three huge surprises where good, qualified people have misjudged the micro dynamics of the moment we are in. there is no other way to put it. jonathan: the economic surprise indices are going through the roof. the positive surprises we have seen on a range of data points over last several weeks has been quite impressive. understanding how we bounce out is something difficult to do. quite clearly, lisa, as you suggested, is something economists are struggling with. lisa: we saw this with the jobs report we got last week and we saw the u.s. citigroup supply

index rising to a record high. to me this raises a serious question. how much are economists able to understand the labor market shock we have just seen given the fact they are having such a difficult time understanding the rebound as well as the depth of some of the declines. i am struggling to understand how much to read into the numbers as well as the projections who getting from wall street. tom: we get lucky. lara rhame with us. economists, she has tangible real market experience of foreign exchange across markets as well. we have now seen these surprises. thingone, thing two, three, whatever you want to call them. are we completely misjudging the character that this is a natural disaster and nothing but a natural disaster and we will recover much quicker?

lara: it is a tough conversation to jump into as an economist because i hear you. i feel like we are always better at the longer-term the month-to-month. the issue of the v-shaped canvery or some of the data get too loose because the down has been so significant. i think to some degree in the near-term your correlation to patrina or some of these deficits -- took katrina or some of these devastating national disasters holds because there is a human desire to get back to normal in some way. that has been palpable. to be honest, $300 billion of government stimulus and extended unemployment benefits, i look at

the summer and i see a race. we are looking at a lot of supplemental benefits ending. there is wide conflict over whether to re-up those or not. as economists we are still focused on the employment picture. i think that has been the big mess. we have been looking at terrible employment numbers and carrying that through to human behavior. this is exactly where i wanted to go. the idea that the data is so much better than expected because of the government stimulus and the checks people have been getting in the mail. there is a question on one hand the data is better-than-expected because you've been giving support any of congress members saying the data is better so we do not need to continue to give the support. can you thread this needle? how long the support would have to go on or how you can even parse out those things at a time of such uncertainty. i would take that

difficult conversation a step further because some folks on the hill are arguing the economy is just fine and going forward we should be full steam ahead and return to normal, and then the argumentside we should be adding more stimulus. to me it comes to a critical deadlock. i think there is a lot of will to do something. agreeing on what that should be will be extremely difficult and very contentious. i think a lot of people think there'll be an added $1 trillion hitting the economy somewhere. cities and state infrastructure that becomes a much greater question mark, especially as the data gets better over the next couple of months. going vertical right now. on the s&p we advanced 2.5%. to wrap this conversation up, so many companies say do not

extrapolate -- so many economists say do not extrapolate out too far too quickly. my question at the moment would be the initial bounce out of the shut down, we seem to be having real trouble understanding how big that bounce is. at what point do you expect the bounce to fade? when do we know the warnings not to extrapolate out the improvements we have seen are actually true? is it august? september? lara: i think it is july, and i could be speaking as a parent. when we find out if schools are reopening or not, it will have a big implication for the virus, how we are able to regain the economy, and how back to normal we can get. jonathan: lara rhame of fs investments. always great to catch up with you. thanks for joining us on the huge upside surprise in the u.s. economy, not just on the labor

market from the payrolls report , butouple of weeks ago u.s. retail sales encouraging as well. up 76 points on the s&p 500. we advance a little bit more. a little bit more fuel for the optimism as we bounce out of shut down. nasdaq 100, 10,000, and the down nowhere near the record highs of 29,000, but pushing aside the bloom we saw late last week. remarkable, we moved 10,000 dow points, 20,000 dow points in a matter of five days. jonathan: i do not count in dow points, but i take your point on the equity market more broadly. is chinese water torture, drip, drip. the bank of america with the fund manager survey saying the pain trade --

lisa: i thought was interesting the cash allocation dropped to 4.7% from 5.7%. that was the biggest decline since 2009. we know what to thousand nine was like. know is a question -- we what to thousand nine was like. there's a question -- we know what 2009 was like. is that what we are pricing and at this point? jonathan: the market is getting better. up to .6% on the s&p 500. that data point behind us. % on the s&p 500. 10:00 eastern time, the chairman of the federal reserve jay powell in front of the senate banking committee. day one of two days of testimony on capitol hill. full coverage on bloomberg tv and bloomberg radio. alongside tom keene, i'm

jonathan ferro together with lisa abramowicz. with your equity market pushing higher, this is bloomberg. ritika: with first word news, i am ritika gupta. today president trump will sign an executive order on police conflict. response to protests over george floyd's death at the hands of police. the order will urge police to adopt use of force policies. the federal reserve is stepping up emergency landing to central banks. fed has boughthe only exchange traded funds. the fed says it will follow a diversified market index of corporate bonds buying begins today. beijing is 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. it includes another food market aftertaste link to the original was discovered.

