♪ >> 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: they get all the

breaks, tom. tom: we are thrilled remain could -- thrilled romaine could come in. futures up 17, dow futures up 177, all on the backdrop of a budget proposal that did move yields. lisa: do you remember when we used to be worried about uncertainty in washington, d.c.? there still is a lot of uncertainty, as biden presents his spending plan that is expected to come down to $3 trillion. we don't know if it is going to get passed. we don't know how high taxes are going to get increased to. what is being priced in, and does it even matter at this point? tom: i've got to rip up the script here at this point. romaine: i like when you rip up the script, tom. tom: we are fortunate to have you here because jon, lisa and i really don't care, but we know you do want "the close."

we have another short squeeze in gamestop and imc. is it different -- and amc. is it different than what we saw earlier in the year? romaine: it is pretty much the same thing. the pain will not be as widespread as last time because i think a lot of folks are little bit more hedged. amc has doubled this week alone. got your beyond meats, roadblocks -- or blocks pop -- beyond meats, roblox, and gamestops. tom: who is on the others out of the trade, or more importantly, when does it frame up over a long weekend and such? how do you arrange the other side of the trade to bring it down at some point? romaine: it is basically what happened last time.

the folks short the other side of the trade pulled back. lisa: hedge funds. romaine: are we blaming hedge funds again? lisa: isn't that what you are trying to go for, tom? that hedge funds are going to have a bad weekend? tom: what is kinsler going to do -- what is gensler going to do? it happened once. again? lisa: you have this reddit crowd, folks seeing individuals should be allowed to trade, and others saying you should have more precautions. if they are winning, it is hard to make the case that the sec on the government should protect them. romaine: let them make their money. my barber told me he was all over amc, and i was like, are you sure? then the stock continues to rally. let them become a tom. they are the people -- let them be, tom. they are the people. tom: jon from coventry just emailed in and said do a data check. the vix at 16.73. romaine: you're looking at

euro-dollar, $1.2181. you talk about all the uncertainty in washington. 1.60% on your tenure yield. go back 30 days from where we are today, that is pretty much where the tenure yield was then. go back 45 days, that's where it was, so there's your stasis now because of everything going on out of washington. wti crude making a bid here. we side make a break above $68 a couple of weeks ago, now trying to push back. lisa: i will just say i will never use unch because honestly, it is not that hard to say unchanged. romaine: i don't know. lisa: let's move on and take a look at what we are looking at in the day ahead. a slew of data coming out in 90 minutes. personal income, personal

spending, and the core pce, the key measure of inflation that the federal reserve looks at. the expectation is for it to increase the most year-over-year going back to the 1990's. at what point can we say we are seeing something more than transitory? 10:00 a.m., we get may consumer sentiment data. this is what i am looking at an terms of consumer expectations. how much could you see those expectations rise and affect consumer behavior in the near-term? that might have even more legs than some of the data that at this point is already backward looking by nature. today, president biden planning to unveil his $6 trillion spending plan. he is also going to be talking about the tax hikes we could potentially be getting. the green book going to be released by the u.s. treasury department. i'm interested in how much pushback he gets even from his own democrats. tom, what would you like to say? tom: with the importance of our

guest, we have to get right to it. edward morse will be with us later on commodities, and in this moment for the equity markets, dean curnutt joins from macro risk advisors. you are so good at this with the chicago finance you've got. what is 16.72 describing to market participants? dean: it is telling us the people who own options are finding them very difficult to own. volatility is an asset class. the vix represents the cost of something. it represents the cost of insuring a portfolio in s&p 500 stocks, and right now the calculus that the trader on wall street is doing as he or she heads into a long weekend and do seeing a market stuck at 4200, by holding these options for three or more days, am i going

to more likely than not make or lose money? the answer people are ending up with right now is i am going to lose money. the time to gay -- the time decay is enough for people to jettison the options that they buy, and secondly, the options they are forced to buy, let's say from a hedge fund or an investor that wants to sell options, they are not apt to do that because the feedback mechanism has been negative for folks who have owned options recently. lisa: is it dangerous, this idea that anyone who does try to bet against this market, the smelt up is getting slammed again and again? dean: i think that option trading and hedging is really about process and discipline. in all of that, but i keep coming back to is hedge when you can, not when you have to. right now people don't have to hedge. however, what is happening as well is the prices, the vix is

