>> what we are getting now is evidence that the recovery is leveling off. >> i don't think it is a w shaped trajectory. it is not going to be a downturn again. >> the global economy is healing, but there is no vigor to that economic recovery. >> we will see some investors begin to take chips off the table. you are already seeing it in the futures data. >> this is "bloomberg surveillance with tom keene, jonathan ferro, and lisa abramowicz. tom: good morning, everyone. markets on the move. gold to a new record high. we are seeing yields coming off of the recovery from yesterday. these are dynamic markets, and jon ferro, it is a dynamic

moment as we look at the labor economy of the united states. ,resident trump out front giving his strategy on the adp report to dovetail a big number for friday, with the reality of the adp report in 14 minutes. jonathan: i think we are both lost for words over this one. adp report around 15 minutes away. the estimate, positive 1.2 million. it continues with claims tomorrow and concludes with payrolls friday. the churn beneath the surface, we talked about this so many times. claims only show you one side. we will try to get the net of things friday. really unpredictable. tom: i agree, adp is a little squishy. it is likely john swann axios interview. there's a huge margin of error on the jobs report. how do you see the bond market

set up for the margin of error of friday's report? lisa: here's a question, are we already seeing a policy error with the delay of some sort of stimulus package? are people going to be trying to find other reasons to take a move? i will say the bond market right now is signaling caution and slowing growth ahead. i do wonder, the idea that a lot of companies are pushing out debt maturities 15, 20, 30 years, surging to more than $2 trillion, yields dropping to record lows, how much does that slow growth going forward? tom: yesterday, i thought jon ferro was brilliant. jack lew earlier this morning, look at that statistic on the for the 10-1.055% year real yield. jonathan: i am sending lisa some 40 year alphabet debt. she's really keen for this one. look, a message to the bubble

crew right now. i get it. using markets are totally divorced from underlying fundamentals. but i think one thing that is really missed what is happening with real yields. it is not just about what the fed is doing with its purchase programs. it is about the shift in the reaction function at the federal reserve. they have told us that even inflation, even if it picks up, rates are going nowhere. that's what the messages, and they are about to formalize that. the shift in the reaction function at the fed is really powerful, and that could mean some really big dislocations in markets, and we could get bubbles because they have shown no inclination whatsoever to if they start to see things get a little bit frothy. tom: there's no one better to speak to the and sheets of morgan stanley on the linkages of equities, bonds, currencies,

commodities. what correlations do you see in the market that give you some form of signpost to the end of the year? andrew: i think what is really fascinating is that so much of the market, as you just alluded to, is driving off of the same trade, a long-duration trade. i think that has wrapped up everything from a nasdaq to gold , even things like emerging markets, which i think were historically associated as these kind of deep cyclical asset class. but if you look at what is driving em, it is a very narrow rally driven by very large technology names, and some ways similar to what is happening in the u.s.. so there remains a doll and -- in the u.s. so there remains a dominant theme that investors are very concerned about, but optimistic

about real yields remaining low for a long time. weakens toh lira 7.03. that is a big deal. the juxtaposition here is apple and amazon to the moon versus gold to the moon. how are safe havens playing right now? andrew: i think what is actually very fascinating is the way that those real yields are following. the nominal yield is more or less stable, or just can't fall very much. the driver of those lower real interest rates has actually been inflation expectations going up, and i would consider those higher inflation expectations consistent with a better economy with a more normal recovery than the opposite. where i think that is important is if you take an asset like gold, a lot of people view it as a hedge. i am buying this because i am worried about the state of the economy, the state of the world.

