>> mrs., as consumers, we have , as- as businesses consumers, we have to make these decisions knowing that this deadly disease is swirling out there. >> this does lead to miss allocations of capital. >> i think it is important for the credibility of policymakers to follow through on the commitments they have made. >> this is "bloomberg surveillance" with tom keene, jonathan ferro, and lisa abramowicz. jonathan: from new york city, for our audience worldwide, good morning, good morning. this is "bloomberg surveillance ." with equity futures slightly negative, we are live on bloomberg tv and bloomberg radio. alongside tom keene, i'm jonathan ferro, together with lisa abramowicz. we start the program this morning by heading over to london, where the bank of england rate decision is on deck. guy johnson, more qe from the boe. guy: pretty much in line with what the market was expecting the bank to deliver. the bank of england rating its

total bond purchase target to $745 billion. beforewaiting until 2:30 the governor comments to journalists. we will get more details on exactly what the bank was thinking at that point, but there's obviously speculation swirling that we could see as far as negative rates. qe byoted 8-1 to expand 100 billion. it will be interesting to know whether that one is actually for more qe at that point. the data in the moment very weak. we saw the cpi data earlier this and thatedibly weak, negative gdp print for april. remember, the bank and the asernor more broadly seen

more optimistic on the economy in the u.k., but the bank is ready to take further action is needed to aid the economy. that is what we've got so far. jonathan: the pound filling the gap lower, turning negative by just 0.1% against the u.s. dollar. get me to august for the next big bank of england sit down. we expanded qe by 100 billion. do they have to go again? guy: the expectation is they probably do have to go again. in many ways, today is just a continuation operation. they get to where they need to be in august to make a better assessment of what is happening with the economy. -- bank now saying the axes saying the asset purchase program to be completed by the end of the year. as the august decision seen absolutely pivotal.

we will see whether they dip their toe into the negative rates universe. it is now widely thought that the bank will look at other options such as yield curve control, maybe lowering the rate on the funding program, similar to what the ecb is doing with the tltro. you keep the main rate where it is and lower the funding on that program, which gives the banks very cheap money, or it could buy even riskier debt. but the bank also now adding that the labor market has weakened materially. but that august meeting now absolutely crucial. you wait until 2:30, and we make it a better guide at that point as to where the bank is going, where the governor is going in terms of additional policy, which could become reality in august. jonathan: guy johnson on the latest from the bank of england for another 100 billion sterling in qe.

largely expected. maybe they will have to do any more. largely expected they will expand the balance sheet again. sterling turns around with it. pop -- is amazing, john it is amazing, jon. i'm going to interview now our chief premier league strategist jonathan ferro. do you decide to do negative rates, or does the market tell you to do a negative rates? what do you think? jonathan: i think what the bank of england has done has been really curious. i think they are flirting with negative interest rates, which brings down yields even further, but i don't think they want to do it. the former governor used to call this the merit dollar strategy, were you think left -- where you feint right, but ultimately just go forward. tom: who's merit donna? on, you can't

know the man city score and not know who diego merit donna is. you're just exposing yourself. tom: was he there last night? i don't know. i know kenny g played. jonathan: can i turn to lisa abramowicz to get the latest on what we expect over the next four hours? [laughter] through the day ahead, please. lisa: it is interesting, especially as the data gets worse in terms of the labor market in the united kingdom. 8:30 am theting at initial jobless claims, as well as the continuing claims, which i am watching closely to see whether the optimistic read on the jobs report will read through. also, 1:00 p.m., democrats in the house unveil an infrastructure proposal, and a 3:00 p.m., president trump is meeting with governors to discuss reopening of small

