>> we are going higher and inflation over the next couple of months. there's very little we can do about it. >> the economy is still very robust. if you don't establish functioning wall street and stability, it is disastrous. >> this is "bloomberg surveillance" with tom keene,

jonathan ferro, and lisa abramowicz. tom: good morning, everyone. where did january go? well, it is a snowstorm in washington. drive careful, on bloomberg radio. it could be an inch here, 12 inches there. much more scheduled as well. on bloomberg television across this nation and worldwide, february upon us. it was uneventful january, to say the least. jonathan: i heard someone choke over the weekend that we were going into month 14 of 2020, and that is what it feels like. we need to talk about it. huge bull case for 2021. how many cracks senate now? tom: spx beckoning 3800. everybody nuance sing and adjusting their bull market. the underpinning to me is a pretty good earnings and revenue season that nobody is talking about. jonathan: there's a belief we

bounce back in the second half. that's been driving things since december. i sent many people still hold that belief, that hope that that is the story, and that is why they are willing to look through the negative payrolls report last month and perhaps a really soft when this month as well as we look to get about 50,000 this coming friday. tom: we will give you gamestop and silver through the morning. that story evolves. we've had some really good guests on that. the vix comes in two big figures now, 30.70. look at the bond market churning. it is up a basis point or so. am i going to get a 91 on dxy? stronger dollar. jonathan: this goes into the base case for 2021, and the bu ll case was a weaker dollar and in improving global economy, and here we are.

dollar on the front foot this morning. the key pair to watch has got to be euro-dollar. what happens in europe, and what does the dollar trade look like? lisa: i think it goes to the heart of another consensus trade, the idea that we get to the other side by the end of the year. there are some cracks in that. that's where i wanted to go, the idea that some of the vaccines are less effective against some of the new variations of covid that have been found in south africa in particular. this matters, how quickly we vaccinate the world, not just specific nations. from a currency perspective, perhaps you can follow one trade. long-term, it affects global growth. tom: ism at 10:00 a.m., right after one of jon ferro's properties. before we get to our wonderful guest on equity markets, i want to talk about the foundation call wrapped around silver

, oil, copper as well. that is the jeff currie call at goldman sachs. jeff currie has really been out front to say go long commodities. jonathan: and that trade has worked. many people think we get a rebound. look at manufacturing. you mention the ism. the ism north of 60. it is really strong on the manufacturing side. for all the talk of europe not doing well, look at the manufacturing side. this recovery we have witnessed over the last month or so, the engine of that might be china, surprise services, but many are doing all right. tom: in my conversation on friday with a gentleman, the number one korean restaurant guy in manhattan, let's show the

other side of the economy. lisa: we can't go out and eat, and there are companies going out of business very quickly. the question is, what can we do to help them and the economy? tom: right now, megan ornament joins us now, the director of portfolio strategy. is your view february 1 the same as it was december 15? megan: as far as the entire calendar year, yes. we forecast a lot of volatility into the first part of this year because of the fact that we were dealing with this third wave of the coronavirus so we expected to see not only some softening of the economic data, but the markets take a breather to reassess what is going to happen the rest of this year. second is a very slow rollout of the vaccination. that is only prolonging being able to get back to normal.

our base case scenario is the second half of this year, once we get more distribution of the vaccine. we will have better economic growth, and into 2020 22022, we think we have a second wave of pent-up demand where we can deal with a couple of new multiyear economic expansions. jonathan: i love how it is now 2022. middle of last year, they were talking about a snap back in 2021. i think the investor appetite to stay long is really important. just how investors will behave, how they will respond. how tolerant do you think we will be over weaker data through the rest of q1? megan: equity investors particularly tend to look nine to 12 months in advance. while there has been a lot of volatility, which is extremely expected given where we are in valuation levels across a lot of areas of this market, pockets of bubblelike territory, you would

