where we are in the economy. >> people are getting vaccinated and still are not ready to go out and do things like before. >> no one believes inflation will be anything but transitory. >> the fed is managing inflations into do a great job of it. >> this is "bloomberg surveillance" with tom keene, jonathan ferro, and lisa abramowicz. tom: good morning, everyone. jonathan ferro, tom keene, lisa abramowicz. jonathan -- he is british but is off for memorial day. what is that? and joining us from berlin, the american, matthew miller. how are the military holiday celebrated in germany? what is there memorial day equivalent? matt: we do not come obviously,

have these kind of military holidays in germany. the german -- the military is not reviewed this and way it is in the u.s. tom: we are thrilled to have you with us for important european perspective. lisa abramowicz, what i see in the budget of $6 trillion is back to world war ii. it is a seismic shift. lisa: joe biden will be releasing it at 1:30 p.m., the $6 trillion spending plan. goldman sachs is reduced to get reduced -- expected to get reduced to $3 trillion. we are talking about a seismic shift. an even more important than this is the green book, the tax proposals accompanying this will also be out today. how much will our tax regime change? tom: we will have a look at that, jamie dimon commenting on that as well. in the markets this morning, it is the end of the midyear, and the consistent theme is the vix

under 17. lisa: and it is the amount of cash in the system. yes, it is the recovery, but there is also so much cash. have you moved over your cashier? tom: it will be interesting. we will show a chart, the amount of cash up there. and i look at the market, and across assets, futures up 180. we do the dow futures when jon ferro is not here. it is an ancient tradition. the vix under 6%. what do you see of the currency market? matt: the lire i've been watching closely, ever since erdogan fired his most recent central banker. and it is really not the dollar-euro lire -- the dollar-lire important to people in the turkish economy, it is the euro-lire that they watch because that is where the bulk of the trade is done, and it is a different chart. tom: 8.57 on dollar-lire, 10 in

euro-lire. all you need to knows depreciation. the one thing i would look at his stability in the bond market, the yield and 10 year yield, 1.61%. your thoughts on this friday? lisa: that is the interesting thing, stability in the 10 year yield. including the auction -- people want to buy bonds even as u.s. deficit continues to increase, and even though signs of inflation are still strong. i am watching the 8:30 a.m. data dump, personal income and spending, and the pce, the key metric of inflation the federal reserve watchers. how much has increased the expectation, the biggest year-over-year increase going back to the 1990's -- transitory, are we going to keep watching this? at 10:00 a.m., the other aspect of inflation, consumer expectations.

may consumer sentiment index, i am keying in on inflation, surging, how much is it crimping the outlook for consumers going forward? today, around 1:30 p.m., president biden unveiling that $6 trillion spending plan. we will also get this green book outlying -- outlining the taxes that may accompany its. goldman sachs pointing out it is strange it is coming out at 1:30 pm before a holiday weekend when normally these are put out on a monday morning so everyone can hash it out. tom: the headline out right now on the hsbc, and this off the retail banking exit yesterday in america, the hong kong and shanghai banking corporation clearly still in difficult and challenging times, that from the hsbc chairman.

before we get to mickey levy, a wonderful guest to speak to come i want to go to matt miller in berlin about the ancient tenor in germany, the fear of inflation. you have heard this in your interviews. i've heard it from ubs. within the tone of germany right now, is there a generational shift? is there less of that ancient fear of inflation? matt: i think that is. lisa mentioned a seismic shift from the 40 year era of reaganomics into this new biden budget. we see a little bit of a shift here as well. olaf scholz, running for chancellor in the social democratic party, he had been steadfast in sticking to what they called the black zero here, not wanting any debt, not wanting any extra spending.

now that tone in his interview earlier this week on bloomberg television has changed. they are willing to do the extra borrowing and spending they need. tom: there is a change in america as well. we are thrilled to bring mickey with berenberg capital markets. and far more important, you and others really concerned over time that, someday out there, would be inflation. is the someday out there on inflation now? ryan: yes -- mickey: yes. we are not going back to the 1970's, but it is just so clear this is more than temporary. yes, we are having a temporary spike because of the year-over-year measured from last spring, but all you need to do is look at the acceleration in economic growth, and if it is continued, it means aggregate