businesses. very interested in what he has to say about the book john bolton wrote. also, i look ahead to his rally in tulsa, oklahoma tomorrow. election season really heating up in the u.s., heading towards another crosswind in the difficult market. jonathan: nobody is happy with mr. bolton. we will catch up with mr. cirilli in about 10 minutes. i want to start with kate moore, blackrock strategist. can you tell me whether traditional approaches matter anymore in a world dominated by monetary policy? kate: let me just say, good morning. i think valuations at this point are really tricky, especially forward measures of valuation. no one knows at this point, , have a, companies great sense of what earnings .ill be in 2020 or 2021

i thank we are experiencing a lot of dislocations in the economy and consumption patterns, and it is pre-difficult to predict. so valuations in and of themselves are a difficult way to make investment decisions. what i will say is on across asset basis, with all of this qe, with all of this repression of yield, equities may look a little bit better. tom: this is extraordinary. i agree, it is completely unusual times, but june 30 beckons. how will institutional buy side 1?ey reset for july ate: i am not sure we have giant rebalance after the second quarter. they never tend to move the market is much as we might fear. i think there has been a

consistent rebalancing of institutional portfolios along the way, and people are still trying to figure out what to do with the second half of the year, yet alone make big asset shifts that will affect multiyear horizons. at this point, i would expect people to continue to ride the risk wave a bit, conscious of the fact that in the second half of the year, we have another set of big risk factors. lisa just mentioned the election. there's going to be a lot more news out of d.c. over the next couple of months, and a lot of posturing by both democrats and republicans. i think that is perhaps going to shake the markets a little bit at some point. lisa: i am struggling with writing the risk curve at a time when people are still hiding out in some of the more defensive names. you see that certainly would be tech stocks and investment great. -- and investment-grade credit. what do they have to see to go further into risk? kate: i feel like you are asking

at what point we get a rotation into value, and perhaps some of the lower quality stuff. the hiding out has been in higher-quality companies with strong balance sheets, management teams that investors have conviction and confidence in their ability to execute, and i think that makes sense. the trouble with what falls into value or what falls into the highly cyclical parts of the market at this point, some of it is structurally impaired. it is a much harder call, whether we are talking about the next couple of weeks or couple of years. one of the ways we have been talking about it on my team is to go into the wimpy cyclicals. these are cyclical companies, if you want to make a rotation towards better u.s. growth, that also have the balance sheets and decent management teams. they may not be the cheapest, but i think they are the better bet. e, always kate moor

great to catch up with you. talking about structurally impaired businesses, did you see the delta ceo an hour ago speaking to bloomberg's david westin, cap and capacity on planes at 60%? he was clear that can change, but let's consider that. operating below capacity, can these airlines make money at 60% capacity? lisa: it is really difficult, and this is a big question. how much can these airlines ramp up business at a time when people are nervous about the virus, and they have to protect themselves from a liability standpoint? i am struggling with the viability. at what point does the pressure of not getting customers through the door start to create a solvency issue that said money cannot solve? i think that's what a lot of investors are grappling with. just limitedis not customer demand. it is limited ability to actually expand capacity.

you have to put the cap on yourself as an airline. we've touched on it several times over the last month, but below capacity growth is something we will be grappling with with a long time, away from the sequential improvement story driving this market. tom:tom: i think you nailed the meat of the delta interview. i think it is absolutely incredible how we are going to -- you and i i think talked the other day, is it a variable cost or a fixed cost? these companies, whatever their industry, are being overwhelmed by the new reality of crushing fixed costs, and they are going to have to adjust to that. that, ason alluded to he needs to wait and see what september and october bring. on this program, mr. bolton managing to upset absolutely everybody. the republicans for obvious reasons, the democrats because

he did not testify. we will talk about that with kevin cirilli and washington, d.c. from new york city, good morning. alongside tom keene, i'm jonathan ferro, together with lisa abramowicz. this is "bloomberg surveillance ," live on bloomberg tv and bloomberg radio. the first word news, i'm ritika gupta. china is vowing retaliation for u.s. legislation that targets beijing for imprisoning more than one million muslims. the law requires president trump to sanction any individuals found responsible for the ighurs and other muslim groups. meanwhile, john bolton wrote that president trump asked china's xi jinping to help him win reelection by buying more u.s. farm products. an exit from the book appears in "the wall street journal," in a devastating portrayal of the