expect to see some volatility regardless of what is going on with some particular names that i know you guys are going to talk about later. most investors in the equity market are looking beyond this. this is short-term noise with what is going on with the economy. remember, we have the fix. the problem is we can't get it out. we have a vaccination, we have two of them and a couple more on the way. if we can just get this fixed out, continue to get this region around the world, then this is a fix for the global economy. but we will be left with once we get everybody vaccinated is a significant amount of fiscal stimulus, extremely commodity of -- actually accommodative monetary stimulus, and we come out the other end of this. lisa: the question is, windy fundamentals matter? wendy used looking at the jobs

data, the other services data that -- when do you start looking at the jobs data, the other services data that shows a different picture? megan: keep in mind, the numbers that we saw before, ism has been very strong. there's nothing we can really say about that over the last six months. the manufacturing site has been holding this up, aside from housing. we need easy some better forward-looking indicators with the consumer, whether it is stabilization and improvement in consumer confidence, better labor market data, and i am not just looking at the chart reports. i am looking at the jobless claims on a weekly basis. those are the types of things that we think will really drive the consumer, and the consumer makes up 60% to 70% of the economy. jonathan: in the united states, i wonder whether that is going to be the trade. on bloomberg tracker here, almost 10 doses given per 100 people in the united states.

it is climbing quickly at a decent clip. if you can get the united states well vaccinated and pare back some of the restrictions, i wonder whether enthusiasm starts to build for the u.s. versus the rest of the world, particularly europe. tom: yes, -- yes, the x axis is underrated. where are we may 1 versus where we are now? megan: as far as vaccinations? tom: yes, and what it means for the market. megan: let's say we go into may 1 and we've gotten all of the 65 and older, and moving into the bulk of the population here in the u.s. the one thing that we talk about that was going to happen in the second half of this year, there's going to be this second wave of pent-up demand. when we came out of the first look down, whatever consumer was spending money on was furniture,

housing, fixing up their home, landscaping, all these type of things. now the second wave of pent-up demand is totally different, that is actually much more supportive for the small business community then what we saw after the first wave of pent-up demand. that is going to be americans, and globally, want to spend on experience. they want to travel. they want to go to concerts. they want to go to the movies. they want to go to shopping malls. these things, keep in mind, when you travel, this supports local restaurants, local businesses. this is the side of the economy, specifically in the u.s., that is really kind of stuck right now. it is stuck in this in between of getting reopened and being partially shut down. jonathan: megan, thank you. looking forward to catching up soon. megan horneman there of virgins

capital -- of verdence capital partners. tom: i will go back to the certitude of four or five weeks ago. it is vaporized. jonathan: can i get the technical analysis of gamestop? tom: of gamestop? hold on, let me go over it here. i don't have much technical yet, other than softly south, waiting for volume to come in. jonathan: love it. can we get a research report with a price target from you as well? tom: i will give you a target, but no time, or time and no target. jonathan: that usually works. [laughter] coming up, jason schwartz, yale school of medicine assistant professor of public health, on the situation as the who is starting to put a bit of pressure on countries further along in the vaccination process. i'm trying to be serious, tom. all right, saying.

you've got 20 seconds. tom: ♪ snow ♪ jonathan: what is this, snow? tom: it is from a small movie years ago, "white christmas." tom: ♪ snow snow snow ♪ jonathan: tom: are those the lyrics -- jonathan: are those the lyrics? wonderful. tom: i am waiting for rosemary abramowicz to come in. jonathan: lisa is retiring. this is bloomberg. ritika: with the first word news, i'm ritika gupta. silver has taken center stage in the retail investment frenzy. they sent the metal to a five-month high today, fueling a debate over the power of reddit inspired speculators to take on ever bigger targets. a weekend buying bench overwhelmed buyers -- buying binge overwhelmed markets. and myanmar, the military has detained -- and declared a state

of emergency for a year. in mars army chief says he took the action in response to voter ash meehan mark -- myanmar's army chief says he took the action in response to voter irregularities. republicans are calling for $600 billion of spending, less than 1/3 of what the president wants. at the same time, democrats could pursue the biden proposal without republican support. astrazeneca will deliver 9 million additional doses of coronavirus taxing to the european union in the first quarter. the eu is trying to get its chaotic inoculation drive on track. the extra doses will be given to an additional 40 million, only half of what the eu expect it astrazeneca to come up with. 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.

