♪ >> 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.

>> this is "bloomberg surveillance" with tom keene, jonathan ferro, and lisa abramowicz. tom: good morning, everyone. a simulcast, bloomberg radio, bloomberg television. this is an important week, the end of the second quarter. this is an important week, it would get early jobs report. some fed speak to get it through -- to get us through it all. jonathan: this market is much more in line with the core of the fed. not much is going to happen a jumpsuit -- is going to happen anytime soon. tom: david kotok leading with health care. what is your consensus on what the correction is? jonathan: they get this to's -- the consensus seems to be that pete growth is behind us, and asked that peak growth is behind us, -- that peak growth is behind us, and that going forward, things get more difficult. what i know looking at the last cycle is that things started to

get really difficult when the balance sheet at the federal reserve started to be reduced and interest rates started to go through what many people perceived to be neutral. the federal reserve is going to have a balance sheet north of $8 trillion and it is going to stay that way for a long time. that stock effect for this market is going to be really powerful. tom: the stock effect can be the economics or the stock effect of the dow. i want to set up matt brill in the theme for this first interview. it is the tights right now. the yields are unimaginable in the bond market, aren't they? lisa: the idea that companies are willing to lend to corporations at incredibly low rates. it comes to the idea of how perhaps these tight credit

spreads have gotten divorced from the normal credit cycle because of the's backing, because of the fact we have this exogenous shock, because so much is pumped into the market and perhaps we are entering a tightening cycle. tom: matt brill was phenomenal the last time he was on the show. we will do that number of moments. even the vix at under 16. jonathan: i don't see the dow anywhere. tom: very good. we don't have a number, but we see the name. jonathan: the year-end median forecast in our survey, 4300. top and, as top end, credit suisse -- top end, credit suisse, jonathan golub. the bottom end, 3800. for the medium, we are basically there right now. just north of 4300 in the middle of the year. tom: first thing i looked at

this morning beside the price of lobster in maine, i looked at where we are trailing six months on equities. all of this worry, angst, go to cash. we are up 14%. jonathan: we are up more than that if you look at the banks, close to 30%. the energy players north of 40%. the debate we started the year with over cyclicals, over the big tech players, that is still the debate right now. what do you want to own? tom: ethics was asleep this chef x -- fx was asleep this morning. i'm going with francisco blanch. we are grinding up. jonathan: wti slightly negative. that's one part of the commodity market that has remained pretty resilient given the run-up we saw elsewhere in lumber. take your pick and soft commodities. tom: our guests on radio and

television speak to us and make us pause. the last time matt burrell was on, he stopped us in our tracks on the dynamics of supply and demand in the bond market. lisa, i'm going to have you asked first question, but it's got to be on the supply or so-called heirs of it coming up -- so-called dearth of its coming up. lisa: are they becoming more credit worthy and spreads? matt brill of invesco, do you think that is what is going on here, that they are actually becoming more creditworthy companies? matt: good morning, everybody. i do think you are seeing just the fundamentals get better and better with the u.s. economy, but you are also seen corporations really tried to figure out how to get rid of last year's debt, and last year's debt was all about survival. so we have seen at&t, ge, ups, all big names looking to pay down debt. overall that is pretty good for

the market. valuations are very challenged, though. the fundamentals are going to keep adding better here. jonathan: what does the maturity profile of these massive companies look like now? matt: most of their companies are kicking the can down the road, making sure they don't have any long-term debt maturity. the average duration continues to get longer. that is bad from a market market standpoint because it means there's more duration, more volatility, but it's good from a fundamental standpoint because it don't -- because it means they don't have the maturity of the market were to seize up again. so it is a net positive. jonathan: does this play into the high-heeled, that we are stripping out the cyclicality of this market? matt: i think so from the terming out of maturities, but as lisa was mentioning with the federal reserve, the fed didn't really by high yields. really, just the fact that the

fed was there illuminated tail risk to the corporate credit market. we do believe that from an overall beta standpoint, if you are more comfortable investing in the market. tom: is this 2006? matt: it is not. it is 2021, just to be clear. but it has some resemblances to it, but not really. 2006, 2007, you had to tx you -- the txu lbo. i can't remember the exact number, but around 15% equity. there's a lot more private equity having to put up or and more into the deals to get these done. they don't want to go through txu. at the end of the day, the market wouldn't fund a deal like

that today. they did, however, fund a 600 million dollar microstrategy deal to buy bitcoin. i would like to say that there's a lot more currency in this market. there's people really not going to make dumb decisions, i don't think i'm on the investor side of things. but they are being forced to invest, but not into bad companies. maybe just not as much yield as they would like. tom: i know that we are 60/40 in my portfolio. if i got to percent in fixed income, what do i do? matt: jon doesn't need a lot of things in his portfolio. jonathan: thank you. [laughter] tom: do something about this guy. never again. . matt: there is opportunity still in the reopening trade. we are seeing names like owing today get a large deal from united area they have some negative news out as well. for the most part, the reopening

trade lives on. the reflation trade is there. we do think that commodity prices go higher, and with that there are certainly opportunities with the emerging-market world as well. so emerging markets that have more correlation to commodity prices and asset prices overall going up we think is good. there are ways to make money in the corporate market right now, particularly in investment grade , around the globe, but it is a lot more solid fifth. you have to really look under every stone to find it out there. lisa: on one hand, you have to look under every stone and be idiosyncratic select securities. on the other hand, it is a macro trade. at some point, credit trades in tandem because ultimately it is whether the fed comes in unpacks things and how duration sensitive some of these bonds have become, not? matt: that's right.

duration has been the key theme of the year. we don't have equity-like returns this year, but if you look at most corporate ponds, they are essentially flat on the total return, so it hasn't been the disaster many might have predicted at the start of the year. i would say all eyes are on the fed in terms of tapering, and terms of whether they are going to have lift off. the foreigners continued to buy a lot of bonds. if the fed doesn't doff, that makes hedging costs go higher. before and buyers will buy less, so it is us that the key thing to watch is when will the fed hike because that will likely make it more expensive for the coronavirus and less attractive than our higher-yielding bonds back home. jonathan: good to catch up, matt brill, invesco head of u.s. investment grade. welcome back anytime. tom: is that so? jonathan: let me pick up on that question you asked, is it 2006? it is not because what followed

2006 was 2007 and 2008 did this federal reserve is so different. this federal reserve is hell-bent on not allowing a bust to take lace and credit. lisa: it would torpedo the economy in a way that would be very hard to recover from without fiscal support that is unreliable, as we have seen even with a crisis. i say that because the more debt that gets built up on corporate and government balance sheets, the more fraught it is for any interest rate rise. jonathan: this is the cycle over and over again on repeat. every single cycle, any kind of downturn is led and matched by even more debt, and every time we add more debt, our sensitivity to higher interest rates is that much higher, which means that we can't raise interest rates like we did in the previous cycle, so every peak in the fed funds rate is lower, and what happens on 10 year treasury yields? fill in the gap. every single time we repeat

this. tom: it's monday. the seventh season of "love island." we've got the stanley cup. jonathan: have you watched that? lisa: he's got hulu. jonathan:jonathan: would you like to do an interview? [laughter] , is going to be interesting. it is heating up in new york city. from new york, this is bloomberg. ♪ ritika: with the first word news, i'm ritika gupta. u.s. airstrikes on militias in syria and iraq have come at a delicate time. the pentagon says the raid was aimed at deterring future iranian interest in iraq. the new president is someone who has been said to take a hard line against the u.s.. meanwhile, negotiations for the deal have dragged beyond initial

timetables. there was concern the deal could fall apart when the president linked it to a large tax and spending bill that republicans opposed, but the presidents walked back his remarks saturday. republican senator rob portman says work on the bipartisan bill can move forward. the last and only foreign scientist wuhan lob is speaking out to bloomberg. danielle anderson was working at what has become the world's most tory's lab just weeks before the -- most notorious lab just weeks before the first cases of covid arrived. >> so nothing strange from my point of view going on at that went that would make it seem a there were things going on here. ritika: there has been speculation that the coronavirus leaked from the lab. the u.s. has questioned whether the facility is safe.

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. ♪

>> we remain very optimistic. very exciting to see republicans and democrats come together on

infrastructure plan bh game changer -- on an infrastructure plan that could be a game changer. jonathan: from new york city this morning, good morning. alongside tom keene and lisa abramowicz, i'm jonathan ferro. equity markets, 4273 on the s&p, advancing about two points. we advanced 0.05%. on the low-end come on the high-end, 19 basis points on the week. right now, to basis points. tom: can you imagine if we would go 19 basis points from here? jonathan: that would be a big move. we moved on quickly. tom: the dynamics here are really something. my dynamic is brent crude at $76 a barrel. right now on the infrastructure debate, it would be good to get a little experience with decades of work.

william hoagland joins us, the bipartisan policy center senior vice president. with decades with capitol hill, the house and the senate, we don't want to pay for our infrastructure. at what point did we decide to gas tax was a bad idea? matt: i think the president decided that when he decided he would not want to raise taxes on anyone with incomes less than $40,000. that's less than $400,000. i agree with you. that is when we have used to fund our highway trust fund. it was obviously tied up with the politics of not taxing anybody. tom: the critics here say simply the gas tax goes to other programs. in a bipartisan agreement, if they say the gas tax increase

will all go to bridges and, is that doable? matt: yes, you can define where you want that revenue to go. right now it goes into the highway trust fund, and you can make certain that that money is specific without having to go to other things. if you have a transit, it goes into a transit fund. so there are other ways to bypass. i think that is a bogus argument, that you can't do what you just outlined. lisa: do we really have to pay for anything anymore given that benchmark yields are so low? this goes to your more than three decades of service for the government crafting chits. have we resolve the need to repay for some of these programs , given that basic deficits have proven to be a liability for the nation?

matt: i still believe that deficits and debts matter. while interest rates are low, this is a good time going forward, from the federal government perspective. long-term, i am not of the mindset of those interest rates won't climb back up. total debt of well over $3 trillion will not be social security or medicare, paying interest on to public debt. i am of that mindset that still believes you have to pay for this, even with the low interest rates we have, and i think in many ways, they have bipartisan agreement that was reached over last thursday, off track on friday, back on track yesterday, saturday and sunday. i think there was an indication that there is some desire to try to pay for, even though it is somewhat soft. lisa: of the republican members

you are in contact with, have they rethought whether it is proper to have this low tax rate for corporations? whether they would be more amenable to the idea of raising those based on the studied trajectory we have seen over the last two decades? matt: i think that depends what republicans i talked to. and staffs particularly. i think there are some who would agree there is a need for adjustment of the corporate tax. we get to it in another bill called the reconciliation bill. i think you will see it in the area going up to 25%, not 28%, on the corporate tax rate the credit has proposed. but there is going to be some pressure for increased corporate taxes. tom: the hammersmith bridge back to 1987 or whatever is basically completely broken down, and they can't get it done there, can they? jonathan: i love how you're

complaining this -- complaining about this even though you have probably ever been to the southern part of london. tom: i went to the international war museum. i think that was on the south of the river. jonathan: defining infrastructure seems to be a struggle right now. have we agreed on what infrastructure is? matt: i think we agree that it is physical infrastructure that has bipartisan support. there still is a lot of discussion and will being -- and will be in about personal infrastructure. childcare, family played leave -- family paid leave. these kind of progressions that the congress want to define which has been one of the issues over the weekend, defining the republicans from the progressives in terms of what

they want to punted -- what they want to put in. but for now, hopefully we will be able to put this bill together, along with the democrats and leaders of the house and senate and the president, i think they will be able to repair bridges, roadways, highways. i think it has been expanded to include issues associated with the broadband. the individual infrastructure, the family plan the president put forward, i think it is still up in the air whether that should be defined as an infrastructure or not and then i'm ziv individual -- in the names of individuals. jonathan: thank you for that. we have the core infrastructure, bill. we can agree on that. then there's the social infrastructure bill that is going to be very separate. lisa: there is this idea that originally, they came up with this agreement, and perhaps this is why the market did not respond. it was a bipartisan deal, $579

billion. but then there was this asterisk , they only have two pass a $6 trillion plan alongside it, and would have to veto that. i still don't have a sense of where we are. veto doesn't seem word that has -- doesn't see much a word that is being used. lisa: there needs to be some other kind of plan to further bidens agenda for further progressive democrats to get on board. jonathan: and what i mean by that is that speaker pelosi has basically said she's not even going to look at this bell unless -- this bill unless there's a much larger one that comes with it. lisa: so are we talking about a $6 trillion all in package? this is one reason why people are having a how time knowing how to respond to this. jonathan: breaking news. tom keene has been south of the river. tom: jon from wester just

emailed in and said -- is it thames? jonathan: it's the thames. tom: i get them mixed up. jonathan: 4273 on the s&p, all-time highs. this is bloomberg. ♪

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jonathan: live on tv and radio, good morning to all alongside tom keene and lisa abramowicz. i'm jonathan ferro. equities at all time high. your s&p advancing just a little bit. a lift a little more than .1%. yields into 1.5054 on the 10 year after a wide range on the 10 year through last week. euro-dollar 1.1915. weaker euro. off about .2%. tom: you are right. i am thunderstruck by a 1.5110 year. mario gabelli with us. his wonderful individual stop work. we are thrilled he could join us this morning.

i will stay on a stock theme. long ago and far away you knew where a spark plug went, you knew the carburetors, you knew the automobiles and the tractors. you go along on case holland. why? mario: let's assume the stock market is flat the next two years. how you make 50%? i look for companies that can benefit from infrastructure. even if there isn't any, the construction business will boom in part because of the tailwind of capex. the ecological ecosystem, but more importantly, they want precision farming. less water, more precise, less labor. then what you want to own is a company that also has the

ability -- the new ceo came up from florida. $15.5. financial engineering. that is enough reasons to own. tom: let's continue the theme. most of our listeners do not know hyster. that is not amazon. what is the risk of missing out on amazon and apple? mario: the notion is you have a choice in life, a choice of making 50%. another one of my 50%ers -- going back to hyster, a young guy at 79, same age as biden, he is running the company. they are putting too much money

without demonstrating success in creating hydrogen fuel for their forklift trucks and taking the skill set elsewhere. it is a good bet on the recovery of their business which benefits from the change in the logistics and we thought they would earn five dollars in two years, we are still sticking with that. it is not one of my nifty 50 for the moment. it is an ok play. we own it. we have not sold much. it went from $60 to $100 back to $65 or $70, where it is now. jonathan: in the graduate the line, i just want to say one word to you, plastics. today you say he would've said batteries. why? mario: let's go back one giant step. we have to love the planet, love the people in our plan and look at the potential. in that regard climate change requires renewables. that is wind, solar.

transmission, cybersecurity, because their crazy organizations around the world, but also battery storage. on top of that you have the ev dynamic. that is do you do lithium ion or remove solid-state? how to get longer distance, how do you recycle it? the battery is an important element in that ecosystem. 46 years of an auto conference. this time last year was featuring autonomous vehicles, last year was preowned cars. this year it will be batteries. how do we get a major battery breakthrough? companies like berkshire hathaway expand what they are doing in their field and companies that provide lithium benefit from that. jonathan: are you interested in

doing it through the technology that goes into the car? mario: the answer is we look at the entire ecosystem. i am picking batteries because if you saw the graduate, which was r-rated at the time, there was a scene where dustin hoffman has to confront the husband or is confronted by the husband, and we are now getting into details. this is a family program, i think. batteries is a good sound bite. you could've said removal of plastics, recycling, but i chose batteries because i spent 55 years in the auto industry. lisa: there is a question, if we want to go to the graduate where dustin hoffman was under the water blowing bubbles and trying to reset his life. there is a question as you try to look for bottom up opportunities about how to evaluate what is been priced in. a lot of the companies you're talking about, the industries with renewable energy and batteries have been highly bid

up because people agree with you. at what point is it too much, has it been priced in? mario: you always look at value versus price. i think you'll make 50% in four years. i will give you four names. the spanish market is doing well. the goods management. univision is going public sometime in the next six months. then you have a company that is buying at a bargain price going back to your ev. electric vehicles for last mile, electric vehicles, electric trucks. volkswagen spun off their truck business but they have a lot of that intellectual capacity. they are buying at a bottom price and selling at 28 euros. they will earn four dollars plus. the stock is 50% in two years.

there is a lot of ways to participate in the margins at some of these stocks. then you have to play baseball at this time of year. you do not need to say what is overpriced in this market. what happens when the government comes in with a $6.2 trillion expenditure and raises only 4 trillion. we think about those things but we look at companies with a microscope and say what will work two years from now? some of these stocks, we do not change. lisa: i will let you talk about the opportunities in baseball with tom, and i'm sure you have things to tell him. there is a question about concentration, especially as someone who has been bottom up for so many years. do have more confidence in a --

mario: you listen to how management is executing, the economy for the company and their shareholders and constituents. there are a lot of companies where it is not fully understood because of the new dynamics in the market. then there is a lot of risk. i worry about the high margin requirements. should we increase the margin requirement? i worry about the shadow banking. today you guys are talking about the huge amount of money coming in by the banks this afternoon and tomorrow. in part they were reined in by dodd-frank. you have to give dodd-frank some credit.

we look at the valuations and we look at what is the present value. who will buy the company? think about spac's, thinking about strategic's. buying stocks, using it as a currency, and even companies we like our selling converts with a 1% coupon to raise money. tom: i want to talk about the heart and soul of the matter. this goes back to the wonderful jack welch. the idea of pricing power. revenues are made up of a unit dynamic enterprise dynamic. we will have pricing power -- will we have pricing power in unit growth to go with it? mario: 7% gdp growth israel. revenues have grown 10%. if i was the only company in the united states i would have a 10% revenue increase and look for improvement in 2022 in part because of an effect of certain

companies. if i have a surge in my cost, can i pass through my cost with the margin maintained? there companies that can do that. s dna will not rise 10%. desk -- sgna will not rise 10%. then i will be hurt by taxes and hurt by multiples. tom: -- i want my cash back, i want dividend growth. do you see any change in cash dynamics? mario: i am a big fan of cash buybacks and corporate dividends. you will pay -- then you have the obama tax on top of that, you will keep 30%. that is a triple tax on shareholders. i am not a big fan of dividends. i like the buffett approach. he is buying back stocks because they are selling well below intrinsic value.

your go people were concerned about financial liquidity. today they are not as secured about -- today they are not as concerned about that. the surge in prices kumutha lumber down from 1700 to 800. you will have wage increases because there is a shortage of labor. that is what we have to be sensitive about. one of my directors said it is like -- inflation is like toothpaste. once it gets out, it is very hard to put it back in the tube. we have to be supersensitive. at what point does jay powell lift his foot off the accelerator on financial dynamics in terms of pumping money into the system and how will the market react? that is the short-term plot for the next 10 year voyage. jonathan: let's not wait another year before we talk. great to catch up. mario gabelli there.

pricing power the big issue. tom: i know we will get through jobs and we will do that on friday. the mystery right now is the difference of opinion in bloomberg surveillance on what earnings will be. the next quarter on from that, there is a raging debate, mario gabelli clearing on the side they will be positive. jonathan: margins, and they were resilient through q1. lisa: especially as we see certain commodity prices come off their highs earlier in the year. does that give a boost to margins beyond what people were expecting where will higher wages eat into it? i wonder how much people have accounted for some of the wage increases we see, particularly in the restaurant industry. jonathan: have we seen peak inflation fears? can we say that? lisa: i am not willing to say that. jonathan: can we make that point based on market perceptions of

inflation price pressure? lisa: what is interesting is you can see it in the bond market. in stock markets, you do not hear that belief. we think there is a percolating inflation fear. tom: the swing of the pendulum of margins. jonathan: usually lisa is gloomy. i am not sure if that was too gloomy. equity investors seem to be laser focused on costs and pricing power and where that shows up in an acute way. tom: i cannot give my opinion. we are not supposed to give our opinions. jonathan: when have you held back in your opinion on anything? tom: the closest i will,, a lot of research. jonathan: this trip, we will not hear the end of it. tom: that is it. jonathan: we are done? tom: you have another three weeks vacation coming side to be here to take care. jonathan: you and i are having

words. 42.70 -- 4276 on the s&p. tom: are they going to put us in the same bar? jonathan: i do not think we are allowed in the same room. jonathan: coming up on the open, state street cio lori heinel. on bloomberg tv, this is bloomberg. ♪

>> i don't think inflation is going to be transitory. if we get wage growth, i think

inflation is going to be a problem. where people have more money and it costs more to produce a few things, it will come through at higher prices. tom: patrick armstrong on the pace of the market. futures up five, dow futures -16, nasdaq futures resilient. jobs day on friday. all of that coverage for you. lisa abramowicz and tom keene. with us, we start strong on the 100th anniversary of the communist party in china, rob warlick joins us. the bubble that never pops got rave reviews out of oxford in recent months. tom orlik, thank you for joining. i want to go to your boat where you talk about the fourth cycle -- your book where we talk about the fourth cycle we are in now. how does president xi get to the fit cycle? -- get to the fifth cycle?

tom: this hundredth anniversary of the communist party will be a celebration of the development in the last 40 years. looking forward, there are opportunities, investment in technology come efforts to boost fertility to offset the demographic drag from the one child policy. president xi will hope you can deliver on his objective of doubling the size of the economy again by 2035. also the overhang of debt, the slow down of the state sector, and decoupling from the united states and its allies, which threatens to slow the cross-border flow of ideas, which has been a driver of china's development. tom: if you're in shanghai and you wonder back on one of the streets, eve moved back to the french concession where all of the west -- you move back to the french concession where all of the west had their own neighborhood.

i've been to the house, it is a museum, the history of the communist party. how attached is the museum to the chinese people? tom o.: it is a great question. when the communist party looks back on their last 100 years they will be celebrating a lot of successes. they will be celebrating their success in kicking the japanese out around world war ii. they will be celebrating the success of deng xiaoping and his reform, which have lifted china up the gdp rankings over the last 40 years. what we will hear less about in the history of the last 100 years is some of the missteps. we will not hear much about the great leap forward. not much about the cultural revolution. not much about events today in chin jang. for the rest of the world this is kind of a reminder that when a single party state gets it right, they can deliver enormous

benefits. when they get it wrong, there can be serious missteps. lisa: how much does china want to emphasize the communist shift behind the party versus the more democratic and capitalistic shift you see the nation take on? tom o.: here in the west, lisa, we think the recipe for success in china is going to be to move closer to the western model. we think a china which is democratic, a china which is more market oriented is the only china which is going to succeed in the 21st century. that is not the view of the chinese communist party. that is not the view of xi jinping, especially looking through the lens of the covid crisis. what they see is democracies and markets failed in the chinese, just party succeeded,

controlling the virus, getting the economy going again. they think the events of the covid year, the events of the last 100 years demonstrate the success of their governance model. they will be doubling down on their political model and their economic model as they go forward. lisa: is the ccp gaining popular support among the rank-and-file in china or losing it? tom o.: that is an extremely difficult question to answer. there are no elections in china. there is a limited role for the press in china. we do not have opinion polls. what i can say is a party which delivers substantial increases in improvement in the quality of life, the quality of living for a large share of the population typically enjoys some solid support, and i think that captures the situation in china. tom: tell me about the reach of

the communist party outside china, very quickly. how powerful are they in a traditional communist rhetoric? tom o.: i think we have to draw a distinction between the old ussr, which wanted to spread communism, and the modern chinese communist party, which wants to increase chinese influence but does not care so much about the ideological component. yes, we have the belt and road spreading chinese funding and political influence around the world, but the countries which take that belt and road funding moving towards a communist ideology? no, not really. they are aligning more with china's global interest, but beijing does not really care whether they move on to a mao zedong, karl marx type trajectory. tom: we have to leave it there. wonderful to start our coverage

there. cannot say enough about his book. rave reviews. his journalism in china. it is sort of a sideshow to all that is going on, but it is 100 years on from something that change the world. lisa: perhaps a sideshow is front and center when it talks about the rebalancing of geopolitical power at a time when the east versus the west is taking on a different town. president biden is trying to gain some of the alliances back in order to come up with a strategy to counter china. this is very much in the front and center. tom: you wonder after the president's trip to europe and the perceived success of that, what will it be like when we see biden on the pacific rim? i believe that is scheduled. lisa: i have to offer up a surveillance correction. canada called and they were put off when i said it was a less vaccinated region the rest of

the world. actually they are now leading in the number of first shots, the percentage of first shots to its citizens, with about three quarters of the population having received at least one shot. that said, fully vaccinated, not as much is the u.s. and israel in certain places in the eu. it shows the insecurity around needing to get a certain portion of the population vaccinated in order to entice travelers, in order to entice business. tom: to save yourself further, the price looks awfully good today against tampa. lisa: i am following that game closely. [laughter] i can talk as intelligibly about hockey as you can about football. tom: the clock cannot move fast enough. we start on monday and go through the week. jobs day on friday. within that is a bull market.

the nasdaq 100 off to highs for the day. stay with us. adam posen coming up. this is bloomberg. good morning. ♪

[ "me and you" by barry louis polisar ] ♪ me and you just singing on the train ♪ ♪ me and you listening to the rain ♪ ♪ me and you we are the same ♪ ♪ me and you have all the fame we need ♪ ♪ indeed, you and me are we ♪ ♪ me and you singing in the park ♪ ♪ me and you, we're waiting for the dark ♪

jonathan: from new york city for our audience worldwide, good morning, good morning. the equity market coming into monday morning at all-time highs in the s&p 500.

"the countdown to the open" starts right now. >> everything you need to get set for the start of u.s. trading. this is "bloomberg: the open" with jonathan ferro. ♪ jonathan: we begin with the big issue. pushing ahead to payrolls friday. >> the labor market is not functioning the way you would expect. >> a lot of flak. >> there are more job openings and unemployed people. >> a lot of opportunities available people are not filling. >> there is a skills mismatch. >> we need to see other job openings be filled. that is why using wages going up. >> the economy is trying to parse the data. >> wage inflation is an