♪ >> the world has basically kind of imploded because of the pandemic. >> we have damaged them in ways that are going to take years to recover from. >> the long-term damage to the economy will gradually become apparent. >> when the vaccine has been rolled out in a meaningful way, we really will start to see some very positive growth. >> the public still has money in reserve. >> you look at the price of some cryptocurrencies, certain parts of the equity market, there's clearly a bit of frost. -- a bit of froth. >> this is "bloomberg surveillance" with tom keene, jonathan ferro, and lisa abramowicz. jonathan: from new york city, for our audience worldwide, good morning, good morning. this is "bloomberg surveillance, " live on bloomberg tv and radio. it must mean one thing. we are in a bubble, a bubble in bubbles.

everywhere you look, there's an article and take about the froth, the bubble in parts of this market. tom: in the way that it is froth and the way that it is a bubble, i am by no means an expert on this, other than to say the s pac's, the gamestop day meant -- the gamestop dynamic as well, it's very different. arthur levitt was heated that gary gensler is going to get hold of the bubblicious nature of the market. jonathan: i'm just glad that, so up to speed. what did you call spac's? lisa: sparks. tom: can we talk about g and j&j -- about ge and j&j? organic revenue growth is what matters, and the revenues are middle to upper single-digit. that is a constructive sign

given this pandemic. jonathan: later we will hear from microsoft after the close. lisa: just a couple of things happening before that. at 8:00 a.m., the imf planning to launch an updated world economic growth forecast. the reason i am interested in this is because we are going to potentially see the effects of the vaccines and how effective they were in all of the studies that came out after the first october reading come of the last time we got this projection from the imf. 11:15 am, you may be looking at brian moynihan of bank of america, jes staley of barclays giving speeches. i am watching the european medicine agency's executive director speaking to the european parliament, to members who have been pretty concerned about the failures in the rollout of astrazeneca, under a lot of pressure right now from certain members of the european union saying they don't want any exports from the continent because they want to preserve and get a greater proportion of the population vaccinated. to your point, after market

microsoft q4 earnings is kicking off a series of reports. tomorrow we get apple, tesla, facebook. just to give you some perspective, the nasdaq is up five point 8% so far this year versus 2.7% for the s&p, huge outperformance for tech after lagging behind for a long time. tom: well said. i do want to point out that geeta copan asked of the -- that geeta gopinath of the imf will, i believe, beyond with jon ferro in the 11:00 our. jonathan: thank you. with microsoft specifically, amazon, apple, they have been moving sideways, but this is where the earnings growth has been. stuart kaiser was on the show with me yesterday talking about netflix. that really set the stage to remind people where earnings growth is. it is in big tech.

that value, that rotation into value, that has been disrupted in the early parts of 2021. it's early days, but lisa is right. tom: jon, i read every word, every spreadsheet part of it, and you are right. the persistency of revenue growth of some of these winners, even with a slowdown in the pandemic, is tangible. jonathan: let's get you up to speed on the price action. we are positive about a single point on the s&p 500. the bubble stuff at the top of the program, we will explore that a little more. yields two weeks ago today, intraday pushing $1.20 on the tenure. we are back down to -- 1.20% on the 10 year. we are back down to 1.05%. the curve a bit flatter over the past couple of weeks. tom: i am just watching gamestop.

do we need to do a data check within this bubble? what is reddit? the reddit people hate the shorts, right? end of the shorts hate the reddit people. jonathan: a really interesting piece this morning on short-sellers. short-sellers have come out with this big production, they come on shows like this and say look at us short this name. tracy is asking a question this morning, and i think it is important, whether that industry, or at least the way of behaving within that industry, whether it is the end now because if you expose yourself as being short a name, there's a group of individuals on the retail side that really want to flush you out and cause you some pain. tom: there's a way to do this. steve eisman was just on, and mr. eiseman is an example at newberger bergen of the class c way that you go into a short position without jabbering about it too loud. that is very different from what some of -- different from some

