>> 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

reshape the bond market? lisa: not necessarily. in the bond market it is a snooze fest. lower inflation. lower over the longer-term. nothing is shaking that, even a $579 billion infrastructure deal. taylor: unbelievable. a well behaved bond market we continue to discuss with a 280 basis point spread. hard to go anywhere else. it is the only place with yield. you take a look at the equity markets, further record highs. nasdaq, s&p, nasdaq 100. jonathan: coming in friday, record all-time high. s&p 500 pushing 4342. futures advancing .1%. tumbleweeds rolling to the bond market. the euro a little stronger.

119.45, stronger by a little bit more than .1%. lisa: the question is what inflation trends do people care about? the key metric the federal reserve looks at. we will get it at about 90 minute time. 3.5% year-over-year increase in the core pce metric. looking for a target of 2%. expecting people to dismiss the higher figure as transitory. at one point will enough higher inflation reads lead people to say the economy is running hotter? i'm interested in personal spending and the shift from buying goods to services. people are looking at the decline in buying stuff and being upset by going out to eat and buying services. we are also going to be getting a roster of fed speak. 10:00 a.m., consumer sentiment

coming out. the expectation is more inflation expectations for the consumer to come down and continue with the high elevation we saw earlier. this will be a determining feature going forward with respect to where inflation goes. we will be getting a roster of fed speak. who do you pay attention to? they are all coming out. john williams is the one to pay attention to according to bill dudley who came out and said all these other guys, the three big ones are the ones you should watch. jonathan: you are paraphrasing a little bit. lisa: i am. jonathan: bill dudley said something that got my attention. you can start to marginalize yourself on the fomc if other people are not coming with you. is that true for any of these guys today? lisa: the issue to me is they

don't want to be subject to groupthink. they want to demonstrate they are aware of inflationary pressures, of financial risk. at what point is it a positive for the federal reserve, even jay powell, for some dissent so people can say they are not tone deaf? they are recognizing what we are seeing but the message is being set clearly from the trifecta we will not move anytime soon. perhaps they are dovetailing this and executing perfectly. jonathan: dissent is a healthy thing. we cannot accuse the team met virgin galactic of groupthink. spce in the premarket for virgin galactic up by more than 12%. off the back of this headline, virgin galactic gets faa approval to fly customers into space. taylor: they are still on track to do that first flight this summer. i'm trying to figure out who is

off the $28 million blue origin bid. you get rival billionaires trying to go into space. it looks like virgin galactic may do it. jonathan: going and despise -- into space and spending time with mr. bezos is something else. do you get to do some training with him? taylor: i like they said one of the best features was the first class seat with reclining chairs for a good window view. jonathan: nice. $45.40, up by almost 13%. darrell cronk, don't worry. i want to turn to the bond market, far more boring. we have spent the last 60 minutes talking about it. why is that the case? darrell: it was largely expected. i don't think there is anything that is new. it is all about process, protocol and negotiation. this infrastructure deal is tied

to the bigger reconciliation deal. the house already said, along with president biden, if we don't get a deal on the reconciliation side, we are not getting the heart infrastructure package. the bond market largely expected that. july will be a busy month. you have the heart infrastructure package. you have to start to deal with the fiscal 2022 reconciliation budget. that is how green energy will come through. that has a $3 trillion to $4 trillion associated with it. child tax credit checks will hit on july 15. as janet yellen pointed out, we have to deal with the debt ceiling coming up in the summer and fall. it will be a busy summer in d.c. the bond market will have to pay attention through the summer, even if they are not paying attention today. lisa: where is the balance of risk right now? the torpedoing of the fiscal support in washington of some of the infrastructure spending, or

a deal getting past that is bigger than expected? darrell: it's a great question. i think it is on the latter. you have senator sanders pushing for up to $6 trillion price tag on the green infrastructure, the second reconciliation bill. it is likely is more closer to $3 trillion to $4 trillion. if that takes flight and get support, bipartisan support where it is passable, the bond market has to pay attention. you get some steepening in the curve from this anemic, dull, well-behaved -- today is the last day of school in new york city. well-behaved is maybe a good analogy for children getting out. lisa: forbade. -- or bad. darrell: it is surprising how well behaved it has been. taylor: i heard a commentary yesterday.

