its job. it's gotten rid of dislocations for markets and it's gotten barring costs to incredibly low levels, so there really isn't more they can do right now. >> if the market is ok with the inflation rate running above 2%, so is the fed. if the bond market sells off hard on that news, the fed will be forced to change. >> some people feel very comfortable where we are. from a covid perspective, i think it winds up sitting in savings at this point. >> this is "bloomberg surveillance" with tom keene, jonathan ferro, and lisa abramowicz. jonathan: for our audience worldwide, good morning. this is "bloomberg surveillance ." alongside tom keene and lisa abramowicz, i'm jonathan ferro. tom keene, the smell of risk aversion on a thursday morning. equities lower, bonds bid, the dollar stronger. tom: following from what we saw yesterday at the fed meeting, there is no question fairchild

changed -- no question chair powell changed this market. with the claims today really driving forward that conversation is the real yield, the inflation-adjusted yield through 2012 levels. it shows not the gloom, or this word dour used by the fed, but this readjustment going on. jonathan: the data coming at 8:30 eastern. you've got to believe the gdp print is for economic historians and the jobless claims for this market. lisa: that's exact where i was going to go. we will get the gdp report, the worst in history, and it really is history. no one is going to pay attention to that from a market perspective. jobless claims expected to increase. interesting to watch that. also today, very much in focus is tech earnings. , and apple.azon also today cost stimulus talks are continuing today.

we also have nancy pelosi down there after mark meadows, chief of staff or president trump, said yesterday they are nowhere close to a deal. . the $600 on them limit benefit runs out tomorrow. jonathan: talks going nowhere. it is not even funny. let's get to the price i can -- the price action in the equity market. in the bond market, yields lower, down on the 10 year to 0.56%. in the fx market, the euro had a little taste of dollar $.18 -- of $1.18 yesterday. cable, what is the pound doing stronger when you see the dollar stronger broad-based? this is a mystery for me. the pound has been leading the pack when we've had dollar weakness, and outperforming when we've got dollar strength. cable through one dollar $.30 -- through $1.30. tom: the tenor here is extraordinary.

i overlay that with the gdp statistics. we've got to stop and make clear for our american audience we count gdp here differently than you people do over there. like -8% or -9% over there. did i do that right? jonathan: dare i say we do with the right way, and i think the way you do it here is a little bit misleading. when we get that annualized gdp print at 8:30, basically what it means is -10%. i don't know why we annualized this figure in america. it doesn't make sense to me. tom: i brought this up with chairman greenspan, and i was shown the greenspanian door. [laughter] jonathan: i imagine you were. equities down 34 on the us, off by a little more -- on the s&p, off by a little more than 1%. he has been a bull throughout this bull market, ben laidler.

what does consolidation mean for you right now? plus after it, to be fair, but i would hope we get consolidation, and markets are essentially where they were at the beginning of june. i think bigger picture, we have been consolidating. i think that is a very healthy thing. this market has rallied 40%. it is not going to head to the moon. we are 23 times forward earnings already. allow earnings to recover here, or expectations to begin to recover, which i think is happening in second earnings i think we are very well supported with the growth recovery outlook where it is, and i think there are a number it ises of their, whether the fiscal stimulus out of congress, the stabilization we are seeing in virus cases, whatever it is. so broadly, i think that is healthy, but all of risk remains on the upside area -- on the

upside. tom: later in the upside, they will launch the mars rover from cape canaveral. that is all about innovation. going up six months, six years, can this be extended beyond innovative technology companies? ben: i think the story of this rally is exactly that. 2/3 of the market, earnings are ok, down 10% to 15%. deep cyclicals and financials where earnings are being vaporized. it is the accelerating tech adoption. we got a taste of that in congressional testimony yesterday. i think the foundation of this , broadly been tech defined. businessesd is are doing very well here.

