>> i would argue the labor market is as tight, if not tighter, than any we have seen in decades. >> we are already in an economy that has seen peak growth on a quarter to quarter basis, and it is beginning to slow. >> we are seeing the fed move a little bit faster, little further to pull back on these purchases. >> the market has the view that if the fed starts hiking, they will not be able to get may rate hikes actually done. >> it will take a long time to realize that something fundamental has changed. >> this is "bloomberg surveillance" with tom keene, jonathan ferro, and lisa abramowicz. jonathan: 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. your equity market up 17 on the s&p, advancing 0.4%. we've had a look at 4400 over the last month or so on the s&p. the calls keep coming through.

4700 from oppenheimer in the last hour on this program. tom: that is a measured lift out, a measured amount of time. 5000 is a big figure for s&p 500. a dow equivalent to spx 5000 is just under dow 40,000. jonathan: thank you, tom. thanks for that value add. tom: but seriously, no one is framing out beyond q4, may december of next year -- maybe summer of next year. jonathan: we had a guest yesterday, stephen stanley of amherst pierpont, saying 4300. they are radically different calls, and both individuals are looking at exec lay the same economic data. tom: do you that into the markets, into the right market, where money is made and lost. it is a vision thing that "surveillance" is struggling with to the end of the summer, and i would say into autumn.

we've got to get through august, but how do you frame june of next year? if you are able coming -- if you are a bull, you go to spx 5000. jonathan: this is the road toward september. that's all august is. lisa: that's the issue. at what point do you have a world where you can look at and actually assess? the key metric here is inflation. people really wondering, and the dissidents you see on the side of a rate hike next year or three and half years is are we going to get a new inflationary regime, or are we going back to the old regime plus some? jonathan: tomorrow, vice chair clarida with a speech. payrolls friday. does he bring jackson hole alive again after governor brainard

poured some freezing cold water over it? tom: are you saying you need a trip out to jackson hole? jonathan: no, i won't be around for jackson hole. the s&p 500 futures up 0.4%. nobody needs to see that. yields higher by a basis point to -- buy a basis point. . euro-dollar positive. euro-dollar, $1.1885. lisa: that was kind of ominous, "i won't be around for that." you will be on vacation, not a serious thing. jonathan: no one took it that way. [laughter] lisa: let's move on. 10:00 a.m., we get u.s. june factory orders and durable goods orders. interesting to see the demand from factories. also, whether we start to see some of the inventories built up, whether orders continue to be strong. really a key measure on some of the supply chain disruptions. are they starting to ease intend them with what we saw in the ism

manufacturing survey? using a little bit, but still a good trajectory. throughout the day, we will get total vehicle sales. how much are they slowing because of a lack of inventory on dealership loss? this has been a theme. we hear that the road ahead will continue to be rocky. is there any sign of that rolling over? also, what if some of the sale prices like? this kept profits very high despite some of the shortages we have seen. at 3:45 p.m., president biden is planning to speak on vaccination throughout the country. interesting to see what he says about mask mandates, also trying to pressure the private sector to take a more active role in mandating vaccinations for access. it continues to be a mystery as to what the legality of a federal mandate really is. jonathan: really important stuff still ahead of us. thank you. we talked about the teams from -- the comments from the team

over at bmo on the bond market. this is the line from wells fargo on the economic data. "economic data continues to be in the eye of the beholder." anna han joins us now, wells fargo equities security strategist. what does it mean for an equity investor, the incoming data at the moment? anna: it can be interpreted sort of how you want to see the picture. what i mean by that is that some people look at the second my data, and you can be really concerned. is growth slowing down? is the amplitude of future gdp growth slowing down? will that extend the cycle? is that a concern, why real yields are pulling back because people have a concern about whether full employment can be reached sooner? on the other hand, there are a lot of right spots still in that i can my data that support the reflation trade. i think it depends -- that

economic data that support the reflation trade. i think it depends on which camp you are in. tom: i want to take it over to an even larger idea of magnitude. for the bulls out there in the equity market, what are the magnitudes that get you out to the emotion of spx 5000 or the emotion of dow 40,000? anna: those are big, beautiful round numbers, and people love those shiny numbers. i think what you really need to see which one is that when you have these kind of yields retreating, you see this kind of natural effect for equity growth, for equity earnings. on the other hand, that comes with the sort of ominous sign that growth is slowing down. but to get that yield, people may be reaching into equities. to really push equities, i think what has been driving and more recently is expectations of estimates. as we have gone through earnings season, you have seen corporates

very focused on what these input costs mean for margins and for the companies that are able to pass along that price in those margins can remain fast, you can see some price appreciation. i thing it is that upward expectation of estimate revisions we are really keeping an ion to get there. lisa: just to dig in a little bit more, you noted in your recent research that earnings estimate revisions continue to concern these sectors. so why does this not reflect the outperformance in these areas where you see growth surge ahead? anna: i think growth surges recently have been a bit of that moving nominal yields. what is interesting is that nominal yields move has been driven by real yields, but the inflation expectation at least in the 10-year has remained rather steady. so this gross trade has had a resurgence as yields pullback. the question for the value stocks, is this reflation going to be a concern? that uncertainty still weighs on

it, the additional risk premium. these value sectors are really what is pushing the estimate revisions, and if that continues and that expectations or these revisions can continue outpacing what investors want, i think you will see that eventually appreciation later down the road. jonathan: what leads to the downdraft? you end of the team are looking for 3850 on the s&p. what is the 3850 view? anna: coming into the year, we talked about low volatility defensive strategies, and what happened in the recent months. we recommended a tactical pivot because a pullback in yields could cause some of that volatility. for us right now, it is not necessarily our longer term view on reflation that has yet changed, but we like to say be careful of perception becoming reality.

once the market really starts to doubt the potential for reflation, the potential for growth, that can kind of spiral out of control. for us, the reason we remain cautious is we are seeing signs of concern, and that can really have a sort of negative and spreading effect amongst investors, so it will keep us a little more cautious and on our toes. lisa: we were pointing to retail investors as a potential swing trader when it came to certain big moves in equity markets. are they still players, or have they gone back to taking vacations and not dealing with their robinhood accounts? anna: i think they are definitely still a player and they may even be growing as we go several euros forward. however several years forward -- several years forward. however, i think the institutional side have been the bigger whales in the ocean here. a lot of the risk-taking or risk seeking was pulled back last month, given the additional concern about the potential for

full employment to be a bit further down the road, and as that risk ipo that wanes -- that risk appetite wanes, i think you will see the retail crowd sit down a little bit in the stands. jonathan: always good to hear from you. anna han, wells fargo equity strategist, looking for 3850 on the house and p 500, once again framing out the story all the way through to 4700 on this program over the last couple of hours. tom: it is healthy to see this. in the dead of summer, maybe that is what you see, but this isn't a normal summer. we will maybe hear from vice-chairman clarida that they are beyond data-dependent. he will phrase that in his own elegant way, but they are hanging on every data point. jonathan: how close will vice chair clarida's speech be to but we heard from governor brainerd? lisa: it means perhaps he's

aligning himself with someone he sees as being the next fed chair. jonathan: you went straight to the politics. i was going to the markets, but carry on. lisa: the idea is where is the balance of weight. we were talking about the big three, clarida, john williams, and chair powell. does lael brainard become one of the big three? jonathan: that is why the speech yesterday, it was quite interesting to see him break with the core of the fed. tom: lisa, you are looking at the fed like it is an episode of "bridgerton." jonathan: lisa, can you say this is like an episode of "bridgerton?" lisa: i don't know what you have been watching, tom. this is not like an episode of upward bridger -- of "bridgerton" at all.

