>> the outlook is still very much a fixable story. >> people are trading big morale numbers are >> firms do not have as much pricing power as they used to. >> firms are in danger of markets overheating. >> a lot of u.s. stimulus is not stimulus at all. it is an antidepressant. >> until it is clear we are out of the woods, i think we have got to be aggressive. tom: good morning, everyone. "bloomberg surveillance." jonathan ferro, lisa abramowicz,

tom keene. we welcome all of you across the station, on radio, on television. interesting day. chairman follow to speak this afternoon. little certainty in this market. futures can we be certain paul waul not talked inflation spiral? jon: you cannot be certain of anything. i will allow lisa to talk about the so-called deflation spiral, but there is already pushed back. the fed has put so much pushback. we will not step in, allow forces to take hold, allow the trend to persist for a little bit. tom: what is so important, there is not a single reaction function -- i am going to go to howard ward and that brilliant conversation yesterday -- the application and mystery of the new technology on all we talk

about on radio and tv every day. jon: the underlying inflation dynamic is one part of it, but great -- great story buried. it is the asset purchase program we don't have the guidance still, and i think it is needle in a way every time they speak. mr. dudley, the former new york fed president put out his piece on bloomberg opinion and he is raising questions everyone is asking -- the risk -- the probability -- if the probability materializes, and most people believe the fed won't react with short-term bursts of inflation. tom: with respect for your concern, we make jokes about inflation spiral -- we usually don't do that on radio or tv, but when we have a simulcast, we're all deflation spiral. lisa, the inflation-istas have gotten it wrong so many times

since 2007. lisa: that is what i want to say. it is not massive, but it is growing between the market expectation of higher inflation and the federal reserve that state -- still sees these disinflationary pressures driving and suppressing inflation over a longer time -- the older population, more debt. you have these contrasting narratives, even as you have economists like bill dudley, formerly of the new york fed, coming out and saying this time is different -- this recovery will look different. the recession was different than 2009 and there was a different amount of fiscal, monetary stimulus pumped into markets. this is the question -- is this time different and will we get inflation so many people expect? tom: help me with the data -- what you see in the bond market? i see a higher yield. jon: a little lift. 100 1706 is where we sit right now, of a basis point. i find the conversation slightly

ridiculous. in the u.k. we saw inflation of 3%, 4%, 5%. governor king looked through it, governor carney looked through it. i understand the source of the inflation is an issue, what are we talking about right now? a bond market looking at 2% inflation? rates need to be where they are now for us to think about 2% inflation, and that is a problem. is that a problem? i don't think anyone on the fed believes that is a problem. that is a goal. lisa: it is not necessarily where inflation expectations are, but the pace of their increase, and the fact there is an accelerating idea taking hold that inflation risks are picking up more perhaps than people are pricing in, and that idea, i think, is looking like talking about, not the idea of 2% inflation itself. jon: that sets it up nicely and we are thrilled you are all with us. seema shah joins us.

the irrefutable fact, the big negative, interest rates of europe are coming up your we are seeing a lesser like it if interest rate drama in germany as well. what does that signal? seema: i think it is telling us -- it varies on the recovery in place and there is a debate on what will be the right path for a number of countries in the future. my personal position on this is it creates more problems than it solves. you need to have strong economic recovery coming through fundamentally. then you see the bank of england, which is still in consideration of the one thing i would say is when we look at the u.s., what we have heard repeatedly from the federal reserve, this is a last resort, raising rates will not come unless things are looking really bad. jon: i wonder if it comes down

to antiquated inflation target. how important is the fx channel for central banks? let's be clear about it, the fx channel is the reason the ecb went negative, the reason the s&p went negative, the reason why most central banks went into negative territory -- to do something about the currency because they are nearly obsessed with a mandate they have not been able to hit. how important is the fx channel for the broader economy? seema shah i think you are spot on there. i expect there spoke to you both about a year ago when we were talking about the ecb and exit rates and we were almost getting to the point where there will be a currency war because each central bank needed to have the currency that much weaker and the weak u.s. dollar story, i think there will be a function for the u.s. as they start to think about what more can they ultimately do with monetary policy at this stage? if things get worse -- i know that is not the central story, but if things were to get worse, what else could they do? we know from a monetary policy

the -- monetary policy stance. lisa: weigh in on the idea of when the fed has to worry about inflation? are people getting ahead of themselves when they start worrying about 2% expected inflation over the next 10 years? seema: i think it is. we are certainly in the camp of we expect inflation to be higher this year and there are a number of reasons. i think the deadly piece on bloomberg said sysop -- dudley piece on bloomberg sets this out very well. inflation is created by supply shortages and ethical be the key driver. it is something they are likely to look through. we have already had, time and time again, the fed wants to give inflation a chance to pick up, give the economy a chance to run hot, and for the labor market to be able to push the unemployment rate down to pre-pandemic levels. to me, we will see higher inflation, but the fed is not going to act for a while longer,

but we do need to here is some additional clarity -- what is the level, 2.5%, or higher. what are we expecting to see? jon: what do you want to earn and that environment? seema: in a higher inflation vindman, it is a cyclical environment. -- environment, it is a cyclical environment. i heard you talking about the pay potential -- equities did really well because it is a growth story. if we are looking at what is keyed into cyclical, financials --these are assets that will perform well in that kind of environment. lisa: how concerned are you about big tech in the valuations there if we get a higher rate and a fed that starts to back away slowly? seema: that is one of the main questions i get from clients these days. we do like big tech, and the question is high valuation. this is a fundamental story for

big tech. if you look at any company through this pandemic that has successfully pivoted, it is because of technology and even after the pandemic we are not going to go back to a time when technology is not an essential part of the business. big tech companies, the ones that are invested, should continue to perform well. i don't think we should have as large an allocation to big tech as we did, because you get to the inflation environment, you see higher bond yields. i think it deserves to have a key portion of the portfolio. jon: the last couple of months, you start to hear a little bit more about the ftse 100. where does it sit in the international portfolio right now? tom: great question. seema: i have not like the u.k. for a really long time. tom: neither have i. jon: thank you. seema: i think going forward with the taxing news, it is

rolling out quite well, and there is a lot of opportunity and from a relative standpoint the u.k. is attractive to many other regions, but for us it is the time to gradually start increasing exposure to the u.k.. jon: seema shah, thank you. tom, do you want a final word? tom: no, but i'm glad you brought it up. when is the last time we paid attention to the ftse? jon: we have not for a long time, but since the end of october it is up 70%. the individual waiters, is at the top, unilever, hsbc, but think value on a global, cyclical recovery. tom: start of the day from chris perrone, wire door, the russell 2000 is 40% plus -- who i adore, the russell 2000 is 40% plus above its 200-day average. jon: the rally we have seen in

small caps has been tremendous. tom: can we call it the biden rally? jon: i did you have to collect the pfizer beyond tech rally. biontech rally. lisa: these are also being held by the backdrop of stimulus. it makes a lot of sense as long as we end the pandemic. jon: could plays into the reflation theme. tom: i'm saying there is a moonshot, jpmorgan, november 6, three days later we figure out biden is going to win, of those the waves. jon:

about a month after it was good. do they do this in the united kingdom --if -- wins we will all die. jon: they did that with mr. corbyn. doesn't it tell you about the behavior, everything is bullish -- the vaccine is here, will reopen, bullish. tom: the vix comes in nicely. futures up one/three of 1%. this is bloomberg. ritika: with first-word news, i am ritika gupta. house democrats is dramatic video of the storming of the capital to begin donald trump's second impeachment trial, but they are far from one enough votes. impeachment managers lament their opening arguments, trying to convince the senate to convict the former president of disrupting -- encouraging a mob to disrupt the senate. california has passed new york to become the state with a large number of coronavirus deaf spirit more than 45,000 people have died -- california has averaged 433 deaths a day over

the past week. general motors posted better-than-expected earnings in the fourth quarter due to strong performance by gm's truck's and suvs. the automaker's forecast for this year missed estimates and gm expects the short-term earnings impact because of the global shortage of semi conductors. coca-cola posted sales that beat expectations, giving the soda maker a boost after a year of lockdown at restaurants and stadiums. meanwhile, they reinstated guidance for organic revenue growth in the high single-digit this year. global news 24 hours a day on air and on bloomberg quicktake powered by 2400 journalists in more than 120 countries. i am ritika gupta. this is bloomberg. ♪

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>> we can help you when you are pushing policies that show you

believe in people, that you want to empower people, so they can contribute and succeed, and when you have policies that we believe will stifle people and keep them from realizing their potential, then we will oppose that, and that is what we have done with every president. tom: charles koch there of coke industries, the chairman and ceo. from bloomberg studios this morning, alongside tom keene and lisa abramowicz, i'm jonathan ferro. your price action -- 12 minutes away from a cpi print. a lift on treasury yields, of a basis point and change. the fx market, a little more euro stretched -- up almost one/10, and that has been a story over the last three months -- and equity market that gets into rally mode. of 13 points on the s&p, up about 1/3.

tom: a good time to speak to david rubenstein, david, your conversation on here too. with mr. p --eer to with mr.peer koch -- it is the actual action they have done in conservative america -- what will they do in the debris of donald trump -- will they support trump or take a different path? david: it is a mistake to think charles koch and his supporters were donald trump supporters. he never gave him any money and it never meet with him. -- and he did not ever meet with him. he believes he has certain principles to empower people and that is what he has been doing in his country that company and philanthropy. he is 85 years old, running the largest week privately -- largest privately owned company in the united states and he says

the biggest mistake he made was getting involved in partisan politics in 2010. he was vilified for that, got out of that, and is spending his time giving away money and running away his company and his main point is in power people from the bottom -- don't rule from the top, let people realize the potential working from the bottom up, and that is the principal, he said, that enabled him to take a company with $12 million in revenue to a company with $120 billion in revenue. tom: cannot say enough about it, and have to point out the dixie cup franchise, which is part of our childhood. david rubenstein, there is a libertarian streak here -- does mr. koch believe the libertarian tone can survive in the new republican party? david: he did not address that because he tries to not be involved in partisan politics. he said to me to my surprise i've never been to the white house because i only care about

substance and people want me to come for show. i don't want to get involved in politics, so he has never been to the white house and never met a president of the united states and washington, d.c.. it is not come to washington. lisa: it is fascinating, your role interviewing him, cofounder of one of the biggest private equity firms out there -- wall street used to lean republican. does it still? david: i would say traditionally wall street was traditionally more republican than democratic, but i would say that has changed as private equity firms and hedge funds have become more important in many of them are populated by the will that tend to be democrats. lisa: going forward, does wall street, the people you speak to, do they support this $1.9 trillion support package or stimulus. do people think it is too much? david: i would not say i have done it cold, so i cannot really say, but i would say generally people are comfortable you have

someone who seems to have a plan that does not bounce around as much and as a teen seems to be cohesive -- whether it is 1.9, one .5, or 1.4, i think it is less relevant, but i think everyone in the business world thinks something about one trillion is necessary to keep the economy going. it is clear the virus is not going away that quickly because of the vaccination problem. most people think we need another stimulus. the president does not really know if it is 1.9, 1.5, but it is definitely more than $1 trillion. tom: david rubenstein, you are legendary and capital formation, and the radar up on this spak craze -- is it a frenzy? david: i would say it is probably a phenomenon that is not going to go away. like anything that happens, you can get accesses, and every spac

does not work out, but it probably won't go away anytime soon. jon: thank you for joining us. coming up on this program, eight minutes time, we will have cpi. michelle meyer join us. reaction to inflation and just around the corner. tom: a big deal -- the old-line it works great on radio -- two lines, service sector line has come down. goods producing inflation has come up. the phrase we using economics are the two lines are kissing right now on inflation, and you really wonder which direction they are going to go on. jon: prices have been the focus in china. manufacture this manufacturing has been bubbling. we start to export some of the

inflation out of china to elsewhere. lisa: it is interesting this is coming from the industrial side, even in the chinese data overnight. we did not see the similar pressure and consumer prices elsewhere. there is this feeling that it is not a consistent gauge. what i'm watching for going forward is signs of there is some sort of structural increase in inflation. how do we determine if it is transitory, to use your word, determine there are longer-lasting strains that this time it is different? jon: it is up to the banks. transitory gives them something to hang their hats on. it is an excuse to look through this. by definition, everything is transitory, right? tom: it comes down to wage. jon: by definition, it is transitory. the cycle is transitory by definition -- it comes, it goes. you have the contraction afterwards. tom: back to the study of the united kingdom in the united -- in the 1930's in the 1940's --

it is all about wages. do we see legitimate wage benefit inflation forward? i don't know i you do that with 12 million bodies. lisa: chairman yellen learned -- jon: chairman yellen you learned a difficult lesson. you can take inflation down more than they did. as johnryding mentioned, those get hit on the downturn first, and come back last. you have to make sure the only deficiency left in the labor market, the only slack are structural, not cyclical. she is now secretary yellen, and determined not to make the same mistake twice, and i imagine chairman powell is in the same place. tom: there is an analog here to the bank of japan -- they made a

mistake and they have never forgotten it. jon: more still to come. that is to come. michelle meyer joining us very shortly appear futures of 12. this is bloomberg. ♪ (announcer) back pain hurts, and it's frustrating. you can spend thousands on drugs, doctors, devices, and mattresses, and still not get relief. now there's aerotrainer by golo, the ergonomically correct exercise breakthrough that cradles your body so you can stretch and strengthen your core, relieve back pain, and tone your entire body. since i've been using the aerotrainer, my back pain is gone. when you're stretching your lower back on there, there is no better feeling. (announcer) do pelvic tilts for perfect abs and to strengthen your back. do planks for maximum core and total body conditioning. (woman) aerotrainer makes me want to work out. look at me, it works 100%. (announcer) think it'll break on you? think again! even a jeep can't burst it.

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jonathan: cpi data about 10 seconds away. good morning. equity futures at an all-time high. the data dropping any second. michael: good morning. it's been a long time since the cpi was the focus of wall street. we are looking at a .3% increase for the month over month number, which is what was forecast by the economists surveyed by bloomberg. gasoline pushing up the headline number. up 7.4%. accounts for most of the gains in the index. the core rate was unchanged in january. the forecast was for a .2% rise. that suggests we are not seeing a major inflation problem at

this time. apparel, medical care, motor vehicles increased during the month. recreation, used cars and trucks, airline fares, and new vehicles declined. the headline up 1.4% on the year. the cpi core rate up 1.4% on the year. that is unchanged for the headline. it is a two-tick down number. no inflation yet but it is coming. tom: who says it is coming? how can you tell it is coming? michael: you want to look at march, april and may when we had deflation. when the cpi was below zero each month. those will fall out one by one. the percentage gain from the bottom will be much bigger. tom: we look at inflation because the calendar is moving on? michael: when i came here years ago you said they will be no

math, but there will be math. the argument the fed is making an jay powell will probably address this is it is just math. lisa: seriously? michael: bill dudley out with a piece on bloomberg opinion suggesting there are reasons to be worried about inflation. he goes where larry summers went. with the big stimulus coming and with the possible rebound in demand as the pandemic goes away we could have an inflation problem down the road. lisa: it is interesting you mentioned that. bloomberg economics said the stimulus would be short-term, or transitory inflationary and not necessarily long-term. people saying a confluence of events will lead to a higher inflation. when you survey your peers and economists, what is the consensus right now? michael: we are going to see a temporary spike in inflation. the forecast is in the second

quarter, the year-over-year rate goes up the 2.7%. by the third quarter it falls to 2.3%. that puts it in the range the fed has been talking about. the question is does it stay there? that will be the harder thing to know until we see what we get out of stimulus and how soon the pandemic in. -- ends. it is less a question of do we have inflation, and how fast and how far does it go? tom: michael, thank you so much. jonathan ferro. jonathan: small downside surprise on the year of your figure. core as well. yields rollover a little bit. one thing i can't reconcile -- work this out with me if michael wants to weigh in. the complaints about this package is it is short-term. it is all just demand-driven stimulus and does not invest in public investment and

longer-term economic outcomes. why are we sitting here wearing about inflation statistic and persisting inflation over time? that is just a short burst of demand. reconcile those things for me. what are they worried about? they complain it is calibrated the wrong way and we should be worried about inflation. michael: wall street is looking for reasons that go beyond the stimulus package. the rebound in demand. the possibility of supply shortages as people come back. not just things like semiconductors but people want to go out to restaurants and spend money but the restaurants are closed. there are going to be price pressures going forward. the question is, do they persist? we do not know until we know the size of the package and how fast it gets out. tom: michelle meyer joins us now from bank of america. we went through it with her colleague a couple of days ago. 4% gdp plus 9% gdp equals 13%

gdp. you have that big fiscal pop. good morning, professor summers. do we break inflation higher or get a physical job done? -- fiscal job done? michelle: certainly in the near term there is a big push into the economy as a result of stimulus. there is a lot of money already and more is to come. that will generate higher consumer spending. as mike outlined quite clearly, for certain industries there will be constraints. to understand whether or not it is sustainable turn higher in inflation there are two critical employment -- components. it will move transitory inflation shock to something more permanent. if people reset expectations and the pricing power picks up on the business side and people are

willing to spend more because they have cash on hand, it feeds on itself. the critical factor is the labor market. there is a demand push that helps bring the unappointed rate down more quickly. that will provide persistent income support for the consumer through wage growth and labor. lisa: we keep referencing this bill dudley column. i went your view on specific points. what he is saying is it will cause higher inflation. pc's demand picking up at a time when supply is reduced. restaurants have gone out of business. a lot of small businesses have not recovered. given the fact there are fewer establishments, they can charge more because they will be an influx of demand. do you see that as a potential driver of inflation? michelle: that's a very fair argument you have where demand for certain activities picks up

quickly and you don't have the supply. we saw it in the reverse on the -- back in the spring and summer when demand was picking up impressively for autos, appliances, electronics and there was not enough supply initially, that created a one-off level shift higher in goods. this implied demand balance should be somewhat temporary. the demand will pick up for things like restaurants, and capacity will come back online over time. that will create a little bit more of a feeling on the price pressure. to make it persistent it has to be resetting expectations and driving stronger labor fundamentals. jonathan: the only question that matters is will the fed be bold enough to look through that burst? do you think they will be? michelle: i do. certainly the base effects in the spring, they are ready. they have been talking about

them. it is simple math when you look at the year-over-year comparison. the fed is going to do, rightfully so, looking at the bottoms of analysis of inflation. where is inflation picking up on a sector basis? can they make the argument it is a short-term supply issue versus something more persistent? if they get a notable increase in these measures or something like shelter, which is more of a function in the business cycle, they might anticipate a higher trend of inflation. they will look at the components to understand if it is or not. jonathan: the fed is telling you what is going to happen, and it's probably going to happen. this is what happens when we reengage with the economy. they are telling us what they will do when this happens. we are still going to be having the same conversation for nine months. tom: this is to the djokovic earlier about the inflationistas. i turned to the measurement of

wages and benefits. how do you have wage inflation with 9 million bodies out of commission? if you extrapolate out, it is more like 11 million or 12 million bodies out of commission. where does wage inflation return? michelle: that is hard understand, the wage dynamic. aci is a preferred measure. better in real time than average early earnings. there is no perfect measure. it has been -- there has been such dislocation in the labor market. the lower paid individuals have experienced more job cuts as a result. you see aggregate wages. in the meantime we have to wait it out until we have a more comprehensive and broad-based labor market recovery to properly understand the dynamics. jonathan: michelle, glad to

catch up is always. michelle meyer telling you what is going to happen this year and how the fed will respond to what happened. tom: she was so polite telling me i did not know what i was talking about. jonathan: it is not unusual. tom: we went from 2.75ish. rolled data 2.5. -- rolled over down to 2.5. jonathan: she is telling you to look through it. the message is loud and clear. lisa: one think we will hear more about is at what point they start to worry about the consequences of higher asset prices without a structural shift higher in base inflation. i don't want to be gloomy. this is the unknown. at what point do we see -- jonathan: a subscriber wants me to read this out but not who it is from. the fed can see inflation with the hubble telescope.

they are pestering me now instead of tom. lisa: thank you. jonathan: thank you. you know who you are. record highs back on track of the opening bell. coming up on this program, mary barra sitting down with david westin. good morning. this is bloomberg. ♪ ritika: house impeachment managers will make their opening arguments. they wanted to show the president urged a mop to storm the capitol. they will need 17 republicans to cross party lines. trump's defense team says democrats are trying to squash a clinical rival. donald trump has asked tom beach

to let him stay full-time at mar-a-lago. a lawyer says he should be allowed to live there since he is an employee of the private club. local residents have argued he should not be allowed to live there firmly because of zoning rules. a house committee advanced a portion of the $1.9 trillion stimulus package that include a minimum wage increase. the education and labor committee approved raising the minimum wage to $15 an hour. republicans objected and cited a congressional budget office study saying more than doubling the minimum wage would cost 1.4 million jobs. the controversial former pro football quarterback: cap nick has joined -- colin kapernick has joined the spac frenzy. he has not played since 2016, the year he lost player protests during the national anthem to bring attention to racism and police brutality. in the latest episode of "studio

1.0:, emily chang sits down with satya nadella. one topic for discussion is antitrust issues facing big tech companies. >> you need to have a business model that is aligned with the world doing well. that is what is being litigated. there are certain categories of products for the unintended consequences of the growth in that category or lack of competition and it creates issues --in it creates issues. what is the fix for that? i don't think it is battle competition is good. competition that is large and has high scale, the unintended consequences cannot be dealt after the fact and need to be dealt while you are scaling. ritika: that was satya nadella.

you can catch his occlusive interview with emily chang. 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 am ricky to go to -- ritika gupta. this is bloomberg. ♪ >> the forecast has not improved. at the moment where we are at it is probably 2023 when we get back to 2019 numbers. tom: charlie douglas. i like the guy. he is a real operator of airlines and has a great challenge in abu dhabi versus emirates andy but -- and dubai. david westin joins us now. it goes to the heart of the matter.

i can't think of anybody i know more qualified to talk gm and all the rest of it. how is gm different now from what you remember growing up in the great state of michigan? david: it was all internal condition -- combustion engines. tom: which one was it? david: my father worked at ac spark plug. tom: it's amazing. i'm a fossil on this. you have three teslas in the garage but she hit a home run with the super bowl led. -- ad. david: i have to ask what she has against norway. what is her problem with norway? now is our great pleasure to turn to the chairman and ceo of general motors, mary barra. thank you for being with us. let me start by saying,

borrowing from queen elizabeth, this could have been -- repurchasing to make ventilators. it wasn't. you met expectations fourth-quarter. how did you do it? mary: it was everybody coming together. it represented the great work and teamwork at general motors with all of our employees, our suppliers, our dealers. we kept our employees safe but also protected our customers and protected the business. i could not be more proud. david: your biggest problem was manufacturing enough of those trucks and suvs to fit the demand. we surprised how fast demand came back? mary: we have a very strong full-sized truck and suvs we launched on time last year even with the pandemic. it speaks to how popular the truck is. we have very different models that reach different segments. we've been able to grow share.

david: investors say, what have you done for me lately? let's look forward to 2021. you project a strong year even though you have headwinds from things like shortage of chips. mary: we think we will have a positive year in 2021. not only from a financial perspective but they continued acceleration of our ev and av business. we are excited that we will be launching the chevrolet volt evu, a great vehicle. that is days away. later this year we will be serving the market with the gmc hummer ev, and the cadillac shortly after that. as well as tremendous progress made from an autonomous perspective. we are excited about the year, the growth opportunities we have in front of us. it is a year of execution. the issues with chips is

short-term and we will work through it. david: are there things you can do to get an advantage over other automakers? mary: it's an industry issue. we are working everyday with a cross functional team to look at opportunities to minimize the impact. we will continue to do that. we did provide the guidance with a fairly wide range. we will work and provide updates as we go forward. david: you have a lot of ev models. you are investing $27 billion for a multiyear plan. as a practical matter, what are the difficulties in that plan? things like battery sales. some of the lithium issues. do you anticipate problems with the supply chains into your battery operations? mary: we are one of only two automakers that are doing cell

manufacturer in this country. we are doing development on our own. as well as partnering with startups. and our joint venture with lg that is development and production. we are working hard to make sure we have all the cells we need. we worked to make sure we do because, as we have talked about, we are accelerating 30 by 2025. we are continuing to work it but we have a strong plan. david: i did some rough math. if you made all your vehicles electric vehicles, he would be using more than the total amount of lithium produced in the entire world by yourself. does that mean we will have less lithium use or new sources of it? mary: we are working on securing the supply we need. we are working on development that allows us to use less

precious metals overall. it is kind of a yes and, the things we are working on. david: when we talk about things like the bolt, questions come up a profitability. daimler said by the end of the decade they will be making as much or more out of electric vehicles as a do combustion engines. what is your profitability path for electric vehicles? mary: we set a goal to have margins from the auto business be at 10%. that is not changing. we don't talk about individual product line profitability. with the progress we are making with the work we do with battery development, from our first generation where we get to --, we see a 40% improvement and are working on the next generation technology that should take it to a 60% or more. i am confident as we move forward and continue to make advancements in the cost and

energy density, that will allow us to have margins similar to what we have today as we get into the mid-and later part of the decade. david: how much help to you anticipate getting out of the government? the president wants to go to admissions-free vehicles quickly in the government fleet. he wants to replace them all and create one million new jobs. will that help your move over to electric vehicles? mary: understanding ev's -- we have to work together to make sure we have a whole ecosystem that encourages ev adoption. we need to make sure there is the right charging. that is why the work going on for infrastructure is so important. we are having regular conversations with the administrations and congress to make sure they understand all the pieces that need to come together to support an all ev future. david: we watched the super bowl and will ferrell. what do you have against norway?

there seems to be a grudge with norway? mary: they have the highest ev adoption. it is driving awareness. we are pleased with the ad. it resonated across so many groups, especially millennials and how they look at the future and to drive that awareness is important. i am virtually 100% finished. i have a natural affiliation with the scandinavian countries. it is more highland good norway has done and making sure people understand ev's are very important for our future. david: i am quarter swedish. i was happy that will ferrell ended up in sweden at the end. that is mary barra, chairman and ceo of general motors. tom: that was a brilliant ad. the university of norway came out with a spoof on it. audi of norway released one of the game of thrones with a

directory but. it's about adoption of ev. david: have you seen the twitter exchanges between the prime minister and will ferrell? tom: it has got to be the biggest effect by super bowl ad in ages. this is way too much stock market talk for weston. lisa: we are seeing a bit of a lift. the bond market's reaction to the cpi data is interesting. yields are lower on the day. there are no signs we are getting runaway inflation. i think this is fascinating, especially as people worry about overheating. i want to go back to the bill dudley column. something he talked about, the idea of an inefficient reallocation of resources. what happens when all of a sudden people don't go back to offices and we have a rejigge

ring of the way the business world is run? how much less productivity leads to inflation? we are still in the pandemic, yes. but is the time really different now? tom: the productivity mystery out there with technology applied across all this. gold, 1852 and ounce. -- an ounce. bitcoin. i will call that level at $47,000. the debate is tangible. it will not go away. lisa: jp morgan said it would be unlikely for another big tech company or big corporation to come up with a similar move as tesla did. except bitcoin is a payment, but also invest reserves in the crypto asset. tom: later on today, coming up

on the impeachment, there is 11:00 a.m. or so. lisa: who is taking the leadership of the republican party and how much will be republican as that wasn't repudiating president trump. the fact this vote is going ahead is politically important. tom: let's go through it now. futures up 20. we are not in the 4000 on spx. vix with no information right now. coming up, satya nadella. this will be interesting to say the least. the chief executive officer of microsoft. an extraordinary success across his tenure. there is the now what for big tech after a spectacular 2020. you will see that in the 5:00 p.m. hour.

currency markets. chairman powell, the marquis speech this afternoon around 2:00 p.m. stick with us on radio and television. this is bloomberg. good morning. ♪

jonathan: the can down to the open starts now. equity futures with the left up. let's get straight to it. with equity markets at all-time highs, chairman powell taking center stage. >> this is a very supportive environment. >> it all boils down to how long we will see this accommodative monetary policy. >> we could see inflation run hotter. >> we don't see any reason for powell to change the narrative. >> howdy markets adapt. -- how do markets adapt. >> you have to be worried at these levels. >> i would shrug it off. >> fiscal authorities with their pedal to the metal. >> the fed will have to pay. >> the markets are not pricing it in. >>