>> 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 shot down, big shock up. >> people don't like inflation, but they will tolerate it to a moderate level. >> it is very difficult to take wage growth away, so i think that could be stickier. >> 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 tomorrow. equity futures down 20 on the s&p 500. we declined by a couple of tenths of 1%. your story of this morning, discovery and at high up with the assets of at&t, and discovery this morning absolutely flying. lisa: and rightly so. the idea is that they are going to be potentially presenting competition to the likes of disney+ and netflix at a times when streaming rains supreme. -- streaming reigns supreme. how many people can have streaming in a world where you can actually do stuff? jonathan: discovery closed almost at $80 earlier this year. my question this morning is how bill hwang would have felt this morning if this deal got done. you look at this price and whether what -- and wonder

whether these talks would have happened if archegos hadn't blown up because discovery is still trading at half the price it was three months ago. lisa: have valuations in stocks certain stocks been reset enough to create some of these opportunities? i thing it is a great question. on the flipside, there's a question of how much m&a activity can get done and some of the highflying stocks, particularly in the cyclicals given where valuations are now versus how much they could potentially have room to as this cycle drags on. jonathan: we are learning about the numbers this morning. also learning a little bit about the leadership as well. david just left -- the warner media ceo just does not get a mention. there was a press conference about 32 minutes ago, and the at&t ceo saying the warner media ceo's future is to be determined.

one man who hasn't gotten a mention is the former at&t ceo. running a company is really difficult. this is not me throwing any shade at mr. stevenson. but this morning, it is about unwinding the failed strategy, the failed acquisitions of a former ceo. lisa: then there is a question of how they use the cash infusion if they are getting the $47 billion. are they going to pay down debt, and will they end up more leveraged post per transaction? how much does that adapters potential -- how much does that increase their potential to adapt to the 5g environment? jonathan: as we take you to the opening bell about one hour and 20 zone minutes away, -- one hour and 27 minutes away, we are down on the s&p about 0.4%. in the bond market, 1.6345% on

tens. euro-dollar just a touch stronger at on dollar $.2150 -- at $1.2120. wti down. lisa: i was taking a look at the real yield. it got really negative over the past week or so. when i was gone -- jonathan: we missed you. [laughter] lisa: but it raises this question of, will you see the moving real yield and not a nominal yields? this is basically an indication that the fed is keeping its thumb on yields completely and it is not an indication of where inflation is. jonathan: real yields going the other way. lisa: it is interesting. just thought i would mention it with the nominal yield so boring. jonathan: i'm not saying it's boring. lisa: but tom would. jonathan: tom would. lisa: "nobody cares, go to

cash." jonathan: the voice is deeper than that. lisa: ok, carry on. [laughter] jonathan: lisa hornby joins us now, head of u.s. multisector over at schroder. as you look across the c-suite in corporate america right now, do you see a lot of people looking to defend their credit ratings after the last year? lisa h: yes, actually, and i thicket is particularly true for some of these low rated companies. if you look at what happened last year with the fed, they essentially gave a lifeline in the pandemic to any company that wasn't a great at the start. that does, and our view incentivize companies to maintain that bbb rating and hold onto it which is why we are

at this point then we are on some of their higher rated -- we are higher on bbb's at this point then we are on some of their higher rated single a counterparts. jonathan: is the same true of bb, and for people outside of fixed income and those not familiar with this that i'm -- this dynamic? the line in joke status is that line between -- in junk status is that line between bbb's -- . bbb's and bb's. is there more to come? lisa h: we think there are attractive upgrade candidates. i think there are some companies that potentially do want to or have been fallen angels, and went to come back into the investment grade universe.

