overheating. >> the thing to pay attention to is really the chairman. >> powell is optimistic we will get a robust labor market recovery, that inflation will be contained. >> he has been saying essentially wait, look, and we will respond if we need to but there are not inflation problems. >> this is "bloomberg surveillance" with tom keene, jonathan ferro, and lisa abramowicz. jon: record highs into the weekend. good morning, good morning. this is "bloomberg surveillance" alongside lisa abramowicz i'm jonathan ferro. tom keene is out of the building. equity futures of five on the s&p, 42.6 one. alisa, we have a deal down in d.c.. lisa: this came as a surprise, not only did we get a deal but larger than expected. 570 $9 billion for infrastructure, traditional brick-and-mortar. the question is, can they get it through and get 10 republican senators on board? jon: in the market -- and the

bond market we have tumbleweeds. yields did nothing off of the back of this. lisa: that's amusing to. a lot of people have been saying this has been priced in but this is significant, the fact they are getting something done. it is feasible and larger than what some people expected. democrats are still talking about additional spending yet nothing. what is this? jon: what you make of that, taylor? taylor: some interesting conversations we had yesterday, it's the market not pricing it in from the equity markets. perhaps they say this more money is in bonds, something more sinister going on, but one of my key questions yesterday are what are the tailwinds of further fiscal stimulus? maybe the pressure that kicks off monetary stimulus? what does it mean fredda -- mean for the headwinds of the market? how do we pay for it? there are no taxes raised in this plan, so the equity market is liking that portion of the bill. jon: will it fall apart? lisa, we have to discuss that because this is just one bill.

the $579 billion in tandem with this will be a democrat only bill. lisa: a lot of people say it looks less likely. if you look at the bond action, it is a flattening in the yield curve ongoing with two year yields climbing higher. perhaps this will juice inflation in the short run. over the long-term, the balance of energy in washington, d.c., at least in the bond market, seems to be toward less fiscal stimulus as the economy recovers. jon: next three hours on bloomberg radio and tv, looking forward to that. [laughter] markets shaping up as follows, we advanced call at five up, more than .1%. here we are, yields, 150. we settle around 149. the fx market, we won 19.41. that right there, just a little stronger euro in the mix this morning. lisa: we saw the dollar strengthened and that was the knee-jerk reaction after the support bill seemed to game support on both sides yesterday. it has been reversed, which i

find interesting. what will shake bonds out of their stupor? will it be the inflation data coming out in 2.5 hours? we will be getting personal income and spending and the key metric here, court pce. -- core pce, this is a measure officials look at most closely. they have a target of 2% and is expected to come in 3.5% year-over-year. transitory, there is plenty of fed speak. watch the income come down, decline, as a result of less fiscal support. on the flipside, watch spending because you will see services spending over take spending on goods. a lot of people are looking for the shift. consumer sentiment coming out from the university of michigan. i am interested to see with the expectation is for longer-term inflation by consumers. this could be predictive and also somewhat self-fulfilling if people inspect -- expect inflation to go up they will respond accordingly and it will

be more likely to go up. the roster of fed speakers continues. none of it matters, according to at least former fed official bill dudley yesterday. not necessarily, i'm absolutely butchering his words, but he said the key people to pay attention to is john williams as well as the fed jay powell and rich clara. jon: so you say don't listen to three of them today? lisa: i will say listen to them. it could be interesting fodder for discussions, but as far as the balance of power on the federal reserve and what they will do, [indiscernible] jon: that is so diplomatic. lisa: i'm trying, it is friday. jon: we have turned you from a colonist -- columnist back into a journalist. lisa: we all know that that is the case, yet the noise that does seem to be picking up has given a little more volatility to bond markets. however, transient. jon: thank you, lisa.

lisa: i try. jon: let's get to the banks. we are shaping up as follows for the banks in america. in the premarket, jp morgan up by 1%, bank of america by about the same. i imagine this was a big thing for you and the close as we got the stress test results, the green light to pay out more? taylor: yeah, finally good news. this was something most analysts were expecting. we will get the numbers may be as soon as monday after the bell. that is really going to be the key focus. a big run appear to date just by some of the underperformance in june. how much of that was expected given the big outperformance? finally at least catching a little break. jon: looking at some of the estimates, six of th biggest u.s. banks could return to shareholders off the back of this. lisa: but you don't necessarily see the boost in share prices. as this builds in, the interview of the day yesterday, yesterday

on your show, talking about don't be a chicken, lean heavily into these. i'm wondering whether that seems to be what people are doing. jon: i'm pretty fascinating because they basically agreed on everything. if you didn't know, they normally disagree on everything. lisa: that's how you summed it up and i was trying to figure out what the difference was in their opinions. they were both saying lean into cyclicals but they were passing it out. jon: you can catch the clash of bank of america and credit suisse on bloomberg.com and on the bloomberg terminal. let's get to donald rissmiller. let's start right here. we went straight to the bond market off of the back of this deal in d.c.. what you think the bond market is smelling? mohamed: we have -- donald: we have been watching this closely and i think the market is not convinced we made enough progress yet. this bipartisan bill is supposed to move in tandem with a reconciliation bill. the other issue is when we look

at infrastructure spending generally, there are good reasons it should be done, it's a long-term investment into the economy, but is it really near-term stimulus? infrastructure spending can be notoriously slow and take many years to get into the economy, and when we think about an economy that already has job openings surging, where will we find the workers to complete this bill? we want to think of it more as a long-term investment into the economy rather than short run stimulus. lisa: you say where will be fine the workers yet a series of charts you put out, which i thought were fabulous, you point affect the u.s. labor force participation rate has declined substantially. where have all of the workers gone? donald: some of this is industry based. if we look at sectors like leisure and hospitality, you can find a big decrease because the cycle, rather than driven by goods and by a financial crisis,

was driven by services and by health crisis -- a health crisis. when we think about infrastructure hitting the economy say a year out, we have to think about the unemployment rate by that point being lower and labor force participation rate by that point being higher. the federal reserve say they expect a robust labor market, and i would agree with that. that is coming soon. when we think about the infrastructure piece, that's will be on top of that perhaps 12 months plus down the road. lisa: let's talk about jobs. we have the jobs figures yesterday they came in a disappointing manner, higher than expected. we have seen mixed data out of the labor market with signs of ongoing friction. do you see signs of that easing in some of the high-frequency data you track? donald: i think that is fair. the jobless claims number week to week is always volatile. you typically want to look at a four week anniversary. even that number has been a bit disappointing as we mentioned. that is worth acknowledging, but

think where we were three to six months ago or 12 months ago if we really want to dry comparison. we have seen some improvement, but there are still some bottlenecks and health concerns and still concerns in the education sector and pieces of the economy have not been put together as well as they did with pools so partially closed. there could be issues with the expanded benefits provided in some spaces. most of that could resolve itself as we get through the summer, so i think the base case for why you would expect to continue -- why you would expect continued improvement. lisa: where are we in the balancing act that is fiscal stimulus bearing the brunt of the recovery versus monetary stimulus? does this allow the monetary stimulus to take a step back? donald: not quite yet or in any significant fashion. the issue we are looking at first will be asset purchases. we have to take a step back and ease less before we can

think about tightening. in the meantime, we have to think about the fiscal drag that will come about as we lapse the big fiscal stimulus. so not doing the same thing we did over the course of the past year in the next year will create fiscal drag. then, we will see where we lined up on the tax code and other things like that as we get into 22. the starting point -- into 2022. the starting point is [indiscernible] so for now, monetary policy i think once to get those variables into their models first. then see where we wind up as we go into 2022. the first step would be a pretty mild step in terms of a taper. then, you would want to talk about nonroad -- about downward. jon: don, great to talk. donald rissmiller, strategic us

