>> there's a lot of cash in the economy. there's a lot of cash on balance sheets. this cash will get deployed one way or another. >> people don't like inflation, this is true. but they will tolerate it. >> inflation is going to be eating into the wages of low income households. >> it gives the impression of over and done quickly. i don't think that is what we will see. >> this is "bloomberg surveillance" with tom keene, jonathan ferro, and lisa abramowicz. tom: good morning, everyone. on radio, on television, a

simulcast. tons to talk about. we will touch on the markets here. retail, huge earnings day-to-day. you've got all of the distractions of m&a. but i'm sorry, foreign exchange to the markets. jonathan: dollar weaker, euros stronger. the dollar index breaking through 92 and -- 90 to an -- 90 to an 89 handle. tom: part of the raging discussion we will have today on the euro at $1.22, does it go back to $1.19 or strengthen to dollar $.25 -- strengthen to $1.25. what does the real yield tell me now? jonathan: -92, 93 basis points. lisa has been on top of this.

in and around 1.60%, real yields have broken down again. they have rolled over. just the idea that the federal reserve is going nowhere for a long time. tom: lisa, what do you see, particularly after mr. kaplan's comments? lisa: he's really alone. the voting members are not joining his tune is all. i thought it was interesting what padhraic garvey said in the last hour. that the market is wrong, and real yields have to go higher, especially given the fact that the fed will talk about tapering, which raises the question, how does the fed gracefully extricate itself from markets? how did they do it without disrupting every thing? tom: they do it because they are differentiated and compelling. come on, the fed can't do this gracefully. jonathan: it is going to be very difficult to do it gracefully. the other thing they have tied themselves in knots over is it is an outcome based fed, but telling us they will warn us

ahead of time. i'm not sure how you reconcile those two things. tom: on home depot in the margins strength we have seen, steve brought it up on "surveillance" earlier, about pricing power. that seems to be a trend. jonathan: i think if margins are holding up in a world of rising prices, that means they are managing to pass that through to the end user, to the customer. good news for the retailers so far. tom: let me do the fx for you. $1.20 on euro-dollar. that is really the loan trade against weaker yen, a relatively weaker dollar as well. that blended index, 91 down to 90, now 89.7. jon, it is can permed -- it is confirmed on the pacific rim with stronger renminbi almost

out to recent records. jonathan: the european proxies, the eastern european countries doing nicely. poland, hungary just two of them this morning. yields in about a basis point on tends to one point 638% -- basis point on tens to 1.6381%. tom: lisa, what do you think? lisa: i think the dynamic here is compelling, especially with the shale producers being the marginal drillers that aren't necessarily going back as rapidly. you don't see them demonstrating the same willingness to expand. there is discipline. what does that mean in terms of supply possibly not returning to what used to be? tom: we welcome all of you on radio and television worldwide. at 9:00, the note of the morning on comcast and what the roberts family will do in philadelphia.

jon, why don't you bring in our equity guess this morning, who is compelling and differentiated? jonathan: he's chris harvey as wells fargo securities, the head of equity strategy. chris, i will try to keep this on the rails for you. [laughter] it gets harder as we keep going. chris: it does. we think we will have a pretty tight trading range, but we think rates are going to go higher. you mentioned real rates. we think real rates are close to negative one heard basis points. you have generational gdp, a lot of other things going on. essentially, they have to be forced higher. that is going to help the reflation trade. we will see a pretty big continuation of the rotation we have already seen. it hasn't ended, and it won't end for some time. jonathan: where are you on the s&p? chris: we are still lower. we have been conservative. you should see double-digit growth from financials, double-digit returns from financials and small caps, but

we are expecting single digit returns from larger caps. we have been too conservative in that regard. the large caps have held up much better than what is expected. lisa: what is the big concern here, inflation? or some plea that the returns have already been brought forward -- or simply that the returns have already been brought forward? chris: we thought it would be more impressive than it has been. the fundamentals for most companies have been pretty good, but the fundamentals for the elation trade has been even better, so everything has risen. the beta is higher than we expected. lisa: equity investors typically want more than single returns, especially given the past two years. where did they go? chris: we like the financial space. we like a lot of the industrials. what we want to do is be more selective. we are looking for very good risk-reward, and it gets a lot more stock specific. we are focusing more on companies that have good valuations, but can really grow earnings, and you can find

across-the-board. tom: this new seam of pricing power as well, how does wells fargo -- this new theme of pricing power as well, how does wells fargo select pricing power winners? chris: we lean on our fundamental analysts a lot for that. we go through transcripts and look at who is talking about pricing power. we are seeing pricing power in the chemical space, in the industrial space. really, what you mentioned before, something we have to say out loud is the consumer is a price taker at this point in time. they what what they want, and they are willing to pay. they are willing to pay up for the next level, whether it is a new car, a washer dryer, what have you. tom: this is a differentiated conversation about compelling pricing power. if that is the case, and no kidding aside, does that mean you get sustained ratios because you have compelling pricing power? chris: for now. we looked at margins. we look at pricing power.

what we are seeing with corporations is they are bringing to the bottom line the consumer, the end buyer is willing to pay up. they have the cash to do it. demand is outstripping supply. we think this continues for some time. as far as our expectation, what we would like to see is we would like to see the bond market, we would like to see rates lift a little bit and cool things off. if that does occur, the cycle can last a pretty long time. jonathan: there's lots of things we would like to see that would lead to a longer cycle. are you making that cycle call right now? is that the base case? chris: we do think that rates go higher. we think that real rates have to push up, especially when you look at generational gdp. if that does occur, things will go further. the other thing that has changed from the beginning of the year is we are talking more about europe. the eu had a difficult time to stripping the vaccinations, but now the vaccinations are getting out. what we have seen from israel,

the u.k., the u.s., is things do improve, spending improves, and that can extend the cycle as well. we are looking for companies that have more exposure to the european market. lisa: are you buying bitcoin? [laughter] chris: i stay away from crypto. if you speculate and you are over 40, you speculate in gold. if you are under 40, you speculate in crypto. jonathan: do you think increasingly in years to come, we will be conditioned in this market with the average investor as the average age starts to move towards the new generation? i just wonder whether that is going to be the story, where we are conditioned by what we have seen in the last year. jonathan: i definitely think so. we have just done this anecdotally. i've looked in my two associates. one is under 40, 1 is over 40. when you talk to people and you put this out there, you do see

that the younger generation is involved in tow. they do believe in it, and it is their instrument of speculation. when you talk to people that are older, gold is the instrument of speculation. we have seen this time and time again. but don't take my word for it. when people come on the show, i that we are about right. [laughter] jonathan: we will leave it there. chris harvey of wells fargo. tom: he's dropping in promos. bring it up. [laughter] jonathan: where did that promo come from? tom: for those of you on radio worldwide, "the bloomberg real yield," christopher harvey joining jon friday at 1:00 p.m.. jonathan: thank you, tom. i'm not responsible for that graphic. lisa: who did you bribe? jonathan: i'm happy we are on the same page here, that we are always thinking about fridays at

1:00. tom: you guys are irresponsible today. jonathan: can i think chris -- can i thank chris? chris, thank you. [laughter] tom: joe feldman, it really important since in his note on the optimism on home depot. he says they seem well-stocked into 2021. this is like a serious issue. jonathan:jonathan: this is the issue around lumber. lisa: and all other commodities. jonathan: and margins holding up as well, and the margins look better. it has been impressive for a range of retailers, from macy's to omar to home depot. -- macy's to walmart to home depot. lisa: people have money to spend. will they keep spending it on stuff as experiences start to open up again? they have to some degree, but not completely. jonathan: we have vents about 0.25%. have i ever told you about a program at 1:00 p.m. eastern on

friday? tom: -0.94% on the real yield. [laughter] jonathan: someone is working a full day on fridays going into the weekend. 30 minutes dedicated to fixed income, with private investors around the world on the dominant asset class. lisa: look at you. jonathan: thank you. this is bloomberg. ♪ ritika: with the first word news, i'm ritika gupta. the ceo of walmart says americans want to get out and shop. the world's largest retailer was just one of the u.s. chains to report strong quarterly results today. walmart also boosted its profit outlook. so did macy's. the department store chain also posted first quarter sales that were better than expected, and home depot results indicated that the home-improvement trend has room to run. same-store sales in the u.s. rose almost 30%. republican senators plan today to deliver their counter offer

to president biden's infrastructure plan. the president has called for spending a little more than 2.2 trillion dollars. senator lindsey graham the gop proposal could be as high as 900 billion dollars. republicans are opposed to using tax hikes to pay for the spending. the biden adminstration has now shifted its approach to the violence in gaza. president biden told prime minister benjamin netanyahu he would support a cease-fire. the president had publicly called for calm, but not an end to the conflict. militants have fired rockets into israel, while israel has pummeled gaza with air raids and artillery. investor michael valerie -- michael faury made millions betting against the housing market, immortalized in the movie "the big short." now he's betting against tesla.

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. ♪

>> i see the dynamics of why you would want to get bigger in this space. media assets have done well

relative to trend because of the covid lockdown. they may be the new energy companies, pouring millions of dollars into the ground. they are talking about investment over there at at&t time warner. there's a lot of money going into content, and there's an awful lot of content out there. jonathan: stephen auth there of federated arm as -- federated hermes. from new york city this morning, good morning. alongside tom keene and lisa abramowicz, i'm jonathan ferro. counting you down to the opening bell in about an hour, your equity market up to 4166, up by eight or nine point. we advanced 0.2%. yields committee basis point to 1.6369 percent. the dollar erasing the gains of the year, now negative. euro-dollar, $1.2220, up 0.5%.

tom: the dxy under 90, and the vix comes in even stronger, from 20 down to a more bullish 19.64. this is a joy to be with paul sweeney. at 9:00, we will be on radio worldwide, anticipated after the last 24 hours because he's expert on this insanity of our media business. paul's career goes back a zillion years. it is he that built bloomberg intelligence. thrilled to have you with us today. let me cut to the chase now. how does the roberts family respond to this, and the iger-less disney respond to this? how does nbc buy cbs? paul: i don't know. maybe they spin out the nbc universal business and merge

that into viacomcbs, similar to what we saw with at&t and discovery. that would create something more competitive. tom: it sounds like a rounding error to me to get this done. why can't the roberts family go after warner, which is what they really wanted to do all along? paul: one could argue this is the last round of consolidation for these really big media companies. after this, you get to some subscale media companies. if comcast wants to really doubled down on content, they have to go either after warner brothers, or maybe spin out nbc universal and merge that with viacomcbs. lisa: what is the big risk here? we are seeing a record pace of merger tieups on the heels of a very unusual year, a very unusual amount of appetite for streaming services. what is the risk that we may be

overvaluing some of the content? paul: i think the risk really is in execution. there's, to be a global streaming company, that is a new business. netflix created the global streaming media company. it never really existed before. netflix is taking its content all over the world. that has to be the model because these companies are spending $20 billion a year and growing on content. that is an investment they make on a yearly basis. in order to generate a return on that business, you have to be successful from a subscriber perspective on a global scale. netflix has done it. the market is betting that the walt disney company can do it. the question is now, can david zaslav, with these new assets, also be successful in a global scale? i believe he can be? discovery is, prior to this round of consolidation, the most global media company out there. they have been in the international markets for a long time, competing very successfully.

the question is, what happens to comcast? what happens to viacomcbs, as well as these smaller companies? lisa: and what happens to the consumer paying for each individual streaming service here? jon has talked a lot about this, at what point people start to cut some of their subscriptions. at what point also are we talking about bundling, some sort of package deal akin to back to the future cable? paul: that's kind of the key issue that we really don't know. how many streaming services do people really want to pay for? is it three, 4, 5? the reality is it is not going to be more than that, most likely. if you are not one of the top three, maybe four, that is going to be a struggle. tom: i've got to go to my colleague jon ferro. you know i am riveted on "ninety-day fiance" by brandon and julia. i find them to be the most interesting couple on "ninety-day fiance." jonathan: which couple are they? tom: they are really trying to

stay together, unlike the rest of those. jonathan: which one went to ecuador? was that program -- was that that program? tom: that wasn't brandon and julia. can you see "ninety-day fiance" dovetailed with hbo max, "game of thrones" stuff? jonathan: you and i both watch a bit of trash now and then. what i struggle with right now, i don't think the consumer is winning. we have been told the consumer is winning because tv has never been so good, content production is fantastic. but when you look at your bill, it must be close to $200 for people now. you're looking at $60, $70 conservatively for an ok broadband connection. on top of that, if you want live tv, $50, $60. i know you canceled youtube tv.

you're getting close to $200 for a lot of people. that's a lot of money. when you wake up at the end of the month and you are starting to think about doing different things because you are allowed outside, i don't know if you want to spend that kind of money on a tv service, do you? paul: that is a great point. what we found over the past 14 months and this pandemic is what was likely to be two or three years of a sampling among consumers of all of the various streaming services that are out there, and seemingly every media company today does have a streaming service, that sampling timeframe is consolidated into 12 to 18 months here, and we are starting to see some shake out. think back to maybe that cable bundle that we had for the last 20 or 30 years that wasn't so bad. i paid maybe $120 a month and got 500 channels plus broadband. that is why i think a lot of folks believe there's going to be a shakeout of these streaming services, and in fact, you are not going to be paying for 6, 7, 8 of these things.

it is going to winnow down to the two or three, maybe four leaders, and that is about it. who is going to be left standing? jonathan: paul sweeney of bloomberg will be on bloomberg radio with tom keene in about 35 minutes. you know what? i am totally with paul on this. i really am. i don't think people can afford to keep that up. that is too much money, way too much money. tom: axios had it at $40 a month . it is four services, $40 a month for combined. jonathan: then you throw broadband into the top of it, and the numbers add up really quickly. lisa: and people can actually go out into the world. my nine-year-old said to me, i'm sick of screens. it is sort of this epiphany. the pandemic has made kids not want to be on devices anymore. at least some of them. jonathan: for now, at least. it would be nice to see kids playing football again and off of the videogame. tom: we got paul sweeney without

any mckenzie speak. jonathan: mark mccormick joining us shortly on "bloomberg surveillance." euro-dollar the wicked ash your -- your dollar the weakest we have seen this year. at least for now. this is bloomberg. ♪

(woman) i don't want to look like this anymore. (man) what is happening to my body? (woman) why can't i lose weight? (announcer) you may be suffering from insulin resistance. measure your waist. females measuring more than 35 inches and males measuring more than 40 inches may have insulin resistance. to learn how to reverse insulin resistance and lose weight effectively, go online to golo.com. once again, that's golo.com.

jonathan: from new york city, for our audience worldwide, good morning. alongside tom keene and lisa abramowicz i am jonathan ferro. economic data in america. here is michael mckee. michael: we are looking for housing starts this morning. mortgage rates very low because of the fed. seeing rebound in construction activity as the weather gets warmer. it takes longer to get data because they no longer do the lockups. we will sue as soon as the congress department drops the housing starts numbers. -- we will see as soon congress department drops the housing starts numbers. march was a big rebound from february when the weather was terrible.

so far no numbers out. tom: what is the price dynamics right now? michael: the price of? tom: we get price data out with these statistics as well. the prices at the moment. i saw in california the average house is 800,000. michael: it makes a difference. costs are rising for builders. 1,760,000 -- i'm sorry, that is building permits. housing starts 1,569,000 is significantly lower than the number in march, which was 1,739,000. a 9.5% decline on the month. the number of building permits, 1,750,000. that is better on the number we saw in march, 1,759,000.

looks like builders had to cut back a little bit. jonathan: what you think it is? raw materials? labor cost? michael: all of that. we have seen labor shortage in the construction industry. a lot of people went into construction and they cannot keep up with that. i do not think costs are as big of a problem, but land has been hard to get a hold of. it is been a bit of an issue. lisa: there is also been a concern that demand is so far outstripping supply that builders cannot build quickly enough. is there any concern about overbuilding? about the froth of this market that could end up leading to problematic consequences? michael: not at this point. the number of new homes under construction is not meeting demand. that is the problem they have in the housing market and is also

pushing up some prices. especially in some areas where affordable housing is hard to get, san francisco being a model of that. until we see the number of people looking for homes declined. we saw the homebuilder survey yesterday say that is not an issue, we are seeing a lot of traffic, they will have to keep building. we will see what happens with family formation and the fact that people that move in with their parents during the crisis now want to get their own place. tom: they better. thank you so much. i cannot dance and trait now. jonathan: i hope your children are not watching. lisa: who you want to move out? tom: all of them. on foreign exchange, we have anticipated this. he has been more brilliant than anyone i know on saying weak dollar. mark mccormick is with td securities.

the dollar finally breaks down. is it enough of a break for you to switch to a weak dollar? mark: we still like the medium-term dollar down story. there is an interesting element where the global economy is doing pretty good. we see absolute growth levels favoring the u.s.. the growth is moving in a weaker dollar direction. the fed is allowing the weakness in the dollar, because what they're trying to do is run the economy hot and let inflation run higher. they are experimenting with an mmt type narrative. the dollar is still overvalued and we are seeing the global story is moving in the right direction. those are ingredients for medium-term dollar lower. the interesting action is on the three-month and quarterly basis, which is giving us interesting pivot point to make tactical decisions whether or not you want overweight or underweight currency against the dollar. jonathan: trying to resolve a

tug-of-war between global reflation and global synchronized recovery and u.s. exceptionalism. between that tug-of-war, what you think wins out? mark: right now we have to downgrade global inflation. it is not about u.s. exceptionalism. what we had was strong inflation numbers. what we have learned is people are completely mixed, it is one of the other. either the fed is making a huge mistake where they will have to work to make things better, or they fall on our side which is they will not taper any time soon and they will not hike rates until 2024. there is definitely a debate that is very lively that the fed could taper or start talking about tapering in june, july, or even at jackson hole in august. in that environment we are seeing reflation starting to move lower based on the mobility we track. volatility should be higher.

inflation breakeven should be lower. real rate should be higher. that backdrop is more positive for the dollar, at least on a tactical basis versus the medium-term outlook we outlined. jonathan: euro-dollar 1.2349. where are you looking to push this through and when? what are you looking for an euro-dollar? mark: i think these are good faith levels. if we were to take our year ahead forecast, we were in the 1.22 camp. towards the end of the year i think we will see a stronger dollar towards the euro. this will come down to factors not related or a big

economic growth, and the equity story. the upside for the euro is people are not expecting -- if european equity start to outperform like they have been, that is where i think people could be surprised by the euro. based on the growth, the value, and the relative central-bank policy, the euro still sells at 1.22 and you buy it back around 1.18. what could be -- lisa: what could be the trigger for money into european equities? mark: i think it comes down to

the growth in the vaccine catch up story. the problem is there's not enough on the other site to say there's a bunch of factors to buy the euro. it is a vaccine story, the growth is important. we do not see the carry argument, we do not see the yield curve steepness. commodities is not a big driver of the euro and that is why you want to look elsewhere like the norwegian krone. i think with the euro, what you need to see is it is already in the price. most of our models say the euro is overdone. that is why we are a little wary of chasing it because you do not have a value story along with the stellar growth story. you have a pickup story that is well known by the market. for the equity story to work out, we need to see what happens with the german elections later this year. if we get a pipit to a green led movement, centerleft, i think mmt narrative is much better because it brings capital back into europe. that would be beneficial for the euro. the mnp -- the mmt narrative is not as great for the u.s.. lisa: to parse through some of this and dig into a lot of what you are saying, going back to the question of is fiscal spending good or bad for currency, you are saying fiscal spending in europe could be good , whereas in the u.s. it could be bad for the dollar because of

the taxation that is likely to accompany it. am i getting that correct? mark: absolutely. one of the things most heavily missed, especially in the last five years, the relative equity story is absently critical. if you think about why the dollar was able to rally during the trump years, a lot has to do with u.s. equities outperform the rest of the world and the u.s. yield curve was steepening while the rest of the world was flattening. for the dollar to make up what is a weak dollar policy from the fed, it will need equity flow. a broad balance of payments, you will have between deficit which does need an opposite. between deficit during the trump years is offset by the growth story. if european policymakers deliver more policy growth shocks, especially with the german election leading to more fiscal stimulus, that gives people

reason to bring capital back into europe. that is where i think it is critical. if the u.s. were to tax equity markets and tax the wealth and innovation from the equity market, that is a negative for the dollar in the context of where the fed is going in the global economy. that is why we like it lower over the medium-term. jonathan: always smart. mark mccormick of td securities. the euro-dollar with a 1.22 handle. plenty of reaction on retail sales. walmart, home depot, macy's, all raising their outlook. guggenheim saint not only was rose margin relatively stable -- guggenheim saying not only was growth margin relatively stable, but -- so casing -- showcasing solid expense control. one of the takes on a better home depot. tom: citigroup with the 317

price target come up 17%. he reaffirms the very optimistic view. the dynamics now are absolutely fascinating, project lay in the real yield. -0.94%. i do not think a lot of people expecting that. jonathan: what did you make of pushing back against the move and the euro-dollar from mark mccormick? tom: everyone has an opinion. i am looking at stronger euro-dollar over the last three hours. this has to do with relative rate versus flows. mark mccormick always goes back to equity flows. jonathan: the politics on top of that. germany may be turning green. that could be a huge political shift. lisa: we were talking about whether fiscal stimulus was good or bad for currencies and people were all over the map. the fact that mark mccormick was saying a green policy and germany could be beneficial for the euro, whereas for the u.s. not so much.

i find that fascinating. jonathan: will continue this conversation on bloomberg tv. lisa will be watching secretary yellen. lisa: i watch you. jonathan: alongside tom keene and lisa abramowicz, i'm jonathan ferro. good to have you all back together in the same room, almost. a window separating us. certainly differentiated. from new york, this is bloomberg. ritika: with the first word news, i'm ritika gupta. the u.s. is now adding pressure to both sides to end the conflict in gaza. president biden has shifted his approach. he told benjamin netanyahu he would support a cease-fire between israel and hamas. the president has not publicly back to an end of the fighting days. at least 222 people have been killed, most of them in gaza.

hamas has fired rockets come israel has inspired air rates and artillery. the senate has voted to move ahead with the bill aimed at cutting china's rise in technology. it would jumpstart research and development with a cash infusion of more than $100 billion. the bill could be passed by the end of the month. the son of rudy giuliani is running for governor of new york. he tells the new york post he is confident he can win next year's republican priority and defeat andrew cuomo. rudy giuliani was the mayor of new york and served as former president trump's lawyer. andrew giuliani has never held public office. fidelity is looking to attract the next generation of investors. the firm is unveiling an account aimed at 13 to 17-year-old that will allow them to save and spend their money. teenagers will make their own trades.

still, you will have to have a parent or guardian also invest. 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 ritika gupta -- and more than 120 countries. i am ritika gupta. this is bloomberg. ♪

tom: good morning. "bloomberg surveillance."

lisa abramowicz and tom keene. paul sweeney and i will have moffat nathanson on bloomberg radio. right now an exceptionally important conversation. one of the candidates for the primary in new york city, eric adams joins us with a remarkable biography. you are lining up the endorsements. you are on a -- to do -- to june 22. what is the support you most covet right now? eric: every day people. the blue-collar workers, not only those employees who are doing the construction and other jobs, but even my accountants, my doctors. blue-collar's hard-working people in the city of new york. they have endorsed my campaign because they know i protected

the city and 22 years. public safety safety is a prerequisite to prosperity. tom: it is the way he got to the 22 year career. we will not go into it because of time. you had an original path to serving with the nypd. tell us how the nypd can change with mayor adams? eric: it is about rebuilding trust. i will state this over and over again. many of my collects running for office do not want to talk about this. we have to change the ecosystem of public safety, defined the role of the police, but most importantly we need each other. the streets of our country in general, specifically in new york, those streets will be controlled by the good guys or the bad guys. i will be darned if i will let the bad guys take us back to the days where we were having 2000 homicides a year.

i will rebuild trust with law enforcement and communities in the city. lisa: this is an incredibly important message at a time shootings were up 160% -- 166% in april in new york city. how do you accomplish safer streets and keeping violent crimes from getting out of control? what is your recommendation? do you recommend plainclothes police officers in subways? what measures are needed? eric: there are a number of things we must deal with. dealing with the crime problem is both prevention and intervention. prevention is long-term things we do. intervention is right now. we had a three-year-old shot at times square. we had a number of homicides in the last few days. it is about reinstituting an anti-gun unit that is better trained, officers using their cameras properly, and install

precision policing. we must go after the gangs and the over proration of guns in our city -- and the over proliferation of guns in our city. if we do not will not have -- lisa: this is what a lot of people are saying. if you do not have safe streets you cannot get businesses to stay in the city. what other measures will you take to keep them here, especially given the fact the bills for all of these services and all of these measures are wrapping up. there is a deficit we need to address. eric: it is also a great opportunity. thanks to arsenic and congressional delegation we are going to have over $10 billion in stimulus coming to our city. the real question is are we going to squander this opportunity. we have to end the inequality we are seeing in the city. it is because all of our cities in america are dysfunctional.

cities are made up of agencies. if those agencies are not online you will not get the results we are looking for. we must attract businesses, cybersecurity, technology, self driving cars. it is too business to do business -- it is too difficult to do business in the city. i will turn that around. tom: i am upset about your endorsement from dots did. -- from doc gooden. how are you going to bring together new york? everyone is polarized. how you bring new york together? the fancy people. the less fancy people. how do you do that? eric: we are going to send out the right message. 65,000 new yorkers are paying

51% of our income tax because they are only 2% of our income tax filers. i do not join the chorus that says so what if they leave. we need them here. tom: what is your policy going to be to keep the upper 1% happy in a new york city so they do not move down to watch the florida marlins? eric: let me tell you right here. we do not feel safe, we do not believe we can walk our streets in our communities. we cannot use our transit system in a safeway. all new yorkers, no matter if you are a cabdriver or person in the back of a limousine, you want a safe city. that is something i know all too well, what an unsafe city can do to the economic environment and the stability of the city. i will make the city a safe place to raise healthy children and families. lisa: before we let you go, this is a delicate issue. the new york times had a story i

want to give you a chance to address when they were talking about contributions you have taken from businesses that the city has influence on. you called money the enemy of politics before. you have a response to the story? eric: it is not a delicate issue for me. no issue is delicate because i'm extremely transparent. i'm one of the few elected officials in the country that has a procurement or compliance officer on board with me. this story has been vetted so many times. i was surprised to see it in the new york times on the first page to give the appearance any improprieties took place. we are in clear compliance with all the roles and i was disappointed by that headline that gave the appearance of any wrongdoing. we have not received any type of

infractions based on how we handle our procedures of our law . i'm not impacted by money in politics. i am impacted by what is needed for every day new yorkers. tom: eric adams, thank you so much. a mayoral candidate. june 22 primary here in new york city. the news flow is truly extraordinary. lisa: underpinning it is a high degree of uncertainty that this time is different but nobody wants to say that. this time is different with inflation, with corporate profits come as to where we are in the cycle. this is one of the key issues into the second half of the year. as you said we are already at midyear. tom: that is what andrew sheets said at morgan stanley. we have joseph cohen coming up, moffat nathanson schedule on bloomberg radio. yup a panel? -- you have a panel? lisa: we will be talking about

inflation and the federal reserve. tom: very good. we continue forward. an eventful morning. this is bloomberg. good morning. ♪

(announcer) the core is key to losing weight,

getting back in shape, and feeling good. introducing the aero trainer, designed to strengthen your core, flatten your stomach, and relieve stress and back pain. it conforms to your body and increases muscle activity. abs, back, obliques, hips, and glutes. get incredible results in just five to ten minutes a day. the aero trainer supports over 500 pounds, and inflates and deflates in seconds. check it out at aerotrainer.com. that's a-e-r-o trainer.com.

>> 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 begin with the big issue. where are we in a steroid fueled cycle? >> you are looking at post-pandemic era. >> moving through this recovery. >> we have been on the long bull market. >> we are still positive. >> still in the bull market. >> still in an early stage of recovery. >> early stages of the cycle. >> rotation to quality, rotation to value. >> midcycle at this point. >> the early cycle esop layout for last 12 months.