transitory. we are still going to be a long way from our inflation and job creation goals. that was the point he kept emphasizing. the markets to turn around at one point when he suggested that it could take quite some time before the economy gets to more than 2% inflation level. he said if you look at the fed forecast, you could maybe take that out three years. here's what he had to say. chair powell: inflation to average 10% over time. the reason we want that as we want inflation expectations to be right at 2% and not below 2%. we believe we can and will do it. it may take more than three years, but we will update. at every quarter we update that assessment, and we will see how that goes. michael: he did not mean it would take three years, but when you look at the last forecast,

it did not show that they would be over 2% until three years out. as he said, that could change but the markets seem to take it as that is what is going to happen. the other thing happening now is that vice-chairman richard clarida is speaking. some thought he would want to walk back with the chairman said yesterday because of the negative reaction in the markets this morning but he is on board. totals are providing powerful support to the economy and will continue to do so as the recovery progresses. it will take some time for economic activity unemployment to reach last february's peak. the question now is what themars after today. matt: we have our new york chat group put together a chart showing unemployment and augmented unemployment, which is the rate powell and others have

referred to lately, the rate of 10%. a little more. it has come down substantially, but i guess they want to see that go down to 6%? is that a level you think the fed would feel more comfortable with in terms of augmented unemployment? michael: it is hard to say what they think augmented unemployment would be because what they are doing is taking the unemployment rate we normally talk about and adding it to people who would be looking for jobs or who would want a job. but they are not looking right now. if you are a restaurant server and no restaurants are open, you will not be looking for a job because you don't think anything is out there. if powell said we could see that comeback more quickly than we thought, that will come down fast. we may see a lower than augmented rate, as you put it, then 6.3%. it's hard to know because you don't know how fast people will

back to the labor market. matt: when you want to see the current u.s. gdp run rate, what is the best ticker for me to search on the bloomberg, and how are we doing right now? michael: you could look at gdp ct q ok, which is quarter over quarter gdp. right now we are looking at a reasonably strong first quarter, not as strong as the first percent in the fourth quarter, but mcwhorter is still young. we have seen more strength than we thought. a lot of people want to look at business investment and retail sales to see how the consumer and businesses are spending. what we've seen so far is that there has been spending on the business side to rebuild businesses and manufacturing going. on goods, it is the services part that is missing. keep an eye on that as people feel more comfortable going to bars, restaurants and shops and

on vacation. we will see a change in the economy. matt: i have been asking mike mckee this question for 10 years, looking at cqoq, right now, 2012 u.s. dollars, around 4% right now. so it is gdpcqoq on the bloomberg chart. i have been looking at the break-in. ilbb is the way i check that out. here is cqoq. you can see the spike we have had. we come back a little, but it looks relatively healthy, above the run rate. in terms of inflation expectations, we have chart 1276 to pull up quickly and check out . the five year breakevens are still up at relatively high levels. if you look at the chart, it is pretty alarming. i know the fed chair has been

saying this inflation is transitory and with a jump back in oil, and frankly, commodities and anywhere you look. i can bring commodity prices down substantially. michael: commodities are a leading inflation indicator because as companies ramp up inflation, they will demand more supplies as they rebuild inventories, so you do get some demand on commodities that tends to go away as supply becomes more available. we also see what is going on with energy prices, the weather-induced energy specs are going to go away so the fed is generally concerned about that. that is why even though their target is the headline number, they tend to look at the core number because they want to see in the services site, are we seeing wage prices that are driving up costs and that would lead companies to raise prices? if you are company and pay more

commodities right now, you don't raise your overall prices for fear of using -- losing market share. that is what they look at. if you take those back longer, if you think about where we were before 2008, that lowered economic activity tremendously. effectivity can pick up by a combination of stimulus and the overall healing of the economy in the fed zero rates, you would expect more inflation. right now we are looking at 2.4% over the five-year period in the five year breakevens and the fed is fine with that. matt: i just have to say, when you look at things like that texas grid that needs to be ripped -- needs to be repaired, you will need copper, lumber and other commodities. when you look at the electric car boom and you expect the stimulus bill to come out later on infrastructure, you have to think raw materials are going to be necessary for that stuff, too. i don't know how they can jack up the supply of those things

outside of oil. michael: you may see price increases for supplies like that. if you are going to rebuild the electrical grid or charging stations for electric cars as joe biden wants to do, you will need more copper, so copper may go up. that does not necessarily mean ice cream prices will go up. that is the sort of thing the fed wants to see if they are thinking of dangerous inflation, a broad rise across the spectrum and not just specific areas where there are shortages. matt: all right, always great to speak with you, mike mckee. thank you for joining, my own personal eco-and fed group on jay powell's testimony. let's get first word news with mark crumpton. mark: president biden's mama to lead the central intelligence agency says the president told him "give it to him straight on the agency's intelligence findings." william burns told the senate intelligence committee today that good intelligence is the first line of defense for america. he told the panel if he is

confirmed, the cia will deliver "without a hint of partisanship." the white house will send more than 2500 million free face masks to disadvantaged communities that bore the brunt of the coronavirus pandemic in the u.s. while masks are widely available, the white house said today that many low income americans still don't have affordable access to the basic protection. they will be sent to community health centers, food banks, and soup kitchens. the program will cost $86 million. new york city says 6% of its coronavirus cases are due to the u.k. variance, which is believed to be more contagious. city officials say the level is "higher than the lights, but that the number has remained steady in recent weeks." new york city's middle schools will return to the classroom on thursday. mayor de blasio has not said when they will reopen high schools. the hospital treating tiger

woods says he has awakened and recovered from severe injuries yesterday when his suv rolled over in steep terrain near los angeles.officials say the winding down hill road has been the scene of frequent accidents. there is no evidence he was impaired. the l.a. sheriff's office says woods may have been driving over the speed limit. global news, 24 hours a day on-air on quicktake and twitter, powered by more than 2700 journalists and analysts in more than 120 countries. i mark crumpton. this is bloomberg. ♪ want to save hundreds on your wireless bill? with xfinity mobile you can. how about saving hundreds on the new samsung galaxy s21 ultra 5g? you can do that too. all on the most reliable network. sure thing! and with fast nationwide 5g included at no extra cost. we've got you covered. so join the carrier rated #1 in customer satisfaction. and get a new samsung galaxy

starting at $17 a month. learn more at xfinitymobile.com or visit your local xfinity store today.

matt: this is bloomberg markets. i'm matt miller.

something that caught my eye today was hong kong traders shocked as the financial hub raised its tax on stock trades. for the first time since 1993, up to 13 basis points from 10 basis points but it changed to 8.8% and the hang seng fell 3%. this is a great chart, 1256 in the terminal, that shows the selloff. was that overdone as some banks, including ubs and credit suisse, strengthened the chinese position? backup north to the united kingdom, the city of london has historically been a global financial hub, but breaks it has thrown that -- brexit has thrown that stata center question. now many are saying rule changes

could make fax the answer. let's ask xavier rolet, the nonexecutive chairman of capital markets at short capital, why he thinks that is the case. thank you for joining us on bloomberg markets. what is it about fax that you think will be helpful? how do you attract them to the shores of the u.k.? xavier: thanks for having me on your show. thanks are actually not a new form. they are raising technology to be around for a number of years, but they serve a useful purpose, they provide and accelerate for private companies looking to raise cap through the markets. ideally if you are an entrepreneur and ambitious about the future and your company is growing fast, but you need new developments, traditionally you are looking at a year or two of

preparation or you can do a deal with a paid private equity investor. a very concentrated form of minority and sometimes majority ownership. and there is a very flexible way to raise potentially substantial amounts of equity cap. it is all whilst maintaining the motivation and that is what ambitious entrepreneurs want to it is agile. as you can calibrate to the level tolerated or accepted by the entrepreneur and offer institutions, particularly under the rules available in the united states, a peek into the company's future prospects through a disclosure of one element, which is called a public investment in private equity, and our financial jargon, and you can look at the