i disagree with those who think we are in some sort of a bull here. i have no problem with a lot of these valuations. lisa: you said one potential upside surprise would be more fiscal stimulus, and yet, we are headed into tomorrow's deadline for the $600 enhanced an employment benefit with no deal on site, and yet it seems like markets are taking this in stride because they priced an extension of the effects. -- of these benefits. what is the upside surprise? ben: i think we get a $2 trillion deal rather than a $1 trillion deal. i think everybody agrees we need something. i think there's quite a lot of agreement on some of the packages we need. i think politically, we have the election coming up, which is putting pressure on everybody to do something, and now relative to three months ago, i think the virus issues are much more on the red states than the blue states.

i think when all is said and have a bigger deal than maybe people think right now. jonathan: they might say the balance of risk is tilted to the downside. when i speak to you, i hear the balance of risk is tilted to the upside. why is that the case for you? what has been fascinating about the last month or so if you have this huge spike in virus cases in the u.s., and the data has been incredibly resilient. you have seen that globally as well. i think that really speaks to the fact that people are getting on with their lives, people are adapting. death rate has been coming down. we are getting better at managing this. i think that has been a huge takeaway. now we are beginning to see tentatively, those u.s. virus cases on a rolling basis begin to come down. if that is true, i think more resilience to this recovery then

maybe people think. jonathan: yesterday from the chairman of the federal reserve, i thought it was really interesting that you are to say anything with conviction about the degree to which he thought this recovery had slowed down. he declined the opportunity to say a couple of times i thought he would be teeing up the next move from the fed. clear, chairman powell was stunning in his dovishness and the way he linked over to the urgency of fiscal stimulus. he didn't give a point figure on gdp, but he made clear this is virus specific. jonathan: at 8:30 eastern, we will be getting jobless claims data that shows the pace of this recovery is slowing. that is what everybody expects. if we get something better than that, fantastic area but if we get most people expect, what does it mean for you? ben: your labor market is

absolutely stalling, and that is not a good thing. that piled pressure on congress to come to a deal, as does this historic dp number come eight think we are going to sort of ignore because the data has told us we have some sort of recovery going on. i think you take those two things together and it piled pressure on for more fiscal stimulus. again, i think the message from the near term data is this is a stabilization. we are not rolling over yet. the tentative virus data we are seeing, i think this is a stabilization which may begin to re-accelerate. obviously not at the degree we have seen, given that we have ,ome from a total lockdown but i think the incremental data is going to remain positive, and i think that is supportive for washington. lisa: from a market perspective, is it much simpler? is it all about yields at record

lows, 10 year yields heading south? the idea with the valuations for stocks still look good? ben: i think that is a huge component here. fed long-term gdp growth forecast is 22.5 times, so that gives you an idea of the level of support here. pe is 140ond yield times. that trade is alive and well, and i think it is a real anchor to valuations while we wait for earnings to begin to recover, and i think we are seeing that in second quarter. earnings revision ratios have turned up, and i think we just need to give that a bit more time. jonathan: ben laidler there of tower hudson. big day for big tech earnings. we will hit to washington, d.c. to catch and with -- to check in with kevin cirilli in just a

moment. can we talk about mark zuckerberg getting right to it? do you are member the mark zuckerberg we used to go to school with? they would just let it all out and throw everyone under the bus. that was mark zuckerberg yesterday and these hearing. tom: first of all, they are all dressed like you. they have the skinny tie and they are on their best behavior, unlike you. what was amazing is that each guy is different and how each story is different. clearly making the news yesterday is jeff bezos was basically invisible for the first hour. jonathan: he did a good job of staying invisible, i've got to say. good luck. you don't succeed very often at all. coming up, we will catch up with kevin cirilli. up later, the former r.b.i. governor, now from the chicago

school of business. bloomberg radio, seen on bloomberg tv, this is "bloomberg surveillance." ritika: with the first word news, i'm riddick a good -- i'm ritika gupta. the trump administration and congressional democrats close to an agreement. they are under pressure because of millions of americans that will lose their supplemental unemployment insurance this week. white house chief of staff mark meadows sees little chance for a stopgap azure that will extend -- stopgap measure that would extend those benefits. the number of americans killed the coronavirus has gone over wondered 50,000. has gone over 150,000. out how bad to find the u.s. economy got in the second quarter. gdp figures are out at 8:30 a.m. new york time.