of what you, i, and lisa have witnessed. jonathan: let's get some of your take on it. >> we've got low rates that should be persistent, so i see pockets where maybe there is some overvaluation. there are pockets ignoring the potential of tax threats. but as a whole, i am reasonably comfortable where we are. do i prefer investing anything that has a covid discount? i think there's going to be a lot of upside from owning those stocks and companies that will benefit from a full return to the economy, and this final defeat of covid, or at least seeing it down significantly. tom: humans no words about it -- you minced no words about it. you say janet yellen is revolutionary for market participants. why is janet yellen revolutionary? peter: she is really going to

look at ways to ensure that money makes it beyond some of the big corporations. i thing some of the complaints about monetary and fiscal policy is that it really stuck with the upper echelon of corporations and did not make it down to smaller companies and individuals. i think she will expand on the main street lending program and if you go back to what we were doing in march and april, where mnuchin set some treasury money up, i don't think he ever wanted to lose that money. he wasn't a risk taker. i think she is willing to risk some money to drive this economy and further small companies and equality. lisa: peter, you were talking about how on the whole, things are reasonable, especially with this policy backdrop that is incredibly accommodative on the fiscal and monetary side. but is it reasonable, going back to the penny stock surge, for people to be in chat rooms ganging up on short-sellers for fun? it seems almost out of boredom, and drawing institutions for the game, for the sport, and that's it. peter: i think it's partially

become a betting thing. $500 on the bills, see what happens. you are seeing some of that. though i do think the shorting action is even a bit more sophisticated, i think it starts with out of the money buying of call options. then you see this buying pressure that starts squeezing the shorts, and is that price goes up, all of the people with money call options wind up having to buy as well. it is definitely disconcerting, and i think there's going to be a lot of volatility in those names that have been targeted for that. tom: peter tchir, thank you so much. jon, you do a data check in our simulcast worldwide. i am not sure how you do it, but it is just lights out. green on the screen. it's just a miracle. jonathan: pete, just before we let you go, the stories that we are talking about at the moment,

the gamestops of this world come are these just isolated casinos where people are playing a little bit of roulette? or is this a broader story for the market? peter: i think it is going to be a casino factor, and it will dissipate over time. what i keep looking for is out of money call options to become more expensive. that is driving a lot of these trades across the market. you see these people say, there's a lot of money on some stocks. i think the option selling commute he has to get a bit more -- selling community has to get a that more sophisticated. i think it ends with a pretty severe 5% to 10 dissent decline -- to 10% decline in those names. but right now you do not want to discount that trading because it is real. i think institutional investors are piling into it, making it more volatile, so either stay away or be very cautious with those names. jonathan: just to be clear, you think a 5% correction in those names?

because that could happen in the next five seconds. you are about the index -- or are you talking about the index? peter: i think in the index. the nasdaq 100 was up, then dropped like a falling knife and bounced back. so there's a lot of inherent volatility in the names driving that. i am far less concerned about the s&p 500 here. i think that will be a little more stable. the russell 2000, that is too mini small caps that have also been part of this froth. so you want to be very cautious. i like owning some of the dividend stocks that have been beaten up, that so have this covid discount attached. jonathan: peter, great to catch up. tom: peter, dow jones industrial average. [laughter] peter: you've got me on that one. lisa: it's ok. you can just bow out of this. jonathan: i think it is

important what peter is getting at here. nothing changes the narrative quicker than price. that is going to be the story from here on out. tom: it feels like a friday almost on a tuesday. everybody is rationalizing this bull market. i don't have the statistics in front of me. what are we, up 50% on the nasdaq 100? jonathan: i think we are up 40% on the small caps and a couple of months. lisa: one of the reddit sites has jerome powell on the top of the page, just as a sort of trilogy of pictures making him look almost biblical. he's the hero of this movement. jonathan: we will hear from chair powell tomorrow. the two day fed meeting starts in washington today. we will get the call from matt hornbach of morgan stanley in just a moment. this is "bloomberg surveillance ," counting you down to tom: the opening bell. tom:dow futures -- to the opening bell. tom: dow futures up 75?

[laughter] jonathan: he's looking at the dow again. i think that's the first time i've done it in five years, ok? the dow is up 70. 67 now. does that help? does that add any value to anybody's day? tom: it is a value add. [laughter] jonathan: come on. this is bloomberg. ritika: with the first word news, i'm ritika gupta. a delegation of house members took the next step in the impeachment process. lawmakers delivered the single article of impeachment against donald trump to the senate. that triggered the start of an unprecedented trial of the former president, accused of incitement to interaction -- to insurrection. new treasury secretary janet yellen is tasked with promoting president biden's stimulus package and hiring a new staff. she will be the first woman to

hold the job. yellen argued it is time to act big, with deficit spending to avoid long-term problems. that argument was rejected by republicans concerned about the rising debt. the british government is considering whether to use hotels to quarantine travelers arriving in the u.k. the goal is to stop the spread of new coronavirus variance from overseas. shares of general electric are higher. ge did much better than expected with its fourth-quarter industrial free cash flow. the aviation segment was weak, but the company offset that with strength and energy. ge also reinstated guidance for this year. 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. ♪

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♪ pres. biden: unity requires you to eliminate the vitriol.

make anything that you disagree with about the other person's personality, their lack of integrity, or they are not decent legislators and the like. we have to get rid of that, and i think that is already beginning to change. jonathan: president joe biden on the path ahead. unity the big push down in washington, d.c. we are about a week in, and it is still a big effort. tom: before we move forward, thanks for the phenomenal response we had to the simulcast. all of us are really humbled. what we are planning in february as we will have a little window down in the bottom on the commercial break so you can see how we prepare during the commercial break. lisa: absolutely not. jonathan: no we are not. lisa: fake news. tom: down in the bottom, we will be showing the real "surveillance." let us move over to emily wilkins in washington, just shaking her head listening to us during the break.

there are so many stories, and they all seem to break at 7:00 p.m., getting ready for the cable news juggernaut and all of that. did senator schumer get his way yesterday? is he the one that really won as the new majority leader yesterday? emily: yes and no. senator schumer can definitely come away saying he did not cave to mcconnell's demands, that he promised to not eliminate the filibuster -- demands that he promise not to eliminate the filibuster. it was sort of each side taking their own win, but schumer does look a little better coming out of this, i think it is safe to say. tom: on the wilkins meter, is the president in these first days liberal or moderate? emily: definitely liberal, given the number of exec it orders he has signed and the tone and

tenor of those executive orders. but i think you are seeing biden now pivot towards the moderate. you are seeing him engage with a bipartisan group of senators, still saying they want to work with republicans and get something done as far as coronavirus spending come all -- spending, although it looks look at this point, we might not see a bill until march. it could be later. it took months to get that $900 billion spending bill we saw in december. jonathan: does anyone think we get near $1.9 trillion? peter: i think there is a sense --emily: i think there is a sense that that will be pretty difficult to do. but there is i think some momentum for potentially getting a smaller bill done, and of course, there's always the option where democrats can simply pass this on their own through budget reconciliation, but that may satisfy -- that may not satisfy concerns of democrats who also wonder why we

are spending so much when a bill was passed just a month ago. jonathan: where is the unity, the word of the moment down in d.c.? where's their agreement with a net $1.9 trillion? emily: vaccines. everyone is on the same page that they want to get vaccines out and have a smooth rollout. we have seen stories of vaccines being shipped places, the not distributed. some states doing better than others. this is a big goal for biden. he has been talking about 100 million shots for his first 100 days. yesterday he raise that bar. he said he would now like to see 1.5 million shots per day going out for vaccines. lisa: it seems pretty noncontroversial that everyone wants to end the pandemic. the sticking points have been state and local funding, how big the check two households will be. where are we in terms of consensus on those issues? emily: some republicans are still concerned that these fundings are going to go to states that are in debt, that

the funding won't be used properly. some republicans have said these funds are needed, but there's just not a whole lot of her agreement there right now. that was a big sticking point for this last round of stimulus discussions, and it was such a sticking point that eventually, they threw it out altogether and did not provide any state and local funding. lisa: can you give us a sense of how much focus there is on trying to get some sort of stimulus passed versus the impeachment, versus confirmations? where are the priorities being ranked right now? emily: they always talk about walking and chewing gum, doing two things at the same time. impeachment, i would not worry about that until february 9. until then, it is just background work, the legal teams getting their paperwork together. i think the focus right now is on the nominees and the stimulus. if you look to the floor, you will see nominees past. we will see anthony blinken get a vote. we are also expecting several

other department skewing up their top picks. in the background, you are seeing negotiations between top white house officials and senators trying to find a path forward on that stimulus. tom: emily, you are the pro. i am the amateur. i was sort of thunderstruck to learn that the gop chairmen are still in charge of their committee. -- of their committees. is today the day the democrat take over the committees? emily: the power-sharing agreement has come together, and now the senate does have that direction to move forward, and democrats can take over those committees and start making things happen in terms of legislation, nominees, in terms of other policy priorities. jonathan: appreciate your time this morning. thank you. standard chartered, steve englander just publishing, "too early to say anything."

i think the media is often guilty of trying to make a big thing out of nothing sometimes. the fed's job tomorrow is not to make any headlines. just keep our message, keep chipping away at the taper story, and just keep doing that. tom: and i would also mention, i am glad you mentioned mr. englander. he's been brilliant in the last 90 days of pushing against dollar weakness certitude. he's been really good about that. not much movement in dxy, the blended major currency index. i've been watching the euro because of you, and it is fragile. but it is really worth watching, folks. gladys knight and the pips, out four decimal points there. jonathan: chancellor merkel was out this morning sam because of the new variant, they are essentially sitting on a powder keg. there's a huge argument with the vaccine producers, and as lisa mentioned earlier on in the program, they are in touting the prospect of having some kind of export limit on a vaccine that is produced in europe, and i think that fight is just beginning.

tom: that's true, but just to focus on the zeitgeist overnight, the 100 million statistics on american vaccines, there's already serious chat of raising the bar on that. there's a point where europe must do the same thing. jonathan: europe can't, though. we are familiar with this story because they secured these contracts with these vaccine producers much later than the u.k. and the united states, and they are not getting that supply coming for. -- coming through. lisa: and they emphasized price ahead of supply coming through. there are also questions about the distribution method. who is getting it when? there are vile waste issues. there are logistical errors that have occurred in europe, and it is getting a bit late to fix them all. jonathan: you wonder if that gets picked up in the imf outlook. we will catch up with gita go pinath of the imf at about 9:40

eastern time on my other show. i hope you will tune in, tom. tom: i will. i was just looking at dow futures. [laughter] gita gopinath looks at the dow, jon. jonathan: i will ask her. lisa: and

♪ jonathan: from new york city for our audience worldwide, this is "bloomberg surveillance," live on bloomberg tv and radio. first thing i thing about when i wake up, we are dow futures, and will tom keene tell me? s&p futures higher by about 0.1%. this is what i want to tell you about this morning, the subtle consolidation we have started to see in this market cross asset. lisa mentioned we came into this year, all of the talk about that rotation, small caps outperformance. recently has been about tech outperformance. switch of the board. into the bond market would go. two weeks ago, 10 year yield pushing 1.20%.

yields started to push higher. the curve started to get that steepness coming through, and then we flattened out again. just a little bit of subtle consolidation. switch of the board again and finished -- switch up the board again and finish on foreign exchange. the vaccine producers, the providers, the supply chain bottlenecks. that tension is building again, with germany pushing back and touting the potential for export controls around the vaccine produced within europe. euro-dollar at the moment, $1.2150. the highs we are seeing from january 6, peeking at earlier strength earlier in 2021. that big rotation, all of that energy that built up from early november starts to fade as we breathe some life into 2021, and the earnings story, the attention shifts away from the big value story and back to big tech.

romaine, great to have you with us. what really started this was the netflix earnings report that reminded people of where the earnings growth is. i think many people echoing that sentiment. romaine: a lot of people are refocusing on that earnings picture. we will start off with ge because this is your big volume mover of the day. don't get it confused with gme. this is a fundamental story. $4.4 billion in industrial cash flow in the fourth quarter, about $1.6 billion above what the street consensus was. an interesting turnaround story there. j&j, another fundamental story here. 16% growth on the pharma side. even the consumer stuff was about 1.5%. still some trouble in the medical devices space. we know the story on homebuilders. those are some of the three

biggest movements pose market. we will get microsoft after the bell today. that will be a bellwether, if we still want to use that phrase, for a lot of people. tom: we do. romain. -- romaine: ok, i am not sure what the rules are here. tom: from where you set, we are waiting for dow jones industrial average outperformance. within the zeitgeist that you see, is that the idea that the dow finally catches up to the other industries or not -- the other indices were not? romaine: i don't know about the dow or not. the transports have actually managed to catch up. if you believe in dow theory and all of that, like back in the old days ring the great depression, about how it all sort of breaks out, you saw that boost the transports, the

cyclicals. those industrial names are playing catch-up with tech stocks. but a lot of the big cap tech names have kind of rolled off here. talk about consolidation and the idea that whatever growth you got out of them over the past few years, that that might actually be done, and now folks are looking for new tech stocks. we heard from elon musk this morning, tweeting about etsy. is that a text -- a tech stock? i appreciate the -- jonathan: just for member, there's no rules. turn up and talk about whatever you like. and with tom, selective hearing. just pretend you can't hear him sometime. romaine: i did not wake up this morning and look at dow futures. jonathan: i'm proud of you. tom: etsy is a one-of-a-kind community. i didn't know that. [laughter] romaine: that was the

second-best performance stock in the s&p 500 last year. tom: are you serious? romaine: yes, i'm serious. etsy got added to the s&p in september, up 300%. tom: jon, this is perfect for you. an eight ounce soy candle from etsy. jonathan: what do i want a soy candle for? [laughter] tom: you know. seriously, this afternoon, tune in with romaine bostick and the rest of the team, starting off an important earnings for microsoft. right now, matterhorn buck -- right now, matt hornbach joins us from morgan stanley. i want to go to your wonderful paragraph on the real yield. we sort of ignored the real yield here for weeks. right now, -0.13%. what is the distention of the next 30 days you say of the real yield? matt: making sure we do the

right thing at a certain point -- but i will try. the real yield is extremely important. if we just look at what happened in 2020, you had a scenario in which the fed was keeping its foot on the neck of nominal yields, but meanwhile, you needed an outlet for the v-shaped recovery to play out in markets. it wasn't going to play out in the nominal yield. it had to play out in the break. breakeven inflation rates were rising, and nominal yields were stable. that obviously put downward pressure on real yields, and that was key to the performance of a lot of markets around the world, including the equity market, including the currency markets. that was one of the main factors that drove weakness in the u.s. dollar. what we are seeing today is a slight change in that relationship between the v-shaped recovery and real

yields. in fact, once we got past the georgia runoff election, it really started to change the character of the movement from one in which nominal yields were no longer being suppressed. they were starting to gradually drift higher, and that was coming along with marginally higher real yields as well. tom: and that is a good reason to restart the program "the real yield." jon ferro, pick it up, please. jonathan: the show never went away. you know this. it has been reduced in size, and matt hornbach is still a regular guest. the character of the selloff, the moving yields has changed. can you walk us through what the fed would and would not respond to? matthew: i think this rise in yields we have seen more recently is not really that much of a concern for the fed at this point because it's happened in a very gradual way, and it has been for good reasons. in other words, fiscal stimulus,

what chairman powell has been asking for for months and months, it is finally getting delivered, and as a result, the bond market is reacting. that is happening for the right reasons. so i think the nature of the move, the reason why it is happening, and let's face it, relative to the fed's longer run neutral rate estimate at two .5%, the 10-year treasury yield is still 150 basis points below that. in other words, interest rates are still extraordinarily accommodative, and i think that is something that the fed is pleased to see at this point. lisa: there's a question of, as inflation picks up, how much more the fed is willing to get involved to try to tamp down the benchmark yield. i am looking now at a fed balance sheet of a record 7.4 trillion dollars. how big do you think it will get at the fed tries to dance the stance -- dance this dance? matthew: we think the balance sheet is going to continue to

grow. obviously the fed, if they continue to buy bonds at the current pace through the remainder of this year, is going to add almost $1.5 trillion to its balance sheet. the other thing we have is the u.s. treasury checking account at the that, we think, is going to draw down quite a bit this year. we have a lot of cash coming into the system. the fed balance sheet is going to grow quite a bit this year. it won't quite be as big as 2020, we think, but it will be close, and that is very meaningful for broader risk assets, we think. jonathan: at the moment, do you think find a show -- do using financial conditions is the most important thing for the fed? matthew: i think financial conditions is the means to an end, and given the economy, getting labor mac it's back to full employment, maximum

employment -- getting labor markets back to full employment, maximum employment, and getting inflation back to the 2% goal and having it sustained there for the for sealable future. that really is the goal. financial conditions or just a means to that end. jonathan: whatever they think full employment is, just subtract a couple of percentage points off of it because they have been so wrong over the past couple of years. that tease up the conversation about chair yellen, now secretary yellen, because of the big lesson learned from her tenure at the federal reserve, and that has been learned by chair powell and others. tom: at the economic club of new york 4, 5, 6 years ago, someone got testy with her and she switches into a brooklyn accent, and it is always on labor, slack , and the given inequalities. i would suggest from chair yellen to secretary yellen, those inequalities have expanded immensely. jonathan: a huge amount of

respect for chair yellen, secretary yellen, but they still hiked rates. tom: yes, and stanley fischer was very careful about that on the percentage change moved in hiking rates and the effect that would have. it was a great challenge. there's no question about that. but she is in a policy position now, and the difference here from mnuchin to yellen's may be the starkest contrast in the switch of our government. jonathan: one of the reasons i love being back is because i have lisa about two minutes away me -- away from me, and i can see her itching to get in on the conversation. you want to say something bad about the fed? lisa: it is not something bad. it is just how much at this point there stimulus is achieving the goal of full employment. how much is this the issue, or it is not disrupting markets, do no harm?

we were talking about equity vigilantes. this is an interesting idea, that the fed can't allow the equity market to explode. tom: i was on amsterdam avenue yesterday. it looks like a war zone. on the west side. jonathan: you went to the west side? tom: i never go below 59th street. tom: i was shocked -- jonathan: i was shocked for a moment that you went to the other side of sigil park. i was shocked that you went that far. do you want to talk about how much you paid? futures up four on the s&p, up a little more than 0.1%. this is bloomberg. ritika: with the first word news, i'm ritika gupta. a house delegation went to the senate to formally present lawmakers with a single impeachment charge against donald trump. he's accused of incitement to insurrection. given's are set to begin february 8. getting a conviction may be difficult. there would have to be at least 17 republican senators who vote

to convict. former president trump has opened an office in florida to "advance the interests of the united states and carry on the agenda." a statement was released just before the house released to the article of impeachment -- was released just before the house delivered the articles impeachment to the senate. the office is based in palm beach. the former president moved there last week. the treasury secretary is tasked with selling bidens stimulus package and confirming a new staff. janet yellen will be the first woman to hold the job. during her confirmation hearings, yellen argued it is time to act big, with deficit spending to avoid long-term problems. that argument was rejected by republicans concerned about rising debt. leon black is retiring as ceo of apollo global management because of a scandal involving jeffrey

epstein. an outside law firm found that he paid epstein millions of dollars even though they never retain him for any services. he will stay on as apollo's chairman. 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. ♪

>> we have found the vaccine as

an industry, particularly pfizer and moderna, and record pace. we are rolling that out in a remarkable way when you take the long arc of history. it feels a little bumpy right now, but i hope over the course of this year as the scale of really happens, people appreciate -- the scale up really happens, people appreciate the magic of modern medicine. jonathan: always good to catch up with the novartis ceo. good morning to you all. alongside tom keene and lisa abramowicz, i'm jonathan ferro. in the market right now, we ship up as follows on the s&p. we advanced 0.08%. at the headline level and a lot of these asset classes, not a lot going on -- at the headline level in a lot of these asset classes, not a lot going on this morning. tom: j&j this morning, that really kicks off today. i think there is some not treasured asian -- not

trepidation, but anticipation for earnings within this economy. right now, this is a joy. for those of you not up to speed on united kingdom academics, if you are jon ferro, there's a point where you must learn roles the injustice. right now, one of our experts on human rights and its n application to public health and our law, professor gostin. i want to go back to the tectonic shift we are having right now in the perception of american human rights. on this transfer of government, your observation, please. lawrence: it is like night and day, isn't it? all of a sudden, we are back to the truth, back to freedom of expression. we've rejoined the world health

organization, rejoined the climate change agreement in paris. it has really been a tectonic change from the last administration. it is almost like a whipsaw, you go from one to the other. i think the big thing is whether or not american allies are going to think, gosh, is america here? is this one america or to america -- or two americas? will we see the old america again? we don't know that. tom: this spans your career from reagan to trumpism. professor gostin, do you see a shift here in an end or a dim unit should -- or a diminution of what we got from president reagan? lawrence: we are all kind of suffering. during the break, we were laughing about how covid has completely changed our lives.

if there was ever a time that government has come through for us -- government failed, for sure, in the united states. we were no match for the virus. but then, public-private partnerships through pharmaceutical companies, the nih, we ended up with -- science was the match for the coronavirus. we've got this vaccine, we've never seen it this quick, and we are now poised by the end of the year to think that we might plan my way out of it. that was a partnership about what government can do with the private sector. i think that the new way we move forward in america and globally are really public-private partnerships. they are nimble. they get the best of both worlds. the proof of the putting is that

now we are starting to get vaccines in people's arms. way too slowly, but that will improve. lisa: that's what i was going to ask. how do we turbocharge getting vaccines in people's arms? lawrence: we have been able to do it before. it is really kind of shocking to see how badly we have done in the united states thus far. if you think about polio in the united states, where we went through a massive campaign, or if you think about the current polio eradication, which the united states is spearheading, or that we eradicated small cops -- smallpox, the way to do it is to open up a lot of vaccine clinics, get mobile units to go into rural areas and to elderly, vulnerable people's homes, prisons, nursing homes. you have drives. right now, what is the real problem with the american rollout is that it is just far

too complicated. just talk to any of your friends and they will say, well, have you been on this website? did you try this pharmacy? are you in this county, this state? so it is privileges for people who are tech savvy and know their way around, but people who need to vaccines can't compete in that kind of way to search for them. we need to search for them. they don't need to search for the vaccine. lisa: looking forward, there's a question of whether what we have seen over the past two years, year and a half will turbocharge investment in pharmaceutical companies, in the development of new drugs and new biological research. this comes as israel gets a head start in part because of their production of some of these vaccines. you already see the groundwork being laid for more investment in the public side, as well as the private side for this type of development? lawrence: that is a really interesting question.

i think pharma is certainly -- pharma has certainly come through for us. but on the other hand, pandemics are funny things from an economic point of view. the reason companies don't invest in them, and the reason the public doesn't invest in them, is because they are so unpredictable. it is very possible that the next novel coronavirus or novel influenza will jump from an animal to a human, and then we will just get it right under control. and a lot of money putting into vaccines won't work. so what the new thinking is is that we develop with public-private partnerships platforms. so the platform can be there, and then when the pathogen comes , you've already got a way to tackle it. that is exactly what pfizer and

moderna have done with the messenger rna vaccines. they started out as platforms. we were looking at them for things like the sars virus, and then when this came, we were already way ahead. i think that is the future. jonathan: professor, come back soon. great to catch up. thank you very much. could the rollout in america have been better? sure. could it get less complex? absolutely. might we bump into some supply headwinds in the near future? quite possibly. but the seven-day early average is 1.2 5 million. comparing that to some parts of europe, which is really struggling right now, not so bad. tom: it's not so bad, but what i came away with, a single observation of the process i witnessed, which was wonderful, quite frankly, is how blue-collar that manufacturing process is. we've got to embrace that if we

are going to jumpstart this. jonathan: from new york city, good morning to you all. coming up, eric friedman of u.s. bank wealth management, the chief investment officer. tom: i will talk about the dow. jonathan: with equity futures up five on the s&p -- there you go -- up 0.13%, this is bloomberg. ♪

♪ >> the world has basically kind of imploded because the pandemic. >> key sectors to our economy are damaged in ways that are going to take years to recover from. >> the long-term damage to the economy will gradually become apparent. >> once the vaccine has been rolled out in a meaningful way, then we really will start to see some very positive growth. >> the public still has money in reserve. >> you look at the price of some cryptocurrencies, certain parts of the equity market, there's clearly a bit of froth. >> this is "bloomberg surveillance" with tom keene, jonathan ferro, and lisa abramowicz.