♪ >> we've never had a situation historically where the fed has not done to normalize rates and there is an inflation concerning the market. >> i worry that we are going to slow perhaps more than people expect next year. >> the fed is likely to shift their policy stands in the coming months. >> people don't like inflation, this is true, but they will tolerate it. >> the trouble with inflation is it is a bit like been pregnant. things tend not to stay that way. >> this is "bloomberg surveillance" with tom keene, jonathan ferro, and lisa abramowicz. tom: good morning, everyone.

it is a simulcast on bloomberg radio and bloomberg television. it is a wall street back to work near the end of a pandemic. all sorts of cdc policies and changes, and changes on wall street as well, with quieter markets. it is about a changing of the guard at jp morgan and now morgan stanley. jonathan: down about 0.2% on the s&p 500. on the changes from jp morgan and morgan stanley, the leaders are sticking around. still a rolling five-year view for jamie dimon, and for james gorman, another three years. tom: the markets are having the same challenge as well. we could go eight ways on first market comments, but i guess i've got to go to finally, the real yield seems to turn to a lesser negative yield. jonathan: up nine basis points in yesterday's session, and what was interesting about that?

very little collateral damage in the equity market off the back of that move or get equities down just a touch. information technology, the relative outperformer only s&p 500 despite that move. tom: we had to disagree. lisa and i just not on the same page. lisa, you look at the minutes yesterday and saw a fed beginning to chat. lisa: beginning to chat about chatting. let's be clear, they are taking about thinking about talking about talking about tapering. but i think it is notable they are getting a little more concerned about the inflationary pressures and trying to signal it. there's a reason that they put in the meeting minutes and that the indicated it was more than just one or two members. it seems like there is a coalition, perhaps not the core, but on the peripheries. this comes at a time when it is very difficult to gain out the market -- two game out the market. tom: what i can agree with, jon ferro is looking at 42 charts on the bloomberg terminal, jobless

claims are a really big deal. they are wonderfully elegant, and the trend of fewer claims across america, we see that data in 28 minutes. jonathan: here's the key line from those fed minutes yesterday. "if the economy continues to make rapid progress towards the committee's goals." since that particular meeting, can we say the economy has continued to make rapid progress toward the committee's goals. payrolls would scream no. far more nuanced than just a clean, rapid move through a recovery. tom: the trend looking at 450 thousand, this is weekly data, so that is a trend. anything under 450,000 dollars would be a constructive shot. jonathan: trend is good. things are getting better. the fed's view is that we cut to take some time to work these kinks out. we've got this huge mismatch, and with time we will work this out. yes, higher prices might solve

some issues elsewhere. the issues around chip shortages , issues around car rental prices, airfares, all of those things, yes, there are scopes to move higher from here, but they want to give it time. lisa: can i just say one thing? this is what i think is perhaps getting the fed's attention. mohamed el-erian came out they bloomberg opinion column yesterday and said worries are growing about the risk of a policy mistake, risk regardless of what we have seen in terms of mixed data so far. one of the last things the economy and markets need is a late fed forced to slam on its brakes. this is a threat, and it is when the fed is aware of. tom: we are doing it was a boom economy we have never seen before. we will talk about that with an esteemed guest in a moment. in the data, i am going to go to the vix and work off that. we had 19 and a big old market. we pulled back to -- egg bowl market. -- big bull market.

we pull back to a 27. jonathan: the nominal yield, 1.664 2%. euro-dollar, $1.2206, coming in about 0.25%. if the team in the control room could grab the chart of the u.s. city surprise index, joe weisenthal brought this up recently. it has been rolling over. you can have a look at the u.s. bloomberg surprise index and shows the same thing. relative to expectations, data and america over the last several weeks has not delivered. it is starting to look like a very different picture, data versus expectations, compared to last year, when we just had this incredibly sustained upside surprise after upside surprise because people had continuously underestimated the recovery through last year. this time it is different. the bar is higher and we are missing that high bar. tom: getting some data through the week that will help us with that. retail sales a friday ago really

helped people recalibrate their gdp numbers. right now but we are going to do is look at the equity markets through the prism of institutional equity selection. and millett a -- ann miletti is iconic at wells fargo. we can have a three hour conversation here on the efficacy of value. the basic idea is value sits for x number of years, and then it is go, go, go. can value go moving forward? ann: it has had a great run and has certainly closed the gap with growth, outperforming growth in such a wide margin in q1 and past that, as you know. the challenge here is the million-dollar question that the three of you have been talking about so much this morning area do we really have inflation ahead of us, or is it something more like we are in this economy that was shut off with a light switch, and it is now being turned on with a dimmer switch?

at the end of the year, we actually start to see this booming economy really look more normalized and much slower. and therefore, some of the inflation fears that investors have today really start to kind of moderate, and you then focus on the companies that can outgrow. so while value is still attractive to our investment teams, there are some stocks in the growth space that investors would call the growth space that are also starting to look attractive to us given some of the selloff, and given the fact that those continue to beat earnings estimates, and the multiples have compressed. so there is a lot out there, a lot of moving pieces, but the recent volatility we have seen in the recent run in the cyclical stocks in particular

has made it more interesting, and certainly more of a stock pickers market. jonathan: i mentioned the surprise indices. the fact that they have rolled over, that we are consistently missing expectations, what signal does an equity investor take from a picture like that? ann: it is interesting because you see on one hand a lot of expectations being beat, and then there's some economic data that has lagged a little bit more. you talk about what the fed is probably paying attention to, wage growth, employment, rent prices, etc. those things haven't necessarily surprised on the upside, so those are the points i think for the fed when they look at long-term inflation, and that is kind of what they are focused on. investors, however, see and hear from companies all of the

pressures they are seeing with commodity costs, with transportation costs, all of these things that longer-term will compress margins if they don't get it solved. i think they worry that that spillover effect if the economy stays as strong as it is, fueled by all of the stimulus put behind it, you get inflation in those scenarios. lisa: this is one reason why a number of investors have come on the show and said they are looking for companies that have pricing power, that can raise their prices on consumers effectively without denting their sales. it is something reiterated in recent research. how much has that already been priced in, that these companies do have that power and thus are attracting that much more investor attention? ann: it is a good point. certainly, our investment thesis have been very focused on pricing power over the last quarter. to tom's point earlier, the

cyclicals in the value space as you go into a recovery phase of the market, that is the place you are going to get a lot of bang for your buck early on. but the longer the cycle continues, the more careful you have to be about where the staying power is for that pricing power. so our teams are now, rather than an industry or a big part of the market that is going to get that pricing power, it is really more company by company who can sustain it. that is what they are paying great attention to. jonathan: thank you. great to get your input on the market. a couple of big central-bank meetings coming up next month. june 10, ecb. june 16, the federal reserve. on this standard chartered piece, let's read this line. "if we were askin questions at the conference, we would ask them to specify how much disinflation they see as the impetus from a 5% stronger

euro." interesting debate brewing. tom: we've also seen that over the last 18 months, and what i notice is people were originally framing out at 1.30%, and people are getting a lot more sensitive about that. jonathan: deutsche and goldman thing for something in and around $1.25. q4 2021, your median forecast, one hot -- median forecast, $1.21 on euro-dollar year end. lisa: they have talked about talking about tapering sooner than even the federal reserve. the idea that the fed is lagging behind other central banks even though the u.s. is doing better than other regions, what does that do to the currency? does that lead to a stronger euro, or do we not necessarily see them reiterate? jonathan: ubs and devon brown

looking at the reaction functions from different central banks and suggesting that means a weaker dollar. that is the view from the team over at ubs has had management right now. equity futures down six on the s&p, down a little more than 0.1%. for our audience worldwide, claims data in america about 20 minutes away. tom: doge is trading. jonathan: thank you, tom. this is bloomberg. ♪ ritika: with the first word news, i'm ritika gupta. morgan stanley ceo james gorman has unveiled his big leadership shakeup. gorman positioned a strong rebuff -- a small group of his most likely investors. he named copresidents, a cohead of strategy, and chief operating officer. gorman is 62 and has run morgan stanley for 11 years. in iran, president hassan rouhani powers have agreed that

economic sanctions on his country's oil and other industries would be lifted. negotiators in vienna have been trying to revive a troubled nuclear deal from 2015. rouhani says they have taken a "major step." they have been holding indirect talks. israeli warplanes pounded houses, weapons, warehouses, and underground tunnels in the gaza strip today. it is meant to consolidate gains ahead of what could be in eminences fire -- an eminent cease-fire. according to "the new york times," the two sides have been discussing a truce that would stop israeli attacks on infrastructure, and in return, hamas would stop firing rockets at israeli cities. the u.s. house of representatives has voted to create a committee to investigate the anywhere he sixth riot at the capitol. the legislations -- the january

6 riot at the capitol. the legislation's fate in the senate is unknown. 10 republicans would need to vote in favor of the legislation. 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. ♪

pres. biden: whether that's the south china sea, arabian gulf,

and increasingly the arctic, it is of vital interest to american foreign policy to secure unimpeded flow of global commerce. jonathan: the president of the united states there, joe biden. from new york city this morning, good morning. alongside tom keene and lisa abramowicz, i'm jonathan ferro. equity futures about an hour and 12 minutes away from the opening bell, down seven, -0.18%. claims data 12 minutes away. yields coming in about a basis point. euro stronger. we reclaim that $1.22 handle, up about 0.25%. that is a stronger euro. tom: i do want to note, bitcoin finally gets some movement here. that is $39,000 to $42,000 off of the ugliness of yesterday. you get lucky on "bloomberg surveillance" when you have a changing of the guard at j.p. morgan and morgan stanley to

have robert albertson join you, piper sandler chief strategist. he writes the best chart on the street. we are thrilled that robert albertson, student of global and american wall street, could join us this morning. all of these banks, the institutions you've followed for decades, are in search of a strategy. there's going to be lots of strategy analysis, focus groups within the bank with all of this new talent, to get out to a new financial strategy for the next five years. what is that strategy going to be? robert: technology, finding ways to maximize the use of technology for all manner of reasons. customer satisfaction, earnings, bottom-line, things like that. no matter where they come from, they are all going to get their feet wet in technology.

tom: tell us your weighting of the typical fixed income executive versus the wealth management executive, versus someone in consumer banking that is front and center on technology. which shop is advantaged by those three different kinds of executives? robert: i would say all of them are. the one that is more obvious is consumer banking because it deals in the retail sector with a variety of ways of making things efficient without having to have a branch. but you see technology coming out now in the trading area that wasn't there before. certainly in the wealth management area that wasn't there before. even small and medium-sized business. all of the pieces now are getting technological injections, if you will. i think the even smaller banks are going down the same path. lisa: there's a question of

whether you invest in technology or up choir -- or acquire technologies, companies that are on the vanguard of the advancements in technology. what do you expect to be the dominant ways certain businesses try to get into technologies they are not in currently? robert: to get into technology and install it. that's the answer. there are plenty of neo-banks and purely fintech banks that will be successful, but i think the fight is going to be on just getting the technology in place, particularly for the larger banks so they can compete, so i guess what i am telling you is the basic things will live another day -- the basic banking sector will live another day. lisa: which of the banks is most behind when it comes to the technological advancements in finance? robert: i'm not allowed to talk about individual banks. lisa: you can just say what it rhymes with. [laughter]

i guess, would you say that most of them are pretty well adapted? robert: certainly the larger banks are well adapted. as you look down the scale, the places where you see trouble in my mind are banks operating on very old core legacy systems, and they are very costly because they break down all the time. that is the only obvious danger. tom: i've noticed, and just a joy to have you on as we see these two banks restructure, everybody is restructuring in asia. it is all centered around wealth management. obviously, morgan stanley focused on that with their success. the cycle is we are cutting, and a year later we are expanding, and we are cutting, and we are expanding. the cyclical action in asia that we see among the american banks, is that constructive? robert: i think it is so far more disjointed up until now.

i think it is one of the places in the world where you have to be consistently the longest to be successful, it has to be asia. those who come and go or are revving up and then backing off are probably creating problems for themselves. lisa: how much are you paying attention to the hearings in washington, d.c. next week, where the ceos go before congress? robert: obviously i will be watching for the tone. the one thing i would hope for from the biden adminstration and the appointees he's made so far is that we stop anymore war on the banks. they have performed very well. they have enormous capital. there are a really acclaimed bunch. so i hope it doesn't break down and do another one of these tar and feather games as sometimes happens when banks go to washington and sit in front of congress. jonathan: it's politics.

got to expect it, haven't you? robert albertson, piper sandler chief financials strategist. we are down seven on the s&p, down about 0.2%. in six minutes, jobless data and america, and the claims data we are expecting to see is a better picture, relatively speaking. looking for 450,000, down from 473,000. the team at bloomberg writing a nice piece this morning on the 20 plus republican states that have removed emergency unemployment benefits. the unemployment insurance, the additional unemployment insurance offered by the relief package that has been passed recently. we are about to see whether that helps alleviate that gap between demand and supply. it is a real-world test that is going to play out in america in the next couple of months. tom: i don't know if we are going to see it in the next six minutes, but clearly everybody is going to be watching that. and i want to state this, there's been a lot of good work

on this by the university of chicago, and they show state-by-state there are huge discrepancies. jonathan: the reason i break this is because we will break the economic data and then have a conversation with the senator from montana, and look at where this started. tom: absolutely. he's living out there in a state with very low unemployment, and there are serious constraints here in manufacturing, and frankly in agriculture. jonathan: 8.1 2 million, the job openings in america. a lot of open jobs. lisa: the idea is there are different costs of living in different states. the cost of living in montana is very different from the cost of tom keene's manhattan. the idea is people are earning more from the unemployment benefit. i am wondering at what point companies will respond first. you are seeing them offer more money. you are seeing some offer money just to show up to an interview. jonathan: it is a dangerous game to pick one reason to say why there is that demand-supply cap

right now. there are man-supply cap -- demand-supply gap in this economy. we will get those in just a moment. on radio, on tv, with jon, lisa, and tom, this is bloomberg. ♪

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jonathan: from new york city for our audience worldwide, good morning to you all. alongside tom keene and lisa abramowicz, i'm jonathan ferro. jobless claims data just seconds away. down about one third of 1% on the s&p 500. in the bond market yields in about one basis point. euro-dollar positive. euro-dollar 1.2204. here are the numbers. the right kind of downside surprised. 444,000 is the number four stop 473,000 number was the previous number. the survey 41.5. that is the wrong kind of downside surprise on the philly fed business outlook. the previous number 50.2.

tom: jobless claims coming it a little bit, 444,000. besting the median estimate of 450,000 but we can say that is basically in line. equity features have been erasing the losses of the morning. down more than .1%. in the bond market, yields in a couple of basis points to 1.65. tom: a mixed idea with claims doing better than expected. philadelphia fed a little bit lighter. i will call it a turn searching for more data. jonathan: the philly fed business outlook, does that that get your attention? lisa: it does. i'm wondering how high cost seem to be stymieing some of the outlooks by factories that are meeting incredible demand. i wonder how much that could slow growth or put sand in the kinks of the recovery. jonathan: getting revisions to the previous month.

478,000 revised. the numbers decent compared to what we are expecting from the previous month. continuing claims with a kick higher. lisa: i do not get this. jonathan: a lot of people are struggling with claims. claims has been the head fake for people plugging it the payrolls estimate. lisa: that is the reason why a put it asterisk around it every time we talk about this. we have lower-than-expected jobless claims but higher-than-expected continuing claims. how do you make sense of this? it is viewed as a very noisy data point and that is why was interested in what the philly fed data was. jonathan: claims coming in better-than-expected. the philly fed business outlook much softer than anticipated. the story is 8.20 one million jobs available in the united states right now. we have this demand supply gap

we need to try to match. tom: the geography of it as well. we are focused on our world headquarters, what the east coast is doing, like the philadelphia fed business. there is another america that is a boom america. we talk to senators, congressmen. sometimes manufactured. steve daines of montana is the real deal. a chemical engineer from montana state university. the senator joins us this morning. senator daines, montana works. what are you going to do with the 3.80% unemployment rate? sen. daines: a big shout out to our new governor of montana who has been a friend of mine for 20 years. we are in business together. greg understands how you make economies work and create jobs. montana was the first state that

eliminated the $300 week supplemental federal unemployment insurance benefit. take a look at the state benefits from the federal benefits. about $17 an hour to stay home. this is not about folks being lazy, this is about logic. you look at what you make it work by staying at home. greg stepped out and said no more of that. 20 states have now followed montana's lead. what we have is primarily a labor crisis, not a job crisis, as evidenced by the one million jobs available. tom: you go down to bozeman and that is where you will learn what is going on. what is the anecdotal evidence you or the governor see right now in montana after this decision was made? it clicks in june 27. what have you observed with this policy action? sen. daines: you're talking about the western cafe, i'm getting homesick.

you go up and down the main streets around montana, you will hear a couple of things. now hiring everywhere. my wife and i were in my pickup driving by a small business in montana. there were balloons all around the business. there was a tent set up. it was a hiring promotion. they were trying to find people to work. we have had a business in helena that has seen one to two applicants every few weeks prior to the governor's actions of suspending the federal additional benefits. after that happened, they saw 60 applications in the first 72 hours. it is early in anecdotal, but we will people i on that. going in the right direction. creating incentives. jonathan: you clearly believe this is the right policy for the state of montana. do think that applies to the rest of the country? sen. daines: governors will make that decision, but anytime you are paying people more to stay home then go to work, that is a

problem. it is a suburban versus rural situation as well. in the states there may be differing incentive issues going on. again it comes back to common sense. we have a generous benefit that we needed for a time when we hit the crisis last year. it was the right thing to do. you cannot keep paying people more for staying home that going to work. jonathan: people find this an intuitive argument. what you make of the argument that because children have not been able to go back to school, that has held back participation? sen. daines: i think that is a fair point. there is not just one thing we need to do to get the focus back on the job. the chapter issue is what is so important. we get the schools to open up and kids back in the classroom. parents want kids back in the classroom. they want mom and dad to get back on the job. lisa: when i think of montana, i think of the cbc in the 1930's

which helped shape yellowstone national park, one of the key places that represent america's natural history. i wonder from your perspective whether you are becoming more open to the idea of something akin to that, some sort of work program or infrastructure spending that goes beyond fixing certain bridges and tunnels at this point, given where we are in the economic cycle. jonathan: i have -- sen. daines: i have chaired the national park subcommittee for the last couple of congress as. i am a big fan of our national parks. we spent a big time with her family in the wilderness area of our national parks. we passed the great america outdoors at under president trump with a strong bipartisan vote that was targeting the infrastructure for our national parks as well as the land and water conservation fund. we have a down payment on infrastructure badly needed to

restore the frayed edges of our national parks. stepping back on the infrastructure question, we need to define what infrastructure is. it is roads, highways, bridges, waterways, broadband, airports, wastewater systems. there is room for a bipartisan compromise. not some of the social programs, free community college, that the bided program is saying is part of infrastructure. lisa: we have heard a headline number $800 billion. sen. daines: i think there is a range, and the $500 billion to $800 billion range that is still a huge amount of money. i think we have been desensitized as we've been talking about these billion dollar numbers of last year-and-a-half. these are massive amounts of spending. we have concerns about what inflationary impact that might have on the economy to our long-term detriment. we want to be measured but

address the issue that infrastructure is an investment in america. more investing than spending, we will get a return on that investment. tom: you've been a supporter of president trump and much of his policy. you need to look forward to 2022 and 2024. i want you to find common ground with retiring senator from ohio, rob portman. is there a place for a diverse future republican party or is it going to be the party of trump? sen. daines: there is absolutely a diverse party. rob portman is a good friend of mine. i was a procter & gamble guy for 13 years. rob used to working ranches during the summer in montana. rob and i go back a long ways. there is room for a big tent. at the end of the day, politics is about addition, not subtraction. we are stronger when we have those diverse views. tom: i think this is critical.

what would you like to see from the former president to bring a more diverse republican party together versus his 909 page statement to attorneys in new york yesterday? what does president trump need to do now? sen. daines: if you think about what happened over the course of the last several years, the president brought so many blue-collar workers into the republican party that were not necessarily political. they do not care if there is an r or d behind the name. bringing jobs back to the united states. expand the party with cuban-americans and hispanics. you saw strong numbers, part of the unrolled stories is the inroads with minority that was made with -- led by president trump. i understand some folks do not like the tweets and other things. look at what is going on with the economy.

joe biden cancel the keystone pipeline. at the same time he has greenlight the nord stream 2 pipeline and helped russia. this is a problem for many voters. will they have remorse or will they decide -- will they have some remorse when they decided to vote on president biden in 2020. jonathan: bringing europe along for the ride for the pollen -- for the foreign policy goals has been difficult with nord stream 2 as you mentioned. your priorities, how are they set up with regards to that? sen. daines: the europeans are credibly important allies, economic allies as well as national defense. think about what is going on. the united states is importing more oil from russia than saudi arabia. the keystone pipeline oil would more than replace the russian oil we are importing. why president biden would kill

that project while at the same time green lighting the nord stream 2 pipeline, lifting those sanctions to create greater dependencies for germany and europe on russian natural gas. who is cheering right now? it is the kremlin. that is a real problem with short-term and long-term political implications. jonathan: i'm sure we would love to get you back soon. let's find some time the next couple of weeks. the senator from montana, senator steve daines. coming up on "the open," matthew hornbach on this bond market and talking about talking about it at the federal reserve. from new york, this is bloomberg.

ritika: with the first word news, i'm ritika gupta. the price of oil fell after iran's president said world powers have agreed to lift economic sanctions. negotiators are trying to revive that trouble nuclear deal from 2015. they have taken a major step and a main agreement has been reached. iran is preparing its oil fields so it can ramp up exports if sanctions are eased. billionaire barry dillon's little island opens tomorrow in manhattan. the 2.4 acre park is a platform of grass, trees, and pathways. an amphitheater seats almost 700 people. throughout the little island will hold various concerts and festivals. dillon picked up most of the island through his family foundation. 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. ♪

tom: "bloomberg surveillance."

lisa abramowicz and tom keene. jonathan ferro preparing for the arduous task of the open. rumor is bitcoin will move. frankly francine -- excuse me, i had francine on the brain because francine got a lovely dog. lisa, when i look at bitcoin, it has moved 30,000 to 42,000. lisa: that is impressive. it is also impressive how you can toggle between france eads dog and bitcoin -- between francine's dog and bitcoin. how can this asset move so much, 30% in a day? tom: we will get to that but we will rip up the script and get to that with troy gayeski. i will give you a window into wealth management. troy, wealth management is razor thin bond margins, almost razor thin equity margin, and

everybody is dashing around looking for what used to be called a 6% business. a 6% business is some set of transactions where you actually make real money like the old days and that works around alternative investments in wealth management. troy, you deal directly with morgan stanley and wealth management. what does it mean to your world to see andy saperstein received the accolade he has received today? troy: it is tremendous. morgan stanley is our largest client. we think the world of the team. it is so rewarding to see the strategic position gorman made to focus on wealth management and watch them grow into the powerhouse they are today. we are super happy for andy and his team. tom: you love him, you are happy with him. we do not care. [laughter] is a 6% business going to be

there for mr. saperstein and the minions that replace him? over 20 years there has been a search for that kind of beginning margin. will it evaporate in the next five years due to competition? troy: in terms of asset returns, which is the principal driver of revenue. when you think about the wealth management business it feeds off of assets and you grow assets two ways. through returns or raising capital. we know bond yields have come up a bit, but are still near generational lows. every asset allocation model has lower expected returns going forward, which is one of the reasons those platforms focus on alternatives. we are biased towards those like ourselves, but also structured credit or areas in illiquid fixed income and even alternatives like bitcoin. the wealth management business is always evolving.

it is never easy. the tailwind from hyperloop's monetary policy will fade over the next several years. it will be much more of a grind to generate the 6% return. lisa: you said you had built a bitcoin portfolio that grew to 13%. then we saw these wild gyrations over the past week. have you changed your view in any way on the crypto asset? troy: this is why it is so critical for every investor in whatever asset class you take risk in to have a thoughtful investment thesis. thoughtful investment theses can go wrong. let's look at the macro environment. we are still growing money supply at 60% annualized. more than 30% money supply versus pre-pandemic. we do not agree the dollar will debase into the atlantic or pacific ocean, but over time one of the key ways to get out of

debt traps is to inflate your way out of it. for the fed there's been more acid inflation than real economic inflation. the macro environment is favorable. we are still early in the cycle period compared to the last cycle. unless the having cycle becomes meaningless, it is very unlikely this is a shorter bull market than the last one. third, think about the adoption cycle. the last bull market there were no institutions, no hedge funds, no sovereign wealth funds or corporate treasurers looking to allocate to the states. even yesterday, what came out? wells fargo, which is more of a bank in less of a broker-dealer, they will be offering a product to their client. when we look at the three legs to that thesis, they are still whole. instead of getting a 20% to 30% pullback, we headed north of 50% pullback, which is an eye-popping amount of

volatility. it is almost as if elon musk never got involved. lisa: hold on, and stick with that. this is part of the issue. elon musk tweets and there is a market response, there is a regular a push in china that was not new. there is a market response. have you changed your allocation at all based on the volatility that stems from these idiosyncratic tweets and guidance? troy: we still think -- it is unfortunate one person to have so much control over one market. we concur with that criticism. when you think of the three keys of the thesis, they are still very much in play. it is our best performing allocation so far this year, even after 830% to 40% dislocation. the key is whatever size and cost you are comfortable with, let the bull market play out, tolerate the volatility, and have confidence that by the end

of the year you will be at a meaningful higher price, and keep reevaluating versus the macro, versus the having cycle, versus the adoption cycle. all of point to greenlight go. tom: troy gayeski, thank you so much. lisa: thanks so much. tom: i looked at the claim start. it is truly elegant. trend based to a better statistic. the fact is it is a gorgeous chart towards a better job economy. lisa: we are in a recovery. certainly with the vaccination rates in the united states it is hard to see how that can be disrupted, at least as we move out of a pandemic, as we moved to the post-pandemic reality of covid-19 being treated like the flu. i wonder about these job openings. the fact you are still seeing such elevated jobless claims, people who are filing a new for jobless benefits at a time when

you do have all the openings, anecdotal evidence segment cannot get candidates in raises some eyebrows. tom: you go back to a fully employed america, some predicting that. how many people will be unemployed even if we get to a fully employed america? lisa: and there is a question of how much the economy has transformed during this time to a more technological economy? different skills. tom: really interesting observation is the permanence we see. i would say in a broad technology, it is not just the obvious amazon and cardboard boxes. you are right. we do not know the structural changes. lisa: you are seeing companies retraining workers on the front lines into technological roles. are you taking coding classes? tom: i am learning python. [laughter]

speaking of technological changes, and electric vehicle ford f 100? james farley will explain, the ford motor ceo. a conversation with david westin. stay with us on bloomberg radio and bloomberg television. good morning. ♪

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michael: -- david: we are

waiting for jim farley's announcement of his new all electric f-150. we want to get a check on the markets with abigail doolittle. markets have had a rough time. abigail: it has been a rough week, indeed. right now it feels like a calm after the storm. the futures for the major indexes in the united states basically flat. the nasdaq 100 futures up a little bit more. that is interesting because we have yields down. when yields go down that helps out the tech stocks because it takes away the valuation pressure. that relationship is acting in sync. over the last is q. week so we have had the nasdaq 100 pummeled get over the last two weeks we have had the nasdaq -- over the last two weeks we've had the nasdaq 100 pummeled, nominal yields have stayed stuck but the inflation has been commodities. it has gone up and then more recently we have seen the commodities go round trip, whether it is copper, lumber, oil. it will be a market to watch to