consumer spending ground to a halt in april because of coronavirus lockdown. germany's economy plunged into a record slump in the second quarter. output fell 10.1%, the most since germany went to quarterly gd reports -- quarterly gdp reports in 1970. recent indicators signal that growth has returned, but unemployment remains high. ab inbev sold more beer than expected in the second quarter, despite the coronavirus lockdown. the parent of budweiser returned to growth in june after crashing by about 1/3 earlier in the quarter. investments in digital marketing and e-commerce paid off. 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. ♪

♪ >> our fear is that the labor economy is going to start to stall, and we realize that the , there's parts of the

economy that cannot get back to normal. jonathan: will we see that in the data this morning? that was pre-a miserable -- that was priya misra of td securities. by 0.9%.down 30, off some risk aversion this morning. you see it revoked it in bonds. yields headed south on the u.s. 10 year. on euro-dollar yesterday, a bit of strength. tom: the two-year yield just out 3221. for those of you on bloomberg radio, i put it out on twitter. i will get to it again today. the markets are speaking. yesterday, chairman powell spoke as well. they are both saying the same thing, stimulus now. joining us, our chief stimulus

correspondent, kevin cirilli in washington. tuesday, waste of time. wednesday, waste of time. when do the adults step into the room and startup revising? -- start compromising? kevin: likely within the next 48 hours. they are still worlds apart in terms of where negotiations are. secretary steven managing is tasked with trying to get some kind of deal with speaker pelosi, as well as chief of staff mark meadows. behind the scenes, i am told that on the issue of providing aid to state and local governments, that could be a potential area for there to be some compromise over the next 48 hours. tom: an ancient question. i lived it as a kid. you are going to live it right now. mars, fund rovers to helicopters to mars. why can't we fund with no jobs? kevin: i think in terms of where the ideological debate here is

that republicans would make the case that they want to incentivize every american worker who is able to be able to have a job. i think from the structural standpoint as we head into the fourth order, and those horrific gdp estimates coming out for the numbers in the second quarter, that a lot of the tax credit debate now is also being had in the democratic party, between aggressive's and centrists, -- between progressives and centrists. medium and small sized companies want to keep employees on their payroll. that is where, when i spoke to republicans yesterday, they feel they could cough democrat support -- they could pick off democratic support. jonathan: the president comes across as very relaxed. he said yesterday, we will work out the things we have to on evictions so people don't get evicted, on payments to the people, and all the rest of it. he is relaxed about this.

i wonder when we start to hear some urgency. kevin: i think in washington, this is the strategy that was decade, over the past and is really an illustration of era,cconnell and pelosi even dating back to the obama years, in the sense that they create these cliffs in order to really create a sense of urgency, even if it is a false one. i think the president, from his perspective, is looking at the deadlines that have been set, friday and august recess. from that vantage point, things are moving according to plan. however, obviously, for millions of americans, it is not moving fast enough. jonathan: --lisa: yesterday, mark meadows saying they are nowhere close to a deal, and yet all of these political reasons are there for them to get something through. what is the sticking point? who are the main holdouts? what are the main issues?