jonathan: equities up 0.4%. i don't know if that is a good thing or a bad thing, tom. from new york, this is bloomberg. ♪ ritika: with the first word news, i'm ritika gupta. the surge in covid cases is increasing pressure on u.s. drug regulators to fully approve the pfizer coronavirus vaccine. it was the first one to apply for full licensure in the country. approval could help the biden adminstration ramp back up its immunization drive and reassure holdouts that the shots are safe. a key senate republican has tested positive for coronavirus. that could delay the democratic plans to pass the infrastructure bill this week. similar lindsey graham and at least four others attending an event over the weekend. graham will quarantine for 10 days and miss votes on the legislation. if others test positive, that could mean they delay the vote

timetable altogether. the tokyo olympics, american star simone biles made an emotional return to competition and ended up winning the bronze medal in the balance beam final. that came a week after she withdrew from several events to focus on her mental health. it is her seventh career olympic medal. she won it by doing a watered-down version of her usual routine on the beam. 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 we are talking about a 550 billion dollar package.

who knows where this is going to end up? the conversation changes week to week. but at this point i think the market expectation for another large fiscal plan has been damaged to some degree. jonathan: that was lisa hornby, schroders head of fixed income. tom: that was a great interview. jonathan: thank you, tom. you were part of that. [laughter] equity futures up 15, 0.3% on the s&p. in the bond market, yields are higher by a basis point or two. a breakdown yesterday. still sub-1.20%. tom: we haven't talked about the curve flattening yesterday, the difference between the 10 year and the two-year, less than one percentage point. we didn't get back to where we were july 17 or whatever, but it is a big deal. jonathan: we talked about this so much over the last few months . guessing the data is one thing.

guessing how the market will respond to the data is quite another, and really difficult to do. it was a downside surprise on the ism, but really robust demand, still some subtle signs that supply constraints were easing. those of the kind of things we want to see. i don't know. what do you think? tom: tom porcelli wrote a note on that, saying it was better than the doom and gloom. lisa: shorts greece. that's what a lot of people were saying still. the idea that there is still a short squeeze. jonathan: that's been the excuse for the last several months. ok. i will go anywhere with this bond market right now. i've got no idea. tom: jack fitzpatrick is like, what are they talking about? he's in washington, our bloomberg government reporter. i got to stay on plan here. there's always a wacko issue that comes in every summer in washington. it is eviction, and i guess we can make a joke about it, but this is really serious, isn't

it? are there going to be people out on the street? jack: yes, as it stands right now. there's not really much of a plan from the executive branch or congress to deal with this. the president speaking about this yesterday did note that states are taking action to the extent that about 1/3 of the people who would be even did -- would be evicted are not going to because of state measures, but the list of things the president is trying to do in an announcement yesterday is not totally concrete, pushing the states to take action, trying to get previously allocated money out. that has been a big deal. right now, there's not an extension to the moratorium, and the supreme court has made it pretty clear that congress needs to act on that, and the house is gone. tom: is this a debate about this pandemic, or is this a debate about welfare and washington

going back to the days of clinton? jack: this when i think is pretty clearly more its own issue today. it is not extremely ideological, even on the republican side. a lot of the criticism i heard was just that the administration sat on its hands and waited way too long to tell congress that it needed congress to act. they tried to act to make everyone whole in these negative situations with landlords, but out of the $46.5 billion that was supposed to go out, as of late last week, only $3 billion had gone out. so it is really a bit of a mismanagement issue politically and in terms of spending money that congress allocated, much more than an ideological issue. jonathan: the unemployment insurance expires september. from your perspective, is there a conversation brewing here about delivering more assistance

once that does expire, given what is about to happen with evictions? jack: the timing and the back-and-forth on the eviction issue makes you wonder because the administration initially said it would let it expire, and at the very last minute, asked congress to act, so that may not be a good sign for them standing by their exact plans. but the president has pointed out, and people around him have publicly pointed out, that it is set to end in september. they plan to let it end. that kind of relieves some of the partisan debate that has gone on back and forth for months in washington over what exactly the role of those benefits are in terms of the slow return of the workforce. so we haven't gotten anything specific showing that the president might change his mind on that, and i think the general expectation is that it is going to end in september. lisa: meanwhile, senator lindsey graham from south carolina being diagnosed with coronavirus, not able to join for the vote for 10