president's conduct in foreign policy. the president calls bolton "a liar," and the justice the court has asked to not let the book be public. critics mourn that legislation will threaten hong kong's unique freedom. the measure would punish acts of secession, subversion, terrorism, and collusion in hong kong. any report says the coronavirus pandemic could wipe out more wealth than the financial crisis a decade ago. according to boston consulting group, more than $16 trillion of wealth could disappear, and growth could be slowed for the next five years. the report said the biggest losers would be rich people in north america and japan. several brands with ties to slavery have apologized, and will make payments to projects supporting black and ethnic minorities, according to "the

telegraph." 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 rick. -- i'm ritika gupta. this is bloomberg. ♪

>> this is a very complicated relationship. it has gotten more comp a kid because of actions taken recently. i think we have what is an

excellent agreement in place, $370 billion worth of tariffs in addition to all of the things i've said so far. i thing it is a really good deal for the united states, and we expect it to be honored. jonathan: u.s. trade representative robert lighthizer. john bolton casting a shadow over that trade deal this morning. good morning to you all. alongside tom keene, i'm jonathan ferro, together with lisa abramowicz. this is "bloomberg surveillance ," live on bloomberg tv and bloomberg radio. in your equity market, we roll over a little bit. we are down 14 points on the s&p 500, off by around 0.4%. in the bond market, on treasuries would come in around two basis points on the 10 year -- on2%, in one neighbor the 10 year to 0.72%. on, asus in washington tom calls it, the bolton paper.

this ise house claims just a disgruntled former employee. the reviewer at "the new york times" not happy either. "the book is bloated with self-importance, even though what it mostly recounts is bolton not being able to accomplish very much. it toggles between exceedingly tedious and slightly unhinged." tom: a nice summary, there. i think you captured the moment, particularly for our global audience. this is going to be huge in america today. what we want to do is give you some clarity of thought. but this mostly comes down to is the uniquely american concept of 1798,peech, started in was really infirmed in the depression years, particularly in the midwest of minnesota and nebraska, and culminated in the pentagon papers of 49 years ago. joining us, kevin cirilli, our

chief washington correspondent. inside the beltway, free speech is a huge deal. what do you expect to see in the next 48 hours from the judge and what it will mean for the bolton papers, and what it will mean for the president? kevin: three things. first and foremost, regardless of what the judge decides, the information in the book is already ricocheting its way through the 2020 presidential election. this as john bolton's accusing president trump of trying to make a deal with president xi jinping in order to get reelected. i spoke with the communications director for the president's reelection campaign. he called it "absurd." the administration pushing back heavily, saying nothing to see here, it is false, and trying to move on. the second point i would raise, this was largely expected. the administration knew this book was going to come out and

tried to go the route of the judicial system. they are saying it is a breach of contract. that when you work in the intelligence community, you work on sensitive national security issues, you do sign nondisclosure agreements, and not in the sense of a trump organization nondisclosure agreement, but with the united states government. finally, regardless of what the judge does rule, this is a playbook that in recent years, even predating the trump administration, has really been utilized by the publishing industry to try to drum up sales for books, and that is what you are seeing on full display here. jonathan: well, we are all talking about it this morning, and i imagine every network is doing the same thing. is anyone in washington, d.c. happy about this book? kevin: i think biden's campaign is. [laughter] if you are former vice president joe biden, this is just another piece of information you can use