but actually, the way that gold is performing is much more like a cyclical asset. it is benefiting from higher inflation expectations. it is going up when the market is going up. i think that is an important thing to keep in mind with some of these assets. they might be list of are supplying to each other than expected because of how they are performing relative to some of these factors. jonathan: are you looking to reduce risk exposure at the moment? tom: we are. --andrew: we are. we had morgan stanley have been and remain i think and out of consensus v-shaped recovery camp , but we are coming off of a very strong performance certainly through july, and we have voiced concern that august and september look like a more difficult environment. i think we are losing some of the positive catalysts we had last month. we are obviously higher in prices, leaving less upside to our price targets. even though overall, the economic momentum is still

sustainable, i worry that we see some pausing of that momentum over the next two months, especially in the u.s., where you have seen a worse kobe dynamic than our initial forecast expected. jonathan: what i find interesting is that even if the recovery slows, so long as the momentum is positive and things go in the right direction, do you thing that is sufficient for risk? why? think a couple of factors are going on. first, i think we kind of stepped back, and especially step back from the next month or so. i think big picture, we are still seeing a lot of relatively encouraging early psychodynamics in the market. you have very easy policy, week but improving data, relatively light investor positioning, a reasonable amount of investor caution. these are all characteristics that are very common during or

right after recessions. i think they ultimately mean that the recovery we are seeing is going to be sustainable. that this is not just a flash in the pan. so i think the market, i would expect to have a more challenging environment over the next couple of month, but i think stepping back from that, a sustainable recovery, is supportive policy response all arguesresponse that this will be a sustainable recovery if we look over the next six to 12 months. lisa: in the short-term, we face a lot of volatility. president trump saying this morning that a big jobs numbers coming friday. putting aside the breaking with former protocol of presidents, people in the administration not talking about jobs data before it out, i am curious about the trading activity you are seeing. yields breaking out to the upside. not much action in stock futures. how do you trade an upside surprise in labor data at this?

does it just mean higher inflation is already baked into equities? tom: i think the price action --andrew: i think the price action we are seeing this morning, the price action we saw on monday where you saw yields higher, yield curve steeper, and equity markets higher, i think that is the much healthier dynamic. that is the much more normal dynamic. we have done a lot of analysis that is all very consistent with the idea that orchids are completely fine with being , any times because those yields are rising in response to utter economic optimism, and that better economic can is -- economic optimism can offset the challenges from that discount rate. i don't see any inconsistency there, and i more abnormal environment is where we have been, where you see rising markets and really defining. i think it is much more unusual than the market often gets credit for. the dynamic we are seeing is a

much more normal, sustainable, robust dynamic for the market. lisa: this is one of the key narratives, that bond markets simply ignoring and that you would markets are going to rise on the end. at what point does the rising longer in yield lead to a selloff based on the relative value argument that people say, where there is no alternative and you have to go into risk assets? big picture, i think we are still some ways away from that given where we are in the u.s. ten-year, certainly real , ilds at -100 basis points think you have 10 basis points plus where those yields can go before you are generating any real valuation pressure. again, there's an and norma's amount of market history that if yields are rising because of economic enthusiasm, equity markets, credit markets can be

fine with that. i do think dynamic you mention could involve a major shift in leadership because the types of stocks that people are buying because they think yields will remain low for a very long time i thing are very different than they would buy if they thought the recovery was sustainable, that things might get back to normal next year. i think that would be the big story within the market this year. huge divergence, a very narrow market, and the more sustainable the recovery, the broader that should be. i think it would drive potentially major leadership shifts in the u.s. and globally. jonathan: great to catch up, sir. andrew sheets of morgan stanley. i had a payrolls friday, the president out with a headline, big job number coming up on friday. tom keene, hard to know how to read this when it is wednesday, and protocol suggests that they don't get the job number until thursday evening. tom: my people talk to your people, and we've got mike mckee

coming up, and i am sure he can give us some perspective on the appropriateness and the history of that as well. adp today is a newer number. in three minutes, we get that statistic. tomorrow's number is the hyper number, and friday is basically a snapshot of two big surveys. jonathan: the median estimate, 1.2 million. coverage continues right here on bloomberg. coming up next, senator bill cassidy, republican from louisiana. good morning. this is bloomberg. ritika: with the first word news, i'm rick. -- i'm ritika gupta. an explosion at a warehouse in beirut was felt miles away. reports are at least 100 were killed and some 4000 injured. lebanon's government says on was 3000 tons of flammable ammonium nitrate has been stored in the building since 2014, but they are not saying whether the blast

