>> we are going to have another year or two above trend growth, and i think that is something we should be pretty encouraged about. >> this a lot of negative pressure. one of the things that could alleviate that would be another season. >> we are looking at nominal and real yields and recognize that we are truly in uncharted territory >> i think it is really about the fed getting the economy to full employment. >> even with the growth we have seen, real wages are still below what they were in the 1970's. >> this is "bloomberg surveillance" with tom keene, jonathan ferro, and lisa abramowicz. jonathan: get set for a busy week. from new york city, for our audience worldwide, good morning. this is "bloomberg surveillance ," live on tv and radio. alongside tom keene and lisa abramowicz, i'm jonathan ferro. monday morning, good morning. down 13 on the s&p to 4347. tom: the data is really

interesting. we will have guests to give us some clarity. something has to give. i look at this data screen. you wonder what has to give. on much of the dollar, it is static. which way does the dollar cut? jonathan: tell me where this bond market cuts. yields come in another to basis points. lisa: i am struck by the contrast between the s&p estimates and the real yields that keep going more negative. this idea that we are projecting low growth ahead, and at the same time hearing about the highest rate of growth we have seen in decades. it does seem incoherent on some level. at one point is this just free money liquidity tipping the scales? jonathan: we will find that. we get cpi, bank totals, and chair powell testifying. tom: it is a two day testimony. you've got to believe they will be reaffirmed, particularly

after the lagarde interview with francine lacqua this weekend. jonathan: michelle meyer expecting that deficits to come from jay powell. let's turn to the price action this monday. three weeks of gains on the s&p. all-time highs into monday. we are down 12, -0.3% mentioned the euro. christine lagarde teeing us up for a change in 10 days time at the ecb meeting. euro-dollar, -0.2%. lisa: it is going to be a busy week for markets and politically. it is also a basey week when it comes to health care concerns and the covid pandemic. we saw the numbers in the u.s. rise to the highest levels since march as the delta variant increases. today, the u.k. prime minister boris johnson is expected to confirm the end to certain covid restrictions starting on july 19. this really highlights to me

the inconsistency across countries and regions. i say this after traveling in europe. whether people wore masks, didn't wear masks, it is raising questions about what is prudent and possible at this point. the u.s. selling $30 billion of 10 year notes. i want to see the technicals here. jon will be watching this closely, as he always does. our people feeling like perhaps we have gotten to peak growth concerns? or is this the new normal? are we reverting back to a slow growth, slow inflation narrative with the fed continuing to pump the prime? today, treasury secretary janet yellen attending that eurogroup meeting in brussels. we did hear that the european union does plan to postpone that digital levee.

how much does this push the needle, and how much power does treasury secretary yellen have given the fact that congress is all over the map in what they will or will not permit? jonathan: we are about to find out. a reminder of something that jeff gundlach over at double line would say. i think it is really important. what has changed? at the data changed or the way that market participants behave to the data changed even more so? tom: we are in a massive bull market. to bring that in the shock of what we have done office pandemic in the equity markets and how it dovetails back to bonds, i think all of our heads are spinning. i don't think guesstimates is what we've got forward. we heard that with michelle meyer. jonathan: michael dardenjonathan: joint -- michael darda joins us now, am km holdings market strategist -- mkm holdings market strategist.

michael: i think the credit market situation is very interesting and actually sort of strange. with the rally in treasuries, there's a big focus on peak growth, and the concerns about global growth, whether it is china slowing or the variants hitting largely unvaccinated our kits, there's a story line there, no doubt about it. consider the fact that when the 10 year yield peaked above 1.70% in march, more than 70% of the decline through last week was driven by real interest rates, not falling inflation expectations. that was less than 30% of it. we have to ask ourselves, is falling real rates a contractionary phenomenon related to weakening growth prospects, or is it due to something else like a massive wall of liquidity? that is an important part of the story here. there's some technical aspects to this with a run down in the

treasury general account. but the bottom line here is there's been no we getting in the high-yield market since bond yields peaked on the treasury side, and metals prices are up on net. if you look back to the last cycle when we saw sustained declines in treasury yields, we were getting blowouts in credit risk spreads and slumps in metal prices. the fact that that is not happening this time tells me there's a liquidity money story with panic about second derivative. tom: you are reading my mind. let's go to the algebra. we can only do this with michael darda. michael has led with intelligent use of theory. the theory is broken. jon hicks would go, really? lm equals ki times hi. if the algebra broken? michael: i don't think the

