>> it is going to be easy. you will see market disruptions. it could go hotter and longer than the fed anticipates. >> i think the fed is committed to the mandate, and the mandate will look somewhat different now. >> this is "bloomberg surveillance" with tom keene, jonathan ferro, and lisa abramowicz. tom: good morning, everyone. a post fed simulcast on radio come on television. it was not a snooze fest. powell moves the markets big time, with the fed finally moving towards -- i don't know what they are moving towards. jonathan ferro is off. romaine bostick in. what an interesting moment yesterday. i think all three of us came into this fed meeting like,

yeah, yeah. boom. lisa: they surprised. one thing i am wondering we get more color on is what disagreement there is in the federal reserve. you did have members increase their expectations for a fed rate hike as soon as 2023, and then fed chair jay powell had a very different tone. how much does this represent vision on the federal reserve? tom: down we went, and powell brought us back from the market. and later with a great note, emphasizing that new volatility and the resiliency of the market . what is the resiliency of the market? scarlet: i think you saw that -- romaine: i think you saw that bid come back into the session. the general idea is that the fed is going to start to remove some accommodation, but it is going to be a while before it starts to actually remove it. that seems to be the message the markets took, but that is still going to lead to some repositioning. we've talked with a lot of folks here that say it is going to lead to volatility. tom: it is the pendulum of

resiliency. [laughter] that is where we are. people are going to adapt. lisa: and the fact that this is an international market. tom: like norway moments ago. lisa: exactly. yields can go higher in the u.s., but at a certain point, people from norway, people from europe are going to come in and buy. tom: the real yield goes from -0.90% to 0.77%. is it just an assumption of a real yield less negative? lisa: yes, less negative. however, the scale and speed at which it reverts back to something that feels more normal is hard to know because frankly, the fed has moved their dots before and not acted on it. tom: romaine bostick on the currency watch as well. we've got a stronger dollar. deutsche bank makes real clear they skew to a stronger dollar, and a new range.

we are looking at new numbers in fx. romaine: this is a big deal. obviously the dxy and the bbdxy up. tom: what was that, the bb dixie? romaine: you heard me. you talk about the divergence between central banks. this is going to be a big theme within the fed, if they are more out of sync with what the ecb and other central bank are doing. dollar strength, bbdxy. tom: what was so important was the separation of mexican peso. we really didn't have time to bring it up in the fed discussion, but wow, did the mexican peso move weaker. right now we struggle, we struggle. moynihan is stopping by to give me a christmas toast. lisa: he doesn't do that anymore because he doesn't want the deposits.

8:00 a.m., we will get a sense of whether they are revising that view. cap sloan demand they see picking up. that is my main and. -- my main question. how quickly could they revive that after the incredible stimulus? does it give more optimism, or does a flatter curve give more pessimism? one of the most interesting u.s. initial jobless reports in a long time. a number of states have stopped with the enhanced unemployment benefits. how much does this push people back into the labor market? do we start to see the ramifications from that, and will that be a positive in terms of bringing more people into the labor force, or will it prove not to be the root of the cause for the gap in the number of people coming back to the labor market? at 10:00 a.m., janet yellen testifying, day two, this went

to the house committee to talk about the biden budget. we heard yesterday about capital gains taxes, about how there's a plan to implement them perhaps later this year, but have them retroactive to april. tom: retroactive never works out. that is my experience on that. i'm in the triple leveraged all-cash fund, so i guess i don't have to worry about capital gains. [laughter] we've got some great conversations on radio ntd -- radio and tv this morning. jon golub writes notes that are massively sector dependent and data dependent, and we are thrilled he joins us this morning. i like what you say about high sales growth companies. it is a struggle, a yin-yang kind of thing. tell us about the progress of high sale growth companies. jonathan: what we see is the market has been a value driven market and growth has lagged,

but if you look at growth on steroids, these are companies with higher sales growth, they are doing quite poorly and remain expensive. we think they are going to go into lag in the current environment. even with the fed saying what they said yesterday, we think the value is going to be strong. tom: forget about having the fancy book ace behind you. golub has henry kissinger's ministerial "world order" behind him. lisa: what is the world order when it comes to a potential hawkish fed? does it kill off some of the transformation we have seen in equity markets like increase in meme trading, like the increase

