♪ >> if there's anything we've learned in the last couple of months, it is that you can't just turn on a switch and have the economy come back online. >> low inflation, low rates, positive economic growth and strong earnings? that's a pretty good backdrop for risk-taking. >> the fed has successfully lulled everybody to sleep with the kool-aid that they are never really going to focus on inflation. >> the question is what risks are most important to the fed, and what risks are most important to the real economy? >> this is "bloomberg surveillance" with tom keene, jonathan ferro, and lisa abramowicz.

lisa: countdown to the federal reserve on wednesday. good morning. this is "bloomberg surveillance" on radio, on television. jon ferro off. romaine bostick very much in. countdown to the fed seems to be the theme of the week. the question is whether we get any hawkish rhetoric, but perhaps the biggest question is just hurry up and wait for a certainty that just isn't going to come for months down the line. tom: i am going to the land of romaine bostick, and that is the massive mystery here will be not only the earnings season, but the reset to q3 and q4. i look at q3/q4 is a complete and total mystery. everyone on wall street will be listening to those corporate reports. lisa: in the meantime, that is why the stock traders are looking to the fed because there's not a lot of other data. earnings have slowed now. what is your view on how sensitive stocks are at this point to the fed that could talk about thinking about talking about thinking about tapering?

romaine: you saw a crawl to that record high last week, but it really was a crawl. a lot of traders and investment strategists are saying we could see a little more of a hawkish tone, and that you need to position for that potential here. but go back to what we just heard from robert tipp in the previous hour. the idea that if yields have effectively peaked for the year they're going to stay below 1.5%, that may be adds a little more impetus for folks to take a little bit more of a leap out on the risk. lisa: tom, robert said that we could see already the peak of treasury yields, that it could go lower from here. that has to do with the fed, but also to do with demographics. what does that do for stocks? that pushes them higher. what does it do for the asset market? tom: i'm really glad you picked up on that because steve major and others at hsbc looking for a

higher yield. the degrade and's don't really matter, but there is such a zeitgeist for higher yields that when you hear somebody as esteemed as tipp say that, you stop dead in your tracks. lisa: especially when you have the likes of j.p. morgan saying don't give up. you've got to wonder, this is a pretty bifurcated camp here. tom: let me do the data check now. it is red and green on the screen. we did a gala check -- we did a data check earlier, but i don't want to go too general. the vix, 15.94. in the yield space, as they call it, we are at a 1.46%. we come down to a 1.54 -- we come down to a 1.45% handle on the 10 year. oil, we didn't get up to $74 a barrel. let's dive into this right now on a monday reset. we are watching the affairs of

nato. to bring you up to speed -- excuse me, and gasping over the length of the carpet -- to talk about nato, we had the photo shoot. we had the meet and greet. it looks sort of hollywood, to say the least. maybe now we go into individual discussions to be had in nato, bilateral's as they call them. mr. biden meets with mr. putin. mr. bruton within the last couple of hours making some very tough language on how he sets up his meeting with the president of the united states. tough language now from brian nick of nuveen as we try to get out of the way of the markets. how do you frame the mystery of q3 and q4 earnings? brian: we are actually just starting to write about this for our outlook. the key is how are things going versus how is the market expecting them to go.

the first half was all about exceeding expectations, economic data beating expectations. the vaccines themselves being more effective and widespread. i think we are getting to this point where the markets and the economy overall are starting merely beat expectations. that is why i think you have seen a bit of tapering back in the 10 year. i think you have seen a bit of flattening out in the pace of increase in the equity markets, at the pace of the narrowing spreads in the credit market. everything has come to not quite a crawl, but assets hi as we are approaching some equilibrium level until we get some news on how the second half of the year is going to go. we are expecting fewer surprises than we have gotten in the last couple of quarters from earnings is in, and that probably has some relation to what is going on in the bond markets as well, with the 10 year coming off and the fed fed expected to remain quite dovish in the june meeting. i think if they say anything hawkish, it will be a mistake. lisa: give us the distinction

between successful and beating expectations and disappointing expectations. is it companies that have pricing power, that can raise prices on consumers to meet some of the supply chain disruptions, or is it simply being big tech, and everyone needing an iphone? brian: that is certainly the pattern we are used to, when the world is decelerating. that is tech's moments to shine. any time they have not beat as reliably, that has been a really good time to be intact. we have -- to begin tech -- to be in tech. we are kind of spread out across the board because we are obviously leaning into the uncertainty, but also looking for a pretty sharp and noticeable deceleration in economic growth in the u.s. overseas, i think we are still waiting for peak economic growth in europe and asia and emerging markets as they get vaccinated,

so there could be a bit of a rotation as investors look for where we are still seeing the news eating expectations. they could be outside the united states. romaine: are you concerned at all about the inability to properly forecast some of the economic trends out there? we are starting to see a lot more surprises, if you will, at least as far as what certain economists and strategists on the street are expecting with regards to the economic data points not only in the u.s., but overseas as well. do you think that could end up creating a bit more volatility as we go forward? brian: certainly outside the u.s., we are still seeing most of the data coming in better than expected. if you've got an economic model that worked for the last session, it probably doesn't work well like a light switch, turning back off and on. especially with the vaccinations being a unique variable to this recession, that has caused a lot of the economic forecasting to be too low. i think we are starting to see

that oversees more as well. in the u.s., we have seen surprise in indexes we track, coming down close to neutral. the housing market is showing signs of cooling up just a bit -- cooling off just a bit. it should be easier to forecast these things once we get these strange and unique variables out of the way. tom: the calculus off of pre-pandemic is s&p up 35%. sort of a blended bond event, up 3%. you made the coupon and a teensy woodsy -- a teensy bit of total return as well. i say this with immense respect to what nuveen invented across america with the packaging of unit trust. our we worn out from bond returns? brian: i think we are telling clients you should be diversifying into higher-yielding or just non-correlated parts of the

fixed income market. whether or not rates move up from here, it is going to be tough over the next year with a traditional bond portfolio, given how low yields have gotten. if they move higher, it will be even tougher to expect that they will over the next year or two years, three years. but we are looking to set up instead is part of the municipal bond market, emerging-market, credit, anything that is sort of less correlated to rising rates or less susceptible to rising rates, anything like in the loan area where you could be building out a little bit more protection against that rise in rates that in the knocking a lot of things off the board. tom:tom: brian nick, thank you so much. what is so important about the 3% bond return that is triple the triple all leveraged cash fund. lisa: that is the issue here. how do people get returns if things are where they are right now? brian: it is brutal -- lisa: it

is brutal. that's why you get the $7 trillion private asset complex trouble going to $13 trillion 2025, if you believe morgan stanley. tom: i could go on on this all day. i look at the actuarial presumption, the ability long duration managers have, and it is brutal. i got a heartbreaking note from one of our viewers and listeners this weekend about where they are down to just survival spending because they just, they are comfortable in bonds, and it ain't working. romaine: a lot of them have started to look elsewhere. they are obviously going to have a lot more constraints in your average fund out there. we've heard time and time again from books who manage some of these -- from folks who manage some of these funds that there are returns to be had. lisa: the concern is how far into risk do you have to go to get returns. romaine: how much risk is there? brian: well, that's it -- lisa:

well, that's another question. but if there's a downturn, stocks aren't going to do that. if there's an actual economic downturn. but they still have an actuarial assumption of 8% at a time of sub 1.5% 10 year treasury yields. that's the problem. they are to have to adjust what they pay out or how money taxes they bring in. tom: 8% is a fact from the past. i would suggest a lot of people at 6%. what i look at is the london actuarial assumption on annuities. i haven't kept up with it, but it was 4.1% a year or so ago. that is now an 8 -- that is not an 8% actuarial assumption. lisa: and i think that is realistic at this point. tom: we will have to see. time for an obligatory dog video. this works on radio. on radio, this is an annual tradition we have come at a look at the westminster dog show.

the late, great ken prewitt. every year he brought a different dog. by the time he died, he had like seven dogs. he had a cocker spaniel. he had a pekingese. what do you do with a beginning? do you put it -- with a pekingese? do you put it on the couch? lisa: it does look like a couch cushion. romaine: that's an expensive dog. [laughter] ritika: with the first word news, i'm ritika gupta. president biden tried to assure u.s. allies today by reemphasizing washington's commitment to the nato. at a summit in brussels, the presidents had a strong alliance is important for america, after donald trump questioned its value. biden said he viewed the mutual defense guarantee as a "sacred obligation." novavax says it's shot was highly effective against

variance in a large late stage study in the u.s. and mexico. preliminary data showed it was safe. while demand for shots in the u.s. has dropped off dramatically, the need for vaccines around the world remains critical. electrical vehicle maker lordstown motors is losing its top two executives. the chief executive officer and chief financial officer have resigned. the departures are a later step back -- are the latest downturns . u.k. prime minister boris johnson is expected to announce that he will not lift england's virus curbs for up to four more weeks, amid concerns of a rapid rise in covid-19 cases. a delay would delay below to

entertainment and hospitality businesses that have been closed or operating under tight controls during the pandemic. global news 24 hours a day, on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i'm ritika gupta. this is bloomberg. ♪

♪ pres. biden: i think he's right that it's a low point, but this is not a contest of who can do

better in front of a press conference or try to embarrass each other. it is about making myself very clear what the conditions are to get a better relationship. tom: the president of the united states in cornwall, now in brussels, on his way to a good conversation in geneva with president putin tomorrow. jonathan ferro, lisa abramowicz, and tom keene. jonathan ferro out. romaine bostick helping us this morning. right now we go granular with gregory valliere. he has a life tied to the south of switzerland with some st. bernard somewhere on his way to milan. he's leading the way to american tourism in europe. very quickly here, should americans travel to europe? your leading the way. greg: if you had your shot, if you have been tested recently, yes. tom: we will leave it there. there's too much going on. i want to go to a great npr thing i heard on tennessee,

which is the the distance between memphis and nashville, where the democrats get gerrymandered out, and this cost to democrats the house. how may battles are out there now to give speaker pelosi some serious angst? if forced to make a wager today, i think the house falls to the republicans in 2022. the history would indicate it. the redistricting would indicate it. i think the republicans are favored. tom: what kind of republican house would be? would be fragile and of gridlock? greg: it would be fragile. i think carthy is going to have a shy think mccarthy is going to have -- i think mccarthy is going to have his hands full. but i think you do get gridlock in the last two years of biden's first term. tom: this is the first real conversation we had about a

majority gop in the house. lisa: the idea of what happens if the democrats can't go it alone, and how much urgency is there behind them to get something done before the 2022 midterms. what is your sense of how likely it is that we see some sort of deal, whether bipartisan or partisan, by next year, given all of the hurdles and the definitions -- and the divisions within the party? greg: i think you get something on infrastructure. it sure isn't going to be $2.25 trillion. $2 trillion for social programs is on life-support, and i think the big tax hike is also on life support. there might be a little on the very wealthy and corporations, but a grandiose tax hike but biden once i think is in real trouble. lisa: meantime, there doesn't seem to be some unity when it comes to republicans and democrats on international strategy, particularly with

respect to china. i wonder whether bidens tour really gives light to how far the u.s. has gotten from european allies when it comes to what exactly they should do with with spec to china. -- with respect to china. greg: i think biden sort of got what he wanted from allies on china. we are demanding the day treated their dissidents better. we are demanding that they stop hacking into our companies. we are united in opposition to china right now. romaine: do you think some of those allies have the same wiggle room to push back against china in the way that maybe the u.s. has? greg: good point. i think the u.s. is more adamant. the other europeans have issues, including putin, of course, but again, biden got in the communique what he wanted. he didn't get everything.

we still can't decide what we are going to do with coal. he and trudeau did not agree to opening of the border with canada. it in the first part of this trip, it has been a great public relations success. i think aydin's numbers are headed -- i think biden's job approval numbers are headed higher. romaine: do you think some of the international gains he had been making on the international stage, that that actually translates to the people on the ground in the u.s., and the likelihood that they may vote for him or his party again? greg: i think within a week or two, biden's numbers will be a little over 60% positive or get that gives him political capital. he's going to need it to get much done on infrastructure. i think we are several weeks away from ironing out any kind of deal on infrastructure, so he needs that high approval number to help cause. tom: one final question here. we've got to get back to the markets and what we are seeing at nato. in this political maelstrom, we

seem to be back to normalcy. can you say that mr. biden has drag us back to a diplomatic and domestic normalcy, or is the jury still out? greg: i think the answer is yes. whether it was macron and merkel, the u.s. -- they believed the u.s. was back to normal. but there's a sense that after these four horrible years, things are returning to normal. tom: very good, greg. greatly appreciate it this morning, joining us from the alps of switzerland on his way to italy, which is maybe the best news in 18 months. brave to go over to europe and they give -- and begin the tourism grantor -- tourism grand tour.

we were on break when mr. erdogan arrived, a separate discussion with respect to russia. lisa: it will be interesting to see how he tries to shore up some alliance in preparation for that wednesday meeting with putin. you say it is brave to be a tourist, so you will applaud my efforts, right? romaine: where's lisa going? tom: we've all come out of this pandemic each in our own ways. i was out this weekend for the first time in i'm going to say 14 months, and there were some really emotional hugs with people who have essentially been unemployed for a year. there's no other way to put it. romaine: absolutely. i was also out and about in the city. i'm getting on a plane in a few days as well. so a lot of us want to get back

out, but still some caution here. some of us want to get to see our family for the first time in 15 months. tom: absolutely. entering, the former prime minister of norway to lead this nato meeting. his tour of duty through 2022. boris johnson recovering from cornwall, recovering from what appeared to be a very successful event. very quickly, i want to make note of the low yield shift you have seen in the present move of the nasdaq 100. the nasdaq 100 very fractionally , small tea leaf, leads the way today. that indicates that low yield feel. romaine: this is a slow crawl we have been seeing for the past couple of weeks. we are up by only about 0.3%. what with his yield environment right now, yo macy people saying that longer duration equities are there. tom: on bloomberg radio and

television, we will continue an eventful week. tomorrow, retail sales. our special coverage of the fmc -- of the fomc, that will begin wednesday. this bloomberg -- this is bloomberg. ♪ ♪

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tom: bloomberg surveillance. jonathan ferro, lisa abramowicz, and tom keene. an eventful monday. the market quiet. we know brent crude out to a 73 handle. there it is. i will do the data wicked quick. wicked is what they say in boston. euro-dollar 1.2160. the yield just under 1.46. let's get right to michael darda, m km partners, to set up the economic week. he joins us somewhere from the vicinity south of cape cod. martha's vineyard, you are living it. wages, lack of labor, lack of

housing. a microcosm of what we have worldwide. are we going to see wages rise and stay elevated? michael: we are seeing them rise. certainly on the vineyard you can see the supply-side disturbances that have been holding back job growth over the last few months. we are way out in the westerly remote part of the island. there are only a couple options in terms of restaurants where we are. none of them are open for indoor dining. it is not because of covid, it is because they cannot find employees. it is essentially a takeout situation. tom: that is terrible. lisa: i am crying. tom: get out the grill, play the grill album from james taylor and look forward. let's look at the national situation. michael darda, do you believe in

assisting to gdp? looking at the top level in linking the nominal gdp to where we are, do we with judge the sustainability of this economy to boom? michael: i think that is exactly what is happening. there are some supply-side dislocations that are confusing but i think growth will be strong, well above potential next year. that gets us to this question about inflation and whether it is temporary or more permanent. some of these price spikes are going to be temporary. you will not see used car prices going up 7% every month. there are other prices that are stickier that we could see start to move next year if we stay in this robust nominal gdp environment. milton friedman posited the relationship that monetary policy eases first so money gets going. you see the output move.

in terms of the lag on inflation, inflation is backward looking in slow-moving, and it could be a few years. we are already seeing inflation from the supply-side shocks, but the demand side element will be more persistent than widely expected. tom: that is the first time in the history of the people's republic of martha's vineyard you have heard the name milton friedman mentioned on the island. it has never happened before. [laughter] lisa: thank you for the bloomberg exclusive, michael darda. we excrete -- we appreciate the mention of milton friedman. how do we know the idea of sticky inflation, given the fact people have pointed to wages, people even dismissed that as transitory. michael: no doubt. we know these flexible prices are rocketing and those will be the first to respond. they will supply -- they will

respond to supply-side and demand-side shops. this to be a prices tend to be more slower moving and you have a lot of monetary policy officials that are in the temporary camp, looking at shrimp prices for these different -- looking at trimmed prices for these different prices, so we are getting into the weeds but these are slower moving prices that will tend to respond over time. those areas next year may start to get moving, along with higher inflation expectations. that is going to get the fed's attention and away some of the price increases have not. lisa: lets you mount a little bit. the balance of risk, is it the higher yield or lower yield and poorer performance in equity markets should the reality of slower growth set in after this inflationary slump? michael: i think the risk is to

higher yield from where we are right now. our forecast for year end is 2% on the 10 year treasury. recently we have run up to the one 70's in late march and pulled back. that pullback corresponded perfectly with a few months of disappointing job gains, that we were seeing pressure on wages and hours worked. the supply-side disturbances holding back job growth. if we see job growth accelerating towards those seven-figure thresholds, that i think you will see bond yields moving backup towards the highs of the year and potentially even higher. that is our view. obviously the market will decide at the market is going the other way on yields for the last couple of months. that is what turned the tide. you have a lot of bearish sentiment in the bond market and it took a couple weaker than expected readings on jobs to

trigger a rally. i think that will reverse over time and job growth accelerates as some of the supply-side pressures ease up. that is our view. romaine: certainly a lack of consensus with the way things are being priced. maybe you can go through some of those additional pressures, particularly against the backdrop of whether there is distortions in the market by fed policy and whether the data leads to further distortion? michael: no doubt about it. on the job growth angle, we have some issues from extended unemployment benefits. that has increased the reservation wage, the wage that would call someone off the couch were waiting at home for a better opportunity to get involved in the labor market. there is also been some hesitation on the part of the public in terms of risk to interfacing with the public.

i think those will be easing back as a bigger percentage of the population is vaccinated month over month. we have had a problem with schools being closed and parents dealing with issues with respect to childcare. all of those things should be improving over the course of the months ahead. we have half the governors scaling back the jobless benefits. these will start to roll off completely in the fall. schools are reopening and we are doing pretty well on the vaccinations. a lot of these issues will reseed that have been holding back job growth. we are accelerating on job gains. we are getting closer to the fed starting to think about talking about and then start talking about talking about the taper. romaine: definitely going to be a lot of talking. tom: looking so forward to the fed beating. -- looking so forward to the fed meeting. romaine: the idea that some of

the issues in the labor market are causing an increase in wages. i guess that is a good thing. there is concern that is definitely the sticky part of the inflation debate and that even if we do get some sort of rightsizing in the labor market, those wage gains will still be there. michael: they will still be there because this is a booming backdrop. we had a sudden collapse in the economy last spring. nominal gdp has been growing at an 18.5% annualized rate. all nominal magnitudes should be moving up pretty rapidly. wages are a part of that. i think these wage increases will stick because the labor market is going to be tightening month after month. you have record job openings. a lot of these leading

indicators like first time jobless claims collapsing. very bullish for a tightening labor market and suggesting the fed is probably behind the curve. tom: the question you and i have gone back and forth on is does the geometry we learned still work? if we go to others studying the isl function from years ago, does that traditional geometry work now or do you anticipate we will get back to what is in michael spence's tax books? michael: i think the basic models can help us think about shocks. we wrote about that last year. we started with this milton friedman idea that monetary policy operates with flags -- with lags, and then you first see in easing showing up now put in that inflation follows because it is stickier, i think

we already see that playing out. that would suggest more permanent to some of what we are seeing rather than this very temporary base effect type nature, which is what the official company line is right now. tom: what is so important is that martha's vineyard there is only one metric for summer pricing. that is the price of propane for the grill. you have no idea what it costs on the island to get propane. for those of you on radio, in action photograph of michael darda, this grill went to the moon. [laughter] lisa: that is not what i'm focusing on. socks and flip-flops, is that a thing? michael: how did you get that photo? [laughter] romaine: coming from inside the house. tom: thank you so much, michael darda holding court on martha's

vineyard. i have never worn socks and flip-flops. lisa: the point is you put it through the toes. romaine: do you own a pair of flip-flops? tom: no, but i'm in the acquisition mode. like everything else in america, the ones i looked at are sold out. lisa: we will follow through with the heated flip-flop debate coming up on the open. kate moore really wants to weigh in. i am sure she is eager. tom: with kate moore, you have to extend the obligatory talk moment. [laughter] lisa: we will have lots of flip-flop talk. and all serious we will drive the conversation forward with respect to whether the fed meeting is important. 's later jones on -- cnbc

talking about the market has become crazy -- that is not exactly what he said -- and he thinks -- tom: kate moore on the many people left behind in the massive bull market. stay with us on radio and television. this is bloomberg. ritika: with the first word news, i'm ritika gupta. the u.s. is approaching 600,000 deaths from covid, even as new fatalities and hospitalizations continue to plummet nationwide. the vaccination drive slowed significantly by the country is largely reopening. daily deaths have fallen in february 2 an average of 300 over last week. president biden tried to reassure u.s. allies by emphasizing washington's commitment to nato. at a nato summit in brussels the president set a strong alliance is essential for america as we

turn the page on a period when donald trump questions its value. president biden said he views nato's mutual defense guarantee as a sacred obligation. vladimir putin is sharply dismissing allegations his country is carrying out cyberattacks against united states. in an interview, putin said it is becoming farcical. when asked about the poisoning of alexei navalny, putin said " russia is not in the habit of assassinations." putin is due to meet president biden in geneva on wednesday. the father-son due to accused of helping carlos ghosn flee trial pleaded guilty in a tokyo court. michael and peter taylor were accused of helping carlos ghosn flee japan in 2018 when he was facing charges of financial misconduct. the former executive smuggled himself in a case for audio equipment and boarded a private

jet, eventually making his way to beirut. global news 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. i am ritika gupta. this is bloomberg. ♪

tom: bloomberg surveillance. romaine bostick and tom keene.

lisa abramowicz getting ready for jon's property at 9:00. the fix at 15 point -- the vix at 15.94. for radio and tv, i can report benjamin netanyahu greeting other members of the new coalition, a historic moment for israel. much more on that through the day. right now, we've been looking at the mayor's race in new york. for those of you worldwide, there are three republicans on the island of manhattan. scott stringer knows all of those republicans, but this is the democratic primary and it has been contentious. scott stringer, thank you for joining us. his leadership in manhattan politics and of course his public service as comptroller as well. scott, i want to get to the obligatory question out of the way. you've been accused of sexual harassment. it has turned your candidates

the upside down. what do you do now to move forward? should you be dropping out and giving a powerful endorsement to a progressive, or do you move on to the primary? scott: these allegations, as far back as 30 years ago. it is unfortunate. it has had a big impact on the campaign, no question. this is not an easy venture when you run for mayor of new york city. people will come at you. i have full faith and the voters of the city that no my 30 year record. they know the kind of person i am. 300 women progressive signed a letter in support of my candidacy. it is a challenge. if people follow the facts they find i am the same person they've always knew me to be. i am in the race. why my supporters can write me first, they have an opportunity underwrite choice voting to rank

another candidate second. -- under ranked choice voting to rank another candidate second. it may change you i'm thinking about as a second choice. we will see how the next few days play. right now i'm running to win. support has been strong. i want to say i do not think there are three republicans in manhattan, i think there are two. tom: ken prewitt was the third one until he passed away. scott stringer, look at the moment. i distilled down this campaign. for those of you nationwide, it is about democracy in new york city even if it is one party. scott stringer has devolved down to public safety and the police. i want us date your approach -- i want you to state your approach to this divisive issue and particularly the mip -- the nypd. scott: i am a kid who grew up in

the city in the 1970's when there were 2000 murders a year. my mom used to tell my brother and i when you get on the e*trade sit in the conductor car. i have lived my life through that lens. we have come a long way in terms of safety. the next mayor has to make sure the police are finding the people doing the shootings and tackling the violence in the street. we also have to think about a police force that is less about over policing black and brown communities, more investment in kids to keep them away from the criminal justice system. we are seeing around the country that when you respond to mental health professionals to mental health challenges on the street the results are better. the next mayor will have to keep the street should safe -- help keep the streets safe and ensure we have a police system that is fair and just. i think i'm qualified to do both and i'm looking forward to that challenge. romaine: certainly a divisive issue.

probably more divisive and more disparity amongst the policy positions is their position on education, specifically how you make investments in our public school systems, in our charter school systems, but more importantly in making sure a lot of the kids are getting a fair education. scott: that is going to be one of the number one issues facing the city. i'm a public school parent. i have a nine-year-old and eight-year-old in public school. i am a remote learning teacher. they struggled. our wonderful children got hit hard. the last administration did not prepare for a pandemic, and i will worry they have not prepared post-pandemic. i believe we need a mayor who will direct the issues facing kids, mental health challenges mama to bring, direct aid to the kids. my proposal is to put does give teachers in every classroom

because that is what the charter schools do. it is time to give public school students the opportunities to get a first-rate education. supported by teachers and principals and professors. i am the education candidate for mayor. romaine: where to get the resources to do that, the monetary resources? it dovetails with tom's question about the approach the nypd. there are people who want to see resources taken out of that column and put into the education column. how do you balance those interests? scott: i know where the finances of the city, i know where the money has been wasted. there is no proposal i've put forth i cannot pay for. we can put does give teachers in every classroom. $300 million a year. we can equalize afterschool programs so all kids, that is $200 million. we can begin to think about all these programs. budgets are about priorities.

if you do not waste money, we can create real programs that can realize systemic change. i agree with you. you have to know where the money is. no candidate running for mayor has a better understanding because -- tom: your heritage of this island of manhattan goes back to abraham beam, your support of mario cuomo long ago and far away, and particularly your family affiliation to the wonderful -- whether you agreed or disagreed with her, everybody rut -- everybody loved and admired bella for her energy. what would she say about the mess you are in right now? scott: keep fighting. you do not begrudge challenges to be mayor.

i beat eliot spitzer when everyone said i cannot. i have never been in a race where i was ahead or i did not have turbulence. i am a city kid. i get knocked down, i get up. that is what bella did in her career that is what some people did before me did. if they were alive today, they would be like keep your that up, keep moving. tom: thank you so much for joining us. i cannot say enough about the good joy of seeing these different mayoral candidates join us worldwide and across this nation on bloomberg surveillance. it will be fascinating. it is a ranked order system, a different way of electing, different vote for new york city. romaine: totally new for new york. a lot of us still trying to figure out how to do it. tom: i was going to do a write

in for jon ferro. romaine: i do not think he wants the job. tom: my goal is to get beneath 59th street. if i get lower than 59th street maybe i can vote. stay with us on bloomberg radio and television. this is bloomberg. good morning. ♪

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lisa: range bound markets as we camped onto the fed. i am lisa abramowicz in for jonathan ferro.

the countdown to the open starts right now. >> everything you need to get set for the start of u.s. trading. this is "bloomberg: the open" with jonathan ferro. ♪ we begin with the bit -- lisa: we begin with the big issue. markets awaiting chair powell. >> the fed. >> talking about tapering. >> a lot of the fed speakers have been dropping breadcrumbs. >> finally markets are trusting the fed. >> the bond markets are telling us inflation is transitory. >> we are seeing a surge in demand and a shortage of supply. >> the airfares, the used car prices. >> the biggest risk is if we see wage pressures drop sustainably. >>