all while controlling stress and emotional eating. at last, a diet pill that actually works. go to golo.com to get yours. >> concerned that this is 2013 all over again and we have the tantrum, i think those concerns are overstated. >> the numbers are so spectacular when you run them on the gdp growth side, no one wants to say it. >> it would be a mistake to assume that the u.s. is now china and consisting growth at these astronomic levels. >> bearish argument around runaway inflation is not going to come to fruition. they are kind of fattening themselves up for the slaughter. >> if inflation picks above 2%, the fed is going to get a little uncomfortable.

>> this is "bloomberg surveillance" with tom keene, jonathan ferro, and lisa abramowicz. jonathan: yields down, stocks up. from new york city for our audience worldwide, good morning. this is "bloomberg surveillance" on bloomberg tv and radio. 10 year yields come in around three or four basis points to 1.68%. i can tell you where the bond market is, and you can tell me where the nasdaq is. lisa: the nasdaq is up because the bond market is rallying. you can see that correlation continues to veer -- continues to be very much intact. is it correlation, as you said, or is it causation, the ideal that higher means the lower inditex names. jonathan: let's touch on the price -- lower in tech names. jonathan: let's touch on the price action. there is the nasdaq 100, up 0.8%. we talk so much about this. i tell you where the bond market

is. yields off the lows of the session are still south of 1.70%. the euro firmer by 0.2 percent. the japanese yen has delivered much of that through this morning. on the s&p 500, we are up 0.2%. as you go forward, it is about the chairman. none :00 gave him -- not a clock a.m. eastern. again tomorrow -- 9:00 a.m. eastern. again tomorrow, again wednesday. the fed chair alongside the former chairman, janet yellen, now at the treasury. lisa: they are working hand-in-hand in a way that really is new. the federal reserve is saying we are not going to raise rates,

not going to stop buying bonds for as long as it takes to get back to summing that is strong recovery. but i feel like we can't overstate how calm the bond market is today, and frankly on friday as well, following those statements by jay powell because this is a new regime of letting it run hot, and we are not seeing yields run and financial pendants -- financial conditions tighten. jonathan: let's continue that point. bob michele, jp morgan chief investment officer, joins us now. is that bad? bob: it is. if you are long bonds, you are feeling a bit unanchored out there. the ecb said they are going to support the bond market, increase purposes. same thing with the reserve bank of australia. from the fed, nothing, zero. no wham! extensions, no -- no

extensions. jonathan: when the selloff becomes self-limiting, tends north of 1.70% last week, how much oxygen is left a pair? -- left up here? bob: not a lot. you have to look at it in terms of real yields. when you get to about 0% real yield on their target of 2%, around a 2% 10 year treasury, i think the bond market will mark time there for a bit and see which way the economy and inflation are breaking. if real yields start to go much higher into positive territory, then you better have strong growth and you better have the inflationary pressure. otherwise it is going to have an impact across all asset classes. damian: -- lisa: there was

another move the federal reserve made last week which was perhaps a little more under the radar. they did not extended the exemption for the supplemental loan ratio. banks were holding a lot more treasuries on their books, and they didn't have to hold additional capital to offset the potential risk. the fact that it wasn't extended may prompt banks to have to sell some of these treasuries. do you think it has become more of a problem for the options this week as the u.s. prepares to sell $206 billion of debt? bob: i know there is a bit of a two-way argument being created on the supplementary leverage ratio. i don't understand the two-way arguments. if the supplementary loads -- if the supplementary leverage ratio did not help absorb the deposits, what was the point in the first place? if it did absorb deposits and

treasuries, it stands to reason you're going to have more deposits and treasuries floating around in the system. lisa: so can you extrapolate out what that means for yields? could this lead to yields that do not lead to loose financial conditions? could it be a tightening in financial conditions not stemming from growth expectations, but rather from ennis balance for a change in the balance of supply and demand? bob: that is a really good question. for sure, you are going to see a lot more supply. we got $1.9 trillion stimulus. now you don't have these big balance sheets to absorb it the way they might have last month. on top of that, i think the other thing you hinted at, i think this is the first step of the fed tightening monetary policy. it is gradual and i think we have just seen that.

without a stent simply coming out and supporting the long end and then getting tighter, i think that is the first stage of the tightening process. jonathan: we come across to you with big money and mandates. when do they start to get interesting for you again and compete with capital elsewhere? bob: in the 10 year, not until you get above 2%. i don't see a reason to buy 10 year treasuries as a negative real yield. the second thing is there is some opportunity in the front end of the curve as long as the fed is continuing to support that market. you can buy credit there, high-yield, securitized credit, and you can buy some of the emerging markets that are out

there. jonathan: let's talk about em. it looks like a mess in parts of emerging markets. several central banks need to hike. where do you like and why? bob: exactly. they are reflecting the term emerging markets. it will come with some problems. it will to like it was a little early at the start of the year to go into debt markets and currencies. the fear was that the emerging markets would draft off of that, and they were a little further behind, so the dollar probably does well here. it doesn't mean you can't go start buying that death with real yields. maybe this time you will fund it with euros instead of dollars. lisa: jon raises a really good point. it has to do with emerging markets. is it time to reach for yield if the fed is beginning to hint at

the normalization process, as you said? bob: i think you have to still go where there are high real yields. you still have to go where there is opportunity to make some return on currencies. every emerging market is not the same. so i think you've got to roll up your sleeves and get in there. yields aren't as high as we would like them to be. the story is not as clean as we might like it to be. but you still have capital to put to work. jonathan: isn't that the story? all the naysayers and fixed income, credit, wherever it is, everything they say was sick months, nine months ago, and now you see this. what do you say to them? ? bob: i am sympathetic. i don't really like

buying high-yield debt, but i have default rates are coming down a lot from where they are, and when we look back at high-yield credit spreads, they don't widen when default rates come down. that will absorb a lot of the backup in the government bond market. jonathan: bob michele sends you his sympathies. bob michele, jp morgan chief investment officer's. just getting some news from the opposition party in turkey, submitting a bill to parliament tuesday the bans foreign central bank governors from preventing their full five-year terms. but it is a pushback politically speaking, as you might expect

her spec this morning. lisa: given that they will see big inflation if they don't get it under control and the fact that there are some reports of yanks having to get rid of -- of banks having to get rid of some of their lira currencies. jonathan: more coverage still to come. equities up, bond yields down. we have seen this move before. yields are in on tends to 1.69%. we were down about five basis points an hour or so ago. yields in, stocks up on the s&p 500. on the nasdaq, we advance about 0.7%. the story still to come, chairman powell and a ton of fed speak as we tea up some's important -- some important supply as well. i believe on thursday after a really messy seven-year issue.

lisa: there's other the words bob michele will be watching. jonathan: good morning. and then next hour, heather boucher, member of president biden's council of economic advisors. we will catch up at about 30 minutes or so. this is bloomberg. ritika: with the first w ord news, i'm ritika gupta. a trial in the u.s. of the astrazeneca vaccine was found 79% effective in preventing the disease, and an independent monitor board -- independent monitoring board found no safety defects. in germany, chancellor angela merkel has suggested keeping lockdowns in place for another four weeks.

merkel and regional government leaders will discuss their options today. china is describing the first face-to-face meeting with the biden adminstration as useful. the u.s. accused china of human rights violations, wife china said that u.s. is running away from a problem. beijing says the two countries did form degree -- did agree to form a working group on climate change. lloyd black is giving up his role as ceo and chairman of apollo global management. he has been under fire for being the main client of disgraced fta jeffrey epstein -- disgraced financier jeffrey epstein. global news 24 hours a day, on air and on bloomberg quicktake,

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>> we are going to see an extremely strong year, and i think that is going to lead to price pressure.

some of that price pressure is going to be because we are rounding over deflationary costs from last year. i want to emphasize, inflation is not a one-year phenomenon. it is a multiyear phenomenon. jonathan: the base effect is we are going to kick in and the next couple of months. that is going to be the story. that is the richmond fed president speaking to bloomberg. good morning to you all get along side lisa abramowicz, i'm jon ferro. let's touch on the price action for you. futures are firmer by seven points, up about 2.1% or get the nasdaq up by 71 points. i will say it for a fourth time, a fifth time, the base effects will be kicking in this month. that is highly breakable. what is not is how people will wish bond to it once we see the data in the months to come.

lisa: the idea of whether this is baked in, or whether it is buy the rumor, sell the news. i don't think we have to wait that long, but certainly there will be a sort of reality check at some point later in the year. jonathan: joining us from d.c., we will hear from chairman powell repeatedly through the week, kevin cirilli, bloomberg chief washington correspondent. i started the program with this a little earlier. the president's health. is he ok after that fall last friday? kevin: yes. the white house maintains that he continues to be in good health. it speaks to a larger question about fake videos and imaging and social media, that both administrations have had to deal with. i will be candid with you, as someone who drinks a lot of coffee throughout the day, i trip over my feet. you know this.

multiple times a day. i didn't criticize former president trump. i am certainly not going to criticize president biden. it did look like it hurt a little bit. jonathan: not looking for you to criticize the president have the president of the united states this morning. it wasn't the president making the headlines around china. it was secretary blinken. on russia, it was certainly the president. the administration has made some waves. more still to come this week? lisa: yes, especially if -- kevin: yes, especially as president biden and others are likely to be asked about it. i know what every one will be watching jay powell to say, but i do think that she could face some questions from some members on china, especially on supply-chain diversification. that is one threat that has emerged over the last month, a bipartisan consensus, and i

think the administration is trying to link to the economic recovery. damian: this is a huge issue -- lisa: this is a huge issue very front and center for the likes of samsung and apple as the chip shortage continues. who's going to be the heart of the supply chains? what is president biden doing to support particularly the chip and semiconductor industry? kevin: first and foremost, and terms of the timetable for the biden adminstration, i would anticipate that sometime in early summer, you could start to see some more technical developments, whether they are wro's or other types of areas that the treasury department or even the commerce department would be able to regulate internationally. but secondly, and this is important, from the republican perspective, this comes out in

the permits, permits, permits. whether or not they can get the permits to secure the precious metals and things for manufacturing in the u.s. is going to be key to fruition. ever since president biden signed those executive orders, they say they feel they are enough rare-earth minerals in the united states to make it in someone -- feel there are enough rare-earth minerals in the united states to make it in factories here. it is a timing suggestion. they are making the case that they've got a pilot of red tape in front of them that they can't cut to the chase and get to the bottom of it as fast as they

would like. look for democrats in michigan, like congresswoman haley stephenson in new york, and those in the heartland to see where those democrats come down the line. also look at the texas democratic coalition to see where they fall. this is a much more nuanced approach than i think just left versus right. i think it is really going to play a role here. jonathan: just a word on the pandemic and vaccines. some news for the audience, the eu is open to the u.k. for discussions about the astra vaccine. 79 percent efficacy, 100 percent efficacy against severe or critical disease and hospitalization. there was a concern several months ago that we could see vaccine nationalism really start to take hold. there's been pressure on governments to secure supply and maybe distribute some of that to

the rest of the world. what are we seeing from this administration and the last cabal of days -- last couple of days? kevin: president biden did not really specify a timetable that the united states will be distributing this surplus. can you believe we are saying that, this surplus we have of the vaccines? i am struck thinking of programs that have already happened in recent u.s. history, and what the united states was able to do with african countries, and i think that problem exists. jonathan: kevin, it is good to see you. kevin cirilli, chief washington correspondent, and host of "sound on" on bloomberg radio at 5:00 p.m. eastern. over the last seven days, 104

million doses in america. 124 million doses given. it is quite phenomenal. lisa: i am still waiting to find out when we end up with some of these vaccinations being opened up to the general public. there's not really a sense of the timeline. i think a lot of people are getting antsy trying to figure out what the real timeline is. if there really isn't a cohesive rollout plan, do they make it a free-for-all? jonathan: we have seen several states do that. the president has put a line in the sand of may 1. states are going their own way. just the character of this system, that's how it works. states do it their own way. lisa: and frankly, people will go their own way, too. i am struck by what is happening in miami. have you seen those pictures on the beach? jonathan: the president saying

july 4, you might be able to get together. no, not many people waiting for that. coming up, we look at an american economy set to boom in the year ahead. what happens the year after that? from new york, this is bloomberg. ♪

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jon: from new york city, to our audience worldwide, this is "bloomberg surveillance" live on television and radio. i am john arrow. -- jon ferro. the s&p 500 of by .02%. with a little bit of economic data, let's bring in michael mckee. michael: it is all about the this week. there is a torrent of fed speak. they were quiet running up to the last meeting on wednesday and now everyone will have their chance to explain. this is a little bit like jay powell being the lead singer and everyone else on the fed is the chorus. we get to hear from the courts.

some of these will be about other topics. randal quarles is talking about libor. -- is talking about climate change, but she will also talk about the economic outlook. a lot of people laying out their views, which they hope the market will take as listen to us, we will not raise rates early. you can see the yield curve -- we are starting to see a little bit of acceptance. it has been a tough sell so far given the fact everyone expects the economy to grow so quickly this year. we also have data at the end of the week that will catch people's attention. this will come up in testimony along with janet yellen to the house and senate this week in which we get the latest spending and income numbers, and we get the latest inflation numbers. now, these are february pce numbers, year over year. it is only expected to go up to 1.6%.

like the cpi and ppi earlier, this is the month before we get to the real breakdown, which is a comparison to last year when we fell off a cliff you are. it was still -- cliff in march. it will still capture a lot of interest and why the fed fell flat. finally, this week, we have some auctions of three's's's, five, and seven -- three,'s, and -- three's, five's, and seven's. the markets will want to see do we still have a problem there? many will say maybe it was japan repatriating, not buying as many treasuries because it is the end of their fiscal year in march. we'll get a much better picture of where the fed is, where the economy is going. jon: the index just out -- the

first decline since april, 2020, not in line with the boom that we are witnessed elsewhere. what is the story? michael: the story there is this is an end -- manufacturing area depending on the auto industry and they are closing on assembly lines because they cannot get computer chips needed for the cars. that is one reason why we see a decline in that area. lisa: there is a question on a broader level i am struggling with as we head toward a fed chair that will try to reiterate the message from last week. where taking the first steps in normalizing policy. you think that checks out -- is that what they have done that they will not deal with this exemption? michael: it is a bit of a reach, lisa, because the fed announced they will be seeking ways to tweak the slr. there is a feeling they will

take reserves out of the equation, ultimately, and that is the cash banks store at the fed, and that would make a big difference in the calculation of the slr. there is a feeling they will not be normalizing -- they will just be changing the policy, and they want to show that banks have enough strength right now that they don't need that initial exemption. jon: always great to get your thoughts on the program and we will be staying close through the week, particularly on the issue this thursday. $62 billion worth of seven-year debt after a messy supply of maturity. we are joined by peter hooper, great to catch up with you. let's start on this -- big growth this year -- boom time, everyone agrees with that, but deceleration, 22, 20 3 -- how severe is the deceleration? peter: you will certainly see less physical push then you have

this year, no question. you are coming off a huge influx of fiscal support for many households that will be dropping off, but we also have some infrastructure spending waiting in the wings. we are going to have a pretty sizable package that will be multi-year, but, i mean, you have enough going on this year to push the economy well above potential, and even with the slow down next year, falling down from what we think is 7.5% growth this year to something closer to 2.5%, 3% next year, you are still above trend next year. it will be lower, but it will still be a strong economy, even with this deceleration coming. lisa: peter, how are you factor in potential tech sites into york -- tax hikes into your evaluation? peter: we're all awaiting to see

what is coming next with the infrastructure package. the assessment we are making, basically we will get something like a $2.5 trillion spending package, and about half of that will be offset with taxes. the taxes, as president biden has been saying all along, will be on over and come households, no one less than 400 thousand dollars, etc., but roughly -- it is roughly half of that offset. the extent to which those increased taxes are a drag on the -- drag on the economy is reduced because hitting upper income households, they tend to save more in the tax increase will have less of an impact on their spending. lisa: do you think people are underestimating the inflationary and pulse coming from the spending that will not be entirely offset or even half offset by tax increases, but will increase it will continue to increase the treasury supply?

peter: yes. no question that you will see that continue to rise. i mean, on the inflationary impact, our baseline assumption is that the phillips curve, the relationship between unemployment and inflation remains very flat. you don't have a lot of pressure coming through there, and expectations remain pretty well contained, but there is certainly a growing, upside risk, that with all of the stimulus coming -- the stimulus coming back on board, the extra fiscal stimulus this year and continuing next year, and with a tremendous amount of household savings built up, all of the support we have gotten has not been spent -- a lot of it has been saved. you have huge, pent-up demand. this will push the economy above potential. we will see unemployment getting down to the low-four's by the end of this year into the mid-

three's and the risk is we can go into the two's in the next couple of years if the stimulus has multiplier effect, if a lot of what has been saved up, households come back and spend -- that could push us into a level of overshoot on the economy, overheating, if you will, that could get inflation igniting, as happened in the mid-1960's. jon: that is certainly dominating the conversation right now -- it has happened before, it can happen again. i get that, but i caught up with my colleagues, and he is services thinking about the risk that by the time the federal reserve thinks about hiking interest rates it is too late, not because numbers are surging, but because numbers are going the other way. growth is decelerating, but the fed can't hike and won't hike, maybe, for the whole cycle. do you think that is possible --

we could get to the end of the cycle, which might be shorter, and they have no room to cut, because they never moved? peter: i think to end the cycle you will have to see some said tightening cat i don't think the drop-off in fiscal will be enough to give us anything like a recession, but i think the risk here is that the fed has shifted -- we are in a new regime. the fed has said we are not going to be tightening because inflation is getting slightly above target or because the unemployment rate has gone into the three's or even the two. they will not raise rates until they see inflation moving upward toward 2.5%. it could be a tricky situation. the tools to deal with it mean raising interest rates, and that could be painful. jon: what i am trying to get at is whether you think they could miss the turn? we could have a situation like

we have seen in japan, europe, we get beyond the boom time, get to trend growth, and the numbers start to shift the other way and the fed does not have a reason to move. peter: ok, what the question is what will shift things you're the way with all this ammunition , household savings command structure spending coming down the pike -- yes, it is possible if something negative happens there, it is feasible we could get down -- through this through the next downturn without any movement rights, but it is -- rates, -- in rates, but it is not probable. jon: thank you. michael mckee went into the news conference was chairman powell, basically asks the question and they play the elevator music over the top of him and the chairman said he could not hear him, but it is a conversation we need to have. lisa: this idea that if you have a faster boom, you have a faster bust.

the fed keeps saying we are not worried about inflation -- it has been undershooting for a long time, but that is a huge shift, jon, the idea they are not worried about inflation, and the implications of that are significant. jon: i don't know if they need to be worried. we can talk about the balance of risk around the story and people can ask about that story. what i am pondering is what happened beyond the next three years, if they did not -- if they have not made a move, we have seen the big boom. you start to use -- consider what the rest of the cycle looks like. is that an environment you hike interest rates in? lisa: at that point, fiscal policy has to be the first responder, not the one that likes behind, and that is a situation the will ultimately be more comfortable with politically that fed will ultimately be more comfortable with politically. jon: in my -- the next hour i will catch up with my colleague

-- then the head of corporate credit. a lot to discuss in fixed-income in a week where you get a lot of fed speak. lisa can't wait. tom was so excited he took the week off. from new york, this is bloomberg. ♪ >> the european union is on the verge of halting coronavirus vaccine exports to the u.k.. it is risking a sharp downturn. the e.u. will likely reject export exports until the drugmaker filled obligations to the eu. miami beach is extending an emergency curfew to up to three weeks after police were overwhelmed by late-night crowds and make -- made scores of

arrests. people ignore social distancing and guidelines was celebrating spring break. police used to propose to try to get across to break up. ritka: goldman sachs is saying u.s. stocks are taking president biden's tax plan in stride up and they are pricing in good news about infrastructure and showing little concern about tax hikes. president biden says at some point he will visit the u.s. border with mexico. the influx of border crossings has become a political liability for the biden administration. the president has reversed many of president trump's hard-line immigration's policies. netflix says they are losing out because of people sharing passwords. the bank estimates that next looks accounts for a quarter of

that. they announced they crackdown of sherry. global news 24 hours a day on air and bloomberg quicktake -- global news 24 hours a day on on air and on bloomberg quicktake powered by more than 2700 journalists and analysts in more than 120 countries. i am ritika gupta. this is bloomberg. ♪

>> we know we will have a good economic backdrop.

the problem is it raises concerns about policy and when you have concerns about policy that is when you have volatility in the markets, but let's remember this is a year ago. we are seeing earnings improve, the economy improve. inflation pressures will rear their head but i think they ultimately fade as we move out beyond 2021. lisa: that was brian levitt, invesco's global market strategist, speaking on the key debate in the market, inflation, will it pick up materially and will the pickup last for a long period. right now to quote conkling -- tom keene, this is a joy. heather boucher joins us. one of the key people part of president joe biden's economic policy helping to shape policy now and in the upcoming year. heather, to her for being with us. i want to start with messaging about the stimulus that has been passed. do you feel the amount of money

that has been passed has already trickled into the system and people are aware of the -- what the benefits they could get will be and have been? heather: that is a great place to start. certainly everyone is aware of the checks. over 100 million checks have gone out to the american people and people understand the money is coming. there is so much more in the package to help people, businesses, communities in the country deal with the pandemic and the economic crisis. there is an increase in nutrition aid for the women and infinite -- infant children's program, the supplemental nutrition program. there is also money out there, about $4 billion, to help farmers of color who are in debt because of the pandemic and are struggling. there are a lot of different pieces for different communities that have been greatly impacted by the pandemic. jon: a lot of people -- lisa: a lot of people are looking at the stimulus for tea

leaves for what is to come in jon ferro has raised the idea that $110,000 is an income that is being defined as a middle income -- the idea that that is the justification to get some excess -- assistance. can you talk about that being a significant number, that is middle class, where is $400,000 is upper-class? heather: it is a great question and i have spent a lot of time as an economist tried to define what is middle class. we have talked about this case-shaped economy -- k-shaped economy and we see folks that are about $50,000 a year or less, that really is the dividing line between the kinds of jobs, experiences people have had, the experiences with hunger and food insecurity, and if you double that, it gets closer to about $100,000. in some parts of the country that is a lot of money.

in other parts that is not so much. what is important here is we really recognize folks at the top have been able to maintain incomes for the most part, their jobs. they have been less hurt, and it is really those folks in the bottom third that have been hardest hit by the pandemic and are struggling the most in this recovery. i think it is right to focus on that. what matters less is the exact cutoff. that matters for each and every program. we don't need one cut off for everything, but we do need to keep our focus on how the economy looks different in different parts of the income distribution. jon: -- lisa: and deftly from the economic perspective it is important to have this holistic look at which areas were hit hardest. when crafting taxes, that is what matters to a lot of people because it determines whether they will be paying higher or lower taxes. $400,000 a year has been pegged

as the number where taxes go up significantly, and there is a question of whether this is for an entire household or for an individual. you have clarity on which it is? heather: welcome at this point the president made clear time and time again on the campaign trail and through governing that if you make less than $400,000 a year your taxes won't go up. the details are still to be worked out. this is an ongoing conversation so i cannot speak to specifics at this point, but what i can tell you is he has been clear on the commitment and that number is far of the income distribution. we are looking at folks just at the very, very top. of the spectrum. lisa: there is also a question more generally on the lower part of the spectrum of whether we just experienced modern monetary theory in practice, this idea that you send checks out to the bottom quartile and that is the money that gets spent in a goes into the economy and generates growth and inflation that is positive.

is there something or any proposal about some sort of universal in, or universal checks to be sent out for that purpose on an ongoing basis? heather: well, it is interesting you would ask the question -- we have programs of the earned income tax credit that provided tax credit to families at the very bottom of income is tradition. what happened as a part of the american rescue plan, we expanded that two people that did not have children and we expended the -- expanded the child health credit. those kinds of policies that are focused on those that need it most certainly are ones that we have a track record of doing in the past and seemed very popular to the american people. lisa: i'm number of people have criticized the $1.9 trillion stimulus -- a number of people have criticized the $1.9

trillion stimulus package being too big. what is your response? heather: we built the plan from the ground up to focus on challenges facing society and economy right now. we know the pandemic is still raging across the country, around the world, families, businesses, state and local governments needed the resources to address the pandemic and whether the crisis -- get us to the other side, make sure that businesses can hold out, families can hold out until jobs come back. sometimes we forget we have seen 52 weeks of record high claims for unemployment benefits. this economic crisis is not over, and because that while we are doing every thing we can to contain the pandemic, get vaccines out, the shape of the virus is still uncertain. we don't know if new strains are going to come up or how that will play out, so we need to make sure families are prepared, communities are prepared. that is why the package was the

size that it was. lisa: heather boushey, thank you for being with us. heather boushey is a member of president biden's economic council, discussing some of the plans coming up and she is the former president and ceo of the washington center for equitable growth. some headlines crossing talking about vaccine nationalism and how johnson in the u.k. was encouraged by the fact that the european union does not want to see a blockade from the astrazeneca vaccine into the united kingdom. he also says a third wave of covid in europe is likely to reach the united kingdom. it seems like an outlier risk -- people have shrugged off the idea that we could get a resurgence with some of the mutations of the coronavirus 19 virus. this has been a concern. meanwhile in markets, you see a nasdaq outperforming as yields come down. nasdaq of 96 ahead of the open cap the dow up six. yields off of their early lows.

built into a week of 200 $6 billion of treasury auctions. i am lisa abramowicz. jonathan ferro on the open in a couple of minutes. tom keene back next week. this is "bloomberg surveillance." ♪

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jon: stocks up, yields lower -- good morning. the countdown to the opening starts right now. equity futures up a little more than .10%. let's get straight to it -- a central bank shakeup sending shockwaves across emerging markets. >> he did not like the hike. >> this is really undermining investor confidence in turkey. >> turkey is quite a specific case. >> this is an isolated incident in turkey. >> i don't see the risk of contagion. >> this is one of the risks investors need to keep on their radar. >> as u.s. long yields continue to rise aggressively -- and when >> that will be a challenge. >> we have a challenge with yields rising. >> rising yields are putting a lot of pressure on these economies to stabilize currencies. >> capital control is