was caused by an accident or attack. it will be the highest level visit to taiwan by aqs covenant u.s.ial and's 1979 -- by a cabinet official since 1979. health and human services secretary alex azar will arrive in taipei to discuss the response to the coronavirus. taiwan's response has largely been recognized as one of the most effective in the world. in the u.k., a panel of lawmakers has issued a report that is scathing about the way prime minister boris johnson's government handled the coronavirus. it urges johnson to be more open with the british public on travel risks, and said the march lifting of restrictions on all people traveling to the u.k. was an x bookable. bloomberg -- was inexplicable. bloomberg has learned that blackstone will buy a portion of ancestry.com. global news 24 hours a day, on

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jonathan: big downside surprise on the adp payroll report, of,000, against an estimate 1.2 million.

the last number, huge revision up. this just speaks to the uncertainty, the wide range of estimates coming into friday. tom: no question about it. i see the bid taking away on the two-year yield, down just a little bit, with futures up 12. what do you think? jonathan: equity futures up 12, around about 0.3%, off session highs. the yield higher at 0.53%. i just think it is hard to take the adp report and make a read across. look at how big the downside surprise is, and how massive the upward revision is to the previous month. it just speaks to the insert still and a huge amount of -- the uncertainty still and a huge amount of churn. tom: right now, a really important conversation if you are worried about the stresses of this pandemic. louisiana has been extremely hit

with a legitimate second spike in cases and deaths. they have the correct senator to monitor his louisiana, and that is william cassidy, the republican from louisiana who long ago and far away studied medicine, and if long ago and far away supported mike dukakis. i want to speak about your louisiana state university. they want to get their football season started. they want to open their college, and yet you have a pandemic. you are the expert on this in congress. should lsu have a foot season -- a football season? sen. cassidy: they are delaying the season until september. keep in mind, this pandemic may stay with us for another year or year and a half. we are hoping vaccines become available. we don't know that. we are really asking ourselves,

are we going to put everything on hold for a year and a half, or are we going to figure out how to safely live with this and conduct our lives. we have to figure out how to safely live with it. tom: david westin will be speaking with dr. fauci here in a bit. do you support dr. fauci and dr. birx's efforts on the pandemic? sen. cassidy: yes. on the other hand, you can see that they have learned and they have gone along. i once asked active algae -- asked active algae, do we -- asked dr. fauci, do we really expect six and seven-year-olds to go a year without don't to school? he said no, they need to go back to school. lisa: right now in washington, everyone is focused on the idea of a second round of stimulus, fiscal bailout for the states

and cities that democrats want. from a republican standpoint, $600he view shifted on the enhanced unemployment benefit, based on the fact that president trump has come out in support of that? sen. cassidy: republicans in the senate understand you have to support families through this rough patch, but if you pay people a lot more not to work then to work, that is a disincentive to work, and that is negative for the person, negative for their future implement possibilities, etc. some people, dependent on the state, were making 230% or more relative to what they would have earned working. , if is not good for them you say that i am not going to work, short term decision, that's fine. statistically, the longer you are unemployed, the harder it is to reenter the workforce. lisa: senator, hold on one second.

dallas fed president robert kaplan came on and said he has heard from certain officials that this is a concern, that people aren't coming back because of how much they are getting paid on unemployment. however, there's is no data to support that, and the increase in income would offset the detraction that could be felt in the short run. is there any evidence you have seen that points to people not entering the workforce, that businesses are hampered with duly hiring people due to the enhanced on a point of benefits? sen. cassidy: sometimes things are so self-evident that you don't have to prove it. if you are paying somebody 230% more to not work, they are not going to work. by the way, that was previously written about by larry summers and left of center economists. in my home state, you will see signs, we are hiring. if you talk to employers, they will talk about job applicants that are just refusing to be interviewed. at some point, common sense has to reign.

