and it the market. >> i worry after 2021 boom, we will slow perhaps more that people expect next year. >> people don't like inflation, but they will tolerate it. >> we have a very different set of circumstances right now. >> nothing supernatural about the u.s. economy. we have given it a lot of extra adrenaline. >> this is "bloomberg surveillance." jonathan: from new york city, good morning. this is "bloomberg surveillance." i'm jonathan ferro alongside tom keene and lisa abramowicz. europe 21 points. -- we are up 21 points. we're talking about it under the fed minutes, the most overused phrase the last 24 hours. tom: to me it is just the beginning of talking about it,

talking about it, and they will wait for the economic data. most of that will be gdp, the presumed tail off we will see in gdp. will that occur. i am looking at market stasis, which is comforting after what we saw yesterday. jonathan: are we prepared to call it no big deal? lisa: i would say this is a big deal. tom: crotch the across the kitchen table, no. lisa: thereby getting that conversation. how french this conversation really is versus the actual voting members, all upper debate. we are talking about talking about thinking about and this is a big deal. jonathan: who is talking about? that is key. it is often a case the hawkish minority on the federal reserve come to some degree i think yesterday was no different. we have to say it is more than a couple. more than just -- that is notable. have to say this predates the

payroll report and in the paragraph everyone has been quoting for the past 24 hours or so, discusses a rapid recovery, the continuation of a rapid recovery. i don't think the payroll report speaks to a recovery in it the month. tom: i am going to the data and what we see on the data and they will act when they act. with that is getting of the market and trying to guesstimate where we are. i would focus on the retail earnings numbers we saw yesterday. they were extraordinary and importantly that good guidance. granted, that only gets you out three months, maybe six months were under the fed parlor game we are trying to get up one year, two years. jonathan: the guide to look forward has been pretty decent from the retailers. lisa: this speaks to the dynamism that other central banks around the root responding to. you been out with the ecb and how they may be the more interesting meeting. what happens if other developed markets and central-bank start moving ahead of the fed? what does that do for the fed

that is more aware of the national stability risks in tandem with the ecb and others? jonathan: "10% correction in is good and markets could therefore lead to a significant tightening of euros on financial conditions similar to around one third of what we saw in the coronavirus shock of march of last year." that really, really gets your attention. just a 10% correction would lead to something that vicious. tom: in europe, you're seeing it. let's go to the yields. the big thing the last two days is not bitcoin, it is the real yield to finally begun to notch up, lesser -10 year yield and see the march of the german 10 year yield -.094. this is oliver 10 on target stop -- on target.

starting wages at $15 an hour resulting in high engagement. that to me is more germane than the policy came of the fed. jonathan: we will have this debate to the morning. let's get to the price action. equity market down. , talking about the real yield. here's the nominal. commodity market talk of sanctions being lifted maybe in iran. we will talk about that a little bit later. euro-dollar, lisa. lisa: what i am looking at today in addition to market response to be talking about talking about maybe talking about tapering in addition to a slew of other events, 8:30 a.m., u.s. national jobless claims. tom: thank you. lisa: wheezed to think they were significant. now it is a western. i might be more interested in the philadelphia fed this does

that look especially with respect to manufacturing, supplies, supply chain shortages. still expect them to continue a downward slope as people start to get back to work after the pandemic. 1:00 p.m., $13 billion option of treasury inflation protected securities from the treasury department. how much demand is there for investors looking to hedge themselves against rising inflation expectations? yesterday cathie wood of arc investment said she was more worried about deflation in the u.s. than inflation. the raging debate continues. today, the was secretary of the chamber of commerce is going to be holding a summit on the shortages in semiconductor chip industry. she will have a host of ceos from the biggest companies. the key issue is, what is necessary to bridge the gaps we continue to see with record wait

time for people to actually get the chips they ordered? jonathan: tremendous respect for cathie wood. do you think she was talking her book a little bit? tom: no. lisa: hold on. there is a question, she was pointing to the recent decline in commodity prices as perhaps a signal of what is to come. what happens if the imbalance under the economy due to the pandemic with people buy more goods and services leads to an overproduction of certain key goods that then leads to price deflation in the future? it is something people are talking about. i would argue disinflation is a better term than deflation. but an interesting point. tom: don't get me going. lisa: go ahead. tom: talking her book. i thought carol did a great job trying to tackle the moment. cathie's defense trying your portfolio daily, weekly, it is really difficult. jonathan: jobless claims 450.

tom: i am glad that lisa brought it up because i am forgot -- i forgot it was claims thursday. an elegant chart. it will be amazing to see if that trend continues. jonathan: let's bring in russ koesterich. are we talking about talking about it and should we be talking about it this morning? how significant is this? russ: we will be talking about it one way or the other. i think this is important. the that is likely to start to shift the policy stance in the coming months. it is not unrealistic to think you would be good tapering in q4 bank. having said that, despite the heat being spilled a couple of points, long-term yields have remained remarkably contain. we have never taken out the high from back in february/march. bond market volatility is down

significantly from where it was back in february and march. despite the biggest inflation printing for years. this is a big deal. the wheels are not coming off the vehicle yet. that is important to realize we still have a 165 tenure, bond market volatility right now is still modest. as of today, helps explain why stocks are down only 2%, four percent. tom: the correction has been an on correction. can you buy the big tech? if they been unloved for a long enough time with the value is relatively unloved? russ: i think there are opportunities in the big tech. it is the mega cap, high-quality tech. not the more speculative names come the ones were earnings are five or 10 years out. we have been trimming those from the portfolio. yes, talking about high-quality tech in the next one to two quarters if we get these gaudy gdp numbers and cyclical trade continues to or three is out, i think you went them your

portfolio. lisa: there is a question of whether treasuries can provide truly a hedge for equities at this point, especially given the negative correlation i one measure got into the most since the 2000's. what is your sense -- early to thousands, should say. what is your sense of how hedge worthy treasuries are? russ: right now, not much. things have changed. if i look at stock-bond correlations, everyone knows they are taking up most of what has been let's discuss, equity market volatility has remained elevated compared to bond market volatility. it was a few month ago. the reason it is important and affecting the efficacy of the hedge is that tells you how convex a hedge it is. even in these days when the market is down a couple percent the way it was last week, either bonds are flat were up a little bit. they're not giving you that big movement that made them such an

efficient hedge the way they were a couple of years ago. that is a big change. we don't talk about that a lot. we talked about bitcoin and the fed. if you're building a portfolio, the degradation efficacy of bonds as your primary hedge is a big deal. jonathan: your the first to mention of this program. russ: serves me right. jonathan: are you still nursing the cash position? russ: we do have the cash position. it is the flipside of that. everyone has a volatility. in the absence of duration, need other hedges. part is cash. there are others as well. there's fx pairs. in a world where you're not getting that convection duration to hedge, will run with more cash. jonathan: thank you. russ koesterich blackrock. portfolio manager.

just a conversation about the substitution for duration, time, if we get that risk off move, where to get the protection? tom: the bond dynamics, we throw these words around time it it is still a mountain of cash that is out there including what russ has come at the mountain of cash given absolutely fiscal and monetary policy, i am not sure the bond market since signals i am familiar with. jonathan: it is pretty simple. tom: look at the real yield. jonathan: there is green on my screen. treasuries can't guarantee you that. lisa: and saunders came out today from charles schwab and said the ruling sixty-day correlation and negative territory come the most negative since the mid to thousands. highlighting the lack of protection for treasuries are providing. jonathan: a big challenge.

we will continue this conversation with evan brown at 7:00 a.m. eastern time as some point, someone else might mention the "b" word. lisa: a new drinking game. jonathan: good morning. equities pulling lower. this is "bloomberg." ♪ >> president rouhani says a broad outline has been reached. 2015 nuclear deal. removed economic sanctions. he says differences remain over some issues was to pay top u.s. official said yesterday that iran and the u.s. are close to a deal. media reports of israel and hamas your a possible cease-fire deal after president biden urged benjamin netanyahu to wind down the conflict, according to "the

new york times" we would unfold in stages. israel would quit attacking the hamas infrastructure while the palestinian merchants would halt rocket attacks. china has released his first images from mars probe. it landed saturday curing the rover dish carrying a rover post of china's the second contractor the u.s. to send a rover to mars. the cofounder of apollo global management josh harris has decided to step down from his day-to-day role. he wants to attend his roots as investor and entrepreneur and will continue to serve on the board's executive committee. the democratic-controlled house has voted to create a commission to investigate the january 6 insurrection at the capitol. 35 republicans broke ranks with their leadership to support the probe but legislation is uncertain. mitch mcconnell is supposed was of democrats would need 10

republican senators to vote in favor of the investigation. global news, 24 hours a day, on air and at quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. this is "bloomberg." ♪

>> if russia acts aggressively against us, our partners, our allies, we will respond.

president biden has demonstrated that in both word and -- not for purposes of escalation, not to seek conflict, but to defend our interest. jonathan: secretary blinken. good morning. i'm jonathan ferro. agreed futures down 22. -- equity futures down 22. jobless claims this morning. we want to see a continued drop in claims. bond yields lower. foreign-exchange, meted on euro-dollar. stronger euro, euro-dollar. tom: a good litmus paper is the vix. midway between the 27 angst we saw a number of days ago and the nirvana under 20. that is sort of where we are at 23 level. what is the angst in washington?

jeff is patrick joins us now. -- jack fitzpatrick joins us now. i am fascinated by the symbolism up 35 republicans on this commission on generally six. not so much about january 6, but the symbolism of 35 republicans crossing the aisle to join the democrats? or did they just join the democrats and not cross the aisle? what is the nuance there? jack: it is interesting it was a substantial number of house republicans who did end up joining the democrats in supporting this bill at a time when it's in leader mitch mcconnell said he is against this. this is going to go to the senate and now the leadership has taken a clear stance against the bill despite the fact it would create a 50/50 commission in terms of republicans and democrats. it seems doubtful such a high

number equivalent in the senate number of republicans would come on board if you have leadership starting to whip against this. that 35 number may be the high wage because we are seeing movement in washington where republican leadership comes out more strongly day by day saying we really what rank-and-file members to oppose this. tom: but as the republicans reset, are those 35 republicans seen as abandoning the republican party or do they just decide to support the democrats? which is it? jack: it could definitely be a controversial move. this is not the kind of bill where you can devote with democrats and there will be no repercussions. the major issue in primaries going toward 2022 will likely become did you stand with former president donald trump. everything he wanted you to stand with him for? and trump does not want this

commission, at least that is the expectation among many republicans, that trump does not want this commission to go forward. the spotlight on january 6 does not help that faction of the party. so to see almost three dozen republicans side with the democrats on this, that is a significant vote and could be the kind of thing that comes up in their primaries. lisa: we talked about these proposals and measures and initiatives, and we wonder what will get past and what will have consequence for markets. one thing a lot of people are saying will have consequence is bitcoin. some of the volatility we have seen. not only with price, but the platforms the transact some of the crypto assets. can you give us a sense of how much urgency there is on capitol hill to create regulatory framework for bitcoin i can do what we have heard from china and what a lot of people are asking for given the recent volatility we have seen in the price as well as shortages and

outages in some of the platforms? jack: we are still in the early stages of that conversation in washington. because the revelatory conversation is not in guess regulatory conversation is not in the top level of priorities biden has been pushing. if you're really looking for legislation that could become law, it would be after we get through all of the infrastructure talk and the human infrastructure talk and even the climate issues that democrats want to bring up. it is the kind of thing where you're hearing some members getting more and more vocal about oversight on this, but in terms of translating that into a bill that could get a markup and actually have a chance to becoming law, we are not quite there yet because we are still on the top legislative agenda of the biden agenda. lisa: when biden came into office, one of his promises was to restore and view government

could work, that government to get things done admit proposals that could make the economy -- many people in a better place. is there since he has changed anything in washington based on the progress of some of these bills or doesn't seem like the machinations of these negotiations are stuck in the same trends we saw pre-biden? jack: if you asked democrats that question, there would say the initial stainless was a big step forward on that. significant campaign promise that people would get to thousand dollar checks come they got $1400 plus $600, which basically counts -- they would get $2000 checks, they got $1400 plus $600, which basically counts. significant thing for the president to come in and very weekly back of a campaign -- quickly back up a campaign

promise. he promised more bipartisanship and seems to be some progress with an infrastructure bill we are we are maybe halfway through the process so it is so full of part. but politically, yeah, a lot of what we have seen as gold well for biden because he has been so far in the early stages to backup significant campaign promises. jonathan: jack fitzpatrick, thank you, sir. we will talk about the philosophy of the administration later on. we continue to cut up the states that remove the additional ui, all of them republican states, who believe in their view for their states they believe additional ui is holding back employment. tom: that jargon is great. on the unemployment or whatever it is called, it is absolutely

unreal -- we forget how original this 2021 is. the only analog and modern-day is 9047, 1948. and even that. when you speak to the wonderful guests today, it is original where we are right now. jonathan: it is a struggle to find a historical parallel for the moment we are in. lisa: and to understand what is causing what. the fear people are kept out of the workforce. the studies are conflicted. it is too early to determine one way or another. but how do you respond to that when there are people who cannot get back to work? this is the struggle. jonathan: there are childcare issues as well. equity futures this morning decline, down 18 points on the s&p 500. bond market, yields are lower.

from new york city, alongside tom keene and lis abramowitz, i am jonathan ferro. counting down the market opened three hours away. this is "bloomberg." ♪

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jonathan: good morning to you. here is the price action. for all the talk about talking about talking about tapering, the bond market. yields were hired by three basis once. taper tantrum. right now 166. yields come in about a basis point. for many people, this was sensible. if you think about a number, what is the number? it is more than two or three. that is notable. he think about the words rapid recovery, continuation of rapid recovery. this came before payrolls. you look at payrolls and that was not rapid.

we keep going back to the same story for the federal reserve minutes, it is always good when you have a dovish the reserve, that is a platform for the hawkish minority. that is what you so yesterday, the hawkish minority. that is the bond market right now. i don't think everybody got the joke. yields and change. we can talk about the taper story little bit later. it is a story for the next month, the month after that. the federal reserve is not good to jump from one point to another after the huge communication effort over the past 12 months. euro-dollar looks like this. positive on the day. the ecb chief economist out this morning talking and saying he does not put much weight on this inflation narrative. that is the ecb's position. i am fascinated by this ecb meeting. tom: that is the most important quote this morning.

jonathan: there's going to be pushed back. tom: many on wall street agree with dr. lane that you're going to see a spike up and then we will damp down, come again to something more normal. jonathan: we have touched on this a couple of times. that is philip lane and he is in line with the call of the federal reserve as well, the much surprise pressure we're seeing is transitory and worldwide. the issue the ecb has that the federal reserve this ad have right now, there isn't a framework the governing council has agreed to in the same way the federal reserve has. i remember hearing from governor carney years ago but even over many people it did not go so well, one thing it achieved, it kept the hands of policymakers tied and kept the committee on the same page with an appropriate amount of time. the ecb does not have that. those hands are not tied and

that is why you get the hawkish sound even though it is not maybe warranted. tom: john, i need a briefing right now. you're the only one out of 19,000 employees that can do that. someone asked me and crystal palace briefing. josh harris owns new jersey devils. crystal palace, they lost three to one. jonathan: i am sure there is a crystal palace fan. i am not one of them. probably not your guy. tom: are the edge of relegation? jonathan: that is done. autumn three sorted out. we need to talk about yields. is that what you are avoiding? tom: know, we were stressed out. -- no, we were stressed out.

very good. shelley bassett joins us now. he got the devils. he has crystal palace. why is he leaving the front of apollo management? >> to focus on those things. we know he made the pitch to be ceo of apollo as leon black started to step down but that is a role his cofounder had gotten. you are seeing, tom, in just a couple of days, the fabric of wall street. the top leadership at two major firms start to take shape much faster. we are seeing success. tom: i went to get out front of all the market wall street. little action in midtown manhattan. we have bloomberg getting more people, the food courts actually populated, light at the coffee machines. do you know what the copy machine cost? sonali: i don't. but a lot of people made a lot

of money by betting on distressed last year and that opportunity is over. tom: so the key thing is a movement of management like we've never seen before? sonali: when was the last time he saw changes this fast and hard? it is time to change jobs. we were talking to recruiters all week. kind asked for more money as people are starting to change jobs -- time to ask for more money as people are starting to change jobs. a public a firm that has grown, fill the holes as the banking system started to step back and it the last decade, and bloomberg reported weeks ago this was going to be possible. it happened much faster than expected. this is at the top level, guys. lisa: taking a step back, is this your garden-variety moving wrapper bigger paycheck or is there something larger at work? particularly with the private vestment management firms given how big they are and more

mainstream and frankly, attracting more scrutiny that they have become? sonali: on one hand, this is a very apollo story. there has been a lot going on for the last couple of months. private investment firms have been looking for the next generation for decades, for years. we are also seeing it at the banks. jane fraser recently took over. it is not just the private equity firms. tom: greatly appreciated this morning. in london, roger bootle joins us. very important work. roger, i have to ask about the churn we are seeing right now in this great economy, the philip lane comment that jonathan ferro had is so important. telegraph writing up inflation worries. do you have inflation worries? roger: yes, i do, actually. saying i have inflation worries,

i don't think it is going back to the inflation of the 1970's. it concerns me a lot of people in the markets and central banks and governments are becoming a bit complacent. at the moment we are seeing particular prices going up and people have been saying this morning those effects are going to fade out but i think the bigger issue is all of this money sloshing around at incredibly low interest rates. i think we risk inflation surge. jonathan: is there a place where you think the complacency is more concentrated? roger: i think the danger is greatest in the states because the economy was not that hard hit. i was hard-hit by the pandemic but not as hard hit as countries in the euro zone or u.k. you've had this absolutely massive fiscal stimulus in the money supply is going substantially. already at 4.2. i think you will see inflation

readily at 5%. i don't think it will subside that easily. but the other end of the spectrum, i euros come is not amazing that much of inflationary danger. of course there will be spikes but i don't think you will see anything like 5% under the euro zone. u.k. is in between those two cases. jonathan: is their financial stability risk? roger: yes, i do. the big question is what central banks do. if they don't do anything very much for some considerable time, i think the risk is they will be bounced do jumping interest rates and then that has a very substantial stability risk. i think the appropriate thing, what's we are clear the economy really is pretty strong and inflation figures are picking up, i think central banks should start to edge of interest rates pretty soon. lisa: what will be the impetus behind higher wages in the u.s.?

a lot of people who come on this show say it is sort of a pre-determining factor to longer-lasting inflation as your predicting. roger: it depends on how strong the economy is. all signs are the economy will be very strong. that increases the bargaining power of labor. it will not necessarily appear immediately but it does happen. shortage of people, wages up. you're right to say you can't have continued inflation going mad for a long time and this wages pickup. but i think they will. after all, wage earners will have to pay higher prices in shops and that will affect their living wage and they will want to get some sort of compensation for that. by the way, in the past with inflation has gotten out of control, it is always begun with people saying "oh, these are special factors, don't worry, it will fade out."

." the central bank saying "we're taking a relaxed approach." lisa: torpedoes markets and causes perhaps a return to pressures on the economy. can you square the trajectory of the inflationary push and perhaps the market crash is subsequently results? roger: i don't think it is inflation itself that poses a market. -- that poses a risk. as far as equities are concerned, i don't think inflation itself -- obviously, equities are sensitive to what happens in bond markets. the risk is from policy. if the policy makers decide there prepared to tolerate 5% for a bit, fair or not. that does not materialize. i would presume and some point 5% would be seen to be too high. the fed has altered its target,

prepared to tolerate inflation 3%, 4% for a while, for a few years. but if this gets buried, i think it has to act. if it at spy raising interest rates by anything other than a tiny amount, you've got to wonder in the financial conditions in which we have been living, very high asset valuations, huge amounts of debt, you have to wonder what the fallout from that will be. i think it will be quite ugly. tom: roger bootle, have we forgotten that joy of nominal gdp? you and i are fossil enough to remember the bright lights of gdp open corporations, and the corporate spirits, the business spirit if you will. have we forgotten a little bit of inflation can be a good thing? roger: i have not forgotten about that. the trouble with a little bit of inflation is like being a little bit pregnant. tom: i would not know anything about that. roger: things tend not to stay

that way. it is -- in the 1950's and 1960's, get inflation that did not get out of control for a long while but then it did get out of control. you're right in the sense we don't want any economy flight on its back with zero inflation, let alone deflation. if we have to percent, that is probably good, better than 1% or 0%. once you get to the higher levels come into get difficulties emerging. so far central banks have not wanted to accept something like 5%. maybe they will. jonathan:. the conversation i expected but we will leave it there. lisa: a little bit pregnant? tom: someone from london, anne-marie saying she left for

the first time in 2020 -- laughed for the first time in 2021. jonathan: someone put us together and you knew nothing about english football. how on earth do you know everybody who owns each club? i had no idea. tom: i am up at 2:00 a.m.. roger bootle is telegraph list of telegraph football. tom: i am worried about harry kane. four years ago where harry kane was going to go to ac milan. why can't that happen again? jonathan: i don't think with the club he is looking for. tom: seriously, yes to go to the biggest paycheck. jonathan: that is not coming from us. a good come from paris, spain -- it could come from paris, spain. tom keene, jonathan ferro.

equity futures are down 15 points on the s&p 500. we are declining list of your bond market is at 1.66. down about a basis point. this is "bloomberg." ♪

>> there are going to be a lot of differences in how schools reapproach in person learning in

the fall. we will look to those numbers to really think about if incidents falls below a certain amount, will masks come off, will kids be fully back in person? will there be online options for kids you can't get vaccinated or parents don't feels that having them in school? i think it will be a patchwork of strategies. jonathan: johns hopkins associate professor for emergency medicine. counting you down to the opening bell. equities declining on the s&p 500. yields lower by a single basis point. little bit later, 8:30 a.m., jobless claims in america. on the bed speak look out following the minutes yesterday, the dallas fed president mr. kaplan, 10:30 eastern, we will hear from the less dovish member of the fomc. should we put it that way? tom: i think you would prefer that

within the news. the pmi numbers we get coming up, is it a big deal? jonathan: yes, just to get a continued read on what is happening in america. europe and the united states going forward from here. -- on what we have seen more accurately, which is great demand and a real problem meeting it. tom: the problem is the generational gap here is outrageous. riley from st. louis emails i banner, which, she wants me to run it. she is in my ear saying, we have got to put it up. we need to brush jennifer nuzzo aside. let's put up the data right now. elon musk has tweeted out, and exclusive on "surveillance," and i can't believe i'm writing this, "must tweets photo of paper money."

can you translate that for me? jonathan: i'm looking at his twitter and ss, "how much is? that doggy in the window" lisa: originated as a joke currency. tom: it is insane time. jennifer nuzzo is think about where we doing this? dr. nuzzo, would point she had to study the reality of the fear of measles. yes, mumps, rubella, and the rest, but in the early 1960's, it was not polio you were scared stiff of, it was measles. there was a measles vaccine. i remember that really. jennifer nuzzo, our there right now? we are going to see a societal relief? >> i hope so.

these vaccines we have are great. we got so lucky with them. i hope people see them as something that can relieve them and relieve the stress and worry. unfortunately, i think not everybody is embracing them with as much a doozy as a as i am and i think people should be. it is a pretty great discovery for us to have. jonathan: why are vaccinated people still getting tested? >> they should not be. the cdc says they should not be posted symptoms, sure, we do know there are some breaker infections. it is rare. we really only care about the people who are clinically going to have a fx like symptoms to spread it. we know people who are vaccinated are very well protected against infections. few people do go on to become infected. without symptoms, it is hard to transmit it. it is likely their levels of virus is so incredibly low. certainly, they should not be using every sensitive test like

pcr on people who are vaccinated and have no symptoms. jonathan: is that why you feel strongly about it, resource issue? >> not really, but it can cause a lot of concern and chaos. a colleague at harvard has been arguing if you're going to do anything, is an antigen test which is less likely to pick up the people have remains a viral rna in their noses and focus on the people who are likely to be contagious. my sense is if you did that, would probably -- those people would not test positive because they're not likely to transmit. lisa: do agree with a doctorate johns hopkins who says it is time to move to a post-pandemic reality where covid-19 is treated like the common flu? >> i think we are getting there. there are still people who have not had a chance to get vaccinated and people who got vaccinated on the first day they were eligible and are not yet fully immunized.

depending on what vaccine you get, that process may take six weeks. we are heading there. once we get to the point where any adult who wishes to be vaccinated has had time and opportunity to get it -- which i think will be soon --i think it changes the dynamics. lisa: people say, what about my kids? i have kids myself who are too young to be vaccinated. i think we have parents with the perspective those kids are completely unprotected because they have not been able to be vaccinated. they would be more protected, sure, if they were able to get vaccinated and i expect we will see vaccines be available in the fall. but you can protect your kids in other ways. as adults get vaccinated, the cases will drop in all age groups. that protects kids, including those not vaccinated. if you bring your kids to a proud it in your space -- routed indoor space, they can still wear a mask. i don't think they need it playing on a playground by

themselves. if i took my kids to target and it was crowded, i would have them wear a mask. keep your distance and try to stay outside as much as possible. i think things will feel much better i did the summer but it is contingent on mortals getting vaccinated as quickly as possible. i hope people do that. we are ready to move on. jonathan: dr. jennifer nuzzo, thank you. senior scholar. making the point that vaccinated people should not be tested anymore. tom: it is a game theory. it is a game theory. you can go to any major course on game theory, wonderful book "the art of strategy," a strategy for getting to the process of a new vaccine. we are in the middle of it. i would suggest a major difference here is the speed of news transfer, social media. with the measles and the early 1960's, we did not have the

cable network for the social media to get the angst, science crew and nonsense crew come into a battle about this. now we have got that. jonathan: lisa, corporations trying to figure this out. lisa: when is it mover beget public health threat to a more personal response -- when does a get from a public health threat to a more personal response? can 70 contracted bars in the say to a company, it on me because i could have gotten vaccinated? these are some of the key questions if companies had to bring people back to work. jonathan: we are pretty close in the united states. the option is there to get a vaccine. lisa: and jennifer nuzzo raise the issue have kids. that is a big question with studies coming out. as we head into the fall, less of one. jonathan: yields basically

unchanged. euro-dollar -- ," bitcoin -- tom: bitcoin. 40,000. currency equivalent. jonathan: from new york city for our audience worldwide, this is bloomberg. ♪

♪ >> we've never had a situation historically where the fed has not begun to normalize rates and there is an inflation concern in the market. >> i do worry that after a 2021 boom, we are going to slow perhaps more than people expected next year. >> people don't like inflation, this is true, but they will tolerate it. >> 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. >> 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 tom keene and lisa abramowicz, i'm jonathan ferro. equity features down about 15 points on the s&p 500. a headline just crossing the bloomberg from the eu