-- strategas. strengthening is not tightening. you will hear that on repeat over the next couple months. lisa: they will keep their balance sheet at a very high level. this does not mean they will be tightening monetary policy. yesterday at 4:30 p.m., you know what i do on thursday, i check out the fed's balance sheet. it was $8.1 trillion, a new high , just to give you a sense. bloomberg economic thinks it's going up to nine chilean dollars, which would be 35% of the u.s.. jon: even when the tapering begins, even when the qa stops, you will get the reinvestment. that stock effect will be massive for a long time. lisa: basically bluebird economics thinks it will take more than a decade for the balance sheet to fall below 20% of the u.s. gdp. how does that affect the rest of the market? does it really have that big of an effect? jon: we will see.

lisa abramowicz, taylor riggs, great to have taylor with us the next several hours to replace tom keene who i'm told is having a nice lovely long weekend. [indiscernible] the text i got yesterday, something about a car that talks. 42.60 on the s&p. your bond market is this news, 148 point -- 1.4867. good morning, this is bloomberg. ♪ ritika: with the first word news, i'm ritika gupta. a vice president kamala harris heads to the u.s./mexico border to visit a customs and border protection facility and meet with rights advocates. this comes after criticism from republicans and frustration from democrats having not gone to the border after president biden picture to address the root migration -- root cause of migration from central america

to the u.s.. the nation hit a single day record by administering more than 8 million covid-19 vaccinations. that's pace may still not be fast enough for india to head off a third deadly wave of the virus. officials are questioning whether the faster rate of vaccinations can be sustained despite the increased push. hong kong's security official will take over the number two spot in a cabinet shuffle. it is the latest sign that a crackdown on dissidents to china's long-term plans -- is essential to china's long-term plans. earlier this week, a campaign led by the city's biggest pro-democracy newspaper shut down. 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 am ritika gupta. this is bloomberg. ♪

>> we didn't get everything we

wanted, but we came up with a good compromise that will help the american people. this is about infrastructure. >> we have an infrastructure package that meets the needs of the needs of this country for the first century. >> this sends an important message to the world that america can function, can get things done. today, we are delivering. jon: we've got a lot to talk about. that was senators of ohio, joe manchin of west virginia, and susan collins of maine. good morning. it tk out of the building alongside me is lisa abramowicz and taylor riggs. i'm jonathan ferro. your market is all-time highs, 42.60 on the s&p. up .1% for equity futures. euro stronger, 1.19, up. your bond market is not much to talk about, 1.49 through --

1.4935. the president came into the office promising to find common ground and he is delivering on the promise, that comes from the white house. i guess. lisa: [laughter] jon: then there is this other bill that they do not agree on. lisa: question is, will he be able to jam it through and get it all the time or will he have to forgo bipartisan support or support from his own party. democrats trying to get on board as he pushes this bill. jon: we need some help from d.c., let's bring in emily wilkins. make sense of this for me. can you achieve this bill? can you pass this bill and the democrats will force through another one which everyone disagrees on? emily: potentially. we have heard republicans say, " why would we go ahead and support a bipartisan bill if we know that democrats are just going to go ahead and pass another bill with what they want in it?" republicans have an incentive to

say, "look, we got something done with roads and infrastructure. if democrats are going to do this anyway, republicans want a piece of the pie." they want to go to their constituents and say this new road and bridge, this new broadband we brought you, i help to do that and i supported the bill. there is some incentive for republicans to go along with the bipartisan interceptor bill, even if democrats are then going to move their own package of priorities. lisa: i get it from a republican standpoint more because it seems like they got more what they wanted. it is a smaller headline number. infrastructure is defined more narrowly. how much resentment is building the more progressive wing of the democratic party? how much do they need this reconciliation bill, the add-on, in order to get anywhere near passing a $579 billion agreement? emily: from the progressives i have talked to the last couple weeks, one thing always comes up, they will not support a bipartisan info structure bill unless it is a side -- alongside a larger reconciliation package.

they declared victory yesterday because they saw nancy pelosi come out saying that was the way they were going to move forward. even joe biden said he would not sign the infrastructure bill until he had the reconciliation bill. they think that is a good thing. at the same point, that also is not being taken well by some moderate out mike rounds that say we have -- some moderate democrats that say we have this bipartisan infrastructure bill and we can move on that and pass that and not necessarily wait around to get all the democrats together on another package. because that is not just happen immediately. there's a wide range of opinions in the democratic party, and it will take time to get your joe manchin's and bernie sanders all on the same page. lisa: i was going to say, the key question is what will joe manchin do? what does the reconciliation bill look like? how much wiggle room is there in terms of getting into a side where the joe manchin's can sign off? emily: that's a great question.