to try to attack the administration on. but beyond that, yesterday biden was campaigning in suburban philadelphia, and meeting with small business owners. but i spoke with several top democratic strategists who are wondering when joe biden is going to make more of an aggressive campaign pitch. when is he going to be able to really drive some news media narrative? it is a stark contrast to what you are seeing from president trump. he is going to be back on the campaign trail on saturday in tulsa, oklahoma with a massive make america great again rally. he will be flanked not just by his campaign, but by republican lawmakers. they want to reopen the economy. they want to get things back to normal, in their words. the president yesterday appearing on fox news, saying that they think the virus is going to fade away, versus what the biden world would say is a

pragmatic, but slower approach. lisa: the market actually moved lower when the headlines from the bolton book came out yesterday, in that it perhaps dampens president trump's chances of being reelected. does it? is there any momentum in the base against president trump on these allegations? kevin: i put that very question to a trump advisor within the last 24 hours, and what the advisor said was impeachment, mueller, you name it, from a practical standpoint, between now and election day, virtually no chance of there being another impeachment process between now and election day, a significant one that would be a threat for removal of office. there is virtually no chance of any type of mueller report that would come about at all. tom: right. nobody is surprised by this. very quickly, why did the president select dr. bolton?

everybody knew this was coming who knows john bolton. why did he pick him for the job originally? kevin: it is part of a coalition of national security leaders. john bolton is someone with a long history with washington, d.c. very influential in conservative intelligence circles, and was brought into the administration as a result of that. jonathan: kevin cirilli down in washington, d.c. kevin, thank you. headline from "the wall street journal," the president denying endorsing president xi's camps for muslim minorities in xinjiang, china. i think this is what is interesting from this book, how it come look its policy over the weeks and months to come, and possibly the president as well. what we saw yesterday was fascinating. what did the president do? he signed a bill protecting muslim minorities in syngenta, china.

in xinjiang,ang -- china. tom: is this the end of any discussions before the election with china? maybe that is the outcome of the salacious comments within this book. jonathan: and as we know, this was going to be one of the big focal points of this election campaign. who was hard on china, who could get the concessions. for that reason, some of the paragraphs from this book are quite damaging to that campaign. lisa: there is a question about, exactly to your point, this idea that perhaps president trump will take an even harder line with china to prove a point ahead of the election, which certainly would be a risk. at least, you look at some of the models out there that are bullish on equities. jonathan: much more still to come. equities down 16 points on the s&p 500, down around about 0.5%. in about an hour, claims data and america.

u.s. jobless just around the corner. from new york city this morning, good morning. this is 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. equity futures slightly lower, down around 12, 13 points on the s&p 500, -0.4%. in the fx market, take a look at cable. the pound against the u.s. .ollar, $1.25, -0.4% they expanded qe by 100 billion. the mostll has to be confusing monetary policy official anywhere on the planet because i struggle to get a read on him every time he speaks. he is the sole dissenter on the mpc, pushing back on that vote to expand qe at the bank of england. tom: dead on.

dead, dead on. his inconsistency is something. which way did he dissent? we don't even know, do we? jonathan: we find out now, wanted to keep it unchanged going into the august meeting. he wanted to keep it where it was. leave it there and meet again in august. tom: we will see, but jon nails that. his papers are treasured. also treasured is our max nisen. with all the charts, all of the different states, the sunbelt getting hammered. let's focus on tulsa, where the president is going to have a huge event in a couple of days. the growth of the covid virus in tulsa, oklahoma, how does that differ from the growth of the virus in queens, outside new york city, 6, 7, or eight weeks ago? max: those sort of comparisons

are a little tricky because nowhere is more dense than new york city. but what you do have in tulsa and in oklahoma is a level of community spread that was never brought under control, and now case growth and growth in the positivity rate. for every given test, you have more people turning up positive, which indicates there is a spread you are not catching. if you combine that with a large indoor rally in a population of people where wearing masks has not been modeled as good behavior by the president, and may not be fully enforced, it is a huge, indoor event, something that presents the worst possible thing you could do, you do have a significant amount of risk. what would you say to the elderly people of florida? your knowledge of this is so holistic. how would you advise that 25% of

