♪ >> 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.

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 surveillance" with tom keene, jonathan ferro, and lisa abramowicz. tom: good morning, everyone. a simulcast on bloomberg radio, across this nation, and bloomberg television worldwide. an interesting wednesday. a lot of distractions. bankers in washington and that. you know what i see? futures up. jonathan: and yields pretty stable, getting comfortable south of 1.60%. that was the story yesterday, even in the face of a subtle shift from vice chair clarida. tom: there's a lot of really good bloomberg journalism today about the future of the fed, but i don't think we are making enough about the reset on what gdp will do. we get a second look at gdp in the sour. that will be -- in this hour. that will be important. to me, there's a bet that the world is not going to end q3 or q4. jonathan: lindsay piezga an hour

or so on this program looking for 8% gdp growth after the boom we have seen next year into -- this year into next year. that is deceleration back towards trend growth. that is going to raise questions about whether you want to stick with the cyclical trade or move to growth. tom: what it comes down to is the basic idea of a washington with a testimony today of bankers. are they doing politics for a boom economy, or for the 1.8% gdp jon speaks about? lisa: it is a good question, how much guidance we get from bank ceos in terms of whether they do see 1.8% return to average gdp we have seen over the past several decades. my question is, talking about all the cash that banks have, where else is it going to go if it is in into companies paying higher dividends that are actually producing profits, even if potentially at a lower pace? tom: on this 100 25th

anniversary of the dow jones industrial average, i think of gm in the 1920's and dearborn doing so well. look at that headline from ford of a changing american and global economy. ford to boost electrification by an amazon-like $30 billion. jonathan: there are the goals of this company. maybe just talking to each other in 2022. tom: i am going to quote the dow jones industrial average, up 65. the s&p, we look at it occasionally, 4200, up 12.25 points. critically, the fix coming from 21 in to 18.4 poor -- 18.44. jonathan: we going to this interesting transition. we caught up with gabelli funds earlier this morning.

the recovery from expansion, and from there, deceleration. that has got to be the key issue every time we wake-up. what are treasury yields doing? what are they telling you? i don't know. tom: it is the story there because we noticed, leading with that chart on strong renminbi as well, what do you see in ig and high-yield before we get to greg boutle? lisa: if you take a look at the extra yield, it is at a postcrisis low. basically we were looking at the lowest spread since the 2008 meltdown. it raises the question about how much cushion investors are really receiving against potentially higher rates. tom: i'm sorry, it screams 2006. jon, to get to lisa's profound insight on credit spreads tightening, and then you see year-over-year yesterday up solid double digits, i'm sorry, it's 2006. jonathan: you think it is a mid to thousands dynamic, mid 1990's

-- a mid-2000's dynamic, mid 1990's? lisa: i do think there's a level of leverage in the system. you aren't seeing the same type of leverage as you would see. jonathan: did you swap roles this morning? you sounded almost bullish on credit there, lisa. lisa: i'm not bullish. tom: i think that is very important here. . we have to have this banner codified right now. jonathan: "lisa not bullish." [laughter] tom: we take breaking news and exclusive news and mold them together. very important to see that this morning. think of bullish, greg -- speaking of bullish, greg boutle going just, of bnp paribas. are you bullish?

greg: we are, but we are looking for a growing cloud of equity gains. elevations -- valuations are very elevated. for now we think there are a lot of tailwinds. earnings season was chief amongst them. jonathan: growth is peaking. we go through this recovery phase into expansion phase. when you start to make these kind of transitions, how do you make a transition just in terms of capital allocation? greg: one of the things we have been talking about, you touched on this earlier when you mentioned this move potentially should you move from cyclicals into growth. we had this extremely bullish environment for value over the last six months, and rather than give up on that trade, we think it has further to run and jump back into growth. there's a middle ground where maybe we could start to look at value, but at more of a quality

tilt. in the context of your programming this morning, something like the dow probably fits quite well. jonathan: here we go. are you telling me you're talking about how to get allocation exposure to the dow? greg: we have been. in the last 30 years, i thing it is the first time i have talked about it. there's an argument that the dow is a little bit anachronistic in terms of how it is constructed. but when we screen through the global indices and look for the indices that have positive exposure to value, which has very negative exposure to quality, the very negative exposure to value, but something like the dow fits quite nicely in between. it has positive exposure relative to the other indices for quality and value. lisa: i think about the idea that the dow is really pegged to the old economy, and the old economy has gotten a boost from some of the infrastructure

spending, higher commodity costs, and the new bid a headline that ford plans to boost electrification spending by 36% to $30 billion, hoping to really ramp up how much of its fleet really is electric. how much could this bet in the old economy be disrupted i knew economy, new environmental types of initiatives? greg: i think it is a really interesting question. one of the things about the new economy, things like electrification, copper is a very necessary input for some of the ev infrastructure or green initiatives. so some of the industrial cyclicals are some of the stocks that are quite well-placed to benefit from this. in terms of the expansion we've had, it has been driven by cyclical recovery, a reopening trade, but we haven't necessarily had the boost to come from infrastructure. when we look at things like the commodity complex, we had a commodity bear market in the middle of the last equity bull market. if you look at the trailing five

year average for the capex spend from some of the been here real's or mining stocks, they are at incredibly low levels. so we have a very tight supply picked your and demand that even though some of it is priced, it is continuing to expand. if we get a further fiscal boost from the administration for infrastructure in the back end of this year, it is going to drive more demand against tight supply. i don't think some of the traditional economy stocks are that badly positioned to participate. lisa: what is the biggest pain trade right now? greg: probably rates moving lower. i think there's been a huge amount of focus on rates starting to pick up, this reflationary cycle taper. that is what we have been talking about since the start of the year. you have seen over the last five weeks -- over the last five days or so, we have seen rates start to significantly drift lower. if that happens, i think some of the growth stocks people have been fond of could outperform.

jonathan: what are the securities i use, the tools i use? how do i get exposure to the story you are telling me? what do i do? greg: there are different ways of looking at this. the main theme i've been talking about is coupled value will quality, and it is a difficult thing to do. but it looked at it on a sectoral level and a stop level, and if you filter through for stocks to have exposure to those two qualities, you do get a interesting set of indices. things like the dow, some of the materials and missiles and mining sectors we think go quite well in that context, and you can take a cross-sectional view where, rather than looking for indices insect there's, instead you filter by individual stocks to try to build custom somatic baskets that are really geared towards those key themes. jonathan: tom is going to want

you back every single day. [laughter] greg boutle, go away. tom: you don't get that from david kostin at goldman sachs. jonathan: no, you don't. greg boutle, thank you. i don't think you will mind that when we asked him about this situation, he said, most of the s&p -- most of the market is following the s&p 500, but my kids are following the nasdaq. tom: one of the great americans has died. the john warner story, they are going to play it off. he married an actress. i can't renumber her name. john warner -- i can't renumber her name -- i can't remember her name. john warner joins the military. he became a captain in the marines in korea. he was the navy guy on the hill. he was a textbook virginia

politician of washington and lee. what this guy did, he was the last of the old guard liberal senators. in virginia with the geography to the south, he was the one that for years fought often the senate the real conservative tilt of the republican cell. jonathan: the former senator died tuesday at 94. ritika: with the first word news, i'm ritika gupta. the u.k. prime minister's former advisor has unleashed an onslaught of criticism toward his old boss, saying he isn't fit to run the country. speaking during a hearing in parliament today, dominic cummings accused johnson of not taking the covid crisis seriously enough from the start. >> in any sensible, rational government, it is completely

crazy that i should have been in such a senior position, and my personal opinion -- position, in my personal opinion. his crackers to me that boris johnson was there, and that the choice was corbett. lisa: he said officials had "disastrously failed the public." the european union is attacking what it calls astrazeneca's vaccine supply failure and ordering growing claims to deliver 20 million more shots than it promised so far by the end of june. secretary of state antony blinken is in egypt on the next leg of a diplomatic mission inning a pet shoring -- mission

aiming to shore up a cease-fire between israel and palestine. shorts are promising to make sure -- officials are promising to mix or none of the aid funds reach hamas. in ritika gupta. this is ♪ -- this is bloomberg. ♪ ♪

>> we've been much quicker to bounce back and close the output gap, so i think you will

continue to move higher from here, but i am not sure we will get rid of qe or anything else other than accommodation and inflation expectations pretty strong. jonathan: that was kathy jones, the charles schwab chief fixed income strategist. equities positive 0.3% on the s&p. the nasdaq advancing 0.4%. yields on the 10 year up around a basis point, 1.56% this morning. tom: there's the market churning, and to me, the yield is the major story as well. what we do economics, 10 percent of the american public say it is one estimation. jared bernstein is at the analysis of breaking apart the slicing and dicing of those deciles, those 1/1 -- those

1/10ths of the american public, and he is joining us. we are thrilled you could be with us today. do you have an understanding about which deciles have been disadvantaged by this historical stimulus? jared: it is a great question. one of the things you see when the job market tightens up, and this has been a theme of my work for decades, is that those in the bottom half, the bottom side deciles if you want to speak that metric, benefit disproportionately when the job market tightens up. you see the black unemployment rate come down faster in those situations. you see the wages of low-wage workers get a bigger pop. they are just a lot more sensitive to the kinds of bargaining power benefits that come from a full employment economy. so heading back to full employment as quick as possible

is one of the goals of our fiscal policy, and the american rescue plan is clearly helping to pull the recovery forward. not unlike comments i have heard on your show this very morning. jonathan: are you starting to see them develop a little earlier than anticipated? jared: i'm sorry, what were you asking about? jonathan: in terms of the outcome you would expect later on in the cycle, when you really start to erode some of the slack, are you starting to see some of those symptoms earlier in the cycle, now as opposed to several years down the line? jared: i think you are seeing a few, but it is more anecdotal and scattered. it really hasn't shown up in the data yet. if you look at the wage data adjusted for compositional effects, you can see some promising ends here and there, and you certainly hear anecdotal wage offers getting a bump. remember, we still have a

highly elevated unemployment rate. we still have a long way to go. but we are seeing some hints in that regard, and i like the way you tee it up, which is eroding slack. that is so important to middle and low wage workers. jonathan: more than 20 republican states, the governors have basically gotten rid of the extra additional unemployment insurance. what do you think the consequences of that decision will be in the data we expect to see in the coming months, deeper into summer? jared: it is a good question, and here's one of the natural experiments. we are definitely concerned about taking on enhanced unemployment benefits too soon. everything is going to act on its own, and obviously economic conditions differ across states. the president has leaned into this firmly, saying people who

are offered a suitable, safe job need to take it. that is part of the rules of the system. but this has been so important to help workers, not just the standard based system, but also added, and hands from people left connected to unemployment because maybe they are gig workers or self employed. so it is helping people get through the recovery, get through the crisis to the other side, and along with the distribution of the vaccine, and has been one of the more important parts. lisa: do you see the enhanced unemployment benefits as being a template or serving as a template going forward for some sort of universal basic income, especially if the participation rate continues to fall as it has over recent decades? jared: it is a fear question. i would probably say direct impact payment checks are closer to that than the ui insurance

payments. unemployment insurance is just that, it is a specific insurance program for people who lose their jobs, and one that has been in place for many decades. it has proved to be an extremely important countercyclical force. i do think the system needs work , and the administration is very committed to doing that. if you listen to the discussion of making sure the next time we get a down storm -- a downturn, the system is more ready for that, that is an important part of our policy infrastructure that we are committed to working on. tom: i want you to speak to a small business out there that is petrified of what they see from fancy, big corporations of $15 an hour, $17 an hour, and up and up wages. i want you to study david karn and alan krueger, and the fear that if we raise those low minimum wages, all of the other wages come up with it.

what is your evidence on that study? jared: this is a very consistent finding around minimum wage increases. if the minimum wage goes up, many studies have found there are spillover effects that give a bump to workers right above that minimum wage level. again, as i mentioned earlier, we are seeing increases in low-wage offers, and i think that is really important to people coming back into the labor market. think of it like a price signal. i was sinking about you the other day, tom. what i thought of was keynes meets hayek. the idea that the relief on the fiscal and monetary side and the monetary policy also helping to move the recovery forward. you've got price signals that are pulling workers back into

the labor force. you've got the vaccine out there . 50% of adults vaccinated, way above our schedule. i think those are all promising developments. jonathan: he does this right -- tom: he does this right at the inter--- at the end of the interview. you will come back on jobs day. you've got to come back and we've got to talk about the information that is out there that we can't see. we've got to get on the air with joe stiglitz and others. jonathan: he just said he was thinking about you. now you want him back? is that it? tom: do you look at the dow jones industrial average? jared: i've heard about that. [laughter] here's the thing. when you're in the white house, you are very careful not to react to every blip in any index minute to minute or day today.

deliver the goods to the middle class. jonathan: that is a very diplomatic answer. always good to get you on the show. thank you, sir. from new york city this morning, good morning. this is bloomberg. ♪

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jonathan: good morning. for our audience worldwide, live on tv and radio, this is bloomberg surveillance. alongside tom keene and lisa abramowicz, i'm jonathan ferro. 4200 on the s&p. advancing 15 points. yields unchanged on the 10 year. euro-dollar -.2%. that is a weaker euro. a stronger dollar. tom: we will get to betsey stevenson and a moment to look at the linkage of policy into the american economy. right now, all of us say we need to stop the show. for global wall street the definitive article as they read on the new cfo of jp morgan.

a really important story for all of global wall street because he felt. explain to us how daniel pinto selected a cfo that has enjoyed failure. sree: is it incredible -- it is an incredible career. it would be hard to find another regimen like this rising to the top. jeremy barnum started at jp morgan in 1994 armed with a degree in chemistry from harvard. had a big prop trading growth and blew up. was fired through jp morgan, went to another hedge fund, fired again. was learned back to jp morgan and since then it has been an incredible comeback story. now the cfo of the nations largest bank. tom: what does he bring? you look at all of the other failures, he brings prodigious

mathematical skills with his chemistry. what is the specific skill jamie dimon wants from him as cfo? >> let's look at the second innings of his career when he returned to jp morgan in 2007. possibly the same date the hedge funds are blowing up. then came the 2008 acquisition. he was a junior staffer than but that is when his first interactions with jamie dimon started. making sure to avoid all of the pitfalls from the collapse of lehman brothers. he played a role in that. the antagonist and that scandal was martin, his former employer. he almost so -- he also helped jp morgan unwind some of it straight. that got a lot of acclaim. since then his career has only been on an upward trajectory. lisa: there is a cliche on wall

street, if you lose $1 million you get fired, if you lose $10 billion you will get hired. is that part of the story? or is it a distinct tale of someone who brings incredible credentials. >> it is different in that back in 2004 i do not think jp morgan was losing that kind of money. he was the head of the credit-rating business in north america. it operated like a hunch fund within jp morgan. they used massive derivatives, cash bonds. the derivative market was taking off at that time and jp morgan was central. then came the blowup. jamie dimon had just joined the franchise. he was the president. he was overseeing the restructuring of the fixed income. to jp morgan's credit they recognized what they knew and

what they did not know and had to bring back someone who had immense expertise in the derivatives. jonathan: i have to jump in. breaking news. amp -- amazon mgm stick is have signed for amazon to buy mgm. amazon agreeing to buy mgm studios for $8.4 billion. a little bit lower than the $9 billion circulating in the news. wall street journal was the first report on this deal. lisa: there is a question is big tech tries to get into media and into this is this how many streaming services, how much people are willing to pay and whether it is a good deal. jonathan: there was talk apple was in the mix for this content. amazon came in big. much bigger than anyone else was offering. lisa: they had the cash. the question would be whether it is worth it at a time when it is peak content. tom: -- jonathan: that headline

just crossing the bloomberg. amazon agreeing to buy mgm studios for $8.4 billion. widely expected. that is the headlines crossing the bloomberg this morning. tom: the value of intern copyright. much more that through the day. right now we endure in american economics. there is no one better than betsey stevenson, university of michigan professor of economics and a student of our social economics across this nation. i have numeral -- i have eight ways to go. the single way i will go is what i have observed, women are flat on their back and this pandemic over childcare. let's revisit it. why is america bid people in our public policy -- why is america medieval in our public policy on childcare? betsey: the why question is hard to answer.

i can tell you how we got there. people decided childcare was a personal issue more than a societal issue, something for families to solve on their own. we saw at the beginning of the pandemic, it was breathtaking to me the way congress -- they barely asked the question of who would take care of the children. lisa: there is a question about why there has been this incredible friction. there are all of these job openings people are not going to apply for those jobs. there had been some theory it was because the enhanced employment benefits were bigger than the salaries. their other theories it is because people have kids at home and other family obligations. have there been any studies on that? betsey: jason furman and melissa kerning was another co-author -- they took a look at the data and said it does not look like five

tears holding back the economy. mothers are only 12% of the labor force. even if mothers were really struggling they are still small share. it is a different answer than i think you are hearing from a lot of people, which is there is a lot of openings but nobody is sure what kind of job they want to go into now. what we saw is a great reshuffling and it will take people a while to figure out what they're going to. things have changed. you used to work in retail and you never thought about it as a dangerous job. you did not think you are going into the coal mine. retail ends up being kind of dangerous. the same is true with working in hospitality. i think a lot of people are trying to figure out what their next step will be. a lot of businesses are trying to figure out what the next step will be. when you're only seeing 256,000 new jobs added, you cannot blame that all on workers. they are not 8 million people

sitting at home saying i do not feel like working. lisa: it raises the question of whether these frictions could persist longer than people expect, whether it is a matter for the jobs not being good fits for what people want to do. could this be a longer-lasting phenomenon than people expect? betsey: that kind of frictional unemployment works its way out. it will be a slower slog than people have been thinking. for the last year people have said the pandemic will go away and the next day everyone will go up and get back to work. people are vaccinated and they are still not ready to get up and do things the way they did before. i do not think we will get back and do things the way we did before. we have companies trying to figure out how they would get remote workers back in the office. a lot of adjustment will happen and it will make things slower than people expect. tom: what is the total pie of

the government part of this economy versus what conservatives would suggest is the socialism of france or sweden or others? their responses we do not want to be like france. how close are we to being france? betsey: we are very far away from being france. what we collect in revenue, what we spend in terms of a share of gdp is much smaller than the other countries. there are two big questions i want you to separate. how much stimulus do we need, do we need to be supporting people right now? are we going to recover quicker if the government is putting money out there? another question is what kind of social infrastructure do we want? do we want the government providing education? how much education? just k-12? university? early childhood?

do we want childcare in the mix? what do we want the government to provide? the pandemic has forced a lot of people to ask that question. we got a lot of people in the biden administration with a different vision of government and the kind of support that will be provided. that is not about the pandemic but i think the pandemic caused people to say i want more from my government. tom: this is an unfair question. we talked to market economics -- do you share that view or can we not get back to morning in america but can we have a better run rate of real gdp? betsey: i think the idea -- we go back to the trump administration and the idea was we will get faster real gdp growth if we stop taxing everybody that does not work. if you want faster gdp growth the only way to do it is invent

ways to do more with will ask. the way to invent ways to do more with less is to start at the ground level and invest in our people. if you want faster gdp growth you invest in early childhood education. that will not get us back gdp growth tomorrow but it will in 30 or 40 years. the u.s. used have the most highly educated population in the world and the fastest growth. we have now slipped in the world so we are barely in the top 10 in terms of highly educated workforce. no wonder our growth is slowing. i would say there is no easy fix , there is no crash diet to faster gdp growth. we have to invest in the people who will become more productive and come up with new ideas and give us the faster growth. jonathan: we have to leave it there. betsey stevenson of the university of michigan. to return to the breaking news, amazon agreeing to buy mgm studios for $8.45 billion, a little less than the guide we

got over last week in reporting. looking for something around $9 billion. the largest acquisition for amazon since the $13.7 billion deal for whole foods in 2017. coming up on "the open" we will discuss the deal. dan suzuki coming up a little bit later. tom: you have dan suzuki? jonathan: we have dan suzuki. tom: richard bernstein looks at the dow jones industrial average. jonathan: i will ask richard about that. tom: will continue. jonathan ferro, 9:00. this important amazon story. armida -- our media analyst joins us. i know shipman has written this is like one day of revenue for amazon. i get that. is this the beginning of

something bigger for amazon? you look at this is an incremental step or is it a dalliance for a retiring jeff bezos? gita: thanks for having me. i think this is a bold step and this speaks to amazon's ambitions in streaming. they have doubled down. just a few weeks ago they announced 11 billion-dollar deal with the nfl. they are serious about streaming and now they are getting an iconic mgm studio with 4000 movie titles and 17,000 tv shows. they are going big in streaming. tom: they are going big, but for streamers it has not been a bed of roses. it is paramount plus, i guess it is going to be mgm plus, i do not buy it. what is the aspiration of amazon when you contrast them with the other streamers? >> they want to be a top-tier

service. this is a move that is coming very closely on the heels of discovery time warner. everybody is looking to consolidate their position. we know netflix and disney. hbo max a top contender. now you see amazon. the prime service has always been important but this is where they are making the big bet nvidia. -- bet in video. tom: lease that you have seen mandalorian four times in your house? lisa: we hold screening for the entire floor. this raises the question of whether the barrier to entry is getting higher and more expensive. is that your experience at a time when 70 different outfits are putting so much priority on content? >> absolutely. it will be harder and harder not

just to retain subscribers but to attract subscribers and retain them. that is what amazon is trying to do. they are not only getting that deep library and that trove of content, many movie and tv titles, but it also allows them to make those new shows. the mgm tv studio has come out with good stuff with handmaid's tale, with fargo. now they have that firepower to attract a bunch of new subscribers. lisa: true story. i lived in fargo which dovetails to our conversation with the north dakota senator. there is a question of whether this is too high of a price at a time of such incredible emphasis on content. we are coming out of a pandemic where no one else had anything else to do. is there a sense some of the content is being bid up too high? >> i do not think so.

i think this is an arms race. content creators need space. the price of content has gone up dramatically in the past few years. it will go up more and more because this is how you attract subscribers. it is the name of the game when we come to streaming and media. we can only expected to go up a little bit further. tom: publishing today on amazon for bloomberg. they are moving at light speed. all of the negativity in the amazon annual meeting and shareholder rights issues and the politics of washington, all of these companies, every date they are moving forward with massive profits and what to do with it. lisa: they have so much cash, what will they do with it? why not buy a movie studio? the question i have is is this going to pay out longer-term?

they already have prime subscribers. will this move the needle. free market shares are up for mgm as well as amazon. tom: robert shipman publishing on the credit quality of amazon. they do not have nearly the credit rating of the other major tech fangs because they have been investing. shipman makes clear that amazon with the enduring cash flow can migrate towards that credit rating. much more on this through the morning. looking forward to talking to paul sweeney on bloomberg radio in a moment about amazon and mgm. joining us, and i am going to rip up the script. i can do that with the gentleman from north dakota. kevin cramer is with north dakota. i have to keep my dakotas careful. senator kramer -- senator cramer, i will stop for a moment

for you to speak on the symbolism of your republican party, from john warner dying at 94 to the moderate republican party. i love the idea that i think like lincoln you lost your first three elections. tell me how your gop keeps republicans like john warner and senator portman of ohio in the fold. how you keep these liberal republicans in the party? sen. cramer: thanks for the question. pragmatism works. one of the things donald trump drop to the republican party's working-class americans. at the end of his four years, one of the things we lost our not so much moderate as -- suburban women, for example. if we take the trump mantra,

less globalist, america first globalism. a populism conservative and applied in a gentler way, not shyly, but i think we have the right governing philosophy to be a majority party. the other thing is this. joe biden will help us immensely. if we can get out of our own way and keep highlighting the biden agenda, which includes everything from destroying american energy by building up iran and saudi arabia and russian energy, putting so much money into the marketplace we create hyperinflation, and all of the other stuff. his lack of attention to the really big issues. there is nothing like a common opponent to help unite people. i think our own message needs to be the trump message delivered in a way people understand. tom: the lessons learned of losing the presidency, losing the house, losing the senate.

these are by small numbers. how do you coalesce the gop on social issues so removed from the core trump constituency, and i might say social issues senator warner virginia led with through the 1970's and 1980's. sen. cramer: we are seeing a trend that does benefit us. that is the hispanic americans are coming our way. they came more our way under donald trump, because of donald trump. they identify more as working-class americans than hispanic americans, which is the heart of the american dream. i think we take that same social message that is job creation and profamily, you do not have to apologize for being profamily. you have to understand the culture and speak to it. i think we need to get back to

remembering the working-class americans, the forgotten man and woman is still out there and they are still looking for a voice. donald trump was that voice. we can continue to give that voice but at the same time recognizing the world is a shrinking place and we also have to remind people all of this we cherish so much depends on a strong military. we have to remind people that we did not used to have an adversary in china, but now we do. the soviet union broke up, but in many respects it is coming back in the person of vladimir putin. lisa: there's a question of giving a voice to the working-class americans and also a question of creating the right economic backdrop for them. i believe a coalition of republicans are about to counter propose a $1 trillion plan to president biden's infrastructure spending initiative. you have a sense of what is in it and whether you would sign

onto this? sen. cramer: great question. i do have some sense of it and i likely would sign onto it. i've always thought we can go bigger than we have gone as republicans while maintaining our philosophy and our integrity. a couple of things. i am the ranking republican on the transportation and infrastructure subcommittee. we will mark up surface transportation bill today. it has been negotiated between the four corners, shelley cap moore capito, ben cardin, and myself. i would like to see us expand infrastructure. republicans say we need to keep it to the concrete issues, and i'm not against that. but take energy as an example. pipelines, transmission lines. jennifer granholm, the secretary of energy -- energy

infrastructure is infrastructure. it does move commerce. it creates high-paying jobs comment does not require spending on the part of the federal taxpayer. i think we can get to $1 trillion by having permitting and regulatory reforms that maintain the integrity of environmental excellence, while at the same time unleashing the private sector investment. by putting more money and investment into american energy rather than iranian and russian energy, you actually help the climate and the environment. we produce fossil fuels with a much more footprint than other countries. lisa: what is the distinction between going bigger in the proposal you are talking about the $1.7 trillion plan joe biden is talking about, especially when you talk about high inflation rates? why is the plan you are proposing not causing high inflation while the other one will? sen. cramer: powers does not involve more federal spending or

more borrowing or more printing of money. to the degree we can repurchase $750 billion to $1 trillion, it has already been appropriated but will not be spent. that is not new taxes. that puts that liquidity to work in the marketplace in a way that creates jobs and creates an asset that has value and has the movement of goods and services throughout the country. i think we do just the opposite by going bigger. as long as we are not printing new money or borrowing more money. tom: the reason we had gone is lisa abramowicz puts down the german skillet like nobody in fargo, north dakota. we are not going to do this in february. we need a road trip so lisa can remember her years in fargo, north dakota. i am thinking pheasant. maybe in the autumn or

september. can we get that done? lisa: for sure. jonathan: we cap slowly -- sen. cramer: we can absolutely get that done. i will find the best land you can go hunting on. the kitchen one of the great institutions of north dakota. they know how to make food. tom: they do. the senator from north dakota today. the death of the senator from virginia, john warner. it is great to talk to the senators and politicians around the country. lisa: we will host surveillance from fargo, north dakota and you will be underneath the viking ship. tom: you will take me there in january. lisa: you will enjoy all of the weather. tom: an eventful day on bloomberg. amazon and mgm clearly front and center with breaking news. drama in washington. bankers in attendance.

we are watching yields. 1.5655. the 125th anniversary of the dow jones industrial average. 34,349. that is last time you'll hear on tv for an hour. lisa: that is true. [laughter] ♪

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jonathan: from new york city for our audience worldwide, good morning, good morning. 4195 on the s&p 500. positive going into the opening

bell. the countdown to the open starts right now. >> everything you need to get set for the start of u.s. trading. this is "bloomberg: the open" with jonathan ferro. ♪ jonathan: from new york, we begin with the big issue. the market struggling as the fed talks about talking about tapering. >> nothing is moving. >> bonds are flat. >> we have moved sideways. >> a month and a half of consolidation trading sideways. >> the inflation narrative is still there. >> for the first time -- >> the fed is likely to start to shift their policy stance. >> they are thinking about talking about tapering. >>