in spac issuance? jonathan: we know there's inflation everywhere. we had a 5% inflation print on cpi, a 6% inflation print on ppi , and the fed was acknowledging it. they said we may have to raise rates at the end of 2023, in an economy that is on fire. if they didn't acknowledge what we are all seeing, i think they would have lost credibility. so they took a little bit of our candy away. we were incrementally unhappy, 1% off of all-time highs. but i don't think we are really changing this. this is still zero money, and i think some of the speculative trades are going to continue to work because it is to weigh very commented of -- a very accommodative environment -- it is still a very accommodative environment. romaine: there was argument

being made last year and into this year that a lot of the highest valuations were actually assigned to some of the highest growth companies, at least on a revenue basis. is that still the base case going forward? jonathan: it is, and that was the point of that note on was mentioning, that the market is expensive, but it is not the average companies out of whack. it is really the stuff at the very top from a valuation perspective, and a lot of these things are very speculative in nature. those stocks we think are going to be vulnerable, which is probably a good thing for investors who do the fundamental work and focus on the underlying earnings and cash flows and all of that boring stuff. tom: jon from coventry emails in and says, will you ask him what spx is going to do? what is your target out one year? jonathan: we have the highest target according to the bloomberg survey at 4600, a little bit less than 10%.

that is pretty bullish. we think earnings are going to be about 200, which is a big number, but countries -- but companies are beating really strongly. tom: this is great. don pop, send in more questions. [laughter] -- jon, send in more questions. [laughter] lisa: are we bringing the returns of the future to the present, or is this something sustainable was 10% returns for a number of years out for the s&p? jonathan: i think that was one of the challenges with fed report, that you are seeing more of a dispersion of what the fed governors were same because there is so many unknowns on this reopening. the real question is when do we get to normal, because then you would expect your typical 8% return. i don't think we are going to get to normal from an equity perspective until the early to mid mark of 2023, and that is when fed is probably ready to move. at that time, gdp is already

growing at 2%, back in line with normalized rates. between now and then, i think stocks continue to be on fire and value continues to win. tom: you've been killing it. look at 12 months trailing market returns to know that john golub of credit suisse has nailed it with a bold call out to 4600 fps. i will train -- 4600 for spx. i will triangulate it out and find out what it means for dow. the basket child of g-7 europe is italy, and whatever you say, draghi has resurrected it. this is extraordinary. i don't even know what a 5% italy means for draghi and what it means compared to 8%, 9%, 10% u.s.. that is a stunning statistic. lisa: what we are talking about here is that italy is set to see growth well above 5% this year.

what i find interesting is that this comes in tandem with banco santander in spain saying that the growth is probably about 8% or 9%, well above the back of spain's 6.2% estimate. surprises to the upside. tom: i've got an italian stock at market -- italian stock market up 39%. romaine: there is sort of a rising tide around europe right now. a lot of that you have to credit to the ecb, and i guess circling back, credit that to draghi as some of the measures he put in place before he left. lisa: how much of this is a mystery? this is unprecedented. we couldn't understand the depth of the downturn and we don't understand the rapid speed of the recovery. tom: i am going to say you are both right. this is a discussion we are not going to do in 15 seconds, but there is a mystery to this. it's a lot of courage to move policy forward, and maybe it will keep us employed. i think we will get to the

fourth. lisa: is this transitory chummy chummy? tom: no, we are making substantial further progress. [laughter] lisa: in our friendship. tom: it will all go away when ferro gets back. this is bloomberg. good morning. "bloomberg surveillance ♪ -- good morning. ♪ ritika: for months, fed officials have said price increases are temporary. now they don't seem so sur e. policymakers signaled that they will make two increases to rates in 2023. chad jerome powell says there's a risk that inflation will be higher than central banks think. prospects for a bipartisan deal on u.s. infrastructure are improving. 20 senators including 11 republicans have signed on for a framework for a package, the biggest in decades, although a lot less than what president biden wants.

it also includes a plan to index the gasoline tax to inflation, which the white house opposes. both joe biden and vladimir putin are claiming victory in the geneva summit. putin got judy missy on the international stage, and the u.s. president argued that he confronted putting over cyberattacks, russia's treatment of democracy activists, and -- putin got on the international stage, and the u.s. president argued that he confronted putin over cyberattacks, russia's treatment of democracy activists, and more. volkswagen is gearing up to make and sell a lot more electric vehicles in north america after the biden administration unveiled a plan to speed up the move toward electric cars. vw's brand of element chief says the carmaker will realign manufacturing -- brand development chief says the

carmaker will realign manufacturing. 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 made it clear to president putin i will continue

to raise issues of fundamental human rights because that's what we are. that's who we are. we hold these truths so evident -- truth self-evident. we haven't always lived up to it completely, but we have always widened the arc of commitment and included more people. tom: an extraordinary press conference yesterday. for all of you on radio and tv, the moment yesterday was with david singer of "the new york times" asking a blistering question on a blistering hot day in geneva, and the president of the united states said, "with your permission, i'd like to take off my coat." wendy benjaminson joins us from bloomberg in washington. here's the president literally out of the past so comfortable,

he just decided i am go to take off my coat in the middle of a david singer question. this is a throwback to another era, isn't it? wendy: i guess it is a throwback to another era. george bush is also famous for dripping during a news conference. you know, president biden is little more comfortable around the press perhaps than his predecessor. tom: i think we underplayed yesterday the young joe biden's efforts on russia and arms control. did we sell enough in the media is familiarity in dealing with a soviet union and with russia in the past? wendy: i don't know whether we sold it enough, but yes, president biden has a very long history of dealing with russia and the soviet union in the senate. he was on foreign relations. he's very familiar with these nuclear treaties, and he and putin could probably talk in some detail without a lot of

help from aides on the resumption of the nuclear agreement that we saw yesterday. lisa: as president biden returns to the white house to have a coda for his european tour, was it successful? wendy: i think it probably came off as quite successful. he had this good talk with vladimir putin, where he can claim that he was very tough to him and told him to stop tiber attacks -- stop cyberattacks and all of that. at the g-7 he was welcomed very warmly after years of tension between europe and president trump. so i think he comes back with a success and comes back to some possibly good news on the infrastructure bill, so i think he had a good week. lisa: the good news on the

infrastructure bill, what does it mean in terms of timing and scale for this potential bill? wendy: what they've got right now is 11 republican senators, which is key, to sign on to a potential infrastructure deal that is about half the spending, maybe 1/3 of the spending biden originally wanted, but if he can pass this and score points on a bipartisan effort on classic infrastructure, roads, bridges, all of that, then they can move to reconciliation and pass a democrats only bill on all of his other priorities, and that could make the left wing of the democratic already happy because they are not going to be happy with this bill. the one hold up is indexing the gas tax to inflation, which biden considers regressive. romaine: what is the next step here? what becomes the agenda as we get deeper into the year? wendy: i think it is that second

bill. if they can pass this classic infrastructure bill, that is a big win for both sides because both sides can say we got you what we wanted, and the republicans can say we did it without all of these "socialist add-ons," and the democrats can say they can prove they can work with the other side and get something done. so then the next step is to get the rest of biden's economic -- economic plan with only democratic votes. they've got to get that done before the midterm. romaine: it seems like the rest of that agenda, to use a derisive term, would be considered to be part of that "socialist agenda" by some of his foes. i am curious as to whether he has enough lyrical capital or will have enough political capital left to actually get that stuff through. wendy: the key is to keep the left happy. romaine: good luck. wendy: if he got the joe manchins, the kyrsten sinemas on

board for the classic infrastructure bill, he's got to keep them and placate the left wing of the party, who could decide to not go along with some of these things, although these are their priorities, the things in the cares economy. help for working families, adding to childcare, things like that. those are their priorities. so if he can make everybody happy before the midterm voting starts, he's in a really good place. but that's a pretty hard task. tom: thank you so much, wendy benjaminson with us from bloomberg here. we showed the footage before of the landing at andrews in the dark of night. we are scrupulous about corrections. al emails in. thank you so much for watching the show. he may be listening on radio. he says he was looking at the press conference of reagan and

biden. al corrects me and says we need to look at all of the press conferences of the president, and he centers on president reagan, president biden, and president josiah bartlett as well. [laughter] lisa: indeed. tom: thank you for moving the dialogue forward here. lisa: it is telling that we are comparing joe biden to a character in "west wing." the idea that we are looking at a very different drama than under president trump. we are looking at a more traditional drama fitting into the school of presidents of your, and that was -- of yore, and that was the take away. tom: i think al will say we are getting a political opinion from abramowitz on the drama of the trump years. i thing we got to be careful. romaine: i am going to be careful here and give you your dow update. 33,000 on dow. lisa: no, uh-uh.

i am not going to say i was giving a political opinion. joe biden is more traditional, and that was the take away from the tour overseas. that was what president trump said he wanted to do, was to root out deep state. romaine: i'm raising my hand here. lisa: what? romaine: it's a great point, to lisa's point here. lisa: thank you. romaine: that is reflected out of some of the commentary from european leaders even before he got to the putin meeting. this idea that it is a little bit more predictable. it is cut from the cloth of traditional diplomacy. i think a lot of world leaders wanted to see that. they wanted a little bit of relief after four years of a different direction. tom: lisa, are you done, or do you want to have a final thought here? lisa: i'm never done, tom, but i will let you go. [laughter] carry-on. tom: thank you, lisa. i want to get back to the markets. my question to romaine was

did we break down any support yesterday in the equity market. brian moynihan at 8:00 a.m. with david westin. good morning, on radio and television. ♪

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♪ tom: "bloomberg surveillance" on radio and television claims one hour away -- and television. claims one hour away. brian moynihan f bank of america in conversation with our david westin near the top of the hour. trading weakness, trading tepidness. lisa, help me here. trading saw guinness. lisa: a -- trading sogginess. lisa: a return to normal. tom: before we were rudely interrupted by the improper lisa abramowicz, i was asking you

about technical support in the equity markets. we did not breach technical support yesterday, did we? romaine: not on the equity markets. we stayed above all of the key moving averages. keep in mind the support level on the s&p 500 is right around 4200. we had that yesterday, bounced back off it. that main resistance level, we also hit that around 40 to 50, so keep an eye on those 2 -- around 4250. so keep an eye on those. as far as individual movers, we will start with curevac, down 46% in the premarket. that company's covid treatment only 47% efficacy. that is not what the street want to do here. those shares really under pressure here. also keep an eye on with citigroup. shares rebounding, up about 0.5%, but they dropped 3% yesterday, and they are actually down more than 10% over the past 10 days. they were on a ten-day losing streak, so we will see if these

premarket gains hold. if they don't, they are headed for what could be their longest losing streak since 2018. we talk about the reaction to the fed report, one of the most severe reactions was what we saw in gold. gold spot prices dropped at least 2.5 percent. gold also down as we head into the premarket of equity sessions. that is according to all of the golden mining stocks here. let's get you a couple of other movers. we did get some earnings out of lennar, the homebuilder. purchase contracts up more than 30%. verse margins up 20%. i dobie going to report -- adobe going to report earnings after the bell. those shares down in the premarket. keep an eye on sunrun, the solar power maker, up for a second day here. on 6%, some relatively bullish sell side commentary. tom: you somehow get bank of america into the data check. bank of america, 41.7%, up 0.75%

this morning. see how i did that with fractions, romaine? romaine: a real pro. lisa: are you doing pr for the bank? tom: well said, lisa. right now in foreign exchange, mark mccormack joins us from td securities. this is important because sometimes you need to be courageous, and young mccormick was way courageous. everyone else was talking weak dollar, and he was sort of, maybe but maybe not. he joins us now from td securities this morning. everybody is swinging strong dollar. do you reaffirm strong dollar? mark: technically you have to think about consolidation stability, so through the summer months, we are looking for a more stable dollar. i think what we are actually seeing, this pattern was very similar to what we saw at the start of the first quarter, which was positioning had

validated. we are starting to see some stalling in the global reflation trade, and now the fed has turned a bit more hawkish. basically, all signs point towards what could be another 2% move higher in the dollar for the summer months, re-creating the 3.5% move we saw in the summer. tom: you see how he does that? he tries to get a lot of fancy calculus talk in here. talk about the gamma of paper talk. he's in the ash of taper -- of taper talk. he's in the corner for that. what i notice is different currency pairs reacting very differently. if there is an opportunity in individual pairs given a new fed, which is the pair that i can profit from? mark: i think it depends on the context of the baskets. the thing that is driving currencies, carry, relative

growth, valuations, those are critical in thinking about it. the ecb is now the most dovish central bank in the g10, probably the most dovish central bank in the world. there's an element now that the euro can crack through $1.20. on the eem side, we have it bit of a different story. there's been frontloading of e.m. "central tightening through march, april, may which has been a reason why the dollar weakened against some of those major em currencies. brazil is one that can probably do relatively well. they are basically going to tighten more. i would say your biggest concerns here are probably something like hungary, eastern europe, poland, south africa, and again, turkey is not related entirely to the u.s. story, but turkey has got its own vulnerabilities. there's an element here that central banks and em are tightening and have relatively

good growth, but again, it is mostly a g10 low yielding story. tom: did you see how i asked him for one pair, and he gave me 14 pairs? [laughter] that's how you do it. lisa: and that is how you do it with mrs. keene when she asked can i have one pair of shoes, and you bring home 14. just saying. there's a question on what the pain trade is going forward. we have seen the pain trade in the dollar over and over again. i imagine people piling into long dollar and getting their faces were off, in wall street parlance, when the fed doesn't follow through on some of the more hawkish projections. what is your view? are we just setting up for another pain trade? mark: a lot of this is is this a positioning, or is this a game changer for the fed. i think it is in the positioning camp, but everything aligns together. you would expect more rate volatility. you expect lower breakevens, higher real rates, nominal rates

to drive the move which is what we saw yesterday. there's an element here that it has to be slightly risk off. we are injecting more two-way risk, a stronger dollar, and behind the scenes we will probably see more disruption in the equity story. there's a element here because the markets have been focused on global reflation, u.s. exceptionalism, when we keep going back and forth on the pendulum, i think what we get is a little more exceptionalism. the fed catching up to other people, and less global reflation because the high-frequency data we are tracking on global mobility had actually started to solve coming into the summer. so you might actually see data surprises outside the u.s. we getting, which is another sign that might elevate the dollar. but this is not the change for a bullish stance on the dollar, but it is a pause in what we saw over the last couple of months, which is exactly the pattern for what we saw q1 of this year. lisa: i'm channeling tom keene.

i've been working with him long enough. he says pendulum of exceptionalism, and that is where we are headed. there's a question of whether people will view strengthening dollar as disruption and the rest of the world. exactly what you are saying, as a really bearish sign on a recovery that will eventually start to stall out. mark: it absolutely needs to be a link where the sequence is the dollar rising because real rates are rising. that is really the plumbing of the global financial system on a lot of frameworks we look at. real rates should be higher, breakevens should be lower. with that you would get more rate volatility, higher vix, and that in itself is disrupted because what is anchored is really the suppressed level of real interest rates. even if we see a 15, 20 basis point moving real rates, which is kind of what we saw earlier in the year, that itself is disruptive for conditions, and for some of the allocations where everyone is pro reflation,

very long equities come along credit, short the dollar come along -- short the dollar come along -- short the dollar, long carry. romaine: what i extrapolate from what you just said is that there's a lot of vulnerability, or there has to be some vulnerability here with a lot of the em currencies, particularly in asia. once we actually get a little more clarity, we get to jackson hole, we get maybe more clarity around that taper, should we start preparing ourselves for further we? -- further weakness? mark: that is when things would start to look a little more normal. we know the fed is giving us a timeline which is now highly data-dependent. so as we get into jackson hole and what we are looking for as kind of a taper announcement

coming through december. with that, what will matter is when do we get the first rate hikes. our expectations aren't really for until december 2023. if we have a window of taper happens here, and we don't get a rate hike for a long time, the markets can move back into reflation so that the dollar can we get again. you can see and em currencies on the carry side because central banks outside the u.s. are much more hawkish. everyone else is already way more hawkish than the fed. once we get through this taper process window, we kind of shift back to the reflation pendulum. romaine: mark -- tom: mark mccormick, thank you so much. that was a real window into the pro dynamics foreign-exchange and what they express worldwide. we are making calculus jokes at the beginning, but to pick it up from chairman powell, that was substantial further gamma is really what mccormick is looking for. lisa: in fairness to calculus,

and i will say my father is a mathematician. tom: that explains so much. lisa: i am going to be the defender of calculus and the gamma of substantial further progress. you had this idea of the potentially acting in a hawkish manner, and then people have to think not about the recovery, but about it being curtailed by the fed's actions. these are derivative actions on top of one another, and people are trying to gain this out. then there is the reaction function to the fed, disruption in markets that could bring us right back where we are, which is dovishness. tom: we are jargon free as a second derivative. [laughter] romaine, is gamma good for the equity market, or does the equity market like quiet? romaine: that is a tough question. lisa: what kind of question is that? [laughter] romaine: all i know is lisa right now is defending calculus. tom is defending gamma. i am not sure where this goes. lisa: what do you defend, meme stock? romaine: naps, how about that?

tom: what you don't understand is that tottenham is talking about signing gamma. lisa: we've got a lot to say about that one. tom: i just miss ferro, what can i say? [laughter] brian moynihan in 20 minutes. ♪ ritika: with the first word news, i'm ritika gupta. officials at the fed signal they may raise interest rates from zero faster than they had forecast. policy makers expect there will be to rate hikes by the end of 2023. fed chair jerome powell acknowledged there's a lot of uncertainty. powell said there is a risk that inflation will be higher than the central bank thinks. congress has given final approval to a new federal holiday celebrating the end of slavery. juneteenth will be the 12th federal holiday. it marks a day in 1865 when union soldiers brought word of

freedom to people in texas. president biden will sign the bill into law today. it is a milestone for china's space program. a chinese spaceship carrying three astronauts docked at china's new space station today. the crew will live aboard the space station for three months. they will carry out experiments and conduct maintenance. police and hong kong have arrested be three top editors at the pro-democracy apple daily newspaper. two of the paper's executives were also arrested, accused of breaching the national security law. the owner of the paper, jimmy lai, is already imprisoned for authorizing protest. -- says its vaccine -- curevac says its vaccine was only 43% effective. it's thursday feature into

affection. 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. ♪

>> i think the risk is that they can slow because they said they are not even going to start to

think about monetary policy until there's three conditions. that is a pretty late in the game to be starting to raise short-term interest rates. tom: william dudley writing for bloomberg opinion, one of the true founders of modern goldman sachs economics. a joy to have jan hatzius join us in studio yesterday. really the hallmark of had cs -- of hatzius' conversation yesterday was a gdp under 3% out somewhere. david wilson is our bloomberg stocks editor. this is our linkage at the hip, bonds and equities. what is normal? dave: normal over the last 20 years is that they tended to move in opposite directions. we are talking price. tom: for radio, we've got to get the hands out.

stop rice up, bond price -- -- stock price up, bond price -- lisa: up, and therefore yields down. if you own both for the sake of diversification, you've got what you wanted. lately, and has been a very different story. the chart focuses on a 90 day correlation between s&p 500 futures and 10 year treasury futures. in fact, that has turned positive. you've got readings of about 0.4 at this point, the highest since november 1999. if you go back to the 1980's and 1990's, you can see that stocks and bonds did tend to move together then. it is just in the last 20 years, it has been the opposite. now we are kind of reverting back to the past. tom: lisa has been on fire this morning.

let's have her. [laughter] lisa: trying to set me up for failure. i am looking at this and wondering what this says about the 60-40 portfolio. to me, this chart speaks to the pain underlying a shift here as people don't look at bonds as a hedge against their stocks anymore. dave: and what happens to the 60-40 portfolio? it is great if they are moving together and moving up, but take a day like yesterday, take the past week. they were moving down together. it is like the losses get compounded for investors in both types of assets. over the past week, you have seen stocks and bonds move down just as they did yesterday. in fact, the correlation between stocks and treasuries in terms of price, when you look at other asset classes, is relatively high, or at least has been late the -- has been lately.

romaine: we have seen these go back and forth. i understand gives you a little bit of a chill here. but we talk about how people are allocating and people now embrace corporate bonds, some people having graced alternative assets. it is the real exposure historically the same today as it was historically? dave: the exposure may be a bit different, but when you think about relationships, you tend to see people talk a lot about interest rates in the context of technology companies, simply because you are talking about the type of assets that maybe especially hurt as interest rates go up. so there is something that carries through even though we have changes in the asset mix is these days. tom: i want to turn right now to who is brian moynihan. he hasn't had enough press on this. it is real simple. long the open far away, there

was fleet bank, bank of boston, this merger, that's merger, and all of a sudden they were merged into the bank of america near 2004 and on 2009 as well. was extraordinary here is the cards that brian moynihan was dealt. there has never been enough discussion of what he was given when he took over leadership of the bank. romaine: a lot of people sort of forget just a short of shape bank of america was in not only in terms of the finances, but the reputation hereto. it was quite a wide turnaround, and it is funny you bring that up because people compare it now to the challenges with charlie scharf and wells fargo as to what brian moynihan had to take on. the scene is really all over bank of america now. brandon one hand -- brian moynihan is going to be on a bit later. tom: make it nine or 10

meetings. there was ken lewis ticking up the pieces in asia. lisa abramowicz, you look at the view forward for banking, and you are dead on. any of these banks can just put up smoke signals, do this, do that, but it is a traditional banking that right now is flat on its back. lisa: which is the reason why people are so concerned about a decline in revenues. the idea if you don't have that pillar, will the lending folios start to pick up to overcompensate? there was a story in "the journal" that thanks to companies, no more deposits, please. basically charging companies for deposits, saying we don't let your money because we've got too much cash. tom: i actually look at the overnight repo chart, the ira jersey chart, and it is back up again 162. we say good morning on radio.

these stay with us in boston which 106.1 fm how are the banks doing, remain for -- of doing, romaine? romaine: yesterday we saw a pretty big rally in all of the names with the exception of citigroup and i believe huntington, but the big money center banks, whether bank of america, traditional wall street banks, some regional banks, they benefit from an environment where your start to get a little more capitulation when the economy is still solid. lisa, i know you haven't seen it , stiff anya spit -- stiff anya of bloomberg denies retail

launch. lisa: it really speaks to this desire to try to acquire fintech , and particularly to do that was in the consumer banking sector, especially if people transform into that kind of that form post-pandemic. tom: tom: so what do you do in france? lisa: exactly. are you going to acquire some sort of fintech operation? tom: there we are. it is very interesting. thank you for that article on jp morgan and the united kingdom retail launch. -- retail launch. actually, nutmeg in a rum punch. lisa: i was wondering which alcoholic beverage you were going to choose. [laughter] it definitely is a good ingredient, the. tom: it is in jamaica and down the shore. you go around the bay and there is nutmeg floating. tom: we know what -- romaine: we know what tom is doing at around 10:00 a.m.. lisa: can i join you? [laughter] tom: futures -11, dow futures

negative seven. coming up, mr. moynihan with mr. weston. good morning. ♪

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>> there's just so many unknowns on how this reopening is going to do. the real and is when do we get to normal. >> it is an economy starting to move from recovery into an expansion phase. >> could we have several years of much higher inflation? yes. >> i think the fed is committed to the mandate, and the mandate looks somewhat different now. >> i think the fed did the minimum. >> this is "bloomberg surveillance" with tom keene, jonathan ferro, and lisa abramowicz. lisa: embracing claims