♪ >> the data is good right now. the problem is that it is not good enough. >> 25% of the world is vaccinated, so i think this reopening story is only just beginning. >> businesses have been reopening faster than workers are ready to come back. >> this in for structure package is not going to be as big as -- this infrastructure package is not going to be is because many people hope. >> i think this market is reassessing how competent it is in the growth outlook. >> this is "bloomberg surveillance" with tom keene, jonathan ferro, and lisa abramowicz.

tom: good morning, everyone. a simulcast on radio, on television, and it is a most surprising market. romaine bostick in for ms. abramowicz. it is a raging battle about what to do when the stock market. jon: we said earlier on in the morning, show us the bond market, i will give you the equity call. your 10 year yield at 1.34%. your 10 year yield at 1.34%. who was lookingqjz middle of summer after the growth figures we've had in this country? who was looking for a 30 year sub 2%? that was not the consensus view. those positions got hit once a couple of weeks ago. they got battered again yesterday. tom: the real yield right now, that 10 year duration at get a 1.0023%, says it all. on the equity front, it is a raging decision between being

u.s., or maintaining a cyclical view, or get back on board amazon and its brethren. romaine: i think you are seeing a reassessment of that cyclical view go for the growth stocks, which are by default the safety stocks in this new era. but you talk a bout the rotation we saw little earlier, it wasn't only you ethical. rotation creep out into the emerging markets. five creep out into europe and have seen those stocks at record highs. you have to wonder whether that gets pulled back. other this is about concerns about regulation, or simply a reassessment of the growth we are getting is going to come with a little bit of package. tom: we will have a guest in a moment on the heels of abby joseph cohen when with a very different view. let's go to the bond market for a moment. nominal yield, less inflation

expectations, that stunning larger negative real yield. on inflation expectations, it is jump ball, isn't it? jon: a negative one for you yields -- for real yields. that was the story of yesterday. it was a drift lower in real yields. what we have to grapple is why. why did that happen? is it really about the deceleration you are expecting it to next year in the year after? i didn't see de-risking. i just saw the rotation and the equity market. feels like a negative growth shock, a reversal of what we saw in the first quarter. all of those stories one by one have topped, and it started with the bond market. it started with nominal speaking at the end of the first quarter. it started with breakevens in may peeking, and then started to chop through the equity market a little bit more. energy and financials started to underperform. big tech outperforming. you see that on the nasdaq this

morning. they are up by 89 points, up another 0.6%. tom: fx gives me nothing this morning. oil pulls back a little bit. equity markets, i've got some movement. spx up 11 points. nasdaq up 0.6%. it is the way the nasdaq is up that is important. jon: and yields are lower with it. 1.4363% on tens -- 1.3363% on tens. price shapes narrative. narratives don't shape price. that is what is happening. steve major of hsbc has been bullish the bond market, this morning saying maybe be forgetting a sense that this story has peaked. frances donald of manulife made the call that she think we have seen a cycle peak in the 10 year yield already. whatever your view on all of this, you start to see the tide moving, and people start to build on it. that is what's been happening

over the last several weeks. tom: the opening of an economy, we just saw that with abby joseph cohen and her six-year-old granddaughter interrupting the show worldwide, and says this was a kindergarten experience this year for her granddaughter that was done entirely by zoom. it is an opening economy. wei li joins us from blackrock, their chief global investment strategist. you have a fascinating view, and it is so much avoid the u.s., like knupp on the u.s., and look at other places. -- lighten up on the u.s., and look at other places. why? wei: i would caveat by saying it is not so much caution on the u.s. as much as it is a view that the next leg of this cyclical restart trade can be better played in other regions, the likes of europe, the likes of japan, where we start growing

out. you talked about peak growth. we have seen peak growth acceleration in the u.s., but growth acceleration is getting shifted from the u.s. to europe to japan, which are the areas that are becoming more favorable in this environment. but now we have lowered our conviction, but neutral is still 60% of global asset benchmarks, still the largest part of our client portfolio allocation, and we continue to think that we get above trend growth and negative real rates that should support a mostly pro-risk environment. so we are upgrading europe, upgrading japan, at the expense of lowering our overweight down to neutral, but mostly, it is

still pro-risk. jon: when we hear the call on the european economy, the united states open before europe, so it makes sense to europe would lag and do everything you just ascribed. the euro stoxx 50 outperformed the s&p 500 in the first half. that is where people are a little bit unconvinced of the trade right now. they understand the economic framework. they are struggling with the market call. can you convince them? wei: well, i hope. on a year-to-date basis, if you compare the performance to pandemic lows, talking about back to last march, it is still lagging u.s. cyclical's quite a bit, so we are looking at room for european cyclicals to catch up to their u.s. counterpart coming out of the pandemic. so it is not just this year.

i would also say that in terms of the european equity views, we think that the growth restart absolutely is an underpinning pressure, and at the same time, our assumption that has not been challenged so far that the vaccination progress represents a delay, not a derailment, of the restart, that underpins our conviction in european assets as well. earlier this year we upgraded from underway to neutral, where sentiment was very negative. 20áe are further upgrading european equities. romaine: back here in the u.s., a big part of this market and the gains we have seen was because of low interest rates. it was because of low labor costs, relatively low supply chain inputs, and even low tax rates, all things right now that we have been talking about that could potentially go up,

although yields seem to be working in the opposite direction right now. but there's a general sense that all of those factors that contributed to the run-up we saw in the last leg of the bull market might not necessarily be there for the next leg. wei: we do pay a lot of attention to the evolution of corporate margins. we have talked about low tax rate, low interest rate, and low labor cost and production costs as a result of globalization. we could be at a point where these factors could change, so we pay very close attention to corporate margins, but in the u.s., still very high, and specifically in sectors like technology, we do see them having the potential to pass on some of the costs and not only paying the corporate margins. so we pay close attention, but

it lends itself to be more selective when it comes to equity markets and other futures we would apply along the sectors using earnings. so here again, sectors that have seen strong earnings growth, cyclicals like financials and industrials and consumer discretionary, and we expect similar growth in the upcoming earnings season as well. so these are sectors that we definitely still like, and gross in sectors that didn't do as well earlier in the year can capture that. jon: wei li preferring europe. the euro stoxx 50 this year up almost 15% so far. a tremendous year already. tom: really off a base. that is the bet we are hearing

from blackrock before they make of your leg up as well. what i just see is oomph up and a silence from the gloom crew. we've got to talk about england-denmark. jon: you want to do that now? tom: we make jokes about it. romaine and i are so deeply knowledgeable. romaine: you should have heard the conversation yesterday. jon: give me some insight. romaine: it was scintillating. tom: what is fascinating to me is how guys like you always go away from canaan sterling and the other stars and say, in the middle of the field, trip e.a. -- trip ear, a lot of people say he is really key. jon: i would rather talk about italy's win. you know the secret in the ferro household, when we are very pro italy. romaine: i thing i've heard. jon: i was off yesterday afternoon, but paul sweeney sent me and email, how do you make

the decision? is it italy or england? when your father is italian growing up, that is just an expectation you put on the blue jersey. tom: you got to root for italy for your father. jon: coming up, rich michigan -- coming up, rick mishkin. on tv and radio, this is bloomberg. ♪ ritika: with the first word news, i'm ritika gupta. the president of haiti reportedly has been assassinated and what was described as a raid on his home by a group of attackers. according to the associated press, he was shot and killed, and his wife was wounded. the interim prime minister said some of the attackers were speaking spanish. there has been growing public anger in haiti over his attempt to hold onto power and rewrite the constitution. there are multiple reports that

japan is preferring to declare a new state of emergency in tokyo. that would mean the summer olympics would be held without spectators. earlier today, tokyo reported them most new coronavirus cases since may 13. president biden will take on the rapidly growing threat of ransomware against companies and local institutions. over the weekend, there was an attack blamed on russian hackers that affect more than 1000 businesses with victims at least 17 countries. the president will meet with agency leaders today to discuss administration strategies. the white house calls it a national security priority. the european union has raised the outlook for the region's economy. the forecast for this year was boosted from 4.3% to 4.8%. that was accompanied by a warning of a higher risk of inflation taking hold because of increased demand. shares of fintech company wise rose as they began direct listing on the london stock exchange. the money transfer company

opened at a price that gave it a market cap of almost $11 billion. wise is following u.s. tech companies i offering existing shareholders extra voting rights. 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. ♪

>> people always introduce me as a former police captain, but the uniqueness of this moment, it

may be at a time for such as this. i was assaulted by police officers. i said, why not me? i became a police officer to understand crime, and i also understand police abuse, and i know how we can turn around not only new york, but america. we can turn this country and the city around. jon: eric adams named winner of the new york city democratic mayoral primary, speaking on cbs just moments ago. more on that in just a moment. good morning. let's get you some price action. 4342 on the s&p. up 0.2% on the is and be come up 90 points now on the nasdaq 100, advancing 0.6%. yields coming in three basis points lower. having a little look at the one 20's, maybe. tom: there's been a continued move here.

this is a constructive grind. is it a melt up? there it is moments ago, seconds ago. how about that? 109 bps on the twos-tens spread. it is just stunning. jon: it is a sizable correction. what is outperforming in the equity market? it is the nasdaq, up by 0.6%. tom: abramowicz on a three week sabbatical. shelly banjo hasn't taken time off since time began. let me get right to it. there's got to be a recount if there's a 1% difference. in mississippi or montana, there's a recount, right? shelly: so we still don't have real concessions from the other two top candidates. garcia did not say anything last night after eric adams was

called the winner or projected winner by the ap, and wiley came out with a half statement saying i think my supporters -- i think my supporters, but let's see what is happening next. jon: it is too early to ask what the messages that new york city has sent to progressives? shelly: i don't think it is too early because you saw the top two both with extremely moderate viewpoints. we want to get crime, public safety, and we want to get quality-of-life issues back in new york. a mayor who can govern and get stuff done rather than this kind of ideological vision that we have seen dominate city hall for the last eight years. so yes, my wiley, who was the progressive candidate, did have quite a big showing, but clearly it wasn't enough because not only did she not get the first choice votes, but kathryn garcia was the one who got a lot of the second, third, fourth, and fifth choice votes as well.

jon: let's talk policy and what needs to get done. governor cuomo with a shocking statistic over the weekend. more people in new york state were shot then died of covid. there's two stories there, the success on tackling covid after this vaccine, but also the shootings in this state, in this city as well. just how much needs to be done? shelly: overall crime in general in new york is still down from historic highs decades ago, so this is not the 1970's, as much as people want you to believe it. but shootings are up and continue to be up. governor cuomo called it a disaster emergency to unlock some funds. eric adams has now been elected on the senior issue of crime, so if he does not do some thing about it, it is going to look quite poorly on this campaign promises. romaine: obviously, cuomo has his own agenda. i am curious about the breakdown of how this election shook out

because we talk about the embrace of eric adams and the people, at least the districts we know that voted for him, was much different than the folks who voted for kathryn garcia, and they did seem to be voting for two separate things. shelly: you look at all of manhattan, except for harlem. it was all kathryn garcia land. if you look at the inner burrows of brooklyn, that was also kathryn garcia. where you saw adams build real coalitions around the city in staten island, in brooklyn, and harlem, so there is definitely a divide from an income perspective, but you talk a lot of those folks who ranked adams second because they were on that same vision. clean up the city so we can get it back working again. romaine: and i think perspective is the key word here. i think a lot of people in the city look at it in different ways, and hopefully adams will do a little bit to address the crime and make it safer to go back below 59th street once

again. i am curious on the progressive question here, the idea that the city wanted someone who was a little bit more of a taskmaster, someone a little bit more moderate. when you get below the mayor itself and look at brad lander getting the comptroller position, alvin bragg getting the manhattan da position, these are definitely tie-dyed progressive here. i am wondering what message does that send come of that voters were willing to go for progressives at that level, but not necessarily at the mayoral level? shelly: right, and adams is going to be nothing if not interesting because not only has he made these grand promises, but he is, as you mentioned, going up against and having to deal with and build coalitions with is probably going to be the most progressive city council in history. probably for the first time, a majority female, and most diverse, as well as a progressive public advocate, progressive comptroller, progressive da. so it is going to be tussles between those two groups, and

they're going to have to figure out a way forward together. tom: what is the relationship of this former captain of the new york police department and his brethren, the nypd? do we know? shelly: that i think is going to be the most interesting thing. he has this aura of being this cop, but for his 22 years there, he was a -- he stirred a lot of controversy there. one promise he has made is i am going to bring aboard the first fema police chief which is going to be interesting to see if he's going to bring someone from inside the force or outside the force, and maybe even outside new york city. so how he deals with the police and carries out those promises, he has talked a big game. tom: can you not be a stranger? do we just have to see you during an election? shelly: anytime. jon: shelley also has to have a disciplinary role within the bureau as well. we would like for you to come

back on a daily basis. that would be nice. shelly banjo, bloomberg bureau chief in new york city. tom: if they are out of pretzels -- jon: i am talking about different disciplinary measures. your bond market, yields are in three basis points. we have a bid in the bond market and an outperformance for big x. angst down about 0.75 percent on bank of america today. more payments to all potentially for financials, with the bid back in the bond market. romaine: that is going to have a huge ramification for a lot of those trades that were tied to those yields. jon: 4342 on the s&p 500. outperformance on nasdaq futures , advancing 0.6%. that debate that we started the year with, what part of the equity market do you want to own, and the debate within the debate, which is if you want to own the cyclicals, for how long? is it a durable trade for a long period of time or a reopening trade?

tom: imagine that debate as the earnings come in. jon: kicking off with j.p. morgan july 13. heard on bloomberg radio, seen on bloomberg tv, your equity market advancing. from new york, this is bloomberg. ♪

jonathan: live from new york city for our audience worldwide on tv and radio this is "bloomberg surveillance." alongside tom keene i'm jonathan ferro. lisa abramowicz is not in crete. tom: i found out the gulfstream does not get there. we do not know where she is. jonathan: with us until then, i believe romaine bostick or made with us this morning. 4440 on the s&p 500. on the nasdaq, almost 91. are we really reducing trillions of dollars of equity calls down to what happens in the bond market?

is all about this? yields are breaking down another four basis points. we are starting down the barrel of the 1.20's on the 10 year. the curve is flatter, your yields lower. tom: in the last hour israel break down. we have seen an amendment in the bond market. jonathan: this tease us up -- this tees us up for tuesday morning. the reason i say is because anything jp morgan can deliver, can say about the future that will deliver a sustainable rally. romaine: i do not know about the future. when you look at some of the expectations for the double-digit earnings growth, not only for the second quarter and the third quarter, but there was the idea they would sustain

that deeper into this year and into next year. right now the expectations are for negative growth. that will turn negative by q4. really yields have been the traffic signal for a lot of investors. go back to late march or late may and the very beginning of june when you had the kbw bank index at record highs and a lot of people were changing the narrative. that yield differential was going to be the real tailwind for a lot of these banks. when you look at the flaps we see in yields, that 1.30 we have on the screen, that is an astonishing number, a number that is broken down over the last 30 minutes. jonathan: 1.3012. down almost five basis points. tom: this is a movable target. it will come up soft and hard. should we be surprised when someone like jan hatzius at goldman sachs says we will go

below 3% and others looking at gdp under 2%? jonathan: that is the moment we are in. that is the debate. what is driving this market? it is clearly laid of -- it is clearly rate of change in not levels. the ism came in at 60. as you point out about jan hatzius, you're looking at not the growth this year but the deceleration into next year. romaine: what has been the change when we went from talking about 2% yields on the 10 year to now talking about sub 1% on nominal yield. jonathan: the emphasis of the federal reserve. the emphasis of the federal reserve has shifted. we have gone away from focusing on the labor market. it is up to the federal reserve to say whether this is reality. the perceived reality of the federal reserve's we have had an emphasis shift away from a focus

on the labor market and the slack that remains towards a risk management position. i think a lot of people over last month have conflated a change in the balance of risk at the federal reserve with a shift in the reaction function. most vet officials would tell you there has been no shift in the reaction function on this federal reserve whatsoever. tom: it is a new theory to say the least. joining us now is the for more -- is the former of the federal reserve system, frederic mishkin is at columbia university. everything he is ever written has paid great respect to markets. frederic mishkin, u.n. peter hooper talked about -- you and peter hooper talked about a monetary policy, a phillips curve that was hibernating. is our traditional monetary policy hibernating and someday

we will get back to it or are we moving on to some form of new paradigm? frederic: i think you're right that we are hibernating. the fit may well be the hide the curve. one is they have gone to an average inflation target think is a good thing, but have not defined it well enough. that is a problem. the other is they basically upset the phillips curve is not something they're worried about. on the other hand they will find out it is hibernating and there is an issue. i think the fed will end up doing what it has to do but it may be late. i think they will be mugged by reality. unfortunately they may be too

complacent about the fact the economy is running very hot and inflation will be less temporary than they think it is. it is true there is a supply shock, which is temporary. the real reality is demand has jumped a lot because of the expansion of fiscal policy and pent-up demand because most americans are financially much better off than they were before the pandemic but have not been able to spend. jonathan: the data of the american economy over the last seven months has improved, with the exception of the participation rate in the labor market. does that complicate things for the fed that this participation rate has flattened out? frederic: it is a surprise from what typically happened before the pandemic. we had a situation where a lot of people are wondering whether they want to go back to work after the shift in terms of

work-at-home. it does complicate things in terms of deciding how tight the labor market is. i think the labor market is tighter than it used to be. it may be somewhat higher in this case. it has complicated things, but not in a way they cannot figure out. a key issue is the central bank should never take i often inflation. inflation has very -- should never take it eye off of inflation. inflation has been very high. if they're going to move they need to move fast. romaine: are they too late? frederic: there is some concern about deja vu all over again in terms of the 1960's again when the fed was in a very similar situation. very accommodating monetary policy with expansive fiscal

policy. i do not think we are going back to the 1960's but there behind the curve. it will be more costly for them to get inflation under control. that adds to the fact they've not manage their monetary policy as well as they could and inflation expectations may not be accurate as well as they should be. tom: i want to go back to the mathematics of frederic mishkin, at the mathematics describes the path of putting the genie back in the bottle. how do we put the fiscal gd back in the bottle? -- the fiscal genie back in the bottle? frederic: i do not know if we can. the buy-in bill that was passed -- the biden bill that was passed was too large, i think it was a bad bill. i think they should have had more contingency in terms of the

$300 payment, which is creating some problems. there's no one in congress who is very serious about balancing the budget. republicans are happy to say let's not spend when the democrats are doing it. they certainly were not serious about getting fiscal policy under control during the trump era. we have a problem. jonathan: a final question from me. we just had a break of 1.30 on tens. your lope the session is 1.2996. -- you are low of the session is 1.2996. what does the bond market tell you? frederic: i think there is more potential for problems in terms of inflation in the bond market. i hope the bond market is right

in the fed's right that inflation will not be a problem. i think the balance of risk is one where there is much more danger. one of the things i worry about is complacency in general, not just in terms of the bond market , but also the stock market. that could be a problem in the not too distant future. jonathan: good to catch up. frederic mishkin of columbia university. your yield on the 10 year, 1.3046. coming up, bob michele together with priya misra on your bond market with a big bid. yields lower four basis points. tom: let me ask the questions with the banking of the best headline system in the world. do we have a why for this intraday move? jonathan: the answer to that is simple. no.

you could come up with current story. more broadly there is a narrative for a 10 year yield that breaks 1.30. romaine: piercing another headline cross. we did break -- you are seeing another headline cross. we did rate just below the 1.30 level. 1.2 996. tom: four basis points. romaine: bloomberg surveillance. the second-best show. jonathan: we should put that. tom: the open is the best show. jonathan: remade will slowly get -- romaine bostick will slowly get that as well. it starts in the bond market and that it is risk to equities. nasdaq futures up 90, we advance .6%. tom: this is important. there is a partition in the vix.

the vix is supposed to be 15 on its way to 14, instead 16.42. jonathan: from new york city on radio and tv, alongside tom keene, i'm jonathan ferro together with romaine bostick. who said summer trading was boring? this is bloomberg. ritika: with the first word news, i'm ritika gupta. the president of haiti has been assassinated. the country's interim prime minister say gunmen killed the president at his private residence and wounded his wife. some of the attackers were said to have been speaking in spanish. when parliamentary terms expired without elections being held -- bided administration officials have spoken to saudi arabia and the uae about their standoff over oil. oil prices rose after opec

members cannot reach a deal on pumping more crude. hurricane elsa has weakened to a tropical storm in the gulf of mexico and is expected to make landfall north of tampa. the storms top winds reached 70 miles per hour. the concern is elsa could push a dangerous storm surge into tampa bay. in new york city former police officer eric adams has one the mayoral primary. that makes the brooklyn borough president the overwhelming favorite to be elected mayor in november. he held a former sanitation commissioner kathryn garcia by 1% in the right choice voting. the world's richest person just got richer. jeff bezos's fortune reached $211 billion after amazon fortune rose 4.7%. it was boosted that it would share a cloud computing contract with microsoft. all of this according to the bloomberg billionaires index. global news 24 hours a day, on air and on quicktake by

bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. i am ritika gupta. this is bloomberg. ♪

>> we have gotten a positive reaction so we are hoping --

things are going well. teams working hard, our team is working hard. we have a strategy we have developed and now we will see how hbo max does and hbo over the next year, how we do at discovery plus and we will see if we can come up with something. tom: after they get there they take a test and then there is a 20 mile hike. mr. zaslav of discovery, their chief executive officer. this year sun valley is very different. our edward ludlow reports. i have no idea how he pulled the straw on this puppy. ed ludlow with bald mountain behind him. as you know because you ski it twice or three times every winter. there difficult black diamond runs and we have a bunch of billionaires and streaming. they are trying to get down fire

trail right now. how will they do that? how will they ski down the wars of streaming? ed: i talked to one executive that made the point this is the first time this group of brain trust ceos have been in person for 18 months and they have pent up energy and anxiety. a lot of the people in the room are his customers or his bankers or his investors. the way to get the true measure of somebody is at 6000 feet elevation in sun valley. tom: within sun valley is the idea the pandemic is over. netflix is doing this, discovery is doing that. what will you listen for here that will get done in six weeks? ed: the message behind the scenes and on the record is this is all business. the pandemic is over despite the restrictions in place. the gm ceo told me she was all about business this week.

there is on the agenda talks about the global economy. there are health experts inspired about the ongoing pandemic. this is about deals. i asked one executive will we see deals. he made the point that for 35 years we have seen deals. why would this year be any different? what you get a -- what you get is a sense of postponement. in tnt we have seen such activity. more money has changed hands in that sector since 2000. there is stuff to be done. we know scale matters and we are watching names like viacom and cbs very closely. romaine: you bring up the idea so much money has been committed in the first six months of this year. it raises the question as to what types of deals are left or which ones would actually make sense. it seems like whatever consolidation could be done that has already been pursued.

i wonder if there's any sort of chatter among the bigger players there would be a need or a appetite for further consolidation? ed: the reason everyone is focused on discovery and warner is because the host of this event are advising on the deal. there is not much left out. viacom, cbs, comcast, nbc universal are under pressure. one of the most telling comments is that he is paying close attention to the amazon mgm deal because it shows scale does matter. the only way these guys can compete is if they scale up. he suggests amazon and apple have the cash. they have sharp elbows and they have switched up the industry. romaine: we will see if apple becomes a thing in the streaming wars as it has promised to be. is there talk at all about regulation at the idea that dreams of consolidation could run into a new administration and a new focus on size and scale? ed: i have asked and people say

we will see. the bided administered -- the biden administration has put energy back and antitrust. i asked sheryl sandberg of facebook if we will see facebook being more aggressive. she said nice to see you and did not comment. what people are focused on our deals that add value. the pandemic theme has been that content is king. it is not just traditional broadcasters. it is not just traditional media companies trying to get hold of these properties. tom: among the great and gifted, is there any humility about how big telecom butchered getting into content? is there any shred of humility? ed: you look back at the history of this conference, the deals that were born out of it. i'm thinking about aol, time

warner, the successes and lack of successes, disney and abc. the backslapping, the high are in full flow. the telecoms and execs feel like they are back. the question is will anything significant happened that changes how the district looks? i've not seen mr. bezos yet but i am sure he is someone everyone is keen to speak to. tom: he has a gorgeous view of a bike trail behind him. are you going one mile or five miles on the bike? ed: as you know, i mckeon by quest. i'm busy -- i am 18 bike list. i did's -- i am a keen bicyclist. i did see someone at 5:00 a.m. this morning. tom: in our world 5:00 a.m. is midday. ed ludlow with further reporting

from sun valley. i think it is what it is. guess what. this year is different. it could be really interesting. romaine: absolutely. you talk about the competition we have seen pickup for streaming because of the pandemic, even prior to the pandemic. interesting to see if they can facilitate some sort of consolidation because there is too many streaming channels. tom: don't you think so? your house is like my house, we are dying for new product. romaine: i think i spent more on streaming that i spent on medical bills. tom: it's true. let's get ready for the close. i've a nasdaq that will not come down. romaine: this'll be interesting. keep in mind we get the fitbit it at 2:00 washington time -- keep in mind we get the fed minutes at 2:00 washington time. starting to address the idea the fed is not quite as unified

messaging as they have been in the past. the idea the focus on unemployment had shifted back to inflation. if we get a read on what went on behind closed doors, that could determine where we go next. you're looking at a yield, 1.31 on the 10 year. we were below 1.3. you have a 10 year yield now negative one, that tells you how sentiment has shifted. tom: the end of july into august's may be where stagflation will show up in the zeitgeist more. that means nasdaq, the rest of them, they do better. romaine: earlier this year we were talking about stagflation. people or dismissive. now you are starting to look at this economic data come out, the stickiness of some of these transitory inflation members -- transitory inflation measures we were told were temporary. tom: i beef with ed ludlow --

iva feed with ed ludlow. he just got on a bike. ed ludlow will hopefully drop by and have more for us. the former vice chairman of the fed with david westin at 12:00. good morning. ♪

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jonathan: from new york city for our audience worldwide, good morning, good morning. equity futures advanced but the 10 year yield gets the headline.

a break of 1.30. the countdown to the open starts now. >> everything you need to get set for the start of u.s. trading. this is "bloomberg: the open" with jonathan ferro. ♪ jonathan: from new york, we begin with the big issue. where did all the bond bears go? >> rates have been rallying and flattening. >> 40 basis point move lower is no joke. >> the bond market has me scratching my head the most. >> people thought rates would start rising further. >> the bond market is starting to focus on a slow down. >> is reassessing how confident it is in the growth outlook. >> this is the bond market telling you we are transitioning out of the brought reflationary regime. >>