kevin: number one, the price tag. secondly, the unemployment benefits. republicans don't want to put out for unemployment benefits. they want to incentivize people to get back to work. democrats obviously feel strongly. thirdly, it is funding for state and local governments. conservative states are looking at some of these cities, some progressive states, and saying, why should they be on the hook to balance another states budget. that is a very big sticking point. at the end of the day, it is remarkable to see how many of these people who are in the negotiations have been here before with regards to government shutdowns, with regards to raising the debt limit. i think that they are treating this particular moment as equal to that, but quite frankly, it is not the same at all in terms of the urgency outside the beltway. jonathan: you told us to watch

senator thune. he spoke yesterday and mentioned plan b. first time i heard plan b in the past week. what is plan b? kevin: plan b is to raise how much more money they are willing to spend, but also continue to take some piecemeal approaches to kick the can down the road. i think a short-term type of expansion -- short-term type of extension could be on the horizon. tom: i will be fascinated to see that. the richmond fed says do it now. these guys are esteemed conservative voices in their own way. how come the conservative fromts are so far apart the conservative theology of the republican party? kevin: elections. we are living in the perpetual election cycle where even november 3 and 90 plus days is right around the corner, but people are playing a longer game

than that. you don't have to have a harvard degree or ivy league agree to know how much people are hurting right now. forget about the elections for a second. i thing it is the pressure coming from the constituents that is really going to push people to follow senator thune. jonathan: kevin, great to catch up with you, as always. here's a stat for you, tom. 14 million, the amount of people who are in work in february who are now out of a job. we keep doing these payroll reports the last couple of months. the administration will do a victory lap. 14 million. there's no victory lap right now. there needs to be more assistance to address this economy. to thewould go lieutenant governor of the empire state. she framed buffalo at 16% unemployment, and a working number in her head of 20%. how many buffalos are out there? jonathan: states can't act counter cyclically.

the federal government can. the rates will have to respond per cyclically if they can't get the aid. that means job cuts. that means state-level austerity. it is coming if they don't do anything. tom: correct me if i am wrong, but help me out here. i don't believe there is any local or state funding in this bill. , right? right -- am i mi right? jonathan: we are having a serious conversation and you are concerned about the mars lunch. tom: it is a big deal for science! good morning, jet propulsion lab. jonathan: good morning to you all. coming up on this program, michelle meyer of b of a securities. struggling to keep it together. nu equity market, down 31 on the s&p 500, down 1%. outside of that, some risk aversion. very focused on the front end of

the curve, and the dollar, after a weaker dollar for much of this month. dollar strength making a comeback this thursday morning. this is bloomberg. ♪

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♪ jonathan: the economic data dump is 60 minutes away. from new york, this is "bloomberg surveillance." alongside tom keene and lisa abramowicz, i'm jonathan ferro. action 60 price minutes away from the data, two hours away from the opening bell. equity futures down 1%, taking a bite out of yesterday's gains. risk aversion reflected cross asset. the euro weaker, the dollar stronger against most in the g10. very focused on the anchored front end. tothe 10 year, we come in 0.55%. tom: the two-year really coming in off of chairman powell yesterday, and further deterioration. 0.211.ld now has had aeyer

wonderful career at bank of america securities, head of u.s. economics now. some fancy pants questions for you. i have a basic weston that came yesterday out of nbc news at the powell press conference, which was the separation of america into two societies. s,ere are the new have which are going through this pandemic. they are at home. everything is fine. and there is a whole other america flat on its back. in the chairman took the bait. he answered the question. tell us about this separation right now in america. michelle: i think it was a great question that david asked, and i am glad to see that fed chair powell did respond to it. i thicket is important, the fact that we have seen this widening income inequality. it comes up in nearly every speech chair powell has given. even before covid-19, it was critical to their fed listens

events, the idea that we want a broader recovery, we want to control further wealth and inequality. when youortant because have income inequality or wealth inequality, you are not getting as strong and aberg -- strong and aggregate spend if you can. when you have a lower income population which tends to be more budget constrained, tends to spend what they are and, it is filtered into the economy more and multiplies, and that is a lot more favorable. this crisis has unfortunately hit the lower income population, particularly those working in leisure and hospitality area that sector lost almost half of their jobs as a result of covid. butas been coming back, there's still millions of workers in that population that are out of work and looking. jonathan: eugenics or medicine

