>> i've never heard fed officials a sickly bag for fiscal policy the way they are beg-- officials basically for fiscal policy the way they are now. >> to question is, are we headed towards a cliff? >> i think we are in the midst of a slow-moving policy mistake. >> hong kong is for all intents and purposes now part of mainland china. >> this is "bloomberg surveillance" with tom keene, jonathan ferro, and lisa abramowicz. tom: good morning, everyone. welcome to "bloomberg surveillance." we welcome all of you across this nation on bloomberg radio and bloomberg television as

well. international relations and politics, we haven't talked enough about the markets today. a risk on feel. is the so interesting idea of finally, a shift away from the factor of technology toward the factor of small-cap, the factor of something else besides that point amazon. jonathan: for a whole two days -- besides apple and amazon. jonathan: for a whole two days as well. s&p, days of gains on the within 1% of all-time highs. i wonder if that is one of the whys that they can't get it together down in washington because this market is giving them very little pressure to get some thing done. tom: certainly come a president trump is hardwired to the market. lisa, you mentioned earlier the idea of a high-yield bond under 3%. do you detect a bubble in bonds, or is it simply a reaction of

outcome from all of the stimulus and fed action? lisa: i am not going to say it is a fed bubble. i have other people that will come on and weigh in on that. but when do relative returns stop mattering and absolute returns start mattering more? when do people take return free at 2.85%? into bonds jonathan: you love that, don't you. when has lisa resisted the opportunity to call something a bubble? lisa: i just resisted it. it was incredible. that was a moment. jonathan: i've never seen it before. tom: she took a sabbatical. no question about that. was this so important within all of this extraordinary news flow, and folks, thank you so much for jon is justs, trying to frame the oneness of this tech juggernaut.

we forget how it story -- how historic it is that apple is approaching this to trillion dollar market cup -- this to trillion dollars -- this $2 trillion market cap. jonathan: absolutely. it has to be one of the most historic quarterly earnings season we've ever seen, to see the economy locks down the way it was, and they were churning out record quarters. tom: the 10 year yield now back to 0.61%. --t is a dumb a triple new that is a demonstrable move over the last three or four days. the real yield is nine basis points better than the worst, and gold crushed off that, down $1990.

$2020, thankt you. joins us now of northwestern mutual. brent: i think policymakers have built a bridge to what will hopefully be the economy after the coronavirus, and hopefully progress.ing there's a lot of debate, a lot of negotiation. right now the pressure is off a bit, but if the market were to begin falling, i do believe, given how important the market is to both policymakers, you mentioned the president and how important the market is to him, the market is also incredibly important to the federal reserve right now. bill dudley wrote an op-ed on

your website a few weeks ago talking about the goal of qe pushing asset prices up. think in today's day and age, the market is incredibly important to the economy, and the economy, and the federal reserve knows that. they pivoted last year on a right perspective not because there rates changed, but because investors said they needed to. i think you should keep those things in the back of your mind as you are trading back and forth. i think you will eventually get a deal. it is just taking longer to get there. jonathan: so stay bullish because if anything happens, they will step in? brent: right now, yes. think the federal reserve shifted from what the federal reserve was that i knew when i started in this industry to one now that does take heed to markets. reserve didn't used to believe they could help the differences between the haves and the have-nots. they thought that was policymakers, fiscal policy

makers. the --y can help by run now they believe they can help i running the economy hot. i don't think there's much in their mind of a perceived cost for doing this. we may have repercussions down the road. the federali think reserve stays behind the market, and it is a put, without a doubt. lisa: i did show some restraint at the start of the show. i am not going to show restraint now. is this a bubble if you have junk bonds being sold, 10 year jump bonds -- 10 year bonds 2.85%?old at brent: you are not going to get me in trouble. in today's day and age, it is what it is. we don't own any high-yield bonds right now in our portfolio. i don't think we will wake up

five years from now and that will be the same situation as yesterday. lisa: that was very diplomatic. when does relative returns stop mattering and absolute returns start uttering -- start mattering? brent: i think it has always been a relative return game. tom engined --, tom mentioned financial planning, it is about where you think the best outcome is. i am not suggesting there is no alternative, but the stock market still looks relatively cheap, and we focus so much on those big cap names. if we look outside those names, there is value. that bow you just won't come to be recognized until the economy we hope that is