future elements of a business plan for the growth of the company that you are seeking to achieve, which i cannot do under traditional regimes. matt: we have seen pipe investments, for example, in churchill capital, cciv, doing a lucid deal, but when that was announced, the value of that dropped by 45%. we see a proliferation of facts in this situation where football stars like colin kaepernick, shack, -- a-rod, a baseball player, a basketball player, shaq all have a stack. aren't you worried this is an asset bubble or mania that has gone too far, too fast? xavier: it has been here for a long time. there is no doubt that last year

and this year, you should be accelerating ingrates. if you look at the macro picture, we are moving into a post-covid world. it does not feel like it yet, but it is undeniable with a distribution and technology plays an important part. this is new technology across the picture. investors are not getting returns in traditional markets like corporate debt. there is no yield. your earlier discussion about rates in the united states, it is a testament to that. if you want to make a bet without having to wait years for an ipo to come out, and with good companies, this is one of the ways to tap into the technologies of the future. as always, there will be deals that don't really belong, but that is the nature of free markets.

a few leave investors the freedom to make their choices, ultimately, the market will select the best outcome. there will be a few losers. that is how capitalism is supposed to work. matt: i want to ask you, -- 30-seconds -- is london a post-loser -- a loser post-brexit question mark will it lose the hub? xavier: i would say that rather than giving you a straight answer, which is what you probably want, i would look at it as a litmus test that in my view will give us a strong indication of the ability of the stability of london and the global expertise built over many decades to remain number one, to remain really at the top of its game. for example, i would look at the market share that london continues to hold over the clearing of global

over-the-counter derivatives, interest-rate swaps, the largest financial services or product in the world that exceeds $4 billion. london has access to a 19% market share. if that migrates, as i fear and expressed in 2015 and 2016, it could migrate to the states. i would look at certain key elements of strategically financial service infrastructure as an indication if you wanted to peek into the future and retain the number one spot or it will start declining. matt: we appreciate your time. thank you, xavier rolet, former ceo, now at short capital. we speak to the ceo of the largest waste management, solid waste company in north america, jim fish. this is bloomberg.

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matt: this is bloomberg markets. i'm matt miller. let's get to our guest right now. east management is not only the largest solid waste company in north america and recently reported fourth-quarter earnings and announced a boost to its quarterly dividend, but it is also a company based in houston, texas, and the heart of the disaster that we saw last week caused by climate change and a power grid that just cannot handle it. joining us is the ceo of waste management, jim fish. i am glad you could join us, and i hope everyone around you has gone through the disaster unscathed. tell us first about your situation down there in houston. jim: well, the state is largely

reopened now. lastly was a rough week and for a number of reasons. i know it was historically low temperatures, but it did not feel like it should shut down the power grid for as long as it did. we had damage in our own house. we are back up and running. hopefully our operations are back up and running across the entire state. matt: it certainly points out that a lot of infrastructure work needs to be done in that state. we know a lot of infrastructure state needs to be done in that country. it is something that the biden white house is keen on spending trillions of dollars on. what do you expect in terms of infrastructure spending and how helpful will it be to your business? jim: i think an infrastructure bill is a positive for the economy for sure and it is a positive for us. we are a big part of the

economy, particularly on the disposal and. an infrastructure bill of any kind would benefit not only the economy but uwm. matt: do you see any changes in your capex? you put out numbers last week and you are looking to invest 1.8 alien dollars to -- $1.8 billion to $1.9 billion. do you need to raise that up now that you've gone through this crisis? jim: i don't know that we need to raise it up until we see what type of bill comes to congress with respect infrastructure. right now we typically are replacing our cycle plans and we continue to do that, but we also have a portion of the that is growth capital. that could fluctuate depending on what goes on with the economy. we do think that we are reopening within wm and our

industry, we will be any fish areas of this big reopening coming. i think it is mirroring the vaccine, but i think certainly in 2021 and 2022 will be a reopening and we will be a beneficiary. matt: a lot of attention in the markets to rising rates. on your financing end, are you trying to get deals done now? jim: to finance our big transaction, we just took out close to $3 billion in debts a couple of years back. the treasury group is constantly looking at how we can manage our debts, and they've done a great job. the answer is yes. these are historically low interest rates, and we always monitor how to take advantage of that. matt: you mentioned ads. i wonder if we will see anymore m&a from you? do you see any other targets? do you want to grow further by acquisition?