coming down. all of the corollaries to the vix that represent premiums for insurance, whether it is an fx or interest rates, commodities, they are all coming down as well. so it is a good opportunity to ensure the portfolio even as things feel like they are stabilizing right now, and that is really our recommendation to client area let's spend some time really looking at the set of risks that are out there and then make a judgment as to where you are supposed to spend some insurance premium to protect the portfolio, which for me, it is inevitable that we will see at least several more bouts of disruption as we try to get the fed to land the plane safely. it is an incredible difficult task ahead of them. romaine: as we look for the fed to land that plane, you have to understand where the market is pricing those inflation expectations. it doesn't really seem in sync right now, despite the

communication we have gotten from various fed members and despite what we are seeing with guards to how risk assets are priced, as well as how options are priced right now. how do you protect yourself? dean: i think you make a great point that inflation expectations are prices that are discovered in the market, and as i think we step back and look at the fed's goal of reacting, they kind of want to wait it out, but market prices don't wait things out. one of the chief concerns i have is that as you start to see people doubt the fed's credibility was its supposed admission on inflation, some of those expectations are rising away that is not good. the basic way to protect your portfolio is to do some version of a put option if that is what your concern is going to be rates are incredibly low, so betting on them going up is

based on the starting price. so that is interesting from a cost perspective. tom: lisa abramowicz this weekend diving into sheldon bateson berg's classic pricing textbook. she is trying to get through half of it this weekend. this is the one volume bible of the current -- of the curnutt world. have we forgotten what gamma is? dean: what is so fascinating in the equity derivatives market is there is a real dichotomy. the vix is falling very quickly. i think at least potentially it threatens a new low unless the market starts to move more on an indexed basis. there's this other side which i think is really important to watch, the explosion of the meme stocks. it is the tale of up shocks in these stocks, and wherever these

big movements in stocks, this going to be big movement in options prices. so we have designed an index that just looks at the volume of options trading in the meme stocks, and it turns out this index peaked at the exact same time the vix did in january of this year. as that volume came out of the market, the vix collapsed as well. what we are seeing over the last five to 10 days is that volume index is starting to come back up, and we just wonder if you can have this one corner of the market that is extremely explosive from a volatility standpoint and this other that is real sleepy, so we think this is an indicator to watch. tom: really fascinating, and great to have romaine bostick here with us to give us some wisdom. a lot of people talk to me about how do you get better at some of this stuff fast in options pricing. that is still the one book. lisa: that's why when my kids

ask me for a dog this weekend, i am going to refer them to nate and berg's book on volatility. tom: it goes throughout the, beta, gamma, chevy vega. it is all there. futures up 17. stay with us. this is bloomberg. ♪ ritika: with the first word news, i'm ritika gupta. since we public and's are poised to -- senate republicans are poised to block the creation of a special committee to investigate the attack on the capitol on january 6. senate republican leader mitch mcconnell has spoken against it in recent days. world leaders and envoys will take part in the

partnering for green growth to lay out new agreements at the talks in glasgow in november, wooden signatory countries are expected to boost pledges to the paris agreement goal. and pledging additional support for businesses and individuals affected by coronavirus restrictions. officials have reimposed some lockdown measures in singapore. singapore's economy has been hit hard by the pandemic. bank of japan governor kuroda is joining the chorus of central bankers chiming in on bitcoin. following its latest surge and slide, he said most of the trading is speculative and it is very you -- it is barely used as a means of settlement. jerome powell said in april that crypto's were merely a

vehicle for speculation. global news 24 hours a day, on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i'm ritika gupta. this is bloomberg. ♪

♪ pres. biden: in the coming weeks

my administration will take steps to relieve these supply construction -- these supply constraints. tom: the president yesterday on the shores of lake erie. it was torture yesterday for josh wingrove, out with the president at keio got -- at tioga community college, blocks away from the rock and roll hall of fame. did you stop as you exited? josh: no, we got to stay that -- we've got to save that for next time. we did stop for ice cream, joe biden became one of his impromptu -- joe biden making one of his impromptu stops for ice cream. tom: i do want to talk about this generational moment have a president saying rising wages

are a feature of, to use a phrase from obama, a better america. how critical is rising wages to washington? josh: this was him pushing back against republicans that juiced up unemployment benefits are hurting labor supply, picking it impossible to find workers. he could have been dancing around that, focusing on saying if they get a job offer, they have to take it. but yesterday he went much farther and said not only are we fine with this, we like this. this is a feature, not a bug. we want companies like mcdonald's and home depot to be fighting for it, and he wants those wages to go up. he stacked his economic team with people that come from that sort of labor wage school, so i think they are really leaning into this one. that other clip you played i think really popped. that was news that they are

going to do something in terms of bottlenecks. what can the government do on that? we don't really know, but they are teasing it at least. tom: greg valliere features and his atf note this morning the criticism this is monetary theory. it is a theory run amok. is this a theory proposed by the white house, or is there an actual structure, a due ability of this to get to the actual budget? josh: we are going to obviously hear about the budget today, and they would say there's a theory. i don't think they would just say they are winging it. a lot of the proposals have pretty long legs. we will see how it stacks up against what congress is actually going to past but i think broadly, biden does see this repeatedly as a crossroads, almost like an fdr type moment to reset the american economy. they make no bones about that.

they want to reorient it in favor of workers and reject against what he sees as unnecessary stock buybacks, high ceo pay. lisa: what does he get from releasing the budget before a memorial day weekend rather than monday morning, when senate is in session and everybody can really hone in on the details. josh: i have not heard them explain their messaging other than that it seems to be the process they are on. we know the families plan, but is probably even less likely to pass, all of those are over a decade, so they are going to focus on a broader fort of averaged out number.

biden today will go to virginia. he's probably going to talk about what is this is are doing to get vaccinations. that's the backdrop here. the only reason the economy is growing like it is is because of the return from the virus. lisa: we are getting some pretty contagious debate. yesterday's proposal from republicans, the headline number was near $1 trillion. the actual new spending they are proposing is less than $300 billion, about 1/7 of what joe biden is proposing. what are the chances of some sort of agreement in the near future on even infrastructure? josh: that's the million-dollar question right now because they remain pretty far apart. there are now almost dueling camps of senators. biden has said the clock is ticking.

he's going to talk with shelley moore capito next week. can they close the gap? there have been signals from republicans that there is something in the 1.2 range that they would pay for. romaine: those two numbers we have on the screen, definitely a little bit of washing on both sides. i'm curious about the republican side of this equation here because they themselves are almost pitching this is a $1 trillion plan, despite the actual price tag attached to this bill. yesterday we saw biden holding up that sheet of paper that he said had the names of republicans that had been out there touting the success of his proposals that have already been out there, despite the fact that they are publicly dissing those proposals. josh: they have been falling back over and over on the fact that it matters less what republican lawmakers think than

what republican voters think. that is how they reframe the idea of bipartisanship. there's just not a lot of appetite for republicans to move to the numbers he wants. the incentive just doesn't seem to be there. romaine: there may not be an appetite to do it politically, but is the point that these programs are popular with the public, the people actually being helped by it? josh: he's trying to bump all the mummers of congress on the head who are voting against this stuff when they go back to their district and i click they have delivered a windfall. romaine: everyone just needs to get an ice cream cone. josh: i would love that. maybe a little early in the morning. tom: josh wingrove, really appreciate it. i look at this fiscal policy and the analysis, and all the usual players are going to dance their part, but you really wonder where we are at the end of july

when we are discussing this out. timmy, the total mystery with the scale of the numbers. lisa: terry haines of pangaea put out a report yesterday after looking at the counter proposal from rube lukens, and said he gives it a 60% chance of some kind of infrastructure deal getting done. he basically said nobody in washington cuts a deal before congress leaves town unless they want the deal to fail, so it was actually a good sign, according to him, that you get it signed and delivered ahead of the weekend. tom: it is day after day we see the lift in the futures markets. something we haven't talked about this morning, the continuing assent of the asian currencies. it is very subtle, very nuanced, but renminbi three days and around pups out on yuan. that is a very strong chinese currency.

other currencies clearly ascending. that will be one of our themes through the morning. ed morse on copper. this is bloomberg. stay with us. ♪

tom: "bloomberg surveillance," good morning, everyone. with us, romaine bostick. edward morse will join us from citigroup on commodities any moment. some stability in oil through the week, just under $70 a barrel on brent crude. i believe i heard matt miller talk about gasoline on this memorial day weekend, up near a 10 year high. we will have to discuss that as well. i would also note, as the dollar is churning here, within that is strong renminbi. we will get to that any moment with dr. morse. futures will never go down, and now to explain all that matters with gamestop, amc and the rest of it, mr. bostick.

romaine: i'm actually going to start with ford because this is the other meme stock rallying. tom: ford is a meme stock? romaine: it is now. right now up 2%. doing work over there to try to pivot this company towards ev. investors seem to like what they hear. this is a company now firmly in the conversation about not only making ev's, but really leading in the ev space. this is a company a lot of people think can actually go punch for punch with tesla in regards to what it offers and how it offers it. those shares up 2.3% in the premarket, at the highest level we have seen in several years. keep in mind, this has been one of the biggest laggards out there. if you missed it, yesterday amc was up 30%. it is up 15% in the premarket, above the $30 level. i don't know if that is an entry point or an exit point.

it will be interesting to see whether the short squeeze actually holds into today and may be the weekend into tuesday, when we come back, with monday being a holiday in the u.s. virgin galactic having a phenomenal week. tom: a meme stock? romaine: up a whopping 0.5%. tom: is there any stock that is not a meme stock right now? romaine: absolutely. i will show you some non-meme stocks. this is old economy. bowing down 1%. --boeing down 1%. apparently they are pausing deliveries of their trade mark 787. hp, remember this? this is a company that makes pcs, printers. those shares down 6%. and salesforce, i guess that straddles the old economy and the new economy. shares up 5% after earnings.

tom: with the brilliance of "bloomberg surveillance" on this show, anaconda copper is a meme stock. the only one who remembers anaconda copper other than me would be edward morse of citigroup. dr. morse on the geopolitics of oil, but this morning we focus on commodities. it is not in the headlines, not above the fold in the new york times or the washington post, but it is china ascendant. we see the you on -- the yuan making jump conditions. does it signal finally a commodity boom? dr. morse: there is a commodity boom. i don't know if that is signaling it. what is really signaling it is getting out of a recession, having the most remarkable recovery following the most remarkable recession given the pandemic. this one is especially so, given

the depths to which demand had fallen last year. tom: tell me the inventory rebuild out there. it is always a mystery in china. what is the dynamic of inventory of copper, iron, and the rest of it in china right now? michael: dr. morse: in been -- dr. morse: inventories are really low. the question is, how low can they stay, and for how long? it looks like they will stay low for a long time. we look at the scrap market for steel, the scrap market for copper, and they are at record levels. that is an indication that the inventory of things that go into those products are not available. lisa: just to dovetail both of tom's questions, there's a question of how much pricing power china still has over the commodities complex. especially as developed markets engage in infrastructure spending, do you agree? dr. morse: yes, i do agree.

we have seen it in the chinese effort to tamp down speculation. they announced they were going to tamp down speculation and volatility prices go down. but then the real inventory situation picks up. china is looking for lower-priced commodities, and they don't have the power to do that. lisa: there's also a question of whether you can have a commodity super cycle without the participation of oil. could you have participation of oil if you have such pushback by investors on the likes of exxon and shell becoming a greener operation and adapting to a world trying to fight climate change? what is your view on the outlook for oil given that backdrop? dr. morse: i agree that you can't have a super cycle without oil being part of it, and all super cycles we have seen have had massive disruptions in oils by. the reason that is important is

that all commodities are energy intensive to a dramatic agree. takei commodity and it is going to be energy intensive. but then we look at the horizon and there are two things that are fighting each other. one is demand is not growing the way it used to grow. we are in a recovery, but we look out to 2030, and the big debate is how far away from the historical growth level and demand, how far down as a going to be area then we look at the supply side, both medium and longer-term. we have opec countries, saudi arabia and the uae in particular , increasing production capacity. we have a market petering at the cusp with the united states.

with oil coming back some point between now and year and a. we have oil everywhere, and the pricing is lower because of the technological revolution that took place with the last super cycle. i wouldn't say this is going to be a write off of oil. romaine: so it may not be right off of oil here, but with regards to the pressure on a lot of these fossil fuel companies, the idea that they should be pivoting more towards renewable energy in some way, or at least hedging their bets with regards to the outlook for oil demand, is a little premature now for these companies, those companies that have traditionally relied on fossil fuels and made their profits off of fossil fuels to make that pivot? dr. morse: it is not premature to make the pivot to the carbonized -- two

decarbonize. the carbon icing what is needed in fossil fuels are needed, it is wishful thinking to think that the world is going to grow on power generation that is not based on renewables. so we are in a world where we have to live with fossil fuels. an unfortunate part of the way things are pricing is that oil is prelicensing -- is pricing below its contribution. romaine: when pushing into more renewable forms of energy, with all of the talk we have about ev's come a part of the commodity boom we have seen of late has been directly tied to that, with some of the industrial metals and minerals. dr. morse: undoubtedly the

demand for power generation is ubiquitous. you take the european union economy, the u.s. and china, they are all moving towards that ev world in an accelerating way, and that requires more power generation. what do you need to do that? you need nickel, lithium, copper, aluminum, cobalt and manganese, so it is a commodity intensive environment, particularly meadow intensive. tom: one question that comes off of our interview with andrew horst in australia on green hydrogen. he's putting money into green hydrogen. do you buy, as a carbon guy, the future of green hydrogen, or is it a myth? dr. morse: it is by no means a myth. the question is how quickly will

we see the cost structure coming down. there are two major cost structures there. one is the cost of renewables. they are going down. but the electrolyzer, the big thing we are waiting for is economies of scale. we are seeing electrolyzers really made in a build out -- really we have not seen a buildout of the scale that is required. the question is going to be location. where is the going to be the culmination of electrolyzer availability and non-interruptible wind, non-interruptible solar? australia is very well-positioned on the renewable side. tom: we look forward to speaking with you as we launch through the summer a commodity boom. i look at where we are on bloomberg green and the idea of looking at theory, but also full to get into price theory and

price economics, and bringing it down to where it is even remotely feasible. lisa: this has been one big conundrum for this year, that some of the input metals have surged, which puts a back in the quest to get greener. i just wonder how we are going to resolve that. romaine: back to ford, the ceo was talking about this wednesday at that investor day. part of what they are trying to sell is this idea of better efficiency with the use of those materials, so the idea you go from 100 kilowatts per hour from those batteries in those ev vehicles, and go down to something like $80 per kilowatt, maybe that blunts the impact of what you're doing to their. tom: what a shock at exxon mobil to see climate change come in and readjust the board. romaine: absolutely. lisa: it is not that shocking when you take a look at esg at some of these big firms.

what are they going to do about it, though? tom: the pendulum of yes g, it has been an esg week. john sorrow -- jon ferro says, the data check. [laughter] stay with us on a friday to begin your summer. this is bloomberg. ♪ ritika: with the first word news, i'm ritika gupta. the russian hackers behind the solarwinds campaign have escalated attacks on think tax and nongovernment -- think tanks and nongovernmental institutions. president biden ordered sanctions against 32 russian individuals and six companies that provide support to the kremlin's hacking operations. japanese prime minister yoshihide suga is extending a state of emergency for tokyo and other major cities to rein in covid infections

ahead of the summer olympics. many are worried the global sports spectacle could turn into a super-spreader event. japan has one of the slowest vaccination programs in the developed world. boeing has halted deliveries of its 787 dreamliner again as the plane maker works with regulators to resolve quality issues. the company is working with the federal aviation administration, and says it has no impact on the fleet already in service. as we begin memorial day weekend, gas prices in the united states are at their highest level in seven years, but experts don't expect to see prices at the pumps to keep your motorists off the road. there is pent-up demand for travel. aaa estimates 37 million people will be on the move this weekend, up 60% from last year.

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. ♪

♪ >> the fed emphasized that it would maintain an accommodative

stance on monetary policy so that inflation remains at 2%. it will take time to overcome low inflation once it is unchanged. this is a lesson learned from japan's experience. tom: the stability he has given to a japan in turmoil has been extraordinary. this is his eighth year as governor of the bank of japan, and mr. kuroda is 76 years old. he has been there rock through all of their domestic politics. our rock on equities and charts, david wilson. as we begin the summer, david wilson saying one more boring chart to get us to summer. you've got a bull market. dave: absolutely. looking at the second year of old markets for stock -- of old markets -- of bull markets for

stocks. we looked at 10 bull market periods going back to the 1950's. tom: a bar chart. continue. dave: first year average gain for the s&p 500, 35%. second year, less than 13%. there is only one case in which the second year was better than the first. that would have been after the 1987 crash, a bull market that started in december of that year. also figuring you are going to get more volatility. look at where we are now. that 13% average for the second year, we are already up more than 7%, and bear in mind we are talking about from the day of the low in each case, so you are talking march 2022 2021 -- march 2020 to 2021. tom: ben laidler talking about a

three year double-digit return. i'm not going to pin you down on that data right now, but i need you to come back in june and tell us about laidler's theory of how rare this returnees. dave: well, i will tell you. lisa: he's crying. tom: just incredible. david wilson, thank you so much. right now, in honor of the summer, we go to sunol he bassett -- go to sonali basak, having that new tele--- having that new tele -- having met -- having that nutella latte out there. what an odd summer it is. sonali: summer was over before it began. sorry everybody, it is raining

this weekend before they get to enjoy coming back to the office june 1. citadel does expect everyone starting to come back. people have already been coming back. bankers are telling me and their clients that they are turning away work because it is so busy. we expect starting on tuesday a lot of work, a lot of people getting on planes, seeing clients. tom: what's the ramifications? i talked to an intern at morgan stanley. she's going to be at the office. all of the fancy guys in fancy suits and ties go to the office. in the middle, do they really want to come back? sonali: first of all, people are dressing more casually. i'm noticing that right away. so maybe ditch the tie. [laughter] lisa: you don't even know what you are asking for, sonali. it is going to get rough in here. we are hearing both that it is going to get really busy over the summer with people heading back to the office, and on the other hand you've got the likes of citigroup having worker

appreciation day today, saying everybody take the day off because we know you are beat. so which is it? our people beat, or are they ready to go back to the office? sonali: they are beat. everybody is exhausted. [laughter] but that is why you take today off, you have a good weekend and a proper monday because it will be busy starting next week once again. we are expecting a huge slate of deals, all in full force. there are some firms, hedge funds that are saying come back in september or even next year, and you could have some work/life balance working from home. but again, goldman sachs, june 14. that is the day that they expect. tom: we had david kostin celebrating with his whole team in the office. lisa: are you surprised by how many banks have brought employees back to the office

sooner than you previously expected? sonali: i am not because a lot of people at the executive ranks have been back for many months now. i think anybody pushing to stay at home have been isolated from their teams. once the cdc dropped their mask rules or recommendations, we have seen some banks also dropped those rules, so people are back to work. the restaurants are open again. people are in a different places, so all of my sources from miami are still in miami. romaine: they will be back in new york, i'm sure. the real question is what is traffic going to be like come tuesday. sonali: it is exhausting already. romaine: i'm i going to be able to get an uber? sonali: no, i've been walking home to try to escape that. the trains are full. the traffic is crazy. tom: if you appear on "surveillance" three consecutive

days, you get to use the "surveillance" course. tom: sonali basak, thank you so much. see you at left-hand coffee way out in the hamptons out to montauk. see how i nailed that, lisa? lisa: nailed it. when was the last time you were at the hamptons? tom: they know i am transitory, i'm not a big fan. lisa: you are above 59th street kind of guy. tom: i murmured in june, we are supposed to go up, the gentleman from rbc capital markets up the coast of maine. lisa: all the way to 97th street. [laughter] tom: i made it down to soho this weekend. but seriously, they do not have

nutella lattes in maine. lisa: you are starting to feel a buzz. romaine: you walk up and down the streets here, and you can feel it. i welcome the other day up park avenue. tom: this is critical. you do this on "the close." do you see a reset and the equity market because people are assuming better growth than the caution of two months ago? romaine: absolutely, and you are hearing from strategists saying now is the time for a little bit of a re-think. we have key economic data. next week, big jobs report. lisa: is it just that everyone has been sitting in triple leveraged cash? romaine: we will let tom work out his levels. tom: jon ferro off today. he's going, what is happening? chris chris anti--- chris --

chris grisanti of mai will join us in a bit. this is bloomberg, on radio and on television. ♪

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>> everything is in place for inflation to rise, and i think it is going to rise significantly enough to make the fed uncomfortable. >> quite frankly, no one seems to believe inflation will be anything but transitory. >> the fed's objective right now is managing expectations, and they are doing a great job of that. >> as long as interest rates are close to zero, you are destroying everything in capital markets. >> you step back and look at the fed's goal of reacting, they want to wait it out, but market prices don't wait things out. >> this is "bloomberg surveillance" with tom keene, jonathan ferro, and lisa abramowicz. lisa: