>> the market isn't convinced we've made enough progress. >> the bond market will have to pay attention. >> we are optimistic we will get a robust labor market recovery. >> if we get wage growth, i think inflation is going to be a problem. >> it is -- wages begin to go down. >> this is bloomberg surveillance. jonathan: shall we get to monday at all-time highs. good morning. good morning. we are live on tv and radio. 7:00 eastern time, going into

friday we know this story. demand is skyhigh in america. that the economy could run hotter. even after the yield curve has come off some of its steeper levels, we are trying to understand the diversion here in views. tom: take the 24 month gdp report. bnp paribas usually costs us -- usually cautious. jonathan: deceleration is going

to be the key term as we going to the back of this year, as we close out. the federal reserve starts to adjust its communication. is that an environment where you want to belong risk assets still? do you want to stick with the things that worked in the back half? lisa: a lot of people say yes. lori calvasina was saying there's sort of underweight to bonds and potential for buying going forward. it is a conundrum with yields that are so negative. there are dissonant messages here, especially if the fed starts to take the pedal off. that's the key question heading into the jackson hole summit. jonathan: let's get to the price action this morning. equity futures, 4272.

your yield on the 10 year in almost two basis points, down to about 1.5071%. crude south of a $74 handle. lisa: yield setting a bit lower, not that much drama. there really is a question what the threshold is for federal reserve officials to start changing their guidance heading into the jackson hole meeting. what are the three big ones? there are certain fed officials you need to pay attention to more than others. the key question is, how many good datasets do they need heading into a jobs report friday? how many upside surprises do they need before they start changing the guidance? president biden is meeting with outgoing israeli president --

the outgoing israeli president. airstrikes over the weekend raising questions about the willingness to strike another deal. today after market, the biggest u.s. banks reveal how much money they will give to shareholders. the expectation is more than $140 billion for the biggest banks. how much of this is being priced in already? it seems like every bit of good news has been priced in which is the reason why you so well put it last week, have we reached peak everything? will the market react with a shrug? jonathan: thank you. fantastic as always. is there some kind of veto threat in the administration over these two bills they are trying to push through? this is what the president said saturday.

does speaker pelosi agree with him? tom: no, we heard that from annmarie hordern. the democratic party has to sort this out. after the quiet of the clinton years, the quiet of the obama years, the democratic party many would say is reverting to what it has always been, which is fractious. jonathan: we welcome now become balloon advisors cio st cumberland advisors cio -- the cumberland advisors cio. >> it looks like we will have some type of infrastructure plan. they have to deliver a plan. it won't be as big as anticipated. biden wants to complete something. the republicans don't want to be the obstacle. so it looks as if something happened, and whether it is $1

billion or $900 billion or $1 trillion, whatever number it will be, we will find out. tom: everybody follows your allocations at cumberland advisors. you are sitting on cash. what are you going to do with it? what does your research on sectors tell you right now? david: the largest sector is the health care sector. we have maintained that as a strategic is a sure and. -- as a strategic position. we believe the covid shock is a strategic shock that will take years. the various component parts of it are the beneficiaries in a business sense, and i wish it were otherwise. we don't want pandemics, but

that is what we have. the health care sector is probably 14% of the s&p 500 weight. in our shop, we are closer to 28%, so the highest weight for large sector i have ever been. lisa: i want to go back to this idea tom raised about higher cash allocation. what are you seeing not being fully invested that other people are not? david: we had a position in materials, commodities, to etf's. we sold them, and we are not ready to redeploy that cash. we are not going to put anymore into health care. so we have to look at the sectors very carefully. we are slowing from a peak, so if you're going down a highway and you slow down to 40 miles an hour, at the time you are slowing, it feels as if you are going to slow to zero.

i don't believe we are going to go to zero, but we are slowing. we cannot maintain this 6%, 7% gdp growth rate in the united states. it is not there to be had. so the slowing is going to reveal something. the second thing that is going to reveal a lot are the earnings reports which are going to start in the next couple of weeks. we are going to get a handle on earnings capacity in this quarter of such robust recovery. tom: because of time, i know you are in breckenridge with the blue river moves north to the colorado. we will do that another time. you were the absolute national leader in wall street on the bird virus of years ago. everybody thought you were nuts, and in hindsight you look like an absolute genius. your thought on how we are going to adapt to covid, the delta

variant, and how we get out of this pandemic. david: i am very pessimistic about it because of the political divide in the united states. we see it happening. bloomberg reported 482 counties which have low vaccination rates , and they all have rising delta rates. the pandemic isn't over. it is going to be over sometime. it will take a while. tom: do you fold that into your investment outlook? david: absolutely. we have one million excess deaths. we have partial or full disability covid cases, and we have more of it coming. so that is what is happening in the united states. and then it is worldwide, so we don't even fold in the global impact yet, but that is coming, too. jonathan: just quickly, what links to that is in your market call? david: i want some cash.

i want the health care sector. the second overweight sector is defense because of what the world looks like. you just reported iran. you've got airstrikes. defense is a big issue in the united states. i don't see a defense budget cut or any impairment of defense. united states has a very heavy defense load now in this world. jonathan: david, smart stuff. provocative thoughts. david go talk -- david co. talk -- david kotok, cumberland advisors cio. i've heard that from blackrock and rick rieder as well. tom: it's fascinating. we are going to recalibrate after this jobs report. i've been unfocused on economic dynamic at 700,000 nonfarm payroll, but the fact is we had

that enormous surprise, and now we have a third data point coming out of enormous surprise. jonathan: in many ways, demand remains strong. 9 million plus job openings in america. do people arrive to fill them? lisa: that is the whole debate. people might fill them, but we might have seen, in terms of the growth in earnings, peak growth. if deceleration isn't going to zero, but that gets priced in, and we haven't gotten there. jonathan: looking forward to catching up with matt brill. we will do that in the next hour. from new york city this morning, good morning. alongside tom keene and lisa abramowicz, i'm jonathan ferro. heard on bloomberg radio, seen on bloomberg tv, with your equity market close to all-time highs, 4273 on the s&p 500, we advance just two points this

morning, positive 0.04%. your yields are coming in almost two basis points on the 10 year to 1.5071% following the selloff last week. yields come in, then yields go higher. you get the picture. from new york, it is going to be a hot one. this is bloomberg. ♪ ritika: u.s. airstrikes on american backed -- on iraqi backed militants raises questions. talks on reviving iran's nuclear deal have dragged past initial timetables. there was concern a deal could fall apart when the president

linked it to a larger tax and spending bill that republicans oppose, but the president walked back his remarks saturday. republican rob portman says work on the bipartisan legislation can move forward. the last and only foreign scientist in the wuhan lab is speaking to bloomberg. they were rocking at the lab just weeks before -- they were working at the lab just weeks before covid emerged in wuhan, china. >> there was no chatter of anything. nothing strange from my point of view going on at that point that would make you think something is going on here. ritika: there's been a lot of speculation that the virus leak from the wuhan lab. the u.s. has questioned whether the facility was safe. starting thursday, hong kong will ban all passenger flights

from the u.k. and will be classified as extremely high risk with a rebound of cases in the u.k. and the spread of the highly contagious delta variant. 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 do trust the president, and he made very clear in the much

larger statement that if the venture structure bill -- if the infrastructure built reaches his desk, he will sign it. at the same time, i recognize that he and his democrat colleagues want more than that. jonathan: that was senator romney speaking to each cnn. -- speaking to cnn. alongside tom keene and lisa abramowicz, i'm jonathan ferro. monday morning with your equity market at all-time highs. we add another two points to the s&p 500 at 4273. outside of that, yields lower by a single basis point to 1.5088%. central bank after central bank coming out this morning and saying the following. this from a member of the governing board over at the swiss national bank. easy policy needed, not ready for the exit. from the central bank of austria, we don't know yet if the emergency is over. emergency is the keyword because they have an asset purchase

program with the word emergency in it. the pandemic emergency purchase program. so if the emergency isn't over more than year since the emergency started, it means there will be this renewed continued commitment to buying bonds at the ecb with a lot of flexibility. tom: guess what? we are data dependent. do you agree? jonathan: which data. what is the threshold? if we are outcome dependent at the federal reserve, what is the outcome they are looking for? it is clear they all have their own version of it. tom: i would go with that, that is every nation for themselves. right now, the senator from utah, we hear senator romney over the weekend. right now, i would focus on the definition of progressive. over the weekend, an article on progressives in new york.

emily wilkins looks at the view from washington. how lonely are liberals, are progressives right now? what is there affecting washington? emily: it seemed friday that progressives were doing quite well. they had men asking for weeks for a guarantee that the larger democrats backed reconciliation bill that would have health care, climate change, that would move with any bipartisan for structure plan. you heard house speaker nancy pelosi say absolutely. but then he saw biden walk it back. i think there's a big question now, how do you keep progressives on board but also make sure you've got your joe manchins and kyrsten sinemas on board. tom: all of our experience says you can do that -- you can't do that. are they under 20% of washington, or more dominant than that as we try to get an infrastructure build on? -- infrastructure bill done?

emily: they are a small percentage of the democrats who are there, but they don't need to be a large percentage. you lose one senator in the senate, you lose four members in the house, and democrats can't get what they want through. so if there are going to be progressive members who say we are not going to vote for this bipartisan infrastructure plan until we see reconciliation, and we can vote on that, that is going to be enough to hold up the process. the question is, will they do it? because they want to get something done. they don't want to go home to their districts empty-handed. so it is a tricky debate. are you going to be ok delivering a smaller package that a joe manchin can go for? lisa: as democrats campaign, what is the least worst outcome for them at this point, given

some of the pushback to the bipartisan agreement, the 570 filled bill -- the $570 billion plan? how left has the democratic party gone that not getting anything else done would become a liability? emily: of democrats i have talked to, they realize things would be very bad if they got absolutely nothing done. they need to get something done. it is just the fact that moderate democrats are more comfortable getting just the bipartisan infrastructure plan done. now you have even heard joe manchin say i am cool with going for a more expensive reconciliation package. then comes the question, how big is it? manchin talking about $2 trillion, bernie sanders talking about $6 trillion. this negotiation will go on over the next few weeks as they start to see where the devil in the details are. lisa: the fact that bernie sanders is crafting it means the

process might be no little longer -- might be a little longer because it has to get down to the middle. is there any chance we could see these bills presented in tandem? emily: it will be interesting to see what speaker nancy pelosi does with these bills because if she gets the sense from progressives that they are not going to vote on that bipartisan infrastructure bill alone, she's going to have to wait for a reconciliation bill to come, and she has been adamant on that particular point. when you look at the dynamics of her chamber, she only needs democrats to pass bills. it is not like the senate, where you see president biden focused more right now where you need those republican votes. but lucy knows that all she has to do is keep her caucus together and she will be able to move things forward, so we might see those bills moving tandem if policy chooses to hold up a bipartisan bill until the broader reconciliation is able to come to the house floor. jonathan: how much daylight is there between the speaker right

now and the president of the united states? emily: they both want to get something done. it is just a method of how they do that and they and a matter of the vote. i think at this point, how much muscle are progressives going to show moving forward here? are they going to block a bipartisan infrastructure plan knowing that many of their districts could benefit from it to hold out from a larger, more expensive bill? jonathan: emily, thank you. always fantastic. we sat and i were talking about this last week as you were on the beach eating lobster rolls. tom: jon, there's no beaches in maine. jonathan: can you not have a beach made up of rocks? tom: no. the water is so cold. jonathan: your definition of a

beach has to have sand. lisa: the american definition. jonathan: the tom keene definition. let's move on. [laughter] i don't want to get bogged down. tom:tom: can i give you a good research piece? jonathan: please do. tom: morgan stanley, michael wilson out with a research piece over the weekend. inflation-adjusted minimum wage is near decade lows, even with the worries of rising wage growth. i thought the work was just brilliant. jonathan: it has been brilliant over the last couple of months. lisa: there's a question of whether they will actually rise, and if they do, whether this will be good for the real economy and bad for markets because it shrinks margins. this is going to this debate we see in the second half of the year. tom: if i hadn't been on the beach in maine, i would have written this up. jonathan: the point i was trying to make is that we didn't get a moving tenure yields even though we did get what seems to be a deal down and washington, d.c. in the bond market. tom: i could see jon about

miller knock it -- jon up at -- lisa: did you understand any of that? jonathan: nope. welcome back, tom. equities up four. with events 0.1%. on radio and tv, this is bloomberg. .

♪ jonathan: two hours away from the opening bell in new york city this morning. live on tv and radio, here's the price action. record highs of th -- record highs after the biggest weekly gains since february. 4274 is where we are right now. on the nasdaq, up by 0.3%. a little later after the close today, look out for the banks. you could get an avalanche of announcements. some of the biggest banks in america set to announce something close to $140 billion in capital reserves. tom: i don't me to stop this, but is this a coordinated announcement by the banks? why is that? jonathan: it is not coordinated, per se. they have to wait until the

close on june 28 to get a green light from the bank stress tests last week, when you were getting lobster. capital returns get it done alone. let's turn to the bond market. on the treasury curve, yields at the front end at 0.2582%. on the 10 year, this is where we had a total round-trip. going into that that decision, not morning south of 1.50%. then we were higher. then we were aggressively lower. now we are back to 1.51%. if you want the banks trade to perform, do you need more than capital returns? do you need that bond market to come with you? what to watch a little bit later after the close, romaine bostick. romaine: good morning. keep an eye right now on shares of boeing, slightly weaker in the premarket. some concern here about the

latest edition of its 777, the long-haul version. the concern is that the faa has actually said that there might be some issues that boeing needs to address with regards to the so-called un-commanded pitch error. this is the same type of error linked to the fatal crashes of the 737 max. something keep an eye on. it could delay certification of this plane until mid 2023, maybe even later. virgin galactic rallying after receiving faa certification to begin those spaceflights. the chip space, nvidia higher after the company is getting a bit of a boost from some of its customers with regards to its acquisition of arm, the u.k. semiconductor group. those companies saying they are not worried about the antitrust concerns. flip up the board. just a quick check on what is going on in the biotech space. we got some interesting news out

of intel you -- of intel he on. the results from that came back pretty good. an early clog will study, the first major clinical study in the human body of this technology, this is a big deal here. a lot of competitors in this space also rising this morning. as is kathy woods -- as is cathie wood's innovation etf. tom: let's get right to it on the outlook forward. james athey joins us with a really smart research note. he's of aberdeen standard. you look for a second half that is more difficult. why? james: i think some of the

tailwinds which have been helping us see some of these incredible inflation and helping to keep market sentiment is we end and euphoric as it has been, many of those will be turning to headwinds. some of them already have. we already know the china policy mix has shifted. i think once we get passed the ccp anniversary in the next few days, we should expect to see that continue to tighten, and just in terms of change in deltas, i think we have probably seen the best of it for u.s. growth in the best for u.s. growth expectations. i think fiscal policy, again, we are still talking about infrastructure packages, but the magnitude is minuscule, so i think fiscal policy will increasingly be a headwind. jonathan: we caught up with david kotok, talking about a car decelerating. you're still moving forward.

is that not an environment where you want to own the equity market in any way? james: why ask me that weston debt -- that question? i'm a bond guy. i don't understand the equity market at the best of times. if the economy is doing well, you own equities. if the economy is doing badly, you will want to own equities. in that simple formulation, i can't think of a world where you want to -- where you don't want to own equities. i'm just going to lean on the fact that equities are expensive because of stimulus more than they are because of growth, so i think the delta and's -- the delta stimulus is slowing. jonathan: i was taking you down equity lane so i could take you back to the credit market. if valuations don't count in the credit market, do they count in the stock -- in the stock

market, do they count in the credit market? james: it doesn't seem too, does it? it doesn't until it does. that is not news for financial markets. in things like prices paid,, what you pay is what you get. if the risk-free rate is zero and the fed is forcing central banks -- the fed and central banks in general is forcing liquidity in the system, the question is sustainability. to me, what matters is the sustainability of anything acting on asset prices. i just don't see the inflation we are seeing, the growth we are seeing, and the policy we are seeing today as being sustainable. in that respect, isaac the future has never looked quite as bright -- i think the future

doesn't look quite as bright as the recent past. lisa: what is the canary in the coal mine? if it is not treasury yields, if it is not high-yield bond spreads, if you talk about a 2.5% yield on a new junk bond being issued, what is the new canary in the coal mine? what signals in the market can you depend on? james: i think you're right, the credit market, there's the fear of missing out and risk markets in general. it is a huge psychological driver of investor behavior. the fear of selling out and asset that you can't get back into his dominant, so they are lagging indicators essentially, once we know things have gone bad. credit spreads have already blown up by that point and people will still be holding those babies, so i don't think we can look there.

in equity markets, the dominant psychology because of 10, 12, 20 years of central bank monetary largess that did support systems in charge rather than the very investors. the treasury market, the dollar, to some degree they are likely to be an earlier indication that things aren't right. you look at the fall in breakevens, the flattening of the yield curve, the rise into your yields, to me come all of these are indications of what potentially is to come. lisa: what is the safe asset to hold? do you see in those tea leaves some signs of caution? james: if you have my view that the second half of the year is more difficult, but likely to still see elevated inflation, that monetary policy is on the path towards a tighter stance. that could take a while, but certainly the change is towards

tightened policy. similarly was fiscal policy. then ultimately, duration has value particularly at the long end of the yield curve. i don't think potential growth is higher than in the pandemic. i would argue it is lower. i think there's value there, but i think there are risks that the market will continue to be nervous about a fed hike in the intervening months, and therefore intervening yields don't look particularly attractive. so long the long end, long flattening there's. that is how i am positioned. jonathan: the british weather seems to be affecting your portfolio management may be a little bit. [laughter] if the sun came out, what a change?

james athey, aberdeen standard senior investment manager. james: i don't think we have to worry about that. [laughter] jonathan: thank, sir. we were going through some of these credit dynamics, and she just turned around and said we are stripping cyclicality out of the credit market. that is what the fed are trying to do. it is not going to pick up on any of it. lisa: the idea is central banks are going to sweep in on any kind of micro-disruption, then why not go all in even if you're not getting that big of a return? that has been the issue for the likes of howard marks even, who really found this market. . . jonathan:jonathan: two headlines in the last hour. one from hong kong, to classify the u.k. as extremely high risk, to ban all passenger flights from the u.k. as of july 1, which is thursday. then boris johnson comes out and

says lifting covid curbs is very likely on july 19. tom, not for me to take on any of these issues, but july 19 feels like a long way away. tom: i don't get the whole thing. jonathan: you won't go there. let's say that. tom: but it just seems out of kilter. do you feel that way? jonathan: between now and july 19, i think we have a really important case study. deaths have remained low. hospitalizations remain low in the u.k. they have just started to tick a little higher. what does that look like from here out to july 19? lisa: i also think there's a recent history bias. when covid was starting to circulate, people took a while to put masks and implementation in certain policy, and things got worse. they want to avoid at this time

around. tom: i'm not focus. i want to find out what you think on england-germany. jonathan: that's the big one tomorrow. did you watch italy on saturday? tom: i noticed italy doing very well. jonathan: very stressful. tom: i was at luke's lobster in portland. jonathan: burning a hole in your pocket, apparently. 42 74 on the s&p 500, inching higher by almost 0.1%. from new york, this is bloomberg. ♪ ritika: with the first word news, i'm ritika gupta. the u.s. has launched airstrikes on iran bucked military groups in iraq and syria. those attacks could be an early test for iran's president-elect ebrahim raisi, who has been seen as someone who will take a harder line against the u.s. the outgoing president rouhani.

u.s. labor market is entering one of its strangest summers ever. a powerful economic recovery is generating demand for workers. still, millions of americans remained reluctant or unable to go back to work. the unemployed and -- the unemployment safety net have reduced the need to get a job. blackstone is increasing its logistics. the private equity group has agreed to buy the warehouse properties of a british grocer. they will run the 25 warehouses after the sale. -- is moving from a luxury brand

in the middle of a turnaround to another that wants to start one. he tried to make the brand even more upscale. 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 ritika gupta. this is bloomberg. ♪

>> the trend is drifting to

services being the key driver. we need to monitor very carefully whether the services component, the reopening parts of the economy, continue to see higher basis. jonathan: we will catch up with torsten slok. from new york city this morning, good morning. alongside tom keene and lisa abramowicz, i'm jonathan ferro. here's the equity market this monday morning, 4273 on the s&p, climbed just two points, off by 0.05%. outside of that, yields coming in almost two basis points. the euro now negative by 0.2%. euro-dollar clinging onto a $1.19 handle. did you see the reporting we have done ubs in the last 24 hours? they will look to allow 2/3 of employees to adopt a hybrid work effort. they see that as potentially competition with the american banks to attract talent. tom: ok, great.

are they going to do it in america or partition over to the continent? jonathan: i believe so. what is going to be interesting about this, if you work at morgan stanley or jp morgan or goldman sachs and they are thinking, get back to work, and you don't quite fancy the idea of five days in the office in new york city, there might be an alternative available to you. lisa: this is being used as a recruitment tactic i the likes of ubs and actually deutsche bank. i am wondering what a partial or hybrid model looks like. is it one day a week that you can work from home? how much do the nuances play in here? still, that split being highlighted to be borne out. jonathan: and it won't be everyone. let's be clear about that. if you are a traitor, i imagine you are -- a trader, i imagine you are expected to be in the office five days a week. tom: up main, up the coast, how

far to canada? jonathan: did you drive. tom: we took the nash. it was great. canada is four hours away. dave wilson goes all canada today with the montreal canadiens, tonight playing for the stanley cup. dave: you've got to take a look at canadian stocks relative to u.s. shares when you compare valuations. what they did was look at forward price-earnings ratios on the s&p 500. you are talking about the canadian index being 23% cheaper as of friday. only up to go back a couple of months. see that discount was 27%. tom: what is the catalyst that moves that? dave: think about earnings. you are talking about a stock market that has much more tied into energy and metals. talk about a couple of areas that have benefited along with the economy.

that is part of bank of america's argument. in the canadian market, you stand to benefit more by being in canadian shares that you do in u.s. shares. so they are looking at it in terms of where the market is as opposed to just valuation. lisa: does this mean that the sell side analysts see the balance of complacency as not necessarily being complacent enough? that people haven't bought into the reflation trade and need to double down, and this is one way to express it given the fact that canada is way behind the u.s. and other nations when it comes to vaccinations? dave: that may be part of it here. the s&p tsx has done better than the s&p 500 so far this year, but at the same time you see its valuation moving in line with global markets when you look outside the u.s. and focus on developed countries. you put that altogether, it is not like you are necessarily paying up at the same time that

you are looking at a market that stands to benefit more than others when it comes to economic growth. tom: celine dion singing the national anthem in a vegas hockey jersey? that isun-canadian. i'm's asked that is u -- that is un-canadian. sorry. tobias levkovich is emailing me about celine wearing the las vegas carb. -- las vegas garb. jonathan: how many days were you therefore? tom: i was there for 12 hours. [laughter] jonathan: it sounds like tk has not been out of the house for two years, made it to maine and had a breakthrough. how did it go? who did you go with? why did you go? tom: we just went. jonathan: we just went, ok. lisa: i favorite is that al from

new jersey is doing research into the price of lobster rolls. jonathan: you know he expenses his vacations. [laughter] tom: absolutely. jonathan: i know he does this. tom: i think we should do a road trip. we should do the show from their. heber humor bari of stash heber humor bari -- e brahim -- e brahim rock bari -- jonathan: how does the price respond to that given that data? lisa: honestly, good news is going to be bad news if you can trust what the notes say. morgan stanley saying that actually, good news could make the fed or hawkish, and that this will be more negative. there seems to be a divergence where the balance of risks for markets is higher inflation and a faster pace potentially of

tightening, and the balance of risks for the fed is increasingly stagflation. the balance seems to automatically shift that way. i wonder when this gets evened out. what will be the breaking point? jonathan: what i think it's crazy, how finely balanced between the federal reserve has not done enough and the federal reserve is about to choke off growth. seemingly begin jump from one extreme to the other in this market. tom: what i am going to say is we still see the grind of the market risk -- the market must react to that dialogue. the nasdaq 100 is ground ever so slightly higher this morning, where the bid is just there because you've got to be in the game if you believe in chairman powell. jonathan: i would say for the nasdaq specifically, if you believe that the federal reserve is going to start choking off growth, growth equities start to look a little bit better.

lisa: this is exactly your point. because of this narrow difference between either the fed acting too soon or acting too late, they think that any data point could have that much bigger of an impact on markets, and that everything is magnified. stronger economic data could intensify the hawkish tilt. we did not see that with respect to last week's comments. the hawkish tilt lead to a flatter yield curve, which pushes the fed to be more dovish. it is enough to make your head spin. jonathan: brent stayed tight. the euro is weaker. euro-dollar down to $1.1906. the euro slightly negative. we are down about 0.25%. your equity market up two on the s&p. tom: i'm getting emails from boothbay harbor. good morning. jonathan: are they offering a

discount for your trip? tom: gerard cassidy is up there with his yacht. jonathan: are you a secret shopper? is that what this is about this morning? tom: you've got a helicopter on the backside. jonathan: the bill hasn't been paid in new -- in maine. from new york, this is bloomberg. ♪ ♪

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♪ >> the market just isn't convinced that we have made enough progress yet. >> it will be a busy summer in d.c., and the bond market will have to pay attention through the summer. >> howell is very optimistic that we are going to get a robust labor market recovery, that inflation be contained. >> if we do get wage growth , i think inflation is going to be a problem. > once you have jacked wages up,, and almost every country in the world, wages begin to go down.