algebra is broken. a big surge of liquidity hitting the system, the fed has been static, but the run in the treasury general account has been recirculated into the treasury market. we can see it in broad money measures at double-digit annualized rates going into the spring, and the fact that you've got real rates falling, but risky credit holding up. metals prices flattened a bit. there's no slump in broad indexes of industrial metals. that tells me this is an lm curve situation, and that is not a contractionary phenomenon. so i think the focus here has unfortunately been on the is curve, some fear that credit demand is weakening or that there is some kind of positive savings shock. that was last year's story. it is time to get over it. tom: i can't say enough the

foundational idea there on the raging debate that is ism. lisa: there's a question about something has to give. what then? are you saying treasury yields have to rise materially? because if this situation continues, couldn't they persist where they are in tandem with otherwise robust conditions elsewhere? michael: no doubt about it. we ask ourselves why is the equity market at current levels the answer is high profits, high liquidity, and very low discount rates. so the question is, what is the threat to the equity market? it would be one of those variables turning. so if we can sustain these liquidity levels and high profitability at low discount rates, there's no profit to the equity market. but instead we have real rates below equilibrium levels persisting in the next year,

even if it is growth. the second derivative stuff has gone too far. for inflation to persist, we need above trend growth to continue. with that, if we did inflation persistence, i think we are going to have an outlook that is putting upward pressure on treasury yields, and that is going to hurt valuations. but you are exactly right with that question. jonathan: let's wrap it up. cpi tomorrow morning, bank earnings, chairman powell. how relevant is any of that given everything you have said in the last eight minutes? michael: some of these super core measures of inflation, if we think about the temporary transitory base effect excuses for inflation or the super dovish forecasts, those are relying on these median and trimmed mean measures of core inflation to stay pretty well anchored. so as we get new cpi data, as we get the pce deflator in the

weeks ahead, take a look at what is happening with median and mean numbers. if those are pushing higher next year, than the bottom really falls out of this temporary/transitory story. jonathan: michael darda, good to catch up. tom: on radio, it is really hard to capture this. darda is set up at the vineyard with the surf words. could you see me out there surfing? jonathan: i could see that. are you thinking of retiring? are you having a think about it? tom: darda's living large out there on the vineyard. do you think those surfboards have moved in the last three years? jonathan: i think they are there for show, tom. [laughter] what do you make of the perspective from michael? lisa: even though liquidity can't offset robust growth, i

love the idea that second derivative stuff has gone too far. people overthinking themselves, which i relate to. but this is going to be the debate. why are real yields so negative if you keep talking about it's more than 9% gdp right now in the united states. it does not seem coherent, and yet here we are. jonathan: how relevant is cpi tomorrow morning? lisa: honestly, i think it is relevant, but at the same time, it doesn't really give any insight into transitory or not. jonathan: really not much consensus here on so many important topics. from new york city this morning, good morning. alongside tom keene and lisa abramowicz, i'm jonathan ferro. tom: could you bring my wall color -- my walker over? [laughter] jonathan: tk, you know i would prop you up for the rest of my life. very happy to continue doing that. this is bloomberg. ♪ ritika: with the first word

news, i'm ritika gupta. the european union will postpone its push for a digital tax and focus on a broader deal for a global minimum tax with the world's largest economies. several european countries had already implemented a so-called gentle services tax aimed at large tech companies suggest facebook and google. the u.s. was one of the countries strongly opposed to that tax. in cuba, state-run media has acknowledged the outbreak of antigovernment demonstrations. cubans face growing hunger after its economy was hit by a slump in tourist revenue. the government blames the protests on u.s. agents and what it called neoliberal opponents. billionaire richard ranson and his virgin galactic company -- richard branson and his virgin galactic company have boosted their plan to begin commercial flights into space next year. they reached an altitude of more than 53 miles above the earth

before the plane glided back down. a wildfire is pushing california towards the brink of blackouts. the blaze is raging uncontrollably across southern oregon. it has not out three electrical lines critical to the stability of grids in the western u.s. nevada faces a power emergency. 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. ♪

♪ >> now is not the right time to talk about exit strategy because we are still forcefully

delivering under these exceptional circumstances using exceptional tools, which is the pandemic emergency purchase program, which i expect to last at least until march and possibly to transition into the new format after march. jonathan: the little bit at the end that we still need to work out. christine lagarde, the european central bank president, catching up with francine lacqua over the weekend. from new york city this morning, good morning. alongside tom keene and lisa abramowicz, i'm jonathan ferro. 1.34% on tens. the nasdaq 100 is firmer by 30 points, out by 0.2 percent into positive territory. your treasury market -- your equity market on the s&p is down to 4350. tom: a lot of good information coming up that will no doubt

move the markets this week. it is a set of issues always in washington, and this bridge i -- this july is particularly even for. we talked about what we will hear from secretary yellen. emily wilkins joins us this morning on separate matters with bloomberg government. we are all owning up again on the caribbean, haiti, and suddenly yesterday, cuba. is your washington surprised that again we look at the caribbean? emily: everyone in washington is paying close attention to what is going on in cuba right now. one thing that really strikes me from the u.s. politics perspective of this is how republicans made huge gains with the cuban population in miami, and florida during the 2020 election. that was an area where democrats did not do well. you did not see president biden get a lot of votes down there.

it was a really strong for a republican. the reason is that republicans were able to really link democrats to communists and socialists, and try to talk the population down there anyway that relates to the cuban government. i've already heard from strategists saying they will be using similar strategies again this year, and to have this revolution, to have this sort of uprising in the streets i think really speaks to how strong these feelings are against cuba's current government. jonathan: how does senator mcconnell of kentucky and mr. rubio from florida, how do they influence the biden adminstration debate and discussion? emily: to a certain extent, the administration is already paying close attention to what is going on and what, if any, the u.s. role needs to be. at this point, foreign policy's stuff is usually pretty concentrated in the white house as far as what they might move on. there might be an opportunity

for some legislation to come from the senate, but let's be honest, there's kind of a question of what, if anything, the u.s. senators can contribute at this point to what is going on in cuba. lisa: let's talk about some of those domestic issues. after a two-week recess, they are coming back. this questions about this for trillion dollar agenda that joe biden has. how feasible is it at this point to get through, with the backdrop of a lot of people expecting at least $1 trillion to sail through both sides of the house. emily: at this point, everyone is waiting on senator bernie sanders, chair of the budget committee, who is working to write out the details of that for trillion dollar package. we don't even know at this point if it will be for trillion dollars -- will be $4 trillion.

we think something closer to $2 trillion or $3 trillion, closer to president biden's original. there are lots of priorities that the progressive numbers of the party are pushing for in this bill, a really long list of items relating to climate change, but the more narrow this bill is going to become of the fewer things that are going to be able to get into it. lisa: taking a look at this from markets' perspective, people earlier in the year were talking about incredible fiscal boost was going to come, the likes of which we have not seen since the new deal. that has been pared back, and here we are talking about may be $1 trillion deal, and an ambitious $4 trillion that may be pie-in-the-sky. do you think it is realistic that basically, earlier expectations had been thrown out the window, and people really need to lower their expectations about what washington will actually get done?

emily: democrats are going to push this is a big stimulus that can really get done. you will wind up hearing that message regardless of the size of this legislation. it really comes down to the moderate democratic party and the progressive part of the party. where are those lines drawn. where it is the scale between the two of them. those are questions we have had after the most recent 2020 election, and we are really watching this debate because that will kind of show where the balance of power is within the democratic party, and who has more momentum in getting their priorities done. tom: the most important thing in washington today is the three south -- is at 3000 whitehaven street northwest, the italian embassy. what does the social calendar look like at the italian embassy today in washington, d.c.? emily: d.c. tends to be a very multicultural city. i was watching the game from a

bar where half of the people from england. obviously a great day for the italian fans. i'm sure they will be many festivities going forward. i know a lot of americans who are normally not fans of soccer who were absolutely watching the game yesterday. jonathan: i think they are probably taking the day off. tom: she nailed that. jonathan: as they should. bloomberg's emily wilkins. tom, we will let that comment slide. pretend it never happened. tom: i thought it was me and lisa sullivan today. -- lisa so low today. jonathan: yeah, i wonder why i'm here. tom: is today a bank holiday in england? jonathan: i think a lot of people took the day. i think a lot of companies prepared for it, with the idea that people would come in a little bit later or not coming at all. lisa is out next week, too, tom. tom: i did not know that. jonathan: you thought you would

shadow congress? lisa: that's the national way. jonathan: are you returning to your constituency next week? where the market bears hang out traditionally in the summer. lisa: i'm actually going to the adirondacks. jonathan: there you go. that's where they go for a week. lisa's constituents. tom: wait. she did not go to crete, now not going to the lake. jonathan: thank you, lisa. the s&p just off all-time highs. this monday morning for you, as we set things up for tuesday, jp morgan numbers really kicking off. then we going to chairman powell's testimony. guilds come into 1.342 7%. big conversation about what is next at the ecb. that meeting takes place in 10 days. i had of that, the euro weaker by 0.25%. crude is $73.50, down by 1.42%.

alongside tom keene and lisa abramowicz, i'm jonathan ferro. coming up next, padhraic garvey, the ing head of global debt and rates strategy. this is bloomberg. ♪ ♪

♪ jonathan: live from new york city come on tv and radio, here's the price action this monday morning. equity futures, 4352. down -0.2%. the story at the end of last week was a really nice lift on the banks to close out the week. this morning, could reverse some of that. the nasdaq up 0.2% because of what is happening in the bond market. switch up the board and get to twos tens, 30's. nominal yields coming in on the 10 year to 1.3443%. the banks still 7.5%, 8% off the highs of the previous month. a lot of this is going to come down to the earnings, but also where this bond market goes. looking to get this bond market back to 1.75%.

looking for a continuation of upside surprises on both growth and inflation. switch up the board. we will have a look at the chart and explain it for our audience on radio as well. this is the supplies index for the u.s. economy. so where did we go relative to expectations? we have seen a series of downside surprises, and we seem to be back in and around zero. if you want to see those upside surprises again to get us back to 1.75%, in the words of lisa shalett morgan stanley, we've got some work to do. tom: i am really thrilled you bring up lisa shalett. the morgan stanley output has been razor-sharp. she has been heated in this market. michael wilson said, given the back and forth and when did you get in, you've got to participate. jonathan: mike wilson also making the point that the index level correction is still in front of us. we are still trying to work things out. we've got this rotation going

on. that was the start of the year, and then got this rolling correction. we are still working our way through it. tom: it is like lisa abramowicz's vacation schedule. [laughter] lisa: we can discuss that later. i expected this. i knew i would be talking about my sabbatical for the next three years. jonathan: welcome back. lisa: thanks. jonathan: we will talk more about it as the week progresses. let's get more movers. here's romain. romaine: the biggest fall you move on the day is virgin galactic. richard branson of course having that successful flight to the edge of space. once you get beyond the cyclical, there is a bit -- the spectacle, there is a business case that was bolstered. richard branson himself talked about the backlog of orders out there. the idea that once they get through the summer, they will start taking new orders, and those are going to be priced above where that current order was, which was right around $250,000 for a flight. so there is a revenue case to be

made for what happened. it will be interesting to see whether that revenue case matches the valuations. right now the valuation of virgin galactic is sitting around $12 billion. those shares up 6% in the premarket. the other big mover of the morning's amc. that is to the downside, down by about 4% despite a relatively good weekend at the box office. the latest marvel movie "black widow" had about $80 billion -- about $80 million at the box office and another $80 million overseas. that is good for the theaters, also good for disney. comcast also in the news. the olympics are starting soon, and there's an expectation that comcast and its peacock service should get a nice boost from that. those shares unch on the day. disney shares di -- didi

shares down on the day. a lot of question about these companies and whether they list in the u.s. tom: again, earnings complete coverage on radio and television tomorrow. padhraic garvey with us right now of ing, head of global debt and rates strategy. what is your biggest mystery right now? if i look at fixed income and credit yield, what is your biggest mystery? padhraic: the biggest mystery is why yields are so low. i get that there's an excess of demand for bonds, and the question is why. is it because there's a lot of captive buyers out there, or because this is a very uncertain future beyond the next couple of

years? i think it is a bit of both. i have a lot of respect for the bond with a discount function where real yields are trading. so that is a mystery. but where we go to is anybody's guess. i am guessing that those real yields will become less negative going forward. tom: yields will become less negative. the magnitude of a proposed move in the 10 year real yield. scope out the amount of move we would see their from a -0.96%. padhraic: it is -100 basis points. if the u.s. economy is going to get back to decent shape, you would have to expect a real yield of zero. that is not too much to ask.

and we are talking about a 10 year journey. the 10 year should be trading much closer to zero then it is. if you remember back in february, march of this year, we had a good move higher. got to get a 60, -70 basis points. it looked like we were heading there, and we have fallen since. jonathan: you've got to have trim and disrespect for a market, regardless of what you think it should be trading on. what do you think it should be trading on? padhraic: i think it is trading on a genuine fear, to be honest. i think there is an element of uncertainty with regards to where we are going to be in 2023, 2024.

i think that is part of it. the other issue is that there is -- all the way from the fed to international players, to that crazy demand for inflation for years. of course, if you buy linkers, it pushes real yields, and that is why we are where we are. lisa: you mentioned a legitimate fear that bonds are trading on that perhaps we are getting some sort of slowdown, which people have been representing. on the other hand, it is just a liquidity story. at the same time you have this inconsistency and credit markets which your not showing eddie -- not showing any legitimate fear of a slow down. you have a sub 2% investment grade all in yield, which is in

defiance of history. at what point do you have to make a call? is this legitimate fear or simply a story of liquidity. padhraic: it is absolutely one of the key points right now. this intersection has been quite unusual in the sense that the classic high yields area hasn't seen big defaults. it has been the biggest outperformer this year, and in the past week or so when treasuries rallied, corporate spreads didn't do well off a lot , so that is really reassuring. it doesn't solve the puzzle because i think one of the issues we have is that there is still a lot of -- attached to that. but i think it goes back to the fed story. whether it is corporate,

inflation high yields, markets have done well this year. there's a lot of happy buyers out there. so far it has been a winning trade. that carry trade where you pick up a bit of yield that does nothing, that has been a winner over the past few weeks because the market has actually rallied. jonathan: we got to leave it there. get to catch up. padhraic garvey, ing global head of debt rates and strategy. here's the mover of the morning, away from the likes of didi. virgin galactic shares up 5% after that successful flight over the weekend, richard branson on board. tom: thank you to our team for doing wonderful coverage on sunday as well. we will drive forward a july 20, our coverage of what mr. basis will do, and i think the amount of distance into the air needs to be put into perspective. we've got 53 miles, 62 miles.

alum shepard in 1961 was the launch of about 116 miles. it is space, but these are three different approaches. jonathan: have they been to space? what defines going to space? tom: there is a line. i don't have the name in front of me. but there is a level -- it is a common scientific theory. but mr. bezos makes clear he is going into space, what is defined physically as into space. jonathan: lisa come hype -- lisa, a business proposition. [laughter] lisa: the control room is pointing out is 50 miles above that line crossing into space, so that counts. it is amazing to about what kind of industry space tourism would

be. some say it is about $4 billion going out to 2030, which isn't that much when you start thinking about how much tickets are going to, but you have to start wondering, what is the proposition? is it just to go up and float around, people moonlighting as scientists? what is it, tom? tom: i think it is a hat trick of trips. we got mr. branson moving, mr. basis moving, and from crete to deborah lake, lisa is doing this for thousand 970 miles? i will beef you -- i believe she will be weightless. [laughter] lisa: i've got you, jon. jonathan: virgin galactic doing nicely this morning. alongside tom keene and lisa abramowicz, i'm jonathan ferro. 4353 on s&p. this is bloomberg. ♪

ritika: with the first word news, i'm ritika gupta. in haiti, a new twist in the investigation into who killed the president. a man accused of flying into haiti on a private jet and working with the suspects in the assassination. the man was identified. dr. and they've how she says backs and rate -- says vaccination rates are lagging in southern and midwestern states, but the round of morning talk shows to reinforce the administration's position that the vaccines are safe. this could be the biggest chair or death biggest jet order ever.

talks with airbus and boeing for 150 new single aisle planes. air france is looking to expand its supply of jets. disney's "black widow" scored the highest grossing debut for a film since the onset of the pandemic. the newest marvel picture took in $80 million in the u.s. and canadian business ticket sales. disney says it also generated $60 million paying $30 to watch it at home. 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. ♪

>> the united states, like other major economies, had made significant progress rolling out covid vaccines. but we know that the pandemic is far from under control in many parts of the world, especially in many lower income nations. as long as the virus continues to spread, we are all still left risk. jonathan: janet yellen, the u.s. treasury secretary. alongside tom keene and lisa abramowicz, i'm jonathan ferro. monday morning, here is the price action. down six on the s&p to 4354. outside of that, setting a tone to this market worldwide, the price action comes down. your tenure yield, 1.34 43 percent. yields down by a basis point or two. in the fx market, the euro negative by about 0.3%, down by 0.28%. that is a weaker euro. tom: an important meeting.

frame it versus the last meeting. this is not a snood fest -- a snood fest -- a snooze fest. [laughter] lisa: hold on a second, wait. . jonathan: i'll get there. tell me why thursday is important. lisa: it is not just the target, but that they are going to outline what comes after next march. the idea of yes, it is going to continue the bond mining -- bond buying until march, but what next? jonathan: i do think it is ridiculous because we have gone from lower than in close to two to present. if you see the bundesbank last week? having none of it. tom: mr. scholz today talking

about they are monitoring inflation. madame lagarde told francine lacqua the definition is symmetric. right now, always asymmetric is david wilson. what do we have? dave: what we have is the comparison between the s&p 500 and its 200 a moving average. it is above that indicator for more than a year. stephen sutton meyer at bank of america ok look and saw what happened historically when the s&p 500 stayed above the 200 day indicator for the entire first half. eat some 34 cases going back to the 1920's when that happened, and only 13 of them actually managed to stay above the moving average for the entire second, so you have the potential for some dollar weakness. tom: so i should go to cash?

dave: i am not going to tell you what to do, tom. tom: got it. thank you. anything else you would like to add to this? dave: the average is 13% higher. that is how much the s&p 500 was about this moving average because if you look friday, it was also 13% higher. that has kind of held up. that's the question of when things catch up between where the s&p 500 is now and what the trend has been over time. lisa: i was noticing in the "wall street journal" oracle this incredible x -- article this incredible x petition for profit increases. this is according to facts in question about whether this is a fair comparison. are any of the stock traders going to be looking at this comparison, or will this basically be phone out and it is

really going -- basically be thrown out and be more like 2019? dave: potential billy -- potentially the latter. what you have to remember is that for a lot of companies, a year ago earnings were depressed because of the coronavirus pandemic. that is really when it started to hit them. it's going to be a question perhaps of what does the second half look like, if a company has avoided making forecasts because they weren't sure how the pandemic was going to affect their business. those kinds of issues may dominate the landscape in terms of the reaction. if you look at our numbers in the last few quarters, you have seen 80% plus of companies in the s&p 500 eating estimates in terms of earnings, so there's that potential to happen again. if you look at the broader market, analysts aren't expecting that much in terms of

the s&p 500 through year end relative to where it is now that kind of fits in with the performance in moving average terms. tom: david wilson diving into three weeks of various insanity. surveillance correction right now. jon and i went to the wikipedia. the carmen line, karman. 62 miles, depending on the atmosphere. mars' karman line is different than ours. jonathan: for nasa, it is 50 miles to become an astronaut. tom: what is important here is mr. bezos and his team are approaching the carmen line where they go into space.

there is no lift. the algebra here, to great respect for our economics and finance that we take seriously here, that equation on radio, let me say for radio, it is the equilibrium point where the plane starts going down. you've got to worry about other things like orbit. so they go up, and they are not going into orbit. jonathan: some people very concerned about where the share price might be, so i will bring that to them. i think we were up a little more than 5% on virgin the lack this morning. i don't think it is going to move the dial here too much for bezos. jonathan: we are doing great, i promise you. lisa? lisa: i am just inking about the fact that people want to say they have been to space, and people really want to achieve their dreams. you spoke about -- you talk

about space tourism. what is the achievement they want? jonathan: the view of the planet. lisa: so that is what is going to count as getting to space. if you start to move space travel to a private endeavor, what that does with respect to oversight, with respect to the public aspect. i know i am bringing this to seriousness, but it is a really interesting issue that used to be the public's. dusty public-sector. -- the public sector. jonathan: this really does frustrate people. there's people that look at this and say we've got enough problem's on this planet right now, and these guys with a serious amount of money aren't doing enough. tom: what they would respond with is a layout of their cherries and what they have done over the years. i should point out that on a summer evening, a late summer night in july of the 1960's, as armstrong stepped on the moon, i was near tupper lake. jonathan: were you really? very cool.

lisa: it all comes full circle. jonathan: this show is making sense now, isn't it? [laughter] troy gay ascii -- troy gayeski skybridge will join us next. on radio come on tv, this is bloomberg. 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. lists and analysts in more than 120 countries.

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>> ever since we are seeing consumers go out and spend. they have cash on hand. >> there's a liquidity story that is being overlooked with the panic about second derivatives. >> we are looking at both those nominal and real yields and recognize that we truly are in uncharted territory. >> i think it is really about the fed getting the economy to full employment. we got a very strong cpi print that head of nerve -- that could unnerve the market. >> this is "bloomberg surveillance" with tom keene, jonathan ferro, and lisa abramowicz. tom: