economy stays driven by the u.s. exit from covid restrictions. >> no, we are not done with the adjustment to a shock. big shock down and big shock up. >> people do not like inflation, but they will tolerate it to a moderate level. >> it is difficult to take a wage increase away. >> they give the impression of over and done quickly -- i do not think it will happen. >> this is "bloomberg surveillance" with tom keene, jonathan ferro, and lisa abramowicz. jonathan: good morning. this is "bloomberg surveillance ." alongside lisa abramowicz, back in the hotseat, i am jonathan ferro. tom keene taking the day off. equity futures down to 10th of 1%. --.2 of 1%. we have to talk about a deal

flow potentially in america. lisa: at&t and discovery, discovery acquiring at&t's media assets. at&t just purchased a bunch of these assets within the past six years, offloading it. yet stockholders seem to be happy. jonathan: three years ago, $85 billion were these assets. that is quite some turnaround. lisa: some people are saying if they see something not working, at least they are doing something. arguably, they will get good valuations. shares up, although discovery getting the bigger boost in an era where the more media content you have, the bigger potential advantage you have. jonathan: can we spare a thought -- can you imagine if he had held on for a couple more months? viacom-cbs as well. lisa: isn't that the story of the past 14 months? it was all timing.

and on the lips at all the people who went into amazon, apple, etc., now seeing themselves getting hammered on inflation concerns. jonathan: i am not sure anyone at credit suisse is playing a small violin. some deal flow to talk about. equity futures down 10 on the s&p 500, declining .25 of 1%. the euro-dollar, 1.2157. the you're just a little stronger, the dollar just a bit weaker. lisa: everything is different, yet nothing has changed. that is my impression from last week. i left and the index dropped the most since february. at the same time, on what? inflation concerns because you saw upside surprise that was

largely expected? we knew there would be distortions. anyway, we will get a sense of potentially what supply dish -- disruptions may be continuing. u.s. manufacturing data at 8:30 a.m. at 10:00 a.m., we get housing markets, index data. homebuilder sentiment is expected to cool off because you see the high prices limiting how much people are actually buying. 10:00 a.m., interesting to see what the fed vice chair richard clarida will say. what will he say about transitory? how much will he emphasize this with potentially even bigger upside concerns? in 1:00 p.m., joe biden deliver more marks on the covid-19 response and vaccination

schedules. this comes after my own 12-year-old son just got vaccinated. and i wonder what the schedule is for everybody else and how this administration plans to combat hesitancy to get vaccinated. jonathan: congratulations to the young abramowicz. is he watching? lisa: i doubt it. [laughter] jonathan: and i also understand he is interested in buying bitcoin. bitcoin -- we were down a little more at 4%, but yesterday, we closed by a poinsettia -- elon musk alluding to the fact that he may have already sold his bitcoin holdings, and followed that by clarifying he had not. lisa: i do not get this. also the idea that he came out and said he was concerned about the environmental considerations with bitcoin, the fact that it

takes a lot of energy to mine bitcoins. we knew this for a long time, he knew this for a long time. why was he emphasizing this now? then to reverse that. can we take this ceo seriously? jonathan: it seems to be moving this asset class massively, which undermines the asset class and distracts us from the amount of improvement we have seen over the last several years and increased institutional involvement in that asset class. i think it undermines the asset class and distracts us from some of the important fundamentals. lisa: and raises the question what is he thinking? what is his goal and will he be in the hotseat with respect to market manipulation? jonathan: tom asked that last week. lisa: he ran away, by the way. jonathan: yes. lisa: we are pulling the transitory game with me coming back and he piecing out. jonathan: i am sure he is drinking somewhere.

-- is inflation accelerating or growth decelerating later this year? >> i think it is a little bit of both. we do think the transitory word is overused. the right or days we do not know. it is noisy. growth will definitely decelerate. in the second quarter, it comes down. the better question is, when we get through the noise, when we get through this apply-demand imbalance, will the price stay sticky? no. jonathan: talk to you about your value base case with the incoming data we have seen. brian: the cpi print, and i know it is one print, so we will look through it a bit, but i've been in inflation markets for a long