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♪ >> most likely towards the end

of february, we will have an advisory panel pending the decision of the fda getting emergency use approval, and then march we will be able to start delivering vaccine. jonathan: that was the johnson & johnson chief scientific officer. from new york city this morning, good morning. live on bloomberg tv and radio, alongside tom keene and lisa abramowicz, i'm jonathan ferro. big losses last week on the s&p 500, the biggest weekly loss going back to the end of october. it is a snap back this monday morning. a curious move in the bond market last week. the move did not happen in the way some people anticipated. equities down, bond yields up a bit, in and around 1.1%. we had a break of one point -- of 1% briefly. tom: right now, 1.08%. interesting to see, and a lot of economic data starting right after jon ferro's property this morning. look for ism data.

we just spoke to david axelrod on gamestop, on the rest of this. he's truly an authority on the law, the regulation, what the sec could do. we do the same thing now with this horrific pandemic. jason schwartz is at yale school of medicine. the title is assistant professor of public health and history of medicine. baloney. he has the pedigree on the sociology of medicine in america , including medicine by committee. i love that title, dr. schwartz. absolutely thrilled to have you with us this morning. i've got to cut right to the chase, where the j&j vaccine is distinctly important. what is the distinction of the johnson & johnson vaccine? dr. schwartz: it is a one dose vaccine. that is a game changer. you've heard that, it is cliche, but it really is true. the idea of a one dose vaccine,

the ability to have millions more doses introduced perhaps as early as a month from now really gives us the additional capacity we desperately need in the united states to scale up vaccinations, and not a moment too soon as we are now expending rollouts to new populations. it is a badly needed tool and one of the most promising to add to the pfizer and moderna products. tom: if it is pandemic by committee, how do we get organized and find authority to get this fixed faster? dr. schwartz: that has been the challenge. this fragmented, piecemeal approach we have seen in the united states throughout the pandemic has cost lives, and we have seen a fragment of the approach with was back to the vaccine rollout. some of that is unavoidable. that is how public health works in the united states. we lean on our states and municipalities to do a lot of that front line work. but we needed more federal coordination, guidance, leadership. we are starting to see that, less of a 50 state solution to the vaccine rollout and

something that is more guided. that takes time. we are now doing it in course. it would have been much easier to do this back in the fall. but i think we will start to see that balance between federal guidance and state leadership that will help us get through what has been a rocky rollout so far. . there's no doubt about it. lisa: markets are pricing in a recovery for the back half of 22 anyone. give it -- of 2021. given the pace of the rollout, do you think we will see a recovery? dr. schwartz: that is a good question. we are seeing an increase in doses, a massive increase. i think we can really scale up even faster in march and april, with both eat the -- with both the johnson & johnson vaccines and those other vaccines testing in the united states, astrazeneca and others. the ability to hit all of our high-risk populations so that

come summer and the fall, i think we are really going to be in a much different place in terms of what the pandemic looks like. jonathan: let's talk about the consequent is for the global economy. how concerned are you about so-called vaccine nationalism? dr. schwartz: i am very concerned about it. we have already seen, when we look at research that has shown where countries have bought up commitments from vaccine manufacturers, it is disproportionately high income countries. we know there is a vast global need. we got global coordination through the who, through this facility intending to bring vaccines to the low-end metal income countries, but it is -- low and middle income countries, but it is not nearly enough. the prospect of the vast majority of less wealthy countries may have to wait until 2022, according to some estimates which really is ominous. so we need to be center and refocus those global efforts.

the u.s. has signaled they are back in the world health organization. they are going to join this effort, but the idea that it is every country for itself is already starting to bloom on the horizon, and there needs to be or of a global approach if we are going to fight this global pandemic. lisa: i'd like you to build on that because i was struck by data that showed j&j and novavax's vaccines are much less effective on the south african strain. the idea that we could get everybody vaccinated with these vaccines and then find that the pandemic is still spreading because it has mutated into a new form that is still resistant, how close are we to that kind of reality? dr. schwartz: it is absolutely chasing a moving target with respect to the viral variants. that makes it all the more important to vaccinate as quickly and aggressively as we can right now to tamp down viral replication, viral circulation, do all of those other measures that can help reduce spread of the virus, and then we have

platforms now, particularly the mrna vaccines, that can be modified to respond to variants. but it is going to be a moving target, for sure. fact that j&j doesn't seem quite as responsive to that variant is a cause for concern, but it only underscores the urgency of moderate hearing -- of monitoring those variants wildly vaccines are still really effective against the virus. jonathan: professor, good to catch up. come back soon. just a word on vaccine nationalism, i think it is a real worry in the medical community at the moment. the who starting to put pressure on developed nations that have got so far in the vaccine process to stop once they have already vaccinated the most at risk to allow developing countries to catch up. there is a risk, and the professor is speaking to it, that you vaccinate the bulk of your society, but if the developing world hasn't done the same thing, the variants start

to build again, and it is a threat to the already vaccinated population because maybe those vaccines don't work. tom: three months ago i looked at the vectors of california, new york, florida, blah, blah, blah. the first thing i look at is the dispersion in africa of deaths. their numbers aren't very good. there's some real questions. it's a difficult picture. kristalina georgieva was heated in this in my conversation with her a couple of days ago. jonathan: it begs the question, how quickly we can reopen the domestic economy is a different matter than how quickly we can reopen the global economy. lisa: how quickly can we open the transit linda corder if you have europe lagging so much in vaccinations -- the transatlantic corridor if you have europe lagging so much in vaccinations? jonathan: that spat in europe over astrazeneca is not going away anytime soon. coming up, torsten slok of

apollo management, the chief economist, on this economy as we count down to an important payrolls friday just around the corner. live from new york city, heard on bloomberg radio, seen on bloomberg tv. alongside tom keene and lisa abramowicz, i'm jonathan ferro. this is bloomberg. (announcer) do you want to reduce stress? shed pounds? do you want to flatten your stomach? do all that and more in just 10 minutes a day with aerotrainer, the total body fitness solution that uses its revolutionary ergonomic design to help you to maintain comfortable, correct form. that means better results in less time. you can do an uncomfortable, old-fashioned crunch or an aerotrainer super crunch. turn regular planks into turbo planks without getting down on the floor. and there are over 20 exercises to choose from. incredible for improving flexibility and perfect for enhancing yoga and pilates.

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jonathan: remember looking forward to 2021 and then waking up in 2021 and it felt like 2020? that is how i feel this morning. this is not the right board? can i get the right one? can i get the s&p 500? or i could just talk about exxon and chevron. tom: there we go. jonathan: rewind. there we go. from new york city for audience worldwide, here's the price action. s&p futures up. last week, downdraft. yields move two basis points lower. towards the back end of the week , treasury yields pushing higher. that is the story for some of you.

there were doubts coming into 2021, the doubts reinforced. i will bring you two, tends, and 30's. up about one basis point to 1.8% into payrolls friday. we are looking for a soft print again after negative print in december. looking at about 50,000 for january. tom: 10 year yield up. dollar strength, 90.88 on the dxy. a blended major trading currency feel. the euro stronger than yen over the last two days. torsten slok at deutsche bank for yields writing must read papers that always have three charts where you would have to read the report and the captions under the charts. that is how good he is.

he was snagged by apollo management. we are thrilled torsten slok can join us. i want to cut to the trace -- cut to the chase, which is the idea of long-term inflation expectations. no one cares. on the central bank watch, should mr. powell pay attention to copper? torsten: this is a very important issue in rates markets. 10-year breakevens have gone up since march. this is certainly something very important. then the question becomes why is it the market suddenly expects inflation to be higher? there are different explanations. the first is commodity prices are almost mechanically correlated -- commodity prices going up is an important driver. another important driver is the

fed changed framework to average inflation targeting. therefore long-term inflation expectations are up. that is good here and now but it is a critical thing to monitor if we get the strong growth in the second half of the year you have covered so well. lisa: you think markets are underpricing or overpricing inflation? torsten: if i look at bloomberg, there is no inflation in cpi, no matter what the fed measure or the measure you look at for inflation, there is no actual inflation. all of this has to do with expectations, in the next few quarters, but also he look several years out. for now i think the market is ahead of itself in we will not get that much inflation. going into 2022, we have a lot of snagged in the economy.

it is not great on friday with the numbers we get in january. lisa: not to get philosophical, but as we see higher commodity prices and as the prices of goods goes up as a result of supply chain disruption and other covid related issues, how much could we see not disinflation but stagnation, the idea people's wages are staying the same or going down, the employment picture is weak, they are forced to pay more for the goods they need? torsten: that is the environment we have today. commodity prices going up. we have very little employment growth. we still have 10 million people less working today. commodity prices are going up. if you look further out it becomes more of a philosophical issue where you think it is the level of capacity utilization that matters.

whether the level of the aggregate or a change of the aggregate. that is a sophisticated way of saying -- or should we say that is not a problem because the employment rates are so high. that is a lot of thinking around this issue and the federal be careful that this risk we have that the growth we get in the second half of this year does not link to services pricing. jonathan: talk to me about financial stability. there are clear reason why the fed wants to keep rates low for a long time. do you see them doing that, the sacrifice of making sure the financial stability risks do not build? torsten: there is a critical paper that try to look at why is it that stock prices are so seemingly disconnected from fundamentals? what they are arguing is it is the optimal strategy for the fed to say that if we know the shock is of a limited nature and will

be over at some point, then we should be easing financial conditions as much as possible, we should be creating a disconnect between stock prices and credit spreads and the real economy because that does accelerate the expansion later on. i think the fed looks at this and says we know stock prices might seem high, we know spreads are height, but this is the best strategy for us forgetting the economy as back as quickly as possible. jonathan: i can think of example where they've managed to divorce financial conditions from economic fundamentals. do you think we can reconcile that? torsten: the question becomes once we get to the pandemic being over, what will the world look like? this is where you get worried about what sectors in the s&p 500 are most vulnerable to higher rates and those are the sectors that are long-duration, in particular tack. -- in particular tech.

those parts of the s&p 500 most sensitive to higher discount rate, in this case the tech sector, would also become more vulnerable. you're right that if we do have a much higher level of valuations once the pandemic is over, then we begin to become more vulnerable to rates moving up. tom: within the system, do you see effervescence? i do not mean bubble in an amateur sense, but you see a ferment from all of the accommodation? torsten: i think the fed and the ecb answer would be to say we have done what we can do with the tools we have, and that is why the debate is now we are switching from monetary policy, having done whatever they can, and that results in height enterprises. that is why questions have to be critical.

the issue we have not spoken about yet is the number of cases coming out of the u.s. and europe and u.k. -- a few weeks ago and the u.s. there are about 300,000 new cases, now we have 150,000. if you asked a question, when will we get enough new cases that it goes to zero? we get to zero new cases in march already. that is something we should not underestimate that we could have a growth spurt, not only the second half of this year, could potentially, the second quarter. that will be an upside surprise to markets. tom: would you suggest the bull market valuing out six months, valuing out a year is fairly priced? torsten: that comes to whether we will see inflation or fit

dovishness, will that be sticking or will the fed have to turn around? the fed is not saying we will hike rates until 2023. that is almost the premise for the monthly yield, people buying to ration in treasuries and high yields and equities. if we begin to see rove faster and quicker -- if we begin to see growth faster and quicker and the catch-up is more speedy than what we expect at the moment, than the fed will certainly have to pedal back and talk about rate hikes coming back soon. the question is is the fed going to stay dovish? richard clarida is that we will do 5 billion in treasuries, $40 billion in multiples throughout the end of this year. if we have three strong quarters of growth, the fed could bring to the table sometime in the second half of this year. lisa: one thing you did show well at deutsche bank was put out charts showing the divide in