job describing what this recovery will look like. a fall off the cliff, a bounce off the trampoline, and they climb up the road. can you explain to our audience what you think that will look like? michelle: that's exactly right. now the hard or comes. i think it is going to be a lot more wobbly. , youu make some progress hit a stumbling block. you pause for a bit. maybe the economy falls back slightly. i don't think it is a w shaped trajectory. it is not going to be a downturn again, unless there is something more significant that happened in terms of the path of covid. but from here on, i think it is absolutely tickle how consider -- absolutely critical how can -- how the consumer evolves. we are at a critical point when thinking about fiscal policy and how targeted the stimulus may or may not be in terms of reaching

that population that has a higher tendency to spin that any -- that money. jonathan: there's an elephant sitting on the front end of the yield curve, and it is called the federal reserve and the two-year yield breaking down. tom: this is fascinating. i go back to hunt brothers silver. there's a point where the market starts telling institutions what to do. is there enough power out there for markets to tell the fed what to do? michelle: well, it is a tricky question because in a way, markets clearly influence monetary policy because monetary policy and the federal reserve will radiance to conditions. think about everything the fed is trying to do in terms of their policies, the commitment to low interest rate, their support for the flow of credit. see their success by determining how financial markets evolve.

it is kind of that calibration in a way. markets right now are -- jonathan: seems we've got a problem with michelle meyer's connection. there with us as we try to reestablish that line quickly. looking at the front end breaking down, 0.20%. i think lisa mentioned earlier five-year space on the treasury curve. this is getting interesting. lower for longer is something we are told repeatedly. this market is listening. it is taking the policy rate and pushing it along the curve. lisa: and how was that going to help employment? i think that is one of the questions, with the doing everything they can gridlock in washington. jonathan: let's bring michelle back into the conversation. what are they achieving if they do more? do continue to have a problem with michelle meyer. we are going to have to let you go. michelle meyer thereof bank of america readies. lisa poses a really important

question. we talked about it yesterday, the diminishing marginal return of that additional dollar stimulus. tom: absolutely. jonathan: that is particularly important on the monetary policy side. tom: it really is. you get into the fancy language, the gamma where you start to get accelerated trends. i was taken back yesterday at how the chairman, he's got to be cent, but you got to wonder what the phd's at the fed are doing. my eyes are failing me. -.98, -.97.re at you get a one handle on the 10 year tip, you will have to extended real yield out to a full program. jonathan: we are working on it, and you know that, so that is why you brought it up. so i am going to ignore you. about this yesterday.

i thought he would've had more to say about forward guide you just think about that. i had of september, i didn't think we would get the forward guidance. i just thought would get the tees that we are shifting towards a world where it might something well south of what we considered less time around. last time they did this at the back end of 2012, the introduce forward guide and basically said rates go nowhere, at least until we go through 6.5% on the end up limit rate. alice makers are conditioned by experience. the last 10 years has told them they can allow the enemy meant rate to go whole lot lower. as we go into august and wait for the virtual jackson hole, and we get set up for that september meeting, that is what i want to know. how low does the unemployment threshold go? ago.it seems ages

what. is the high-frequency data? what do we see with this claims number? to me, that gets you to your forward guidance analysis quicker than anything. pace of the pickup is slowing down in some areas. stolid -- it is stalling. second thing i was surprised about yesterday was fact that he didn't have any strong convictions about the degree to which this economy had slowed down. when the data backs of a strong argument to say that it has a fair bit. lisa: he was very clear, we are going to give it all that we've got. i still don't understand what their ammunition is, especially aswe get an quarter earning company after company and ounces layoff. jonathan: bloomberg's michael mckee is with us now. walk us what through -- walk us through what we can expect at 8:30. michael: it is going to be