high yield is starting to act like equities. if you're making an equity-like investment, just buy equities. darrell: there has always been a good correlation between high yield and equities. i don't know if it is something new under the sun. our preference would be to own equities. there is a greater upside. it is not the cap high yield gives you. right now it is a place to carry on. you are getting a nice spread along the curb. you are getting paid well to sit. it's not an easy case that the market is cheap. it is quite expensive with where credit spreads are. i have to choose equities over high-yield right now. in most portfolios you want to be up on the high-yield spectrum as much as possible even though you are in the junk space. jonathan: is there a cyclical

bias right now? darrell: absolutely. even with the latest growth resurgence we still think it is reflationary, cyclical bias. we absolutely -- favorables are financials, materials, communication services. we fade on the defensive side. i could go through a list and check them off one at a time down the list of all the things that mirror early psychodynamics. the only 1 -- early cycle dynamics. the fed is starting to discuss two years out plus they may raise rates. that is more midcycle. two plus four years away, i don't think that is something we need to terribly worry about at this point. no need to have the party before you treat the hangover. lisa: financials. what has been priced in? what needs to happen for that

to continue? after it was clear the biggest banks could release more than $100 billion with dividends and share buybacks, the shares are up 1% max. this is not a big rally. is everything priced in? what could push valuations that much higher? darrell: that's a good point. the results last night reversely priced in. everybody knew it was going to be a good outcome. there are estimates banks could release up to 15% of the market cap in the form of capital and buybacks, dividends and the like across the industry. i think what you will see is two drivers for financials. you have to get the yield curve steepening again. rates have to go up which puts up a tailwind in financials. maybe more important, i want to see reserve releases. when they start releasing reserves they built up to the pandemic, that will go straight to the bottom line of earnings

which will drive strong earnings growth. the headwind on the banks is probably the sales and trading side. trading has been anemic and this well behaved dull fixed income market. they will not be able to push the big banks that have the trading exposure. they will have anemic numbers in the next quarter or two. jonathan: good to catch up. enjoy the weekend. darrell cronk, wells fargo wealth and investment cio. when did they start on wall street? 11:30, 10:30? that's on wednesday. lisa: really well-behaved. jonathan: that is the theme we have been discussing. the 10-year yields doing nothing. we turn to the banks. look at the banks and the premarket. we could see $140 billion return to shareholders for the six

largest banks in the mecca as soon as monday after the close. up .9% on b of a. lisa: thank you for that $140 billion. that's it. jonathan: tk back on monday. from new york, this is bloomberg. ♪ ritika: with the first word news i am ritika gupta. vice president harris heading for the border today. she will tour eight border and custom facility in texas. to comes after months of criticism from many republicans and some democrats about not having got to the board after president biden's take her to address the root causes of migration and into the u.s. the bipartisan infrastructure deal faces a complicated path in congress. president biden said he expects democrats to push through an

even larger bill with more spending alongside the bipartisan legislation. many conservative republicans are prepared to fight the democratic legislation. some liberals said they will not support well with that the other. india headache dedrick -- and you hit a single day record for more than 8 million vaccinations. that may not be fast enough or ended ahead of a third deadly wave of the virus. officials are questioning if the faster rate in vaccinations can be sustained. nearly 4% of indians are vaccinated. a top security official is taking over the number two spot in a cabinet reshuffle, the latest sign that crackdown is essential to china's long-term plan. the security secretary has been promoted to chief secretary. early this week, i campaign -- a

campaign after the largest pro-democracy newspaper was 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 but a good gouda. -- ritika gupta. this is bloomberg. ♪

>> this agreement represents the largest investment in public transit in american history. we will do it all without

raising a cent from earners below $400,000. i expect in the coming months this summer before the fiscal year is over we will have voted on this bill, as well as the info structure built, and voted on the budget resolution. jonathan: the president on then agreement data washington, d.c. good morning. tom keene back on monday. lisa abramowicz, taylor riggs. i am jonathan ferro. futures right now at 4260. yields unchanged. the phrase of the morning, they well-behaved upon market. euro stronger. data at a europe pity descent. pmi is better than expected. euro-dollar approaching 120 again. a stock mover this morning goes

to virgin galactic. spce. 11% higher on my terminal right now and the premarket. virgin galactic getting the faa approval taylor to fly customers into space. taylor: maybe as soon as the summer. of you are us to report live from air on space. somehow we have to get a ticket. jonathan: is that an insult or complement that they want to go there and maybe never come back? your viewers might be nicer than some of ours. maybe so. virgin galactic up this morning by 12%. i was in count. the headline across the bluebird significant. virgin galactic getting faa approval to fly customers into space. that starts now by more than 11% in the free market -- premarket. jack fitzpatrick, great to catch up. when we say we have a deal let's

talk about the we. who is the week? -- we? jack: 21 senators. there was a deal negotiated by a group of partisan senators, 10 talking to the white house. they have the backing of a 21-person group in the senate. they have a ways to go. one, to get to 60 votes in the senate. the bigger issue is the number of democrats, including nancy pelosi saying this deal should go nowhere until there is a second deal, this reconciliation bill the democrat-only bill that gets them every thing they want on the family plan issue that biden proposed, on climate, potentially things on medicare. bernie sanders has called for lowering the age for medicare. when the speaker said yesterday the infrastructure built isn't going to get a vote until we get that second bill, that creates

an uphill battle even for this bipartisan deal. taylor:, getting this right you have a bipartisan group of senators crafting the deal and then you have a group of congress members saying we will not vote unless bernie sanders crafts a $6 trillion bill that will also get passed in tandem? jack: that is kind of what we are looking at. it does not really need to be $6 trillion. seems -- things will probably come out of that. sanders's wish list is bigger than the biden proposals. the conversation includes progressives. is it possible to get the american family plan tax credits for families plus the climate stuff that is it in this infrastructure bill, plus a lowering of the eligibility age for medicare and adding of the dental and vision and hearing to medicaid -- medicare?

that's a big price tag. a number of things could fall off that. it does not need to be $6 billion necessarily. taylor: based on your knowledge, how realistic is it for this to get done as democrats are hoping for it to get done with the reconciliation in tandem with a bipartisan token chip people can go back and say we all did it and worked together? jack: it's possible. a lot of the time for a big legislative push it is going to go through reconciliation anyway. the 1.9 chili deli stemless went through reconciliation -- the $1.9 trillion bill when the reconciliation. even joe manchin is very open to a reconciliation push after this. i'm not sure they necessarily lose a lot of votes. it is possible to see all 50 senate democrats stick together on the next big package, which would pave the way for this

first bipartisan package. it is difficult. it is not nearly as simple as just saying they have a deal, all they need to do is pass it. taylor: paying for it, we heard the president coming into this segment. no taxes as of yet being raised. how do we pay for it? jack: it is not tax increases. it is some things i think are going to get some criticism for being a little bit gimmicky. there are extensions of things that are current law but set to expire. there are customs fees that in statute are set to expire and would extend those. there is an extension of the sequester of some mandatory spending that they tend to extend and extend and extend in perpetuity to use as a pay for. there are a number of things not tax increases and are not the gas tax they talked about.

they were a little light on details in yesterday's announcement. there will be some of it pay for using unspent money from the left. some of it is accountability on unemployment spending. that can be paired back. they are checking for illegal, inappropriate payments. it is not the real one that you would expect in terms of tax increases. jonathan: jack fitzpatrick. here is some of the pay fors. stronger enforcement of tax collection, unspecified public-private partnerships. always a favorite, unspecified private partnerships with the greater economic growth it will create. i always love that last bit. lisa: the bond market is saying nope, not seeing it. that is really telling. people are counting on faster

growth and the bond market is not reflecting that. how much is jeff mortimer right? the upside surprise. a deal getting passed could lead to longer-term growth expectations but right now we are not seeing it. jonathan: are we desensitized from larger numbers in the bond market? taylor, for the banks, we are talking about monday after the close maybe returning $140 billion to shareholders. six of the largest banks in america. taylor: huge buybacks. maybe some dividend increases. early this week they said $120 billion in buybacks coming this year. it is the year of stocks. jonathan: peak everything. lisa: you are looking at a nasdaq up 11.9% after last year's incredible rally. a lot of this is prized in. jonathan: the s&p 500 at

all-time highs coming into friday. features advancing a little more than .1%. yields unchanged on 10's. a stronger euro. heard on radio and seen on tv, this is bloomberg surveillance. ♪

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jonathan: from new york city to our audience worldwide, good morning to you all. here is the price action, s&p 500 futures -- all-time highs coming into friday. we had a little bit of weight into the benchmark. up 1/10 of 1%. interesting that you can take credit suisse of america, a price target of 4600. they agree on the banks, and you will find so many people in agreement on the banks. you need the bond market to come along with you, arguably. this is what is happening. in the bond market, just a stroke. even if -- just a shrug, even if

d.c.talks about spending more money even on initiatives like infrastructure. your 30 year your deck -- pete everything -- peak everything. thank equity is not really doing much on the back of it. when you talk about trillions being spent in d.c. and your bond markets not doing much on the back of it, in the price action, what is this telling you? let's finish with this. a bit of a snoozer at the fed. perhaps they don't do anything for a long time they want to do anything for a long time -- that they want to do anything for a long time. look to the central banks that are doing something or talking about doing something. they say long canadian currency

and stay long in new zealand. we have to talk about some movers off the back of this infrastructure deal. taylor: not a deal yet but at least in agreement and that is a start. seeing caterpillar and other construction related stocks. yesterday, you started seeing the move in premarket. also look at vulcan materials, martin marietta, those are getting big upgrades. three analysts are noting that this is a big deal for vstoxx. ev's are getting the boost in the infrastructure deal. we are still doing fundamentals here. virgin galactic on the news as the faa approving customers going into space. let's change the board and look at some earning movers. nike is at a record, revenue

could top $50 billion this year. analyst on not liking that, hinting at smaller margins and stepping up spending pressures. we could talk about the rebalancing happening today after the closing bell, it is the last friday of june and it happens every year. with your gamestop will be moved up. goldman sachs expecting 255 additions to the russell. 1279 stocks enter the russell. we are getting a shift, a rebalancing after the bell. taylor: it is interesting to see the likes of gamestop as number four. amc is the number one in the russell, just remarkable. taylor: and what does it mean for future volatility? we were speaking to the head of the ftse russell who constitutes these bounces and she was clear she would not speak about individual stocks. one of her questions was when

you have the top five that are mean stocks -- nema stocks -- meme stocks, what does it mean? taylor: 7/10 -- jonathan: 7/10 of 1% in the russell, so it may not be as big of a deal. lisa: it highlights how we feel right now given a fact that a company not so long ago was rejected as having any obsolete business model is now the number one. jonathan: do you still think it is any obsolete business model? lisa: i think it depends on what they can do with the equity offerings. can they come out and make themselves a competitor with the likes of amazon and a smaller pool of potential items for sale. jonathan: you are very diplomatic this morning. i preferred really set the task and opinion. lisa: you want to know what i am really thinking? jonathan: i would love to hear

it. lisa: i don't think they have personnel or the strategy that will give them a boost. he won silver lining could be that they raise money cheaply to give them a chance to compete and survive. the question is are they going to use that. we have not seen the strategy or the personnel to do that. it is diplomatic because it is a wait and see but i'm not seeing it yet. they have had a great ride off the back of it because the more equity they raise -- they raise, the better for equity investors. jonathan: crude has been heading north. $75 and $.41 -- $75.41. i want to bring in the director of research, we want to start with the resiliency we are seeing in the crude market that maybe we have not seen in the commodity market. we have had run ups in soft commodities and agricultural commodities. we have not seen that in crude.

why not? >> crew did not go up as much as the other commodities late last year. if you think about where copper ended up, crude should have been $200 a barrel but it didn't. covid obviously disproportionately impacted crude because of a mobility issue and now crude should be outperforming the rest of the asset classes and commodities because economies are reopening and we are going about our lives as much as possible. there are differences in parts of asia versus the u.s. and europe, but that should be benefiting crude. lisa: i have to talk about the idea of how much production is coming back online to meet the demand that is increasing. you point out that brent will reach $80 a barrel from the current $75.41 by the end of the year because of the lack of

elasticity and because the demand will not come back online as quickly because of geopolitical developments. can you talk is a swing factor is because we know demand is rising quickly over the summer. we are all traveling or everybody hopes to be traveling. the only group that can really increase supplies is opec or opec+, other than iran. iran is within opec but they are not able to increase production. after what happened to prices last year -- there has been no investment. that is why opec is not really responding and cannot increase production. all eyes are on opec+ meeting on the first of july. we expected iranian barrels to come back to the market around

now onwards. -- the conservative hardliner has been appointed the president but it does not look like a ron will be able to come back to market or a deal is likely before august which means iran will return in q4 which means opec+ has to start raising production the summer or prices could go north of $80. we think they will do a little bit. that is the potential in the market, yes there are supplies available all within opec or opec+. they need to be willing to give production to the markets, otherwise it is a moot point. lisa: why do you think francisco blanch is not correct when he says you could see crude getting up to $100 per barrel? amrita: i don't think that is incorrect, it is the timeline.

we have been the most bullish on the street for the longest. we put a forecast a year-and-a-half ago sing oil prices will go above $80 from 2020 to and could touch $100 because of the lack of investment we are seeing in the market and covid has accelerated it. for the short-term, opec+ does still have capacity in their armor. if you saw the heavens from india, consumer countries are dealing with opec+ and inflation is becoming an issue. prince of dual did highlight -- the prince highlighted that opec does need to do something to make sure inflation does not get out of hand. that is why it is unlikely we will get a huge surge this summer. prices will be high. you are unlikely to get prices

significantly toward $100 or higher. lisa: what is the willingness as prices move higher for producers to not get tempted by the price and want to produce more? amrita: that has kind of been the old old pack -- the old opec. we have built on those imbalances already. that. temptation will always be there. . -- that temptation will always be there. we are seeing that saudi arabia has managed to keep group cohesion hi by explaining to them that if you cut production you get a higher price so that net revenues go up. he has done a remarkable job in that. a lot of opec+ countries, including nigeria, iraq, and russia are struggling to raise production because they are not immune to declining rates. due to what happened last year,

there has been no investment, not just in opec countries. that is also helping -- helping in the market because no one is able to increase production. it is only saudi arabia that can raise production. jonathan: we only have 30 seconds, but we are about to catch up with the u.s. energy secretary. what are the pay forwards in the agreement yesterday. with petroleum reserves in the u.s.? what is your read of that in the last 24 hours? amrita: you are going to get more spr being released from the u.s. the u.s. prison -- the u.s. is producing more and needs less imports. i would look at it from that point of view. they will still need to regain some spr because it is about security of supply. jonathan: amrita, thank you. coming up next, jennifer granholm, u.s. secretary of energy off of a deal in d.c. i know they are calling it a

deal but i don't know if the bond market is calling it a deal. lisa: at least it was written, but whether it gets passed that -- gets passed -- jonathan: lisa abramowicz, taylor riggs, jonathan ferro in new york, this is bloomberg. ♪ ritika: matt hancock is apologizing for reaching pandemic rules after seen embracing a senior aide. he said he will resign. his apology came after a newspaper published two photos of him with a woman. he says he knows he let people down and he is sorry but remains focused on getting the country out of the pandemic. emergency crews are coming through the debris of a miami area condo tower that collapsed. one person is confirmed dead but

99 still missing. officials say the death toll will rise. no word yet on what caused the building to crumble. court records show at least one resident has complained that the homeowners association did not repair damage to cracked walls. ronit missed a midnight deadline to renew its nuclear contract with inspectors. it could delete sensitive enrichment information and complicate negotiations to revive its nuclear deal with powers. it depends on the outcome of sanctions -- discussions of sanctions relief. virgin galactic is one step closer to fly customers into space. it has been given faa approval following a test flight. virgin galactic says it is moving toward its first fully crewed test flight this summer.

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. ♪ >> i believe we are in the middle of a temporary adjustment cycle where workers will return to the workplace. supplies will eventually catch up to demand. for those reasons, i expect our near-term inflation pressure to ease as we go into the fourth quarter. jonathan: that is the richmond fed president. we listen to the richmond fed president -- do we listen to the richmond fed president? alongside taylor riggs and lisa abramowicz, i'm jonathan ferro.

up a little more than 1/10 of 1% on the s&p 500, it has been a shrug for the bond market. yields unchanged off the back of a bipartisan deal in washington, d.c. we have a guest joining us from washington. i'm pleased to say the former governor of michigan, the current secretary of energy, jennifer granholm joins us. thank you for joining us. i'm about to commit an interview senate. i'm good to start very narrow on the oil reserves of spr. i did not see how much you're looking to raise from that. what is the number? sec. granholm: there was not a number in there, probably strategically because some of the still has to be negotiated. it is not selling off all of the strategic petroleum reserves. it will be a limited sale that is able to meet the president's

goal. he did not want any of these paid for to raise taxes on those earning under $400,000. he did not want to see tax on electric vehicles or a gas tax so this is one of several elements that were used as a pay for. jonathan: it is interesting that republicans put out a document circulated lawmakers that had been number $6 billion, the amount of money they would raise from the cell of emergency oil reserves. -- the sale of emergency or reserves. is that number wrong? sec. granholm: i am not saying it is wrong but this is just a framework that was announced. not everything is set in stone and it may move. it is a limited sale. lisa: how far does this deal get toward moving towards an electric future?

i am talking about vehicles in particular given the fact that there are not provisions for tax on higher gas -- higher tax on gas. the provisions for charging stations is just $7.5 billion versus what biden originally had. sec. granholm: part of the $174 billion with the point-of-sale tax incentives for the purchase of electric vehicles so that they are at the same level of -- as combustion vehicles. that is something the president will still fight for in the two step. the first one is a bipartisan part in the second one is reconciliation which i am sure your viewers know is the budget reconciliation process. in that, he will fight for a lot of the climate related measures he put forth in the american jobs plan as well as the measures in the american families plan which involves

preschool, two years of free community college, the care economy. this first step is important in terms of electrifying the future , that we have a strong transmission grid. you saw there were $74 billion in the power sector. a good chunk of that was for expanding the capacity, the resiliency of the transmission grid. usually important for electrifying. lisa: are you disappointed by the fact that there was not more momentum behind these initiatives that would push the u.s. further toward some of the clean energy goals? sec. granholm: i am not surprised that this first package, this first framework does not include a lot of that because it has been difficult to get a lot of tax incentives behind clean energy from the republicans.

there are a lot of republicans benefiting from it as well. in the second package, the president will continue fighting for climate measures, including a clean energy standard. the bottom-line is that this is just one step that we have to take the second step as well to get the president's full agenda through. lisa: some other items we are looking at -- taylor: some other items we're are looking at, the electrification of buses, upgrading airports, fixing waterways, it is beyond the scope of just electrification. are those enough of a green energy for you? sec. granholm: this is a historic investment in water. what they are going to do is make sure every home in america has pipes that are safe to drink from. so there is not lead in the pipes and children are not poisoned. that every home in america has access to high-speed internet.

it is a historic investment in rail, and investment in transit, and a historic investment in the investment -- in the grid. all of those pieces are great important for america's future and all are pieces that the public overwhelmingly support. who cares whether you are a democrat or a republican? you want to have water that is safe to drink. taylor: can we talk about the grid, what you can do from a national level? we are coming off of texas that we just saw. i am from california, the power goes off every summer in the afternoon. what can we do on a national level to make sure we are shifting to being more climate friendly but also maintaining reliability? sec. granholm: really important question. what we need to do is add capacity to the transmission grid to bring the clean energy

being generated in the states that have a lot of wind and solar to places that have low centers which are using a lot of electricity. we have to do with the department of energy is doing which is investing in research which allows for expanded significant storage -- energy storage so we can use clean energy assets 24/7. the president was to see an investment in keeping the nuclear plants we have online open or investment in next-generation nuclear which is baseload clean power. investment in geothermal which is baseload clean power, investment in hydropower. all of that has to happen. not all of that would be included in this first piece. we are going to fight to make sure it is included in the second bit of legislation we hope will arrive at the president's desk this summer. lisa: we are speaking with jennifer granholm.

secretary, there is a question about shale producers. even as we talk about a transition to clean energy, shale producers have been behind a huge surge in economic activity in the u.s., a huge concept of u.s. oil independence, and now we have seen shale drop off during the pandemic and not come back as much. how important is it in your view to get that production back up and running at the capacity it has versus the discipline we are hearing from ceos of these companies? sec. granholm: this is an important question because the world is moving to clean energy and clean power. natural gas, an important baseload fuel, has some problems with clean. it is cleaner than coal but it has methane emissions which is a greenhouse gas. it has co2 emissions. within the framework announced

yesterday, there are demonstrations -- a significant amount of money for demonstration projects of carbon capture which could be used to decarbonizing the fossil fuel sector. that, to me, is another very important technological step and a step that helps our climate goals. it is technology that can be used here but also helps around the world to decarbonizing. all of these goals get to these agreements we have signed onto, the paris agreements. these kinds of technologies will help for the oil and gas sector to be able to ramp up production but in a way that is clean. jonathan: what is the role of the spr in this administration? sec. granholm: it is an

emergency stockpile, essentially, just in case. it was something generated and particularly important during the oil embargo and the opec crisis. we have this as an important measure in case there are shortages, inc. case we need to have it. so we are going -- in case we need to have it. so we are going to keep it and put it into a section of department of energy used for emergencies. jonathan: so why is this being used to make money? sec. granholm: this is not new. jonathan: right, but to raise money for an infrastructure plan -- sec. granholm: every year congress uses it to pay for something or another that may not be related to the reserve itself. the reserve will be solid. we have a lot in reserves. it will continue to be there for the purposes in which it was intended. it also has this mechanism where

some is sold off for other reasons congress wants. jonathan: this is one of those occasions, apparently. happy to catch up, secretary granholm. energy is a key part of this story. lisa: the question is how far did they get toward biden's goal toward a greener energy future. because right now the structure -- the plan is more focused on bridges and roads. jonathan: wti, $73 and almost $.10. all-time close for the thursday session. this friday morning, we follow-up. posited by was 1/10 of 1%. yields unchanged at 148.84. your fx market, euro-dollar, 11942. a lot to discuss in this market, particularly for the bond market. what is not happening is a selloff on the back of a few

trillion agreed in d.c.. i know it targeted investment. lisa: you said not happening, nothing is happening. jonathan: lisa abramowicz, taylor riggs, jonathan ferro, this is bloomberg. ♪

>> you will see prices continue to move up and it will be on things we consume. >> the economy is overheating. >> it 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 has been saying to wait, look, and we will respond if we need to. there ain't no it inflation problem. >> this is "bloomberg surveillance" with tom keene, jonathan ferro, and lisa ab