slowing to something more historically normal? >> people do not like inflation, true, but they will tolerate it. >> the fundamentals for the re-inflation trade have been even better so everything has risen. >> i think the risk is rising pretty high. >> gives me the impression of, i have gone up very quickly. i don't think that's what we will see. >> this is "bloomberg surveillance." with tom keene, jonathan ferro and lisa abramowicz. jonathan: good morning, good morning. this is "bloomberg surveillance." alongside tom keene and lisa abramowicz, i am jon ferro. our attention this morning very much on europe with a 10 year in germany inching back towards zero and an italian 10 year climbing to a tent -- for a tenth straight date. tom: the yield space is tangible

and you see it within germany. i did this 14, 15 months ago and got yelled at. they did not want me to have a mask on tv so i am going to put the mask on right now. everyone in new york city is dealing with, when do you take this thing off? i put it on. jonathan: just to demonstrate. super helpful. tom: i just put the mask on at radio. look at the headline, european union finds agreement for fully vaccinated travelers. that's linked directly to the markets. jonathan: that's according to afp this morning. we still have to work out what the vaccination certification looks like to get into europe, and whether the united states will reciprocate. because for the big airlines are now, what they want to see reopen and big-time reopen is the london to new york corridor. that has ceased up in a major way. tom: the points guy talking

about jetblue being aggressive about one flight, and in the second flight as well. it links writing, i'm sorry, madame lagarde with ecb is actually watching vaccination and mask policy. jonathan: do you think we are thinking about the wrong central bank when we consider the source of a taper tantrum later this year? tom: we will have to see. it's going to be a surprise along the way. a terrific chart this morning showing the federal reserve system is really an unbalanced if you versus the other sense -- unbalanced view versus other central banks. the guy from deutsche bank states, no one will want to buy u.s. bonds. we are getting into balance sheet dynamics off of the rates story. jonathan: you have been talking about this for a while, either yields need to climb are the dollar needs to move the other way. lisa: this is something people have been looking at and wondering what's going to

happen. the reopening trade in europe seems to be going strong. if you take a look at high-frequency data, it is already bleeding into second-quarter data. it is not necessarily even waiting for europe to find some sort of agreement on travel. will it be enough? does the u.s. exceptionalism story withstand or do people start to care about this record trade deficit that only seems to deepen as we get chip shortages and delays in shipping times? jonathan: george sarah vallow's at deutsche bank looking for 1.25 at some point over the next year. lisa: mark mccormack x-ray was saying he could see this eventually becoming -- yesterday was saying he could see this eventually becoming where you see an ongoing story of weakening in the dollar. timing has always been such a tough issue. jonathan: dollar strength of the story this morning. good morning. let's get you some price action this wednesday. equity futures down 0.9%. i always think, have i got that

right? bond markets, 1.6540. talked about the dollar strength this morning, replacing the dollar weakness yesterday. crude, $64.15, down about 2% on wti. lisa: you talked about how perhaps we are focusing on the wrong central bank. today, the ecb came out with a financial stability report. they were concerned about what the potential threats are to the market, a market they have caused dramatically to inflate. how worried are they about financial stability? the fed's randy quarles will be testifying in front of the house at 10:00 a.m. who knows what he will exactly say. i want to hear what he has to say about financial stability, this idea of, at what point will the fed taper or withdraw some of their stimulus simply to foretell or pretend to try to

contract the market a little bit from frothy conditions? also today, antony blinken will be meeting with russia's sergei lavrov, the first meeting between the two i had of a summit between biden and putin next month. at 2:00 a.m., the fed meeting minutes. very interesting to see if they start to indicate tapering, what that could potentially due to markets -- do to markets. jonathan: we have heard from pretty much everyone over the last six weeks. i don't think anyone has indicated, with the exception of mr. robert kaplan, that now is the time to taper. it would be a big surprise to see anything like than the minutes. tom: i would suggest things are really fluid here middle of my. again -- may. again, i am going to link and this morning some of the pandemic news with the financial

news we are confronting. every story seems to be linked to this recovery, as cases come down and deaths really get to low levels. jonathan: joining us now is run temple, lazard asset management, head of -- co-head of multi-asset. may be a global synchronize recovery through q3, q4 going forward into 2022 and u.s. exceptionalism, do you think it's more nuanced and the net? >> i don't believe in the idea of exceptionalism. let's admit where they u.s. is likely to exceed the growth rate of other regions is we have a massive amount of fiscal stimulus on top of a recovery trade. i think they u.s. will continue to outpace the growth out of europe and japan. let's make no mistake, there is nothing supernatural about the u.s. economy. we have just given it a lot of extra adrenaline to run on with the fiscal stimulus.