historic. we are expecting a 34.5% annualized drop in gdp. if we see gdp drop, that would be about a 10% drop in the non-annualized numbers, so the economy contracted by about 10% in the second quarter. that is what happened in germany overnight. they had a 2.1% -- a 10 point since contract. that is already priced in -- a 10.1% contraction. it is already priced in. initial jobless claims, do they continue to rise? idea jayalidate the powell was talking about, that we see a slowdown in the economy ? the forecast is for about another 40,000 jobless claims increase. does chairman powell have the presidents back? senate,timulus is about

about the house. but did he give them courage to ush forward a stimulus larger? michael: he was probably speaking to everyone in washington they are negotiating. the real issue is in the republican party on capitol hill. the president is on the side of doing as much as possible. they would like to get as big stimulus they can because they would like to be growing again by the time he's voted on for a second term. you've got to look to the numbers of congress, and there is some hope at the fed and other places that if you get a really terrible gdp number, that would help push things along. jonathan: can you talk to the --lisa: can you talk to the tu n churn, and where the decline is coming. be ael: it is beginning to

mix. i think a lot of people think has happened is we saved a lot of jobs with program, but that money is starting to run out. so as more companies start to come back and i doubt they make it because they are no longer companies whother don't have ppp money anymore and can't stay open even if they think they can make, you get a combination of that leading to layoffs. at the same time, you have personal services types of that shut down and places, restaurants and bars, things like that. jonathan: looking forward to catching up. michael mckee, bloomberg's very own and our finest on this economy. coming up on this program, and -- this program, kk and partners executive director. a massive afternoon for the earnings. nasdaqs, 0.3% for the

100. from new york city, heard on bloomberg radio, seen on tv, this is "bloomberg surveillance ." ritika: the trump administration and congressional democrats are no closer to a compromise on a virus relief land. the pressure to act is doing. enhanced unemployment insurance for millions is running out this week. white house chief of staff mark does these little chance of a stop deal that would cover only those jobless benefits. there's an agreement for federal agents to leave portland. there is a disagreement about when. they willrown says begin leaving today come about acting homeland security wolf says there will be no pullout until it is clear local law enforcement can prevent violence at the federal courthouse. supreme court justice ruth bader ginsburg is in a new york city hospital.

she's undergone a minimally invasive procedure to address an issue with a stent in a bile duct. she was hospitalized earlier this month to clean out a stent. --sburg recently did shou recently disclosed she was diagnosed with a fifth bout of cancer. -- did not comply with come prior that's with requirement. the move came out after hong -- for making online comments that allegedly violated the law. shares of ubs are rising -- of ups are rising. ups says results are driven in part by the demand that emerged from the coronavirus pandemic. 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.

gupta.ika this is bloomberg. ♪

>> we sold only our inventory. it was a very controversial

decision inside the company to invite others. >> we have seen vigorous competition. >> we don't have a dominant share in any market or in any product category where we do business. >> history shows that if we don't keep innovating, someone will replace every company here today. jonathan: you get the message. we are not dominant. we face competitive forces. alongside tom keene and lisa abramowicz, i'm jonathan ferro. my new approach to questions i don't like, i disagree with that characterization. i will get my office to get back two years. can you imagine spending thousands of dollars for pr training just for that one line? tom: how many people do you think were involved yesterday justin picking up the color of the ties? jonathan: i think thousands. i would love to know how any people were sitting around those individuals in those offices, giving them the nod and hand signals. tom: we could beat it to death, but let's not do that because we've got to get to this afternoon, where they will

reaffirm revenue generation and the ability to generate free cash flow. our guest joins us right now. what are we going to see from these earnings, and particularly given the pandemic, what will we see in revenue dynamics? >> thank you for having me. i think out of the big tech execs would be received that they got to do this before their earnings. i wouldn't like to be in their shoes, to be seen as profiteering from the pandemic and having to undergo questions after earnings. that is what i expect from all three names, amazon, google, and facebook. expectations are high, and all would have upside. they should have higher level of profits. they should highlight how the

