>> i think we are going to be shocked at some of the inflation views over the next few months. >> we look at the economic data, and so far, so good. >> so what we've got is just a great reshuffling. >> i see inflation in commodities. i see inflation in some supply chains, some goods. but there is no generalized increase in inflation. >> monetary and fiscal policy have adjusted to all of those demographic headwinds. >> this is "bloomberg surveillance" with tom keene, jonathan ferro, and lisa abramowicz. tom: good morning, everyone.

a simulcast, bloomberg radio, bloomberg television. it is an interesting day deep into the month of june. 6:57 a.m., we even got a 1.500 and handle on the 10 year yield. that doesn't scream inflation. -- a 1.59% handle on the 10 year yield. that doesn't scream inflation. jonathan: 1.60% now. we've asked repeatedly through this morning, is the calm1 of -- is the calm of q2 the calm after the storm of q1 or before the storm of q3? tom: you get a lot of different fed speak out there. we get ecb speak as well. i would suggest central bankers are running as blind as we are. we just don't know where we are come september. jonathan: it's different responses, different reactions

we have had from different central banks. the bank of canada compared to the federal reserve. we had different reaction functions, different frameworks thinking about incoming data, and it makes the fx market may be in the future just a little bit more interesting. tom: our erik hertzberg out of toronto talking about the disappointment in canadian gdp. it is still out there. there's optimism of a boom, optimism autosales today we will see before the big jobs report on friday, and yet there are these whispers of disappointment of underperformance. lisa: there is so much cash out there. the federal reserve buying up $120 billion every month, basically printing money. fiscal stimulus, monetary stimulus. this cash is being seen sloshing around, and banks don't know what to do with it. it is going into financial

markets. we are not yet seeing people save their -- people spend their savings that they want to see. will they do so as we get further into post-pandemic land? tom: 24 digits, 1.5 -- to four digits, 1.5 976%. in the united kingdom, i am baffled by the debate given i believe we saw zero deaths yesterday. jonathan: there is some concern around variants, some concern that does not exist here, and for that reason they are a little bit more hesitant about continuing the process. but for the people of the u.k., the feeling is exactly the same as many in the united states. let's get back to business. let's get moving again. tom: i try to be sophisticated on this, my knowledge of the tots and all that. let's stunned them with a data check.

we've got green on the screen, and that is important. it's a better tape than two hours ago. what i would suggest is a vix 16, onto the angst of 17. i'm going to call college one big turn that's one big churn. jonathan: there's your 1.5 9 -- one big churn. jonathan: there's your 1.59% handle. tom: the thought leaders routinely quote the dow jones industrial average. [laughter] jonathan: do they? can you name a thought leader that does that? lisa: yes, thomas keene. [laughter] tom: all three of us are like, yeah right. we thank daniel yergin, who is not a thought leader. he owns the high ground on oil and was brilliant on brent at $71.07 a barrel.

we are going to piece things together, looking forward with investment. daniel morris joins us, bnp paribas asset management. what have you changed in the last seven days? what has been the distinction of your call over the last seven days? daniel: i would like to think we have data that allows us to mckay big change over the last week, but i think that would have been a mistake. i think we are really waiting on the nonfarm payrolls data on friday. that is going to be a key data point. there's a lot of questions about the outlook for the u.s. economy, about the rates, about fed policy. given what happened last month with that huge disappointment with the april data, we need to get a confirmation that that really is the underlying dynamic . jonathan: that data point on friday, what questions exactly canada answer -- exactly can it answer? daniel: the fed has said for a while now that this inflationary

surge is temporary. we believe that, the market believes that. but that the timing to begin to talk about tapering, and then do the tapering and then raise rates, depends on the recovery in the labor market, and the data we got last week told us that is going to take a lot longer than we thought. so we need to get an idea of the speed of what that recovery is, and that is going to have a big impact. lisa: the idea of one data point being determinative in any way, given the fact that there has been so much noise that we got that incredible disappointment last month, fed officials say they are going to be patient and look through any noise. there is something specific within it -- is there something specific within it? daniel: you're absolutely right that we don't want to focus on any single data point. i think the reason we are paying

more attention than we might normally to this particular month is, number one, the fed has talked so much about the timing of their next policy moves, and number two, that the number last month was so shockingly bad. instead of the one million jobs we anticipated, you got 260,000 some. that is not a small miss. we just want to see where we are calibrating. it is not going to tell is every thing that is going to happen, but it is going to be an interesting one. tom: i want to go back to philip caray, associated with pioneer funds of boston. he always talked about the bright lights of inflation. are we back where inflation can assist to a better nominal gdp, which assists a better business enthusiasm, which assists the stock market? daniel: i think our view is that after we are through the

distortions that have come out because of the lockdowns and distortions from all the fiscal stimulus, we are going to be in a place that is not radically different from where we started out. certainly in terms of inflation, we are going to be back to conceivably the fed still missing its 2% inflation target. we can talk about what this all means for the long-term growth in the u.s. economy, but certainly a big issue now, and we are looking at ways to hedge your portfolios against this near-term inflation risk. a year from now, i friendly don't think we are going to be talking that much more about inflation. jonathan: ken morris, back in the office -- dan morris, back in the office it seems. daniel: indeed. if you look at retail mobility, if you are out on fifth avenue, in london on oxford street, you would say it is all normal. people not wearing masks, shops very active, sales nearly back to pre-pandemic levels. if you go into business centers, i'm in the center of london,

streets are still pretty empty, very light traffic. a big contrast between where people are living and working in the business centers, so there is still some room to go here. lisa: where is your biggest conviction trade right now? daniel: our over rates are generally -- our overweights are generally still to risk. we know valuations are stretched, and the way we think those come back into line is we continue to get this earnings growth, but the prices don't appreciate as much. that said, we are overweight u.s. value and overrate cyclical markets like em and japan. we are still waiting to play some of those reflation trades that have come a long way, stepped back a little bit over the last six weeks, but still counting on then coming back over the last quarter -- over the next quarter. jonathan: what a great location, just around the corner from the lynn mark hotel, just away from the buzz of the city of london. looking forward to getting back there soon.

dan morris, bnp paribas asset management chief asset strategist. nice hotel, nice park. get to live in west london. commute is not too bad. you could see why people want to work there. tom: the traffic in london i would suggest is so much better than new york because i stayed once in west london, and it was a real problem to get to the city. jonathan: where did you stay? tom: i can't remember the name of it. it was near devon needle, seven dial. jonathan: did it rhyme with sprits? -- with spritz? tom: no, it doesn't. [laughter] jonathan: i've got a great video of us in a bar in zurich. it is this grand fiat bar, and all of these expensive bottles, and this nice music playing, and i panic across the bar -- i pan across the bar, and there is tom

sipping a martini, and he looks and he goes, "motel 6." [laughter] lisa: that's gold. jonathan: it is fantastic. up later, greg valliere. your equity market pretty much unchanged this morning. we advanced 0.05 percent. that calm extends from the equity market to the bond market. or maybe from the bond market to the equity market. 1.6011%. lisa, i think there is still so much up for debate still that we don't have the conviction we had at the start of the year, and your starting point matters as well. lisa: i agree. jonathan: your starting point matters. if you start the year with yields 50 basis points above where we are right now with the view that things are going to get a lot better, you reprice that through q1, and now we reprice that through q2. tom: that was full of thought leaders. jonathan: do you want me to expand on that? [laughter] lisa: i can't wait.

jonathan: not that mrs. keene once me to, either -- mrs. king want -- mrs. keene wants me to, either. alongside tom keene and lisa abramowicz, i'm jonathan ferro. just dropping bombs this morning. this is bloomberg. ritika: america's largest meat producer will have the majority of its plans open today after a cyberattack. according to a union official, the cyberattack force to shutdown of all of jbs' u.s. beef plants, which accounts for almost 1/4 of all u.s. supply. the u.s. and china have taken another step towards restarting trade and economic talks. treasury secretary janet yellen and vice premier liu he had what they described as frank

discussions in the first call. so far, the biden adminstration has retained much of former president trump's economic policies towards china. that includes no reductions in tariffs. president biden meets today with the top senate republican negotiator on infrastructure, shelley moore capito. the administration has set june 7 for the deadline for a deal. the republicans have countered the president's proposal with a $900 billion offer, but that taps unused funds for coronavirus. that may make it unworkable. the new ceo is chief operating officer done a can, if active immediately. shares of amc are soaring premarket. the movie theater chain extended gains it saw and its tuesday

session after raising $230 million in a stock sale, but we know bloomberg then learned that they turned around and sold all of its stake after concluding that amc is overvalued. 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. ♪