at this point i think there's probably more upgrade candidates in the high-yield space then downgrade candidates certainly. lisa a: although morgan stanley downgraded credit to neutral as far as the recommendation allocations, and they were citing this hotter but shorter credit cycle keep talking about. a lot of people are signing onto the idea that inflation will really hit some of the weakest players here at a time when their assets were price to perfection. you agree with that? yes would you agree with that? -- would you agree with that? lisa h: in terms of credit, overall valuations, you can't make an argument and say anything is attractive. it is certainly broadbrush. you look at valuations across the investment grade and high-yield universe, and essentially we are in the bottom decile, which means things have been cheaper historically, so quite clearly this is not a fist pounding market in credit anymore. it is very different than where we were six months ago. that being said, there are still

some opportunities, idiosyncratic opportunities, upgrade candidates, but you cannot paint the market, particularly the high-yield market, with a broadbrush. lisa a: it doesn't necessarily lead to an overall portfolio that can do more than clip coupons, especially at a time when the margin for error is so low. the cushion on any increase in yields is so narrow. how are you preparing investors in terms of expected returns, and terms of potential pitfalls of investing in credit at this moment? lisa h: that is a great point. we are much more defensively positioned. we are still somewhat constructive on investment grade credit, but much less so than we have been over the last three, six, or 12 months. think back to march of last year , it was basically a once in a decade opportunity to buy very cheap names and it almost didn't matter what you bought as long as you bought something with spread on them. the market environment today is almost completely the opposite.

there are very few names out there that looks very attractive. this is certainly not a beta driven market anymore, meaning we have to look a little bit harder to find the opportunities, make sure we understand the credit profile. as we say, some more radio casing credit -- some idiosyncratic stories, but certainly not brought overweight to the high-yield or even the investment-grade sector. jonathan: what is your position in italy right now? you and i have talked about this in the past. lisa h: we actually don't have a position in italy. we have seen yields move so low recently. we just prefer to take our duration positions right now in the u.s. so we don't have any cross market trades on. we are modestly short duration in the u.s. market. we do think that rates, that this relief rally that we saw over the last couple of months probably set to fade a little bit has we see inflation data come through it more strongly

than people have been expecting, even though the narrative of transitory inflation has been out there for some time. jonathan: it has not taken hold of the italian bond market for sure. then q, as always. lisa hornby -- thank you, as always. lisa hornby. italian bond yields are heading north. just want to bring you a comment from sarah fisher of axios on this discovery/at&t tie up. "the ceo david zaslav said they will start by investing $20 billion in content, more than what netflix spent on content last year, roughly $17 billion. so make this -- to make this a success, you have to spend a tremendous amount of money on content, and surely that might be the intention of the discovery ceo. lisa a: the idea is, will it be worth it, or will this be an ongoing mess as we try to reconfigure the idea of where media is today?

how many streaming service is a person has. how many do you have? jonathan: 3, 4? jonathan: i have at least -- lisa a: i have at least that. jonathan: i know i'm in the same boat as a lot of people thinking about the same thing after last year, and it is notable that netflix, a big miss on subs. from the, big miss again. in a call with moffe ttnathanson, they said that is payback for a pull forward last year. lisa a: but the idea that you are not getting punished for taking bold moves, you are being rewarded indicates where we will are -- where we are in the economic cycle right now given how much cash these companies have on their books. rob qfii sick -- rob profuse -- rob profusek to an s -- profusek

joining us later. yields unchanged at 1.6318%. as lisa tells me, it is not boring. it took you two hours and about 11 minutes. lisa a: to interrupt you? jonathan: no, just to be a little bit bearish. [laughter] lisa a: oh, i've got bearish views. jonathan: i give you another 10 minutes. the old lisa will be coming back. [laughter] from new york, this is bloomberg. ritika: with the first word news, i'm ritika gupta. huge deal in the media industry today. at&t will get $43 billion under an agreement to merge the agreement assets with discovery, with channels ranging from hbo to hgtv and the food network.

the european union has reached a truce with the u.s. when it comes to metals. that means products like harley-davidson's won't have tariffs next month. the dispute began in 2018 when president trump imposed duties on steel one aluminum from europe, asia, and elsewhere. one side has retaliated, and they have agreed to discuss the issue. israel has increased attacks on movement in gaza. meanwhile, hamas continues to fire rockets as civilian areas. benjamin netanyahu this action will continue "as long as necessary." more revelations coming out in the wake of bill gates' impend ing divorce.

christophe conducted an investigation into involvement with an employee to decades ago after saying he tried to start a romantic relationship with her. the company did not reach a conclusion because gates stepped down from the board. 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. ♪

>> this is a company that is in the telecom business, where there is a tremendous need for

capital investment, and if you can't make the capital investment, your core business falls behind. now they have to clean up the mess. jonathan: that was craig moffett, moffettnathanson analyst, reacting to the news there. david zaslav will be dealing with that entity as it combines. from new york city, this is bloomberg. alongside lisa abramowicz, i'm jonathan ferro. your equity market coming off the back of the week of losses, and we add to them. the s&p 500 declining by 20 points, down 0.5% going into the opening bell one hour and 12 minutes away. yields on the nominal yield unchanged at 1.635%. euro-dollar, $1.2143. crude down 0.7% on wti, $64.92. news of the morning, we got some deal flow. lisa a: a lot more exciting than flat markets. we are looking at discovery

taking on the at&t media assets. we believe it is going to be in this reverse morris trust merger as ed hammond was talking about. the idea is we give it a cash infusion to at&t in return for a merging of media assets to rival the likes of netflix and disney+. the question is, can they be successful in such a competitive area? jonathan: always the question. the discovery ceo, we are keeping cnn. we are going to lean into the news. discovery is higher in the premarket by around 12.8%, just off session highs so far. let's turn now to robert profusek, jones day global chair of m&a. great to catch up with you, sir. i'm in the cheap seats, so i am going to read out your line. "i give at&t a lot of credit for willingness to react, even change course rather than worrying about critics in the cheap seats. anybody who says this is a

failure hasn't paid attention to the tremendous changes that have occurred so suddenly." just build on that if you can. robert: i think there's no question because of the timing, people are going to say this is a mistake, with the new ceo of at&t and all that stuff. but standing back from what we have been through, it is not just a couple of years has passed by. it is an extraordinary period, particularly in streaming. the game has changed. two biggest competitors, you heard from analysts earlier this morning, they've got almost four times as many subscribers as at&t does. so putting things together and allowing that business to bulk up on its own, taking some money out, which is one of the beauties of the reverse morris trust structure in the process, to be able to help deal with the

great flow that at&t has with the move to 5g, and it is odd to talk about telecom being this nimble, responded to the circumstances. jonathan: if you were another company this morning, i wonder how nimble you would have to be. what do those conversations look like this morning? do they have to get together quick? robert: there's a lot of that going on anyway, and certainly the way this activity works, when there's a big headline grabbing news, it does accelerate things. but frankly, for a variety of reasons, the m&a market has never been more active than it is right now. talk to anyone in the space, and i think they would say that. is it going to continue? yes. is this deal by itself going to

change it significantly? no. but there is something about this headline grabbing activity and the willingness to move quickly and the willingness to take a step that, if i were in the board room at at&t, we had all these activists a bit ago. are they going to be criticizing? they basically said, ok, we will deal with that. so that may have a such a lo -- a psychological impact on some companies. lisa: i was talking earlier about how the shares are up so much for the market for discovery, even though there is so much hope baked into this trade. this industry has been so much dramatic change, it is hard to know exactly the dramatic changes that are upcoming as we adapt to a streaming world. how do you determine when an m&a transaction is something that is able market product, that is frothy, that will be regretted in the future, versus something that really has legs? robert: that is certainly hard

to predict, and if i could predict that, i wouldn't be a lawyer, that is for certain. when you look at from discovery's point of view, in order for the deal to work, the company in discovery's position has to be smaller. it is a lot smaller, obviously. and it is very different. discovery is known for different kinds of activity, and we are talking about the news. not only the news, but news that everybody knows about, and all sorts of things in terms of the at&t assets. it is really a game changer from discovery's standpoint. i could see why from their point of view, they said this is the opportunity of a lifetime. and their ceo is running the business, but one of the things that is kind of unique, but i suppose reflects the relative equity splits here, at&t is actually a employing a majority

of the board. usually it goes to the other company. lisa: meanwhile, this from craig nathanson -- craig moffett of moffettnathanson, excuse me. what he is saying is that it is not being reported that at&t snuck in a quiet dividend cut. jonathan: anticipated cash flow of $23 billion. craig moffett saying that the dividend has been cut. are we happy with what we are hearing elsewhere? lisa: or is this not the issue that people are looking for? are they looking at a morning bull company that is able to deal with it. jonathan: always appreciate your insights, robert profusek, jones day global chair. not john's day. lisa: it is always jon's day.

[laughter] jonathan: perhaps when tk is out. lisa: i do wonder how you invest that much money at a time of such dramatic change. the change isn't over, and we haven't seen the shuffle out here. it raises the question, especially given at&t's investment, of how much could change that three years, especially a 5g takes off. jonathan: anticipation. you've got to anticipate that's moments -- anticipate those moments. lisa: the streaming? jonathan: the transformation over the last five years. lisa: the trends have really accelerated there. one of the big questions is what happens to sports. how much does it re-shift the entire landscape overnight? jonathan: that's all i am watching now, news and sports. lisa: did you see the tottenham goal. actually no, the liverpool goal.

jonathan: you are worse than tk. " did you watch the goal?" lisa: he got the head into the goal. it was pre-good. jonathan: this is like a sketch, honestly. [laughter] this is bloomberg. ♪

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jonathan: live on tv and radio, here's your price action. s&p 500, 4151. down .6% on the nasdaq. goldman sachs putting out a note over the weekend. comments inspired by that note. think of the potential of higher real rates, higher taxes, decelerating growth. what is the equity market look like with all of that in mind? switch of the board and get to real yields in america. the 10 year real yield rolling over. now negative 91 basis points. a bit of a move higher, substantial move higher into

march, and then lisa -- and then recently it rolled over again. lisa: you are not getting compensated for inflation expectations. i wonder where the fed comes into play. let's say they talk about tapering. what happens to the negative real yield? what does that do to markets? jonathan: intuitively, that is what you would expect. i have no idea. this is what your nominal yield looks like. switch of the board. futures declining. nominal yields climbing almost one basis point on 10. on 30's, up about one basis point. outside of the discovery deal, no real drama in this market. lisa: no real drama. i would say that is true. under the surface a lot of drama. the other thing is the drama of getting back to the office. we have all been back to the office.

here is your soap office -- here's your soap box. patagonian vast spirit jonathan: we are getting back to work. we should celebrate that in a way that is more energizing. do you want to go into a room with the client with the patagonia vest and no tie? lisa: we need soft music underlying this. kailey leinz is on patagonia vest watch. let's get her take. jonathan ferro, our fashion correspondent. kailey leinz, you are outside jp morgan's new york offices. they will be reopening their nationwide offices. their new york office has been open for the entirety of the pandemic. why is this a significant moment in this reopening of corporate america? kailey: jp morgan is the largest u.s. bank. it is a bellwether for the u.s.

financial industry. it was the first to mandate all employees returned to the office, the first to get that timeline. jamie dimon doing so last month. he has said he expects all employees back in the office on a consistent rotational basis by early july. that starts today. this headquarters where i am standing has been open for the duration. jamie dimon has been coming into work since last june. in other places like ohio and texas, office still virtually shuttered because of covid-19 and that changes today. it is -- jp morgan making this move sooner than other banks. goldman sachs says they expect a comeback by mid-june, but others like wells fargo not looking at a returned office until after labor day. jonathan: it is not about the business behind you. the business behind you has done tremendously well. the individuals working there

have carried on working. it is about the businesses around that headquarters behind you. it is about whether they will recover. as many people have seen walking around manhattan, those companies, the cafes, the places you would go to get your coffee, your lunch, they have been struggling for a year and more. kailey: that is absolute right. the first thing i saw when i walked up to this building was the guy running the coffee cart right behind me and thinking about what his business has been like for the better part of the last year and change. that is definitely a factor. the cafe standing next to where i am is not open at this point in time. it will look different in manhattan when the bankers returned to work. they are returning. in the financial district, anecdotally things have gotten a lot busier. a renaissance for wall street is starting. in manhattan we are making

further progress towards reopening. starting on wednesday capacity limits will be lifting. as long as they can keep six feet of social distancing, businesses can open at whatever capacity they can under those circumstances. that could help many businesses in new york city area. jonathan: kailey leinz, surveillance early addition anchor. down near battery park over the weekend, absolutely packed. we get back to business in many ways in new york city and elsewhere. in the equity market, we fade on discovery. off the highs. we were up 17% or 18%. 8% we are positive? we have faded in early trading. lisa: there is a lot of hope big into this trade. -- there's a lot of hope baked into this trade. what is actually baked in? $3 billion in synergies.

job cuts. you wonder how much is baked in in terms of the amount of money they save versus the anticipated market share they could gain. jonathan: the moveon at&t fading as well. let's bring in check now and, -- chetan ahyan. just to be out there, bold, optimistic about the future when many people were not. that call has played out. what is next? chetan: the next as we will see a big pickup in the cycle globally in the u.s. as well as the rest of the world. the numbers we are highlighting is the capex numbers globally would rise 21% compared to pre-covid levels. in the u.s. it would rise 16% compared to pre-covid levels. this is something we've not seen in the last five cycles. even in the 1990's, the last big

cycle, we are going to do better than the 1990's cycle as well. looking for strong pickup in capex. that will be the key driver for our global growth story. lisa: how much could this capital expenditure used gdp globally for the years after the rebound we are seeing currently? chetan: it will depend upon the infrastructure spending more than the we are expecting to see pickup. together with this structural shift in infrastructure spending that is going to come up as well as the pickup in capex, we think the global gdp could be boosted .2 on a structural basis. that is the assumption. the bigger story is this is going to be a strong 12 months or 18 months because of the pickup in capex.

lisa: how will shareholders respond? it seems like investors want to see bold moves. do you get the sense investors want capital expenditures and are much more willing to endure, less of pushing of cash? chetan: this will be extremely different environment compared to what we had seen in 2012 and 2015 when there was a global slowdown and there was sector -- secular stagnation. this means they pickup will meet you will be going through a stronger oath and higher inflation and higher pricing power. one has to think about it more from the perspective of the overall return profile in the economy you will see for the corporate sector. that is what will be looked at by investors. if you are investing for growth and you're going to get the top

line growth, i would think the investors should be rewarding those companies with the pickup in capex in a big way. jonathan: you said previously you think these price pressures will persist into next year. is that still your view and how is it reconcile with the capex cycle you are expecting? chetan: in some ways the big pickup in capex will put pressure on the inflation outlook. this pickup in investment will drive demand for labor. it is coming in much faster than the previous cycle. you're going to see tighter labor markets, a pickup in investment, and at the same time we are going through restructuring, which means the natural rate has moved higher. an additional, this cycle, we have seen a large amount of job losses in the low income segment. when the fed is looking at the headline unemployment, it will

overestimate the underlying slack and pursue an easier monetary policy for longer. they are all looking for inclusive goals and a high-pressure economy that will bring back the low income segment into the workforce. what that will mean is from a demand-side you overpressure with strong job growth and on the other you have restructuring aspects which will put wage pressures come it inflation will also come back much earlier. jonathan: just to jump in, there are a few assumptions. i want to pick up on one. night room. -- some question where it is. where are you in the team calling for that to kick in? chetan: we think around 5% is when you should see pressures building up. and all of the previous cycles we have seen wage growth picking

up. in this cycle, because of the restructuring happening in an accelerated manner and we are hitting the low level of unemployment much earlier in the cycle, we think it should be assumed to be 60 to 150 basis points higher depending on how bad is the job loss. call it around 5.5%, then you should see wage pressures picking up. then it is uncertain -- there's uncertainty around what is that part of the workforce which is really going to be taking time to come back and get retrained. it will depend on that range of time it is taking to get workers to work. jonathan: fascinating stuff. the team giving us things to think about. chetan ahya, morgan stanley chief global economist. coming up, i will catch up with richard bernstein.

we will do that later. from new york city, lisa is back. lisa: it is great to be back. jonathan: nice to hear you a text bullish. lisa: give you another 10 minutes. jonathan: i will see you tomorrow morning. tom keene will be back tomorrow as well. this is bloomberg. ritika: with the first word news, i'm ritika gupta. a blockbuster deal in the media business will create a rival netflix and disney. at&t has agreed to split up its media operations that deal with discovery. the deal will merge assets with cnn and hbo to hd tv and the food network. discovery ceo will run the new entity. the chances of president biden getting an infrastructure bill through congress with support

from both parties are rising. earlier today senate republicans are set to deliver a revised offer that it lose road, public transportation, and airports. still disagreement on how the legislation could be paid for would kill off any deal. in the u.k., the chancellor of the exchequer is not convinced by bidens plan for a minimum global tax rate. there is concern the rate could be too high over the long-term. instead the u.k. wants to focus on measures to make big multinational companies such as amazon pay more taxes in countries where they operate. the long anticipated air travel bubble between singapore and hong kong. the quarantine free travel arrangement was set to start last november but was delayed by rising coronavirus cases in hong kong. this time the postponement is blamed on rising cases in singapore. 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. ♪

>> the game changer is the vaccine but also us getting it groep -- getting a grip.

it is possible have a great time, to protect jobs, and make sure the virus does not spread. lisa: that was the london mayor talking about the reopening of the city. a cautious reopening. leaders around the world try not to step back their communities as they try to move forward and reignite their economies post-pandemic. as tom would say, this is a joy. heather boucher, bamberg of president biden -- a member of president biden's council of economic advisors after the president released announcement talking about a child tax credit as part of the american rescue plan that would start going out soon to families that qualify. 88% of children in the united states do fall under this provision. can you give us a sense of what this child tax credit is and why you think it is important? heather: thank you, lisa. it is exciting that the president has announced new child tax credit will be

directly deposited in most accounts for families with children starting july 15. that will be about $300 for children under the age of six, and $250 for families with children over the age of six. this has been an important part of the american rescue plan, to help families, especially help children which we know have these higher expenses than other families. help them make the ends meet. instead of payments coming once a year with the tax refund, they will be sent out every month starting in july. jonathan: this is part of -- lisa: this is part of the 380 $8 billion american rescue plant which is only funded so long. these will run out. how much of this is a template for what the biden administration is trying to accomplish later in the year as it moves towards some of its child and families agenda? heather: that is a great way of

thinking about it. we thought it was really important to do this this year coming out of this crisis when so many families have been struggling. this is a good policy in general. a lot of other countries provide child allowances and the child tax credit is a version of that. it will help families when it needs the help the most. any child can get the tax credit. it will be an important support for a family budget. this needs to be extended. it is included in the american families plan the president launched a couple of weeks ago. lisa: if this is used as a template, and jon ferro has been talking about this a lot, as far as what the cops are and how categories -- what the cutoffs are and how categories will be defined. for the american rescue plan it was $160,000 for couples filing jointly and $80,000 for an individual. is that the annual salary you

expect to be the basis of annual plans later this year from the biden administration? heather: all of this is still a work in progress. certainly that is a starting place. that is what we are already doing. these decisions will be negotiated, but it is important to keep in mind that all kinds of families need help when they have kids. we know families experience this extra burden. this is the port that will help them. one of the things that is exciting is scholars estimate it will have a significant reduction in child poverty, in particular child poverty for black and latino children. interesting to see how that works. it is an important policy for all of those families who need it. lisa: as someone who has raised two boys, i understand. you know what a jungle that is and how challenging. there is a question when you see the data rolling in.

what data will you be looking forward to view this as a success to help push whatever additional programs biden plans to outline? heather: in the years to come we will see this show up in the income statistics the census bureau collects and focus those numbers into 2022. hopefully we will pass the american families plan before then. we will be watching that data as it comes in to see what happens to child poverty in the united states. united states has higher child poverty than most other countries that are economic level. this is a step forward to helping those families make ends meet. jonathan: just broadening out -- lisa: just broadening out to the american rescue plan, there's a question of how well it is working and how much it might be hindering some of the recovery. i'm thinking about the unemployment benefits, the idea that the enhanced jobless benefits have kept people away

from the workforce because they are more staying at home then going back to work. how much are you considering ramifications like that? how much do you buy that argument? heather: the rescue plan put in place at the beginning of the year was designed to help us get through the pandemic. we are not out of the woods yet. six in 10 adults have received one vaccine shot. we know only about one quarter in their 20's and about one third of those in their 30's have received their vaccine. as we are giving everybody the shop and getting folks back into the labor force, those unemployment benefits are an important lifeline for those folks were not back to work. we need to make sure we provide people what they need while they're out of work, while they are searching for their job. we are still more than 8 million jobs below where we were pre-pandemic. jobs are starting to come back and we have a lot of progress. we have a long way to go. that is what unemployment benefits are for. to help people while they are

searching for work and help people during the pandemic. lisa: to wrap up, we got the retail sales report on friday that was disappointing. we pointed to the fact that some of the jobs cannot be filled, they cannot find the workers to full those roles. that is what is hampering some of the sales that otherwise would be taking place to encourage commerce. how much you weigh these factors as you do the health and the economic ramifications? heather: we do not want to make too much of any one data point. we know the recovery will be bumpy. we turned up the economy quickly in 2020 and we are turning it back on now. giving the time for everybody to get their shots and back into the labor force to address the supply chain constraints between are happening across the economy, this is what is happening right now. when we look at the trend and

the larger -- when you put all of the data together, what you see is an economy moving in the right direction. created over 500,000 jobs per month. that is more than the 60,000 jobs per month and the three months prior, and we are moving in the right direction. it seems like the policies are working helping families and businesses get up and running. now we need to get the vaccines out and make sure we are connecting those workers back to employers. lisa: heather boucher, thank you so much for being with us. heather boushey, council of economic advisors member for president biden. in the markets, no drama. you are seeing a deterioration in the nasdaq, down .5%. the s&p down .4%. the drama is in at&t and in discovery. discovery shares up more than 9% ahead of the open after agreeing

to acquire at&t's media assets. coming up today at 3:00, discovery ceo and at&t ceo joining to talk about the combination. this is bloomberg. ♪

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>> everything you need to get set for the start of u.s. trading. this is "bloomberg: the open" with jonathan ferro. ♪

jonathan: from new york city for our audience worldwide, good morning, good morning. the countdown to the opening bell starts right now. we decline .4% and we begin with the big issue. growth missing to the downside. price pressure surprising to the upside. >> we will see big volatility. >> volatility to the upside and the downside. >> consensus will be a long way from actuals. >> labor shortages, supply chain interruptions. >> pent up demand intersection with pent up saving with the reopening. the data will bounce around. >> demand is coming back now. >> the vaccination ended up being a lot faster. >> we should expect a