recovery looks like. parts,tock has moving but i feel amazon has the highest level of upside, followed by facebook, followed by google. the stocks do after that, we can talk about that. jonathan: i heard a lot of great lines from some of these politicians. i didn't hear much that would make me worried about these comedies being forced to transform. did you -- these companies being forced to transform. did you? ofit: they had a lot interesting anecdotes, so on and so forth, but i think from a fundamental change in the business model, what we learned and what we actually learned new, it was just another day in 2020. jonathan: well, let's be clear, another day in 2020 is not a good. [laughter]

rohit: what i would say is another day in the lives of these businesses that continue to grow and take share from other businesses. tom: some of this is the engineering of the moment. what you are seeing right now is from the jet propulsion lab of the extraordinary follow-on to curiosity and mars. this is perseverance, the rover with a brand-new fabled helicopter ingenuity, which will go to mars. this is extraordinary. it will take seven months to get there, not three days like to the moon. they've got to get the optimal path with the least amount of energy, and they do this after smashing success of curiosity. comes down toally the engineering of america. this toy, this rover, has 13 computers on board. what did silicon valley do, what did our nation do to get that

computer edge? rohit: while i would love to geek out on space tech, it is hard to comment on that. we can talk on big tech in their earnings. jonathan: i think tom speaks to innovation in america, and what these big tech ceos are trying to push his take tech in america. the word china came up again and again from the likes of mark zuckerberg and jeff bezos. do using that resonated with congress? two big, hot button issues, big tech and what we should do about it, and the chinese communist party and what we should do about it. rohit: i think they are trying to conflate the two. ,n terms of direct does this facebook does not have many

direct ties into at the chinese communist party does on a day-to-day basis. amazon has exposure to china, but i think they were trying to do the smart thing of trying to conflate these two things and bring in more political say into the conversation. but from a business standpoint, there is no direct impact, positive or negative. that is already in the past. any new regulations, any new hurdles that u.s. regulators bring on chinese companies could be only a positive for these big tech companies. lisa: in the spirit of innovation, as we watch this rocket, i would love your sense of where the innovation in amazon really is that will continue to add their profitability. is it now a cloud company and not a retail company? is that what analysts are looking for in earnings today? rohit: exactly. i'm surprised there was not a lot of discussion on the cloud

aspect. that is 40% of the market cap of the company today, in my opinion. as we look ahead, i think that is where the more innovation lies. what amazon is doing with machine learning and ai, and how that could shape innovation in times to come. they are competing against microsoft azure and google on the google cloud. share,has higher market so what microsoft said on the call implies what amazon is going to say on the call. tailwind thats a amazon will benefit from for many years to come. tom: rohit, thank you so much. if you are just joining us, for radio, we are looking at images of the extraordinary engineering of nasa, the jet propulsion lab. this goes back to the heritage of ranger and surveyor of a few years back.

i'm kidding, many decades ago. this comes off of the curiosity, which was exceptionally successful, far beyond anybody's fondest hopes. this is perseverance, with 19 cameras, 13 computers. jon, there's a helicopter much like a surveillance helicopter to fly with a 900 eaters were so -- within 900 meters or so of the crater. jonathan: i imagine the helicopter is a little different to the one you dream about, but you live this as a child. the space race 2020 is now a state-private partnership. what do you make of that shift? tom: a very different shift, really going from experiment to experiment. there have been some stumbles. everybody understands it is needed, and you don't need the cold war catalyst you had in the 1960's. this mission is very much a

nasa/jpl mission out of the institute of technology. seven months to mars. jonathan: from new york city, this is bloomberg. >> right there, a beautiful liftoff.

>> the fed has pretty much done its job. it has gotten rid of dislocations for markets and has gotten borrowing costs to incredibly low levels. there isn't much more the fed can do right now. >> if the market is ok with the inflation rate running above 2%, so is the fed. if the bond market sells off hard, the fed will be forced to change. >> from a covid perspective, i think it probably wants of sitting in savings at this point. >> this is "bloomberg surveillance" with tom keene, jonathan ferro, and lisa abramowicz. tom:d