♪ >> right now the system can't hold the amount of cash it has without change, so we left the

temporary change we put in place during covid expire, and we are considering whether we need to do more. that would be the reason why. it is just a wholly different situation than the system was calibrated for. jonathan: from new york city this morning, good morning. alongside tom keene and lisa abramowicz, i'm jonathan ferro. your equity market up three on the s&p 500, advancing almost 0.1%. yields unchanged at 1.5928% on the 10 year. the euro-dollar, $1.29, heading south by 0.2%. crude up by almost 0.9%, $68.30. tom: we going to the jobs day, that economic data, and then into the friday report, widely anticipated. dan morris of bnp paribas talking that up. right now all inflation -- right

now on inflation, greg valliere joins us of agf investments. really can't say enough about it yet i want to go back to with -- go back to whip inflation now, and i really don't know if we will have another bout of that here, but inflation is treated differently by the gop and by democrats. discuss that. greg: first of all, i am old enough to remember the 1970's, when inflation did tremendous damage to jimmy carter's presidency, and i do think it is a real vulnerability for joe biden. we all talk about the impact of the fed or the markets, but there is a big political impact. you see an extreme shortage of meat. you see gasoline prices higher. you see a really acute shortage of labor. you see housing prices on fire. i think a lot of consumers will look at this stuff and tend to blame the incumbent president. tom: $70 a barrel on

print. explain the pop -- on brent. explain the politics of a gallon of gas. greg: people see it. there was a house that went for $1 million above the asking price. everywhere you look, you see signs of it. the republicans, who have been desperate for issues that would give them traction, may have an issue. lisa: what are the politics of higher wages? greg: that as well. i think when you see stories like the bank of america paying $25 an hour, when you see stories about bidding wars by companies, people are saying i've got to pay all these higher prices, i need higher wages. i think that is the big issue for the fed. it is wages. lisa: inflation has been highly political, and the way we normally talk about it is that republicans have been raising the issue of inflation to put back on some of joe biden's plans. but you are saying that the here

and now i've inflation that we are seeing in commodity prices is already eroding confidence in some of the spending. is that what you are saying or what you are hearing from the polls? greg: yes, i am hearing that the republicans, who need issues, if they can say the reason why we've got high prices everywhere you look is because of the bite and spending binge, i'm not sure i believe that, by the way, i am not sure joe biden is to blame for computer chips in short supply, but republicans may try to link the issues to bidens detriment. tom: west virginia is such an original and interesting state. we have two senators with uncommon power. explain the power of the senators from west virginia, even as one meets with biden today. greg: you start with the fact that it is among the most conservative states in the country, so joe manchin, a moderate democrat, can't stray

very far. shelley moore capito will be at the white house negotiating with the president or get can't stray very much either. -- with the president. can't stray very much either. ironically, their state needs a lot of money for infrastructure, but they would be reluctant to sign onto a plan that the democrats support. that said, they are getting closer. late last week, the republicans came close to $1 trillion. biden has come down to $1.7 trillion. i wouldn't be shocked to see a deal start to come. tom: you think they will defeat gridlock with this legislation? greg: it is not going to satisfy the progressive left. they are going to be very upset. but biden has to do is say i will take this now. we will come back for more. maybe the next bill, we will use budget reconciliation and shove it through congress. but i think ida needs a win -- i think biden needs a win. i thing a deal is doable. lisa: is he losing popularity among his own democratic party,

or gaining some clout as he moves towards a compass and something? greg: -- towards a compass and something? greg: number one, his overall numbers are pretty good, even with voters that are conservative. biden is well into the 50's. trump never got there. but among progressives, there is growing suspicion that he may opt out a very aggressive deal and go for something a little more modest. that worries the left. lisa: i just want to wrap up talking out the hacks that have affected both meat processing and previously the colonial pipeline. we have seen some pretty big kinks thrown into a supply chain that is already constrained as a result of these malware events. i am wondering what the u.s. response you expect to be, whether it is against russia, or whether it is just creating a better barrier on a national level. greg: first of all, the meeting between putin and biden on june

16 is going to be pretty chilly. i don't expect any big breakthrough. i think biden will threaten to retaliate. i think relations between the u.s. and russia could get worse before they get better. jonathan: greg, got to leave it there. greg valliere of agf. getting some comments from the prime minister in the u.k., boris johnson. nothing in the data to delay the lockdown easing on june 21. still need to work out the impact of vaccines. the british prime minister, boris johnson, saying nothing in the data to delay the reopening on june 21. tom: i believe deaths are near zero. i believe the single shot vaccination rate is world leading, maybe with israel, i don't know. what is the point of tension? jonathan: the data on vaccines is still ambiguous. there is a concern about the very end first identified in india becoming the u.k., and the vaccines not standing up to it.

i am with you, the more recent data has been somewhat encouraging. the prime minister making the case right now that there is nothing in the data at the moment to delay the lockdown easing on june 21. he goes on to say that scientists say they need to leave the decision a little bit longer. tom: do the three of us agree that we are not having this in america? jonathan: we are clearly not. not my opinion. just go out there and you can see it for yourself across the united states at the moment. lisa: things feel that much more normal, and you certainly see more normal air traffic. i thought this column by tyler cowan, an economics professor out of george mason university and a bloomberg opinion columnist, i will just redo this headline. it talks about the skew of people taking undue risk, going and eating out when covid was a bigger concern, and now people wearing a mask when they are jogging alone in a park in an

area where a lot of people are vaccinated. jonathan: the prime minister saying we must remain cautious on international travel. it is unbelievable we haven't worked this out. coming up, lara rhame of fs investments. equities up 0.1% on s&p. heard on radio, seen on tv, this is "bloomberg surveillance." ♪

(announcer) back pain hurts. you can spend thousands and still not get relief. now there's aerotrainer by golo. you can stretch and strengthen your core, relieve back pain, and tone your entire body. (man) and you're stretching your lower back on there. there is no better feeling. (announcer) do planks for maximum core and total body conditioning. (woman) aerotrainer makes me want to work out. look at me. it works, 100%. (announcer) find out more at aerotrainer.com. that's aerotrainer.com.

jonathan: equity futures session highs. good morning. your equity market looks like this. we advanced seven points on the s&p 500. in the bond market, yields lower almost one basis point at 1.50 977%. interesting commentary from caterpillar. the ceo saying we are seeing better component availability. demand is strong, can you meet with supply? caterpillar saying we are seeing better component availability. that stopped inching a little bit higher. tom: i go further than that and say it move the market future -- it moved the market. futures now up seven. jonathan: i'm not shirt move the

market, but i will say it is a breath of fresh air. tom: 10 year yield 1.5994%. lara rhame joins us with fx investment. she is definitive on foreign-exchange and is taken over as chief u.s. economist. i love your research note where you say here is one of the fears. i want you to talk about the fear everybody has. a "policy mistake." what can jerome powell get wrong? lara: there is a lot that can go wrong at this stage. i feel like everybody always labels me as a pessimist, but what is the point of another person telling you the economy is strong? we have to look at what could go wrong. what is because the end of every expansion we have had? it is rates going up too fast or inter-business cycles.

we have had miscommunication that has part significant volatility. that is an area where the fed is trying to be much more regimented. let's face it. they have not started the discussion, which is how they remove policy accommodation and what it will mean at a time when the economy is already facing other constraints. jonathan: tom: -- tom: if they have to move, -- tom: if they have to move, delay move with the greenspan approach, or they have to go back to burns and get one jump conditions to go back to something in the textbooks? lara: i think they will be extremely cautious. markets are forward-looking. we have seen markets get ahead of themselves as far as concerns about reaction to the inflation, the mini cycle of inflation we are going to start seeing evolve

after we get the technical glitch out of the way of your and your inflation. what we need to think about is the fact that the fed has boxed themselves in with getting market so addicted to this strong liquidity. 2022 will be a year of deceleration. the economy will be strong but it will be growing slower. earnings may well be solid but they will be growing slower. how will the fed start removing quantitative easing in a place that is already uncomfortable for markets? lisa: before we get into the reaction function, there is also question of where we are in the cycle. people are talking about midcycle, some are saying late cycle. even jim bullard is saying the labor market is perhaps tighter than it seems. where do you fall? lara: i am firmly in the midcycle camp and i would argue that what we are seeing in the labor market, those constraints

that are deeply underappreciated. when he says they are tight, i recognize we are dealing with the labor supply dispatch but they are tight because people are having to pay more for workers. the labor market is the most inefficient market we have. the fact that we have had significant labor migration, the fact that we have had some industries require much less labor whereas others require significantly more, the pivot our economy has made towards -- you cannot just press a money and wake all of these workers back up again, especially the labor force participation. i think it will be harder to resolve a lot of this. lisa: what is your view? the fed is doing the right thing and inflation will not surprised to the upside? lara: i think they will have a lot of trouble with the fact

that i think the labor market gets much harder to improve from here. inflation will be uncomfortably high. no matter what they say it will continue to be a hot button issue for markets. it will continue to cause bouts of volatility. the fit will have trouble talking out of both sides of their mouth. tom: i want to dovetail your economic work with the foreign-exchange market. how do you interpret dollar dynamics around the next six months of the american economy? lara: so much strength has been priced in for growth. i think this could be a place where the dollar weakens further from here. what are we going to do? we see the fact that our economy is going to decelerate from such a strong level.

with so much good news priced in i think we are seeing real rates continue to slide. there is a strong argument to be made the 10 year falls little bit from here. all of that against the backdrop of still positive news possible, upside surprise possible. it has been amazing nations have so much struggle to reopen and get themselves back online. there is a lot of room for that to go better and for the yuan to continue to appreciate. all of those things lead to dollar negative. tom: this goes back to the classic demand debate about inflation. if we have a pacific rheem resurgence -- a pacific rim resurgence, that has to help aggregate demand worldwide that is where the gloom fades away, right? tom: of course -- lara: of

course, to some degree. what we've seen in the u.s. is we cannot sustain strong growth rates for long. our trade deficit is incredibly wide. i think what growth they have had has been significantly helped by the u.s. consumer, which is the engine driving u.s. growth but global growth as well . the story of the next six month is the story of business investment. i heard your infrastructure conversation with last guest. i think how that plays out will be important. as far as consumer goods go, we will now pivot to a lot of business investment stories, and for that i think it is closing the gap of demand -- of unfulfilled demand that it is a fresh leg up. lisa: we are speaking with lara

rhame of fx investment on a lack of conviction when it comes to the outlook. an idiosyncratic moment unprecedented in economic history. jonathan was just talking about the word out of caterpillar, the idea they are seeing easing in the supply of goods they used to manufacture their objects. elon musk tweeting this morning, our biggest challenge is the supply chain, especially microcontroller chips. never seen anything like it. he indicated this was obviously temporary. do you agree or do you think supply chain kinks will become a feature of the economy? lara: i think they will resolve but the question is if they will change behavior going forward. will we start bringing manufacturing back to the u.s.? we have been running on inventories for decades, we have been eroding those inventories for decades.

that would give us some near-term boosting gdp, but that would frontload that consumption. that is the real issue. does it change long-run behavior of how companies have their supply chains be less vulnerable to this kind of disruption? i know i sure would. jonathan: lara rhame, have to run. the mismatch between demand and supply. the buzz word of the moment -- an unprecedented wave, demand coming back online at the same time. that is the issue we are grappling with from the labor market to a shortage of goods to raw materials. lisa: what is the reference point for it global economy that was turned off for a lot of time and then turned on on a dime? there is no president and that is the question that goes to the uncertainty that lacks conviction.

you look at the surprise indexes , they are all over the place. how do you put a pinpoint on this market? jonathan: with payrolls on friday you wonder whether we get another downside surprise because you look at the ism from yesterday. there is a struggle attracting labor. attracting people. maybe you were just wages you can do something about that. in the near term here we are. i wonder what the additional estimates look like friday going back to the ism. lisa: what is the most convincing argument you've heard about why there is this gap between out of work and job openings. jonathan: i've not heard one. i've seen a series of excuses. businesses will tell you it is additional unemployment insurance. when you surveyed the workers that is a small fraction. tom: dan at the new york times is brilliant. it is a debate we will see how

it plays out when the unemployment benefits go away. the core idea is raise the wage and good things happen. jonathan: when will we find out? tom: when they raise the wage? they will have to get the bodies in to make the places go. this is the bond of two or three deciles with what we have got. lisa: they are raising wages and the question is how much do they have to raise wages and are there other issues affecting it as well? this is a tough issue to get your arms around given that people are entering the labor force that has changed. jonathan: it goes back to september. the end of traditional unemployment insurance. lisa: it is difficult to plan your life when you have children at home with 14 months of lack of social interaction and lack of stimulation. jonathan: lori calvasina joining me later this morning from rbc capital markets.

this market has a heartbeat. your equity market is up .5% on the s&p. tom: spiking. jonathan: with tom keene and lisa abramowicz, jonathan ferro. last time i will say that for a while. i look forward to seeing you soon. this is bloomberg. ritika: with the first word news, i'm ritika gupta. bloomberg has learned oratory is -- a notorious russian hacking group is behind the cyberattack on meat producers jbs. the group took credit for hacking a taiwanese hardware supplier. jbs says it will have the vast majority of its plants back in business. the operation affected operations at its meat markets in the united states noster oil. president biden is proposing to close tax breaks that is allowed donald trump to amass a fortune.

former president trump has valuable investment benefits from the law. the tax break shores up the real estate market. josh friedman is the cofounder and co-ceo of canyon parkers -- of canyon partners. he and his partner worked in the 1980's and found that their own asset management firm 1990. in a bloomberg interview, the men discuss the climate for takeovers. >> deep portions of the equity market that are in business just to make acquisitions. that is what a private equity firm business is. spac's go out of business if they do not make acquisitions. when people make acquisitions and use debt, there will be mistakes. global news 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in more

than 120 countries. i am ritika gupta. this is bloomberg. ♪

>> this has been an extraordinarily productive year. we have not missed much as a

result of being out of the office. longer-term it has big impacts on the ability to train and recruit and retain the best of our people. this ultimately is an in office experience. i expect by the fall we will be more in the office. tom: the debate. ken jacobs there. work from home, in office. you know the story. you are living the story in different ways. lisa abramowicz and tom keene. we have been in the office. i have been hermetically sealed. we are working on that. it is the current debate. lisa: pure seeing hollowed out city centers even as you see other places around the world comeback. i know you love this world -- this word, is this the new paradigm? tom: the new paradigm. mitch british -- mitch roschelle

provides wisdom. who will win this battle? five years from now, where work from home fits in? mitch: i think it will go back to what it was before this. it was a part of the work dynamic, may a slightly bigger part. companies want all of their people back. i believe employees, once they taste the camaraderie of being back in the workplace, they will want it. the problem is there is some percentage of the workforce, we are not sure how big it is, that have relocated someplace that is very inconvenient for them to get back to the workforce. if you look at the recent survey that bloomberg quoted in the story this morning, 40% of younger workers and younger millennials said they would quit if their bosses require them to be back in the office full-time. they want some typically -- they

want some degree of flexibility. tom: it makes for great headline. is it reality or to the kids just go do something else? what is the outcome of this? mitch: i think there will be some wage adjustment, and i think the adjustment will be downwards for those folks who did not want to be in the office . i think employers win in the end. i think we will see the bulk of the deal in the office. if not in 2020 one, early in 2022. lisa: let's talk about the real estate leasing market. we saw a survey this week saying nearly 1/5 of all office space is available to be leased, a record high. you see this across the city, particularly in the city center, where it looks like a ghost town. how confident are you those

spaces will be filled by paying clients and customers? what is going on is a lot of companies that we do not know with the operating dynamic should be. we probably have too much space. they do not. a ton of their spaces on the sublease market. the sublease space is littered with companies trying to test the waters. if someone is trying to take it off our hands maybe we will get rid of it. that is skewing all of statistics about square feet. at the end of the day, when people start realizing what it really looks like in the office, forget about all the plans they have drawn, i think they will realize they need that space. lisa: can you elaborate on that? do expect this time next year you will see the mast -- the vast majority of the space built and we have seen the peak pain now in terms of how much space is available? mitch: if companies pull their

sublease space off the market because they realize they need it, that will completely change the statistics. you will have to look past madison square garden. i was there last wednesday. it was totally back to normal. the court orders littered with people, nobody -- the corridors were littered with people, nobody wearing masks. big cities, everyone is reluctant to take the first step, but i think once everyone takes that step i am sticking with a year from now it will be completely back to normal. tom: i look at where we are. it is great. real estate is up. i was just looking at florida to lisa, something for her to slip into. it is a $6 million unit. what do taxes do? property taxes given this appreciation? mitch: florida, which does not have a state income tax,

benefits greatly. they have a property tax model. if the owner pays $3 million for it in the new person pay 6 million, the property taxes go up based on the sale. florida and some of the states that have that model are greatly benefiting. tom: i was just asking for a friend of mine. she has disco kids into thinking florida. lisa: she works in broadcast? never heard of her. there is a question about some of the trends we have seen in covid, including the move to suburbia. what is your sense on that? mitch: i do not like saying anything is permanent because then tom will pull the tape and embarrass me the next time i'm on the air, the fact of the matter is i think that was a trend that was happening before all of this, and all this did was hyper accelerate that trend. i think the people who have moved to suburbia are there to

stay. they will not go running back to the city. tom: thank you so much. too short a visit. mitchell roschelle on the story all of us are facing. the ways of ownership and rental in this post-pandemic america. we make jokes about it, but it all leads back to the huge flood of money. you will see it in the equity market with correlated yesterday , a fate during the day. in the last three hours the equity market futures are up eight stop -- are up eight. lisa: i wonder how much of that -- that is the question, the savings cap, this extra $2 trillion people having excess savings, will it go into the real economy or funnel into markets and keep some of these valuations at elevated rates? this is one of the mysteries. are you spending on vacation?

tom: i do not see it going into the real economy. i see a huge leverage on the banking system they have to work out, and it will work out when we get economic recovery. this idea it somehow flows into the investment business, personal investment, consumption, i do not buy it. lisa: you are investing in electronic collection, aren't you? tom: we are. i have to admit the consumption is up. i see the gloom on apple. there is a lot of gloom on some of the tech names. lisa: that does seem to be abating as people hold for the three to five year timeframe. jonathan was pointing that out earlier. the idea of a shift to a more electronic future is here to stay. tom: a big switch to school attendance this fall. that is something we will cover through the summer. on "balance of power," kevin

brady, always controversial. i believe he is a republican from texas. dow futures up 85. stay with us through the day on bloomberg radio and bloomberg television. ♪

♪ ♪ look, if your wireless carrier was a guy you'd leave him tomorrow. not very flexible. not great at saving. you deserve better... xfinity mobile. now they have unlimited for just $30 a month... $30. and they're number one in customer satisfaction. his number... delete it. i'm deleting it. so, break free from the big three. xfinity internet customers, switch to xfinity mobile and get unlimited with 5g included for $30 on the nations fastest, most reliable network.

jonathan: from new york city for our audience worldwide, good morning, good morning. started out really quiet.

still quiet. up went to percent on the s&p. the countdown -- up .2% on the s&p. the countdown to the open starts 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. looking for conviction in a polarizing economy. >> we are playing a game of chicken. >> global economic boom. >> not without risks. >> a star that burns hotter will burn for sure. >> there clearly is an issue with the lack of labor supply. >> supply chain interruptions. >> bottlenecks in the supply chain. >>