alix: live from new york, i'm alix steel. guy johnson is off. european markets are also closed today. u.k. prime minister boris johnson announcing a vaccine passport program to open up travel and a biweekly covid testing push for every citizen. who's to blame? heads will start to roll at credit suisse over multiple risk failures, from greensill to archegos. and technical retreat. goldman sachs closes its six month old short dollar call, while traders pricing one rate hike by the end of the year from the fed and four by the end of 2023. we are watching secretary yellen's speech expected to argue for a minimum global corporate tax rate. in the markets, everything in the green with the exception of

energy because oil is off by about three dollars, weighing on the index. big tech really flying higher, record highs for the leica facebook, etc. -- for the likes of facebook, etc. dollar coming off a little bit today, so the pressure of a weaker euro is lifted, but will it be sustainable? the outperformer in the bond market is in the belly of the curve. steeping of the yield curve for five 30's, so watching that -- for fives-30's. we are watching that. killer ism number out earlier across the board, superstrong. the price pressures continue. the market still looking through that. . let's stay with the euro-dollar and get the technical take. macro risk advisors' chief market technical strategist

joins us now. walk me through euro-dollar. it hit some key technical levels last week. where are we here? guest: one thing to keep an eye on for the euro-dollar is this $1.16 area. it is a major inflection point. it goes back to september and october of last year. also take a look at the indicators on the bottom. it is very oversold, so this is about where we should start to see stabilization in the euro. alix: does stabilization necessarily mean a weaker dollar, or could we have a weaker dollar that doesn't move anywhere from here? john: i am in the camp that the u.s. dollar will continue to weaken for years to come. i am in the dollar bear camp. i think it is a structural bear market. the first thing we need to see is if we look at the euro stabilize above this level of or we say -- this level before we say let's be aggressive on the

euro. alix: let's go to tech. the story was higher yields are going to hurt tech, no we are getting record yields on some of the stocks. john: a fantastic chart emerged last week. what has caught my eye is the relative performance trend of the technology sector. it got very oversold, very cheap. from my perspective, it is worth nibbling a little bit on the technology sector, given that it hasn't really done anything since july. alix: does that mean something good or bad for small caps? john: it is tied into the whole rotation. small caps are really more in a consolidation phase. we've gone from rotation to counter rotation, so right now the ball is in tech's court,

whereas small caps have started to underperform a little bit. right now, momentum is with technology. alix: which is interesting because the vix is below 20, when the story was we are in a different period for volatility. where are we here? what happens now? john: i think there is a slight worry here for the markets. just think about where we have come in the last two weeks. the market has started to get to new highs. the indicators show that the vix is oversold. i think from a tactical standpoint, as the market trades at new highs, having a little vix in your back pocket might not be a bad idea. alix: really get to catch up. appreciate the technical set up.

love to have you back. john kolovos of macro advisors. treasury secretary janet yellen to speaking at the chicago council of global affairs. we will take some of her q&a later on in the hour. coming up, ethan harris, bank of america securities head of global economics. we will get his concerns about the divergence and recoveries all around the world. this is bloomberg. ♪

ritika: i'm riupta. let's take a look at your first word news. a big win for google today at the supreme court. justices ruled google did not commit copyright infringement when it used oracle's

programming code in the android operating system. that spares google from paying what would have been billions of dollars in damages. the sectors hit hardest independent on our bouncing back. the ism services index soared everyone in england is being urged to take a coronavirus test twice a week, part of prime minister boris johnson's plan to reopen the economy. test kits will be free and usefulness of covid passports be assessed for widescale use. 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. alix: thanks so much. treasury secretary janet yellen speaking to the chicago council on global affairs, calling for a global minim tax rate on corporations. we will take her q&a and just a little bit. she's also calling on other

nations to avoid early fiscal tightening. joining us now is ethan harris, bank of america's head of global economics. is the u.s. going to make a mistake here, lots of money pumped into the economy and then raising taxes? ethan: i think we have to take the tax increase in perspective. the biden adminstration is proposing a tax increase that would play out over a 15 year period, and matching that with an infrastructure plan that plays out over eight years. if you look at just the next eight years, the tax increase, even as proposed, assuming the whole thing goes through, is only half of the infrastructure spending, so the net-net is a pretty big stimulus to the economy. remember, this is the proposal, and once moderate democrats get involved, my guess is that they water down the tax increase. alix: nevertheless, you're still seeing higher rates, markets pricing in fed rate hikes

margaret civil. -- hikes more aggressively. ethan: i think right now, you've got basically full speed ahead. there's no fluke in the recent data that you just described earlier, the fantastic ism numbers, the payroll number. all of that is being driven by reopening, massive fiscal stimulus that will continue on a forward basis, and a very slow motion fed. no reaction by the fed to the strong data. so i think that we've got a pretty much on fire economy well into next year. but then you get further out, and the fed has to make a decision. they've been very unclear about what the endgame is. what do you do if you are the fed and you have already achieved a red-hot labor market, and you are already getting

significant rise in inflation? what is your next step? that is going to be a real challenge. so let's enjoy the next couple of years, but it could get rocky by 2023. alix: what do you think we are going to see in terms of productivity and wage hikes as infrastructure starts to work its way through the u.s. economy? ethan: on the wage front, it takes a little while to get wages heated up. you are still at an unemployment rate of 6%. if you look at the underemployment rate, which is a broader measure, that is still at about 10.5%. so there is room to bring more workers into the labor market without creating any real wage pressure, but as we go out two, three years, wages should really start picking up. it is a combination of the stimulus package, but also just the general dramatic improvement in the jobs market.

so it is going to take a while to get there. alix: no doubt the goods economy is superstrong. we see that with the ism, with the jobs number on friday. the service economy is strong, but it could be stronger. what kind of upside gains should we be looking for, and how fast do we get there? ethan: i think the next few months, you are going to see all of these numbers hit new records. you could easily get a payroll number as high as 2 billion in a month forward. we've still got a long way to recover. we are still more than 8 million jobs below where we started, but you could see jobs really go off the charts. for the purchasers index as well, they are running at 65% of companies saying things are improving. that could go up to 70% or even higher. this is the beginning of a run of very hot numbers, and i don't think it is fully priced into markets either.

i think there is still some upside surprise coming. alix: where do you think we are not fully pricing it in? where should the 10 year yield be, for example? ethan: if you look at it, the market is pricing in a hot economy, but not as hot as what we are forecasting. for example, we have u.s. growth of 7% this year and 5.5% next year. the bloomberg consensus is 5.7% this year and 4% next year, so you can see there's almost a 1.5% gap between our very bullish call and the consensus, and i think that is partly reflected in all of the markets. so there is still room for growth in the equity market. there is still room for upside on the dollar, as the u.s. continues to outperform. the 10 year yield, 10 year yields eventually should get up

to around 3%. i don't think it happens overnight. but the move we have had so far just brings them to kind of modest recovery levels. they need to price in something much stronger. alix: you guys were bullish on the jobs number, and you were right when it came to friday. i guess the next question is what does that do to the rest of the world. the imf managing director said while the outlook is improved overall, prospects are diverging dangerously. vaccines are not available to everyone everywhere. people continue to face rising job losses in poverty. add to that a 3% 10 year stronger dollar, what does that due to to the economic inequality in the world? ethan: i agree that this is a very troubling situation. as you move away from the u.s. and more into emerging markets and then into the frontier economies, the outlook looks pretty bad.

you have very slow vaccine rollout, particularly in some of these economies that are not at the center of the global economy. they can't do stimulus because the markets won't allow them to run the kind of budget deficits the u.s. is running. so they are in a tough bind. i don't think it is all bad news for them. i think the rising u.s. bond yields is clearly not wanted around the world. they also don't want a strong dollar. it puts pressure on them to defend their own currency. but what they do benefit from is very high u.s. imports. so while it is a challenge to them, i don't think that the u.s. strength is the main issue for emerging markets. i think the main issue is that they have been so slow to get covid relief, and they have already used aggressive policy

tools to offset the current crisis, and there really kind of out of ammunition. it is troubling. i certainly share that. the u.s. is putting a little extra pressure on them, but i don't think that is the story. alix: how can the u.s. support the global economy like china did 10 years ago? is that really going to happen? what does that global recovery look like? ethan: china is also going to be supporting growth. china has had a pretty quick recovery from the virus through very effective tracing, tracking, and quarantine. obviously they bungled things at the beginning, but then got on track. they are already relatively strong and will continue to grow above trend. so they are going to provide some stimulus to the global economy. the main way that china helps is through commodity markets, so there is some benefit to

commodity producers in emerging markets. the u.s. can be an engine of growth as well. it is mainly a consumer investment product demand, obviously not nearly as much commodity markets. i think the concern would be for emerging markets, to what degree is the u.s. recovery service driven and what degree is it domestic focused. you have an infrastructure plan that is a buy america plan. you have the reopening process that is mainly driving the service sector. so the spillovers or the coattails of the u.s. are modest. that is why i think it is true that on net, this is a challenge for emerging markets even if the u.s. helps in some ways. alix: ethan, it was really good to catch up with you. 2 million enjoyed for -- 2 million employed for a jobs

report. when you see that happening? ethan: any of the next few months we could get 2 million. alix: great, i will take it. ethan harris, bank of america head of global economics, things a lot. i appreciate it. this is bloomberg. ♪

♪ ritika: it is time for the bloomberg business flash, a look at some of the biggest business stories and news right now. shares of gamestop are falling. the retail chain says they will sell up to 3.5 million shares. it is the stock that has been championed by reddit traders, up more than 900% this year. apollo global management is leading a group of investors aiming to buy a roughly $10 billion stake in saudi aramco's oil pipeline. the consortium will include u.s.

and chinese investors. the oil pipeline sale is part of a saudi effort to attract investment. kkr has agreed to pay almost $3.4 billion freight 1% stake in sempra energy. the business includes the u.s. infrastructure a -- infrastructure assets. the goal is to simple five corporate structure and develop a gas and renewables project. that is your latest business flash. alix: thanks so much. an executive shakeup may be on the way at credit suisse. the swiss bank's leaders are discussing whether to replace chief risk officer laura warner and/or others. joining us is our senior analyst for investment banks. this is obviously off of archegos and green silk -- and greensill. whose head should roll here,

alison? alison: obviously we will learn more about the play-by-play, but i would say it is not surprising. i would actually be surprised if there risk officer wasn't in the hot seat, if you will, in terms of oversight and what has been happening at the bank. i would also be surprised if there weren't changes made to the prime brokerage unit. on top of that, i think as we wait to see exactly how big the loss is, how big the charge is, investors are becoming concerned that no news is bad news, and i think when the bank announces this charge and when they come forward to investors, i think they are going to have to give their review of what happened to have some sort of sense in terms of what should

have been done and where things may have fallen down along the way. alix: new ceo thomas gottstein, what should be his responsibility here, and/or how long does he have to prove to wall street, to investors that they are good to go and they have trimmed the fat? alison: keeping in mind that he came into the role about a year ago, amid another scandal, the prior ceo involved in the spying scandal at that time, and then over the course of last year, as we know, there have been a few other things that have gone wrong at the bank, two of which resulted in major charges. one relates to residential mortgage backed securities, so this is an issue that really predates the ceo, whose most recent successes include what he did with the swiss universal bank, so very separate.

it was also the hedge impairment charge. there have also been another couple of issues. so the question is since he has come in charge and things have sort of bubbled up, what has been done to tighten the reins, and where there reporting in place in terms of what is happening with governments, was risk controlled? where was the fall down and risk control? was it particular person -- down in risk control? was at a particular person? there was an interview the other day with one of their major shareholders. i think that is going to be a voice that management is going to be listening to as well, but the regulators i think are really i play in the week ahead. alix fair enough. that was david herro saying let's give the new ceo some time. before i let you go, what do you

think the regulators are going to have to do here? alison: at a minimum, the regulators are going to say paul's on the capital return -- say pause on the capital return. that is something investors have been increasingly pessimistic about as time has gone on. they do have the ability to absorb a significant charge, but i think the regulators are going to say you need to pause and really make sure you have a handle on things, not just the things that have happened, but what are the processes in place and what needs to be put in place ahead. i think what you will see is not just a big charge coming out of this, but you are going to continue to see elevated costs, perhaps a little bit of elevated struggles as they really make gs at the bank.their a alix: no kidding. a fascinating story. thanks very much. really appreciate it.

as we have been highlighting treasury secretary janet yellen, she is just about to take questions talking about a global minimum tax to help everyone with stimulus, and that one country should not pull back on stimulus to quickly. let's listen in before her q&a. sec. yellen: action must go hand-in-hand with international leadership in significantly enhancing global action. we are working closely with international partners and international organizations to implement ambitious emissions reduction measures to protect critical ecosystems, build resilience against the impact of climate change, and promote the flow of capital for climate aligned investments and away from carbon intensive investments. we are also working to ensure

that climate risk is integrated into the financial system so that financial institutions, regulators, and investors can make informed decisions. i am pleased that treasury is cochairing the newly launched g20 sustainable working finance group, where finance ministries and central banks will work together to identify mechanisms for promoting green investments and accelerating transition to a net zero economy. as i prepare to meet with my colleagues from around the world this week at the imf and world bank spring meetings, i find myself thinking back to policymakers who gathered in bretton woods a year before i was born to define our post war order. it was a different time.

i emphasized the and or miss weight they faced -- it was a different time, and emphasized the enormous weight they faced. our current juncture is no less significant. what we doing the coming months and years will have profound impacts on the trajectory of our country and on the global economic order. of course, there are key differences from the postwar era . maybe most noticeably, we will be joined later this week by other female finance ministers, central bank governors, and heads of international financial institutions. not enough, but a start, as well as diverse representatives from

all corners of the globe. our interconnected -- in our interconnected and digital world, and considering the pandemic, i will be logging onto a computer to join these meetings, not trekking to a mountain resort in new hampshire . there is a recognition that our policies must be designed to be inclusive, echo equality and reflect our environment. i will use meetings this week to advance discussions on climate change, press our partners to do their part to support strong global economic recovery, tools to improve vaccine access and financing for the world poorest economies and increase the focus on inequality, including for

vulnerable populations. i am honored to serve the american people once again, to listen to the underrepresented, to be bold in action, and to cooperate with global partners to solve the challenges we face together in building the next century of prosperity. thank you. >> thank you secretary yellen for that insightful speech. a reminder of how what is happening around the world affects us here at home, as well as how we move forward with our partners, we need to find a world that is more inclusive as well as sustainable. we would now like to turn to some of the members of council. the first person is a member of

our board, ceo of the ywca metropolitan chicago. >> thank you secretary yellen. it is an honor to have you here today. i want to thank you for acknowledging the importance of gender equality for economic prosperity. many studies including the imf and world bank reference the -- gender parity and how it could add trillions to the economy. how do we get countries to prioritize gender parity as part of their agenda, and not just women's issues? >> there is a wide range of steps we need to take to promote gender equality. in our own economy. increased involvement of women in the labor force, as you

indicated, promote advances overall for the united states and serve to raise family income. female labor force participation has muffled off at a rate that is lower than what we see in many advanced economies. in looking for the reasons, it looks as though our failure to provide affordable childcare and paid leave is important. as we think about our own policies in the united states moving forward, i would say it makes sense to focus on enhancing benefits in those areas, particularly to promote a more inclusive environment for women to participate in the labor market. the imf and world bank have

prioritized similar steps around the world. improving legal rights and equality for women in many countries where they are hindered by legal barriers and social barriers to participate. and also supporting their participation through greater education for women and other programs. ivo: thank you. our next question comes from alex lou, a young professional at the chicago council of global affairs. >> thank you. secretary yellen, thank you for taking your time. the pandemic has had a significant impact on students and younger people in the workforce. from your perspective, do you have suggestions for us to not only thrive but also become more

fluent in global issues? sec. yellen: i think it is very important for young people to study about the global economy and ways in which we are interconnected with our neighbors and to appreciate the importance of the multilateral system we have developed in the postwar period. and for need for cooperation to share global responsibilities and work cooperatively on mutual problems like climate change. i hope that young people will focus on, and study about the global economy. this pandemic has been particularly tough on young

people who are in school and have had to study remotely. i am very hopeful that because of this -- because of the steps we are taking including speeding vaccinations, dealing with the pandemic, and the economic support we are providing that the job market is going to become more robust in the months ahead and that young people will find a job market where they can find good opportunities to get ahead and get on the ladder to success. ivo: thank you. the next question comes from regina cross, vice president at goldman sachs as well as an alumni of our emerging leadership program.

>> thank you. proposed elocution seeks to stabilize support, lower income in developing nations in the wake of more than 3.5 percent global economic contraction. how can the u.s. collaborate with other nations to ensure equitable distributions for the most vulnerable populations and accountability and support of democracy for all? sec. yellen: thanks for that question. we are very supportive of in allocation -- at this time particularly because of its potential to help low income countries that are burdened by debt and lack the fiscal space to deal with the pandemic and its economic consequences. when special rights are allocated by the imf, they go to

countries in proportion to their quotas in the imf. so, they are broadly distributed , and a large share end up going to do -- to advanced, developed and middle income countries. -- countries that are most in need. importantly, many advanced countries have indicated a desire and willingness to channel portions of their own allocations back to provide further -- examples, the imf has a poverty reduction and growth fund that many countries are likely to either lend or donate

portions of their own allocations. that will multiply the impact of an scr allocation on the poorest countries of the world. you mentioned accountability, we want to make sure that the allocation goes to support relief and economic support in the lowest income countries. we are working with other countries and the imf to design it disclosure and reporting framework that would enable us to see how the scr's that have been allocated have been used and to monitor the ways in which they have supported the purposes that we have in mind. ivo: the next question comes

from the president and ceo of william blair, more importantly, the chair of the board of directors. >> thank you. in your letter to the g20 about six weeks ago, you urged the g20 to go big and take significant actions and avoid withdrawing support too early in order to foster growth. how big is big? is there a limit to how much debt either the u.s. or g20 can occur? at what point does it become inflationary? if they go bad, -- if they go big, how do we go forward without causing another recession?

sec. yellen: great questions. congress recently passed a $1.9 trillion package, the american rescue plan, to address the pandemic and its economic consequences. i would describe that as going big. the purpose of the package is to address the needs of american households, families, companies that have been adversely affected by the pandemic to avoid scarring, to avoid damage that could permanently impact the ability of individuals and families against the other side of the pandemic and get back on

track with their lives. and to avoid the failure of small businesses that are the lifeblood of their communities and that provides so many jobs to americans. we have designed the package to direct support to make sure that people, especially the maniacal ready -- the minority and low-wage workers who have been so effortlessly affected by this crisis to make sure they have income during this time that they are jobless. to make sure they have enough food to eat. make sure they can keep a roof over their head. and do not lose a family home. it provides money to state and local governments for a variety of programs to address the

burdens of the pandemic to get their local economies on track and to begin to address infrastructure needs that were highlighted by the pandemic such as the absence of broadband that penalized so many rural families and families in low income areas when their children needed that in order to participate in school. can we afford this? i believe we do have fiscal space to be able to afford it. it is in part because we have been in a low interest rate environment in the united states , and that has been true among developed countries generally in recent decades. for reasons that i believe are not just transitory, but reflect

longer-term structural problems. in spite of the fact that u.s. debt has risen quite a bit relative to the economy, if you go back as far as 2007 when u.s. debt to gdp ratio was 35%, it has now risen to around 100%. the interest burden on the debt because of the interest rate trends has been completely unchanged. will it be inflationary? i strongly doubt it is going to cause inflationary pressures. we are in a deep hole. the u.s. economy is still down around 9 million jobs, and if we were to count individuals who have dropped out of the labor force to take care of children

and because of health concerns, the true u.s. unemployment rate is close to 9%. the congressional budget office estimated that without the american rescue plan, the economy would probably take until 2024 to get back to full employment. i am hopeful that if the vaccination program proceeds as it has been that we can get back to full employment next year. we had, before the pandemic, an unemployment rate of 3.5%. the problem, for a very long time, has been inflation that is too low. if the package did prove to be inflationary, we have the tools to address it. i see the risk as asymmetric,

that i worry more about long-term adverse consequences from not doing enough than problems that would result from doing too much. i believe we have the fiscal space to act boldly. i think it is important in mitigating the suffering of the pandemic and the long-term adverse consequences to u.s. potential output if we failed to do so. it is important for us to learn the lessons from 2008 financial and economic crisis. we had a very slow recovery after that crisis. it took us almost a decade to get the economy fully back on track. it is important that we not repeat that experience.

i think we are doing the right thing. longer-term, the president biden and vice harris -- vice can -- vice president harris are dealing with longer-term challenges facing the u.s. economy. low growth package that will, over a decade, invest in crumbling infrastructure, our roads, bridges, highways, broadband, the electric grid, people, giving them the tools and training they need to be productive in research and development over the long-term, these investments are the cornerstone of making our economy competitive. ivo: secretary yellen, i know you have a hard stop, so thank

you for joining us today. honoring us with your virtual presence with your first big international speech. we appreciate you being part of our -- >> janet yellen and the chicago council on global affairs. much more for her to talk about, i am sure. she says risks are asymmetric and their deeper worry is that there is not enough stimulus. the current stimulus is asymmetric, and confident the government and the fed can deal with different inflations. she doubts the stimulus will stoke inflationary pressures and says the low interest rate phenomenon is not transitory. that might be more stimulated. she is also asking to go big. we will break down what that means, goldman sachs reversing their short. this is bloomberg. ♪

>> coming up, and kilter joins balance of power. this is bloomberg. >> six months ago, goldman sachs recommended shorting the dollar. today, it calls it quits. their team called a tactical retreat as of this writing, though we expect dollar to appreciate. rising bond yields may keep the greenback supported over the short term. joining us now, one of those strategists, head of global fx interest. thank you for joining us. >> pleasure. >> how long until we get that dollar short trade back on? >> potentially not very long.

our view is still quite bearish on the broad dollar outlook both from a cyclical standpoint and a structural standpoint. we have a quite expensive currency and a recovering global economy. structurally, you could add other concerning things like a widening deficit, china's financial reopening, things along those lines that could weigh on the dollar. but we are trying to do with trade recommendations is give investors -- to extract value over time. until recently, that has been dollar short. looking ahead, the thesis pivots around europe. the thing we think is underpriced and underappreciated by investors are the prospects for european economies who have done -- who will do well, and that will be supportive of the euro.

to evaluate best expressions, maintaining a medium-term bearish dollar thesis and we will likely be focused on potentially european upside for further recommendations. alix: does that mean the issues with the vaccine are already priced in or we are looking at a delayed recovery echo -- recovery? >> we believe concerns are overblown in general. there is a misunderstanding on how europe's covid situation looks. the pace of vaccinations is picking up and we are looking for major acceleration. we think lockdowns will also control the -- in europe. downside risk due to covid vaccinations are probably overpriced. if we get our baseline forecast, we think our kids will start the price in a rapid recovery. walk us through the tactical part -- alix: where does the dollar have

room to appreciate now, and when you are able to put back on the short, where will you see bang for buck? >> it is about europe and the euro itself. upside risks for the euro are fairly attractive. we would like to get more information on where the covid case numbers are going in the pace of vaccinations. some further guidance on the vaccines from the european medicines agency. that information will be important for the euro. then the question becomes, what other currencies would benefit? our benefit is usually that oil linked assets would be positive canada, norway. others look mixed. australia could be weighed down by iron ore prices, and we have a dovish view on the mastic bank. will linked currencies are the major place to focus if we get

our forecast of european rebound. alix: what is your -- when it comes to rates? >> it likely means some convergence in rates between the euro area and to u.s. you have a wide gap in the moment between what is priced in the u.s. and what is priced in europe markets are discounting a large degree of divergence. we think too extreme. some convergence in bond yields would be the main thing. some further upside in bond yields globally, though i would emphasize we have had a big repricing at this point. our forecast for 10-year treasury yield's is 180. some further upsides, but we are getting there. the market has repriced substantially and i would not want to expand -- my targets. alex go -- alix: the five-year hitting a

low on the day. 93 basis points. do you think there is value in the --? >> belly or front end, something like a three-year point looks cheap relative to our expectations for the fed. the market is pricing in a number of rate hikes. some possibility of rate hikes starting as soonest when he 22. we think it best 2024 consistent with what they wrote down themselves. probably too many rate increases, too much inflation fear priced into the front end of the u.s. curve. whether we want to belong on that plan i think is a tough call ahead of what we think will will be strong data. steeper looks attractive, as long as -- as well as longs and breakevens. alix: thaa lot. we appreciate you jumping in.

i should point out, the s&p right around the high of the session as you have strong buying. dollar strength taking a break. coming up, our washington center for equitable growth president and ceo will join "balance of power" with david westin. don't forget to tune into bloomberg radio's cable show at the top of the hour. boris johnson will be speaking again, looking for a vaccine passport. there is one of them. also, twice a week covid testing for the entire u.k.. hopefully we will get detail on that as well. this is bloomberg. ♪

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david: from bloomberg headquarters worldwide, welcome to "balance of power." we start with a check on the markets. joining us is abigail doolittle. looks like everything is coming up roses. [laughter] >> risk on mood for the markets, in delayed reaction to the blowout jobs report. of course, it has everything to do with liquidity. investors chasing stocks higher. it is interesting, we have an all-time high again for the s&p 500. we also have the tech heavy nasdaq up sharply. both of those being helped by the apples and microsoft's of the world. the year of course has been dominated by the banks and small caps. this started last week, we have banks and small caps underperforming the -- 2000 up fractionally. we have