people are going to make irrational short-term decisions. tom: why can't we compromise? you are sitting in a hospital and you've got to compromise every day with a grievously ill patient. where is the art of compromise? where did it go? sen. cassidy: right now, pelosi has said she wants her heroes act, period. when republicans and the white house say we will allow a $600 a week continuing for a week while we negotiate, she says no. when republicans say, wait a second, we will allow a $400 supplement for two months while we negotiate, she says no. . she wants her entire package, a package that mentions marijuana more than it mentions jobs. there's a lot of policy in their unrelated to covid that republicans are saying, wait, we are doing long-term policy on a short-term issue? sen. cassidy: but senator --

tom: but senator, you have taken a middle ground. you've got an interesting cross party heritage. does president trump, and frankly leader mcconnell, do they risk giving up the senate to the democrats? sen. cassidy: of course we are in a tough year. it is going to be tough on incumbents. people expect more. i think that is what pelosi is banking on. she would rather the pain beyond the unemployed so she gets her bigger package. at some point, i just remember ots.r. root -- my doctor ro we take care of the patient. we can argue about marijuana at a later point. that is my perspective. tom: thank you so much. senator cassidy there, the gentleman from louisiana. i just think the tensions here are absolutely extraordinary. as kevin cirilli said earlier, the stall has become on stalled. jonathan: the blame game is

pretty embarrassing going into the weekend and still not having an agreement. we can sit here and blame the other side. tom: well, we are not to the weekend yet. jonathan: we've got two days. these guys are talking up progress. on what? i've seen no progress whatsoever. i think we've got to see something. someone has got to come forward and accept something. mitch mcconnell has said he's ready to accept an imperfect bill. let's see what we are willing to accept. what are the redlines? we've wasted how many weeks, how many months? tom: that is a correct point, that it has really come on late. i would go to david kelly, who said, look, cut to the chase. compromise across the board. split down the middle. move on to whoever wins after the people vote. that is what shocks me. we can't just get a copper mise and move on. jonathan: why? just tragic. tom: and it is unlike the

simplicity of the united kingdom. jonathan: just get it done. equity futures up 15, 0 .5% on the s&p. from new york, this is bloomberg. ♪

jonathan: the trading week starts right now. from new york city, good morning. alongside tom keene and lisa abramowicz, i'm jonathan ferro. pretty futures drifting higher on the s&p 500. in the bond market, yields up to .54%. equity futures up 17. in the fx market, euro-dollar 1.1876. up .6%. in just a moment we will get you headlines. we wanted to start with the data. michael mckee with us. typically we can get used to missing a payrolls number by 50,000, maybe even 100,000, perhaps 33,000. 1,033,000 post covid, is this something we have to get used to? michael: it will probably be

that way for the last couple of months because this is so unprecedented. it is hard to put anything into your models. the numbers are no surprise. jobs,mes out at 167,000 the forecast was 1.2 million. we had seen it applied in the number of jobs according to the census bureau in their household survey they have been taking, and we also saw the rise in jobless claims. i don't think people in wall street are shocked. it'll be interesting to see if today's number, because it is adp rather than the government, has any effect on the negotiations in washington. if we get this kind of number on friday, that will probably have the effect of a two by four upside the head. adp has tracked that government numbers relatively closely, little bit below, but they have been in the ballpark. it is not great news. we do have the trade balance number coming in. 50.7 billion.