florida that is on the edge of ancient? max: i think the best advice is to be as careful as possible in the weeks going forward. and ita out of florida, is not just combined to a couple of different outbreaks, but sprayed in multiple parts of the state, is when there is community spread, everything becomes riskier. so to the extent that people can stay home, now is a good time to do so. tom: max nisen, thank you so much. jon ferro, give us an update in the united kingdom. telegraph,"he byardian," and i am baffled the policy of the johnson government. is there one? , buthan: you are not alone the policymaker and the focus of the policymaker is in this

market at the moment. in florida, governor ron desantis saying pretty much the same thing. we are pushing forward, carrying on reopening. it is the distinction between the way governors in places like florida, texas, the prime minister and the u.k. are handling thing, as opposed to beijing. they see an increase in infections, they start shutting down. what i find fascinating about this market is there is trust that china can deal with it and deal with it in a way that doesn't hurt growth any big way, and there is completely the opposite trust in the united states, that even with an outbreak, even as we continue to reopen, it won't damage consumer confidence and will damage data -- and won't damage data. tom: we see the widely anticipated weekly claims and the continuing claims as well. jonathan ferro, lisa abramowicz, and tom keene. we are thrilled you are

participating in our simulcast. we have been humbled by the response we get. lisa gets all the love notes, jon receives no mail, and i get all the hate mail. us, bmoen is now with capital markets. for years, he's written a brilliant and concise research note on the market and how it links into our economy. what are you writing this morning? ian: good morning, and thanks for the nice words. it is nice to be here. what we are focused on is the fact that, as the point was made earlier, there's a great deal of optimism priced into the market at this point, but what we see playing out in the equity market , which is this persistent grind higher to more questionable valuations in the treasury space , we are really just trading a range that is going to be with us for a very long time. rates will be low, both in the

front end and even further up the curve. 10 year yields are at 7175 basis points, given everything going on. i expect that will become a summit -- a semipermanent feature in the treasury markets in the next few months. lisa: have bonds luster signaling power for riskier lost theirave bonds signaling power for riskier assets? ian: i would say they have taken on a less risky response. part of that is because the fed is so actively involved in the treasury market via qe. again, $80 billion a month in treasury buying is going to have an impact. the flipside of that is that the treasury department will be issuing a great deal of debt. so there is the underlying problem, the fed needs to avoid being perceived as directly

monetizing the deficit, even if the fed is directly monetizing the deficit. lisa: i am struggling to understand the battle between fundamentals, which appear pretty weak, and the fed policy, which is a bazooka and a kitchen sink, as well as a tank. i am wondering at what point fundamentals will start to matter again. at what point will be viral count in places like texas and arizona start to matter? ian: at this stage, we knew there was going to be a second wave. the health experts told us that at the beginning of the pandemic . whether we made significant or incremental strides at flattening the curve remains to be seen. the biggest risk, and i think what the market took away from ae first lockdown, was that shifting away from the covid-19

stats and more to the governor's responses i think is frankly warranted, given the fact that the most significant risk at the moment is that the pandemic it's so bad that states close businesses again. i think as we watch the numbers play out, there's also an underlying question about can we really trust the economic data, given some of the data collection issues? jonathan: there is an alternative outcome that could affect risk appetite, whether the increase of infections in some of these hot spots constrains the consumer, if consumer confidence and business confidence as well. do you expect that it will? and to could, it will, some extent, it already has. if with think about what some of the retail sales figures looked

like at the height of the pandemic, of course people were .oing to be spending less we have such a significant amount of job losses. when are these people reintegrated into the economy? what happens to consumption at that point? of bmon: ian lyngen capital markets, thank you very much for joining us. this for me is the equation. the equation has shifted over the last couple of months. several months ago, if you saw , itutbreak of infections was the story around the capital markets. this time, the equation is as follows. will the policymaker have the tolerance to keep opening, to push forward? , atultimate outcome for me

least from a market perspective, is whether or not it constrains confidence. that is a question you have asked any times over the last several weeks. lisa: i am struggling to understand how you even measure that. it is difficult to get a gauge of that when it is not as clear-cut as a full shutdown. i think we are looking at that and all of the high-frequency data taking on increasing importance. i do want to set the record , that what i get in bondsof love letters is and yield spreads. jonathan: they sound terribly private. [laughter] claims data is 50 minutes away,

and jobless claims, continuing claims. big focus of this market. tom: it's got to be a big focus. for years and years, we looked at the weekly number and the four-week moving average. i use that all the time. maybe we would population adjust it, which is a big fancy chart. great. none of that matters. it is the vector and the rate of change of continuing claims. that will be carefully scrutinized by those looking for a v-shaped form, and those are a lot more gloomier. it will be a key data point. jonathan: 8:30 eastern. for coverage here on bloomberg tv and bloomberg radio. we take you back to the airlines a just a moment. delta says it will not look -- not book middle seats through september. coming up, robert crandall, former american airlines ceo, on a bridal is in us -- on a rattled business. alongside tom keene, i'm jonathan ferro, together with

lisa abramowicz. this is "bloomberg surveillance ," live on bloomberg tv and bloomberg radio. ritika: with the first word news, i'm ritika gupta. former national security advisor john bolton has come out with a devastating portrayal of president trump's conduct in foreign policy. bolton writes that the president asked china's xi jinping to help him win reelection by buying more u.s. farm products. the president called bolton "a liar." the administration has asked a judge to stop the book's publication, but several newspapers have copies and are printing details. congress will begin debate on a police reform bill next week that would create incentive to ban the use of chokeholds. senate majority leader mitch mcconnell will need the support of some democrats for the measure to advance to the floor. a new coronavirus outbreak in beijing has been contained, according to the chinese disease control center. more than 150 cases were

discovered. that prompted beijing to shut down schools and cancel hundreds of airline flights. there's a high-level meeting in london today, just as brexit trade talks are at a crucial stage. prime minister boris johnson will meet france's president emmanuel macron, his first one-on-one with a world leader since calling for fresh moment, and those trade negotiations. the u.k. needs a trade deal with the eu to avoid economic shock when the transition period conclude that year's end. $3 trillion could shift the climate change narrative, according to the international energy agency. the new report looks at what it will take to lock in this year's drop in emissions. carbon dioxide emissions could end up falling by 14%. 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. ♪

>> are krister ball -- are krister ball is a little murkier -- our crystal ball is a little murkier than normal.

delta airlines ceo ed bloomberg a little earlier this morning. a tough road ahead for this industry. from new york city this morning, good morning. alongside tom keene, i'm jonathan ferro, together with lisa abramowicz. looking at your market this morning, with equity futures down almost 20 points, off by 0.6% on the s&p 500. taking a look at the bond market just quickly, yields are lower by three basis points on the 10 year to 0.71%. year.ub 1.50% on the 30 the dollar largely stronger against the euro by not even 0.1%. sterling is where your underperformance is, coming in by 0.4% off the back of that bank of england decision to keep rates unchanged, but to boost qe by another 100 billion sterling. tom: very good.

jon ferro, lisa abramowicz, and tom keene. what we know is ed bastion of delta will always listen to robert candle -- to robert crandall, in his 84th year. he is without a doubt the spirit of the aviation industry. he's also someone who has been brutally frank. he is iconic for telling american airlines employees they need to understand that you don't invest in airlines. you just have fun working for them. and we are thrilled that mr. crandall could join us this morning. this has been an egg jenna's exhaustion usan shock that your industry has never experienced before. how does the industry extract themselves from this pandemic? robert: i think all of the airlines have done pretty well. there is a nice recap in this morning's "journal" about what