senator bernie sanders is putting together what he said is a $6 trillion package that will include things like childcare, expansion of health care, but we have not seen the details yet. we are talking to lawmakers on capitol hill. it is hard to get a sense of exactly whether they like it. progressives would like that number to be higher. moderate democrats are wary of it. i talked to one moderate who called the number aggressive. the same point, there's an underlying sense among democrats that they do need to pass something, that the worst thing they can do going into the 2022 midterm elections is go back to voters empty-handed. so there's that momentum they all have to come to some sort of compromise. taylor: the markets yesterday were relatively pleased there were not tax increases included in the $579 billion. how and when will we discuss how to pay for this?

emily: we have a couple ideas to pay for this, including the idea of bolstering the irs will help more tax money come into the u.s.. republicans and democrats have talked about paying for the plan via public-private partnerships. but look, the market should not be too excited right now because we have the $6 trillion plan coming. that could potentially include some of these tax proposals that president biden has put out there. part of the reason he puts these proposals out there was because he wanted to taper a larger package. the other things democrats really believe that some of these incentives are popular, that the american people feel our current tax structure is favoring the rich and corporations and they want to see more balance there. taylor: just thinking ahead, what comes next? when do we get may be clarity on if this goes through or not? is it weeks or months? emily: i think at this point it will have to be weeks. from the timeline that house

speaker nancy pelosi and chuck schumer set up, we will need to start moving quickly. were talking about this budget reconciliation budget reconciliation, but for that to go through, we need to have first a budget resolution. that will be its own battle. i have seen reporting this morning with two democrats already saying they do not think they will support a budget resolution for a large reconciliation package. all of the votes pelosi has not house, it makes up for democrats say no one anything. if you have one senator say no, it is not going to the senate. that is the big debate before we touch the reconciliation bill. so there's a lot to get done. i think the timeline really puts this, depending on whether or not they stick around for august, you could easily see this going into the fall. jon: emily, good to see you and catch up. emily wilkins, down a for bloomberg government. there's a big difference between saying we have a deal and

the bill we can pass. lisa: we have a bill, and we have another one that needs to pass along side of it, really big. and then assess -- and that is not necessarily enough to the people feeling shafted. i goes to the point where we are not seeing any react the bond market. jon: let's go to their now. 30 year yield, no big moves out the back of it. the front-end has been elevated. it stays there are 27 basis points. is it the size of the bill that drove the disappointment or the prospect none of it passes? lisa: or that when it does pass it will be carried out over a long time with tax hikes that it will not lead to longer term inflation. that is what you are seeing with the flattening yield curve perhaps, maybe all of the above? lisa: this will be the debate -- jon: this will be the debate as we continue to hash this out. taylor: we hit record highs and that could he markets yesterday, on s&p, nasdaq 100. it is the defensive tone of the

market without records from the dow and transports that caught our attention. jon: all-time highs coming into the weekend, 42 .60 on s&p 500 futures, short about three points up. good morning. alongside lisa abramowicz and taylor riggs, i'm jonathan ferro. this is bloomberg. ♪

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jonathan: good morning from new york city. all-time high on the s&p 500 on thursday. advancing about three or four point. about .1%. matt miller early this morning talking about the average estimate for year-end. 4300. the band outside of that pretty white. credit suisse at the top end at 4600. something to pour over into the open and a couple of hours. this is the big story. greenlight, as expected, for the bank stress test. we will find out how much they will pay out. estimates is $140 billion worth of payouts. you will get a hint of that after the close monday, june 28.

jp morgan up by little bit more of 1%. b of a a similar amount. getting to the bond market. treasuries. we have a deal. ok. yields at 149.5. tumbleweeds blowing to the bond market. lisa: you would think if they talked about $6 trillion in spending along the info structure built someone in the bond market we care. they don't. jonathan: what does that tell you? lisa: it is priced in. people don't believe you can get through, or as written it will be inflationary in a long-term way. tom: most people would agree. 149.18 on the 10-year this morning. lisa: pce data in about two

hours time. jeff mortimer joining us now. there is a key question about this transitory issue. is there anything we could see on the physical front that could change people's view about transitory inflation? what is your interpretation of the lack of bond market reaction to the infrastructure plan? jeff: i think you're hitting the nail on the head. bond markets have been fairly tepid for the last couple of months, really signaling perhaps in front of equities they did not see any longer-term inflation. i think this proposed infrastructure bill is small enough or puts payment far enough out in the future and mitigates on the tax hike side. i think markets are taking

that in stride. i don't know if they are discounting it as written, but i think they like the idea that the two sides are working together and have come to a modest conclusion. lisa: in your decades of experience managing money, overseeing markets, have you seen a time when markets are less phased by new information? literally nothing can shake the market consensus which is everything will keep chugging along. what is the analysis timeframe? jeff: i have studied markets going back to 1960, almost day by day. as i look at today's market, bull market cycles come in three phases. we are in the middle phase of this one. innings three through seven with a baseball analogy. historically midcycle bull

markets like we are in today, an adjective is resiliency. they have the ability to digest a lot of news and treat it as a glass half-full. they have an amazing ability to accept bad news and shrug it off. if you give them good news, they can rise substantially. there is a positive biased market. 2004 through 2006, the mid-1990's, and even 2013 through 2015. we are back in that sort of phase where markets will take a lot of news in stride. as you get into a late cycle market, that is where you run into trouble were good news is not absorbed well because valuations are too high and

markets are too narrow. we are not in that situation today. jonathan: we will talk about this more. i get the luxury of just asking questions. you have to take positions. it feels like this cycle has been really condensed. really reduced. the question we have to start asking -- look at the 10-year topping out in march. whether we are seeing a mid to late cycle dynamic take over the bond market already, any sign of that for you? jeff: that is possible. late cycle bond markets. the recipe for ending a bull market in equities is higher inflation and the federal reserve raising interest rates to combat rising inflation. that is the textbook answer. a textbook is through federal reserve taking the punch bowl away, the proverbial punch bowl away.

if inflation remains, we get through this reopening -- demand has reopened more quicker than supply has. have to get through a couple of high inflationary prints. you are looking at the 30-year at the 10-year, the bond market says it's not anything but temporary. if that continues, he gives more weight to the midcycle argument. as we move to the late cycle, you make it higher inflation, higher rates as you move down the path. that could be years from now. full markets tend to give 50% of their return in their first year of life. the first year of this life was 75% returns. if we were to get that over the next few years, another 75% or so return in markets, we will see how that goes. that is what my timeframe is. that could change at any moment

if some issue pops in. i think that is the path of least resistance, this specially if washington behaves and gets on with business without raising taxes. it comes to the middle more than they have in the past. jonathan: we are already seeing credit spreads the tightest since 2007, equities at all-time highs. you do start to think about where we are at the moment. lisa: that is what i was thinking about as you were talking. where are we in this credit cycle given the fact it is condensed? does it concern you the zone with occasion -- zombification of corporate america? pre versus post-pandemic, these are deeply indebted companies that have to grow white a bit into the capital structures. jeff: agreed.

we need to have a stronger economy, as was mentioned for a lot of companies and the government to service debt. the ability to service debt at these rates is quite easy. if rates were to rise, it might put pressure on capital structures of companies. we haven't overweighted high-yield allocation for our clients -- we have an overweighted high-yield allocation for our clients. we are cautious now to debate whether or not they are getting paid for the risks they are taking in the high-yield market, because spreads are so tight. we have made no changes to her allocation as of yet. it is something very much on our minds. lisa: do you position for further dollar weakness given that debt deficits and voluntary policy that is not going or? -- monetary policy that is not

going anywhere? jeff: we were dollar neutral to dollar bearish. we have a slight overweight to emerging markets in are equity allocation for clients. we are underweight international development and continue to be underway for a number of years. -- underweight for a number of years. the dollar probably stays around these levels to slight downward ticks. i think if the dollar can hold near these levels, it is good for the inflation backdrop. a weakening dollar can be inflationary. if the dollar were to remain up here it is not influencing our decision-making yet. jonathan: jeff mortimer.

that question, am i being compensated for the risk of assuming? with the exception of maybe a small window last year, you think about the last 10 years, when was the answer yes? taylor: if you're not kidding full faith and credit, you're getting 2.70 percentage points -- 2.78%. people are saying no, i'm not getting complicated but it don't have the luxury of looking at a 5% coupon right now. jonathan: how long to rebrand? lisa: literally a decade. jonathan: high-yield is no longer high-yield. taylor: it is just junk, jon. one statement is don't take on high-yield risk if it is acting like an equity in the portfolio. just buy an equity.

you are getting the extension of credit risk. how is that behaving? like an equity by an equity. lisa: talking about behaving, he said as long as washington behaves. that meant they don't raise taxes. i wonder how long that be an issue people are looking at. jonathan: we are still expecting a package with tax hikes. it depends what your mandate is. if your taking equity risk, most people would say equity risks. taylor: well behaved 82 basis points. on the back of those comments yesterday on the close, the other comment was we are still in high-yield. there is nowhere else to go. jonathan: behave seems to be the theme, the phrase of the morning. well behaved. tom is watching. that's why i'm saying it. lisa: not so much. jonathan: i never worry about

you. tom keene will be back on monday. we advance by a little bit more than .1%. yields unchanged. euro-dollar slightly stronger. crude holding onto a 73 dollar handle. from new york, this is bloomberg. ♪ ritika: emergency crews are coming through the debris of a miami area condo tower that collapsed. one person is confirmed dead. at least 99 others are still missing. officials say the death toll will rise. no word yet on what caused the building to crumble. records show at least one resident had complained the homeowners association failed to repair damages to cracked walls. former minneapolis police

officer derek chauvin will be sentenced today, capping a murder case that spurred international protests against racism and police brutality. he faces a maximum of 40 years in prison after he was found guilty of murder in the may 2020 death of george floyd. he knelt on floyd's neck for more than nine minutes, ignoring his cries he could not breathe. the u.k. added multitude was quarantined-free travel list. more will be relaxed later to more destinations for people fully vaccinated against the coronavirus. airline shares gained after the announcement, which will boost the country's ailing travel industry. iran mr. midnite -- missed a midnight deadline for the pact with nuclear inspectors. they could come look at negotiations to revive its nuclear deal with world powers.

tehran said it would permanently delete information based on wider discussions on sanctions. 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. this is bloomberg. ♪

>> if you haven't gotten vaccinated, this is your

opportunity to get immunity before you get exposed. it is looking like he will be exposed to this virus. don't delay. jonathan: johns hopkins health security senior scholar. good morning. tom keene back on monday. equity markets, all-time highs coming into friday. 4261 on the s&p 500. futures up by little bit more than .1%. euro-dollar stronger. up by almost .1%. that is a stronger euro. weaker dollar, with the exception of sterling, the u.k. pound. firmer for the likes of jp morgan, bank of america and citigroup. taylor riggs, a green light to pay out a whole lot more. taylor: we will get specific numbers after the bell on monday. certainly the markets excited

for not only some of the buybacks but a dividend boost as well. jonathan: maybe. some excitement out there finally. i have seen none whatsoever in this bond market off the back of that deal in d.c. lisa: jeff mortimer said it is resiliency is the new boring. i think that will be the catchphrase. jonathan: well behaved by markets. professor, fantastic to catch up with you. the big story is the delta variant. several studies being done. what are you learning about it? >> first and foremost, if you are vaccinated, you should have good protection against this variant. some studies from england and ongoing studies from other countries are showing that. if you were unvaccinated, the story is very different. the virus is spreading much faster than even the alpha

variant, which was the big concern during the winter months in the u.s.. it is showing signs of having more significant disease and younger populations. both things are a concern for us and it will probably be the dominant virus i a couple of weeks. that sets us up for the fall for a pretty dangerous variant to be around. we think we will see surges because people will be moving back inside again. lisa: from a public health perspective, does the prevalence of the delta variant, given it is more virulent, causing potentially harsher disease, does it edify the idea of perhaps mandating vaccines are being more aggressive with requiring them for your portions of the population to be inoculated? dr. pekosz: one thing we have seen with these vaccines, particularly mrna-based vaccines are they have been resilient.