the labor market between the haves and the have-nots. at apollo, there is the question when does this divide affect markets, which has been relatively divorced and moving on very different factors because they are dominated by the bigger, more resilient companies. when does it become a real problem you have a two track economy? torsten: i know. it is a k-shaped recovery and this is creating issues with leverage in companies that have earnings, not only because of covid but have not had earnings for three years in a row. what this is also opening up is a number of unintended consequences of the quick reaction the fed has during this crisis. normally a recession cleans out balance sheets. the housing sector was cleaning out balance sheets, the banking sector cleaning out balance sheets. this time around, fiscal policy

makers came to the rescue quickly. normally we say we had a recession, we can now have another cycle. this year we did not clean up much and therefore many of the problems we had pre-covid, most importantly leverage in the lower rated companies much more at risk, that problem is still here. many of the vulnerabilities you clean out with a recession, those vulnerabilities are still here. now going into the new cycle, it does raise questions about will this cycle start out on a vulnerable footing, and that is a problem when you think about how long the cycle can end up being. jonathan: serious issues. i love that apollo allowed a little but of stubble. just a little bit. lisa: it is covid. jonathan: you talked about the deutsche bank transition. i am taking it seriously. lisa: you have a little stubble. jonathan: it is allowed here bank. thanks. torsten slok, apollo management.

we thank lloyd blankfein for making it ok. lisa: trend centers of wall street. jonathan: just to groom. tom has this right. clean shaven. lisa: style tips with jonathan ferro. jonathan: you can shaven still be unkempt, you know what i mean? you can wear a suit five sizes too big. lisa: we are going there again? ♪ top -- jonathan: tom once rid of me. citigroup's tobias lefkowitz on bloomberg tv in about 20 units on the open. i have to go. this is bloomberg. ♪ ritika: a group of 10 republican senators will present their coronavirus stimulus plan to president biden today. republicans have rejected the president's 1.9 joint dollar proposal and the plan being laid out today calls for spending

less than one third of that. the president has said he hopes the sides can negotiate a bipartisan deal. former president trump has named two trial lawyers to represent him in his impeachment trial. the president parted ways with his previous defense team over the weekend. according to cnn, those lawyers left when donald trump wanted them to argue the election had been stolen from him. in russia more than 400 that -- more than 4000 people were arrested in the second week of protest. among those arrested, the wife of alexey navalny. the russian court is a pair -- is preparing to hand alexey navalny a three-year prison term. elon musk set bitcoin prices spiking after saying bitcoin is a good thing. he wrote he should have bought the cryptocurrency eight years ago. on friday bitcoin jumped as much as 60% after elon musk changed

his twitter profile to #bitcoin. global news 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. i am ritika gupta. this is bloomberg. ♪

>> the price swings are while. >> gamestop, mc, blackberry and

the like. >> it is a casino atmosphere. >> to me, it sounds a lot like market manipulation. >> we do not need congress to save everybody. >> the financial stability perspective still is robust. >> everyone is talking about rational or irrational exuberance. >> it will probably end in tears for a lot of retail investors and hedge funds. tom: a great set of voices. a special thanks to governor carney, the former governor of the bank of england who digressed from climate change to give us candid comments about this moment. lisa abramowicz and tom keene on radio and television. we are thrilled edward vander ball joins us.

we usually speak to him on anything to do with the markets. it will be bitcoin at 34,000. today he is a commodity expert on silver. the distinction is non-tangible or intangible paper assets, derivative assets versus the tangibility of a delivered commodity. why is silver different? edward: silver is a completely different ball game to all of the other markets, the single stock pickers that the reddit crowd has taken on so far, is a different ballgame. it is a far more concentrated market. if i look at some of the data for the average volume we saw last year, the volume we saw in gamestop, it is 200 times bigger. for the reddit crowd to push this price, they need so much

more momentum. some of that has come true. we have seen the silver price pop significantly, the biggest move since 2008. it is successful, but whether we take this to the next level, that is the question. tom: when oil went down lisa abramowicz ended up with two oil drums in her living room. she bought 2000 acres in the adirondacks. lisa: you are coming up this summer. tom: will the reddit crew end up with silver in the living room? eddie: the etf angle is similar to the oil story, but it is not the same. in the oil market you had exchange traded products backed by futures contracts. they could be a much larger disconnect. in the silver market, what you need is physically backed by

physical silver. some of the silver market question that but they question quite a lot of what happens in the silver market. that is the weak point the reddit crowd is trying to target. they are trying to say we want to buy so much etf that the etf providers are not able to source the physical market. we have seen a little bit of evidence -- we've talked to people who say they are selling bars at 70% -- at $.70 over the london stock price. we saw the price rise, but we are not seeing signs that could take this beyond wednesday. lisa: how much is the new silver hype reddit and how much is institutional investors jumping on this idea of social media -- i do not want to say manipulation -- but manipulation

for their own benefit? eddie: there will be some institutional and some professional traders that will have gotten behind this idea. i will tell you why i by the idea that it was a social media bid. over the weekend we saw the silver eagle sellout at a lot of places. coins and bars selling out. they were trading at a significant premium. trading at $43 an ounce. the second is places that offer trading to retail clients exclusively, they saw people sell gold in order to buy silver. there was definitely a retail bid. how much that has been amplified -- lisa: is there any rationale or reason behind what becomes the

next target of social media traders? eddie: silver is a poor pick. as a physical commodity, it is oversupplied and it has been for many years. palladium is a tighter market. if they had focused on that, it is a smaller market. it would've been easier to push. the second thing is there was no net short in this market squeeze. as for the rationale for the next target, this was not a good pick. that makes be questioned whether we can select it, or perhaps they go back to the equity markets, which they have had more success in. tom: thank you so much. eddie van der walt on the markets in london. appreciate it. let's get away from the fun and games for a moment and do something boring. i'm absolutely shocked apple computer will do a six tranche

bond offering. they have a 40 year piece. i can see your kids sliding into that. apple 95% equity, 4.8% debt. the debt cost is 0.9%, under 1%. these are odd times. lisa: my kids are putting their laptops on top of the oil drums so they can trade these apple bonds. apple does not need cash. they are borrowing money in the bond market because they can and because it is cheap, including a 40 year bond. tom: what are they going to do with the money? lisa: share repurchases, dividends, and whatever they want. the reason they're doing this is because they can. it raises a question about the efficacy of the low interest rates. what are we doing with this money? are we benefiting the economy? jonathan: -- tom: we are trying

to apply it. rarely jonathan ferro, but i try. i came up with this phrase, the pandemic partition. how is fiscal policy applied across all of society affect those who needed? lisa: the other issue, especially the 40 year bond, is the hedge against inflation on the part of apple which perhaps has a view into the future. the idea they are lopping and borrowing costs for decades. at a time of rapid technological change because it is that cheap. the question is who is right. is the hedge going to be effective, or will it be costly because it is a very low yield world for the 40 -- for the few seeable future -- for the foreseeable future? tom: most pros do not put apple in the financial engineering cubbyhole with other more distressed stories. this has been fun.

what a monday. ism at 10:00. jobs day on friday. very good. futures up 32. 21.49. coming up, the gentleman from cantor fitzgerald. good morning. ♪

jonathan: from new york city for our audience worldwide, good morning, good morning. "the countdown to the open" starts now. futures elevated, up .9%. we begin with the big issue. the retail frenzy has new targets inside. >> the retail trading frenzy. >> the game of long versus short. >> the short squeeze. >> gamestop, amc, blackberry. >> we have a new phenomenon, meme stock trading. >> they got organized and got into the same trade. >> does this change the fundamental drivers for the market? >> there has been this narrative about the establishment. >> the market will continue to be concerned about it.

volatility and buying is