we need to wait and see what happens with biden's infrastructure, but we could give this recovery extra legs if we do the right thing. tom: what is new in your equity allocation? people beginning to recalibrate. what is new at lazard? ronald: when you look at the indices and see the s&p three percentage points below the all-time high, what you can miss is what's going on underneath the surface. look at the time from the beginning of 2019 through august 31 of 2020. what we saw was a really strange dynamic where the top 10 companies in the s&p were 60% of the increase in the value of the index. the median stock was up 23%. since september 1, a lot of people talk about value growth rotation, i think what's more interesting is the broadening of the market. the top 10 companies in the s&p 500's of some type or first of 2020 have been about 25% of the

equity market appreciation. if we look at the median stock, it is outpacing the s&p 500 by 1100 basis points. we have seen a much broader market. we have seen a much higher number of stocks that can deliver revenue and earnings growth. i think there is still quite a few opportunities out there. i think it's a really important time for people to step away from looking at the index and recognize there are a lot of opportunities underneath that number. lisa: underneath these comments is the question of big tech. can the s&p 500 continue to climb to new highs if you don't have participation from big tech, which has not necessarily kept pace with some of the broadening you're talking about? candy index reached new highs without tech outperforming or due expect them to regain dominance? ronald: i think the market can perform with the big tech. i don't think big tech has to be the entire market, which was the case for a couple years. i think there are parts of the

tech market that were extremely overvalued and those share prices were driven by cash flows expected in 5-10 years. some of the most notable big tech names, they are delivering cash flow right now and growing a pretty strongly. i look at those stocks and do not see them as necessarily being overvalued in specific instances. i think this is a much healthier market driven by a much healthier economy. what i love is a conversation you just had about central banks. i think for the next year or two, central banks are important but for the first time in years, they are not the only story. i think this is more about the fundamentals of the economy, reopening and what we see in terms of the pandemic hopefully subsiding into history. jonathan: i think many people agree with you. ron temple there, lazard asset management co-head of asset management. max kettner was talking to the team earlier. the macro and fundamental outlook may have seen its pick,

so take the risk off the table. i wonder if that's worth exploring more. have we got a bubble in inflation talk? have we seen the peak of that yet and what does it mean for cyclical trade in the monster come? what if the fed is right -- in the months to come? what if the fed is right? tom: people like hsbc and steve major look for a lower rate regime. may be in rich mother's story this morning from bloomberg, the distinction between lauren summers and alvin blinder, they are not the same page. i would go the range breakout, which you have identified as 1.74%. we are nowhere near that. jonathan: lumber futures have been hammered. tom: what is a brave guy looking at lumber futures for? jonathan: traded lower, home depot. macy's up more than 70% going into earnings. what did the stock do, traded a little bit softer.

lisa: if i make, los came out with earnings -- if i may, low'' s came out with earnings. tom: of the three of us, you are the only one that's been in. lisa: look at lowe's, high expectations after the home depot results. they just came up smashing expectations. if you look at earnings-per-share, more than double what they were last year are perhaps almost a double where they were last year. the shares lower by 2.5% in premarket trading. this goes exactly to your point. increasing revenues dramatically and still getting penalized market performance. jonathan: the team on bloomberg picked up on this in the call with home depot. the questions around stimulus checks and how much that has helped earnings and whether that dynamic will persist, because

clearly it won't. just a very quiet on the matter, what the rest of the year looks like. lisa: this is a unique moment. tom: the pendulum of visibility. jonathan: i am jonathan ferro. [crosstalk] you don't need permission to come in ever. lisa: i am trying to be polite. forget it. it's out the window. jonathan: yields higher by two basis points on a 10 year. tom: how did we survive that block? jonathan: this is bloomberg. ♪ >> i am risk a group to. israeli -- i am ritika gupta. israeli airstrikes battered the gaza strip and palestinian militants fired rockets into israel again. all this happen while there was talks of a possible cease fire. israeli news media reported that israel proposed a truce and hamas has agreed to comply. new york's attorney general says

her investigation of the trump organization has now morphed into a criminal probe. letitia james had been focused on the assessment of a trump property in what chester, new york. former president donald trump's company was already under criminal investigation by the manhattan district attorney. ubs has started a broad round of job cuts across its largest divisions. it is part of a restructuring plan designed to save the swiss bank a billion dollars over the next three years. the reductions are taking place in the investment bank, wealth management unit and swiss business. over the next three years, as many as 700 jobs will be eliminated in switzerland on. and bitcoin has father below 50,000 -- $40,000 for the first time since february. that was when tesla announced it was buying the digital point and would accept as payment for its vehicles. tesla ceo elon musk surprised crypto advocates last week with an announcement that the company will no longer let buyers pay for their cars with bitcoin.

he doubled down on his criticisms over the weekend. 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. ♪

♪ >> hamas is lobbing rockets into israel to kill civilians.

there is no moral equivalency here. i think we need to stand by our israeli friends. imagine what our reaction would be if somebody was firing these missiles into washington? i think we would be hitting back, but we would be hitting back with precision. jonathan: that was mitch mcconnell on the situation in the middle east. from new york city this morn, good morning. alongside tankan, lisa abramowicz -- tom keene, lisa abramowicz, i am jon ferro. s&p 500 down by 9/10 of 1%. a bit of a pullback. yields are higher by a couple of basis points. the fx market. dollar weakness yesterday, dollar strength today. crude falling in sympathy may be with what's happening in the fx market. $64.15 on wti. tom: commodities a little off the ebb as well.

i would note the vix at 22 .08 is not the angst. jonathan: going to do a bit of bitcoin? it dances around south of $40,000. tom: i did not trumpet it going up and i am not going to say yeah, yeah going down. lisa: china came out and said bitcoin crypto assets were not allowed to be used for transactions. this highlights how have you -- how you have not seen lawmakers sign off on crypto assets. and then you got elon musk. jonathan: the elon musk thing i think totally undermines the asset class, the idea that this single individual can spark a bit of a rout. tom: under $40,000. we will continue to watch it.

right now in washington, emily wilkins joins us. there's a collective memory of the camp david accords of 1978 of president carter. what that u.s. loves to do is create these moments, these events where we step in and create calm. is there any chance this washington of 2021 can create a camp david accord? emily: president biden was hoping to sort of avoid the big conflict we are seeing in the middle east. he was hoping to shift his attention to china but that is becoming more and more evident with each passing day that that is not going to happen. president biden needs to continue to engage in the least. he is having divisions within -- in the middle east. he is having divisions within his own party. you see more progressive democrats making louder calls for president biden to stand up not just for the israelis, but for the pakistanis and pakistani rights. even among longtime supporters

of israel within the democratic, you are starting to see them more carefully worded statements. if they are not exactly in lockstep with what israel would help them to think, they have been supportive of the cease fire measures and talking about the importance of really started protecting lives on both sides. jonathan: the president's first big overseas trip takes place next month. we have talked about this recently. i wonder how the emphasis shifts going into that now. emily: i think president biden still has this goal of strengthening the u.s. relationship with its allies, particularly in europe. and then, there is the question of its ally in israel. depending on what goes forward with the conflict that we are seeing right now, this could easily become a talking point that needs to be brought up during president biden's trip. we heard secretary of bringing the israel-palestinian conflict up on a recent trip to europe.

i think it's just a matter of exactly how this plays out on what the u.s. feels it needs to do as far as getting involved and supporting cease fire measure. lisa: as president biden's focus increasingly seems to turn overseas, i wonder the state of play in the u.s. with infrastructure spending and frankly even this 52 billion dollar proposal in the senate to add to the chip industry in the united states as companies deal with an unprecedented chip shortage. give us a sense of how quickly these bills can move through congress and get money into areas that perhaps need it? emily: and regards to the chip shortage, the senate is almost in the process of being able to pass an actual bill that addresses the chip shortage, as well as from elements with china. we are expecting a bill on the floor i believe this week on next week. this is something that is moving quickly. it has bipartisan support. on the transportation piece, you

saw a number of republican senators meet yesterday with several white house officials, including transportation secretary pete buttigieg. they came out of the meeting saying, you know what? we made progress, had a good conversation, but they still did not tell anyone how much they plan to spend in the bill and how it's paid for. those are the big sticking points. there are a lot of questions around the infrastructure built. are democrats going to go at it alone? that's a question we don't have answers yet. both the white house and senators say they expect to have more meetings later this week. tom: emily wilkins, it is wednesday. is joe manchin having a good? emily: -- good week? emily: i think he must be having a pretty great week. you have seen his colleagues and you have seen the white house go ahead and move forward in these bipartisan negotiations, which is what he wanted all along. what senator manchin did not say is this has to be part partisan

-- be bipartisan. he said there needs to be an effort to get to a bipartisan compromise and he's basically getting what he wants. even if democrats wind up saying we are going to go at this alone, mansion can say you had all those meetings, you want to the white house, there was an olive leaf extended. jonathan: emily, thank you. emily wilkins down ndc the bank ceos heading down to washington next week. it was interesting to see bank of america boosted their minimum wage to $25. that's the goal over the next several years. the federal government telling vendors that anyone who deals with the bank needs to have a minimum wage of $15. we are starting to see this happen, aren't we? may be we are starting to see this minimum wage come to the back door. the federal government is anchoring expectations in a way that is encouraging for the people who want to see a higher minimum which. tom: i go with the backdoor

theory. i think that's really true. what is so important to me is we always look at, and the microeconomics, we always look at supply or demand or the other. in labor, we are ignoring right now the need for bodies. jonathan: we saw this with the fast food chains,, mcdonald's chipotle, over the last couple of weeks. do you think that is different from what we are hearing from the bank? tom: no, no. we love to focus on the lower two deciles in our analysis. it's a lot easier math. and goes right up there fujian. you are going to see it go right after food chain. lisa: i am wondering how much people's expectations for higher inflation ahead is also pushing them to demand more when it comes to salaries and whether unemployment benefits have given them that window to possibly negotiate. jonathan: these companies are grappling with a ton of demand. these labor groups have

basically got a little bit of leverage, lisa. pay up. lisa: what does this mean for inflation longer-term jonathan: from new york city this morning, good morning. i am jonathan ferro. equity futures down 34. from new york city, this is bloomberg. ♪

♪ jonathan: from new york city, for our audience worldwide, good morning to you. here's the price action. we pull back on the nasdaq by a little more than 1%. some defensive price action this morning and the equity market at least. if you switch up the board and get to the bond market, a picture of treasuries, a picture of bonds. german 10 year yields getting closer and closer back to zero. the demand for an auction out of europe this morning really soft. that was -63 basis points at the start of november and it's been climbing ever since, in line with that cyclical trade in the equity market. banks in europe up almost 70% since then through the same time

period. my question is a simple, what happens when attention turns oil from that and turns towards with happening in italy? italian yields have been climbing for seven straight days. that's a very different story to a bond market repricing. we will talk about that. switch up the board. finish on the foreign-exchange. euro-dollar right now, 1.22 handle. a bit of dollar strength today replacing that dollar weakness. euro-dollar here today -- year to date is down a 10th of 1%. we have talked about this tug-of-war between u.s. exceptionalism, which defined q1, and then this cyclical trade that people have been waiting to build which will hammer the dollar. we have not seen it in a big way yet. tom: ron temple of lazard

leaving us off today. -- leading us of today. our booking team is really wonderful piecing together the people, the voices, the conversation. let us move from target with terrific earnings. one of the great things of tgt's they come out with very crystal-clear headlines of their financial performance. and as we well know, retail doing better than good. target with a sustained 30% margin. they say that this year's operating margin well above 2020 as well. we will going to that as we go along. so much of this is the state of the american economy. a great student of this is a guy who i started reading at lehman brothers years ago. is one of those people that writes a three-page page economic report and you hate him because you actually have to read the thing. joseph lavorgna joins us right now, at natixis after his public service to president trump and the nation.

the great conundrum we have is the legs of the x-axis. how long does the boom last? joseph: thank you for having me on. the boom last for a while. you've got very high savings rates, the household looks awesome. the labor market is booming. there is some friction certainly in the coming, tom -- in the economy, tom. the household looks great. i think after a boom, we will slow perhaps more than people expected next year. when you get these recoveries, i know it was a pandemic letdown, but when you get these recoveries and now you are going to enter expansion mode, they are not measuring in terms of months, they are measuring in terms of years. tom: i want to take your income statement analysis on the american economy unfolded in on your ownership. george saravelos

holding court with deutsche bank. he notes the trade dynamic, the flow of funds within our financial system and the foreign owners of our bonds. do we risk instabilities as we come out of this booming economy, when we look at the trade deficit or the current accounts surplus deficit? joseph: right now, the current accounts surplus, the current account deficit is about 3.5%, going to 4%. it was over 6% in the mid-2000. i am more concerned less about trade but more about fiscal side, where we are going to run a deficit this year of about 16% of gdp. if we get this $4 trillion extra in spending, we could see deficits in the 10%-12% rich for quite some time -- range for quite some time. i am more worried about the federal spending, much less so on the international side. imports are growing very strongly, at about 40%. the demand is so strong, per

target's results. worrying more about the given's physical commitments -- government's fiscal commitments. it will come through the foreign exchange market because the fed is likely to depress yields if interest rates were to rise. that would be a risk that the dollar does soften. right now, the broad trade-weighted dollar is about flat on the. it's down from where it was last year. that got a big surge because of the pandemic and the flight to quality. long-term, the dollar still looks stable. if the dollar was to collapse or punch, that's a different story, but i don't see that right now and the cards. it's a low probability risk. jonathan: it's a risk that you think may be we are not considering enough. i am not and that cap. i am not even questioning that right now. we have shifted from a dynamic

where the u.s. has been importing dis-inflation, particularly from china, and that seems to be changing. here's the thing -- joseph: here's the thing. if you look at the good sector in the economy, is booming. we are about 15% above trend, 10% above trend, it's a huge number, where we have lagged on the services side. it does not surprise me that imports are strong. manufacturing production is big. we are importing all sorts of goods and materials, which is why commodity prices are booming. as the economy reopens and service spending comes back, you're going to see the pressures on that moderate, especially as factories get fully up to speed. what i see on the commodity pricing side is that this is a post-pandemic price level adjustment, and we are going to see disinflation on the good side dissipate. i would still argue we are in a disinflationary environment, not an inflationary environment. lisa: can you elaborate on the,

particularly when it comes to ages? we starting to see wage pressures on the higher end of the income spectrum. joseph: the wage side we are seeing lower and middle income wages rise. we saw that from president trump during the pandemic. she had strong wage growth. if i look at the -- he had strong wage with. our look at the recent trends in hourly earnings, i do not see much acceleration. unit labor costs are still growing under 2%. there are some anecdotes of certain industries facing shortages, people certainly having to pay up for labor. mcdonald's i think was one company that comes to mind. broadly speaking, i don't see much wage pressure. i think as unemployment benefits expire in september. you're going to see more people come back. there are about 21 states limiting better unemployment benefits -- federal unemployment

benefits. you are going to see the labor supply come back in and you will see wage pressure smiling. lisa: this raises questions for the federal reserve and the actions they should be taken. a lot of people have been critical, including robert kaplan of the dallas fed, who says the fed should act sooner rather than later. you seem to say they are doing the right thing, that they are holding tight and they should. what would you have to see to change your mind? joseph: you would need to see that wage pressure really start to accelerate, some real cost pressure. i don't see that. that's number one. number two, you have to see inflation expectations, market expectations and consumer measures of inflation expectations really turn up. on the market side, they have. they are at about 2.5%. with energy prices up, a 2.5% inflation rate after a long

period of undershooting is not very much. tom: your career is one of economic optimism. there's always a timeline, a clear at optimism on the u.s. economy. do we massively misjudge now the x-axis? are we just flying blind on the durability or duration of this fiscal and monetary stimulus that we have where we grossly misjudge the positive benefits? joseph: potentially, yes. i am an optimist. the cares act, the second cares act was a 2.3 trillion dollar package, it was unanimous. the fed moved with incredible you equity. the economy is recovering. washington is debating an unprecedented fiscal stimulus

and monetary policy has been very easy. yes, there is this possibility that we are crating some great risks. for better or worse, we are testing modern theory. the dynamism of the u.s. economy, its entrepreneurial spirit, if you look at the business dynamic data last year from the census bureau, i mean, there's a lot of incredible things that this economy does. so i am still an optimist, but there are certainly a lot of risks. jonathan: come back soon. joseph lavorgna there, natixis chief economist. i want to go back to target. anyway, target says store sales in the first quarter incredibly strong, 22.9%. the estimate was 10.3%. the forward-looking is that the growth can continue. that's the communication coming from the chief executive this morning for target.

the stock is up by more than 4%. tom: in the financial media, we lean on clarity and target is renowned for clarity on what's actually going on, the distinction between online and traditional bricks and mortar. there will be a lot to learn. i would look at the compendium of them. toasty advisory group saying here's where retail is, all different types. it was an optimistic summary. jonathan: the team on the live blog doing a nice job on the bloomberg terminal. for the stock price, we saw this from home depot yesterday, macy's yesterday, nice forward-looking raised the outlook at a couple of the retailers. what happened to the stocks? they faded. lisa: the question goes to the idea of the stimulus checks. if they are starting to slow, the unemployment benefits are starting to be reduced, how long can this spending spree actually rest? jonathan: the additional ui that has been offered in 21 states.

tom: i've got mail come internet. riley from st. louis, how do you pronounce it? target. lisa: i thought you were going to ask what joe manchin thought of. tom: what he is saying is i am a tool. lisa: it's wednesday, how is joe manchin doing? he and elon musk will join me. jonathan: that will be a roundtable. , coming up john hopkins assistant professor of emergency medicine. i might come in there in a minute. from new york, this is bloomberg. ♪ >> president biden appears to be boxed in when it comes to the fighting in the gaza strip. right now, he is able only to urge a cease-fire rather than taking stronger steps. the president is wary of applying too much of the pressure on israel and he has a

lack of influence on hamas. european union lawmakers reportedly will vote to formally halt an investment of lehman with china. that's in response to sanctions against members of the bloc. china -- there is a demand china lift sanctions before any progress is made on the. eu lawmakers will also urge the bloc to cooperate better with the u.s.. shortages in the semi conductor industry have gotten even worse. research indicates the gap between ordering a chip and taking a delivery increased to 17 weeks in april. the financial group called the weight "the danger zone." it is estimated the chip charge will cost automakers $110 billion in lost sales. and london is now the most expensive city in the world to rent a warehouse. it beat out hong kong and san francisco at a time when the pandemic is fueling a race to space. warehouse space in london sorted 13% -- 30% last year.

consumers responded to the pandemic by shopping more online, boosting the demand for logistics sites. 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.

♪ >> the problem and the issue is

that we don't have any way of knowing who is vaccinating and who is not vaccinated. i think that's where the confusion arises because there are certain establishments who are saying, while, i am going to have people coming to my establishment and store, some will be vaccinated, someone out. i am not going to know the difference. jonathan: that's dr. fauci speaking to good morning america. from new york city, good morning, america. i am jonathan ferro. over in the u.k., we just say the broadcast. tom: they are formed by a secret committee of people that never speak to me. you have no idea. jonathan: good morning, america. equity futures down 33 on the s&p 500, down 0.8%, good morning, the world, in the bond market. [laughter] can i have a look at target just quickly? first quarter sales, 22.9%.

the estimate was 10.1%. the forward-look, it's a nice forward-look. tom: it's been a struggle for target in the last 10 years. 18.8% total return. , let's call that on the edge of apple. there is a giddiness that we are mask free for those vaccinated, which is a real benchmark over the 14 and 15 months we have lived through and others have been courageous of, including at the johns hopkins university. we are joined this morning. we have an effervescence of the end of the road. there has still got to be a radar up. what is our radar up about in the celebration? >> i think celebration is a great word. i think people are excited to

see this sort of opening has vaccine gets into my arms. that radar up is probably going to be around kids as we move towards getting more kids vaccinated and thinking about when they go back to school in the fall. those pockets of the country that have lower vaccination rates that we really still have to be careful of and careful for as we target our new vaccine strategies. tom: what are we going to do in september? let's distill this down. 600,000 kids vaccinated. everybody, in particular the haves, are dashing to get their kids vaccinated to get to camp. what are you going to do in a classroom where you have 20 kids vaccinated and tend not? >> i think we are -- 10 not? >> i think we are still waiting to see what that looks like. it is probably going to be county to county, school to school. there's going to be a lot of

differences on how schools reapproach in-person learning in the fall. what we will likely see is in areas where masking was early uptake, they will probably keep some masking requirements depending on how vaccinated local areas are. they will look to those instances of prevalence to think about if incidents fall below a certain amount, will masks,? will there be online options for kids who cannot get vaccinated or whose parents don't feel safe having them in school? i think it's going to be a patchwork of different strategies. lisa: to put a spotlight on this, when my kids go to school, i have to give a doctor's form to the school to say that they have been vaccinated for a whole host of diseases. why is covid-19 different from the? lauren: i think right now it is different because there are not vaccines for all kids. the vaccines that we do have are still in the emergency use authorization phase. those vaccines that are on the list that kids get into school

now are all approved and licensed products. covid will be another vaccine that you see on your list of required vaccines, but we are not there yet. it is both a product of access and a product of where it is in the regulatory status. jonathan: a question i receive is, why are we vaccinating children? why aren't we doing that? lauren: so, there is couple things around kids. we know this vaccine is safe. we are seeing that as pfizer moves into vaccinating more kids. kids can be in high-risk situations and also create high-risk situations. even if their acute illness is less impactful for the individual, they can easily spread it to more vulnerable populations, which is a high-risk in schools. we don't know what long-covid

looks like in kids. kids may have lasting impacts from the disease. that is one of the big things we're are looking at now on the science side so that we move to protect it quickly. jonathan: just finally, you said something about high-risk situations for the vulnerable population. are they vaccinated now? how do they have the opportunity to receive a vaccine if they want? lauren: they have to be able to access it and they have to have a path towards getting it. if first thing we do is try to educate and improve or reduce the likelihood of hesitancy, so improve the willingness to take the vaccine. in many high-risk communities, you still have an access issue. working you make sure on how do you make sure people who overcome the has a very take the next step to receive the vaccine? in some high-risk communities,

it is still a challenge. lisa: one will the youngest individuals, those under the age of 12, be able to get vaccinated? lauren: there are several studies -- several vaccines heading towards that path right now. we are waiting for the final studies to finish and the acip to review those recommendations. i would guess sometime in the next few months we will start to see a clear timeline for that happening quickly. jonathan: thank you. always good to get your perspective. lisa, sounds like some home bias to that final question. how do the boys handle that, if one can have the vaccine and one cannot? how does that play out? lisa: lots of gloating. they want freedom. there are still restrictions until you are fully vaccinated. even then, people are still being cautious. they want freedom. jonathan: one of the boys feels like he has more freedom than the other. lisa: correct.

maybe or maybe not it is held over the other one's head. theoretically. jonathan: just in case there might be two boys at home. tom: i feel like i am on "good morning america." jonathan: not everyone gets sent off to camp, tom. tom: that's the heart of the matter and the inequalities america. you have the elites dashing to vaccine repair and a lot of people are not. we've got to fix that. lisa: the implications, the social implications of the past 14 months for school-age children have been astronomical. that will be studied and dealt with for years and years to come. expenditure medic time. to get people out and socializing, especially for kids -- tom: they are too busy playing "minecraft." jonathan: i am with you. the psychological impact of all age groups. coming up, -- tom: i thought brandy melville

was a mover. jonathan: from new york city this morning, alongside lisa abramowicz and tom keene. i am drawing things out a little bit. going to take my time before i get back in. this is bloomberg. ♪

♪ >> how do markets deal with the pace of growth that was so abnormally strong and is now slowing to something much more historically normal? >> people don't like inflation, this is true. but they will tolerate it. >> fundamentals for most companies have been quite good, but the fundamentals for the reflation trade has been even better, so everything has risen. >> transitory gives the impression of over and done very quickly. i don't think that is what we will see. >> this is "bloomberg surveillance" with tom keene, jonathan ferro, and lisa abramowicz. jonathan: it is risk off this wednesday. good morning. this is "bloomberg surveillance, " live on tv and radio. alongside tom keene and lisa abramowicz, i'm jonathan ferro. equity futures down 35 on the s&p. we declined 0.8%, and target