the maylower than number of 54.6. overall, it looks like the second quarter may not quite have been as bad. we may see revision to that going forward. the numbers are not good for the economy, but the interesting thing will be on friday. friday and claims coming up tomorrow. michael mckee, you parse adp like no one i know. today make a distinction between furlough, layoff, and all of the other phrases we use? michael: no. that is interesting thing between adp and the government. if you are on the payroll, whether you work or not, adp counts you. the furloughs or layoffs do not matter. you have to be paid to be on the government. an interesting number for adp is the biggest problem with the

medium-sized businesses, they lost 25,000 jobs. that is the category that had the most trouble getting funding. the fed main street program was for medium-sized businesses and it has not had much take up at all. $82 million. large businesses added 129,000. small businesses 63,000. the interesting question is how may people went back on payrolls and dropped off. tom: you are great leadership on how we report economics across this nation. davidtalk tweeting out -- kotok tweeting app. he has a tweet today where he says the presidents front letting employment data, larry kudlow invited to explain. we did that earlier. john's interesting relationship with lori kudlow. sad to see data assembly by true professionals being lit aside by the white house.

,f a private citizen does that an investigation follows. how unusual was the comment by the president? michael: i do not think it is that unusual. he did front run the numbers a couple years ago. the president does not get the numbers until thursday night. the numbers go to the council of economic advisors on thursday night. he does not know. tom: he does not know right now. michael: he is just making applicable statement that i expect big numbers because he has been saying that all along. lisa: i have a big number. billion, that is the number of 3, 10, and 30 year debt the u.s. treasury expects to sell. that has part of the data dump we got from the treasury department. you are seeing a reaction in the bond market. yields higher on the long end. , theis largely expected

u.s. transferring its debt to long dated maturities. is the move signaling unease among some investors about the amount of debt the u.s. is selling at a time when the dollar is weak and people are wondering about the virus. each month we will watch the options to see what kind of take-up there is. the treasury announcing on monday they will sell $947 billion, also $1 trillion of debt in just this quarter. in the treasury announcement today, there was interesting line that says that is subject to what kind of deal they make in washington on a stimulus package. it might be even more than that. do we have an unlimited appetite for debt? that'll be an interesting question to watch at this point. tom: michael mckee, thank you so much. our economics and policy correspondent. daniel ahn with us.

this as vice-chairman clara is speaking -- vice-chairman clara clarida ise-chairman speaking. they're allowing and overshoot of 2% inflation. we are so far away from that. is that a theoretical dalliance right now we cannot afford to have? we have to focus on other issues? not say it is a theoretical dalliance. there are a lot of immediate issues pressing up the economy, and therefore i think the fed has done a pretty good job of maintaining financial stability and accommodative financial conditions. in the backdrop of all of this is a fed very worried about meeting their longer-term mandates of reaching the 2% inflation target.

going into this crisis, we have a strong economy and a strong labor market. life ins not signs of inflation. this is worrying a lot of people. it will not be quite as timely they began a review and we are expecting to see the results of that by september. this will hopefully lay the groundwork for them to tackle the longer-term problems, even as they continue to deal with the immediate pandemic. jonathan: we are already seeing the results for the last 12 months. the reaction function of the fed has been shifting for a while. the next meeting, we want to understand how they formalize that shift. how do you expect that to happen? daniel: as you have said, they have already been because i implementing -- they've already implementing forward guidance. we think they will put that on a more formal basis with forward

guidance linked to a target outcome. we think that will be linked to inflation. others are proposing it be linked to other things like unemployment or national output. we think given the june minutes that there is the most support for inflation. is an explicite commitment not to raise rates until inflation averages 2% for a year. the will also contain spirit of the makeup strategy where they will allow, as richard clara just said -- rich clarida just said. to allow inflation over a certain amount to undershooting the target they have seen. jonathan: tom, you will love this one. it comes from a governor in the bank of japan. here's sure we will achieve the

2% inflation target. tom: trying to wake me. i will stop the show right now. daniel ahn, you will help me on this. marty feldstein once turned around at the white house correspondents dinner and said to me, they just blew it. it took so many years for japan to understand this. japan has been doing this for 20 years. are we going to do it for 20 years? daniel: that is a very big worry, whether japanification is coming to the u.s. and whether the pandemic has accelerated that process. to aed that question former new york fed president in a recent event, and he was skeptical, but i think there is that of concern

deflationary pressure. we will let you go. daniel ahn. i'm not sure if that was his fault or ours. tom: that was me, tom keene. that was me on tictoc. so sorry. that will never happen again. jonathan: i will take responsibility, too. tom: that headline -- jonathan: that headline. if you keep saying it and he did not make it, you will start to hit your credibility. tom: credit suisse had the best software for years. they show the perp at the certitude of higher interest rates. it was always the small wisp of hope. now six months and a year. now we are at three years instead of six months but we are still hoping. every time i see the word hope in literature i circle it because it is a great way to lose money.

jonathan: just because you say you're going to do it and say you will tolerate inflation, does that happen? remember janet yellen used to say we could run the labor market hot. just because she said she would does not mean it would happen. tom: i think olivia blanche are -- i will give great credit to professor blanchard at peterson institute who has led the dialogue. if you really want to jumpstart it, you really have to act. i do not see that commitment by any of the central banks other than the hope and prayers you are talking about. jonathan: let's get the price action. s&p 500 futures up 19. , yieldsond market higher at the long end. up to five basis points on the 30 year to 1.24. on the 10 year, up about four basis points. market, euro breaking

out. 1.1865. on track for 1.19 again. from new york, alongside tom keene and lisa abramowicz, i am jonathan ferro. a beautiful one in new york after yesterday's ugliness. this is bloomberg. ritika: with first word news, i am ritika gupta. the pictures are shopping and so is the aftermath. in beirut that explosion is blamed for at least 100 deaths and some 4000 injuries. rescue workers are looking for survivors today. lebanon's government says more than 2700 times of flammable and ammonium nitrate had been stored in the warehouse for six years without safety measures. white house and democratic negotiators are trying to reach a deal on a stimulus package by the end of the week. they are under pressure to act. millions of unemployed americans just blah supplemental jobless benefits.

nancy pelosi and chuck schumer are playing hardball. they have dismissed former proposals are the white house. there was promising news for some of the states hardest hit by the coronavirus in recent weeks. california reported its fewest new cases since june. florida and arizona also sought their infection slow. governors a groups of has joined together by millions of tests. bloomberg has learned the u.s. and china plans to review the phase one trade deal this month. that comes in the midst of rising tensions between the countries. china has fallen behind on its commitment to buy more american farm and energy products. still, robert lighthizer says there have been significant purchases in recent weeks. another european carmaker is reporting a big hit the coronavirus. bmw's automotive division posted a 1.8 billion dollars lost in the second quarter. the pandemic forced factories around the world to close for

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>> we have engineers from all over the world, including china. careful aboutery its stated promises, and we will

have -- we will try to have a strong relationship globally, but we will not do things that are viewed as hostile. jonathan: bill gates with a fantastic example of saying something without saying anything about microsoft. tom: nailed it. jonathan: isn't that true? pro.he is a in defense of emily chang he is in a tough position. he is sort of emeritus but sort of not. he probably knows too much. jonathan: it will not say anything. dan ives of wedbush catching up with me in about 30 minutes. i will then catch up with jerome schneider of pimco. looking forward to the conversation about an hour from now. tom: that will be important. jerome schneider truly expert in the short term paper space. we will do what we have not done. we have looked at the stimulus and all the different news. the perfect tragedy in beirut. tiktok and idea of

microsoft. with aindlain joins us broader view on where the industry is going. sarah, let me start with a million dollar question. there is a lot of angst about china, huawei, tictoc, and many more. is it justified. do we have evidence they're playing with our software? sarah: that is a very fair question. a historyy have seen in the past of chinese corruption, the supply chain issues, and we have a long-standing issue with piracy in china as well. what we are seeing in this particular situation where we is theking about tiktok government perspective is that tok is built

using a series of algorithms that leverages the data users are uploading, that they can acquire their data for potentially nefarious purposes. facial recognition, you are giving them access to your camera, you're giving them access to your microphone, location trapping, and search history tracking. we have a history of concerns with data privacy, software usage, software piracy with the chinese government, and there are some legitimate reasons for the u.s. government to be concerned about u.s. consumer data usage, especially given the escalating tensions with china occurring right now. lisa: certainly there is a geopolitical issue and this is something president trump has talked about, and there'll be discussions on going. then there is a business element. microsoft saying it is interested in purchasing the u.s. arm of tiktok.

axios reporting apple was getting in on it. apple rebutted that. applewood or buy should get involved -- apple would get involved or should get involved? sarah: i think every single major technology player, at this point in time where there's a forced scale of an asset -- forced sale of an asset scaling with a billion dollars of revenue, with 50% of u.s. teenagers on the application should call the bank and ask to be engaged in a conversation or at least understand the dynamics of the deal flow with regards to the forced sale of tiktok. i believe most tech companies should take a look at the asset, but it is my opinion microsoft would be the most viable buyer given its history of extraordinary performance with its recent acquisition,

including linkedin. lisa: what is the price you think would be adequate for tiktok? sarah: i think it will be something north of $25 billion. it is a stressed sale. 25 time sales is a large multiple, but not out of the ballpark of where microsoft has paid in the past. it harkens back to what facebook did in 2014 with whatsapp, throwing down $18 billion on a company pre-monetization. tom: one final question. what is your favorite effort with the moonshot we have seen in technology? can you still be enthusiastic about security? sarah: absolutely. i think there is a reason to look at the software sector and say, listen, this is the sector enabling work from home. this is the sector enabling school from home. business continuity planning will continue to remain very dependent on ongoing cloud usage, security, and all kinds

of other important features technology is bringing. yes, the sector is rich, but that is driven by this l and monetaryca environment we are living in today. i happen to like microsoft. i think is a compelling buy. i also like surf and think it is a powerful asset. hindlain, thank you so much. now, and this is interesting. it is another vaccine headline. i know nobody cares because it is not here yet, but it is a johnson & johnson company. technologies,ssen they have a technology they have worked on with hiv and ebola and others called ad vector

technology. they are so enthusiastic they announced a joint agreement with the government to come out with a nonprofit vaccine involving massive scope and scale. 100 million doses of this experimental covid-19 vaccine. they have come into an agreement with united states. what i find interesting is this is the same time we learned from cvs ceo that- the they have talked with president trump about the vaccine rollout, which tells me how much the government is laying the groundwork for a distribution rollout. who gets at first, how to get the vaccine to the massive number of people? we are looking at which companies may be the most involved. tom: one of the challenges is doing this every day, people have no understanding of the complexity of the founding of these vaccines and their manufacture and distribution.

in a statement from j&j is something -- maybe this is one path to a better 2021. we have so much more today. coming up later, driving forward ucis conversation, dr. fa will be with david westin. that will be more than a timely conversation. many other good conversations on stimulus and the american labor technology. coming up with a true update of where we are. futures sustained all morning. s&p futures up 16, dow futures up 191. , 22.34 --he vix 23.34. where was the vixen february? we are getting down to where we were at the beginning of the pandemic with a left and the equity market. the u.s. dollar weaker and gold

continues its ascent. 2047 on gold. stay with us on bloomberg radio and bloomberg television through the day. this is bloomberg. ♪

♪ jonathan: from new york city for our viewers worldwide, good

morning, good morning. "the content of the open" starts right now. equity futures higher by 16. we begin with the big issue. both parties talking up fiscal progress on capitol hill, the president piling on the pressure , saying he could go it alone. secretary mnuchin maintaining will reach an overall agreement if we can get one by the end of the week. nancy pelosi singing a similar tune, "we have to have an agreement and we will have an agreement." if they do not, the president suggesting he has the power to make a move without congress. president trump: we are looking at it. we are also looking at various other things i am allowed to do under the system such as the payroll tax suspension, so we are allowed to do things. we will see what happens. i have the right -- including the payroll tax suspension. we may do some things. jonathan: