>> everyone's ready and i think should be strapped in for what could be a very wild summer. >> the consumers are still seeing spending in excess of what would be considered normal. >> the demand side is still there. >> the summer is going to be huge. people are going to spend, and bounce back and oil demand is probably going to be significantly more than people have been expecting. >> some commodity prices are completely out of control. it is almost hyperbolic. >> this is "bloomberg surveillance" with tom keene, jonathan ferro, and lisa abramowicz. tom: good morning, everyone.

it is a simulcast. great conversation on radio and television. it is a tuesday after the jobs report, and we have wonderful guests. bill dudley just with us. tobias levkovich any moment, and jan hatzius will join us. the conversation starts here. jonathan: session lows on the nasdaq 100, off by more than 200 points. the s&p softer as well. big tech facing a bit of trouble amidst the conversation of higher inflation, and may be further down the road, higher rates. tom: we will get this from tobias levkovich in moments. must go back to what no one is framing worldwide, which is francisco blanch's framing copper lme up 30%, and if we don't straighten out the scrap issue, we could see a

double. jonathan: $10,500 is where we are right now. $20,000 is the upside risk over the next couple of years. tom: no one is framing that number. jonathan: i was in shock, too. china hasn't participated in this super cycle, and the conversation on wall street, and the way at would have done 10 years ago. tom: you were signing photographs, but the reality is it is important. the last time around, it was china boom. very singular. francisco was adamant it is not the case to time around. jonathan: always listening. bill dudley of bloomberg opinion on the terminal this morning, for fort hunt -- this morning, 4.5% peak isn't out of the fed conversation. who's talking about that? tom: thrilled you are with us on radio and television. let's do a joint data check here. now futures, -174.

xp x, negative -- spx, -139. the vix up from a 14 level. jonathan: the s&p 500 futures down 37, down 0.9%. big tech suffering, weighing on the nasdaq 100. we talked about that being at session lows. in the bond market, we are stable, 1.6075% on the 10 year. tom: this conversation is so important, the acuity of what we see within the equity market. we can look at sector analysis. we can also look at the bigger picture with tobias levkovich of citigroup, their chief u.s. equity strategist. are corrections healthy? i mean, down 10%, who's counting? how do you look at the good of a correction? tobias: you shake out the weak

hands of investors who are owning stocks they probably shouldn't be owning. we tend to have these fairly normally. the fed has put a kibosh on them over the last year or so since they have been providing so much liquidity, and prevented, i would argue, any corrective course of action in markets. tom: this is so important. i think of you and martin cavalli. you've got a real granular view. when you look at the distractions, the fed, the standard and miller -- the stan druckenmiller exercise, will see class officers adapt to that -- will c-class officers adapt to that? tobias: if you have cheaper funding costs provided by central banks globally, companies are going to look at what are those conditions compared to their return on capital deployed, and they will

make investments in working capital. so they are flexible. think about it from this perspective, just how remarkable the response has been from corporate america over the past year in facing the covid threats, not just to their employees' health, but also to the businesses' health. it is pretty remarkable. jonathan: are you still 3800 for year-end? tobias: i actually bumped that to 4000 on friday, driven by the very powerful earnings we have seen. we saw more than seven dollars better-than-expected results in the first quarter, so we took our expectation up, but we still think there's downside risk here. jonathan: is there a compositional shift as well? tobias: absolutely. we are more in the value perspective over the growth perspective. i may have mentioned this in the

past, we almost think of the market as a bit of a dogsled, pulled by the mega cap huskies, if you like. as they lose some of their pulling power and we replace those with cocker spaniel's, poodles, and chihuahuas, they just don't have the same pulling power. jonathan: tobias levkovich of citi with us. we will try to reestablish that. let me just jump in with what amazon issued debt at yesterday, 10 basis points over the u.s. to year. $1 billion worth of debt at the front-end, $118 billion overall. i am trying to understand how difficult it is to be bearish and some of these names given the amount of growth, given the earnings they turn out. how difficult is it to be bearish those names? tobias: it is hard to be really bearish. in the market, they are taking it out of some of the

beneficiaries of shelter-in-place, work from home, covid tracks. some of the others have just stalled. the really big mega cap stocks have stalled. over six months, they really haven't done much. as a result, we could see some weakness, yesterday talking about the advertising activity. about as good as it could get. this is not 1999, 2000 all over again, with a bubble that leads to 35% pullbacks and markets, but 10% are pretty normal, and i think people have forgotten that. tom: liz ann sonders at charles schwab on twitter moments ago, the nfib job openings survey. truly, it is not a hammer, it is not crushed, it is not a crater. it is a record spike of job

openings. can you fold that over to reduced margins on the income statement? tobias: sure. one of the things we get a lot of questions about is this issue around what could stop this market's ascent. we talk about the fed, inflation issues. but one of the others we talk about his margins. if you look at the nfib data, the percentage of small businesses looking to raise prices is less than those looking to raise compensation. you do it primarily because the market demands that. so that gap is shrinking. in other words, we are seeing fewer companies able to raise. 60% of corporate costs in this country's labor derived. as a result, it is not -- it is very important what happens in labor costs.

it looks like we will run into some trouble in the next six months, and that could hit margins. tom: let's go all jack welch. he talked about pricing power. you get wage issues as well. do you observe sectors that truly have pricing power? tobias: there are certain areas of the market that do have it. cybersecurity, very few of us are going to want to risk not having protection. those of us in streaming video are getting some attractive prices. [indiscernible] -- consumer staples. pricing in these areas would be things like disposable diapers. people pick whatever the prices. cigarettes, railroads with tight capacity, lab equipment. there are different areas that do have it. some of these you have to be

worry about -- you have to be worried about is areas where they won't be able to capture it. jonathan: the view from citigroup. biased left if it's there, think -- tobias levkovich there, thank you. here's the morgan stanley take. "disappointing employment report from friday suggests labor may be a hamper on the speed of reopening. yet, markets don't always wait for an invitation." that's where a lot of people are laser focused. tom: i totally agree, but i would focus the recalibration of what ddp does, and i really haven't seen that yet. my guess is the market is waiting for retail sales on friday before they rejigger their numbers for the next year. jonathan: every single data point has said demand is not a

problem. tom: oh, come on. copper says that. francisco blanch says that with copper. jonathan: it is a supply-side story for so many people. that is the overwhelming view. what is driving the shortage in the labor market? tom: radio can't see this, but i tear up when i see that our control room in america rings up london copper to keep you happy. jonathan: isn't that nice? is that just for me, or is that just the way to do it? we got the forecast from bank of america. what did he give you that forecast in? tom: he did it in lme, i get that. jonathan: when we get the forecast year-end from citigroup, what do they give you your forecast in? what is issei? -- what did he say? did he give you a dow forecast? tom: i don't know. good morning in chicago. jonathan: nothing against chicago. love chicago. tom: sure, i can see. jonathan: big fan of chicago.

nothing wrong with the cme. just, that's what we quote. coming up, sarah hunt, alpine woods portfolio manager. from new york city this morning, good morning. alongside tom keene, i'm jonathan ferro. thank you. some value adds. this is bloomberg. ♪ ritika: with the first word news, i'm ritika gupta. more fallout from the shutdown of north america's largest petroleum pipeline. gas stations along the east coast are starting to run out of fuel. colonial pipeline says it expects to substantially restore service by the weekend. that may not come fast enough to avoid immediate shortages in the southeastern u.s. jerusalem has turned into one of the most intense confrontations in years.

hamas fired missiles into jerusalem overnight, and israeli aircraft responded. a crypto exchange will be called bullish, capitalized by blocked off one with about $10 billion in cash. it seeks to combine the attributes of traditional exchanges with the benefits of decentralized finance. ginkgo bio works has agreed to go public in a 70 $5 billion -- in a $7.5 billion rivers merge. the transaction includes a $775 million private placement that includes bill gates' cascade investments. 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. ♪

>> for copper, we are looking at basically $13,000 per ton, and

we think we could go as high as $20,000 per ton if the supply of scrap copper doesn't make it into the market. jonathan: the kind of numbers that make you stop and listen. $13,000, $20,000. francisco blanch there of bank of america. good morning. alongside tom keene, i'm jonathan ferro. lisa abramowicz back with us on monday. here's the price action this tuesday morning. equity futures off by more than 1%. we are looking at session those on the nasdaq 100. in the bond market, we are advancing by almost a basis point. no big moves in the bond market, though. yields are pretty much unchanged. in the commodity market, wti down by more than 1%. euro-dollar advancing 0.3%. tom: thank you. so much. what we are going -- thank you so much. what we are going to do now is digress. it is rare we talk to someone in true wealth management, managing

money and doing so in a time where portfolio construction is how much apple do you own, how much amazon you own. sarah hunt has years of dealing with clients at alpine woods capital over portfolio construction. what are you doing right now? if you didn't own enough apple and amazon and the rest of them last year, how are you recalibrating in your portfolio right now? sarah: it is an interesting question because obviously, you have seen a big move in some of these tech stocks, and not a positive one in recent days. we were already in january and february thinking things looked a little bit stretched, and we were looking for value in unusual ways. we were looking at a company figuring out how to fix bottlenecks. they've gotten into security, a big market right now that people are very concerned about.

the pipeline issue exacerbates that. they had a big part of the business that was not growing and a small part growing very rapidly. it looks like there was some opportunity. tom: i say this with great respect for the late david swenson, the idea of finding sector diversification through sector selection or individual stock selection, which is it right now? sarah: it is a combination of both, really. you have seen very big movements under the indexes, where you have seen some big rotations into value and into sectors like the cyclical sector and out of some of the technology sector. biotech has had a very hard couple of weeks. tom: so what are you doing with health care? sarah: this is clearly a space where you're going to see continued growth as the population ages not just in the u.s., but globally. you also have to figure out how much was the pandemic a problem,

and how much are we going back to some sort of normal in our own health care system because the health care system has been skewed by this global pandemic. so you have to assume that at some point, the numbers start to change and some of the more traditional operations like hip replacements and knee replacements start to come back stronger. but right now you are in limbo because you don't have sort of normalized procedurals. jonathan: the nasdaq 100 down by 1.9%, off by 250 points. is this price action in search of a story, or do you like this narrative that has gripped the market this morning, that a lot of this has just been reflation bleeding into big tech growth, and it is not good for it? sarah: that is an interesting question because earlier, you mentioned that microsoft is not really an inflation hedge. traditionally it is not, but do we really think microsoft will have trouble raising its prices? on the technology side, a lot of

those people do have pricing power. is that really the issue, or is this rotation out of some names that had moved very quickly and very fast? take a look at nucor. that has gone from 50 to 100 and a very short time. that is part of the supply chain short you are seeing, but then they tend to extrapolate pricing for a propos -- for a period of time that may be too long. is that movement going too far, too fast, just like it was intact? jonathan: let's build on that relationship you think should exist between rates, real yields, and the growth market, equity specifically. sarah: i think it is a difficult thing to say that we are going to see much higher interest rates. even if the fed does have to raise, if you thing about global governments, everyone borrows so much money that i find it difficult to believe rates can go back to 5%, 6% on the 10 year. i think that is difficult because it is very expensive if

rates are that high. tom: i think this is a really and conversation about portfolio construction. sarah, what it comes down to is david kostin at goldman mentioned the duration framing of big tech stocks versus a jack welch like pricing power. you are saying these people do have pricing power. to me, that is the huge debate of the end of the summer. jonathan: btig like consumer staples. morgan stanley likes consumer staples. i keep hearing they like consumer staples because they like the pricing aspect of it. do you? sarah: given where the multiples are, i am not sure they have as much pricing power as you have in some other areas. i see the argument, but i also think that in the end, you've got a lot of choices. consumers will trade down in consumer staples when budgets are tight. you can't trade down from microsoft to a different security system. i just don't see that kind of

trade-off happening in some of the areas that are traditionally linked to industries that are better for them. tom: this is such a flashback to when toto's "africa" peaked on the billboard 100. [laughter] jonathan: sarah hunt, thank you. when did you decide that toto was the anthem for this program? tom: our technical director, it was the only song he could figure out, he was so tired. jonathan: one day, tom and i were at a barbecue or the building we both lived in. how many years ago with that? a long time ago. wish it was longer. anyway, there was a dj playing music, and you got him to play "africa" as you walked down into the yard. i still don't get it. tom: you know, it worked then. it works now. that conversation we just had,

we don't do enough of this, folks. jonathan: i agree. tom: early in the morning, we are doing copper, francisco blanch and bill dudley, but sarah is in the trenches of what do you do. her message to me was she is not worried. jonathan: commodities higher. breakevens breaking out. i get all of that. but yesterday, that big draw we saw in the big names in big tech, the nasdaq 100 this morning, and we are looking for price action first, narrative second. we are always doing that. most people are doing that. it is an inflation story this morning, though. do you see that in yields? tom: i see dow futures at -277. jonathan: and nasdaq futures off by 1.95%. is that driven by inflationary concerns, or some thing else? is it just a correction? tom: first of all, we are nowhere near a correction on a standard deviation basis, sort of like.

but there's worries out there, and the set of worries is what you got to glean. jonathan: jan hatzius joining us next. what a couple of hours we had on "bloomberg surveillance." tom: our team is just killing it. jonathan: this is bloomberg. ♪ ♪

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jonathan: live on tv and radio for our audience worldwide, this is bloomberg surveillance. things are getting choppy. nasdaq futures off 263, down almost 2%. pain yesterday. there s&p 500 down about 55 and down 1.3%. a lot of this driven by the big tech names. if you saw the picture of equities, what you expect bonds to look like? your 10 year yield is basically unmoved, up about one basis point to 1.6128. this conversation about pricing power is dominating the conversation right now with equity investors.

we mentioned consumer staples moments ago. the staples year to date are up about 4.9%. it is a move off march that gets your attention. the move off march, that as a percentage point in change, more than 10%. morgan stanley, btig, expect more than the same. tom: i cannot figure out staples versus discretionary. we welcome all of you on radio and television. jon ferro and tom keene. right now a special guest. spx at -56, down -312. the vix 22.60. there are hallmarks. one of us was in the depths when it was nasty out there. jan hans es appeared tireless -- jan hanzius was the first to

go tireless and i go tireless for this conversation. what we go for retail sales on friday? how do you assume you will readjust or the way you will recalibrate your gdp forecast? jan: we have recalibrated to some degree the pattern of job growth. friday was far below expectations. i think there is a good argument that it is hard to see these reasonably high seasonally adjusted numbers when the seasonals are looking for big increases. a lot of seasonal hiring at this time of year. quite laudable employers may be prioritized post pandemic hiring over seasonal hiring to some degree that shows up as bigger numbers. that is still going to be with us for the next couple of months.

the flipside should be stronger jobs growth numbers than previously thought later in the year. on payrolls, some adjustment was warranted. on gdp we have not made any changes. we still think u2 will be the peak growth rate. we are over -- we still think q2 will be the peak growth rate. then i think it does probably slow down after that. tom: how do we adapt to a jeff currie commodity boom? dr. currie has been way out front talking about the inertial force of metals and other prizes as well. how do you adjust to what jeff currie talks about? jan: it is not clear it has a major impact on gdp. there are positives and negatives from changes in commodity demand supplies in some areas, positive, in other

areas negative. clearly there is a reason to expect much higher inflation numbers in the short-term. that is particular true for headlines. it is true for core as well. over the next couple of months we will see stronger inflation. 2.5% for core pce, maybe 2.7% in may for core cpi. i do think that is one of the reasons why the markets are having a difficult time at the moment. weaker numbers on payrolls, at the same time the highest inflation numbers are just ahead of us. i think ultimately it will be more temporary. a lot of drivers of inflation, not just commodity numbers, but also things like the base effect and some of the impact of reopening on server prices, a lot of those are short-term. it does not tell you a lot about inflation in 2022, when we think

we will probably be back to about 2% for core pce. jonathan: in the meantime, this is the take from mike wilson at morgan stanley who said disappointing employment report from friday suggest labor availability may be a gating factor on the speed of reopening. what is your reaction to that? jan: there is probably something to that. i think there are some signs labor supply is more constrained , not only the weaker jobs number also high wage numbers, especially friday's report. relatively high rates. i think that the $300 extra unemployment benefits probably is an issue in some areas, especially low-paying industries. it is clearly temporary because it is scheduled to expire in september. this is still going to be on the books for a year two, i think it

would be a much bigger concern. it will diminish. as will other reasons for more constrained labor supply, mainly fear of the pandemic and the fact that schools in many places are still not open. all of these things will get better down the road. jonathan: clearly you do not think the supply side in the labor market need to be addressed with higher prices, higher wages? jan: they might have some of that impact in the short-term. my point is that to look at this as a policymaker, i will care more about the medium-term. what is the cell up on inflation in 2022, 2023, etc.? they the significance is more limited. tom: there seems to be a mystery on pricing powers. unit dynamics and price dynamics. i know it is a study from ages ago.

are we going to see pricing power from corporations? jan: to some degree we are seeing it in the pce and cpi numbers. there are some increases. clearly in the service sector, if you are an airline, you have no pricing power a few months ago. you clearly have more pricing power now. that has not yet shown up in the numbers. we will see more of that. i think increasing price in a number of areas are going to correspond to more pricing power. the question is is it a short-term issue or a long-term issue? i think it is more short-term. tom: i look at the path from bill dudley to jan hatzius, the former chief economist for your shop writing a wonderful essay. he talks about the inertial force once rates get going. i am curious what you think

about the momentum of rates moving higher once they finally move. jan: as often, and of course bill has been a great mentor, as often i basically agree with the idea this is going to be a later , steeper tightening cycle. we do not have any heights and our forecast until early 2024 despite an optimistic view on growth. we do think once they get going, may be just going to be slow at first, but ultimately we will see more rate hikes than what is currently priced. in the article bill points out that the market is currently priced for a terminal funds rate of about 2%. i agree that the actual level is likely to be higher. 2.5% for the longer-term funds rate.

they really want to be sure the labor market is at full employment and inflation will be above 2%. then probably they will have to go above 2.5% in the end. jonathan: what is quite a bit higher? bill dudley says 4.5% is not out of the question. jan: i would say more than what markets are pricing. 3% would be above, 50 basis points above the current estimate of the longer-term funds rate. could it be in the low to mid threes? i think that is possible. it is hard to have a strong view on something that is a number of years away. i do think it will be above. jonathan: i am wondering how we tolerate that in an economy we have added a ton of debt to. how would we tolerate a rate of that funds of three or four?

jan: it depends on what else is going on in the economy. if there is a strong bid from governments still running larger deficits that in the pre-pandemic period, i think that would mean the government is basically demanding more savings. the private sector then has to supply that savings. that may require a somewhat higher range than what you have in the previous cycle. i want to emphasize a lot of these things are pretty far away. in the near term, i have a more dovish view on fed funds rate. i think the fed will get started later than what is currently in the market. i think a lot of things can change on the horizon of three or four or five years. jonathan: thank you so much.

jan hatzius at goldman sachs. how did the no tie thing start? tom: it was jan hatzius's fault. i will say when jan showed up to do this, 3500 people died, and we were looking for any light moment, and there was with jan hatzius. jonathan: do you think when the face-to-face client meetings restart, these come back? tom: what do you think? that and other traditions as well. jonathan: i wonder what happens to the handshake? do you think the handshake comes back. tom: i am handshaking still. jonathan: i will go with the elbow. tom: can you see me doing this? jonathan: i do not see you doing that. you are too high up your tom: we have a poll going worldwide. jonathan: is as if nothing is

happening in the market. it is. we are down 1.22%. tom: a little bit better. jonathan: session lows were down more than 2%. 1.6093 on 10's. we do it all over again tomorrow. isn't that exciting? tony dwyer joining us later on bloomberg television. alongside tom keene i'm jonathan ferro. nasdaq futures down. this is bloomberg. ritika: with the first word news, i'm ritika gupta. president biden says russia has some responsibility to address the ransomware attack that crippled the giant fuel pipeline. the president stopped short of directly blaming the kremlin, but he says there is evidence by hackers or the software they used are in russia.

meanwhile some gas stations on the east coast say they're running out of gasoline. colonial pipeline says expects to substantially so -- to substantially restore service by the weekend. the biden administration is ramping up its response to the global supply shortage. gina raimondo plans a summit with companies impacted by the shortfall, that includes the largest chipmakers and u.s. car companies. the meeting will be held may 20. polantic technologies posted a bigger than expected loss. the company blames stock competition. it provides tools and consulting to the u.s. and allied governments. it overhauled its software in recent years to attract small businesses at lower prices. dogecoin rose after elon musk tweeted after whether -- 750

respondents in a half-hour. the cryptocurrency is famously volatile. over the weekend elon musk appeared on saturday night live and jokingly called dogecoin a hussle. global news 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. i am ritika gupta. this is bloomberg. ♪

>> is not transitory.

we continue to have the valuation currencies. the way governments around the world have been printing and releasing currencies into the market, particularly the u.s., you will have inflation numbers going up, which is a reflection of the currency. tom: mark mobius, surely one of my favorite people. many would say he invented em equity investing. always good catch up with a gentleman with a huge global perspective. talking with mark mobius, it is important to talk to barry ritholtz of bloomberg opinion. let me doing data check. futures -51, dow futures -276. the vix 22.18 on the vicks right now. that is a meaningful move back. we will watch this through the morning your barry ritholtz, one thing we know is david swenson

was never looking at the data check. he had a magnificent long-term perspective. one of the great mentors to you and me and everyone about a measured approach in active investing. what was your number one lesson from the gentleman from yale? barry: you have to look where the crowd is not yet. what we called the yale mo swenson being one of the first people to push into private equity venture capital and things like timber and farmland. he was first and a lot of spaces. that is where you find value. when you were the last person into the trade, all of the inefficiencies in the market, by that time, are long gone. tom: buy the rumor, sell the news. in the pandemic tech crater like anything else and then tech boomed and we got the news of a

better pandemic and a better future ahead. where is your value right now like tech was 12 months ago? barry: tech is never cheap. growth is rarely cheap. for about five minutes in march 2009 things were reasonably priced. something very different what you saw in october 2002 after the nasdaq dropped 80%. we have not seen tech that cheap in a long time. there is a reason for it. it is transforming the entire society. we do not talk about telephone companies or electricity companies, companies that use that, because every company uses that. that is what is happening with technology and it is having a big impact across the board. at a certain point it gets ahead of itself. if this had a number of other factors, i would think we could call it the elon musk talk. but this just looks like tech got ahead of itself and is

retracing back to its long-term trend line. very different than what we see at market top. tom: 4132 on the sbx level. back to david swenson and the battle over passive and active. you've been one of the world's leaders on this debate. so much of it is the kind of diversification you do. david swenson was so good at larger asset sector diversification. right now, does sector beta or individual beta matter? are you worried about individual security selection or getting the right sector? barry: i do not really care about sector beta or sector alpha because nobody has demonstrated an ability to time that on a reliable basis. some people go back and forth between growth and value. it is tough to get that right. even when some managers do

manage to get it right, you cannot tell if they have a model that works or they just get lucky. we try not to get too involved in that. we want to be somewhere between 60% and 80% passive and then 20% in things we hope will outperform, whether that is a style bet like small cap or value or a concentrated bet, we have lots of clients who have built their wealth from concentrated positions in their employers stock. if you look -- if you work for google or apple or amazon or microsoft or name the company and you've been diligently holding onto that stop, you are dealing with an -- holding onto that stock, you are dealing with an outsized pile of performance. being able to select that in advance exceedingly challenging. i can show you, for every amazon

there is 100 lehman brothers and qualcomm's and all of the other hot names that eventually rolled over. tom: it is so interesting, the dow at 35,000. we understand it is a great bull market. within your history and particularly because barry ritholtz enjoys making and losing money for people, there is nothing like real-world experience, how to bull markets end? barry: there is a rumor that bull markets die of old age. that cannot be more long -- more wrong. full markets cannot die. they are killed. they are murdered by policy mistakes. tom: you see it right now? barry: i've not had a chance to read the essay but i think the gist is correct. he says the bet -- the fed is right to let inflation get a

little out of hand. the inflationistas have been wrong every cycle since the 1970's. they are the ones at risk of killing the bull market. the flow deficit chicken hawks, the people who want to take the punch bowl away early, that is what will kill able market. a little bit of inflation, even if we are at 4%, four-port 5%, that is not the sort of thing -- a 4.5%, that is not the sort of thing we saw in the 1970's, that is not zimbabwe or south america. they have it wrong. i have come around to thinking the political class now has engaged in this sort of let's do what we can to kill the recession, to kill the expansion to hurt our opponents. you see that in the fake deficit commentary, you see that in the

inflation commentary. you see that in the criticisms of the fed. these are people motivated by hoarding their political opponents, and they need to be called out. tom: barry ritholtz, we look for that from bloomberg opinion. thank you for joining us. important comments from david swenson and the perspective of barry ritholtz. dow futures -278. nasdaq futures 2.02% down. the bics 22.24. -- the vix 22.24. the currency space, i am waiting for 89 on dxy. i do not have it yet. watching sterling, hoping jon ferro will go home. 1.4052. jon ferro needs 1.44 to exit across the atlantic. bloomberg technology from boston tonight exploring the state of their biotech, their education,

as the city opens to the success of the boston red sox. this is bloomberg. ♪

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set for the start of u.s. trading. this is "bloomberg: the open" with jonathan ferro. ♪ jonathan: a little bit of pain in equity land. from new york city for our audience worldwide, good morning. the countdown to the open starts right now. the s&p 500 down 1.3%. the nasdaq off 2%. we begin with the big issue. inflation fears gripping markets. >> inflation is here. >> the tech sector being a key example. >> the equity risk premium for the nasdaq. >> margins are going to be under pressure. >> the tech sector will weigh on more heavily. >> fragility in the equity market. >> the 10 year yield. >> we have watching this rally. >>