each is doing. they are all working on trying to persuade the public that it , to take ago back trip to go see grandma or the grandkids or if they go to a business meeting. the airlines obviously want the public to feel safe flying, and they are doing their best to make that. they are cleaning the airlines, reducing the point-to-point becomingand they are increasingly insistent that people wear masks on the airplane, which i think is a very important step. they are all working hard at it. ago explained a few minutes , everyone is hoping that by the

end of the summer, people will feel safer than up to this point. jonathan: the issue is what they have to do to make the public feel safe. right now they are cap passing -- they are cap in capacity on those planes at 62%. if you have to cap capacity on those planes at 60%, what are the changes you have to make elsewhere? tom: there are a lot of decisions --robert: there are a lot of decisions you have to make elsewhere. reduce costsst and conserve cash? if you are not increasing prices dramatically, then obviously your cash flows are going to go way down, and you've got to stay in the game. you got to conserve enough cash to get through this and where

people are finally able to go back traveling. that is a very difficult thing .o do each is going to shape its response in cash conservation, according to its own balance sheet and what public mood is. lisa: there's a question, when you talk about business travel resuming, a lot of companies realizing they don't need to do the same travel they had in the past, thinking of road trips with respect to selling ipo's or even face-to-face meetings that now have to be done via zoom. how long will it take before business travel gets back up to the levels we saw last year? do you ever think it will? robert: i'm not sure. i don't think anybody is smart enough. i know i am not snarling enough -- i am not smart enough to tell

you exact we have the business community will respond to the suspension of travel we have had and the use of alternatives, like the alternative we are using this morning to talk to each other and to the public, but not be in the same place. that will come over time, reduce the cumulative amount of travel somewhat. how much is anybody's guess. but i think it will be a long time before the airlines see as much business travel as they saw in the pre-covid days of late 2020. late 2019, early 2020. jonathan: bob crandall there, former american airlines ceo. just a snapshot into the some of the tough decisions this industry has to make to survive. an industry in survival mode

over the last several months. robert: you really wonder, after what we have seen with lufthansa, and with ryan and british air, will there be a more direct government subsidy to these airlines just to get to the other side? the jury is really out on that. jonathan: possibly for some of them. you and i have reflected on some of them, that this industry is a snapshot for the broader market. we are focused on sequential, month on month growth, but not the limits of that growth and what a low capacity growth is going to mean over the medium-term. i understand for markets in the short term, the bounce coming out of the lockdown. but below capacity has got to be something that we all think about a whole lot more. tom: and i would go back to something that i think has been underreported this week, which is the reaffirmation of hsbc to and i a few people,

wonder, going into the normal year-end and pre-bonus thinking, what will be greater global banking business do, just as one proxy of what we are seeing abruptly in the aviation business. jonathan:jonathan: more broadly for the labor market. you've talked about the second wave of job cuts that could be coming in the next several months as we wait for that data and america, 35 minutes away. lisa: the question i have, what is going to be the bridge to get us to the other side? what is the other side going to look like? these job cut numbers don't speak to the composition and how much that is changing, how many people have to be retrained or think of new careers heading out of the pandemic. jonathan: the bridge to the other side with the debt market. the other side has a lot of debt in it. i think we can all confirm that. good morning to you all. alongside tom keene, i'm jonathan ferro, together with lisa abramowicz. we count you down to the economic data in america, 34

minutes away. equity futures rollover, down 0.8% at -25 points. from new york, this is "bloomberg surveillance." ♪

>> as businesses, as consumers, we have to make decisions knowing that there is this deadly disease swirling around out there. >> these kind of aggressive policies do lead to misallocation's of capital. >> i think it is important for the credibility of policymakers to follow through on the commitments they've made. >> this is "bloomberg surveillance" with tom keene, jonathan ferro, and lisa abramowicz. tom: good morning, everyone. our simulcast on bloomberg radio and bloomberg television. thank you for joining us, particularly those of you still sequestered at your homes. we