not too far in the future. tom: with the heritage of northwestern mutual, i've got a really important in. what is brent schutte's actuarial assumption? how does this house of cards keep going with a sub for -4%cent reality -- a sub reality? brent: at some point, you will have some sort of return to normalcy. i guess on the gdp perspective, we are an advanced economy. we are not going to grow as we once did. it doesn't mean our stockmarket want move higher. i think the economy does matter to the markets. certainly, companies can create profits, and it is a global world now. even with the recent pullback of the past few years, american companies are still global, and there are better growth rates around the world. jonathan: let's talk about income. last week, 40% of high-yield

deals priced less than 4%. where are you getting income from right now? brent: that's the difficult part. our portfolios are overweight equities because we think it is a better relative value than bonds, and certainly a total return is something that people have to look at in today's day and age. that is just the reality of what it is and what the central bankers have made happen. i guess the opposite side of the equation is inflation is low. that goes back to my comments about where returns, not absolute returns, being more important to any investor or retiree. jonathan: great to catch up. brent schutte there of northwestern mutual. lisa lasted a whole five minutes before she called something a bubble. to get to high-yield, spreads for 83. don't know the dynamics

of the high-yield market like the two of you do. you where the star of the real yield. but i look at the dysfunction of this market, and what i would have to say is we all need to be beyond vigilant day-to-day. idea,ack to our opening have we finally seen the shift in equities toward everything else but tech? i'm just asking. jonathan: let's ask a better question. what would it take to see a sustainable shift away from big tech? tom: gdp. jonathan: exactly. real growth. tom: you just wonder where gdp will be in the united kingdom q4 and q1. jonathan: i love that you are confusing me and guy. lisa: any guy with a british accent is the same to you? [laughter] manus,ybe it was guy,

whatever. jonathan: well, manus is a different accent. [laughter] that is an irish accent. tom: i didn't know that. ok. jonathan: consider yourself informed. i've lost my train of thought. let's talk about the market very quickly and high-yield. spreads aren't as tight as they were at the start of the year. we didn't have a federal reserve that was in this credit market buying, or at least sitting on the bed in the way it has announced in the last several months. i think the struggle for a lot of people is to understand, ok, i'm assuming this risk. what is the adequate compensation for this risk in a world with a price insensitive buyer in the midst -- in the mix in a bigger way? lisa: especially when bankruptcies are coming at the fastest rate in history. jonathan: spreads tighter. can you make sense of that, tom? tom: the bankruptcy part is

really important. swonkd go back to diane and just the sheer hardship that is out there for x percent of americans out there right now. there's just nothing going on in washington. i am frankly not looking to the end of august. i am trying to get to the third week of august. jonathan: we will try to get you next week with henrietta treyz veda partners. -- henrietta treyz of veda partners. this is "bloomberg surveillance ." says hepresident trump is seriously considering a capital gains tax cut. he told reporters it would create a lot more jobs. president can't cut taxes on his own. some advisors say he could issue an executive order that adjusts the original purchase price of an asset when it is sold, so no taxes paid on appreciation for inflation. the trump administration reportedly may temporarily prevent citizens from returning

to the u.s. if there's a chance they have the coronavirus. according to "the new york would applyban to permanent residents, too. in seattle, the police chief has resigned after the city council voted to eliminate 100 officers and cut the department's budget. it is the latest move by a leveler meant -- by a local government to cut police budgets over the killings of black people. employment in the second quarter and the u.k. fell by the most since the financial crisis. britonser of with jobs inclined when the crisis was ash the jobs declined -- with jobs declined when the crisis was most severe. global news 24 hours a day, on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries.

i'm ritika gupta. this is bloomberg. ♪

have antate does not identified resource that we haven't already obliged.

there is no money sitting in a piggy bank from the previous c.a.r.e.s. act to be prioritized or reconstituted for this purpose. it simply does not exist. jonathan: governor gavin newsom of california pushing back. he wasn't the only one. we heard it from murphy of new jersey and cuomo in new york. we started with a $30 billion hole, and your solution is to cost me another $4 billion. thank you. that is handing a drowning man and anchor. tom: it's been a group effort in pushing back. i really haven't seen a clearer article on any of this that talks about due ability of those executive orders. have you seen anything that gets optimism? jonathan: it is going to be really difficult. i think the president said they could still go forward with the federal piece. the analysis i have already seen, with the numbers where they are in the labor market, let's assume they stay where they are, that $300 a week of

additional unemployment benefit billiond at about $40 and could run out in a couple of months. tom: i am not going to go there right now. the president, this is out of fox sports, talking up the colorado rockies. he also says he hasn't spoken to xi in a long time. henrietta treyz knows as veda partners, their director of economic policy, is that he hasn't talked to ms. pelosi in a long time. with all of your washington experience, how do you break silence? henrietta: with time and external pressure. i would love to see unemployment data reports come out every single day. i would like to see a gdp report everyday. that kind of macro push really helps move the needle. we have seen a lot of action behind the scenes in d.c., and it has come from republican

campaign donors and major base advocates like the club for growth or the heritage foundation, they have encouraged the republicans to oppose reaching a big deal, so the action you are referring to has place,y taken and has resulted in no action. just talking with folks i am close within the senate and the house and the administration over the last four days, this is the happiest i've seen them in several months because they were on a $2 trillion package that none of their donors wanted to really see. to talk about working the logjam now is actually to miss that right now, republicans view the state of affairs as having won. so i think it will be at least three weeks into september before we get these negotiations

going on. jonathan: wow. three weeks into september? lisa: this week is nothing --henrietta: this week is nothing. everybody is gone. then the rnc and the dnc, and you are at labor day. expiredlooking at unemployment benefits even if states go through the fema funds you just mentioned, so we will be right back at the table in mid to late september anyway you cut it. jonathan: are you giving us the chance we just don't get a deal? henrietta: my odds of a deal being reached dropped from 85% to 75%. i am already hearing some tidbits of what negotiations might ultimately look like here. for instance, the payroll tax piece that is so unworkable for employers and requires that they thehold or not withhold

payroll tax, that is super complicated because eventually people are going to have to pay that back. the president doesn't have the authority to change tax codes. what they are already considering is providing some sort of stimulus check in september that eliminates payroll tax suspension that the president just out in his executive action over the weekend. so they are already trying to find workarounds to the stuff the president rolled out on saturday, and that does point to a deal, so i am austin mystic -- i am optimistic we will get one, as closeis down from to certainty you could get in deal.hat we would get a the political calculations of the elections and the republican base drove the lack of progress on a deal, and that is considered a win for the republicans. lisa: what kind of concessions

are republicans willing to make on state and municipal funding? henrietta: not the ones that democrats have asked for. i have spoken with democratic leadership. on sunday, they are looking for election security and post office security, and more funding for hours and a roebuck of the regulatory reforms that have been recently instituted. that is their primary focus on the stateside. we have not seen any give from republicans there. that is going to be a major sticking point. tom: that goes right where i wanted to go. give by republicans, or give by democrats i suppose. we struggle to be bipartisan. our senate majority republicans on the same page as the house minority republican? henrietta: that's an interesting question. i don't know that it much matters just because the senate majority is the majority party,

and the republicans in the house can get rolled. they are not going to need to provide many votes for this anyway. i would anticipate 20 to 30, 40 if we are lucky. i think the sticking point for majority leader mcconnell is that he is having a really tough time corralling his congress. i am reminded of something i heard from mcconnell's office for years now, which is that winning has a tendency to really pull the caucus together. now that they have won on this bucking policy event, it should create some will try to find middle ground for september. so that idea that winning begets winning will help smooth over some tensions, and could go a long way to helping kevin house, whome of the has already come under some sort of political challenges as a result of reaching other c.a.r.e.s. act 2.0 act with

speaker pelosi. it may make it easier for mcconnell to pull aside votes from the house republican conference in the senate republican conference to make it feel as though they are in the majority again. that is also the refrain i heard from senate staff over the weekend. we are in the majority. we have the white house. we have senate three publicans. we are going to be the ones that run the show. we want unemployment at $300, $400 max. we don't want these massive state aid packages going out. you cannot have any policy writers in here. you've really got to recognize that you are in the minority. . of course, speaker pelosi knows that being in the minority is a much more powerful position. it is another dichotomy we will have to wait to get through, but the republican conference sees this a -- sees this as a win. jonathan: don't be a stranger. great to catch up with you,

henrietta treyz of veda partners, their director of economic policy research. the conversation will continue right here on bloomberg. ♪

jonathan: equity markets doing nicely this morning. keene and lisa abramowicz i'm jonathan ferro. risk appetite building worldwide , particularly in europe. stateside, up 19 points for the s&p 500. we advance .6% on equity futures. ofeign-exchange just short 1.18. ,n the treasury market, .62% and other to treasury yields. up four basis points. notes, and year after that on thursday we get the 30 year bonds. tom: hugely correlated. i love that we go to four digits on our screen. right now that is what global wall street is looking at. we are about ready to go to a 10 basis points away from

the worst of a couple days ago. gold down $59. who us is stephen gallo writes intense short research notes that are incredibly informative. head with over the your so-called dollar devaluation. did the dollar move all that much? stephen: i think yes it did. probably what is more astounding is the abundance of dollars in the system. if you look at declining usage of this fed swap lines by central banks, that points to an abundance of dollar liquidity, it is starting to bleed lower, but it has swelled. being an election year in the u.s., the fiscal story is a lot less dynamic.

there has been an adjustment and relative prices in affects, but it has been primarily a dollar move. tom: if it is dollar depreciation, what is different this time? is it simply about the fiscal buildup. the amount the fed has thrown at it. you can look at the expansion of the fed balance sheet compared to the ecb, the doj. there is a dilemma. there is a dilemma at the heart of this. it stems from the fact that few investors viscerally feel the rest of the world is fundamentally much better off than the u.s.. it is an election year, there could be a dramatic shift in economic policy after november. that is a risk. we do not know. ,urely from a structural angle many investors will be , thed-guessing to a degree

bearish dollar narrative. jonathan: you think we are already pushing those limits right now? biggest the euro is the , most liquid alternative to the dollar. there is a dilemma as well. the problem is the euro external position is sturdy, but its internal growth dynamic is hollow. there is a mainly a question of how much depreciation of the currency the block can stand. isalternative to the dollar not the same thing as a replacement for the dollar. for the time being, if you go by how some people have been pitching the eu recovery fund, euro-dollar should be trading at 1.30 by now. cool, bring it on if that is the case. that is where the logic starts to break down again. if you dig through the details, what the eu framework is doing

is further concentrating and centralizing decision-making. the further away from localism you get, the less likely you are able to get the velocity of money rising sharply. banksve the real economy, need a yield curve and they need an incentive to lend for real gdp transactions. they have to be connected to small businesses. until you see the dynamic change, i would call the euro-dollar rally eight parts dollar weakness and two parts euro strength. parts dollar weakness when you talk about moving money around might be another way of expressing inflation. we just got the producer price index, which came in much higher than expected. .6%. versus the headline, expectation for .3%. you are seeing a move on the long end with rates higher and prices lower.

how much does the weaker dollar accelerate if we do see uptick in inflation based on some of these metrics? stephen: i do not think it is an important dynamic for the fx market right now, or even to a large extent the rates market. we need to get through the next three to six months and we need to see how dramatic of an effect there is on price developments across the globe from the china decoupling story, the breakdown of supply chains, the shift in trade flows, what that will mean for wholesale prices, and does any of that get passed on down to consumers and households in the cpi? aside from that, and i've heard it on your show earlier today when you had other highly qualified guests speaking, they keep talking about the same thing. they are talking about the incentives the central banks, in particular the fed, are giving

investors to move out the risk spectrum. looking for higher relative returns by owning riskier assets. that is not a driver of real gdp growth and it is not a driver of goods price inflation. the more strain you have on banking systems, whether it is asian economies are the euro zone with its weaknesses in its banking system, the more strain there is on the financial system, and the further away you get from bank lending to grow real gdp. that was a problem when the global financial crisis struck a decade or so ago, and it is still a problem today. we have not broken that feedback loop. jonathan: let's get to the bond market. tencent 30's lower, yields higher -- tends and 30's lower, yields higher. this time last week, a close

just north of 50 basis point on the 10 year which was a record low close for the treasury yield. now we are 12 basis points north of that. on the back of the ppi number, yields up, dollar weaker. are junk conditions. the ppi has divided into three segments. what is critical is all three segments moved on ppi. this falls into the business system. was as orears ago ppi more important than what we got out of the consumer price index. john, you mentioned the jump condition of 10 year yield to .62. the equity market was so far ahead this morning. the others caught up with it. see an gallo, do you embedded inflation already in the system, even with the bloom labor statistics we have? stephen: no.

i do not think, and it also reflects the writings of our rate strategist, i do not think the treasury market is so much pricing in a return of inflation as much as it is pricing in the uncertainty over the impact of , ond on the retail sector household spending decisions, on business investment decisions, and also to a degree the fact the lower rates dynamic, which is largely indicated by the fed responding to the potential for disinflationary shocks or the disinflationary shop we had earlier in the year, the yield curve is reflecting the fact central banks continue to give market participants the incentive to buy riskier assets. that is the dynamic. tom: gold down $64. with all of that one-way bet on gold, it will be down $100

before this is over. jonathan: we talked about better data. better data would be the poison for some of these consensus traits. stephen, something you have talked about, for these moves to be sustainable and durable, you have to believe the data will pick up over time. the improvement will continue. we will have this reflationary impulse that will not last couple of days, it will last a couple of years. do you expect it will? stephen: right now you have to look at the gold price as an opportunity to step in and by the dips because of the fiat currency devaluation story. it is not just a dollar story, it is all fiat currencies under pressure. there probably will be a scramble for alternatives to fiat currency. -- money other viable

and may be opportunities in high yields. one big difference between this reflation cycle and the reflation cycle we saw took hold after the global financial crisis is em. em is in a much different position today because of the shift in global trade, because of the geopolitical factors, because of the china decoupling story, and because central banks are engaging in various forms of mmt and financial repression that raises the medium-term risks for those economists. if something shifts dramatically or if they continue to clamp on financial openers as a result of these policies. jonathan: stephen gallo, great to catch up with you. the cyclical move, let's run through it. in the equity market, equity futures up 20 points, positive

.6%. underperformance from the nasdaq once again. in the bond market, treasuries in the driving seat. tolds up five basis points .62%. this time last week, a record low close just north of 50 basis points. what you see? you've seen the outperformance in europe, you've seen the rotation in g10, you see the dollar weaker started to come through the market. tom: i have not done a standard deviation study but we were so far down and so depressed that i cannot see -- i cannot say we have seen a snapback, but it is one hell of the reversion to the mean. it sets you up for cpi tomorrow. you wonder how that will come in? jonathan: and retail sales on friday. i love how you say that since mia. tom keene will be -- that sets me up. tom keene will be taking some

time off. jonathan: i wonder how much vacation you've taken this year. tom: i am almost out of my vacation days. jonathan: i have too many. you will not let me take time off. coming up on this program, sarah bianchi. tom: you have a reunion. jonathan: a reunion. a virtual one. this is bloomberg. roadblock in is a the capitol hill talks for a new virus stimulus package. it is mitch mcconnell's insistence or be legal liability protection for businesses, schools, and colleges. mcconnell says he will not let the bill pass republican-controlled senate without a temporary shield. democrats say they will not accept the republican plan as it stands. joe biden good name his running mate as early as midweek. bloomberg has learned the presidential nominee has

finished interviewing the candidates. joe biden promised in the spring he would pick a woman to be his vice presidential candidate. vladimir putin is claiming victory in the race to develop the coronavirus vaccine. the prime minister says the country has come out with a vaccine. vladimir putin says one of his daughters has taken the vaccine. trials normally last for months and involve thousands of people. for the first time in more than 100 days, new zealand has reported its first local cases of the coronavirus. that prompted authorities to put the country's largest cities on lockdown to prevent another outbreak. the prime minister says new zealand has beaten the virus before and can do so again. another escalation of trade tensions between the u.s. and china. the trump administration will order imports from hong kong to be labeled made in china. the actual economic impact may not be large, but if hong kong

shipments to the u.s. re: exports from other places. 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. . am ritika gupta this is bloomberg. ♪

>> what this coronavirus has elicited is the problems of governance.

thierry wizman from macquarie. coming us, pimco's global credit cio, and just for lisa, the over 10ld can borrow years at less than 3%. looking forward to that conversation in about an hour. tom: let me revisit the dow right now. 28360 points and advancing thousand 39. 28 -- 28,039. , and the nasdaq does not participate. the nasdaq 100 is red. barry ritholtz joins us. always running for bloomberg opinion. awaiting a new book out before 2025. dow 28,003 i get

the sense the american public is shellshocked in investment. what you do when you are shellshocked, whether it is november of 1987, september 1998, or where we are right now? first, you have a plan and you stick to the plan. this is not the sort of problem you can improv. leave that to the standup comedians. to try to figure out how to make changes on the fly in the midst of what is a confusing and emotional period. it is a recipe for disaster. have a plan and have the discipline to stay with the plan. tom: i want to talk about the biggest mistake i see of the crew with the laptop on the couch, which is they are completely delusional about the percent of trades that are successful, and of the percent of traits that are successful, the few that make you 80% or 90%

of your alpha. that is from another time and place. nobody knows this, do they? barry: no, and the data is overwhelming. there is a tiny percent of stocks that drive returns. i do not mean this year or this cycle, but for the past century. the vast majority of individual stocks go to zero, or at the best have no return over decades long periods of time. there are decades long winners that deliver all of the beta-2 market returns. the odds of you being the lucky person who finds that winter and can hold onto it, it is a lot more luck than skill. lisa: this is the argument for passive investing. it is the fear that is in the heart of a lot of individuals.

that raises an issue that has come to the fore with the $400 billion california pension, receiving turmoil at the top. their chief investment officer leaving. how do some of these pensions face these return expectations that are anachronisms based on the yield we get from treasuries or junk bonds, and how that being represented in the tensions we are seeing there? barry: the move towards passive indexing is based on two elements. the long odds on funding the winning stocks by picking them, and the second and more important issue is the cost structure, and the beauty of vanguard and blackrock, i can buy and s&p 500 index bond for three or four basis points, as opposed to 150 or 200 basis points for an actively managed fund. it is a two cited approach.

i know shops like calpers have been aggressively trying to lower their cost structure. three years ago they fired a lot of their hedge and alternative managers. not because the performance was so bad, but the cost was so pricey they would've been better off in index funds. that is a convoluted way of moreg around to -- it is than just active versus passive. it is expensive active versus cheap passive. becausemay be different that turmoil is based on internal issues and performance driven. lisa: we are not going to get into that right now. it is interesting for me to think about short-term money management for long-term asset bogies of 7% or 8% is feasible in today's era.

is that the message you are sending? relying on a 6% or 7% return is not a likely outcome given where yields are, even if you going to private assets? barry: it depends on your timeline. the biggest bull in all of financing, jeremy siegel, professor at wharton, whose book is in its fourth or fifth printing, his previous expectations for forward returns , the.s. equities was 7.2% last time i had him on the show, he suggested people ratchet that back to 5% or 6%. not this year or not next year, but for the next decade. he thinks the bond bull market is essentially over, and once bonds start to rise in price and , stocks becomer

more challenging to say 7% 8% return. tom: i can see with my ted williams vision the pink stickers behind you. they all say by more amazon -- buy more amazon. are we finally seen the top of tech stocks? barry: i have watched people call the top for 30 years and they got it right once in march of 2000. the same people were screaming stocks are expensive for the previous five years. it is hard to take that seriously. here is the thing everybody forgets. their value is little point in space that exists as stocks careen by it wildly, either on the way to becoming cheap or on the way to becoming incredibly expensive. shiller tape has been overvalued for 92% of the past 30 years. valuation, i think people have a real misunderstanding. if you only want to buy cheap

stocks, your window opens up once every 12 years. every 9, 10, 11. we have to leave it there. barry ritholtz writing for bloomberg opinion. hugely valuable on some of these firm rules always broken. we have one rule. we do a data check. futures up 17, which barely describes the dow move. the dow up 348 points. vix 21.25. the yield story is tangible with the five basis leap on the 10 year yield. the 10 year yield is not out to its envelope, two standard deviations. it is a nice move back from hugely depressed 10 year yield we saw earlier. the real yield is a better real yield, and with that, gold plunging to -$70 on gold. i did a good job.

i bought that right at the top of the market. lisa: jewelry. worth it. tom: the check is in the mail. eric cantor at 12:00 with david westin. this is bloomberg. ♪

♪

jonathan: from new york city for our viewers worldwide, good morning, good morning. 35 minutes away from the opening bout with equity futures up 18 on the s&p 500. washingtons in stalling as the equity market heading back to all-time highs. very little pressure from wall street to break the deadlock on capitol hill and it shows. republicans and democrats exchanging blame and offering few solutions. democratic governors lining up to say they will not be able to contribute to the president's efforts to boost jobless efforts. andrew cuomo saying we started with the $30 billion hole, -- another 4 billion -- that is like handing a drowning man an anchor. kevin cirilli is in washington dc. let's start right here. are there any talks on capitol hill? kevin: there are not serious ta