they have taken variants and maintained high levels of protection against them. the safety signatures from the mrna vaccines have been excellent. that is one reason to really say yes, we need to move these vaccines to a wider swath of the population. it's a bit confusing as to why we are seeing the level of hesitancy you're seeing about the vaccines given all the good news we are seeing about it. certainly something like the delta variant is more urgency to the vaccination. not to be pessimistic but we have seen multiple variants and i'm sure we will see more coming through. the vaccines have shown resilience. they should be pushed to as much of the population before the fall as popular. lisa: angela merkel said the delta variant means we can't say the pandemic end is coming. this is delaying when they can

project for things to get back to normal. as you were saying, president biden saying he is falling short of his 70% goal of getting all americans inoculated with at least one shot by the july for holiday. -- july 4 holiday. how much do the recent studies of our mrna vaccines and potential heart issues in more than 1000 americans -- how much is at hampering the pr behind getting some of the vaccines out to the public? dr. pekosz: this is where communication becomes incredibly important. we have heard a lot about most recently the cardio my eyes in -- cardiomitis in young males. we actually see it every year. we just don't look for it as carefully as we do now that we have these vaccine trials going

out there for vaccine safety. the message has to be tempered. safety is being monitored. we are paying attention to any kind of signatures that might come up with adverse effects or bad side effects. what we are not seeing is a major surgeon these adverse effects. the vaccine is behaving quite well in populations. the monitoring is finding very low levels of effects. we are doing our jobs in terms of monitoring for safety and showing the vaccines are safe. taylor: what are you seeing in terms of the delta variant between the johnson & johnson shot and the mrna, and efficacy? dr. pekosz: the johnson & johnson vaccine and the astrazeneca vaccine both have slightly lower efficiency against infection with the delta variant, but it seems like both protect very well from hospitalization and severe disease.

that is the most important thing we want for the vaccine. limit those surges of people going into hospitals and dying from sars-cov-2. given the choice, kenny would be fine. -- any would be fine. we are talking about the delta variant -- jonathan: a bit of a connection issue with the professor. time is almost up. thank you to andrew pekosz. professor enver rolet just -- and meteorologist. virgin galactic is flying in the premarket. up by 7.8%. they get faa approval to fly customers into space. the faa confirming the may 22 test flight performed well. they get the faa ok to fly customers into space. the ok for a full commercial launch license.

lisa: they got a commercial license back in 2016 that is still in place, but they are now cleared to carry the likes of whoever wants to go up into space. i wonder what the cost will be and how it will be advertised. jonathan: we are lucky to have one of our resident space experts in taylor riggs joining the program. space. virgin galactic up by almost a percent in the premarket. -- 8% in the pre-market. taylor: i would pay any amount of money to go into space. they talked about how the may 22 test flight achieved all objectives. it is the first time the faa has issued something like this. the flight on may 22, altitude of 55.5 miles. they going to continue. just incredible. the ingenuity continue to see in these programs. jonathan: do we have a price for a ticket? lisa: probably not that

expensive, right? jonathan: you expect this to be cheap, do you? lisa: in the long-term it could come down to six figures. jonathan: up by 7.6% in the premarket. good morning. this is bloomberg. ♪

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>> you will see prices continue to move up. it will be on the things we consume. >> the thing to pay attention to is the chairman. >> powell is optimistic we will get a robust labor market recovery, that inflation will be contained. >> he's been saying we will respond if we need to. there ain't no inflation problem. >> this is "bloomberg surveillance." jonathan: we have a deal in d.c. for our audience worldwide, good morning. this is "bloomberg surveillance ", live on tv and radio. taylor riggs stepping in for tom keene. tk back with us on monday. 4262 on the s&p 500. we have a deal down in d.c. we have something that might