jim: we are always looking at acquisitions. it would be tough to do a big solid waste acquisition at this point. just based on the history and based on how long it took us to get this deal done, i think a solid waste acquisition of large-size within the u.s. or canada would be difficult. however, that is not mean we are not interested in acquisitions. you like to grow organically, we are good at it, but an organic growth is important as well. matt: can i also ask you about recycling? when i see these copper prices going skyhigh, i think about the stuff you must collect could be valuable. jim: absolutely. i think we benefit disproportionately because we are the biggest in terms of recycling. it has been a tough couple of years, probably three years, in terms of commodity prices being depressed. now it looks like we are going into a longer-term, longer than

normal upswing in commodities. that benefits not only the traditional commodities you might think about but also recycled commodities. i think we will be a big beneficiary of that. we have already seen some of that in the back half of 2020. we are expecting a pretty significant upswing in 2021 for recycling and i think that continues. matt: jim fish, thank you for your time, the ceo of waste management. when we come back, we will talk to the new head of the wto at a time when this position is maybe more important than ever. we talked to dr. ngai's yukon geo ala -- dr. ngozi. this is bloomberg. ♪

mark: i'm mark crumpton with bloomberg's first word news. two committee level confirmation votes on president biden's pick

on budget director have been postponed. the votes set for today by the senate homeland security and governmental affairs and budget panels have been delayed. when a tells bloomberg that members need more time to consider the nomination. republicans and one democrat have said they will not support the nomination. the united states will buy for a seat at the u.n.' as right body to cement a return to the geneva-based panel that was shunned by the trump administration. secretary antony blinken says the u.s. needs to end what he calls the disproportionate focus on israel. in a video message, he raised concerns about countries, including myanmar, china and russia. the european union is catching up in securing vaccine supplies. the challenge now is getting shots into arms. they have shifted into higher gear to source covid-19 vaccines as an on track to immunize their population faster than anticipated eggs to new supply

packs and increased production -- anticipated to new supply packs and increased production. they estimate they can vaccinate 75% of their population to month sooner than expected. switzerland will allow nonessential shops, exams and sporting facilities outdoors to reopen next month, the first of several steps to unwind social distancing restrictions. with the covid-19 caseload falling, this was government faced pressure to allow businesses to reopen. officials urge caution on the spread of the new strains of the virus. global news, 24 hours a day on-air on quicktake and twitter, powered by more than 2700 journalists and analysts in more than 120 countries. i mark crumpton. this is bloomberg. -- i'm mark crumpton. this is bloomberg. ♪

greg: i'm greg balla. welcome to bloomberg markets. matt: greg, we welcome you and are bloomberg audiences. i am matt miller kathy rhodes doubles down. check tells bloomberg she bought 240,000 shares of tesla. will they continue to see outflows? we will speak to the income and general director of the wto, ngozi okonjo-iweala. can she heal the growing rift between the u.s., china, and we will bring you the latest on the inspection of boeing's 777 following the violent failure of an engine last week. the faa administer stephen dickson joins us later this hour. gerg: let's --

greg: let's check out the markets. we are in positive territory. i don't know if jerome powell is the market whisperer but he is calling people down for a second day in a row. even tech stocks are showing strength now. the s&p 500 up more than one full percent here in toronto. we have new highs with a gain of more than 1%. the small caps performing even better. i was watching some strength in the russell before they turned earlier. so much of the consternation has been about bond yields pushing higher. check out the u.s. 30-year yield , at 2.21. it has been a big change, but jerome powell is saying don't worry. he is getting questions on is the economy going to overheat? is inflation going to get out of control? on his part, he is saying i think we have a handle.

there has been turmoil in the equity space the last days. kathy would has -- cathy wood spoke to bloomberg radio yesterday. cathy: we bought a lot of tesla today across any strategy that holds tesla, and we will be publishing in a few weeks a report updating our thoughts about tesla and the potential of the ride-hailing service as a bridge to an autonomous service. greg: joining us with more is carol massar. you spoke with cathie. an interesting time given the moves we have seen. carole: hi, everybody. cathie wood started back in 2014. her tesla story is consistent

and once she has been firm about, especially when other market participants or investors were not keen on tesla for many years. we know there was a pre-volatile stock trade, and cathie and her team are consistent in terms of thinking tesla is ahead of the automotive market. matt, you follow the automotive industry. you know she has been front and center on tesla. safe to say that tesla did shakeup the overall auto industry. in terms of dips, that is what cathie sees as potential buying opportunities. she told us specifically she plans to continue to see those opportunities for tesla. she brought over 240,000 shares of tesla yesterday -- she bought to over 240,000 shares of tesla yesterday. cathie is someone, you know who she is and our listeners and viewers know her well.

it is about innovation disruption. she is looking for the companies shaking up the industry and thinking about where is the world going to be five years from now, 10 years from now? that is where it into play. matt: big on tesla, big on bitcoin and we saw also jack dorsey going in by $170 million of bitcoin yesterday. a lot of people were buying the dip. carol, i miss you. carol: the keep us apart. matt: we have to get together. we spent the entire global financial crisis together on wall street. i heard cathie wood outer a phrase to you that we must have heard 1000 times in 2009, 2010. this market is climbing a wall of worry. is that a concern? when people start saying that, i feel we might be in double territory? carol: we are, there are concerns about inflation. we need a little inflation.

this is the economy getting back to normal. her fundamental thesis is she believes in these companies and she believes these are ones that are going to be the big players going forward. it is not a one day or one week trade. when we see pullback, it is going to happen. tesla was up more than 140% last year. it is safe to agree that it got ahead of itself, even those who are bullish on the name. a lot of her funds have pulled back for the february highs. does not necessarily mean the trade is coming on. she has lost some assets, but she is not backing off on her thesis on a lot of the players. she is a backrub bitcoin, she says still very positive and happy to see a healthy correction. she reminds us no market is straight up. this means some individual retail markets are newer

to collection. how many have we seen in our time in terms of comverge? some of it is healthy. matt: yet, will bitcoin especially.it has been called the rubber bubble. i remember reporting on it at 1000 and fell to $75 a coin, to $20,000, two $3000, and now to 58. carol, i know you have to run off to radio. thank you for joining us. carol massar, cohost of bloomberg businessweek. tune into her radio program that starts in 20 minutes. tune in on bloombergradio.com or youtube. coming up, an exclusive conversation at a really important time for global trading with the incoming wto director general. she will give francine lacqua her outlook on the future of the body amid the pandemic and much, much more. this is bloomberg. ♪ ♪

matt: this is bloomberg markets. i'm matt miller alongside greg linnell. the wto greg bonnell. the wto has appointed the first woman and american to govern trade roles between nations. francine lacqua is standing by for an exclusive conversation with the incoming director general. francine: thank you, matt, greg, and thank you, dr. ngozi okonjo-iweala for joining us on bloomberg.

there are a lot of issues you will have to deal with, and you have all of the skills to be able to make the wto better. if you look at trade deals and arrangements on trade in general to keep the world order safe, can they avoid wars? dr. okonjo-iweala: absolutely. back in the old days i should say, countries used to go to war and trade is so important now, 60% of overall gdp. we need to have a place where we can discuss between countries and that is the wto. it is the one place in the world where countries can be together, come together, and to avoid trade wars. we should then translate and make use of it. francine: how do you keep the u.s. engaged in the wto without it becoming too political?

dr. okonjo-iweala: i believe that when i have listened to the priorities of the biden-harris administration, i believe some priorities they have with respect to trade should be about people, a better life of the middle class, for labor, and it should be an instrument to help avoid inequity within countries and between countries. i think some of these objectives and what the wto was originally set up for. if we keep those objectives in mind, we can arrive at the message and the rules to make us deliver on those objectives. i am looking very much forward to working with the administration to try to reform

the wto. i know they are interested in reform, and the wto needs to be reformed and rebranded. it has been stagnant and paralyzed for some time. we can do these reforms and change the wto. i believe the u.s. wants that. the wto has an excellent and talented staff. many ambassadors are doing good sessions and we need to make sure they have success. francine: where do you see commonality to reform the wto? what do the trade ministers tell you this week? dr. okonjo-iweala: there is a great desire to reform the settlement system with the bodies. of course, i know the biden administration still has issues with it as previous administrations.

and the way the body functions, all the trade ministers i spoke to, they all desire it and the ambassadors, as well, as well as the leader, to see a good reform of the system. will it be easy? the answer is no because if it were easy, it would have been done. i think we can put together an approach and work program that can bring everyone around the table. francine: what would be your advice to chinese officials as they navigate european and u.s. officials tell them they are not playing fair in the world economy? dr. okonjo-iweala: well, i would say that all of china and the u.s., they are all members of the wto. if we focused on using multilateralism to solve that problem, the wto is about providing a level playing field

and transparency and competition. china is a member. people can come together to strengthen multilateralism and solve our problems to the multilateral institutions and approaches. i think that could be a good way to begin to attack some of the issues that members, like u.s., china and others are worried about. francine: are the u.s. tariffs against chinese imports justified or should the biden administration get rid of them? dr. okonjo-iweala: well, you know, a good detail the wto does not comment on lateral issues, but what i can tell you is that if we focus on strengthening the wto, we can solve a lot of the problems between countries through these multilateral approaches. so it should be part of the

solution. i think it would help if we had a stronger deal and reformed it. that would also help china and the u.s.. both countries have benefited from a multilateral trading system that is fair, allows competition and provides a level playing field. we should aim to get that way again. francine: i know you have talked about faxing access and how important that is for all countries to have access. how unequal do you think the world will be post pandemic? what role does trade come into that? dr. okonjo-iweala: i think that the pandemic has underlined and exacerbated trends that were there before the pandemic. you have seen this pandemic has made us see inequality and marginalization within and between countries. it is a serious factor. post pandemic we are going to

see many countries will have a lot of economic growth and output. some poor countries will see poverty increase. and within countries, even in the u.s., we see populations are more marginalized. they are dying faster and don't have economic means. post pandemic, and even now during the pandemic, we need to focus very hard on how can these living standards and circumstances of those who are marginalized could be better so we can help inequality and trade? it plays a strong role. first of all, trade has a strong role in lifting restrictions so there is a flow of goods. even medical supplies and vaccines. we don't have supply chains to save lives. secondly, with respect to the

economy, trade can also play a role. we should look or areas where we can liberalize, and encourage the free flow of goods, whilst at the same time helping countries set up some of their own industries and exports to be able to build that. i think we can do both, it is not one or the other. francine: when you look at the role of the wto and how china can actually change what we have seen the last couple of years, should china give up its special rights and trying to seek negotiations? -- in currency negotiations? dr. okonjo-iweala: francine, this is a big issue for this question, debate and resolution at the wto. it is not for me to say that the country should give up one or the other but the issue is to recognize that some members feel that having china as a developing country creates an

unlevel playing field. others feel that china is justified in calling itself a developing country. that is why there is an issue. we need to bring it before the wto and have members discuss with each other and find a way out so every member can feel that the balance of responsibilities within the trading system is proper, and that then they have the incentive to remain as a member of the wto. even for the private sector, a functioning wto that encourages competition is good for business all around the world. that is what we want to see. francine: do you worry organizations like the wto, the g7, and even the u.n. or nato risk to be perceived as too anti-china? dr. okonjo-iweala: look, let us say that multilateralism around the world, all the institutions

you mentioned, are multilateral institutions. there has been multilateralism that has taken a blow in the past few years and particularly in the last four years. i think we need to renew it. what is very, very interesting around the world and hard to hear his president biden talking about -- and heartening to hear his president biden talking about returning to multilateralism as a way for countries to talk to each other and solve problems. the eu in developing countries and developing markets, many want a strong multilateral system. i think that the way to resolve issues is for countries to rally around this. francine: do you think wto proceedings need to be more transparent and open to the public to regain confidence? dr. okonjo-iweala: wto

proceedings, you know, wto is about transparency. there are really not that many things that are hidden. i think what the issue is is to bring the purpose of the wto back so it is not just about negotiating. subsidies and negotiations, which is supposed to be about contributing to the developmental angles, this negotiation is very important. it is the likelihood of many small farmers and people all over the world, as well as big ones. it has been going on for many years. and we need to bring it to a conclusion because this is very important for our livelihood.

this is one of the things that we need to do and keep it in front of us. who are we negotiating for? why are we negotiating? if we keep that on front, we will have our answer. francine: dr. ngozi okonjo-iweala, the incoming director of the trade director of the wto, thank you so much. greg: thanks so much. that was francine lacqua with the incoming director general of the wto. everyone has seen astonishing footage of that jet engine on fire. i cannot keep my eyes off of it. we have more on that story from that triple seven boeing plane, the faa ordering high-tech inspections of those engines per here to discuss, faa administrator stephen dickson. let's start there. this is not a boeing engine, but it is not a boeing plane and the

what we hope to achieve with these inspections? steve: thank you. it's a pleasure to be with you. i think the important thing is is that the safety is always the faa's top priority. this directive we published and pushed out to the aviation community yesterday evening requires all operators of the airplanes equipped with this version of the contract and whitney engine -- of thepratt and whitney engines to inspect the blades before flights. they are taking off of the engine individually. there are 22 on each engine. it is an imaging process that they go through, and it takes about eight hours to complete the inspection of each plane blade. we will take that campaign on the entire fleet, and then as the blades are inspected, and the airplanes will begin to be

returned to service. matt: tell me, what this proves is the boeing 777 is built quite well. if an engine can explode, burn and then shake like that on a plane without bothering it, it is amazing they landed safely and no one was hurt. are you, though, reviewing the engine design standards? is this more important than worrying about the plane right now? steve: well, let me address your first point. i think in terms of the safety of commercial air travel, it is the safest form of travel in human history, and it is not even close. on a u.s. commercial jet and u.s. commercial space, they are aware of the improvements in safety made over the decades are incredible really. the faa requires twin-engine jetliners to be certified to fly

on one engine. they have redundant systems. as you noted, this airplane did that successfully. the crew performed beautifully by all indications, and there have been other engine shutdowns over the years that have occurred, even out over the ocean with very little drama due to the way that these airplanes have been designed. we are obviously taking this action on the engines to make sure that they meet the reliability standards. the pw 4000 is a proven design and has worked well over the years. we do feel we need to revisit it at this particular point. matt: truly amazing stuff. stephen dickson, thank you. this is bloomberg. ♪

mark: i am mark crumpton with first word news. the white house will send more than 25 million free face masks

to disadvantaged communities that have borne the brunt of the pandemic in the united states. while masks are widely available, the white house said many low income americans do not have affordable access to this basic protection. they will be sent to community health centers, food banks, and soup kitchens. it will cost $86 million. william burns, vice nominee to lead the central intake agency, so the president told him to give it to him straight. that was the first thing he told me when he asked me to take on this role he said. he continued and said he wants the agency to give it to him straight and i pledge to do that and defend those who do the same. >> if confirmed, i promise to do all i can to earn your trust and to be a strong partner. i will seek your advice as well as your consent