days as he isolates himself. he has been vaccinated. he is ok. but he doesn't want to infect others. there's a question of how much flexibility there is, how much support there is within us of the constituents to get this bill across the finish line before the recess. what is the odds from your perspective that they will be able to plow forward regard of -- forward regardless of lindsey graham's participation? jack: it is looking good, but you do deal with narrow margins in the senate. the first procedural vote, they needed 60 votes, and they will need 60 votes again, but they've got 67. i think the amendment upcoming will play a significant. i looked through all of the amendments filed as of yesterday. none of them were really controversial. at this point, they are taking votes on an untold number of bipartisan amendments that don't seem to threaten that many votes, but as you go through that process, somebody could get

upset over something and you lose votes. the fact that the starting point is essentially 67 and they need 60 is a pretty good sign, especially given that you haven't heard of anyone else testing positive. there was a gathering on a houseboat. the more negative tests come back from that, the better for them because if a dozen people are infected, that is obviously a much different scenario. as of now, this number takes them down from 67 to 66, which doesn't look like a problem. jonathan: thank you. tom, you are right to point out what is about to happen with evictions. this according to the latest census bureau survey. "now this is expired, this is what is at risk. a somewhat or very likely to face eviction, about 7.4 million households behind on rent in

total." this is all according to the latest census bureau survey, and those numbers are just horrendous. tom: whatever your politics, the inability to distribute the funds shows a level of distrust in the process, and it is not just evictions. it is the underlying landlords that are hammered by certain bills, and even above them, some of these smaller banks, they are not jp morgan. jonathan: in is the someone not paying on the someone not being paid. lisa: the interesting thing is also where a lot of these evictions may occur. it is concentrated in southern states, and particular mississippi, south carolina, and georgia, where tenants are more likely to carry rent debt in the u.s. on average. you wonder what the political ramifications are of those images of people being kicked out of their homes. jonathan: a story we need to stay on top of right here on "bloomberg surveillance," on tv, on radio. alongside tom keene and lisa abramowicz, i'm jonathan ferro. up 14 on the s&p 500, advancing

0.3%. yields are higher this morning by a basis point to $1.1921 on the u.s. -- to 1.1921% on the u.s. 10 year. good morning. this is bloomberg. ♪

♪ jonathan: live from new york, for our audience worldwide on tv and radio, here's the price action. futures positive by 0.3% on the s&p, on the nasdaq by a little more than 0.1%. on the russell, the small caps up by 0.7%. coming into august with a broken consensus and a wide range of views. we had oppenheimer looking for 4700 on the s&p, and 4700 if you at wells fargo. a wide range of views on the equity market. on the bond market, too. your 10 year yield right now at 1.188 1%. steve major at hsbc looking for that move back towards 1%, pulling us down on the 10 year yield.

the likes of morgan stanley and others looking for a move back to 1.60% and beyond. that range extends from the sell side strategists all the way to the fomc and the federal reserve, and the board of governors itself have different views. you've got the view from governor brainard, patience. they are very different views. here's the view of the market right now. financial conditions loose. this from mohamed el-erian in the last 24 hours. the goldman sachs financial conditions index is one the fed has got to be looking at. financial conditions, when this chart goes lower, that means conditions are getting looser, and that his record looseness for financial conditions in this economy in this country. tom: overnight repose went back under one trillion -- overnight repos went back under $1 trillion last night. there's a crowd talking about $2

trillion overnight repos. i don't know if you get to that number, but the financial conditions are something we have never perceived before. jonathan: how much support does this market need in the environment we are in right now and the likes of president bullard, kaplan. they've already seen the data. as far as they are concerned, we are not in an emergency and the view -- an emergency anymore. we need some optionality for 2022. i'm with you, tom. others disagree. what did they say this morning, no hikes through 2024? i started this conversation by saying no consensus on. . a wide range of views that is where we are at -- on a wide range of views. that's where we are at right now. tom: when do we get the dots redone? next time around. jonathan: looking forward to the coverage, tom. i can see you are excited. tom: i want to see the data.

