commodities and where we focus on the companies, the physical assets and the companies with the smartest voices in the business. we will take a look at the top market stories of the week. the u.s. is awash in gasoline. stockpile this week are at a three-month high. demand fell to a three-month low. oil stocks are drawing but the demand, even as we pick up the driving season, has not measured up yet. if you live in new york city, you know it is hot. soybeans have been rallying on this weather, and this shows just how hot areas of the midwest are. the renter it is the drier and hotter it is, and that's having implications in the ag space. the u.s. will have a lower stockpile of corn then it originally thought. prices are seeing their longest rally since the end of december.

carbon dioxide levels are now at the highest level in 4 million years. that number is at 419 co2 molecules for every million of air. that makes sense because we are driving this industrial nation but that is a staggering statistic. so let's get into the ring and stay with climate. president biden and u.k. prime minister boris johnson met face-to-face today, illuminating that special relationship. joining us now is someone who covers all things green for bloomberg. can this special relationship to anything when it comes to climate? >> this year, boris johnson is also host to a climate meeting that happens annually. it will be held in glasgow this year, the united nations climate summit. what boris johnson can get world leaders to commit to in this g7 meeting will help build consensus for what is coming at

the u.n. meeting. that is probably the biggest thing that matters as to what comes out from these discussions. alix: none of it will be binding, so how does the talking turn to action, how significant does that windup coming? >> the g7 is a talking shop. the reason it is a talking shop, typically in a year not affected by the pandemic, early on, it sets the agenda for what comes on later on in the year. we know that among the many different things that ministers, finance ministers, health minister's have set on a climate so far, the one solid commitment we got from them using the words commit, was that they would phase out the use, financing of fossil fuel power plants, specifically coal powered power plants in foreign countries. now we have to see if those

policies will be adopted by those respective countries. alix: thank you so much, akshat rathi. time for commodity in chief, where we talk to one executive in the commodity world. today it is the founder of tomorrow.io. the climate is changing, it is getting hotter. the amount of co2 in the atmosphere is up 29% since 1958. snow is melting earlier, glaciers are shrinking, and average thickness of 30 glaciers has decreased more than 60 feet in 40 years. rainfall is getting heavier, sea levels are rising from 1.7 millimeters per year or most of the 20th century to 3.2 millimeters since 1993. and habitats are changing for plants and animals. all of this costs money. this chart shows the economic damage from climate change in the u.s. from 2082 2099 by temperature increase.

the hotter the temperature the more the damage. it could reach as much as 42% of gdp. investor data figures out how to win or lose money on this. companies need to decide where to build factories and ceos need to move supply chains. the problem, it is hard to get real-time weather data. a potential solution, tomorrow.io. their goal is to use sensors on satellites launched into space to get real-time weather data which they put into their own models to help companies make better decisions like, should the nfl have the game tomorrow, or should delta have all of their planes ready to fly this weekend? they hope satellites will give them better data. i recently caught up with them to see how this would ever work. >> about 70% of the businesses are impacted by weather and have significant exposure to climate security, climate change.

general extreme weather events. think about industries such as transportation, aviation, logistics, energy, utilities, renewables, insurance companies, sports and outdoor technology, the entire federal market. these are the core verticals we are looking at. even a restaurant or a school or university are impacted by the weather and have some level of exposure to that. alix: how do they use you? >> we have very large on-demand companies and we see their challenges. it is hard to say when it is raining in real time in most of the world. once we have those satellites out there, everything will be much more reliable. when we say this is a good time, this is where you should close the road to avoid flooding events, it will be much more reliable and useful.

currently, we still provide the best solution in the market thanks to our modeling capabilities, but once we combine that with perfect sensing ability, then the sky is the limit. alix: can you talk me through the satellites and sensors you will use, why it is different than the ones that are up there for example? >> it is really helping creating more accurate weather information on a global scale. just to give you a sense, today, weather observations are lacking in many parts of the world. about 5 billion people live outside radar coverage. to really make a situation in which we have unified, high quality weather forecasting across the globe, you have to tackle that problem. tomorrow.io decided to go after this, and that is why we decided to deploy our active radar space. alix: how many, when, how much does it cost? >> we are launching the first

satellite in the second half of 2022. we expect the full deployment of about 40 satellites to be over by 2024. think about radars. they send pulses and get pulses back. the reason we could not have them in space until today is, nobody tried it, it seems to crazy to do. we usually have raiders on the ground. more practically, it was very expensive. it is a big piece, heavy piece. but we were focus on in the last several years what to do a trade study, look at the market and understand what kind of technologies are out there, how we can take something the size of a school bus and turn it into a mini fridge, but not lose the ability to sense a wide area and the ability to do it reliably and in high resolution. that is the key innovation of what we were able to do in the

context of launceston this space constellation. as a company, we pretty much have the entire value chain from sensing to modeling, to software for every vertical, that provides the business recommendation. alix: how can you do all of this profitably? >> we expect by the beginning of 2025, we will get to the levels in which our constellation, together with the business model, can be profitable and turn it into a profitable business. alix: much does it cost to put together one of these satellites with all of the sensors, do you have an idea? >> we estimate the first units to cost about $5 million. getting it down to about $3 million as we scale constellation. alix: time now for your commodity kicker. the biden administration is walking on eggshells when it comes to deciding the fate of prairie chickens.

a proposal would lift the bird as endangered in the permian basin of texas and new mexico, clipping the wings of oil and gas development in the largest petroleum basin. it could also devastate another energy source, wind power. the fish and wildlife service is considering a mile wide safe zone around turbines where developers could really take it on the beak if they kill or harass endangered birds. here is what is on my commodity radar, iran. oil fell after the u.s. seem to be lifting sanctions on some officials tied to iran. this comes as nuclear talks seem to drag on and iranian elections are june 18. output is key to the oil industry. they now see a larger production ramp-up into the fourth quarter of 2021 and the first quarter of 2022, versus the back half of the year previously. this is key if demand picks up. before we go, a ring of fire

that even johnny cash would be in. the first solar clips being visible in northern canada, greenland, and the arctic. amazing. if you missed it, you'll have another opportunity in november. that does it for bloomberg commodities edge. catch us every thursday at 1:00 eastern, 6:00 london. this is bloomberg. ♪

>> welcome to bloomberg markets. in just a few moments, we will speak to wells fargo bank analyst mike mayo and get his take on the state of the industry and what he calls the

tale of two banks, or two kinds of banks. it will be an interesting conversation, for sure. we also speak to avon hurst and alexis ohanian. looking forward to that. let's get a quick check on the markets. the s&p 500 up .6%. u.s. equities rallying after the inflation data came out, roughly in line, a little bit ahead of expectations, 5% year-over-year for the headline figure. the fastest inflation we have seen since 2008. we are also seeing the 10-year continued to come down. 1.4688. that is real conviction the fed will not blink. the breakeven rate barely changed at 2.34.

bitcoin up .7%. we have seen bitcoin floating up and down throughout the day, but staying relatively -- four bitcoi -- for bitcoin -- relatively stable as far as the price action goes. we will be talking to mike mayo, the bank analyst that probably more people listen to than any other on the street. mike, thanks for joining us. before we get to anything else, i want your take on something related to quick to. the basel committee has ranked it as one of the riskiest assets you can hold. the basel committee working to save up risk for banks. what do you think of this move to put crypto's in the riskiest basket? mike: cryptocurrency is getting hammered in the new fed's stress

test. banks are being required to hold 12 times as much capital for crypto than for a traditional bank loan, so it is getting hammered, but it is getting treated like any other higher risk asset, like subprime loans, cdo's, derivatives, structured products. it is a new product, untested through economic cycles, untested for liquidity. i see this as the fed doing their job. their job is to keep banks boring. the stress test is two weeks from today. in the past, it used to be the super bowl of banking. today it is like a preseason game, where you hope nobody gets injured. frankly, the fed's past efforts have paid off. as you mentioned, this is a tale of two recessions. in the last recession, banks failed, they cut their dividends.

today, they have been a part of the solution to the economic problem of the pandemic,, they have more capital,, credit is improving. we expect banks to improve their capital a return from the stress test by two times versus the prior year. even congress -- i know bloomberg covered the congressional hearings with the bank ceos closely. even congress when they had a chance to ask banks about their financial conditions, only 13% of the questions were about bank safety and soundness. there were three times more questions about topics related to esg, environmental, social, governance issues. i think that that has the green light to allow banks to return twice as much capital but doing so with an eye toward higher risk assets such as crypto. matt: i want to focus in on the headline that i kind of flubbed, the tale of two recessions.

this is your take of what banks look like coming out of the great financial crisis, compared to coming out of this pandemic. the financial industry is in a much stronger position now, is that your take away? mike: it is night and day, and i would say, thank you, regulators, for ensuring banks hold more capital and more liquidity with better oversight by boards of directors and less of the most risky products. banks spent a decade of de-risking. we released a report this week that expects banks to release most of the reserves they built up for the pandemic last year. our estimates are that the largest banks are 7% above consensus or the second quarter and the year. that is the result of effective regulation and de-risking. matt: regulation gets praise from mike mayo. i want to listen in quickly to a

little bit of joe weisenthal's conversation with elizabeth warren and get your take on this as well. >> banks either holding bitcoin, that need to talk to with the bank regulators. there are a lot of different pieces to this. i think the answer that we saw today is, right now, our regulators and frankly our congress is an hour late and a dollar short. we need to catch up with where these cryptocurrencies are going. matt: she is focused on crypto, but she focuses more later in the conversation about regulation. we also heard from gary gensler. he wants to change the way capital markets work. does more regulation need to come? have we seen enough of the good regulation, are we in a good place now? mike: i think you need to focus on what you're trying to

accomplish. it is not one-size-fits-all when it comes to regulation. as you know, i worked at the federal reserve in the late 1980's, early 1990's. a very proud culture in preserving the health of the financial system. i feel like we have come back to that point. having said that, there are ways to make regulation much more efficient. the cost of regulation probably can be reduced while still achieving similar aims. you are not hearing me say more regulations, but more effective and efficient regulation, absolutely, today and forever. matt: it seems one of the things congress wants to do is make sure wall street does not lend to businesses they consider bad actors, although they are not regulating the oil patch themselves. congress also seems to want to

stop overdraft fees, essentially forcing banks to pay for americans who forget to check how much money is in their account and continue writing checks. they really seem dead set against these bankers. that is the general feeling right now, even though they are in a better place than in the great financial crisis. what does that make you feel as an investor? mike: from a regulatory and political standpoint, thomas jefferson said bankers are more dangerous than standing armies. our country has a long history of not trusting bankers. it's a matter of less bad, a little more recognition that banks were a part of the solution in this recession, not the problem, like the last recession. in terms of the esg efforts by the banks, you saw bank of america commit to paying a $25 minimum wage by 2025.

the new ceo of citigroup, day one on the job, to commit to net zero climate emissions by 2050. i think the banking industry is playing ball, and i think the tone is set from the current administration, where they said let's be less tribal and collaborate where it makes sense. i think banks are making an effort, even if not always in the shareholder interest. that is certainly something that came out in the congressional hearings, shareholder meetings, which i still attend. banks are still making that effort to be more attuned to the issues of society. matt: bottom line, mike mayo says u.s. banks are primed to double their capital returns. thank you for your time. appreciate any insight from you. wells fargo bank analyst, mike mayo. still ahead, we go to the u.k.,

where boris johnson has ramped up a meeting with president biden ahead of the g7 in cornwall. we will go there next. this is bloomberg. ♪

matt: welcome back to bloomberg markets. as promised, we are going to go down to cornwall. one of the most beautiful parts of england, i would say, although i have limited travel experience. guy janssen is there after boris johnson finished his bilateral meeting with president biden ahead of the g7. how did that go? guy: i think it went pretty well, the body language is pretty good. the bidens and the johnsons met, the body language looks solid, the language is good.

boris johnson described in the last few minutes the new administration in washington as a breath of fresh air, which is interesting. boris johnson was seen as being closely allied with the former incumbent of the white house. interesting that he is talking about the new incumbent as being a breath of fresh air. the meeting went well, there was a focus on security. that will be a big part of joe biden's press when he is visiting here in europe, going from here to an eu summit. then he meets vladimir putin later in the week. security will be a huge feature. he is basically trying to produce a new group of democracies that will push back against the autocracies of the world. they signed a new atlantic charter today. the last one was signed by fdr and winston churchill in 1941, about pushing back against nazism.

that was the narrative we got today. matt: guy johnson, thanks very much. doing triple duty in cornwall, covering this important g7 meeting. coming up, we will speak to the cofounder of reddit, alexis ohanian, about his new venture firm, 776. emily chang joins us. this is bloomberg. ♪

we know how much you count on us... ...and that's why we're here 24/7... ...and on the road maintaining a fast and reliable network. we're always working to ensure the internet meets your needs... ...by making access easier for all... ...with comcast lift zones and our internet essentials program. we're invested in making our apps easy... ...to give you personalized assistance around the clock. and we're committed to keeping our team and customers safe by working from home... ...and using precautions in store. see what we're up to at xfinity.com/commitment

matt: president biden making live comments in cornwall. president biden: queen elizabeth the second, the entire royal family, and the people of the united kingdom, today would have been prince philip's 100th

birthday. i know there are a lot of people feeling his absence today. in addition, i would like to point out that the greeting from the british government has been exemplary. we have been a good first full day here in the u.k.. prime minister johnson and i had a very productive meeting. we discharged and discussed a broad range of issues on which the united kingdom and united states are working in very close cooperation. we affirmed the special relationship -- and it is not said lightly -- the special relationship between our two people and renewing our commitment to defending the democratic values at both of our nations share. the strong foundation of our partnership. 80 years ago, prime minister winston churchill and president franklin roosevelt signed an agreement known as the atlantic charter. it was a statement of first

principles, a promise that the united kingdom and united states would meet the challenges of their age, and they would meet it together. today, we build on that commitment with a revitalized atlantic charter, updated to reaffirm that promise, while speaking directly to the key challenges of this century. cybersecurity, emerging technologies, global health, and climate change. we discussed our common goals for driving ambitious global action to address the climate crisis, and the climate leaders summit i hosted in april was in part about helping to drive forward the momentum toward the critical cop 26 that the u.k. will hold in glasgow later this year. we talked about the shared sacrifices our servicemembers have made, bravely serving side-by-side in afghanistan or close to 20 years.

the u.k. was with us from the start, as they always are, equally committed to rooting out the terrorist threat. and now we are coordinating our withdrawal together. of course, we talked about how our nations together can lead the fight against covid-19. that has been the main focus of the g7 under british leadership, and in core knitting our resources to help vaccinate the world. tonight, i am making an historic announcement regarding america's leadership in the fight against covid-19. american knows firsthand the tragedies of this pandemic. we have had more people die in the united states than anywhere in the world. nearly 600,000 of our fellow americans, moms, dads, brothers, sisters, grandmothers, grandparents. more deaths of covid-19 in the

united states from world war i, world war ii, the vietnam war, and 9/11 combined, combined. we know the tragedy. we also know the path to recovery. the united states has now vaccinated 64% of our adults with at least one shot. just for an half months ago, we were at only 5% with one shot. it took a herculean effort on the part of our government to manage one of the biggest and i would say one of the most complicated logistical challenges in our history. it took the ingenuity of scientists building on decades of research to build a vaccine. it took the full capacity of american companies, manufacturing and delivering the vaccines around-the-clock. as a result, we have the lowest number of daily deaths since the first day of this pandemic.

our economy is rebounding. our vaccination program has already saved and of thousands of lives, and with that count growing every day, has allowed millions of americans to get back to living their lives. from the beginning of my presidency, we have been clear i'd, -- eyed, that we need to attack this virus globally as well. this is about our humanitarian obligation to save as many lives as we can. and our responsibility to our values. we value the dignity of all people. in times of trouble, america reaches out to offer a helping hand. that is who we are. when we see people hurting and suffering anywhere around the world, we seek to help the best we can. that is why under both republican and democratic

presidents the united states has made transformative commitments to bolster global health. commitments under president bush like pat far, which changed the fight against hiv-aids. and at this against covid-19. it is also in america's self interest. as long as the virus reaches elsewhere, there is a risk of new mutations that could threaten our people. we know that covid-19 raging in other countries holds back growth, raises instability, and weakens governments. as we have seen in the united states, with evidence that is cleared day by day, the key to reopening and growing economies

is to vaccinate your people. our vaccination program has helped the american economy begin to recover from the worst economic crisis in a century. over 2 million new jobs created just in the last four months that's i've become president, an historic decline in long-term unemployment. businesses reopening and a projected economic growth of 6.9%, the fastest in nearly four decades in america. just as the american economy is recovering, it is in all of our interest to have the global economy begin recovering as well. that will not happen unless we get this pandemic under control worldwide. that is why, as i said in my address to the joint session of congress in april, america will be the arsenal of vaccines in our fight against covid-19, just as america was the arsenal of democracy during world war ii.

over the past four months, we have taken a number of steps toward this historic effort. we have contributed more than any nation to covax, a collective global effort delivering covid-19 vaccines across the world, through supportive manufacturing efforts abroad in our partnerships with japan, india, and australia, known as the quad. we have shared doses with our neighbors, canada and mexico, and in addition, three weeks ago, with america's vaccine supply secured and with confidence that we have enough vaccines to cover every american who wants one, we announced that we would donate 80 million doses of our own vaccine in-house now to supply the world by the end of june. many of these doses are shipping to countries around the world as we speak. today, we are taking a major

step that will supercharge the global fight against this pandemic. at my direction, the united states will purchase an additional half doses from pfizer, the pfizer vaccine, and will donate nearly 100 to low and lower middle income countries. let me say that again. the united states will purchase half a billion doses of pfizer's covid-19 vaccine to donate to nearly 100 nations that are in dire need in the fight against this pandemic. that is an historic step. the largest single purchase and donation of covid-19 vaccines by any single country, ever. importantly, this is the mrna vaccine, which has proven to be extremely effective against covid-19 and every known variant of that virus thus far.

these have a billion vaccines will start to be shipped in august, as quickly as they roll off of the manufacturing line. 200 million of these doses will be delivered this year in 2021. 300 million more will be delivered in the first half of 2022. let me be clear, just as with the 80 million doses we previously announced, united states is providing these half million doses with no strings attached. let me say again, with no strings attached. our vaccine donation do not include pressure for favors or potential concessions. we are doing this to save lives, end this pandemic, that is it, period. i also want to thank albert borah, the pfizer ceo and chairman for joining me today. we have got to know each other the last few months.

he and i and his entire team, they have really stepped up in this fight against the pandemic. the plan is for a half-billion doses that we will be sending around the world, produced in the united states, including their plant in kalamazoo, michigan. 80 years ago, not far from that plant in kalamazoo, in the detroit area, american workers built tanks and planes and vehicles that helped feed the global threat of fascism in world war ii. they built what became known as the arsenal of democracy. now, a new generation of american men and women, working with today's latest technology, is going to build a new arsenal to defeat the current enemy of world peace, health, and stability, covid-19. albert was gracious enough to welcome me back in february.

it's incredible the ingenuity, the care, the safety that goes into every single dose. i tore the entire plant. most of all, you feel the pride of every single worker, the pride they feel and what they are doing. i have been to a lot of plants, i'm a big union guy, have been doing it my whole career. but you can see it on their faces, they are proud. i mean that sincerely, they are proud of what they were doing. they knew what they were doing. american workers will produce vaccine to save lives of people in africa, asia, latin america, the caribbean. people they will never meet and have never met. places they have never visited and probably will not have an opportunity to. lives saved all the same, thanks to american leadership, american workers. hard work and values.

let me close with this. this is a monumental commitment by the american people. as i said, we are a nation full of people who step up in times of need to help our fellow human beings, both at home and abroad. we are not perfect but we step up. but we are not alone in this endeavor, that is the point i want to make. we are going to help lead the world out of this pandemic alongside the help of our global partners. under the u.k. chairmanship of the g7, democracies of the world are poised to deliver as well. this u.s. contribution is the foundation for additional coordinated efforts to help vaccinate the world. the british government, prime minister, has led a strong campaign to get people vaccinated across the u.k. i am grateful that they are making their own generous donation. tomorrow, the g7 nations will be

announcing the full scope of our commitment. i want to thank all of my g7 partners for stepping up to recognize our responsibility to meet the moment. i'm looking forward to working with my counterparts on these efforts in the coming days and much more. one final point i want to make clear. this is not the end of our efforts to fight covid-19 or vaccinate the world. we have to turn manufactured doses into shots in arms to protect people in communities. that is why the united states is already providing hundreds of millions in funding to support last-minute vaccination efforts, including new funding from congress as part of the american rescue plan. working with programs in latin america, asia, and africa, we will keep manufacturing doses, donating doses, getting jabs, as

they say here in the u.k., in arms until the world has beaten the virus. thank you all. now i want to turn it over to my friend, ceo and founder of pfizer, albert barlow. thank you again for stepping up. >> thank you -- matt: did you have president joe biden giving a statement in cornwall talking about the u.s. commitment to vaccinating the rest of the world. biden says we will begin sending out 200 million doses this year in august, another 300 million next. he will work with counterparts in the g7 to donate more. i think we have already broken the news it will be about a billion in total, the g7 will

help out with over 100 countries in terms of doses. let's quickly mention, you can listen into that speech on your bloomberg terminal. i want to get over to tina fordham from avon hearst, a partner and head of global political strategy. she will give us some insight into what we have learned so far in the g7, what they can achieve. appreciate your time today. we heard president biden talk about the importance of vaccinating the rest of the world. also admitting there is a little bit of self-interest here. how key is it to get this done quickly for the global economic recovery? tina: for global markets, the economy, the end to the pandemic and reopening, it is the key variable. for investors, all politics,

economic policy is really about progress on ending the pandemic. this announcement, if it is backed up with action, is probably the best thing we could have heard. matt: the collaboration seems good. it looks like joe biden is in cornwall to make friends right now, trying to repair some of the damage that has been done to the relationships by our previous president. what kind of progress is he going to make on that front? tina: the political imperative for the biden administration has been to come to cornwall and say america is back, and you can trust us again. but as you alluded, the decline in trust in the united states is probably going to outlast the biden presidency. the u.s. has not shown itself to

be a reliable partner in the eyes of the european union, the u.k. there is a norma sphere -- enormous fear, here in europe and elsewhere, that trump or somebody like him could be reelected. there is a relief that biden is signaling corporation -- cooperation on things that matter like climate change, vaccine distribution, other types of global coordination, but that is as far as it will endure. matt: i'm here in berlin. angela merkel has made it clear previously that we are not going back to the kind of relationship that we had under president obama. but there are so many issues that are key, in terms of cooperation. the fight against russia and vladimir putin, the problems we have with china and human rights abuses. is it going to be possible for the g7 to make headway on these

prickly issues if they are not working together as well as they have in the past? tina: i was just listening to your broadcast of president biden's remarks. it seems to me he has two constituencies he was targeting. of course, the domestic audience, the clear connection between the vaccines and the american worker, and the other was russia and china, his comments about no strings attached with the distribution through covax. that is a clear swipe at china and its vaccine diplomacy. the u.s. and the g7 are coming a bit late to it but not too late. in latin america and africa, other parts of the world, they have yet to get jabs in arms. investors are coming to understand, until the whole world is vaccinated, these mutant variants will keep impacting us here at home.

i would be very surprised if we open up on the 21st, as the prime minister has been planning. matt: thanks very much, appreciate you sticking with us and giving us your thoughts. tina fordham, partner at avonhurst. coming up, restoration hardware is one of the big movers in today's session. it is our stock of the hour. this is bloomberg. ♪

matt: this is bloomberg markets. i'm matt millers. now do something that caught my, and everyone this morning, that is the u.s. inflation data. the core number rising year over year, 3.8%.

that is the highest level since 1982. you thought the headline number was a big deal, but that only goes back to the worst since 2008, or the best, depending on how you see inflation. didn't i say 1992? in any case, it's been a long time since we have seen core cpi at this level. the markets basically shrugged it off, which i thought was the interesting thing. gains across the equity indexes and investors are back buying bonds. they pushed the 10-year yield to 1.4671. an incredible rally in bonds that just keeps on going on. now it is time for stock of the hour, restoration hardware beat estimates once again. this time, it's being paid off with its best day in nine months. dave wilson is looking at the results of rh.

a very popular furniture retailer. dave: all kinds of home furnishings. you think about what's been going on the past year with people staying home, buying new furniture, new accessories, whatever, and you wonder how are things going to go now that we are getting out from under the pandemic, people have other things to spend their money on? it doesn't seem to be an issue for restoration hardware. earnings beating average analyst estimates in the bloomberg survey by 20%. consistent with what they have done for the past five years or so, well ahead of projections. sales came out ahead of the average estimate by 14%. that was the biggest margin since the company went public in 2012. on top of that, rh raised its fiscal year forecast, bringing up revenue by 10 percentage points, as much as 30% they are looking at now, higher operating profit margin.

in terms of the second quarter, you see revenue growth, faster than anticipated for the year, and consistent with what the company said in its earnings release, talking about how in their view, this fiscal year will be a tale of two halves. they anticipate things will slow down but they see plenty of room for growth ahead. matt: i once won a little bit of money in the lottery, went over to restoration hardware to furnish my home. it was quite expensive, actually. as far as i recall, there was not much out there that competes with a furniture maker at this level. either you get the cheaper stuff -- i'm not saying it is worse, not a value judgment, from crate and barrel or those kinds of places, or you go really expensive and have it made in the appalachian mountains. as far as i can see, this is

really the only middleground, expensive, heavy furniture, high quality, well-built. what kind of competition do they have? dave: not a lot. you go through the earnings release and it points out the focus over the last several years on the luxury end of the home furnishings market. what you are seeing is certainly consistent with what the company wants you to see as far as that goes. analysts have taken notice, they are raising their share price estimates, ratings. what is really interesting, you look at the average projections in our survey. around seven hundred two dollars as we speak. rh shares right now are treating above 703. it looks like the analyst may have to go back to the drawing board and figure out what to do with this company now that the latest quarterly results are out. matt: i'm looking at the rv function on the bloomberg

terminal. i'm reminded of ethan, who also makes high quality and high price tech furniture. i will put this out on twitter. i'm in the mood for new furniture and i don't know where to go. here in germany, you have them make it up for you. dave wilson with restoration hardware. rh, your stock of the hour. let's get a quick check of where the markets are, about to hit 2:00. we had these inflation numbers out for a solid 5.5 hours. the s&p 500 up .6%. the nasdaq climbing .73%. the 10 year to drop, 1.4654. wall street does not think the fed will blink. there you have the toronto s&p tsx also gaining .3%.

we missed amanda lang on days like this. she will be back tomorrow, as well as i, with all the news you need to know, as well as some that is just fun to know. i'm matt miller. this is bloomberg. ♪

so... i know you and george were struggling with the possibility of having to move. how's that going? well... we found a way to make bathing safer with a kohler walk-in bath. it has the lowest step-in of any bath. it has handrails, a wide door, and textured surfaces. so it gives you peace of mind. and you would love the heated backrest - and the whirlpool jets - and the bubblemassage. and, it was installed quickly and conveniently by a kohler-certified installer. a kohler- authorized dealer walked us through every

step in the process and made us feel completely comfortable in our home. and, yes, it's affordable. looking good, george! we just want to spend as much time as possible, in our home and with our grandkids. they're going to be here any minute for our weekly spa day. ooh, that bubblemassage! have fun! stay in the home and life you've built for years to come. call 1-800-986-5068 to receive one-thousand dollars off your kohler walk-in bath. and take advantage of our special offer of no payments for eighteen months.

>> broadway is. -- broadway is returning. bloomberg surveillance, weekday mornings on bloomberg television and radio. >> i am mark crumpton with bloomberg first word news. boris johnson is weighing the

easing of covid curves. lockdown rules which in effect in january with remaining restrictions set to lift june 21st. the delta variant, first reported in india, is rapidly spreading in the u.k.. ahead of the g7 summit in cornwall, warnings to russia and china that the eu will defend itself from security risks. here is european council president charles michelle singling out china. >> china is a partner, a competitor, and a potential threat. we will defend ourselves against security risks that are incompatible with our values. >> g7 leaders are tackling tough issues where china and russia are key.