time, and that was the biggest surprise i've seen, the fact that the 10-year note did not really move. our base case is the 10-year note stays in this 6 to 8 range, which is boring. but we do not think the fed will overreact. maybe in jackson hole. maybe after they will discuss tapering. our base case is actually a little bit more of a boring range from bonds. and growth continues to stay strong, but we do not have enough clarity, and will not till summer, to have more conviction on that. lisa: perhaps less boring when it comes to emerging-market credit, for example high-yield bonds in the united states, some of the higher risk names priced to perfection more sensitive to actual inflation. how has that altered in terms of your view going forward, putting

aside the 10-year treasury yield? brian: that is what has actually amazed us, and me personally. you can think about the inflation and the risks, and you can think the central bank is buying so many bonds that you cannot tell with a price. but then you go to markets more difficult, like high yields and emerging markets, where central banks have not been involved, and they have behaved very well too. investors do not seem worried about it. the triple c market in high yields -- we do think there are places that are frothy, just like any other market. if you look at domestic yield curves, you can actually earn bonds and a little bit of coupon for the first time in a long time, but we think those markets continue to do well. lisa: your colleague, andrew sheetz, came out and said morgan stanley had downgraded the recommended credit allocation to neutral as a result of this

hotter and shorter cycle we are looking at. can you give a little bit of sense of where you are going to exactly reduce allocations in the credit bucket? brian: if you look at our markets broadly, they are back to levels where historically we have found resistance. maximum overweight credit of these yield levels have not generally been a great idea, so investors reach for the riskiest assets, because they get the most yield, but that is where the danger parts are, where the uneven growth will hit, where the supply chain concerns and price pressures will hit, profitability. so you take down the riskiest names, and go into safer emerging-market names. that is where you get the most bang for your but. -- the most bang for your buck. jonathan: let's discuss ig -- 9-is to ig in europe right now. great story from bloomberg news over the weekend. 80% of the issuance has come in

that market so far this year, already below the issue price. it is brutal out there. brian: it is, and is dell duration. -- and it is all duration. buying short duration of core bond. it is rare to get these 5%, 6% negative moves in fixed income that perpetuate themselves. one of the region we are range bound is people are underweight wage duration again. i think being less a fate of duration over the next year is probably part of the story as the inflation theme over plays itself. jonathan: interesting. brian weinstein there. just a touch on what is happening in italy, the 10 year up by another five basis points to 1.123%. real repricing taking place over in europe. lisa: and you wonder how we can

get higher inflation for even a year without there being higher benchmark yields, whether in europe or the u.s., and in particular in emerging markets. i asked that because food inflation is hitting emerging markets particularly hard, and you wonder at what point that leads to a cycle of higher rates? jonathan: and that it is on to the ecb and the federal reserve when they meet next month. for the ecb, things get little more complicated. the premarket repricing -- the bund market repricing is a different story from the italian market repricing. quite a move. lisa: these are huge moves, and it raises a question about what point will fiscal move -- kick in? jonathan: we want to bring you the headline and of europe, the e.u. and u.s. temporarily

stopping the tariff dispute. no surprise that they are may be removing some tension ahead of the president's first overseas trip. tom keene will be back tomorrow. coming up at 7:00 a.m. eastern time, little bit later, sebastien page at t. rowe price. equity futures, 41.58. shout out to ed hammond of bloomberg news with an interesting story he broke over the weekend, that at&t is in talks with discovery. this is bloomberg. ♪ berg. ♪ ritika: israel's prime minister signaled he is not ready to let up on attacks against hamas positioned in ghaisar. more than 200 people have been killed, the vast majority in gaza. non-yahoo! says he will whatever it takes to restore order.

constant rocket attacks from gaza lead to retaliation from israeli warplanes. in china, the economic recovery remained on balance last month. industrial output remains strong. fixed asset investment grew. but retail sales growth slowed to 3.4%. more revelations coming out in the wake of bill gates' impending divorce. micro foss conducted an investigation into gates' invol vement with an employee almost two decades ago after allegations he tried to start a relationship with her. bitcoin study daft there elon musk said tesla had not sold its holdings of the token. musk clarified earlier comments

that the electric carmaker had sold or may sell its stake. global news 24 hours a day on air and at bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i'm ritika gupta. this is bloomberg. ♪ this is bloomberg. ♪

jonathan: from new york city to

our audience worldwide, good morning to you all. alongside lisa abramowicz, i am jonathan ferro. tom keene out of the building, will be back tomorrow. equity futures down, declining one third of 1%. the fx market, euro a little firmer. the italian bond yields breaking out again. 1.2162 on the euro-dollar, up .2%. i was having a sleepy weekend. ed hammond was not. our deals reporter joins us now, that at&t in talks with discovery what -- with discovery. what did you learn? ed: we learned they are in talks, which is the most important that. it seems to be going quickly. we expect the announcement, probably premarket, that these companies are combining content assets. it will essentially be the warner business, which is the content piece of what they

acquired through the time warner merger, is coming out of at&t, which makes sense, because it has been a disaster for them. according to a lot of people who worked there, they have stripped the dna out of it, so the business does not really fit them. they will spin that out and it will essentially merge with discovery, and my guess at this point -- just speculation -- as some part of that, there will be a cash payment to at&t, because at&t needs cash. they need to pay down debt, pay down dividends, and they will not get rid of this asset just for stock in a new company. jonathan: you sent everyone scrambling to get more details on this. before we get more of the details of who may run it, can we talk about who may put a bid on, a counter offer? ed: there has been talk about potentially other parties coming for some pieces of this. you could look at viacom coming

in for some of it. it is quite hard to see any one buyer trying to take the whole piece, just as we know there was already a lot of antitrust pressure in this industry, concerns about plurality, about too much concentration of ownership in the media. especially now with the new ftc, how they have already behaved and the language coming out of there, you would need to have a fairly aggressive view of your ability to get this through regulator if you were trying to do a whole company bid here. lisa: can you talk about the price discovery would pay in what form that would take? ed: we think the deal would be structured as a reverse mark trust, which what will happen is effectively at&t will spin off the warner business, and the warner business will make some kind of payment, borrow money,

make some kind of payment to at&t. after that, the warner business mergers with discovery, discovery shareholders and up owning one third of the combined company, and at&t shareholders own two thirds of the company. essentially what you end up with is a situation where you have an enlarged discovery coal owned by at&t, discovery shareholders, and at&t are able to extract a cash payment from them. jonathan: ed hammond, our deals reporter. discovery up more than 12% in the premarket. we have craig moffett and michael nathanson. it was just friday -- i said you and i do not get to talk much, and here we are talking about the potential of a deal. your reaction? craig: it is inevitable. it is a clear concession of defeat for at&t. it just did not work. they paid too much.

and by the way, congratulations to ed for terrific reporting over the weekend. we know some cash has to come back to at&t, but does enough cash comeback back that it offsets the amount of debt that this company supported for them, so that they do not come out even more leveraged than they went in? i am not sure they can do that. at&t has levered it four times, so they will have to lover the new entity at more than four times ebitda. jonathan: we have to talk about what on earth went wrong here. before we get into the details, what on earth went wrong here? three years ago, $85 billion for these assets. michael: first, the start -- craig: first, the strategy went wrong. this is a company that said they

understood the legacy media business was about to enter a period of a decline. why on earth would you enter a business about to go into secular decline? strategically, it never made sense. then they made it worse by overpaying. they came out of this business woefully over levered, and this is a company that is in the telecom business, where there is a tremendous need for capital investment, and if you cannot make the capital investment, your core business falls behind. i think they are coming to terms with they need to clean up the mess, but it is incredible. they spent close to $200 billion on these two companies combined, and now they are selling them -- as ed said, there will not be a real price on this as -- exit, but it is clear they have lost terrifically. lisa: michael nathanson, is this

the best way to clean up this mess? michael: good morning. it is the only way. there is really no one else. i am surprised by the timing, because hbo max has potential to create more value, but at&t couldn't wait. so this is a really good outcome for discovery. that is my take on it. lisa: do you think discovery would be able to charge the amount necessary for cistercian fees to compete with the likes of netflix with this acquisition, or do you think this could also be viewed as just an ongoing mistake adding to the mess already created? michael: i was just looking at the market cap for netflix and disney. hbo max is in the same league long-term as those assets, they just have not gotten there yet, because they are not global. and you have a call option.

where evaluation is, it is a call option, hbo max to the upper league, and discovery plus, a lower tier product that will be helped by cnn. for them, why not? this is not expensive. i know they will manage it well. money is cheap. given where disney has moved to one streaming hopes, why wouldn't you try this? jonathan: i want to talk about the competition -- but for at&t, what does the future look like for you? craig: they are a business that is now back to being a telecom business. they have a wireless business -- by the way, in that, they look a lot like verizon. not quite as skewed wireless as verizon, because they still have a meaningful wireline business, but their service revenue growth, excluding the selling of

equipment, is negative 1%. their ebitda growth in the last quarter was -5.7%. rating agencies have said that the downgrade rush holt is 3.7 times. they are still facing an enormously steep, uphill challenge. jonathan: a massive challenge, and a massive challenge for the spinoffs to compete with what already exists. only last week, we were talking about the challenges for the disneys and netflixes of this world, and now we are talking about a new entry. walk me through how you think this looks in a couple years time and, if we have got to that point where consumers are already looking around and saying i do not need more than two? michael: the bundle will keep losing subscribers. you will have less people subscribing to the bundle.

and what you will have to do is take you cnn news and turner sports assets and put them into discovery plus, make them a low enough priced subscription product with advertising that keeps it in a range of consideration. a $10 to dollar product supported by advertise as well. in the near term, no doubt. what we said last week old strew. pull forward, reopening. you are seeing a slowing of subscriptions right now. longer term, as more people cut the cord, this is the only way out for both of these companies. they have to do this. lisa: that is the long-term view for the streaming industry. for telecom, what is the long-term view? we are moving away from a media mixed model that we solve the major telecoms try, moving towards 5g, for the potential of

infrastructure spending for the government? what will be the narrative driving the next 10 years for telecoms in the u.s.? craig: i guess the narratives right now or whether 5g will prove to offer the opportunity for new revenues or whether it is just more of the same. having done this for longer than i've cared to admit, every time you go through one of these cycles, there is the hope and dream that this particular cycle, whether it is 2g, 3g, 4g, now 5g, will have all these new revenues associated with it that the old cycles did not have, and therefore, it will get to be a fundamentally better business. i think that is the hope this time around, that with 5g, some of the was words of mobile edge compute and those kind of things, will those be new sources of revenue? let's hope so, because otherwise you are still in the business of selling connectivity for a price. unfortunately, the capital

investment requirement goes higher and higher and higher each generation, and revenue has not come historically. jonathan: just before we go, what do you think bob schaffer is waking up thinking? michael: probably that we need more content to a bit. i will assume for craig, which i know you hate, but if i am comcast, i -- bob schaffer is not concerned. craig: it is a real problem for comcast. they find themselves in the same position discovery was in before this deal and at&t was in before this deal, which is that the streaming future, for them is peacock, is a subscale to really compete. and this is potentially the last bite of the apple ticket that scale you need to be a serious

player, so now what do you do? jonathan: if these two tie the knot, do we get coverage at moffitt nathanson? craig: absolutely, and it will be michael's. michael: i finally get more market cap. the last three years, my market cap has been given to craig. jonathan: viacom, discovery. lisa: do i have to call dr. phil? [laughter] jonathan: we will work it out. craig moffett, michael nathanson of moffitt nathanson - of moffettnathanson. here is the price action your waking up to on the east coast. futures down 15 on the s&p. nasdaq down about .4%. the russell up .8%. market movers -- at&t up by a little more than 3% in the

premarket. discovery rallying almost 13 percent -- 13%. the yield, 1.623. lisa: are you planning a vacation anytime soon? jonathan: i am, in a couple weeks. lisa: are you action going to go on a plane? jonathan: of course. lisa: i got on a plane with my family, and it was normal-ish. everybody wore masks. jonathan: i can probably speak for some of the business community -- it is actually a pleasant experience, because it is pretty quiet. even though the planes may be fuller, the capacity has been cut, so the importance -- airports aren't. lisa: i agree, and i hear business travel is picking up pretty dramatically domestically as people try to get some sort of upper edge.

and there is this feeling that leisure flights will start to roar in the united kingdom as the u.k. reopened leisure flights, as of today. i am sure you already tracking this closely. another person tracking this is bloomberg's emma chandra. can you give us a sense of what the reaction has been so far to this reopening of leisure travel? emma: yes, we are at the airport at check-in right now, and we are seeing a steady stream of travelers getting ready for their flights. we are still at a fraction of the normal capacities. -- the u.k. government instituting a traffic light system. there are just 12 countries on the green list, which means you can travel to a number of those countries and return without

having to quarantine. you still have to take a covert test before you go and when you come back. even among those countries, some of those not accepting international travels, but portugal is their main european destination for u.k. travelers. that was particularly popular before the pandemic and certainly popular at the moment. i spoke with the easyjet ceo and the gatwick airport ceo, and they say demand is high, they just need more european destinations added to the green list. jonathan: so many are confused about who is on the list and who is not. if you are at gatwick or heathrow, speaking to the big airlines, they would not be focusing on europe, they would wonder what on earth is going on with the london-new york corridor. have we learned anything about that whatsoever? emma: you're absolutely right. this is something that gatwick ceo addressed directly, saying 10% of flights from here are usually going to the u.s. and how important that route is.

while they are writing for the likes of france, greece, and italy being added to the list, they really want north america to be edited as -- added as well. that would certainly be the case for heathrow. they say they are lobbying governments in direct conversations, really hoping they will take this risk-based approach, and look at vaccination levels not just here in the u.k. but also what is going on elsewhere to try to get the crucial routes open. important for tourist travel and business travel. jonathan: did you get the short straw to be sent to the airport? who is going to the puib? [laughter] emma: well, there is a proper reopening, but the last few pumps were open at -- pubs were open at midnight to celebrate, not so much this morning. we are here very early, waking up to the gorgeous smell of jet

fuel. of course, really nice to be out in the field. but it would be nice to have the -- hit the pubs later. jonathan: slowly getting things back to normal. if i were still in london, that is not the gig i would want. lisa: i think tom keene got the gig covering the pubs last night. jonathan: it was 6:30, even 7:00 a.m., and people would be drinking in the terminal. lisa: no doubt. jonathan: you get to go to gibraltar, portugal, get to go inside a restaurant, inside a pub and have a drink. volume in london will drop off a little bit later, no doubt about that. most people will try to get back in a restaurant and get back to normal, hopefully. lisa: we will say transitory plenty of times.

nick bennenbroek joins us now. the risk factor, the indian variant -- i know there's a lot of concern about that. can you walk me through your risks around this revised reopening we are seeing in places like america -- i am referring to demand, not necessarily the supply response. your take? nick: i think the indian variant -- jonathan: in terms of the consensus view that everything starts to move in the right direction later this year, that we get a return and it becomes more synchronized, are you on the same page on that view? nick: pretty much. i would say the u.k., u.s., australia, new zealand, canada, most of those major economies are doing well. it is really the emerging economies, india and brazil and these types of economies, where there is still concern about how the population is being

vaccinated. so generally i'm a pretty robust, but mainly concentrated in emerging markets. lisa: we saw disappointing resale -- retail sales in the u.s. and overnight from china. does this give you pause that perhaps consumers are not spending as much as economists have been spending? nick: probably a little concerned more about chinese numbers then u.s. numbers. the u.s. has government support going on. china is interesting simply because the comparison -- this quarter of 2020 was the toughest period for china during the covid crisis, so it is really over the next few months, april, may, june, that we start to get some cleaner reads on the chinese economy. if the data continues to disappoint out of china during the second quarter, that is

probably more of a global concern with a sense that maybe china was not quite as strong. jonathan: there has been a lot of confusion, people in the commodity market looking at a huge super cycle. china has not been a big part of the conversation. what is your base case for china this year? nick: the chinese base case is still pretty good, just not as good as we thought it was going to be. we had a growth forecast of 9.5%, 10%. it is still an impressive number, especially considering the chinese economy did grow in calendar year 2020, but there is probably downside risk to that. probably looking at. -- probably looking at a percent to 9% growth, which is still pretty good. if we had that range, then the tops of the commodity prices we have seen will be sustained. jonathan: can i get an fx question in, can you talk about

foreign-exchange? nick: i can talk about anything you want, rugby, football. jonathan: let's stick to fx. where does the dollar call fit in with everything you talked about? nick: we have looked for u.s. dollar stability. over time and longer-term u.s. dollar strength, i think the longer-term u.s. dollar strength could continue for now. it has been tough for the u.s. dollar in early 2021. if you look at currency, canada is doing extremely well. what is interesting in particular is in terms of not wanting to move away from easing monetary policy anytime soon, if that is the case, then we could see bigger gains than the likes of the canadian dollar, the euro. lisa: there is a question about more inflation, particularly in

the commodities space that is agricultural, and the effect on emerging markets. perhaps you may see a weaker dollar, but it will not necessarily be against certain emerging-market currencies. can you talk about which parts of the world will be hit by the dynamic you are laying out? nick: if we look at the emerging economies, we are probably looking at turkey -- i think it is sort of country-specific. turkey has policy, continuity issues in terms of the central bank, significant concerns around covid, and in brazil, some covert concerns and political issues. these seem to be currencies that are not very sensitive to any bumps along the road. those are currencies we think will fall on the strong currency upside. jonathan: good to get your

views. nick bennenbroek, wells fargo international economist, touching on the euro and europe briefly. five straight days, up on another five basis points up to 1.2 percent. a lot of people listening may be saying that is still very low -- it is, but it was only a few months ago, in fact february, when we were at 46 basis points on the italian 10 year. that is quite a turnaround. lisa: and it raises quite the conundrum for the ecb, because the economy is not necessarily proving out the strength people are seeing and predicting later out in the year. so how do they respond? jonathan: what are you more interested, the fed meeting or the ecb? lisa: the fed meeting, because signaling tapering will be the key, will that be the discussion? jonathan: looking forward to that. coming up, joshua sharfstein, johns hopkins bloomberg school of public health joining us.

how did the cdc mask move become so controversial? equity futures down 14 on the s&p. yields unchanged, 16267. alongside lisa abramowicz, i am jonathan ferro. this is "bloomberg surveillance ." ♪ ritika: with the first word news, i am ritika gupta. a truce between the european union and the u.s. on metal tariffs. the dispute began in 2018, when former president trump imposed duties on steel and aluminum from europe and elsewhere. now, the two sides have agreed to discuss the metals issue. the chances of president biden getting an infrastructure bill with support from both sides are

rising. still, the agreement over how the legislation could be paid for could kill any deal. and israel stepped up its attacks on high-ranking commanders in the hamas that rules the gaza strip. israel said it attacked terrorist weapons and infrastructure. the u.s. and other world powers have called for an end to the violence. prime minister benjamin netanyahu says action will continue as long as necessary. and the long anticipated air travel bubble between hong kong and singapore has been delayed again. the quarantine-free air travel arrangement lisette to start last november, but there were rising cases and hong kong. this time, there is a rise in infections and goldman sachs has been on an unprecedented hiring

spree in china and hong kong. it is planning to hire -- western markets are responding to china's decision to open its financial markets globally. global news 24 hours a day on air and at bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i'm ritika gupta. this is bloomberg. ♪ g. ♪

>> for guidance were released

thursday is on individuals and what individuals are at risk of doing is they are not vaccinated. if they are vaccinated, they are safe. if they are not vaccinated, they are not safe. this is not permission for widespread removal of masks for those who are vaccinated. jonathan: the last bit was little confusing, so we will get some clarification. that was the director of the cdc. from new york city, good morning. lisa's back with us. equity market coming back off a week of losses, down one third of 1% on the s&p. unchanged on the 10 year. the euro-dollar, 1.2163. totally unchanged on crude, about $60.40. i was told over the weekend that nature is healing. spotted last week and midtown

manhattan were a group of individuals wearing patagonia vests. lisa: in the wild. [laughter] jonathan: which means one thing -- the offices are getting back to normal. can you confirm you have seen people in patagonia vests going back to work? kailey: i've. patagonia is back care coffee carts are going. more than a year after employees were sent home because of the pandemic, jpmorgan is opening its offices to all u.s. employees. the headquarters behind me has been open for some time, ceo jamie dimon coming into the office since last june, but locations in ohio and texas were still at least partly shuttered. people have started trickling in already this morning, wearing patagonia or otherwise. this building will not be full. only 50% capacity for the time being. of course, this is just step

one. jamie dimon last month saying he expects all employees to be back in the office on a consistent, rotational basis by early july. but of course, this is the largest u.s. bank, and it is really a bellwether, and it is the first or mandate a return to the office for employees. goldman sachs looking at mid june for its return to office for employees. others, like bank of america and wells fargo, not looking at dates until september, post labor day. nonetheless, wall street starting to come back to work. the patagonia vests are outcome and that is the case here. jonathan: i was hoping someone would walk through the background -- [laughter] lisa: you had plans. jonathan: we have to start wearing those things -- you should wear patagonia, but just can we bring the tieback -- the tie back? lisa: honestly, i love how you prepare for coming back to the office.

really a fashion statement. jonathan: we have to get back to a tie, wearing a suit, feeling good. kailey: no more sweatpants. jonathan: absolutely. tom and i were talking about this. we need to bring the tie back. lisa: there was actually a shortage of dress pants that was actually pretty widespread over the past month as people realized they had to get out of the sweatpants. jonathan: it is so funny. everywhere you look, there is a data point about demand and supply struggling to match it. they have to change their size. lisa: i've heard that was the case. jonathan: there is data to back up -- [laughter] joshua sharfstein joining us now, johns hopkins bloomberg school of public health vice dean. there was a line from rochelle walensky -- we should also say

this is not permission for widespread removal of masks for those who are vaccinated. what does that mean? dr. sharfstein: i think it means that the actual policies in a particular area are going to depend on the rate of spread of the violence. that it may make sense in certain areas to have indoor mask requirements still, because there are so many people on vaccinated. but in general, the statement the statement the cdc was making was that vaccination looks incredibly effective. lisa: what has changed between march 8, when we originally got some of the guidance, and today? dr. sharfstein: what has changed his new research showing just how rare it is for people who have been vaccinated to get sick , and also how rare it is for people vaccinated to pass the virus along to others. it is not impossible. but it is very rare. and it is more effective than the flu vaccine and others that we commonly take. lisa: do you think the cdc has

gone too far, that they are allowing people to take liberties, allowing the likes of walmart is a you do not have to wear a mask without perhaps checking a vaccination passport, since those do not exist? dr. sharfstein: i think the cdc thought it was important to give good individual advice to people and speak to individuals about their risk, and i think some of the confusion is that people have taken that advice for individuals and applied it to business or communities settings without thinking of the bigger picture. i think that is why we are seeing a different set of decisions being made in different areas. the analogy i've been trying to think through is imagine if you had a car that could always make it through an intersection on the red light yet never make it to an accident. that will be an interesting card to have. but that does not mean you will just get rid of traffic lights. there would be a lot of cars i do not have that capacity, and traffic lights are still pretty

important. and the fact that there are cars out there like that would not change the need for traffic lights. when all the cars i like that, you may not need traffic lights. so it is a different world. when virtually everyone is vaccinated -- that is what they are trying to drive through. jonathan: i understand the analogy to a certain degree, but i have been confused by the amount of pushback the cdc has had. isn't this what we want from the cdc, that here is the science, and aussie makers make the policies. i want the science from the cdc. isn't that what you want? dr. sharfstein: absolutely. you should not interpret what i am saying as criticism for the cdc telling individuals -- to me, this is a case of advice for

individuals being over interpreted, overuse, may be rather than that there was a problem with the advice, so to say. jonathan: joshua sharfstein, johns hopkins bloomberg school of public health vice dean. i think this is where things get complicated for people. from the cdc, you just want science, and too often, there has been concerned whether science is being conflated with social issues, ethics, all of the above. lisa: there's also the legitimate concern for, say, the worker of a coffee shop who does not know if someone coming in is vaccinated or not vaccinated, and that person is not wearing a mask, and they do not feel safe. do they have legitimacy and the law behind them, the cdc recommendation, to say "please put on a mask"? jonathan: they do. companies get to set policy. lisa: yet those who are rewarded for taking looser guidelines may not be so good for public

health. jonathan: from new york city, alongside lisa abramowicz, i am jonathan ferro. tom keene -- i can confirm tom is watching and drinking. lisa: wearing patagonia. jonathan: transitory, transitory, transitory -- enjoy. this is bloomberg. ♪ loomberg. ♪

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♪ >> the global economy is being driven by u.s. exit from covid restrictions. >> no, we are not done with the adjustment to a shock. big shock down, big shock up. >> people don't like inflation, that is true. but they will tolerate it to a moderate level. >> it is very difficult to take a wage increase away, so i do think wage growth could be on the way. >> this is "bloomberg surveillance" with tom keene, jonathan ferro, and lisa abramowicz. jonathan: from new york city for our audience worldwide, good morning. this is "bloomberg surveillance ," live on tv and radio. alongside lisa abramowicz, i'm jonathan ferro. tom keene back with us tomorrow. the s&p down a couple of