demand relative to supply or relative to capacity, that is all you need for businesses to raise prices and maintain their margins, so everything is in place for inflation to rise, and i think it is going to rise significantly enough to make the fed uncomfortable. and when the fed is uncomfortable, we will have to see how the markets respond. but once again, all of the factors are in place for higher inflation. and i just point out we have never had so much monetary and fiscal stimulus, and the fed, and others, are saying but look what happened after the financial crisis, we did qe and zero rates, and it did not generate higher inflation, so the same thing is going to happen. they are just fighting the old battle, and people, including the fed, are going to be

surprised that this temporary inflation is going to quickly involve -- evolve into a trend higher. lisa: many people i've talked about we will only know if inflation is increasing in a more sustainable fashion later in the year. given that, how do you frame out the information we will get into one half hours? how do you look at all the data between now and months from now? mickey: that is a great point, because time will tell. i am just expecting that there pce price index, either this month or in coming months, they surprise to the upside. think about the following. unprecedented amount of monetary and fiscal stimulus. aggregate demand accelerating. business topline revenue growth is accelerating. the extraordinarily easy money has contributed significantly to this boost in commodity prices,

materials prices, even wages going up. so what are businesses doing when they face significantly higher production costs? with strong aggregate demand, they have affects ability to raise prices, and we have seen anecdotal evidence of it. and the critical issue here is one will the fed, around and acknowledge, well, maybe it is not just temporary, and then how will they respond? it is a guessing game, because when the fed changed its strategic plan, it said we prioritize maximum inclusive employment, and we want inflation to go above to present, but we will not tell you what range we are comfortable with. so the fed has left us in this environment of it is a guessing game. matt: they have to know -- i talked to the ceos of daimler,

bmw, volkswagen, they all tell me that they are raising prices. they have higher input costs, they need to pass that on, and they are even patting margins, so they are raising them more than they need. the fed has to know this. is it possible the central bank is willing to let inflation run a little more as they see the huge debts amassed in america -- amass in? america? ? mickey: once again, great point. the way the u.s. reduced debt burdens following world war ii was a combination of sustained growth and higher inflation. that reduced the debt to gdp ratio over a generation and a half. this time, there is no question that the fed wants higher inflation but it also wants to

anchor expectations are to present. we have seen a modest move up in inflationary expectations, but i think the fed is missing a broader point, talking about this -- the reason why they want prior inflation is a catcher from recent years and to lift inflationary expectations, but their whole concern about inflationary expectations imploding and facing the zero bound -- that his old battle, not the battle now. increasing inflation and economic performance, i just do not see it. if you are a business and saw strong product demand -- tom: we got to leave it there, we are out of time. but thank you so much. he is with berenberg capital. coming up, we will drive forward

this conversation and bring it over to the markets, particularly commodities. edward morse of citigroup on ascendant china and copper. futures up 15 on this memorial day friday. this is bloomberg. ♪ ritika: senate republicans are poised to block the creation of a special commission to study the january 6th attack. mitch mcconnell originally saying he was open. he turned firmly against the in recent days. the bill passed the house this month. they u.s. climate envoy john kerry will join the of a -- of the envoy from south korea next week.

they are hoping to lay the groundwork for new agreements from cop 26 talks in glasgow. singapore is pledging $605 million in additional support and individuals affected by virus restrictions. the nation is seeing and uptick in covid-19 cases, which has prompted officials to reimpose some lockdown measures. singapore's economy has been hit hard by the pandemic. as we begin the memorial day weekend, gas prices in the united states are at their highest level in seven years, but experts do not expect it prices at the pump -- there is pent-up demand for travel. 37 million people are estimated to be on the road this weekend. global news 24 hours a day on air and at bloomberg quicktake, powered by more than 2700

journalists and analysts in more than 120 countries. i'm ritika gupta. this is bloomberg. ♪ is is bloomberg. ♪

>> it would be our plan to build another six or seven

manufacturing operations in america over time, so that we will not be so vulnerable to relying overly on one company or one country. tom: secretary raimondo very aware of the allocation of the $6 trillion budget and what it means for the -- for rhode island. we are following hsbc this morning, the chairman and ceo speaking in statements, and it is ebbing away a little bit. it is pulling back. this is off the bombshell announcement, after 40 years, hsbc will exit retail in the united states and focus on wealth management in asia. emily wilkins is in washington, with lisa abramowicz and matt miller. it is real simple -- i believe the president proposes, and

congress disposes. is there anybody in congress that wants to dispose towards a $6 trillion budget, particularly anyone in leadership? emily: i think republicans certainly are not going to be big fans of the budget coming, particularly with their concerns about the rising deficit and the amounts that this bill would add to it, but a lot of the additional $6 trillion we are seeing in this bill has already been proposed in the infrastructure plan. we knew, to a certain degree, this big number was coming, but you're absolutely right. this is half suggestion, half wishlist on the part of the white house. congress looks at it and nods at it. at least biden has his party in the senate. tom: lisa has been up since 1:00 a.m., lining up for questions. [laughter] lisa: there is a question of what will get excised, what will

potentially be nonnegotiable additions to his spending and what will not what are the part of this bill expected to be permanent? emily: a lot of this bill is stuff that have already been enacted, authorized, spent, and what we have seen is that consolidation around the traditional infrastructure spending, the acknowledgment that, yes, we need to spend more on america's roads, bridges, highways, public transportation. democrats will continue to push to get climate change initiatives in there, things for electorate -- electric cars and vehicles. there is also a strong push for child care, the head of the appropriations committee, it is a top priority for her. she is the one who controls this process in the house, and she really wants to make sure that is part of a viable piece of legislation. lisa: how concerned is any part

of the democratic party about the u.s. deficit? emily: i think it is something everyone is watching. the numbers that came out in april were not great for democrats. you saw a sluggish return to employment, saw increased inflation. yesterday, we heard treasury secretary janet yellen come out and say inflation may be a little higher for the next couple of months, but after that, we expect it to normalize and go back down. so there is a question of what does happen, one of the numbers, because the higher these numbers go, the slower the recoveries become, the harder it will be for democrats to say this is based on other factors rather than spending. tom: what is so interesting in america is the basic idea of a trump budget with estimates of economic growth versus a biting budget with -- a biden budget with economic growth. it is a venous and mars. matt: the imports of that cannot be cast aside. it is typical for someone in the

other party to say economic growth will pay for this, we do not need taxes, whereas democrats will say let's raise taxes to try and pay for this, and they want to do that in a pretty major way. i think that will be the big debate, how likely is biden to get his tax proposals through? emily: if they decide to go through only democrats, there is a likelihood they could find a way to negotiate and find an agreement. certainly, it will not be as much as president biden has proposed, but it can still get done. of course, if they want to go forward with republicans, they have made clear that doubling capital gains by raising corporate taxes are not options on the table. they are looking at public-private partnerships, altering the irs' capacity to audit, but that is a major sticking point, and there is no major agreement on how things would be paid for. matt: what is he likely to get in terms of corporate taxes? maybe he will not be able to raise it to the level he wants,

but surely they can make some compromise. emily: the major indicator is west virginia senator joe manchin, one of the most moderate democrats. i've also spoken to a number of moderates, who says the white house needs to show us why they take the number of 28%. we need a reckoning and accounting of what this will do to corporations. they seem a little hesitant to get to that 20% number, but i think there is a sense among the democratic caucus that they can raise corporate tax rate without feeling too much heat for it. tom: emily wilkins with bloomberg government in washington. we have to take a moment -- a precious moment that we had to take advantage of -- that matthew miller is with us that we describe it going. -- bitcoin. lisa and i are like, we do not want to talk about this, but

matthew miller is with us, so here we go. i am looking at bitcoin soft off of the bank of japan's comments. what i see is two standard deviations south. how critical is it for bitcoin to find that support and keep it? matt: i am not a technical analyst, so i do not know about those numbers, but i got a lot of messages from bitocin enthusiasts --bitcoin enthusiasts once we saw the $6 trillion number. when we first started talking about bitcoin, i was out buying for them for $600 apiece -- even 36,000 does not look too low. lisa: literally this is matt' victory lap, is that what this is turning into?

-- matt: i would buy us all hummers. tom: lisa's buying the hummer with the 32 gallon capacity. lisa: the idea that the bank of japan is coming out and saying bitcoin looks speculative -- of course they do not like it. that is part of the whole point, that it goes account -- against the comments on the currency. tom: it seems like the government authorities and institutions -- are you and others waiting for the big statement from secretary yelling, something like that? matt: they are definitely waiting, others are waiting for regulators to embrace this. maybe eight g7 regulated -- maybe a g7 regulator to state

we are ok with us. i am personally on the libertarian side of this. tom: i'm shocked. coming up, matt miller on austrian economics. bill priest will join us. he will walk office at if we talk about bitcoin. ♪

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tom: good morning, everyone. "bloomberg surveillance, lisa abramowicz and tom keene. matthew miller join us in berlin. futures down 15. the vix giving the good news two days in row, lowe's 218 -- down to 16 73. while we have miller here, to get away from bit going -- bitcoin and talk about something adult, is there a presumption of a better deutsche bank, that is asterisk commerce bank, -- disastrous commerce men, on

anon, that we are finally in an era of eu consolidation. matt: if you ask the bank ceos, they will say it not time yet. without banking unions, ceos are not going to do it. if you talk to people at the ecb, they say ceos have to make the first move. lisa: isn't the ultimate issue that each portion of germany is controlled by separate politicians or they will be a natural opposition to any consolidation whatsoever? matt: that is the problem in the german market for sure. you have a fractured german banking market. there are hundreds not thousands -- you cannot -- tom: you cannot say that on radio. we were -- matt, we were talking the other day, is jp morgan coming into the market, and the consumer banking market is too unattractive because there are so many players already here.

tom: on a friday of monday, we reset for the summer, maybe new habits -- what you need to know if there is one book, you know i love peter bernstein's classic. this is the definitive book on cash flow. it is by william preece that epic investments. he actually runs real money, but what he has done around 13 years ago is right the absolute definitive book on free cash flow. bill priest, if you wrote "free cash flow" today would you read it differently? bill: i would write the same way, make it slightly more flexible. today the yield requirement that

you might have in an income-oriented portfolio should be more of a floating yield requirement than an absolute yield requirement. that said, it still works pretty well. tom: this is important. if i take the sharp ratio, i have taken beta out of it and i have a risk-free return i cannot calculate right now. how do you login a risk-free rate when you go through the fancy math of your fancy book? william: i don't think the math is too fancy. the key has to do with the growth rate and the weighted cost of capital. the growth rate has to be equal to or greater than the cost of capital, otherwise you are liquidating your business. the key is to emphasize the reinvestment rate as much as the yield itself. the yield itself without the gap between the reinvestment and

incremental cost of capital has to be widening over time overwrought -- otherwise the free cash flow measurement will not work as well today. lisa: from your years, there is a question -- has the idea of risk changed given how low yields are? william: risk is really uncertainty, so the way it manifests itself today is in the duration of assets itself. so, to the extent you have -- when interest rates fall come along-duration assets benefit the most, so these entities that have very little, or very short-term cash flow yields, let's say, but if they have great growth rates associated with them, they do extremely well. think of it in bonds. the 30-year bond moves the most with the given change in rates if they go up or down pick the 10-year moves up, but not like

the 30, and the two-year does as well, but not like the 10 or the 30. think of growth stocks or tech stocks were payoffs are down the road. when interest rates fall, the value of the payoff rises quite a bit, but the reverse is true, and i think what you are seeing in the market right now is a combination of these reopening trades, which is certainly happening, combined with a fear that inflation will grab a hold of the yield curve and start to shift. we've not seen much of it yet, but the fear is out there. lisa: this is fascinating because in some ways the risk right now is people see it lies in the safest assets, assets perceived as the most reliable, government debt, so it raises the question, do you going to the riskiest assets like bitcoin. even the likes of blackrock are

speculating, examining whether to look at bitcoin as some sort of commodity-like balance going forward for investment. do you agree? william: let's step back. what is the role of money in any society? money does three things. it is a unit of account, it is how we decide what we buy. instead of barter, we have a medium of exchange. it is a unit of account, a medium of exchange, and a store of value. digital currencies, bitcoin, all that stuff, they meet two out of three. they can be medium of exchange, a unit of count, but they are not a stored value. coming down the road, this is a real deal -- it is coming in the issue will be around privacy. that is where the rub is going to be. we have never been big fans of any of the bitcoins, the digital

currencies, but the central banks are coming into it. china will probably be the first. i think you will see something in europe and the u.s.. the verbalization of what they are doing is behind the curve, but they will get there. if one really wants to learn about digital currencies and central banks, the bank for international settlements is a very long paper, 150, 200 pages -- i read it more than a year ago. that is a necessary read if you want to understand what is coming down the pike would digital currencies, particularly with central banks. matt: if you separate the tokens from the software, we saw a few weeks ago the european investment banks sell 100 million euros of digital bonds on the theory of platform. it does not necessarily mean you want to buy either, but it shows you the value of the platform.

bitcoin has a limited supply. doesn't that make it a store value? william: it fluctuates. store value fluctuates quite a bit. it is unclear you'll be able to maintain the store value. it is often played up against gold. gold had a really of substance. the issue of digital coins will ultimately be privacy. most of the uses, to me, from what i've been able to read or observe of these digital coins have been for illegal activities or let's say untaxable activities. if you go back a year to the cares act to make the money had been delivered through the digital currency with the identification surrounding that, on the one hand it would be more efficient. a lot of the money went to

people that should not have gotten it, but i think you could have gotten all of it to the right. . places the problem is that is a privacy issue here. that gets back to this whole issue of surveillance s. -- has written a book about this. she is a professor at harvard. it is a must-read. i would encourage tom to get her on his show. she is first rate. this gets into bigger issues that what has to do with cold war 2.2 -- 2.0, and it is about values. china is about social scoring. if you have a high social scoring china, you can go anywhere you want. if you have a low social score, you will not be able to go out your front door. that is one set of values. so, embedded in all of this has to do with what is going on in the digital world today with

privacy issues. tom: we did all the digital stuff and we did not even talk about apple and the rest of it. we will do that soon. we need to make note, lisa, something you and i avoid like the plague, that is what we are seeing in one massive short squeeze. if you look at amc, and up, up, it went, it has blown through that the last few days, and far more importantly has blown through that this morning, moving up from 28 to 32, off the top of the chart on amc. there it is one once again, gamestop, amc and a small cap trade. lisa: there is a question of how much this has legs -- whether you can short sell these companies or if you will get your head ripped off by traders on reddit.

it raises the question, how do you measure risk, evaluate fundamentals? tom: abramowitz offspring are on the couch. my kids are on the couch. matt miller, our kids and germany on the couch? matt: there is a much more difficult day trading situation. my daughter has tried to get it up on her iphone, and she cannot do it. there are too many rules and regulations. tom: does your daughter walk you? matt: no, she is only seven months. lisa: i was about to say. she is not sure trading stocks that are on reddit. lisa: i will say my kids are really into deutsche queen. tom: it will be into ditch

interesting to see, but -- interesting to see, but matt miller way out front on bitcoin. edward morse of citigroup. but -- stop by. stay with us, from new york, from berlin, this is bloomberg. >> the russian hackers behind the soul for when campaign have escalated attacks on u.s. federal agencies, think tanks, and nongovernmental organizations according to a blog post for microsoft vice president tom berg. in april, president biden ordered sanctions against six companies that provide support to the kremlin operations. in taiwan, officials say the coronavirus outbreak is not under control despite strict social distancing members -- measures. authorities reported hundreds of

new infections. the health minister hoax at least 60% of the population can get at least one dose of the covid 19 vaccine before the end of october. japan's prime minister is extending instead of emergency in tokyo and other cities in japan. it is a last-ditch effort ahead of the olympics. japan has one of the slowest vaccination programs in the developed world. nike has extended its partnership with namer over the brazilian's soccer star refusal to cooperate with the investigation saying he sexually assaulted an employee and 2016. the athlete says the allegations are baseless. "wall street journal" as there

were eight years left on the contract. global news on air and on bloomberg quicktake. i am ritika gupta. this is bloomberg. ♪

>> i think the fall is still

looking good in my projections. that said, we always worry that when the weather gets cooler and people start heading indoors more that in places where there is not great vaccine coverage, you could see outbreaks. if you are living in one of those places where you think most of your neighbors and community members are not vaccinated, maybe you have a few more worries heading into the fall, but i don't think we will ever go back to the hideous numbers we saw last winter. that is really thanks to the vaccine. tom: jennifer nuzzo, john hopkins. what is interesting into the memorial day weekend, the debate over vaccinated and unvaccinated. the new debate, a rekindling of the debate, a discussion of how did this begin, where did it come from, and lisa, it has come up the next couple of days in the lab-leak theory. lisa: the theory that was

rejected initially as a conspiracy theory or hearsay is gaining some credence. the u.s. and -- investigating intelligence that has not yet been released regarding this. there is a question of how much this is significant and how much this could change the conversation around the pandemic. johns hopkins public school of public health and eva rogers. -- virologist. >> i think the important thing to understand here first is we want to differentiate where the pandemic started from versus the process that got the virus into humans. i think it is clear this is not a virus that has been engineered by humans. it seems to be a natural isolate. we think the way it became a

human pathogen is because it went from backs into animals and some animals into humans. what the debate is about is the last step -- then the last step because of a person coming into contact with one of these intermediate animals and it launched the pandemic, or is it a situation where a laboratory was working with this under unsafe conditions, there was some sort of lab leak, and that caused the pandemic. working on these viruses for over 20 years, i can tell you the safety precautions that have to be put in place are really quite high, so the likelihood of elaborate leases really, very, very low --release is really very, very low. however, as you mentioned, there does seem to be some movement, political side, and talk about information that has not been released yet, which i think is the big question mark right now. tom: andrew, everyone listening

with pets including francine lacqua can go the other way, if we get covid, can we give it to our pets or for that matter animals of the agricultural persuasion? andrew: excellent question there is evidence that companion pets can be infected. that is probably a result of their owners being inflected. there is not much evidence of the virus moving in on -- the other direction. that is one good thing. when it comes to animals, i think we have seen there are a number of animals that can be susceptible to infection. we have not seen huge outbreaks in those populations, but those are populations we have to worry about, make farms in europe and the u.s. were one example. we have to pay attention because anytime the virus enters another host, it gives it a whole new area to adapt and the virus that comes out of the host may or not

be better at infecting humans. matt: it makes sense that coronavirus that started at a market in wuhan might have come from the coronavirus lab down the street in wuhan, and it is also understandable why you wouldn't want to immediately discuss that. politically it is difficult for china and there is no reason to rock the boat. how important is it to scientists to find out where this virus came from? andrew: it is absolutely critically important and that is why you are hearing some scientist saying when we approach the issue we want everything on the table because we don't want to rule something out for political reasons. i am simply saying the critical thing here is going to be understanding how the virus went from bats into some other animal, and into humans. that will tell us something about the pathway in which viruses can enter human

populations and that can help us prepare better for the next pandemic if we can find ways to limit the exposure. if it happen through a laboratory, that is something we also have to understand, but even if that was the case, it was probably adapting before that. we need to go even deeper to understand how the ecology of this virus resulted in something that can cause such a tremendous pandemic. lisa: as we head into the memorial day weekend, a lot of people say they have been vaccinated, they can be with other individuals without worrying about being sick or infecting others. is the risk of getting ill or fostering a variation off the table if you have been vaccinated at this point? andrew: i would say if you are vaccinated you certainly are protected to a great degree. we have had some tremendous data coming out especially on the last four to five months that shows how good the vaccine is working at preventing severe

disease, symptomatic disease, and even transmission. nothing is 100%. what i really worry about is the 40% to 50% of the population that is not vaccinated right now. we're in a situation right now in the summer that the virus is not spreading as efficiently as it did in the fall and winter when people were inside. i don't want people to get a false sense of how low the infection rate because we are seeing a combination of vaccination and for transmission conditions driving of the rates. come the fall, we may see another surge of cases. it probably won't be as severe as they were last fall and winter but we will see a surge of cases if we don't get our people vaccinated. tom: a professor and one of the nation's great barajas. i think the emotion of having

pets -- jon ferro has gunner -- named after the start of ac milan. matt miller, you have the beast over in germany. matt: i have steve over here. he turned 10 years old. i am not wait about him giving me coronavirus, but we had a big take story on silicon valley working to extend the lives of dogs and i think rottweilers typically live 20 or 30 years. lisa: hold on. honestly, this is just a big ploy to put our durable dogs on the screen right now. tom: this is a ploy that the abramowitz kids are watching and the offspring will go "mommy, mommy, mommy? lisa: you will get on that train really? i cannot deal with a dog. tom: all you care about is your job. get us a dog. lisa: you have a camera in my home? tom: no.

i think matt, you have to agree the abramowitz clan needs one or even a brace of puppies. lisa: are you trying to drive me crazy? tom: we do this in honor of steve. stay with us. futures advanced. this is bloomberg. ♪

♪ >> when investors need to differentiate between is first, where are we in the cycle, second, the direction of the economy. >> people are vaccinated and they are still not ready to go out and do things the way they did them before. >> frankly, no one thinks that inflation is going to be anything but transitory. >> the fed objective right now is managing expectations, and they are doing a great job of that. >> as long as you keep interest rates close to zero, you're destroying everything in capital markets. >> this is "bloomberg surveillance" with tom keene, jonathan ferro, and lisa abramowicz. tom: good morning, everyone. "bloomberg surveillance" on radio, on tv on a friday to begin the summer. no, that's not jon ferro. it's romaine bostick in for mr. ferro. how does a british guy get a four day memorial day weekend? what is that about? romaine: