it's hard to have much of an inflation problem if wages are still quiet going forward. >> a lot of people aren't going back into the jobs market. >> people will get more comfortable coming back to work, but they are demanding more wages to do it. >> the market is too complacent about the fed not even talking about talking about tapering. >> we are still awash with excess liquidity, and that helps support a lot of valuation. >> this is "bloomberg surveillance" with tom keene, jonathan ferro, and lisa abramowicz. tom: good morning, everyone. on television, on radio, a simulcast on a monday. really easy, conceptual ideas out there. g7 trading this, voting rights that. in the market, i've got to say, i've got a 1.57% yield. that is different from five days

ago. lisa: the idea is that the balance of movement might even be lower. that the fed is right that inflation is transitory, that perhaps the job market isn't picking up as quickly of people previously expected. we did see a bit of again in terms of yield price down. yields a little bit higher today , but nothing to write home for. tom: jon ferro off today. romaine bostick into assist. i've got to get up to speed on the meme-ishness on this monday morning. if that done? romaine: at least for now, it looks a little bit less meme -- a little bit less meme-ish nationals a bit less -- a little bit less meme-ish this morning. . tom: romaine and i went back-and-forth friday and decided orange was the color of our bowties today. lisa was tasting wine or

something this weekend. [laughter] lisa: it's true. tom: we welcome all of you this morning. seriously, gamestop, joe feldman walks away from it and kelsey advisory group. is anyone else walking away from amc? romaine: pre-much all of the analysts are relatively bearish on this. into last week, the highest price target was like $6.50, and yet couple of folks down at a dollar here. the fundamental bearishness at least among sell side analysts is still there. as far as the euphoria among retail traders, i think you're seeing volumes come down this morning, at least relative to what we saw over the past couple of weeks. whether that is enough to drag this further down -- this stock further down, who knows? lisa: the russell is going to potentially come out and shift amc, shift gamestop, which makes them less of a waiting. matters because physically, these meme stops have become a

pacific and -- a significant proportions of 401(k)s. tom: emily wilkins with all of what is going on in washington has quite a news flow. right now let's look at the data. red and green on the screen. the resiliency of the equity markets has been noted. the vix with a 16 level. again, we must enter the yield space. romaine: this is an interesting move we saw on friday because we saw how they fixed income market, the treasury market wasn't reacting much to a lot of the data and that speak. we got reaction friday with that seven basis point drop on the 10 year yield. just seeing further klein and those yields today. i think that gives you sense that the market is found a little bit more clarity on what the fed might start thinking about doing, and now you might see more movement here to the

downside. tom: we had a huge lbo in the health care business over the weekend, and just in the last 10 minutes, it is presumed kkr is involved in a transaction. we will get more on that in little bit. we need to get briefed because we pick to be our encz apple, vr encz imac. [laughter] -- the rn chapel, the are encz imac -- the orang apple, the orange imac. [laughter] lisa: we are looking at the share price right now, down 0.2%. amazing that it is not down more considering the tax implications over the weekend with g7, but really it is all about cash flow at the likes of the keene household that funnels into this company. today, president biden speaking with a key architect and leader

of the republican effort, senator shelley moore capito. she will be talking with him yet again. no deadline. the infrastructure bill looking more likely given the fact that there are still talks ongoing, and there haven't than firm ultimatums in terms of deadlines . young teens 12 to 15 in germany can start getting covid vaccinations for the first time starting today, really highlighting where we are in the covid pandemic cycle. we are entering a new phase with the lowest rate infections in three months globally, and the u.s. going back to march 2020. are we there yet, tom? we can hopefully say the answer is maybe close. tom: certainly, we've got a nice set of stories out there. some very good news stories. maybe the cacophony we see in the united kingdom and some difficult stories out there on lock down well. we begin strong in this hour.

troy gayeski joins us of skybridge capital lisa: -- of skybridge capital. i see all sorts of articles that it has been a really whipsaw challenge six weeks or so for the hedge fund business. how is it? is there alpha out there? troy: yes, but it has been challenging really since february. this gets back to some of the inflation concerns of where the treasury yield is now. the industry is really position for slower growth, potentially less fiscal stimulus coming, so they were over rate growth and stay at home names to some extent. those have underperformed recently, and lot of the value sickles everly screamed. -- cyclicals have really screamed. it has been harder in the equity parted capital structure.

if you look at stress debt managers, there is fully recovery/value plays, so those have performed very admirably through june 7 so far this year. lisa: considering the fact that you have made such a big push saying this is going to be the key determining after and your outperformance this year, where you stand on that now, given china's noise around potential clock downs -- potential crackdowns, given that we are perhaps moving into a new regime of liquidity ? troy: you still have tremendous money supply growth. the fed is still expanding their balance sheet by $120 billion a month. we are on pace to go between 15% to 17% this year. every central bank in every nationstate is still in a debasement period for their currencies. the macro environment is still very favorable.

it doesn't look like there's any urgency for the fed to taper. from an adoption stan, we still think we are very early. you look at some of the wealth management platform product, morgan stanley has raised $150 million already. you look at gradual adoption in the hedge fund and asset management industry, that continues. we are still relatively early. you typically have an 18 to 20 month bull market, so we think we are still unable market. we think the -- in a bull market . we think the trendline is up. romaine: do you think there's a floor to that? people worry about the institutional embrace to this and whether it will be enough of a floor to keep them from going lower. troy: obviously after the big

dislocation, we woke up a nice stability zone. it will be hard to push about 40 to 45 in the near term, but again, if you go back and look at previous bull markets, you had substantial corrections along the way. this one was obviously more profound. you do highlight a good point on environmental concerns, that it may slow down some institutional adoption, but if you step back and look at your choices for how you play currency debasement, if you care about liquidity and non-correlations, bitcoin in particular is to a very strong choice for you, alongside gold and may be copper, but copper of course is a very cyclical recovery play. tom: i want to talk about the big tech, big cap. we've got the apple conference today, something we will be covering. there is a comfort factor for hedge funds to own those companies.

describe the intellectual process of hedge funds loading the boat on large-cap profit-making tech. troy: loading the boat is a strong term, but i think there's some distinction in which names they own. but the industry particularly is as long as we have ever seen them. you have great value investors, two of the top 10 names are facebook and google, for instance. so the intellectual process is pretty straightforward we are going to be mean reverting to a slower growth environment again after big cyclical growth period . you have tremendous profit margins, tremendous cash flow generation there's really no cost pressures in terms of it is not a labor-intensive industry that is going to suffer from higher wages, for instance area from a valuation standpoint, they have been cheaper relative to the broader market. as hedge funds filter through their choices, your filtering

for risk-adjusted returns, particularly in an environment that will be reverting to slower growth. those look like standup winners in the hedge fund industry. tom: thank you so much, troy gayeski with skybridge. it really folds into what you will deal with this afternoon. apple is going to go out and chatted it up as well, but there's a raging debate about cyclical value rotation versus you've got to own some of the. -- some of the big tech. romaine: a lot of people look at apple and throw it into that category. that's become the safety for a lot of people in this market. they fall back on it and fall out of favor with it, and then you look at the revenue growth, the margin growth, and they come back. tom: lisa, the reality is you get the terse little two paragraphs on the school, and they say for the fall, ignatius needs something apple-like. tom: someone needs -- lisa:

someone needs an ipad. it is the reason why all of these regulatory, antitrust concerns are shrugged off. it doesn't matter what the headline is. it doesn't affect the shares. tom: you opened the show with that, and you were dead on. stability in the equity markets. this is bloomberg. stay with us. ♪ ritika: with the first word news, i'm ritika gupta. u.s. treasury secretary janet yellen says higher interest rates would be a plus for the u.s. and the federal reserve. president biden should push ahead with his $4 trillion spending plan, even if it triggers inflation. she says any spurt in prices should result from the rescue package and fadeaway next year. some of the world's biggest tech companies are welcoming the g7 agreement on a minimum corporate tax rate of 15%. facebook says it is a first step

towards certainty for businesses. amazon says the protest will lead to stability in the tax system. but it may not be implement it for years. google will pay 206 t $8 million to settle an antitrust investigation and france, and it has agreed to change the way its business works across the world. france says google used its dominance over ad sales and purchasing on its platform to distort the market, hurting rivals such as rupert murdoch's news corpo -- corporation. according to dow jones, blackstone group has agreed to buy data center operator qts realty trust for roughly 6.7 billion dollars, representing a 21% premium to qts's closing price friday. but cory will sell atlanta gave ash mcclory will sell it -- mcclory -- mcquarrie will

sell atlantic airlines to kkr. i'm ritika gupta. this is bloomberg. ♪

>> we won't do this forever, but right now there are good-faith efforts on both sides and we will continue the work of doing our job in trying to get a bipartisan agreement. tom: the secretary of commerce, gina romines a -- gina raimondo of rhode island. we will have an active june to say the least in government. red and green on the screen, but a stability to equities with dow futures up 29. rounded up on brent crude. the dollar was a bit of a rebound. matt miller mentioning $1.21 59. we welcome all of you on radio and television. emily wilkins joins us from washington. what is the spillover of the senator from west virginia speaking with such clarity in an editorial in west virginia on

voting rights? how does the manchin effect from that spillover into other domestic issues in washington? maria: i don't think it was -- emily: i don't think it was a huge surprise. this really emphasizes how much manchin wants to see that bipartisanship, to see the senate be fixed in a way. that has got to be weigh's mind -- put on president biden's mind as he debates the infrastructure package, or whether to say we need to cut ties, go it alone. we got a lot of work to get done. even if they go it alone with just democrats, that doesn't mean that an agreement comes together like that. it means we've got to spin more time getting democrats on board because you've got some different moderates and progressives who want different things. tom: it almost remind me of speaker boehner eight years ago. you say it is -- you say he's

got to get just democrats on board. isn't that impossible right now? emily: i don't know if they would say it is impossible. when you talk to democrats, they say we want to get something done. there's widespread consensus across the party that they want to get some sort of package done. what that looks like, what the tax increases are, all of that is being debated, but there is a sense that everyone wants to get to yes on the democrat excited things. romaine: we heard from chris van hollen basically saying the time here is perishable, and there does seem to be a clock that has been taking for biden. the idea that if this doesn't get done, or at least a handshake agreement doesn't get done within the next few weeks here, this might not get done at all this year. emily: right, democrats are worried about what happened back in 2009 with the affordable care act, when they negotiated with republicans for months, and no republican signed onto that

bill. think about the timeline here. if they can get a bill to pass this year, it is going to take time for the money to get out there, to trickle down to communities, and for shovels to go into the ground and people to start seeing the benefits. democrats want all of that to occur before november of 2022. that is something they are taking into their calculations when they are putting pressure on the president to say we want to see something happen in a bipartisan manner, but the clock is ticking and we've got to decide whether or not we need to move on around. lisa: we are speaking about the potential or like a potential for a bipartisan agreement on infrastructure. there is, however, an emerging bipartisan agreement on some the may seem sort of friends like, but caught my interest -- sort of friends like, but cut -- sort of fringe like, become my interest over the weekend. senator mark warner said companies should be required to disclose whether they have paid ransomware bribes in order to

release information that goes to the colonial pipeline disruption we saw her earlier. it raises questions about whether paying some of these ransoms should be made illegal. how much bipartisan support is there? this could potentially have a real effect on the market. emily: that is a great question, and i think it is one congress is really starting to grapple with in a bigger way now that we have seen some of these high-profile companies be hacked. the solarwinds hack this year was certainly in and norma scale. so i think it is on both sides of the aisle that there is some concern about what happens when companies pay this amount to hackers. i think this is a debate that is still really unfolding in congress. the senate was out all of last week, so now they are back this week, but expect to see more conversations about what exactly needs to be done. for republicans, there's always some hesitancy about telling the private sector what to do, but i think there's also a sense that there are some big concerns about what it means for americans when you see companies

like colonial pipeline get hacked and gas prices shoot up. tom: which democrat are you watching this week away from the big names? who really matters in washington this week? emily: that is a really great question. i'm going to stick to the senate because that is the one back in session. i think used in cinema, her name gets thrown out there. there are a number of other moderate democrats to watch for these things. angus king, jeanne shaheen. tom: let's go to angus king, the gentleman from maine. what is angus king's power in negotiation with the president of the united states? emily: has a moderate end of cap -- as a moderate democrats, he can try to make inroads between senator manchin and president biden because he is someone who mention can look at and say this guy is -- who manchin can look at and say this guy is a democrat, but he has the

independent streak in him, and shape thinking on certain things. this isn't a vacuum. certainly the senators speak to each other, and i'm sure there are plenty of discussions between moderate centers of the party and where they think they can go, what pressure they might be able to assert on the more progressive members of their party, as well as party leadership area -- party leadership. tom: emily wilkins, thank you so much. much busier than i thought it would be here in early june in washington. lisa, i prepared for our interview with mattias corman with the oecd, a gentleman from belgium, with a germanic education. he lands up in perth, australia. lisa: there's a question of the international feature of the business world post-pandemic. also, i am curious to know the idea of global inflation and global growth when he talked about something very important, which is the very country specific nature of this pandemic. i was reading a story over the weekend about how small

businesses in developed markets have just cutting -- have just gotten eviscerated during the pandemic. what does that mean for jobs? tom: you look across the equity markets, and we really haven't had in the last number of weeks this debate about small-cap, small-business, mid-cap and the large-cap companies. that is an open debate into the summer. romaine: it remains an open debate, and that is why you see rotation in and out of these stocks. a lot of people are really trying to figure out, and a lot of that hinges on monetary policy, and a suit -- and to a significant extent. tom: william dudley writing actively for bloomberg opinion. his piece a week ago i thought was extraordinary on the sequence that the fed will look at, and today he simply comes out, the former president of the new york fed, and said the fed has moved to extremes, to use

his language. that will be an important essay for all of economics today red and green on the screen. dow futures up 36, 34,000 779 -- 34,779. this is bloomberg. ♪

♪ tom: on radio and television, "bloomberg surveillance." good morning to all of you. jonathan ferro is off. romaine bostick is with us this morning. on the data front, the yield on the tenure speaks volumes, 1.57% , rounded up 1.58% after a stunning move friday off of jobs. the real yield churns, -0.8 6%. in the equity markets, near record highs. we continue to sustain ever so slightly red and green on the screen, but the vix, a constructive 16.91. on the equity markets, romaine bostick. romaine: on friday we actually traded above that record high on the s&p 500, and a big part of the reason was because of the reemergence of big tech. keep an eye on big tech this

morning and throughout the day. apple has its worldwide developers conference later today. we will see whether the moment and with regards to the new product cycle and the force embraced of a lot of these products continues here. apple up slightly in the premarket by 0.5%. keep an eye on biogen. calling this the mother of all binary events, the congo since disease drug -- the cognizance disease drug they've been working on that could be a treatment for all summers, the fda said to be making a decision today, probably after the close. those shares have been rallying, up 3% in premarket. eli lilly and a few others that would stand to benefit should this get approval. then keep an eye on tesla. unfortunately, more bad news here. if you are planning on getting your hands on the new model s, milan ask -- elon musk saying that is not going to happen right now. you camped out right below $600 for the last couple of weeks now.

flip up the board. you will have your amc updates. we are down to about 1% here. we should point out this is still the biggest volume in the premarket by a factor of about 10 to one. also keep an eye on professor today. morgan stanley saying is we all start driving again, that means more accidents, and potentially more claims for progressive that could weigh on margins. something to keep an eye on. finally, keep an eye on g3. they license a lot of brands like donna karan, calvin klein, tommy hilfiger. they did well in the quarter and got higher for the future. tom: nice update as we stagger into the week, near record highs. interesting to see where we will be friday. this is a great joy for bloomberg right now after the 15 years of public service at the oecd in paris. after a really interesting

nominating process, the oecd select the pacific rim. the heritage of the oecd in the previous five secretary generals has been denmark, the netherlands, sweden, france, and then changed to canada and gurria's mexico. the reach now is the asian century, and part of that is the australian. wonderful to have you with us today. you dive into a treaty and the complexities of a g7 effort to tax the larger companies. a treaty makes it very, very difficult as well. how will the oecd monitor and study the treaty effort to make taxes uniform at 15%? >> firstly, good to be on.

secondly, the globalization and digitalization of our economies has created distortions and inequities when it comes to the capacity of governments around the world to raise the necessary revenue to find public services and support that they provide for their populations. the only way you can solve a challenge like this is through a global solution, and in that context the oecd has been working for many years to help improve the global taxation arrangements to make it fairer, to make them work better. now at the g7 on the weekend, a landmark historic agreement was reached, and that goes to ensure that digital companies, but also other large companies that operate multinational he around the world, pay their fair share of tax in markets where they

generate significant profits, and secondly, they will not be able to restructure their tax liabilities, or seriously mentally -- or seriously mitigate their tax obligations around the world, taking advantage of tax havens. this is one step in the process. there will be other steps to follow. the inclusive framework brings together 139 countries and jurisdictions from all around the world, and of course, ultimately, at the g20, a further formal agreement will have to be raised. but the fact that g7 economies, some of the biggest economies around the world, have agreed to this reform is a very significant step forward and making sure that there is a more fair and sustainable taxation in place. tom: before you went to perth, australia, you studied the

smithsonian effort out of versailles and how all of the league of nations collapsed basically with the u.s. congress in the u.s. senate. as the oecd in a g7 or g20 tax regime at the beck and call of the american legislative ranches -- legislative branches? mathias: firstly, the biden adminstration has been very helpful in facilitating consensus at the g7 on the weekend. secretary yellen took a very constructive approach to multilateralism, helping to unblock what had been difficult up until that time. ultimately, all countries that are part of an agreement ultimately have to work these issues through in their domestic contexts, including in the

context of their parliaments. that is obviously something that we hope the u.s. will do in his own time in the appropriate way. lisa: g7 agreed to a minimum at least up 15%. could you see that tax rate knowing above that 15%? mathias: well, it is important to ensure that we strike the right balance. when the average rate sits at 28%. there are some countries below the 15%. quite a few of them are. if all multinational companies operating globally are required to pay at least 15% on their profits, i think that is a very significant step forward.

then, space of the appropriate competition between different jurisdictions based on their fiscal policy setting in their tax mix in their respective jurisdictions. lisa: there's still a lot to do, as you were mentioning. tom was mentioning how the u.s. legislature may take a lead role in what this looks like. what are the main hurdles you see in the ongoing negotiations as we head towards g20? mathias: clearly it is very important to have all of the g7 countries reach that agreement, but of course, we need to expand the level agreement well and fully beyond the g7. around the g20, you have a significant number of other economies around the world.

so i am quietly after mystic that ultimately, when it is all said and done, that we will be able to arrange an outcome in the next little while. romaine: on the tax plan, can we go back to this idea of a woman is just setting the revenue threshold or how much it will be. the idea that companies will be able to find loopholes to get below that $20 billion threshold or whatever the final may be, how do you ensure that companies aren't going to find it with regards to the revenue component ? mathias: you are now going well and truly into the weeds of technical implementation. i think the prints were very clear. large companies that are generating significant profits in markets around the world, digital companies but also large

companies, should be required to pay their fair share tax. the combined localization and digitalization of our economies has meant that it has been possible to get nice -- possible to get a lot of large companies not paying any tax at all in many of the markets they operate in area that is just a mariner -- that is just a matter of fairness. that is on the proposal agreed to by g7 finance ministers over the weekend, that would address. tom: i'm absolutely fascinated at your selection through the nominating process. many of the other nominees for oecd are people very familiar to bloomberg surveillance. they have been great help to us in our coverage internationally. you are a different oecd secretary-general. i want to go to your australia, western australia, and the idea of the debate over big people american tech companies.

a be is tangential to see the come of this is going to be in the crosshairs. the fact is amazon at the perth airport has been a massive job creator for western australia. form where you sit with your finance work in australia, i know you moved to paris, how would you dovetail being in fear of american tech with the reality to great jobs like the perth airport fulfillment center? tom: firstly, there's 38 member countries of the oecd, and the one thing that joins us altogether is that we are all market buyers to democracies and we are all committed to generating opportunities for to get ahead by free market principles, and indeed, based on democratic principles in the

context of a rules biased trading system. i think you will find the things that we have in common are much stronger than the variance between different parts of membership. i also bring to this job my back round as somebody who ruben europe, who went to school and university in europe, and i guess the membership felt i had a particular contribution to my background i outlook -- to my economic back look -- my economic backdrop. tom: congratulations, the new secretary-general of the oecd. absolutely fascinating, to say the wiest. just a stunning collection coming out of were to -- coming out of world war ii. lisa: you did great. tom: can i go home?

lisa: go ahead. [laughter] there's a question going forward about how much cooperation there can be given the fact a lot of european companies. you have the likes of ireland, who are benefiting from low tax regimes, how are they going to get under board -- get on board with something that will undermine their profits like that. tom: this goes back to david kostin's surge, and that is their investment, their capital expenditures worldwide are stunning. in america, people know -- people need to know what people are doing in sydney, australia. kevin: romaine: some of the policy -- romaine: some of the policy of implement it in this is also understated now. it will be interesting to see if they can wrangle all of these together tom: i'm going to call

it -- all these together. tom: i'm going to call it, we start the week strong after the jobs report we saw on friday. stay with us on radio, on television. ♪

>> consumers have lots of money in their checking accounts. we think they spent about -- or

they have not spent about 65%, 70% of the last couple rounds of stimulus. loans are starting to pick up. there's plenty of borrowing capacity. companies have unused lines. tom: holding court on cbs "face the nation" over the weekend. they are giving out free bank of america -- free air conditioners at bank of americas across the weekend. [laughter] it was steamy and hot for most of the we can. -- we are moving -- hot for most of the weekend. we are moving to seattle. lisa, this is way too complex for me read it is about the fed, it is about bonds, and it is about exchange traded funds. lisa, i'm lost. romaine: the quiet -- lisa: the quiet move the fed made to unwind its portfolio of credit according -- of credit holdings, this really didn't move markets. did not come as a big surprise. it is not that big of a number.

however, it is a big component of the exchange traded funds a lot of people use as a quick to get in and out of credit markets. it raises a question of if it is not market moving, what is the consequence to the fed's policy? can you give us a sense of how big the presence is in the etf world? dave: it is going to be something to watch in terms of can they get out and leave the etf's unscathed in terms of their value. you are talking about 16 exchange traded funds, holding some more than a $.5 billion total, and may be the one to watch is the a-shares i box u.s. dollar ticker because the fed is the furred largest holder of that etf -- the third largest holder of that etf, and it is there single largest position. lisa: we've got to explain this -- tom: we've got to explain

this to idiots like me. jerome powell owns 6% of that etf. dave: well, powell and the governors on behalf of the american public own 6% of the shares of that etf, yes. tom: is that a lot? mi outraged? really, they own 6%? dave: absolutely. we've got all the figures on the bloomberg terminal in terms of holdings. you are talking about the second-biggest chunk, when you go through the 16, 18 eft's, and it is the spider fund, the intermediate term, where they have a 7.2% stake. you think the bigger the whole, the more of a risk, that when the fed gets out, it affects the market. tom: how much does the fed own of amc? [laughter] romaine: i hope zero. it we find out they do, i would be a little bit worried. talk about junk because they did

sort of supports what could be considered the low end of the market although it's seems to outperform. is there a general sense that this is going to have any material effect on the pricing of these etf's? dave: they are going to try very hard not to have an effect as they get out. when you talk about high-yield, short, the fed is in seven different high-yield etf's, but you are talking about a much smaller percentage of the overall investment, so sure, it is a piece of the puzzle you might say, but it is not the biggest piece, the investment grade etf's were you got to watch to see if it does have an effect. lisa: give us perspective on why this is important because it is

incredibly important. remember, back in march 2020, the federal reserve took an unprecedented step to support the credit markets and directly. people decided to move into moral hazard, what does this say to corporate powers that is there is a trouble, the fed is going to come in back you up, and lowering your borrowing costs. said that's the fed is now saying they've done their job, and there hasn't been a market movement. the take away is the fed has successfully used this tool to affect prices because prices surged after they announced this program. they are not coming down after they announced their unwinding up at, which indicates it has been a success and will be a tool going forward for them. tom: thank you. i have no clue what we talked about there. romaine bostick, michael purves

emailed a blistering headline this morning. i think this really speaks of q3 . it is not that he's bullish, but he's maintaining on bearish. we are hearing that from a lot of bullish -- maintaining non-bearish. i love that. romaine: i do think you get to see a lot of people in this market that feel like this isn't a market that is really going to crash. it is not fair whether it is going to continue much higher as well, but there are gains to be made, and you basically have to be into this point. tom: lisa abramowicz is non-bearish, right? [laughter] lisa: there is this idea of the death of the 60/40 portfolio. the pendulum of non-bearishness. tom: it is. lisa: there is a question going forward about whether you have

an irrelevancy of the 60/40 portfolio or whether he consistently performs that way. michael purves saying you can't abandon it, and that is important. tom: it is. the pendulum of non-bearishness i think is where we are. romaine: you still have some folks who will talk about the general idea that you maintain some exposure towards the fixed income space, but as far as the 40's, that 40 has now morphed into something well beyond traditional treasury fixed income, and a lot of alternative assets are now in that 40's, so i don't know. i think it is a new area for investors. tom: let's discuss it right here. i think the essay of the year, "the wall street journal" talking about rebalancing. does rebalancing work?

romaine: i think i will stay away from that one. i think if rebalancing work is depending on what your objective is for rebalancing, as far as it is a broader effect on the market. lisa: if you want a nonanswer, the pendulum of rebalancing. what do you feel about it? tom: i think it is total hot air. lisa: michael purves will be joining another property of bloomberg's vision at 9:30 a.m. eastern, so we can all ask all -- i'm sure we will ask all about on bearishness. the idea of 1.57% on the treasury yield, it is a new paradigm. somewhere different. romaine: did you know i hosted "the real yield" on friday? i just assumed you were at home

watching. i was in the heart of the "surveillance" nap. does ysnh have an expiration -- does tang have an expiration date? mine was a little flat this morning. stay with us on radio, on television. ♪

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♪ >> we are recovering very quickly, but a lot of people aren't going to be back in the jobs market. >> people are comfortable coming back to work, but they are demanding more money to do it. >> the market is a little too complacent about the fed not even talking about talking about tapering. >> it is hard for the fed to maintain the degree of accommodation when the output gap is closing fairly rapidly. >> >> this is "bloomberg surveillance" with tom keene, jonathan ferro, and lisa abramowicz. lisa: the pendulum of a summer

stasis. good mor