jonathan: is romaine bostick with your movers this morning. romaine: let's start off with alibaba. we did get earnings out of the company. a lot of folks were focused on the come at a because of the regulatory overhang. in the short term, that doesn't appear to be a huge impact. you are talking about a company with $2 billion in revenue here and a company that still seems to be investing in its business longer-term, so whatever regulatory crackdown is going on on alibaba, ant group, and the rest of the chinese tech sector, for this particular company, it doesn't seem to be upending its long-term plans. shares down fractionally this morning. eli lilly taking a little bit harder. they did come out with earnings. those shares down about 2%. mainly this has to do with that covid therapy. sales in the recent quarter dropped to about $150 million, down from $800 million plus in the previous quarter. now the focus is going to be on the company's alzheimer's

treatment which is still in development. you are still talking about $27 billion in annual revenue projected for the year ahead, but that is still a little bit like from what the street was expecting. clorox reported earnings. these shares down 8.5%. this company really got hit hard. they have benefited a lot from everybody disinfecting during the pandemic. sales came in way below estimates, and their estimated for a decline in sales for the fiscal year that just started in july. so this is a big deal. also keep an eye on take-two and the rest of the videogame space. take-two did report earnings. they also missed estimates in terms of revenue and in their monthly active users. this is a stock from a company that said they are delaying a couple of games. they didn't specify what those are. this is going to be big in the keene household, i'm sure. activision blizzard reports after the bell tonight. keep an eye on that. a lot of concerns about tencent and whatever is going on about

china. finally, lift bank -- finally, lyft is reporting after the bell. . don't expect any profitability. tom: are they going to talk about vaccinated -- don't expect any profitability. tom: are they going to talk about vaccinated, unvaccinated drivers? romaine: despite the fact they are losing money, despite all of the concerns, they are going to punch through 700 million shares for the first time. they will have something like 15 million active monthly writers, or ash monthly ride -- monthly riders, or however they measure that. it means where writing more -- we are riding more or further. most of the crew that covers this are pretty bullish regards to that ride-hailing business. tom: thank you so much. the clothes this afternoon here

in earnings season. this is an important conversation, and it may surprise you that it is our conversation of the day. we are trying to calibrate equities and economics into the litmus paper of the system. jon ferro, you have talked about global yields as being as important in their interdependencies as the u.s. 10 year benchmark. jonathan: let's get to patrick arbery -- two padhraic garvey on this. you look to germany, and yesterday the whole curve below zero. how important is that dynamic, the gravitational pull, yields lower? padhraic: i mean, this is an incredible set of circumstances. you can't get away from that the yield is the global benchmark. i think the big lesson for europe is that europe never

really recovered from the global financial crisis as measured by monetary policy. the u.s. manages to repeat -- the only hope for europe is that the u.s. manages to repeat what it did post financial crisis. a raise rates, get back to some semblance. what i see in europe is a lot of hope as we have done this before. lisa: is that the message from the 16.5 trillion dollars of negative yielding debt, the highest volume globally since february? if this representing a loss of hope? padhraic: you've got to break it out as to whether the market discount is telling us something about the future or whether the market has been pushed thereby excess demand her fixed income. i think it is a bit of both.

in a sense, there is a little loss of hope. the bond market is a discount function. but at the same time, we know banks are huge buyers of government bonds, and that is a major factor behind this. everybody once to be on the same side as the central bank. as long as central banks are buying bonds, that is decide you want to be on. hence, we find ourselves in this incredible situation very different from where our circumstances are. tom: we are all talking yield here, but this is the time where i flip to price. there's a massive did on all this paper. is it similar to 2005 and 2006, or is there different character to the insatiable desire to move price up on fixed income? padhraic: there's a whole series of pears out there buying fixed income. it is not just guys buying

bonds. it is also corporates setting up great receivers where they pay floating because they think they will get the cheap responding and the prognosis in terms of right height risk is really dim. so what i see is an exceptional demand for treasuries. we see a lot flying out of tokyo for example. you don't care what u.s. inflation is. the simplest explanation for where we are is the supply for fixed income, but it poses problems. the fed has not spoken about this, but they will not be happy to see the 10 year approach 1%. it makes life very difficult for them. jonathan: they should stop buying tips, then.

how distorted is that market right now? padhraic: the entire spectrum of rates is distorted. -100 basis points of absolute distortion, 1% of the 10 year is absorption. the fed wants to hike rates. not now, but they will want to hike rates. you can't hike rates with the 10 year at 1% as you are just going to invert the curve. they want to get the 10 year up to 2% ideally. the way to do that here and now is don't taper. just stop buying government bonds. will they do that? unlikely. but they probably should do. jonathan: good to catch up. tk, this is the issue right now. you can since the distortion in technicals, but eventually they become fundamental narratives. then this theory of reflexivity starts to emerge. it is the market that shapes

whether it anticipates it in many ways. this is the issue for the bond market going forward from here. tom: we could get philosophical here. reflexivity is owned by george soros, back to karl popper. you are dead on, and it is an ex post central bank, and what popper weaned in the early 1950's and george soros picked up on is the narrative changes, and that changes your interpretation to the ex post view. i hope i got through that in one piece. jonathan: padhraic just said it for us. it could stop them from hiking interest rates because they don't want to hike interest rates if they are going to invert the curve. tom: i can only say it is just an honor to do what's jon ferro on economic and fiscal policy the british way. jonathan: thank you, tom. i am not sure how genuine that was. tom keene, lisa abramowicz, jonathan ferro. tom: what is harry kane doing?

jonathan: missed training again. the italian face found again. this is bloomberg. ♪ ritika: with the first word news, i'm ritika gupta. president biden and top white house officials are trying to stave off a wave of evictions. the federal motor thorium -- federal moratorium just expired, and the president is pushing state and local government agencies to act quickly to stop folks from losing their homes. the chair of the sec is preparing more oversight of krista currencies -- of cryptocurrencies. in an interview with bloomberg, he signaled that he is not on board with the hands overhead approach that many enthusiasts would like to see. he says investors must be protected against fraud.

sales of -- exceeded, and we spoke to ceo bill winters in an exclusive interview. we will have plenty >> -- >> we will have plenty of capital to invest organically or in organically. if there is nothing out there for us to invest in, we could resume buybacks or increase the dividend. ritika: they are expected full-year income to be in line with what it was last year. 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. ♪

>> as of saturday, cdc recorded the seven day moving average of

new covid case is to be about 72,000 cases per day. this represents an increase of 44% from the prior seven day average, and higher than our peaks of last summer. jonathan: rochelle walensky, the cdc director there. the important component, the change relationship between those cases, hospitalizations, and ultimately deaths. we can talk about that in just a moment. from new york city, good morning. alongside tom keene and lisa abramowicz, i'm jonathan ferro. your market up 16 on the s&p. yields are higher about a basis point 1.18% on tends after yields broke down through the better part of yesterday's session. one name to watch in the premarket, lilly down mildly, by about 7%. i will just rattle through the numbers and give you a forward look as well. second-quarter revenue, $6.74 billion. the estimate, $6.61 billion.

full-year revenue, 26 point $8 billion to 27.4 billion dollars. had seen 26 point $6 billion to $27.6 billion. no big moves here, just a subtle mix lower. tom: this is a joy, and when you are weaned out of indiana as part of my family was, david ricks is with eli lilly, their chairman, their chief executive offer celebrating his 25th year with the company. the ricks era going back to his first day darkening the door is 12% in the year the last 10 year , the stock. it has been an extraordinary move. i want to talk about where you are now with covid. there's some sensitivities here. with your head of research and science, when you look back at the last 18 months on covid and

you look forward to the next 18 months with this horrific pandemic, what have you learned, and what is the to do right now for eli lilly in this horrific pandemic. david: thanks for having me on with covid, we had a lot of ups and downs. ask your we had a lot of unknowns about how this would progress, and we set to work to create therapies because that is what we do. we are not a vaccine company. and we did that. i think we are very proud of that. we worked on neutralizing antibodies, both a single and a combo, and have developed one of our anti-inflammatory medications which today we read out results that those on ventilation or the most advanced patients in the hospital reduced death by over 40%.

we just want to put our tools to work to be helpful. our ongoing business is about treating other diseases. we are not a virology company. so as dependent has ebbed and waned, those businesses have come back strongly, as treatment for die abilities -- for disabilities and cancer has improved. we don't think about ourselves as a covid company, but we are happy to make a big contribution. this year, that ended up in a fair amount of sales, although in the second half, that is really about reducing covid-19 related antibody sales and increasing the performance of our underlying business. we do expect that as these waves happen, they will begin to subside. each one will be lower, and a new sense of normalcy will set in. right now we have a problem in the u.s., but there's a way to fix it. tom: hello me about alzheimer's.

the absolute uproar in washington about the need for a solution, i get that. fine. you guys going back to insulin, get these horrific diseases correct. what will you do to help listeners and viewers with alzheimer's? david: this is an area that is very personal to many of us, and our scientists have been working for over 30 years to try to create a medicine that could slow the progression of this disease. it is the sixth leading killer, a fatal disease, and the only one in the top 10 without a medication that slows it down. recently, the fda shifted their policy. they said showing an ultimate and if it of a slow-moving, difficult disease that we don't fully understand has been hard to prove drugs on. tom:tom: excuse me for interrupting. do you support that shift in fda policy? david: the regulator needs to make the decision about risk and

benefit, but of course, we believe, lloyd reduction leads to slowing of the disease. we have been betting on that for some time, and put no yens behind it and research. now we have a leading pro duct in that area, which had the first trial in humans show positives. we said in q2, we are planning to submit this year under that new policy, and we think patients deserve access to that medication. but we are going to prove its worth just in the following year. we have a huge study going on that is almost enrolled, and will prove the benefit. lisa: the biogen drug was incredible controversial when it came out, and large part because of its price, in addition to the fda policy which did seem controversial within the f d.a. panel. how different will this be in terms of the pushback, and in terms of the price point? david: we will not announce the

pricing today, but we tend to compete aggressively in all the markets we are in, and that benefits patients. we compete by creating better molecules, better medicines with different properties. in this case, our medicine works very rapidly. almost he vast majority of patients in our study no longer needed to take the drug get that cleared all the plaque in their brain. that is different from all of the other antibodies being studied, which are really lifetime therapies. secondly, we compete on data. i think the source of the controversy, few argue that the approved drug might have worse. i think the big argument is did they prove they had worth. . they are committed to complete the study. we will finish enrollment this quarter, and we will have that data in 2023, which is a pretty short period of time in drug develop and.

finally, we will compete on value in the marketplace. when we hopefully get approval sometime next year and we will talk about our pricing. jonathan: are you requiring your employees to be vaccinated? david: not at this time. we believe we have very high rates of vaccination in our population, but we are tracking that issue very closely. new information just released in the u.s. about the transmissibility of the delta variant from those that are actually vaccinated is a concern we are analyzing as we look at our policy. today we had very few, if not zero, and many of our facilities transmission of the disease. so it hasn't been a real problem for us in running our business, but we want to look at that and stay abreast of the latest information. jonathan: good to catch up and get your view this morning. from new york city this morning, good morning. your equity market pushing

higher by 16, up 0.4% on the s&p 500. from new york city, good morning. alongside tom keene and lisa abramowicz, i'm jonathan ferro. heard on radio, seen on tv, for our audience worldwide, this is "bloomberg surveillance." ♪

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>> once the market really starts to doubt the potential for reflation, the potential for growth, that can kind of spiral out of control. >> there's always pullbacks and mini-corrections. maybe there is a correction ahead. >> i would argue the labor market is as tight, if not tighter, than any we have seen in decades. >> i am more worried about growth in 2 -- in 2022, and that is what mobile bond