>> the market is not necessarily 100% comfortable with the fed's ability to do everything that it says. >> we've already had a bit of a melt up in the first half of the year, so we don't necessarily see another melt up happening. >> the idea of transitory is a debate we will be having consistently until october. >> even if we get some decent cpi prints, i don't think that will be enough to force the fed's hand into tightening any time before 2024. >> you cannot really push the story of inflation we are seeing and then have a rate hike as soon as 2022. >> 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 futures up 12 on the s&p,

advancing 0.3%. it's what is not happening in the bond market tickets your attention. yields are falling over the last 24 hours. up a little bit today. tom: monday was sort of a snooze fest, but there's some real nuance within the data when you look at equities, bonds, currencies, commodities. i really don't know where to start, other than that all the experts have been wrong. jonathan: a conversation about tapering at some point in the next meetings. tom: i'm reading people looking for a measured yield or a measured end even lower yield. people like stephen major at hsbc, david rosenberg up in toronto. they are not screaming higher yields, saying 1960's or even some kind of elevated inflation. they say this is transitory. tom:tom: let's talk about this pain trade. what would be the maximum amount

of pain on the least amount of people? lisa: more and more people are saying yields lower because they are expecting inflation to pick up. they are expecting the fed to move away from easy money policies. if we do get a move lower in yields, what does that do in terms of growth expectations that fuel the incredible russian to risk assets -- incredible rush into risk assets? jonathan: the s&p 500 advancing about 0.3%. the nasdaq 100 up 44, advancing about 0.3%. in the fx market, the euro slightly negative, down about 0.4%, euro-dollar $1.2239. lisa: we talked about that two-year auction. it was actually incredibly strong. today, ceos headed to the senate to testify about how they were

the stalwart post-pandemic. how much are they pressured by senators about the fact that they haven't lent out a lot of cash we continue to see built on their balance sheets? 1:30 p.m., the federal reserve offering overnight repo operations. we have seen the take-up dramatically picking up. this sounds really geeky. however, basically what this means is banks have so much cash , they are dramatically looking for ways to park it and earn some sort of income with the federal reserve anyway that usually is not seen without some sort of financial market disruption, raising questions about the ongoing consequences of so much money in people's savings accounts. at 2:00 p.m., gary gensler testifying in front of the house financial services and government committees. the question is on bitcoin. how much is the sec going to come out in crypto assets and try to crack down or have oversight as volatility continues to pick up?

i don't know how much it is imminent, but the pressure is rising. jonathan: thank you. if you are just tuning in, in the previous hour i actually quoted the dow. tom, i will afford you some time to quote the dow this morning. tom: i think it gives us a great historical perspective. jonathan: sometimes. [laughter] tom: i really think going over 125 years of the dow, dow jones, "the wall street journal" don't own it anymore, but the good of the change of amazon. will amazon split so they can enter the dow? that is a huge debate now among those in the know. but seriously, there were not one, but two seven your periods where the dow didn't change its makeup. jonathan: the conversation i have another phone daily, will amazon split to get into the dow jones. tom: why do you say the dow doesn't matter? jonathan: i'm joking. lisa: that's sarcasm.

[laughter] jonathan: steve shive around -- steve sharon -- steve chiat around -- steve chiavarone joins now, federated hermes portfolio manager. you can speak for me, maybe not tk. steve: the problem is now i know i have a more difficult interview coming up with tom. [laughter] jonathan: the market cap waited with a heavy tilt give you more of a cyclical waiting. how difficult is it to look at things differently this year? steve: i think it is really important because if you are trying to be the benchmark or outperform the market, tech has been terrible. that was the call we made last fall, where we went over weight cyclicals. i just think you are in a scenario where you've got

consumers sitting on $3 trillion in extra savings. banks can't lend the effort out because people need to borrow. your just flush with cash. i think we haven't really even seen all of the reopening. if you look at some of the metrics, restaurants haven't come back full force. new york and california, very large states. just now starting to come back online in a bigger way. i think the cyclical trade has some room to go here. tom: what is so important here, i will allude back to the dow jones industrial average, is it is an important index. studebaker went down in flames, part of the dow. it was a buy-and-hold for grandpa keene, and in the 1960's it blew up. what is a studebaker in 2021? steve: that is a tough question. i think what you're getting

towards is what is the blue-chip that blows up, and i don't think you have a blowup story among the big tech companies. those of the blue-chip companies that we are looking at today. to underperform doesn't mean that there is a wreck. i think that is the story here. you guys were just talking about rates and asking what is the pain trade. think the pain trade is lower rates and long tech on that same trade. because as i look out in our scenario, we think either we are dealing with nice growth period that doesn't yield hyperinflation, probably our base case, or a high-growth public that does yield inflation upside. in both of those cases, i want to be overweight value, overweight cyclicals, underweight bonds, but that 10% probability that may be growth has peaked, maybe we start to slow down not to 5% growth, but below trend growth, that is an environment where you don't hate bonds and you really want to be back in the tech names because

they are creating their own growth. that to me is the pain trade, and it is the one i am a little bit worried about if it comes to fruition. i know i didn't directly answer your question because i don't know. [laughter] lisa: i think you directly addressed the question we had yesterday, causation versus correlation, which will also get tom very heated. do you think lower yields is causing more money to go into tech, or do you think it is just a correlation in terms of their earnings potential, regardless of the economic cycle? steve: i think there's a tight link that has to do with equity duration. a growth stock has a high duration. you are giving them money to reinvest so you can get cash flows in the future. it's essentially a zero coupon bond. you are dealing with a cyclical company, you're getting a payment periodically, so you can think about that as a coupon paying bond. that has a lower duration. you're getting your money back faster. in a rising rate environment,

you want to own shorter duration assets and not like longer duration assets. the same thing happens on the fixed income side. that is the linkage between the 10 year yield and what is going on with the gross value trade -- the growth value trade. jonathan: sticking with this cyclical trade, how do you do that when people cummins show and say we are going back to gdp growth in the next couple of years -- people come on this show and say we are going back to gdp growth in the next couple of years? steve: you disagree. i think the fed is broadly right that you have "transitory" inflation and a return to trend growth coming. we just think that that inflation is not quite as transitory. with get bleeds into next year. likewise, that growth will get back to trend, but it is going to take a bit longer than we think, and the primary reasons are you have all of that pent-up savings that's going to tickle while to get spent, and

producers of goods are not going to get fooled this time by overproducing, so even in the face of higher prices, i think producers are going to be very disciplined about how much they produce, and it is going to keep a little more upward pressure on price for a longer time. i don't disagree we are going back to trend. i just think it will take us quite a while longer to get there. jonathan: good to catch up as always. your equity market up 0.3 percent. the best read for me so far this week, savino subramanian of bank of america saying -- savita subramanian of bank of america saying the economy is 30% less productive than the 1980's. tom: it goes down to relativity, which has been beaten up. it is a three ratio dynamic, but the technological advancement in the shift from labor-intensive

manufacturing over to what we know at the computer is profound. jonathan: these big names with massive market cap that dominated index like the s&p 500 with very few employees relative to the companies of old. lisa: it is the reason they have become the stalwarts of the entire equity market, you could argue worldwide. however, you do wonder what kind of impact it would have if we saw some of these suits, for example on amazon, the antitrust suit that came out yesterday, what it could do economically. right now, not really moving shares at all. tom: i think procter & gamble, and it gives you perspective looking at the dow jones industrial average with procter & gamble. that is 99,000 employees. you compare that, you can do this under the des symbol on the bloomberg. as you mentioned, facebook with 61,000 employees. jonathan: and a market cap of about $930 billion.

you were fantastic. this debate, lisa, has been going on for a long time, and i imagine it is going to be going on for years still to come. tom: decades. jonathan: well after you and i are long gone, tom. lisa: when is, gone going to split? jonathan: i'm not going to comment because i imagine at some point they will, and i will not hear the end of it. greg boutle coming up of bnp paribas. this is bloomberg. ♪ ritika: with the first word news, i'm ritika gupta. the european union is aiming to hit belarus with a new round of european sanctions by june. bloomberg has learned the strictest measures could target a soil nutrient used to improve crops. it has already sanctioned seven entities and eight individuals. secretary of state and any bling

can is in egypt on the next leg of a diplomatic mission aimed at shoring up a cease fire -- antony blinken is in egypt on the next leg of a diplomat mission aimed at shoring up a cease fire in gaza. in india, more than 2 million people have fled their homes is a powerful cyclones hammers the east coast, packing winds of up to 96 miles per hour, and it may push sea levels 10 feet above regular levels. it comes as the country battles the world's worst outbreak of covid-19. one of japan's most influential newspapers is calling for the event to be canceled. it says it would be unforgivable to go forward with the summer games and risks the further spread of covid-19. it is the latest blow for the limbic's, which are scheduled to start july 20 asked the

olympics, which are scheduled -- the olympics, which are scheduled to start july 23. 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. this is bloomberg. ♪

♪ >> my view and the general fed view that these pressures are

most likely to be transitory. if we are wrong, and we could be wrong, i think we have the tools to address inflation. jonathan: that was randal quarles, the federal vice chair for supervision. if senator warren has her way, his time will be short-lived at the federal reserve. good morning. alongside tom keene and lisa abramowicz, i'm jonathan ferro. equity futures up 14. we advance about 0.3% on the s&p, just short of 4200. yields higher by almost a basis point to 1.5665 percent after heading south in yesterday's session, even with the suggestion we could be inching towards a conversation about tapering. euro-dollar a bit weaker, down about zero point and percent -- about 0.1%. euro-dollar, $1.2230. tom: memorial day is upon us, and we need to look at the reality of washington, d.c. the high today will be 91 degrees fahrenheit for our

foreign audience -- fahrenheit. for our foreign audience, we translate the fahrenheit here. we are international. we go to four digits for jon ferro. mario parker joins us out of the white house this morning. it is real simple. you can look over from where you are to where john hey was near the hay adams hotel. mr. hey could escape to new hampshire -- mr. hay could escape to new hampshire when it was this hot. how did they escape this infrastructure bill? mario: there's really no escape these days. it is front and center here in washington, d.c. republicans and democrats are both engaged which is a positive

sign of bipartisanship in an otherwise gridlocked d.c. that we have seen the last couple of years. jonathan: are we going to get -- tom: are we going to get anything done in june? do we get action the summer? mario: well, senator roger wicker from mississippi is slated to, with other republicans, give the latest counterproposal to joe biden's plan tomorrow. the white house and republicans alike have indicated that this week is a crucial one, so depending on what we see come out of the counterproposal tomorrow, they may request a meeting with president biden. chuck schumer has said the democrats are prepared to do some than one way or the other, by july at least. lisa: give me a sense of this 1.1 trillion dollar plan they are planning to deliver as early

as tomorrow to president biden. what is in it? mario: not quite clear yet what is in it. it has been closely held to the best by republicans -- to the vest by republicans. the number that is surprising is they are prepared to meet him at that $1 trillion figure. the president, we know his proposal last friday, by dialing back some spending on bridges, roads and broadband, and said he was open to putting some of the other spending in separate bills, so we would assume the republican counterproposal would be along those lines as well. lisa: is it going to be filled with earmarks and pork, or is this something in good faith on all sides? mario: by all indications, it does appear to be at this point good faith negotiations. the fact that the republicans are engaged, particularly after a bit of a speedbump last week, tend of shows that both sides

are engaged in good faith efforts here. tom: what is the role of ron klain in this? he is advising the president. he's the traffic cop, if you will, into the president. what does ron klain do to get this started and get this done? mario: one thing ron klain has done and president biden has done is continue to have the oval office with an open door. . there was a little bit of sniping earlier this week. there was some action on whether president biden was the one who signed off on that counterproposal last week. the white house maintains it was him. republicans kind of insinuated that it got a new way of negotiations. but the positive sign is that both sides are continuing to engage. jonathan: some hearings a little later with the big ceos on wall

street. what are you looking for? mario: what you guys have been having front and center today, inflation. the white house yesterday, jen psaki said that is something they are concerned about with housing prices, affordability, etc. so let's see how that comes up in some of these hearings. jonathan: a little bit later on, we will hear from the ceos of wall street's biggest banks on capitol hill. tom: they are going to do this thing. they are going to line up, do the testimony thing in the air. we take some photos, and then what? it's totally practical -- totally predictable. lisa: well, hold on a second. there could be something interesting said. potentially it could be theater if some of the senators drill down into what mario was talking about, inflationary dynamics. what they are seeing in credit card spending, what they are

seeing on the margins with respect to low demand. i am just saying theoretically, these are some of the questions that i think people in the markets want to know as well. tom: through hours and hours of -- jonathan: through hours and hours of testimony, there's likely to be something more interesting. but it is often the same story. it is the soap opera, the video clip you sent to your constituents. tom: it is going to be you guys make millions of dollars and the evil city of new york. what are you going to do for main street? both sides of the aisle. jonathan: and they will say they have been doing a lot over the last year. tom: i'm sure they will. jonathan: here's the real test. will we talk about it tomorrow morning? lisa: i think there will be some things within it, i do think that there will be. particularly with respect to spending. consumer spending and loan demand, i expect they will come to washington, d.c. with some projections of when they expect loan demand to pick up. they will be answering those questions, and some of those answers could be interesting.

tom: we are going to see a headline, senator ferro says jamie dimon is crackers. [laughter] jonathan: can i become a senator? i can become a governor, right? lisa: i believe so. jonathan: but i can't become the president. lisa: are you thinking of it? jonathan: if you've watched "succession," when the older brother talks about licking around to become the president, and -- about making a run to become the president, and he turned around to them and say, you've never had a job. tom keene would be a good president. you should run. senator from new york. lisa: he's just sitting there. jonathan: i have no idea if that would align with your politics. you've been very careful about covering that up. tom: like that day when brexit blew up. [laughter] jonathan: did i reveal my politics? lisa: look at those markets. [laughter] tom: what are they doing in

london? jonathan: equities, 4200 on the s&p, up 17. we advance 0.4%. yields up about zero point -- about have a basis point. this is bloomberg. ♪ ♪

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♪ jonathan: live from new york city, for our audience worldwide, on tv and radio, this is "bloomberg surveillance." up about 15 points on the s&p, through 4200 again. on the nasdaq, we advance about 0.5%. on the bond market, twos, tens and 30's, yields this morning up about half a basis point. your 10 year is 1.5638%. yields were lower yesterday, even with this conversation edging towards tapering at some point. just keep a note of the following stats because i thing it is really interesting. something has subramanian at bank of america savita subramanian -- savita subramanian over at bank of

america, how labor-intensive the s&p 500 is now, we have gone per $1 million of revenue from eight employees down to 2.3. so for every one point -- so for every $1 million of revenue, and has gone down to 2.3 since 1986. that is a big decline. tom: it is a huge overlay to the markets. we are making jokes about the dow and all of that, but the historical impact of an employee-less service sector can't be underestimated. it is a huge theme not only of the last one year, five years, the last 30 years. jonathan: the s&p 500 part of that. i just get the s&p in there, just for you. slightly weaker euro, but the real currency pair to watch at the moment is not euro-dollar. it is dollar-china, starting to see dollar strength continue.

the strongest in about three years on dollar-yuan. tom: we have a joy today on this day of 100 when he five years of the dow jones nest -- of 125 years of the dow jones industrial average. dave wilson is a bloomberg contributor, but what you don't know, he invented the equity coverage at bloomberg news, and we are thrilled david could join us today. and someone says dow jones theory or dow theory, what is that? dave: basically, the idea that if a market's really rising, then the dow jones transportation average has to be setting new highs along with the dow industrials. this goes back to win the averages were much purer than they are now in terms of industries, so if companies are making more stuff, the railroads and other transportation companies need to be taking it places. tom: we are not going to go

ritual gristle -- go richard russell here from another time and place. two jon's valid point, are they fossils from another time? dave: they are representative of their industries. there are a lot of other indexes that cover the same ground now arguably, but because of the tradition, because of the history, you get something with the dow averages that you don't necessarily get with the other indicators. tom: do you think royal caribbean will be a dow component in the next couple of years? dave: i don't know about that, but we are getting closer to restarting not just cruises to alaska. that has been the focus of the industry the last few days. the story today is that royal caribbean has received clearance from the centers for disease control and prevention to run test cruises of a ship called freedom of the seas from the port of miami. that is sort of a first step to being able to restart cruises

from miami as opposed to just from seattle to alaska, which is really what the industry has been talking about for the last few days. we've got a company that is big in internet-based security software, and their market value is about the same as royal caribbean, as it turns out. the fiscal third quarter results beating analyst average estimates in a bloomberg survey, and they raised their fourth quarter earnings and sales forecast as a result. this company has made a history of being well above rejections, and the kind of cap that going last quarter. i've got one more for you. nordstrom is down in early trading. they had results out late yesterday, fiscal first quarter a lot wider than analysts were expecting. the number is still disappointing. sales were up 44% from a year ago, down 13% from two years ago , which in many cases had become the benchmark in terms of the recovery of companies from the

pandemic. tom: very good. thank you so much. right now, jon was looking forward to kathy jones of schwab joining us today. work from home, we've got to understand right now that it is two trophy taking into pandemic -- trophy taking end of pandemic pianos. all you need to know is ms. jone s is fabulous on piano. is it a steinway you've got behind you? kathy: it is, a 1913 steinway. tom: that can take us back to the dow jones industrial average and where it was 125 years ago. explain why yields are lower. kathy: i think a couple of things. we have seen some of the commodity prices come off the boil recently. we have seen some of the indicators that were just skyrocketing start to roll over

a little bit. the market has moved up over 100 basis point from the lows of last summer, so i think this is a consolidation. frankly, the talk about tapering can be interpreted as bullish for bonds. if you think back to 2014, everybody remembers the taper tantrum when yields shot up on talking about qe ending, but when qe actually ended, yields fell. if you look at it as the first step towards tightening, it isn't surprising to me that yields come off a little bit. jonathan: can you imagine a scenario where this continues, where the removal of qe will lead to lower yields? kathy: no, i think we put qe aside, frankly. at the margins, it will allow yields to rise, but the more important driver is where is housing going, where is inflation going. the big difference between now and after the financial crisis is we have huge fiscal stimulus,

and we didn't have that the last time around. we have been much quicker to bounce back and close that output cap. i do think these will move higher from here, but i don't think we have much more qe or anything else other than the economy and inflation expectations continuing to run pretty strong. jonathan: we have a breakdown of any given yield right now you look at inflation expectations, real yield. is it real yields that need to adjust more? what kind of adjustment are you anticipating? kathy: that is the conundrum right now. i'm not really sure why real yields are as low as they are. partly, i think inflation expectations have run up pretty rapidly in anticipation of more inflation. i do think real yields have to come back. that is one reason we expect yields to go back up on the 10-year to do .5% intentionally. i think real yields have to adjust if we are going to have real growth in the economy which is what we have. lisa: how high can benchmark

treasury yields go before creating this feedback loop to send people back to safe havens? kathy: great question. i am not 100% sure that i have the right answer to that, but i think what we would probably need to see is not only to see 2.5% on the 10 year, but to see the value of the curve move more. you start to get the three year, five year, etc. moving up, than the overall cost of capital starts to go higher because the refinancing that is taking a place five years out on the curve starts to get more sensitive. lisa: are you going more into riskier credit with the expectation that the fed will backstop markets enough to allow these credits to continue to pay out bigger coupons, giving you the returns regardless of deteriorating credit quality should that happen? kathy: no, it is a conundrum in

the high-yield market. you have all the fiscal stimulus , you have pretty easy monetary policy. you have the backstop from the fed which i think is winding its way down, and you have some upgrades in the economy. the problem is high yields are going to price for perfection, particularly ccc's, so we wouldn't be really aggressive in that part of the credit market because i think we will adjust to a greater reality that some of these companies aren't that solid. tom: what will be the market reaction as the real yield migrates to zero? i think schwab has such an expanse of what money flow will do. how will flows in fixed income change as we are shocked by a move to 0% inflation adjusted yield? kathy: well, if i just look at where our investors are, particularly our retail clients,

but even institutional clients, they are hoping for higher yields, and certainly higher real yields to extend the ration. -- extend duration. so i would expect we would start to see more investment flows into longer dated bonds. we haven't seen much of that recently because it is still pretty low, but as yields move up, we see flows in that direction. people are nervous enough about risky assets, and i think that positive real yield will ultimately move in that direction. jonathan: always good to hear from you. thank you. kathy jones, charles schwab chief fixed income strategist. pretty unchanged on the 10 year and 30's. tom: your point, you have been really good about this, the framing of 1.64%, 1.65%. nobody would have thought we

were at a 1.5638%. i know it is a small move, but to me it is stunning, the move that has come in given the zeitgeist. jonathan: not given what we are seeing in the data in the moment, given the year we are about to have in terms of growth. this is the bond market, and when you are thick a give out deceleration later this year, what is the environment going to look like with the bond market? with a 12 month rolling view, what does the next year start to look like as we get deeper into next year, using that 12 month rolling view? lisa: if lindsay p a cap -- if lindsay p esca is right, perhaps people are implying that tapering will lead to lower yields because it could potentially crimp growth in the near-term. all of that has to do with how disruptive some sort of increase in yields in the near term would be. jonathan: that used to be the idea, qe would generate inflation expectations, push people out of the bond market. the movement of qe may be the

opposite. wondering how long that dynamic lasts. tom: push them into the dow jones industrial average. jonathan: david malpass is on next, world bank president. tom: david malpass knows where the dow is. jonathan: up 12 on the s&p, we advanced 0.3%. up about 0.4% on the nasdaq 100. this is bloomberg. ♪ ritika: with the first word news, i'm rick agrippa. more than -- i'm ritika gupta. more than 30 rights groups are pushing for an investigation into a who official. canadian prime minister justin trudeau is beginning to sketch out a plan to reopen the u.s. border, but canadians don't appear keen to rush it, and when

travel resumes, may overwhelmingly agree proof of vaccination should be mandatory. nearly half of respondents in a poll released today said the border should remain closed until at least september. billionaire investor carl icahn says crypto may be here to stay, but he hasn't bought any. in an interview with bloomberg news, icahn also said inflation "already exists, and that will cause a correction." we will hear more at two: 10:00 p.m. wall street time today, live on bloomberg television and radio. during the more than year-long long national lockdown, many americans turned to streaming services for entertainment. consumers turned to netflix, disney+, hbo max, and others in huge numbers. some others like peacock and discovery+ were launched in the middle of it all. a new survey finds people are subscribing to more services than they were a year ago, and

their budgets have gone up, too. global news 24 hours a day, on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i'm ritika gupta. this is bloomberg. ♪

♪ >> this could be a very good summer for the world, for the

way of avoiding taxes and changing the place where you pay the tax, and the way of the tax rates to the bottom has stopped. jonathan: that was the german finance minister olaf scholz speaking to bloomberg. alongside tom keene and lisa abramowicz, i'm jonathan ferro. equity futures up 12 on the s&p, advancing 0.3%. this morning, the nasdaq up 61, a little more than 0.4%. surprise of the last 24 hours, vice chair clarida talking about may be tapering at some point enact couple of months maybe. yields heading lower, up by about half a basis point. euro-dollar around $1.2231. tom: thanks so much. this morning with francine lacqua, we featured one of the great market calls of all time,

david malpass, screaming about the end of deflation in japan. it was one of the truly great calls at the end of the last decade. he is now president of the world bank. you have always been one to say let markets act. the market for manufactured vaccines is out there. is it a legitimate market, or is it held up now by politics as so many nations are desperate for vaccinations? david: they are desperate, and i think it is really important that the countries that have access free up -- have excess free up those excess so they can go to those countries with vaccination programs. we have 50 countries by midyear that are ready with the personnel standing by, ready to put shots in arms if the world

will only let the vaccines flow. so it is not really a market. it is control other various governments in the options they took out. that was good because it got supply going, but now there's a chance to really distribute the supply worldwide. tom: who is your most important phone call to washington or london to get this done? david: i talked with u.s. administration. there's several different parts of the administration. there's the nfc and the hhs, the health and human services department, so i think there's got to be a consensus within the u.s. that there is sufficient supply, and therefore it can be released. i emphasize countries that have programs in place, you saw the new york times article i guess yesterday which described the waste that is going on for some of the distribution outlets. they go to countries that can't use it, and then the vaccines are burned because they've

expired. so we want to avoid that and actually get people vaccinated that have systems in place. i repeat, world bank has 50 programs. we will have nearly $4 billion more ready to pay if someone needs money, and importantly, the money can go to actual deployment within countries so that they can vaccinate, we hope, hundreds of millions of people. lisa: meanwhile, the u.s. has started to release much more vaccine to other nations that are in need recently. how much has the increased distribution from the u.s. and other countries forestalled the emerging markets crisis the world bank has been seeing growing? david: it is important to note what the delivery schedules for those vaccines are, and to know if they are going into countries that are prepared to receive the vaccines and actually deploy

them, put shots in arms. one of the big challenges is that developing countries worldwide is the head is and see -- that is developing in countries worldwide is the hesitancy. one of the things we are doing and client countries is to have a communication effort to encourage people to be vaccinated. it also brings the economies back on stream, so it is important to be vaccinated and to have a program of vaccination in these countries. i don't know where the u.s. supplies are going, and i think i've called for much greater transparency in terms of the supply. the world bank has put up a major website that shows all of our program documents. it takes a lot of preparation for countries to actually show they can vaccinate area so each of the documents is as much is 50 pages describing who will do

the vaccinations, what the system within each country is in order to do it fairly, and how they will be paid, how the costs will be paid for. i encourage others to do that. the transparency is important. lisa: there's a question of which vaccine which countries actually receive, as independent studies show that, for example, chinese vaccines have not been as efficacious as those created by pfizer and moderna. if the world bank placing an emphasis on the type of vaccine, the brand of vaccine received and given to specific countries? or is any vaccine treated equally? david: they need to be who approved were approved by a regulatory agency in the u.s., europe, japan, and there's only a few that have been approved, but one thing i emphasize is most of the vaccines are better than not being vaccinated, so

that is important. initially in our january and february programs, it was mostly pfizer and moderna, and we are still using that, but it is very important that astrazeneca, johnson & johnson, the chinese vaccine even which is now been approved at least initially by the who, are available. importantly, our programs allow different vaccines to be distributed in different parts of the country. rural areas may want to different vaccine than hospitals in major cities. we have described that in our programs. that is a really important part of getting the job done properly. so we are able to accept and use all of those that i mentioned, and there would more -- and there will be more, which is great. we can also receive some pullbacks from the international consortium if it had supply.

that has been one of the challenges. that was discussed in a "new york times" article yesterday. jonathan: we appreciate your time. thank you. david malpass, the world bank president. finishing on china, just to bring up the situation in chinese markets, got to talk about the chinese currency. three year highs for the chinese currency. that is dollar-yuan lower. tom: a chart on twitter front running us. she does that all the time. jonathan: because she's on twitter at 4:00 a.m.. tom: front running us. what is the why here? do we have any intelligent reason why renminbi has been out with strength outfront? jonathan: they are increasingly seemingly comfortable with the direction of travel. lisa: the idea being that a stronger yuan could offset inflationary pressures from commodities, that is one theory postulated i officials that have

since populated that few, so very -- that view, so very mixed signals. stuck between a rock and a hard place right now. coming up, greg boutle of bnp paribas. on radio, on tv, not on the dow, this is bloomberg. ♪

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♪ >> market is not necessarily 100% comfortable with the fed's ability to do everything that it says. >> don't necessarily see another melt up happening. >> the idea of transitory is a debate we will be having consistently until october. >> even if we get some decent cpi prints for the next several months, i don't think that is going to be enough to force the fed's hand if it is tightening any time before 2024.