strong. >> whenever you have this much stimulus thrown in the market you will see things happen like we are seeing today. >> eventually the markets, there might be room for the fed to normalize rates. >> the economy and stock market don't always go in unison. this seems to be a year in which main street beats wall street. >> this is bloomberg surveillance. jonathan: the cyclical trade hitting headwinds. good morning. this is bloomberg surveillance. tom keene back next week. equity futures bouncing back a little bit. we advanced one third of 1%. it's been about the small caps and a breakdown in the small caps. facing some headwinds in the

last couple of days. lisa: almost 4% losses. it doesn't necessarily reverse what we've seen, but it raises the question are we getting a pause in the cyclical trade in this bet on a recovery more global in nature. can europe get on board? jonathan: we will talk about that. you look at the small caps. putting it in context perspective, a rally more than 50% at the back end of october on the russell. the debate is there. a guest who joined us was talking about this. will main street outperform wall street following a year where wall street outperformed main street. i think that the big debate at the moment. have we largely position for it already in the first quarter? lisa: there is also a technical aspect. i wonder how much the fact people can go out and spend their money on things like

airplane tickets and trips to paint just a dynamic. the percent of robin hood traders are moving away from some of that activity because they can spend their money in other ways. you are seeing this in real time. how much is that affecting the small caps. it is not negligible. savings can actually go into doing things. jonathan: picking up on a similar theme. the volume and coal up -- call options around these popular stories. and how that volume has come in. let's get the story. it looks like this in the markets. equity futures up 15 points on the s&p 500. big snap back in the nasdaq up 9/10 of 1%. that's where the relative outperformance has been and stays. the secret source continues to be in the bond market. unchanged on the session. in the fx market, a break in the euro.

euro-dollar snapped. finally some weakness against the stronger dollar. some weakness i would argue people have been waiting for. that snapback improved. 59 handle -- snapback in crude, 59 handle. you will also find it in energy. it's been tough for the energy sector. the big winners in 21 have been struggling recently. lisa: one of the most interesting themes this week is how even though we got used to a certain appearance of efficiency and speed for the digital era, of the physical world is breaking down. if you look at supply chain issues of the semiconductor shortages now a blockage of ships marooned in the suez canal , basically keeping all of these ships responsible for 10% of global trade out of commission shows you how fragile the basic physical infrastructure can be from time to time.

10:00 a.m., jay powell and janet yellin back to capitol hill before the senate banking committee. expect them to talk about the same they did yesterday. they expect inflationary pop. janet yellin more interesting. maybe she will say more about taxes but also more about a fund for the imf can go to emerging markets and possibly help them in their recovery from the pandemic. u.s. crude inventories, interested in seeing how much they are building. this is what's giving pressure to oil earlier in the week. 1:00 p.m., we are all about the auction this week. we have $61 million of five-year notes. yesterday completely -- the fed will hold rates regardless of where they are with inflationary impulses. jonathan: the suez canal.

in the media everyone will go crazy about this, of the story is phenomenal, of the numbers are impressive. the numbers around it are always impressive. isn't this story the very definition of transitory? we will get excited about it, people talk about global trade backed up and then in a couple of days, maybe a week, it reopens and back to business and supply chain start functioning again. lisa: maybe. i think there is a bit of a difference this time around with the number of different supply chains that have been breaking down. you've got the semiconductor issues, this is yet another kink in a broader story of infrastructure breakdowns. i wonder how much this encourages people to change some supply chains and invest more in infrastructure. i wonder how much you will hear this kind of commentary from

john. jonathan: i hope the fed chair is asked about this. want to turn to the fx market. it was brutal for anything but the u.s. bond reaching 10 year. the euro broke down. euro-dollar 1.1830. the same conversation is taking place in foreign exchange as well. the global cyclical trade in 2021 already starting to see signs of it breaking down. in the fx market there much of this year already. let's bring in berkeley's head of fx and em macro strategy. that break down in euro-dollar in the last 24 hours. we had the incremental bad news out of europe and better news out of the united states. it wasn't biting, and then it did. >> we have been suggesting the

dollar downtrend was not likely to manifest this year, that it would be more of a range trade. we do expect it to be a slow rise lower. what you just highlighted is a crucial point which is these become very important. you highlighted the breakdown of the 200 day moving average. as you break through those, it opens up a move pretty quickly. that's what we need to watch for this point. jonathan: let's talk about ranges. 1.23 was the high. we had a break down to 118 -- 1.18. you gave a hint of where that could be to the lower side, one point 16. what's the top end of this range you are considering? marvin: the top end or the bottom and? jonathan: the top end. marvin: i think we've already

seen the top end. could be bounced back towards 1.2050. i think it's going to be hard to go back up. we will shift down to a range that will be 1.16 to one .18 50 -- 1.1850. lisa: is this a dollar or euro story? marvin: in this case it's more about the euro. what you highlighted more broadly as the dollar story. this is a really important point. in a world that still tremendously onshore, people will still want a high share of safe assets in their portfolio. the dollar is clearly the safest asset out there. at the same time, the dollar is

the key cyclical play. so on days when you are getting a risk off you see the dollar supported on that. on days when you see a clear improvement in u.s. data in the u.s. cyclical story you see the dollar improve on that. the key point is you will not see people back away from the dollar. lisa: that is important for emerging markets. how much does that upend some the consensus this year that emerging markets, the higher debate currencies will outperform? marvin: you need to differentiate your emerging markets more clearly. we've tried to do that in a fun way. one way to think about that is if currencies were animals, what animal would they be? within em you get a lot of divergence. you've got the sort of gazelles which of the north asian economies, that are generally

lower yield. but they are much faster. they are much more connected to this global recovery. then you've got some of the slower big elephants out there. the rush is, mexico's that are often these could carry, have reasonable finances and are likely something you can at least click a coupon from. we want people to be aware of the hippos out there. they are the animals that are most dangerous in africa, they kill the most people out there. they are big slow animals that are incredibly dangerous. we saw one of those bite in turkey. similar sort of value to south africa and some other latin american economies like columbia and brazil. jonathan: i can't believe i'm getting drawn into this. [laughter] jonathan: what animal lisa: would bitcoin be? lisa:really -- animal would bitcoin be?

marvin: a wasp. jonathan: we will leave it there. berkeley's head of fx and em macro strategy. elon musk on twitter saying you can out by tesla with bitcoin. what's interesting about this is the bitcoin you used to purchase a tesla, not sure when this starts, it won't be converted to u.s. dollars. we understand the cost base is still in u.s. dollars. with the daily pricing of a tesla looks like in bitcoin. and how volatile that's going to be. given respect to the bitcoin. lisa: are you basically saying we will see a bitcoin tesla cross on the terminal? jonathan: i think we've got to understand how volatile the underlying issue is and therefore you will have to reprice that tesla every day. by a factor of lot, i don't know. lisa: i do think what's can happen is they will hold bitcoin

as an investment. jonathan: i get that. that's totally fine. if the dollar cost for tesla remains the same, what do you do with the price of tesla in bitcoin if you don't converted to u.s. dollars? lisa: a wasp. that's what he said. jonathan: coming up at 7:00 eastern time. looking forward to the conversation. futures bouncing back on the s&p 500. on the nasdaq, up 8/10 of 1%. this is bloomberg. ♪ >> with the first word news. a giant container ship has run around and is blocking traffic in the suez canal. it became wedged across the canal yesterday in egypt. at least 100 ships have been gridlocked as they are in transit between the red sea and

mediterranean. it could take days to free up the ship. in israel, a deeply divided country has failed to resolve a political in class -- political impasse. neither benjamin netanyahu or his opponents have enough to form a government. president biden is urging congress to pass gun control measures in the wake of that shooting at a colorado supermarket. the president called for background checks and a ban on assault weapons and high-capacity magazines. earlier this month the house passed a bill that would require background checks for all firearm sales including those at gun shows. china is considering whether to create a company to oversee data collected by tech companies. a preliminary plan is being led by the people's bank of china. it would mark a significant escalation in the chinese government's attempt over the

country's internet sector. 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. this is bloomberg. ♪

>> we are seeing signs of recovery, motion for clear eyed about the whole we are digging

out of the country is still down nearly 10 million jobs from its pre-pandemic peak. jonathan: the treasury secretary sounding like the chairman of the federal reserve. they are on the same page. day two today in front of the senate. good morning. tom keene will be back with us next week. here is the price action. equity futures up by 14 points on the s&p 500. the bigger move in the nasdaq. we advance our nasdaq 100 futures. into the bond market, some real stability. came all the way back down again. outside of that in the equity market, breakdown to the 200 day moving average on the euro. euro-dollar, 1.1831. there is the move back in crude.

energy stocks and commodities, wti, 59.41. up on the day. lisa: not that much but definitely a pause after oil prices tumbled. he raised the point of transitory. this feels transitory. a physical blockade and a canal that will eventually come unstuck. there is a question especially with the lockdowns in europe of how much bigger of a slump in demand there will be and how that will effect some of the supply demand dynamics going forward. jonathan: germany is to drop the plan for a five day easter lockdown. not many details on that now. germany could drop the plan for a five day easter lockdown. we -- when we get additional news we will try to get that to you. the news and washington, d.c. with emily wilkins. i want you to start on something important before we get into the infrastructure spending and all

of that stuff the markets care about. the crisis on the border. how the administration is handling it. what's your take at the moment? emily: there is a lot of attention to what is happening at the southern border. we have seen an increase in immigrants coming to the border and we've also seen there isn't the capacity to handle it. we have seen crowding at facilities. we know in some places it's taking longer than it should to be able to process people through. and the biden administration is kind of trying to walk a fine line here. they are trying to show they are more humane than some of the trump era policies, they are not separating children from parents. at the other point we saw homeland security -- homeland secretary tell sunday shows that if people are coming to the border that they should stay home. they should not come to the border at this time and that the biden administration is working to make sure it qualifies for asylum but there will be a way

for them to apply and get to the u.s. that's currently safer than somebody showing up at the border and hoping things work out. jonathan: there seems to always be a crisis of the border and seemingly it's always one half of washington's fault permanently. trying to understand whether you think we have sufficient access to understand what's going on. we have the data, of them getting in there and seeing what's happening or are we relying on the government to tell us their view on things? >> there have been concerns about media access. it is also stories from reporters who have gone to the border and have talked to the migrants and immigrants there crossing over. we have these images and we should expect to see more. there are several congressional delegations that will be heading down to the border in the upcoming weeks. they are expecting to see more information from where they are. as always we are trying to get the numbers, get the data and get a good understanding of what's happening and also how the biden administration is responding to this. >> increasingly it seems like

the biden administration's foreign policy is very much the focus, whether it's down at the border in the south or whether it's the envoy that's meeting with europe this week, perhaps today to discuss policy towards china. what are you expecting to hear out of those talks between the u.s. and the european union about restarting some sort of collaboration to get some sort of competitive alliance against china. >> we saw that earlier this week with sanctions coming against china not only from the u.s., but also the u.k., of eu and canada. there is already some sign president biden's plan of working with allies to put pressure on china is where the allies are concerned. but once again there is this balance where they putting pressure on china and get the u.s. still says they want to work with china on things such as climate change. so there is this balance between

making sure the actions they do do not prohibit them from being able to work with china in the areas where there could potentially be some compromise. lisa: this is the area where you are wonderful to have on because you can help us parse through the noise and how much muscle joe biden is putting behind this move. i go to that intel foundry being established in arizona with their going to build semi conductors for other companies. i'm wondering whether the biden administration is offering incentives to some u.s. tech companies to do things like that, to bring manufacturing home or if this is just a long-term bet by intel ? emily: i remember you saw president biden say again and again that he wanted to make sure he had a plan and just sort of strengthening america, i expect this is something we will be seeing a lot more of in his

next infrastructure package. there are so many other things the democrats are hoping to put in there. including incentives for companies to make their products in america, to buy american, we saw one of the early executive orders asking the federal government to make sure any products they were buying to try and make sure those were manufactured in america. this has been a focus of biden and i think we will be seeing that even more in the coming months as the next big legislative package is done. jonathan: emily wilkins and d.c., a bloomberg government reporter. it is ok if you want to change the approach to foreign policy and we've witnessed that with europe, of the united states and other countries as well. when it comes to the economy, if you're going to maintain america first that's where difficulty starts. europe has spent a lot of time negotiating a comprehensive agreement with china parade

what's the first thing the chinese communist party did after europe and the united states got together on a foreign policy issue on human rights? they went after europe and put pressure on the europeans. that's where the starts to break down. if you want your allies to come with you, you need to work with them on economic issues as well. that's the pressure point in the chinese communist party can push on their button and put the europeans under pressure. so to maintain a multilateral approach on a crucial foreign policy issue, you need to develop stronger economic ties as well. they need to come hand-in-hand otherwise the commercial ties within europe china has managed to develop over the last decade, that's leverage they have on the others to the story. lisa: you are right to bring up that european deal. however, a can also offer that carrot to the european union saying we will keep with you on this, just work with us more and

keep them away from the u.s. collaboration bring jonathan: precisely the issue. coming up, looking forward to that chat. equity futures up 14 points this is bloomberg. ♪

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jonathan: this is bloomberg surveillance live on tv and radio. here is price action for you. here's your snapback on the nasdaq. moving three quarters of 1%. a move higher after a big move lower recently. a correction off the high to the year so far. the move off the october low though. a 50% rip into the last couple of weeks. then you get your correction. we will talk about the language later today. it's not just been about size. it's been about the sector, this is over the last week. the last five sessions through yesterday. crude fighting back a little bit. up by 8.4% on wti.

this is been a problem for some of the big trades. switching up the board, up wind driven by what's been happening in the bond market. this week, all the way back in, 1.3249 and we kicked down the supply decently. five-year today. tomorrow, a seven-year issue. it will get a lot of attention because of what happened last time. the same nervousness this time around. lisa: there's a strong bid into treasuries much more so than in the past. people watching the gauge for an appetite. definitely getting to focus today. oil prices rallying a bit after getting hit hard for a number of days. you are right to bring up this idea of transitory. this is the ultimate definition of that. yet it does indicate there is

some fragility in an oil market that still has a great deal of uncertainty when it comes to demand in the wake of the pandemic. can you just start by giving us a sense of how long-lasting the effects of this blockage could be on the oil markets? >> it's going to depend on how quickly they can move the vessel. it doesn't seem to have been much progress at the moment. it is stuck somewhere about 10 kilometers into the canal from the southern entrance, from the entrance from the red sea. there's no way of getting around it, so the only way the oil and any other commodities and products will flow and move through the suez canal is when it gets moved. it's really going to depend on whether they can re-flow the vessel without having to take any of the containers off the

ship. if they cannot, then i think the process of unloading it is clearly going to take time. we may be talking hours, we may be talking days. at the moment we don't know. jonathan: everyone logging on looking at the maps to bring up this wonderful looking chart which illustrates how painful this could be for trade. the yellow dot across where we've been talking about the suez canal with this is blocked off. this is the problem at the moment. whenever there is a crisis we always talk about the suez canal. a lot of people push back. the experts say there is so much effort that goes into making sure this particular point flows through and without any constraints whatsoever. can you walk us through that, how much hard work goes through to make sure it's constantly

functioning all year round. julian: 80 is a great deal of work that goes into it, the canal is cap dredged, the sidewalls are maintained very securely along the length of the canal. and every step they can feasibly be taking to keep the canal operational is. for some commodities, for crude oil in particular there are alternatives there, there is the pipeline that can carry oil northward across egypt, so some crude could be diverted into that, there is also a pipeline across israel that links the mediterranean to the red sea. that can operate in either direction. so that could theoretically be brought in to alleviate some of

the flow of crude oil, but that's not going to help move either refined product or liquefied natural gas or work or anything else. lisa: looking forward to when this waterway is reopened, what is the pressure? is it upward or downward to oil based on those seen in europe, germany backing away from its five-day shutdown during the easter holiday. is there a sense there is more room to go downward in oil based on the fact the world is not recovering as quickly as perhaps some were hoping at the onset of the year. julian: i do think the demand picture is going to be key. as you say, the demand is not recovering as fast as many people thought or hoped it would. i have been arguing in opinion columns for many weeks now that

we have this period of weakness in the first and second quarters of this year before the vaccine rollout is sufficiently widespread and sufficiently far advanced the travel starts to open up again, people start going back into offices and workplaces. we are seeing that playing out. we are seeing a number of stumbles on the road to widespread vaccination both with delivery issues and take up issues in populations and because of that we are seeing the demand recovery not moving ahead as quickly as a lot of people would hope. clearly i think the move up to $70 a barrel for oil was overdone. we've seen a correction from that level. we have to balance what's happening with demand against what's happening in supply.

the opec group plus rush and a number of allies have repeatedly delayed putting oil back into the market that they had originally intended to return in january. so we are seeing the supply cuts are not being deepened, but being maintained as a -- at a time when the group has expected to ease back on its restrictions. that has helped to put some of the support under crude but we've seen. jonathan: always great to catch up with you. on the supply side dominated by the news out of the suez canal. on the demand side, the news set of germany has been a key factor. we announced earlier on this program germany has dropped a plan, huge chance met with opposition and anger. germany is to drop that plan.

we also understand the chancellor will hold some type of news conference. in about 40 or 50 minutes from now. crude positive by 2.4% on brent. 59.14 on wti. joining us now is david. if we can stick on energies for a moment. massive wintering 21, a big loser in the last couple of weeks. your take on that sector? david: the first is i remember asking the ceo of x on a number of years ago can anybody forecast prices accurately. his answer was no. i think the rule of thumb is to try and look at the valuation basis. long-term i think they are oversold because they went through a secular decline since 2008.

i think that makes oil more interesting than not in a 7% 8% real gdp world to be marginally increasing names within energy and those that are tied to energy. >> is this idea applicable more broadly to cyclicals that we've seen rather it be the russell 2000 or travel stocks? >> absolutely. throwing in that gdp at the end of february. a year ago was only growing 7%. fiscal and monetary stimulus that's now about 45% of annual u.s. gdp, if you put all those variables in their you want to continue gravitate toward cyclical stocks. jonathan: i'm always interested

in the process. one of the signpost you are looking for to give you a better understanding as to what we have but the rotation is complete. >> it will be price and volume from a technical perspective. i don't think we are ever going to get close to that in the cyclical stocks. it's been a significant stocks. nevertheless, we bond through a significant long-term decline, a relative decline for these names. especially dating back to march of 2018 when the trade talks were getting -- with the stock market. i think we've got much more legs to go. history would say that. jonathan: always great to catch up. that's the debate right now.

calls on both sides of that. this started a number of weeks back when they started to push back against the early cycle cyclical trade because they think we are midcycle now. interesting to see ubs downgrading three months ago. they think maybe growth in tech is on the table. david: david put it well -- lisa: david put it well, the idea of short-term overbought and long-term oversold. that raises a question what do you do now. is this a typical b -- dippable buy? i think you are seeing people swoop in and i expect there will be more discussion of that throughout the day. jonathan: nasdaq futures up by three quarters of 1%. equities snapping back a little

bit. yields stable for now. coming up on the pandemic, a johns hopkins associate professor of emergency medicine. good morning alongside lisa abramowicz, i'm jonathan ferro. tom keene away through the week. this is bloomberg. ♪ >> with the first word news, i'm ritika gupta. a new survey shows taxes may on wealthy americans. 50 current and former white house and congressional aide specializing impact policy say that a proposal to tax unrealized capital gains can make it through congress. u.s. treasury secretary janet yellen has promised to ease the $10,000 cap on state and local tax deductions. that has been a key area of

focus for lawmakers in new york and new jersey. the limit was put in place by donald trump's tax law. janet yellen says she wants a fair remedy for the issue. in germany, the plan for a five day nationwide lockdown over easter has been scrapped. chancellor merkel made the decision after the plan was met with massive opposition. she is trying to handle a surge in coronavirus infections. intel has unveiled an ambitious bid to regain its manufacturing lead. they will spend billions on new factories plus creative foundry business that will make chips further, -- companies. he puts intel indirect competition with the most advanced chipmaker. tesla is going all in on bitcoin. a 1.5 billion dollar investment in the world's largest

cryptocurrency. elon musk says you can buy one of his electric cars with bitcoin. he also says any bitcoin will not be converted to a traditional currency. global news 24 hours a day on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i'm ritika gupta, this is bloomberg. ♪ bloomberg. ♪

>> accusations of vaccine nationalism are so wrong in

terms of europe because we are international in terms of exporting. we will have conversations about what they might do. jonathan: the eu commissioner mcginnis there. from new york city this morning, good morning. tom keene will be back with us on monday. here's the price action. s&p 500 futures up a little more than 10 points. up 6/10 on the nasdaq. not much price action in your 10 year in the bond market. a lot of issuance in a moment. we bounce back up. you see and heard about the blockage of the suez canal. in the fx market, a break on the average. euro-dollar 1.1823. the pmi's have been pushed to one side this morning.

coming up at about 945 -- 9:45 eastern. today we have a five year, tomorrow, the seven year. any reason to be concerned about taking down supply in those couple of days? lisa: not based on the action we are seeing in the bond markets. this idea we have better-than-expected data out of europe. no one cares. at what point does data matter or at what point is it always backwards looking? jonathan: trying to game out the future based on where we are with vaccinations. europe versus u.s., of the new number in the united states tracking daily on average over the last seven days. your average rate of vaccinations in america, 2.5 million doses per day. hanging out at that level. let's discuss that with lauren sauer. always great to get you back on the program, let's start here. yesterday, texas announced they

will widen the eligibility for everyone 16 plus, all adults next week. when you see those decisions being made to see that driven by the data? what's your take? lauren: it's a mix. it's less about the data and more about getting as many people in those spaces. texas is creating a space where they can get maximum amount of people and supplied to back it up. that is definitely an approach many people are advocating for. we are seeing in a lot of sites across the country. the key is vaccine supply backs up the process. giving people appointments and then canceling them the last moment may negatively impact people's willingness to come back and try again and that vaccine down the road. you have to be careful with that approach and you can take that approach and sort of drop off targeting these harder to reach were populations. those happen in tandem if you're going the way of mass

vaccinations to everyone eligible. jonathan: what do you make of the science behind what you can and cannot do once you've been fully vaccinated and the little detail we've had on that front? lauren: i definitely think we could have done a better job of planning to have this conversation. the challenge is we don't really know and that's not a space people are comfortable saying. we are all learning about what you can and cannot do as we see the results from these vaccine trials and as we see the transmission data and the people who go through the faxing process and end up not getting sick which is what you want to see. the first vaccine studies are focused on how sick people get or don't get after they get the vaccine, less so about that transmission. we are looking more at whether or not it protect you from severe disease and less whether it protects you from getting infected. those are happening now and that's why the guidance is

rolling out more slowly than people would like. it is important to have a good sense of what you can and cannot do because that's what allows people to say here is what i can do and cannot do. when you ask people to make up the rules themselves they will always veer on the side of what's more comfortable for them. lisa: it seems like we are moving to a new phase of the pandemic where we started with a scientific conundrum, scientific problem people were trying to solve and laboratories. and with social distancing measures and now we have a messaging problem broadly in addition to a scientific one. when it comes to the u.s. and who is eligible and who is not in terms of what you can and cannot do. i want to talk about the angela merkel reversion saying forget it, of the shot down over the holiday is over -- is off. do shutdowns work or is this a mirage to show getting tough question mark lauren: -- tough? lauren: they do work but they

have a dramatic effect on the population. before the pandemic we had no data on whether or not these massive shutdowns and border closures worked. we just did not have the experience with them to know. data coming out of this pandemic to say that they do work and when they are very restrictive they also have a negative impact on the population. use them with caution and care. and do all the other things like social distancing, like the masking and of course getting your vaccine that we also know works that allows us to ease up on those restrictions slowly and carefully. lisa: pfizer is testing its covid-19 pill to remedy the illness if you get it. how much does this change the equation if this becomes widely available and is actually effective? lauren: this is huge. one of the challenges we've seen in the therapeutic side on the

drug side less than the vaccine side is something we can give outpatients who may have been recently exposed or just started getting sick that's easy to administer and can be done in the outpatient setting rather than an injection or infusion that can be more challenging to quickly administer or even give a prescription and have people head home and take it themselves. everyone will be watching this. all eyes will be on the data from this study and it's a very hopeful option. as we start to add more of these therapeutics to our toolkit, it will allow people to safely not seek care at a hospital if they are less ill or early in their course. jonathan: thank you. please come back soon. just some news on the shipping incident in the suez canal, traffic is expected to resume soon according to gac.

commenting on the suez canal saying the traffic is expected to resume soon. that news in the last couple of minutes. jonathan: pretty much -- lisa: pretty much in tandem you are seeing oil prices decline a bit as people assess the temporary effect or not. it seems like very temporary but the question is is eight days, is it weeks, maybe hours? jonathan: it's about the media jumping up on a story of pretty pictures in the suez canal. that was my frustration. lisa: that's a fair frustration. i think the bigger issue. i think it's important to frame this as a standalone incident that is temporary. there is a bigger issue that's being fed into food prices that have been elevated, you see across the world shipping delays and prices rising to the highest since 2016.

that focus has longer-lasting legs. jonathan: i totally agree with you. counting you down to the market. equities are up 7/10 of 1% on the nasdaq. volunteers -- bond yields stable. this is bloomberg. ♪

♪ >> the public is still engaged. diane's are still heavy. flows are step -- by ends -- buy-ins are still heavy. >> there might be room for the fed to normalize rates. >> i don't think the fed is ever going to see runaway inflation. >> the economy and stock market don't always go in step. this seems to me to be the year that main street beats wall street. >> this is "bloomberg surveillance" with tom keene, jonathan ferro, and lisa abramowicz. jonathan: yellen and powell testify, day two. good morning. this is "bloomberg surveillance ," live on tv and radio. alongside lisa abramowicz, i'm jonathan ferro. tom keene is off today. we advance zero point