11 other food markets have been shuttered and almost 300 others sanitized. it was the deadliest corporate crime in u.s. history. today a california courtroom, pg&e will plead guilty 84 times to involuntary manslaughter. utilities equipment sparked the wildfires in 2018. .g&e will pay a $4 million fine peers inas joined its a major shift in college admissions. it will require standardized testing for the class that begins in 2021. that is because the coronavirus pandemic has restricted access to the sat and act. harvard says the changes only temporary. more than half of all four year colleges will not require the sat and act for 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 am ritika gupta. this is bloomberg. ♪

>> given the current policy environment, you will have a pretty big decline in the third quarter. the reason in you've packed so

much of that stimulus into the second quarter. mike rowley of jp morgan on the storm clouds -- mike feroli of jp morgan on the storm clouds. sales data- retail much better than expected. from new york city, good morning. i'm jonathan ferro together with lisa abramowicz. futures up two .6% on the s&p 500. up 80 points going into the opening ballot. i'll be running up to cap you down to the opening bell and get you up to speed with michelle meyer of bank of america in the big turnaround in the economy as we reopen. tom: it will be interesting to see, michelle meyer always wonderful on the american consumer. right now, we want to go retail. sadovepoke to steve yesterday, now we speak to gerald storch.

he has a wonderful pedigree of trying to drive forward retail and how we consume, not in the target, at toys "r" us, but of curse -- but of course his work at hudson bays. wonderful to have you here. give me an update on how retail is doing against amazon. ,e just saw great retail news but was it just great digital news, great amazon news? gerald: great question. we are seeing amazon continue to thrive. one of the most amazing numbers from the report was internet sales were up 31% year-over-year and they were up 9% versus last month, which is already way up. no doubt amazon and the there is some brick-and-mortar doing just fine. another great number was with homeaterials,

depot up 16% year-over-year and 10% versus the prior month. they are doing fantastic. walmart and target are doing great. when you look at general merchandise, year-over-year was flat. they were up 6% versus the prior year. that includes department stores. they're the ones getting annihilated. even people say they were up versus last month, they better be pure -- they better be. , downl was also terrible 6% year-over-year. the prior trends remain, they were just exacerbated. lisa: let's talk about some of the pain we are seeing in the department store space. a brand is teaming up with simon property to buy j.c. penney. the idea being mall operators saying they need to preserve that space and that store. what is the calculation?

how much more staying power does the traditional brick-and-mortar department store have going forward? gerald: there is no doubt they are getting hammered. they have been for a long time. it will not get better. shifted theiras purchasing habits away from the mall and away from department stores towards retailers and the internet. even worse for department stores, they have shifted their habits away from apparel and towards other forms of spending. what we are seeing is not just department stores, apparel stores getting killed as well. the mall owners have no choice. if they let some of the bait anchors go out, then they will be stuck with a significant reduction in the rent they receive from the other tenants. there will be massive renegotiations taking place. they have to face some of the guys. you see smarter developers, and simon is the best of the best, they are being very thoughtful and who they invest in support.

you saw them supporting forever 21, another important retailer. they will pick and choose who they will try to keep in business so the whole malls do not go dark. we have two to three times the retail square footage in the u.s. we need. something will change. lisa: this has been a trend in place for a long time, the pandemic accelerated it. i'm try to understand what this will look like going forward. some of these stores, a lot of them will have to close. you have mall trying to preserve their tenants and it only goes so far people are shopping online. will it be more fulfillment centers within the malls? will it be more experience even though there is hesitance at this point given the pandemic? gerald: it is not just the internet killing these malls. it is also the big-box retailers , companies like walmart and target and costco are doing fine. dollar stores are doing fine.

dollar general, these folks are doing great. it is not all moving to the internet. there is multiple pressures on the malls and department stores that have been there for quite some time. many of the malls will simply have to close. others will remain open with reduced rents. others will be developed into multiuse communities with more residential and more commercial real estate. if there well located, real estate is still real estate. they are making anymore of it. some of the malls and terrible places will have to go. some of the malls of gone too far the other way, trying to be the experience where you spend the whole day, having lots of sun on an amusement ride, they have gone too far. people do not want to hang out in an indoor space and wander around. tom: we have to get you back. gerald storch, thank you so much.

greatly appreciate the enthusiasm as we analyze so much about retail. all you need to know is once again, like the jobs report of a number of weeks ago, retail stuns with a huge snapback. that is all there is. it was a huge snapback, wasn't it? 17 point 7% gain versus the expectation of a little more than 8%. it raises the questions of why economists are lowballing the recovery. we are still seeing a massive jobless rate. there still is a lot of pressure on the economy, but i have to go back to something lara rhame talked about earlier. the stimulus we saw from the federal government has given people more spending power than a lot of economists accounted for. the question is how long does this last? when can we expect this initial v-shaped to fade, or is this going to be what it is going to be and are we going to see something closer to a v-shaped recovery? tom: some of that may be a gross

underestimation of the bottom two deciles of the income pile getting support from the government. i need to support you with the data check. we do that with two big figures. last 22 hours,e i will say maybe 21 hours, we've gone from 44 to 32 on the vix. at the highs of the other day we were under 30. we do ok in the equities market. spx up 87 points. 2.9%. up 927ures dazzle, points. lisa and i will keep going until we are up 1000 points. 26,600 up on the dow. 3.6% as well. upthe yield space, treasury five points. the chairman of the federal reserve will have something good to say about retail. we will look for that at the

10:00 hour. stay with us for more good conversation. this is "bloomberg surveillance." good morning. ♪

♪ jonathan: from new york city for

our audience worldwide, good morning, good morning. open"ountdown to the starts right now with equity futures surging. we begin with the big issue. economic upside data surprised supported by policymakers continuing to feel equity market gains. place, ihe stimulus in think the economy can get back into a better footing. >> massive financial stimulus. firepower,ave fiscal you can spend money without the central bank doing more crazy stuff. >> there may be new opportunities for the fed to play defense and protect the economy. >> we have a central bank highly committed to putting liquidity into the market. >> delaying fiscal stimulus and limiting fiscal stimulus. >> what the government needs is fiscal firepower because you will need to be spending money to keep pushing the economy. >>