are in a bull market. >> we are getting a big spike in inflation. >> the market is a little too complacent about the fed not even talking about talking about papering. >> it is going to be hard for any central bank to be as dovish as the fed is. >> 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. tom: good morning, everyone. jonathan ferro, lisa abramowicz, and tom keene. "bloomberg surveillance" on radio come on television. a digital outage. we will touch on that in a moment. romaine bostick in for jon ferro this morning. i want to go from the uproar on negative futures, and backup we

go, but, does it show the fruited julie -- the fragility of the system as we know it. lisa: certainly the big moves were not that big. the fact that people clambered into buy at a 0.5% dip shows you there's not that much out there. fireeye up nearly 2%. amazon web services down. fastly also lower. these are all raising questions about the new dynamic of the new economy that really leads to stockpicking going forward, when you try to think about the cyber world we live in. tom: stockpicking doing better here on a macro basis. romaine, your thoughts on this? you deal with this everyday. for those of you on global wall street, tliv is the way to go.

it is really smart analysis. what is your take on this, romaine bostick? romaine: they've got it back up and running. fastly is critical. a lot of people don't know about it. but basically every time you are getting online now. you are usually being routed through a fastly server. this is something people will gravitate to if this does turn out to be something bigger. tom: i think we can say all clear right now. romaine: are we up and running? our people able to watch us? tom: i don't know if we are up and running. we had 12 viewers in the last hour. maybe. . maybe we are up to 14 -- maybe we are up to 14. the vix comes to a 16.57. i'm going to dispense the rest as a churn this morning.

he's smarter than we are. nate lanxon joins us. lisa, why don't you go through your brief because we have david malpass coming up later. lisa: david malpass will be speaking on "the open," 9:30 a.m. he will be talking a little bit about what they are saying, what the potential risks are for cyberattacks come although we don't know that this was anything related to anything the various in terms of what happened with fastly. interesting to see, in january they reduced their forecast because of some of the delays in the developing world with respect to viral strains flaring up. at 10:00 a.m., the u.s. april jobs opening report comes out. jobs openings have been surging. the number of individuals applying for those jobs have not been keeping pace. that to me as one of the questions. how much are we starting to bridge that gap? at 10:00 a.m., i know you're so interested in this, they

colonial pipeline ceo is going to be testifying for the senate, talking about some of the ransomware, again showing the focus on the cyber infrastructure of the nation. tom: maybe a little different than what we see right now, although i'm sure the gloom c rew will conflate. we are thrilled that nate lanxon could help us out this morning, the european tech editor. what are the thoughts of london on this digital? do we go down there early to fastly, or was this about amazon web services? nate: at the moment, we are seeing there was a major error with fastly servers. there's no indication that this was necessarily nefarious in origin. that should become clear later today, i would hope. we do tend to see outages like this affect the biggest web hosting providers, and it is to be expected that these things

happen. what is always critical is how quickly do they come back, and as you know, we do see now that most of the websites we knew were being affected are back online. i am looking at the internal data that i think has been applied, so this is probably about 30 to 45 minutes total outage, which is reasonably accepted as ok. but we will have to see what the causes of this where. tom: jeff bezos going to space. that's what the summer is. [laughter] lisa: that could be your way of interpreting it. there's a question of how we judge the seriousness of a type of disruption like this, considering how widespread it is. how many different places it affects. from your perspective, whatever the ramifications -- what are the ramifications of an outage that affects the mainstay of so many businesses? nate: if you are somebody who's in charge of keeping a massive

website online, you are going to be weighing up the fact that you could either stay with a hosting provider like this, where there's occasional risks that you will have a temporary outage, versus the cost that goes with moving to a rival. that is not to do quickly or easily. so i expect the fallout from this will be limited, given the short amount of time relatively that this was out for, and most companies that do dealings with business like this have a service-level agreement that doesn't say we guarantee 100 sent of the time. but again, we will have to wait and see what the cause is, and we will know more. romaine: make -- tom: nate, thank you so much. right now we are going to go to fixed income. columbia threadneedle's global rate strategist. why don't you ask the first question?

lisa: there's a question we've been talking about i will morning -- talking about all morning in the yield space, where people are expecting that the fed is correct and we will begin a low-inflation world for the foreseeable future once we get past this blip. what is your sense of what could change that view in markets? guest: hi, thanks. i think there are two areas where there could be a little bit of slippage. the first is the conversation around the paper and the tapered -- around the taper and the taper timeline. the first is around the jackson hole meeting for the fomc. there might not be enough time for us to accumulate enough data for the fed to move forward. they could push that further back in the fall, potentially next year. the second is this conversation around inflation. unfortunately, it is very likely

that we won't have certainty around the underlying inflation process until well into next year to make adjustment of what inflation has shifted up into a higher gear. romaine: what explains the recent drop in yields? we saw a creep up a couple of weeks ago, and it seemed like we were headed in a different direction. now we are sitting at about 1.55 isn't on the 10 year yield and appeared -- 1.55% on the 10 year yield and appeared to go in a different direction than people would expect at the fed. reporter: edward: if you look at the -- edward: if you look at the first quarter, we frontloaded a big move higher on a number of factors. first and foremost, the opening of the academy, the vaccine introduction, and the upgrade -- of the economy, the vaccine introduction, and the upgrade of growth expectations. but more important was the change in the fiscal outlook. the fiscal outlook changed quite dramatically. by the time we arrived in late

march, expectations for data had ratcheted up to where it was difficult to beat them. over the last three or four months, what we had is data coming in that is pretty good, but data disappointing expectations in that process. tom: i know you are not daytrading at columbia threadneedle, but let's go there. we talk about demand pull and cost push inflation. now we've got demand pull, cost push lower yields. i believe we have higher prices and lower yields. is this the mother of all bond opportunities to move to higher yields? edward: i don't think so, not yet. there are places on the curve there is little -- on the curve that are a little bit mispriced. if you look at real yields, about -200 basis points. 80 basis in nominal terms.

there's probably little bit of room for us to move higher there and be consistent with markets pricing a little bit more of a factor hiking's rick perry -- factor hiking trajectory in 2023. on the longer end, the big wildcard is fiscal. the conversation around the inference structure plan is -- the infrastructure plan is molasses in d.c. if that is funded via deficits, we have a very different outlook for rates then we do in an environment where that is funded by higher taxes. tom: we got to leave it there. thank you so much, ed al- hussainy. what i notice now is all of the digital outage chat is beginning to come out in the past tense. i guess we don't know where we are, but the answer is we are talking about it happening in the last hour. lisa: the idea that it was

resolved within 30 to 40 minutes mean the ramifications aren't that great. there is a question, there are some moves that are sticking, and i know you are laughing at me, romaine, i think it is significant that in this specific concern, amazon affected, microsoft not. how does that weigh on their business model? romaine: a question we wanted to get into was this idea of concentration. there's a really heavy concentration when you talk about some of these proxy network. vastly is one of the smaller players here, but you get amazon web services go down, and i hate to break it to you, but "bloomberg surveillance" is pretty much complete for the day. crossing the wire, fastly is confirming that its global network is back online. tom: there it is. we will have to see. i don't know. it sounds to me like it was fastly. that's what i hear from giles

turner in london. we will continue with this on radio and television. an eventful day. i thought it was a snooze fest. lisa: you always think it is a snooze fest. tom: that's true. comeback 16 big points off the digital outrage. i like that. this is bloomberg. good morning. ♪ ritika: with the first word news, i'm ritika gupta. a problem that caused multiple websites around the world to go down has been fixed, according to fastly, which says the customers may see an increased origin load as global services return. among the websites that experienced outages, "the new york times," reddit, and the british government. an investigation of the january 6 assault on the capitol says there was a lack of training and preparation for capitol police,

who were overwhelmed by the writers. police tell senators they were left with no direction when command systems broke down. the biden adminstration has come out with a plan to secure critical supply chains. a task force will focus on supply-demand mismatches and you with -- and deal with near-term bottlenecks. the investigation is all considering an investigation that could result in tariffs. the european union is ready to consider tougher retaliatory measures over brexit policy on northern ireland. the eu says the u.k. isn't living up to its obligations. it has been a major flashpoint since the u.k. quitthe -- quit the bloc at the start of the year. in china, tesla's deliveries dropped 29% last month from april, when production was temporarily suspended. the carmaker headed over more

than 33,000 locally made vehicles in may. now analysts are watching to see if they run of bad publicity in china will result in lower sales. 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 rick a this is bloomberg -- i'm ritika gupta. this is bloomberg. ♪

>> what we are not going to get in june is more clarity about the balance sheet. i think they are going to tell

us they are talking about it, but also tell us it is too soon to lay out the parameters of what they do in terms of tapering and balance sheet movements more generally. tom: bruce kaz meant, jp morgan -- bruce kasman, jp morgan, their chief economist. we welcome all of you this morning. romaine bostick and for jon ferro. lisa abramowicz and john key -- bostick in for jon ferro. lisa abramowicz and tom keene. jack fitzpatrick joins from bloomberg government. buried in the news flow is the basic idea of how the democrats regroup. how do the democrats regroup? jack: on infrastructure and on their big legislative priorities right now, it is unclear what their path forward is. there is still an attempt for president biden to work something out with senate republicans directly, and there's going to be a meeting

with senator capito today, although senator capito as of late yesterday was not sounding very optimistic. she said she didn't have a new offer to give the president, and the president still wants more money from senate republicans, so we may potentially see a senate bipartisan approach where a bipartisan group of lawmakers start working together, but there really is some frustration among democrats, and it is possible we will see them give up on the bipartisan approach altogether for their top legislative priorities and in something through the budget process that lets them just do this. but they need joe manchin for that. tom: ok, great. so that is reconciliation and that process. how many more things can they slam through reconciliation before the parliamentarian says enough? jack: they have another opportunity, at least one big opportunity. they can use the next year's

budget blueprint to do something big on infrastructure. they also have some limited opportunities to actually amend the one that they previously used to then save the opportunity to use the 2022 outline. they could have up to two within the next year or so opportunities to do something partisan. but if they do go the partisan route, there are a number of lawmakers on the democratic side who want to see one big package, so they've got enough of an opportunity as long as the moderates like joe manchin and kissed in cinema get on board with doing things the democrat'' way and not working with republicans. lisa: one of the reasons it is great you are in washington, d.c. is you can get the chatter in terms of how optimistic or not people are that something will get done. given the latest of elements -- the latest developments, what is

your sense of the likelihood of a deal getting past, and what with the headlin number be? jack: i wouldn't say there's a lot of optimism right now. as of late yesterday, i wasn't entirely clear on why senator capito is keeping the conversations going. she said biden told her there needs to be more money from republicans. she accepts that, but does not have a new offer she's prepared to give. the conversations have revolved around the number $1 trillion, but when you get into the weeds and look at how much of that is new money, how much is pulled from unspent stimulus funds, and how does it compare to money that would have been spent anyway by the government, it is a big difference. biden once $1 trillion in new money -- biden wants $1 trillion in new money. the republican proposal was about $250 million in new money above the baseline.

the details can get pretty messy, and the president once actual $1 trillion in new spending. romaine: a lot of oxygen right now being sucked out of the room as they try to work through this infrastructure bill and all of the related spending bills out there. there is still other legislation out there and other proposals with regards to cybersecurity and a lot of other things that are still really important that need to get done. is there any sense here that there's a little bit more consensus on those proposals? jack: on cybersecurity, clearly there's a lot of attention on the issue. one challenge they face is a very spread out series of jurisdictions in congress, and my colleagues has details on the fact that they are about five different congressional committees with relevant jurisdictions, the fact that the energy issue, the tsa has

jurisdiction over pipelines, cybersecurity, is a bit of a knotted up web of government jurisdiction, which does complicate the effort. so that is one of the main challenges right now, but it is something you would expect to see move forward. it is clearly just not at the top of list of negotiations right now. romaine: so bipartisan concern, not necessarily bipartisan movement. let's talk about some of the issues that are more on the progressive side of the equation, like the voting rights bill which appears now to be dead. some of the more progressive measures that biden really needed his full democratic party behind, and he does not appear to have that at all. jack: the latest on the voting rights measure is the criticism we heard of it from senator manchin. that potentially could be a moot

point even because a voting rights measure is something that doesn't lend itself to the process of budget reconciliation that allows them to pass things with a simple majority in the senate, so things like voting rights, police reform, some of the progressive priorities that are not fiscal priorities are things where you really need to see bipartisan support. it is not even clear that democrats have all 50 members in the senate in support right now, so that is the toughest part of the biden adminstration. tom: thanks so much. he is up, wired and running, at bloomberg.com through the morning with bloomberg government. on twitter, he's already flogging the black t-shirt. i survived the outage of 2021. it was just a matter of time. [laughter] lisa: we are going to get bumper

stickers, hats. we make jokes because it took 30 to 40 men met -- to 40 minutes. tom: well at the time it was stressful. [laughter] lisa: well at the time, we didn't know. you can call dr. phil. have you got him on city dial -- on speed dial? romaine: we had worse outages than this, but look, it does show you, and lisa i think brought this up earlier, just how critical internet infrastructure is to everything we do in our lives. any disruption of that, even if it is just for a few months or so. lisa: and earlier, this idea of concentration risk, how does this play into this concern about a ws and microsoft -- about aws and microsoft azure having so much of the business? tom: are we going to get a home phone line? lisa: don't get carried away. no. my kids don't even know what a home phone is.

don't know about the buttons that you press. rotary phones. tom: they don't know when you could listen to your neighbors' conversations. romaine: and sometimes the operator would listen in. lisa: you are not that old, come on. tom: this is bloomberg. good morning. ♪

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♪ tom: "bloomberg surveillance." morning, everyone. red and green on the screen. it has been a busy morning, maybe going to a more normal day of june. brent crude sliding back down from the 70 dual hours -- from the $72 level. i also know some dollar strength this morning, although let's call it fractional. much to talk about. we will go to the equity market in a moment at first, romaine bostick with individual stocks. do you start with vastly? romaine: why not? where were you during the great internet average of 2021?

they are off the floor right now , down about 1% here in the morning. interesting, marv l technologies -- interesting, marvell technologies, most of their business is go to these types of companies like fa -- like fastly. tesla shares getting a nice bump, up 2.7% after you had some delivery numbers out of china that seemed to assuage some of those fears that there was a slowdown in deliveries. this is just one month of numbers, so we will see what happens next month, but for now that seems to be combing investors. some other -- seems to be calming investors. some others doing well, stitch fix up about 14%. we talk a lot about the meme stocks. amc is slightly higher on the day, but there's a lot of rotation to some other stocks.

tom: how do they determine the rotation? how do they determine what is the next meme stuck? romaine: i am pretty sure it is just called crowdsourcing. i'm not sure there's a lot of fundamental analysis going on. but we have a lot of folks at bloomberg that troll these. you get a little chatter there, and all of the people at bloomberg have a bloomberg terminal. there you go, tom. clover health, wendy's being chatted about. don't ask whether there is a fundamental reason for it. it is what we call momentum. remember that in the old days? tom: romaine bostick, thank you so much. nasdaq up a nice 0.4%, up 54 points. what we are going to do now is calm down. we had been later with us an hour ago or so with his optimism on double-digit returns three years in a row. they've be juncker out probably to -- dave bianchi probably --

dave bianco probably has a more measured approach. lisa, you and i remember the remotes. we had to parachute in at one point, three -- parachute in at 1.3 makeup artists to go to lisa's house. lisa: because i couldn't do it myself. [laughter] tom: think of those garbage remotes we did with the delays. first of all, the camera and lighting guy showed up drunk once. lisa: you had a camera and lighting guy? please do go on. tom: think what we went through over the last 14 months. lisa: it has been exhausting for a lot of people, and people have gotten used to working from home. it is a little more challenging dealing with broadcast logistics. but right now the world is looking up, and you can see it in midtown. tom: there's a team of 200 people worldwide that help bloomberg every morning. this is what it's about.

our guest, hermetically sealed in studio with us, we welcome dave bianco of dws. check your insurance. [laughter] lisa: and liability waiver. tom: i want to talk about how we measure optimism forward. your optimistic -- you are optimistic, but we got to measure it out into q3, don't we? dave: right. there's a lot of ways to measure optimism. one of the ways to look at the valuations. however, when we assess valuations, we have to keep in mind that we are in a very different interest rate environment than history, so when we try to normalize earnings, capitalize those earnings that a fair return, that alone some of the low interest rates justify high pes. i don't think the equity markets are exuberant, but they are definitely optimistic about not just sustained recovery, but a long-lasting expansion,

ancillary. we are -- and so are we. we are just trying to stay focused on the risks of inflation, possibly higher pes. that might weigh on the market. tom: you go to the real issue. we have to gauge the shock that we know is coming. so we've got a fear about what is coming down the road. the fed comes in and all of that. the end of fiscal largess, etc. you don't fear that, do you? tom: but we are concerned -- dave: but we are concerned about that. we have been trying to move from immediate inflation risks to supply chains, the reopening, and we believe those inflation risks will pass, that they are transitory. however, there is a significant risk of more sustained inflation from fiscal largess and this expensive fiscal on monetary policy. as what we are watching, and we are looking for signals on that out of d.c. this summer. what i would like to say is that when it comes to fiscal discipline arianism --

disciplinarianism, the bond market hasn't shouted yet, but we are watching the dollar. we think if it flips further, it will cause rates. tom: we welcome all of you on bloomberg television and bloomberg radio. david b juncker -- david bianco of dws with us. i've been pickled so we are safe. lisa is still in another room. lisa: i love the idea of mom being currencies and dad being the bond market. there's a question about diversification in a world where you've got such polarized risks. how do you diversify in this new polarized world? tom: -- david: when there is uncertainty, we end investors do that, so we are diversified across asset classes, across

equity regions, and we are trying to be diversified in our styles and segments and having our portfolio managers pick stocks. we are modestly overweight equities, mostly because we are concerned about the longer-term inflation and likely higher real estate risks of the bond market. so our presence thus far in equities, asian in particular, and in the united states we are aware. semiconductors, banks, but it is not the 1970's. we think the real risk is more monetary and fiscal in nature, and we would rather move from things like energies, industrials, materials to banks. what we consider to be better inflation plays should inflation become more broad-based area and you will find value there. romaine: we have already seen a

pretty good run been a lot of those bank stocks. you mentioned asia there. what about europe? we have kind of gone toe to toe with u.s. equities, held their own, and you've got a big rate decision coming up out of the ecb, where you might get a little more divergence out of the bank in europe versus the one of the u.s.. david: we are overweight foreign equities and equally overweight europe and asia at this moment. the european up economy should continue to accelerate over the course of 2020, so we think what's likely to have legs over the next 20 years is asia, and for the next several years, still the growth stocks of the united states, not just tech and communications, but also health care, biotech, and tech is also a good play, and also

financials. romaine: is there in the financial recovery here? any financial speed bumps you are worried about? david: i am worried about policy centers trying to be helpful and doing too much. we are seeing the infrastructure packages that are likely to come, and we want to see if they are right sized, well targeted, likely to produce good return on investment. if they are not good uses of the savings, it will lead to a higher interest rate, and that is negative for financial assets. tom: it really harkens back to it. we go back to the previous pandemic of just after world war i. do you believe in the idea of the excitement -- do you believe

in the idea of the excitement we had, you coming into our building, our first guest in studio in 13 or 14 months, is it about the illusion of the roaring 20's? david: i think we have a real recovery and process. i don't think the roaring 20's are the right analogy. it is probably something more like, hopefully the 90's. of productivity and benign inflation, and good incentives. the early 1920's was not a good economy. it was deflationary. it was trying to put things back together. 1921 was a nasty recession. people forget that the 1920's weren't good until the late 1920's, but more importantly,

that was an economy that did benefit from strong global trade after the war and did benefit from strong fiscal capital expenditures, railroads, things like that. however, this economies -- this economy is focused on digital in nature. these are focused on health care. these are things that a society wants and needs. lisa: talking about that, we survived fee outage of june 8, 2021. there's a question of how you guard against possible disruption going forward. how much are you accounting for cyber risks, for cyber potential benefits for specific companies in your portfolio? david: we are accounting for that is a risk, but also opportunity.

when it comes to payment processors, we are excited about security and facilitating payment and other conveniences in the digital world. but when it comes to things like to currencies, we think you need to ask yourself a more fundamental and. what does it take to make for a viable currency? tom: thank you so much for joining us today. when you leave, it is like "et." you're going to go through the white tunnel. thanks for all of us at the building forgetting our employees and in particular our valued guest. it is pretty exciting. i didn't know this was going to happen. lisa: it is exciting to see people in person. i know you have never used zoom, but it is tiring, that little delay in between conversations, i find. tom: it is a big deal, really

symbolic. romaine: i actually liked when you were broadcasting at home, sitting in front of those blinds. tom: you have no idea. romaine: in all seriousness, it is wonderful to see a real guest in the flesh for a change. it has been a tough year and a half for a lot of us and i'm sure a lot of our viewers, so any sign of normalcy, i will definitely take it. why are you referencing "et?" tom: because david has the security just like at the end of "et." they are all in the house. lisa: to decontaminate. tom: bianco is gone. [laughter] lisa: i do think what he said about the hopeful 20's is really interesting area maybe not the roaring. maybe the hopeful. tom: this is way too much optimism for "bloomberg surveillance." red and green on the screen,

with the nasdaq up nicely. that is a stunning yield. stay with us on radio come on television. this is bloomberg. he's got dna.

♪ >> there's some countries that are below the 15%.

quite a few of them are above the 15%. if we were able to achieve a circumstance where all multinational companies operating globally are required to pay at least 15% on their profits, i think that is a very significant step forward. tom: first interview as secretary-general of the oecd. absolutely fascinating. we will drive forward the institutional dialogue. david malpass scheduled to be with us in the 9:00 hour on "the open." red and green on the screen. a modest advance off of the digital uproar we saw this morning. i saw the first shirt, i survive the fastly 2021 outage, was bought by david wasn't. what do you have this by david wilson. what do you have this -- by david wilson.

what do you have this morning? dave: among other things, he's pointing out that what is going on in the stock market with financial shares is inconsistent with what we are seeing in the bond market in terms of treasury yields, so you have the relationship therebetween the s&p 500 financials index and the broader s&p 500. we've seen it move up, this ratio between the two, by about 9% from the low back in april. the 10 year yield basically went nowhere. tom: on radio, all you need to know is an i don't get it chart. lisa: this is consensus across a number of different houses on wall street, and the question really goes to what dave is

highlighting, that yields go in the other direction and increasing expectation for bond yields. we are seeing a narrow, and with expectations actually keeping pulled back, how much do you see other shops on wall street also retracing their thesis on financials as a result of this? david: i haven't seen a lot of that yet -- dave: i haven't seen a lot of that yet. you could argue a body in motion is remaining in motion because financials have been among this year's best performers when you look at the 11 industry groups in the s&p 500, but is not like there's really a consensus call to back away. at the same time, this inconsistency to what is happening in the stock market with financial shares and was happening in the bond market,

and certainly the idea that schwab took that out, it gets your attention. tom: on bitcoin, he's back from miami, mike mcglone, bloomberg intelligence miami strategist. let's talk about bit dog at $32,000. what was the surprise of the great believers? mike: i will never go to another conference like that. it was completely packed. the main hall was wall-to-wall people, standing room only. when you walked into the exhibition hall, the main thing you feel right away is the heat of humans, which is so money people there. is this the peak, or the sign of main street adoption. tom: did you see any bowties?

mike: hardly any ties area to me , it is probably more main street adoption. i brought up ethereum a lot. romaine: i think we really have to make sure that next year, we get tom down there to miami to host "bloomberg surveillance" live poolside. there was a lot of talk here about the idea of replacing banks, or at least minimizing the influence of banks. it is actually a strategy that is beneficial to the future of bitcoin? mike: what bitcoin is hoping to on a global scale is anchor the un-banked. the statistic that really hit home, it's only 2/3 of the republican does not have bank accounts, and 40% of those don't have -- of the world population

does not have bank accounts, and 40% of those don't have cell phones. one thing that is really notable about this conference, there's a lot of do-gooders that made a lot of money and just want to make the world a better place, and they think going is the main way to do that. lisa: the profit for american traders coming out of bloomberg this morning. just wondering going forward what kind of regulatory regime we are looking at. it was that not even an issue that was discussed? mike: we already have futures. the key area where regulation should come in was in stable coins like heather -- like tether.

if you want to really hide a transaction, you go to maybe a stable coin liketether that is probably lacking regulation, but it is coming. it is just a matter of time. tom: wonderful to have you back on "bloomberg surveillance" on commodities and bitcoin. i look at the currency. we have pretty much decided is not a currency, right? romaine: who knows? $33,000 right now. we have seen a little bloom come off the rose here. all of the coming out parties we have seen for bitcoin and crypto over the past few weeks, is that really a signal of the top? it will be interesting to hear because a lot of the institutional investors are at least in the case here that there is a floor, whether you believe it or not. who knows? tom: floor is lisa's technical support for support. what do we do at 29,000 dollars?

support floor seems to be where we are. lisa: i wonder how much leverage is embedded within the crypto bets. embedded within the strategy is raising money to buy bitcoin. romaine: this should go over well. lisa: this is fascinating, this idea that he's operating at 6.25% to 6.5% yield on a junk bond, and he's going to take the proceeds to invest in bitcoin. this is of course new come of the first of its kind, but to me it raises the question of not only are people buying bitcoin. how much are people using borrowed money to buy bitcoin? you are not buying it, triple leveraged bitcoin junk bonds? tom: if you are doing high yield 600 basis points over the cost of money to try to make it, it is like telling somebody you are

going to guarantee 21% in hedge funds. romaine: meanwhile, you've got 154 basis points on the 10 year. tom: a pretty good move for the market this morning. stay with us on radio, on television. we are digitally wired. this is bloomberg. good morning.

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♪ >> i think the reopening has a long way to go. >> we still think we are in a bull market. obviously we had a correction. >> the bottom line as we are getting a big spike in inflation. >> the inflationary pressures we are seeing will abate, but i think we are in a pretty unique period of monetary policy. >> 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 gre i