> it is able market, but there's a lot of -- it is a bull market, but there's a lot of violence going on. >> a pullback in yields could cause some of that volatility. >> the fed has come out about this. the will not be happy to see the tenure approach 1% -- the 10 year approach 1%. >> this is "bloomberg surveillance" with tom keene, jonathan ferro, and lisa abramowicz. tom: good morning, everyone. a simulcast with markets on the move. on radio, on television, jonathan ferro, lisa abramowicz,

and we are looking at a set of things. clarida's speech later. the virus. i'm looking at yields in the price of oil moments ago down to new weakness. jonathan: nominal yield right now, 1.1522%. you mentioned the real yield, record lows in today's session once again. crude, keep an eye on the lows yesterday. right now, $69.19. tom: let's go to one narrow. swiss franc speaks volumes, confirming this tentativeness. jonathan: just how live is this jackson hole meeting? how much attention should we be paying to this jackson hole meeting? vice chair rich clarida, if he takes the same line of governor brainard, i think we can look through it all to september. if he takes a similar line to governor waller, we've got a very interesting set up going into payrolls friday. tom: i would call that less than

likely, but we will see. we will have full coverage of that, particularly bloomberg economics. the overlay here, and at least the analysis is all of this angst is about the new pandemic. lisa: the idea that the delta variant is gaining steam, creating new shutdowns in certain places, particularly in china, were you get the likes of nomura downgrading economic expectations for china. how much our ultra low yield signaling that the federal reserve is correct in its assessment and caution of tapering these bond purchases, and how much is it a consequence of the fed signaling it is not going to move any time soon that these distortions will continue? that is a huge difference, right? tom: no question about it. i want to get to our esteemed guest, our interview of the day on the equity markets. let's look at the data quickly, and i want to frame why tobias levkovich matters. the vix really doesn't move at

18.47. frame the bond market. jonathan: yields in a couple of basis points to 11,559% -- 1.1539%. what does this mean for the equity market? long japan apparently, keep the overweight on u.k., and cut u.s. equities to underweight. tobias levkovich joins us from citi, the chief u.s. equity strategist, looking for 4000 year end on the s&p 500. all-time highs at the close yesterday. walk me through the work you and the team are doing at citi, and why are you just a little more cautious on u.s. equities? tobias: let's start with the discussion you guys were having before about the bond market. bond yields have had enormous impact on how you think about cyclicals versus defenses versus growth versus value. this is really changed as we have seen the bond yield was a

lot of discussion around impact distortion, etc. but keep in mind, central banks globally have been seeing depressed rates since 2008, and that suggests they don't have confidence in long-term, sustainable durable growth. as a result, risk premiums are higher, which so many people don't talk about when they talk about negative yields, for example. it is important to the evaluation of the markets. i think it is a really critical thing to understand. in 2008, 30% of the s&p 500 was comprised of deep cyclicals, industrials, materials, energy. 30% was secular growth, including i.t., media entertainment, digital retail, and health care, which was growing because of demographics. today that number is like 55% versus 15% in favor of growth. so the u.s. is a heavy growth market. if you believe bond yields are going to edge higher, growth

stocks are going to to get a little bit on the chin. that is why you probably want to be in more value oriented territory, which is what our global chief equity strategist was suggesting with his note. one last note. just looking at the 2% number, really pointed out very significantly that because tax deductions stepped up in june, the treasury was flush with cash going into july, and it only issued $94 billion worth of bonds. $80 billion alone was picked up by the fed. that is going to have an impact on that bund yield. it is another one of those deceptions -- those distortions sitting in market. jonathan: you are looking for that move back towards 2%. for an international story, i understand for robert buckland, japan, u.k., deep value. from a u.s. perspective, can you walk us through a sector preference for you and the team?

tobias: we are a little bit mixed on that. we do let capital, we like consumer discretionary, but within retail and consumer services, we are not chasing autos. we think those are probably not interesting to us. we like financial, we like insurance. more neutral under financials today. and those are more value cyclical oriented groups. from that perspective, we are there. we are not totally out of growth. we are still overweight on a downgrade watch because we think it is part of the capital spending support. tom: these glide paths to the citigroup outcome, can the a be -- can they be affected with stability, or do you ceas -- do you see significant volatility where we see vix at 30 or even worser? tobias: is that a word, worser?

[laughter] tom: that a cfa level two. tobias: i am not worried with the vix at 30, but i am not worried also at the vix at 15. if the vix was at 15 or 35, you would have an 18% probability that the markets would be higher later. it is crossing over in the 20 to 30 range that you need to be a little more worried. i do think you have some potential for volatility. there are four catalysts that are disconcerting for us that could possibly all coalesce around september. tapering, inflation being a little bit more persistent, margin pressures because cost go up because of supply chain challenges, and you can't as easily make it up on pricing. lastly is something nobody is talking about which is taxation. it is going to impact 2022 estimates for the street. that has been the real driver for the markets, the real strong

earnings. it is unlikely to continue to rise at this pace. that will worry some people, especially when sentiment is so bullish. the complacency out there when we talk to investors on a calls database -- on a calls basis is very palpable. lisa: it is a lot of fund managers that would like to see you go and buy that depth. i wonder if this means we have brought forward so many of the returns going forward over the next five to 10 years, returns on the headline s&p 500 are going to be pretty muted. what is your expectation there? tobias: if you look at the household sectors equity exposure as a percent of their financial assets, it is around 50% or so right now. that is a 50 year high. if you go back in time and look at heavy exposure, you've actually done exactly what you just suggested, brought forward

a lot of the return. if you look at that today, it is talking about a 0% return. it shouldn't stock people when they hear that because when you hit your lies. i am fairly positive that over the next 10 years, we will have a recession. so to say over the next 10 years you might not get in the returning equities on the s&p 500 isn't that crazy, even though it sounds crazy. but it means that you probably have to go to more of active investor than passive. jonathan: we had a recession over the last decade that lasted a couple of weeks. [laughter] tobias, good to catch up. tobias levkovich, citi chief u.s. equity strategist. tom: that isnber, and they have their own formula for how we do

this. i really underplay that measurement. what i am focused on all the markets down. i like that tony dwyer does at canaccord genuity. if it is a recession, that is good for stocks. if it is a recession, you've got to play. jonathan: just to reallocate that -- to reiterate that call from citi, the international aspect to all of this, if we get a move back to 2%, the preference is international. it is the u.k., it is japan. but if you have a 70 basis point move on real yields in america, i do wonder the broader risk tolerance, whether the sector preference really makes a difference in that kind of environment, where we just get one big downdraft. jonathan: i think it -- lisa: i think it depends on the pace also. what would have to happen for real yield to move up would have to be incredibly good news. how disruptive would it be? these are all things that could determine this.

just thinking through the mechanics of it, it is so different. jonathan: is there a situation where the economy is good and market is bad? lisa: arguably, that is what people hope happens. people hope it gets brought into the economy and that frankly, you could see a downdraft, but it is temporary and the markets as people reassess, recalibrate with higher yields. jonathan: have we talked about absolute performance here? tom: jonathan: absolute tom: tom: -- absolute relative analysis is important here. . jonathan: in about 40 minutes, the adp report in america. michael mckee will join us to break that down. this is bloomberg. ♪ ritika: with the first word news, i'm ritika gupta.

researchers say vaccines targeting the highly transmissible delta variant main dow be needed. a study looked at recent numbers in england. they found the antibodies raised by current shots are less effective. in china, the widest outbreak since the start of the pandemic is hampering tourism and spending during what is the peak summer holiday. that has analysts reviewing their economic growth projections. it has spread to almost all of china's 32 provinces. the british navy says a potential hijacking of a ship off iran has ended. unidentified people were said to have boarded the ship yesterday. those boaters were said to leave today. the incident took place days after a possible current strike hit an israeli operated ship in

the region. two sailors were killed, and the u.k. says iran was probably behind the attacks. congressional democrats are reportedly seeking $550 billion in climate damages from big polluters. according to "than your times, it would tax companies like exxon, chevron mobile, and other big oil and gas corporations. it would direct government agencies to release -- how long will jamie dimon stay? the billionaire ceo of j.p. morgan chase told foxbusiness he sees himself staying in the job for another five years, but not 10. 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. -- global news 24 hours a day. i'm ritika gupta. this is bloomberg. ♪

jonathan: big downside surprise on the adp report this morning. good morning. here's the price action.

1.13 to 4% the yield on the 10 year -- 1.1324% the yield on the 10 year. we are just about to break through 1.13% now. your dollar is weaker. as tom pointed outcome of the dollar index briefly through a 92 handle, advancing by 0.06%. equity futures a bit softer, down nine points on the s&p 500, down by 0.2%. it is a downside surprise on the adp report. 330,000 is the number. 690,000 was the estimate. tom: we go granular. only michael mckee can do that because beneath the headline data is other data. is there a veracity to this granular data of adp? michael: the conclusion is the same, that it is an ugly report. the question is, do you believe it? the markets don't seem to be reacting in a way that suggests

it really matters. that has always been the problem. tom: i've got 1.129% on the 10. there's a problem. michael: the adp had not been an accurate forecaster in terms of numbers, and terms of directions. last month, the direction of adp was lower, and the direction of private sector hiring eased a little bit. but let's take a look at some of the numbers underlying the adp report this month. small business is, 91 jobs -- small businesses, 91,000 jobs added. large businesses, only 106,000. there were 240,000 added. about half the hiring in each of the categories over the past month. is that because adp doesn't count correctly, or is that because hiring really slowed? that is going to be the major issue for the markets. 318,000 service providing jobs,

and we were expecting that. we were expecting major hiring and leisure and hospitality, but only 139,000 jobs according to adp during the month. that compares with 332,000 the month before. a lot of data suggests maybe july was a soft month and people did not want to come back to work. remember, a lot of states cut off those extended unemployment benefits during july. didn't seem to have an effect in this data. you're going to have to tune in at 10:00 because we have two data points. one, richard clarida will give us his views and maybe this will affect his views. but we get the ism services report. that will tell us more about hiring in the services industries, and the services industries are a real disappointment in the employment numbers. jonathan: often, we only remember the extremes.

the most recent extreme is a spring repeat. tom has been talking about it all week. you look for something close to one million on payrolls and you get something nowhere near. how are we set up? where are the estimates? michael: the estimates were 807 he 5000 for total jobs created. will that come down after adp? sometimes it influences some of the forecasts. the job creation number a little lower than that. we just don't know. we are all flying behind because we never shut down the economy in one fell swoop and tried to reopen it. it is taking a lot longer to reopen the economy and place people in jobs. a lot of senior positions, openings at the low end. you've got jobless benefits, childcare questions. so how long does it take this to get sorted out? the fed doesn't know. we don't know. lisa: you said it doesn't seem to be hoping that certain states

ended the added unemployment benefits. do we know if those states had job gains relative to the other states? michael: we don't know that yet because that comes out with a couple of weeks delay to the jobs data. but we know the number of claims being paid in those states is still about 50-50. some states did see a degrees. -- did see a decrease. there's no firm measure on what since people back into the labor market and helps them get jobs. there's a lot of look at september. if we do not see material gains and states that have not ended them, is that perhaps an auspicious view of how much that is crimping the supply of labor? michael: it could be. there are other things that are going to happen in september, particularly schools reopening. now there are questions about

that, of course, with the delta variant. but if schools are reopening, that would free up people who had to stay home because kids wherein virtual school, and they could come back to the labor force as well. it is hard to tease out which effect is going to be the bravest -- the greatest in september. we might see a return to work in august because schools are opening in many districts. we would just have to wait and see. jonathan: mike mckee, thank you. the ism services print coming up at 10:00 eastern, alongside that speech from vice chair clarida. he has licensed this morning to basically say whatever he wants because this will be on outcomes, outlooks, and prospects for u.s. technology. tom: i am going to respectfully suggest that with his academics, this is a guy that is going to frame what ex post means, the

new data come away for the data, weight. maybe we'll talk about this framework. jonathan: we haven't heard from him in a speech at least since may. i think that is important. how do you clear the narrative away from what we have heard from the lexapro below dark -- from president bullard, which made some noise over the past month? lisa: i would agree as well. i am looking at this data and looking at the market reaction, and wondering whether basically this pushes the potential taper to january. how many jobs reports does the fed need to see before they are comfortable tapering rates and tapering their bond purchases? if we get a bad jobs report friday, does this push the potential taper into 2022? jonathan: it is not about the adp report. if payrolls friday looks like this, we have a very different conversation, and governor brainard starts to look smarter

than she already does. a lot of people, i think the base case is still, whenever going to start? december, and an announcement in september? tom: i am going to wait for the data. one of the great observations i've learned from michael mckee is the asymmetry of any jobs report. it is about the gloom of jobs, but on the other side at the same time, the job formation. what is going to be necessary on friday is to say, ok, maybe we have stanched the job decline, but where's the beef? where is the job formation? jonathan: what changes the game more, huge upside surprise, or huge at downside surprise? tom: i think the market has priced in the whisper numbers. the large, screaming number is going to be downside.

lisa: i think a downside surprise will see equity markets slower, which is what we are seeing now. that is the distinction between lower yields and higher equity valuations. jonathan:jonathan: on the s&p, we are -0.2%. good morning. alongside tom keene and lisa abramowicz, i'm jonathan ferro. on radio, on tv, this is bloomberg. ♪

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jonathan: live from new york city, alongside tom keene and lisa abramowicz, i am jonathan ferro. or data in america at 10:00, the isom services read anda speech -- the ism services read and a speech from vice chair richard clarida. yields lower at three or four basis points. the tiny look at 1.12, 1.1260 below of a couple tuesdays ago. euro-dollar 1.1872. the dollar weaker on the back of that with yields lower. your equity market also softer. down 12 points on the s&p. negative a third of 1%. tom: the observation besides

equities catching up with everything else, i see the 210 spread gives way. flatness. that is significant for the banks. jonathan: treasury refunding is something else we should be watching. tom: please explain that. i could care less. jonathan: $156 billion of 3, 10, and 30 year funding. we've have been talking about peak everything. peak fiscal, peak monetary policy, let's talk about peak debt issuance. lisa: this provides treasury valuations and will send yields that much lower, especially if the fed reserve decides not to taper. less supply of bonds. the same amount of bonds the fed is purchasing. do the math. jonathan: yields just south of 1.3 teen -- yields just south of

1.14 right now. tom: we have the right guest. we could spend a good deal of time on wage dynamics. thomas purcell he -- tom porcelli joins us on radio and television. i will cut to the chase of the asymmetry of any labor work. there is one part about people maybe not getting job growth as much or losing jobs faster. there are two dynamics in a labor report. is this economy about the inability to form jobs? tom p.: i think, yes. that is a challenge. we know that. we can see that in job openings data. we have a staggering amount of job openings. roughly equal to the number of unemployed. we cannot find those matches. i think there is some element of truth to that. i know people, my inbox is already filling up with, what

does this mean for the recovery? it is one report that missed the mark. it is a report that has not done a good job of telling us what is going to happen with private nft which we will get on friday. it did a great job last month. other than that, the misses have been staggering, it has missed between 400 and 500,000. i would not take much from this report as related to friday. we are still looking at 700,000 private jobs, that feels like a good estimate. if anything there's a favorable seasonal factor in place. i think we feel comfortable about this. part of the challenge is fed governor waller put a bull's-eye on this report in his speech the other day. maybe expectations are going to be elevated with regard to this

report. i think it will wind up coming out and meeting expectations. tom: pub donovan, always brilliant -- paula donovan -- paul donovan said are we counting jobs correctly in the modern economy? do you believe the data or are we in some new paradigm? tom p.: i think it is a fair thing to all of us to dig into. i do not think there's any question about that. the problem is this. if we are in the midst of a shifting paradigm, the reality is people are going to be very slow to wake up to the reality of a new paradigm, which means you are left with having to deal with all of the data we have been using prior. as it relates to fed policy, i would love to them -- i would love for them to drill in and

understand labor dynamics beyond the payrolls report and what alternative data are telling us. that will not happen on the fly, not right now. for the fed releasing a state of policy, it will be about these payrolls reports. even if behind the scenes the labor backdrop is showing more strength. that is not going to equate for this fed with regard to their decision to taper. jonathan: help us navigate the fed speak. vice chair clara at 10 eastern. what kind of approach are you looking for? tom p.: we like richard clarida a lot in terms of being a guidepost for what the conversation that is happening within the fed. i think lawler gave us a good sense for that the other day. to be totally fair to all of the fed officials, they speak with such regularity, i think we get

a good sense for what is happening behind the scenes. richard clarida has done the dutiful thing in his time as vice chair, which is to say more or less representing what the chair is saying and thinking. does he break new ground? i would love for him to break new ground, i would love for him to be more aligned with what lawler was saying earlier in the week. directionally i think that is where we are going. jay powell will be the one linked to the party on that. i think he has to be a little late to the party. i do not think anyone wants him basing what is going to happen on policy on what his forecast is. i think they want him down the middle as much as he can every time. i think it relates to the changing and the weeping dynamics of the economy. i think the other officials, including richard clarida, they

are usually better at giving us a sense of what they are thinking about. i am looking forward to the speech, but i have to say, my new favorite fed official is governor lawler. jonathan: some people might say chairman powell is merely reflecting what the vice chair is thinking. we will leave that for another day. let's talk about the sequencing you're looking for. we have at two allied calls, we have that one who thinks we can get a june rate hike, and another who says no rate hike the whole of this presidential administration. what are you looking for? tom p.: our base case is they key up tapering, perhaps as early as the november meeting i would love for september -- we think it could happen as early as november. whether november or december, that is a distinction without a difference in my opinion.

november or december they teed up, we start in december or in january. then they tie it up by the middle of the year. shortly thereafter they are raising rates. again, i think you're asking the right question. let's be clear on this. if you think about the average inflation targeting framework, you can easily make the case that maybe fate has been achieved -- maybe fait has been achieved already. loretta mester has said that. think about the fit forecast for the unemployment rate. 3.8%. people think i'm this big economic. -- people think i'm this big economic bull. then the bull is aligned with the fed, because that is pre-much my forecast.

3.5% by the end of the year. you're going to tell me that 3.8% and fait having being achieved equates to no hikes in 2022? that is inconsistent. people are looking for catalysts to get the market to move. i will give you a catalyst i think will be interesting. i think the september payroll, the september fomc meeting will be very interesting. everyone appreciates fed officials looking for a hike. it only takes two officials to get that medium to move. i do not think we would be surprised if something like that would happen. that is the area right for continued movement. jonathan: that is such a good final point. tom porcelli of ibc, great to catch up is always. looking forward to the speech from richard clarida later. it will not take much to move that median dot, i think that is an important point.

lisa: and the fed looking at an economy that is fait based. getting down to 3.8% unemployment, i look at what we are seeing in the job gains, when will we start to see progress? is it going to be in september? jonathan: can you tell me what progress is? lisa: i cannot. i will say upside surprises in some of these labor market reports, the numbers we've been expecting, when we will see them on a repeated level? tom: yields lower by three basis points. -- jonathan: yields lower by three basis points. sometimes it takes a wild for markets to remember they do not care about the adp report. tom: 1.14 versus where we were weeks ago is different. i would focus one what happened yesterday with american airlines and spirit air. it was an absolute joke. x percent of their pilots cannot

get into the sky because of massive staff dislocations. how do we guesstimate a friday jobs report with a historic standard air you could drive a mack truck through. jonathan: what you bring up is a perfect example demand is not a problem. there are people waiting to get on the flight. tom: is also applied this location. jonathan: how should the fed respond to a world still driven by supply disruption. priya misra will be joining us in the next hour and looking into vice chair richard clarida before he delivers the speech at 10:00 eastern. full coverage on bloomberg tv and radio. on bloomberg radio and tv with tom keene and lisa abramowicz, i'm jonathan ferro. this is bloomberg.

ritika: senior democrats ranging from president biden to state legislatures are calling on governor cuomo to resign. a report from the state attorney general outlined claims he sexually harassed 11 women. the one-time democratic star says he never touched anyone inappropriately or made inappropriate sexual advances. a new study says most children who get the coronavirus recover within a week. researchers who looked at more than 1700 british children also found 1.8 percent have symptoms that last for eight weeks or longer. that suggests so-called long covid may be less common in children than adults. gary gensler is signaling there is a path for approving a bitcoin exchange traded fund. crypto enthusiasts say that is a move that is necessary for taking crypto to the mainstream.

-- providing with strict mutual funds could provide investors with the necessary protections. a rare quarterly earnings miss for general motors. it was hurt by the recall of the chevy bolt factory fires. on the other hand gm raised guidance for the year. the company also says supply chain challenges are continuing in the second half. cbs posted second-quarter earnings that beat expectations -- cbs posted --cvs posted second-quarter earnings that beat expectations. it is administered almost 17 million shots in this quarter. 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. ♪

tom: good morning, everyone. lisa abramowicz and tom keene.

we do this through the markets. the yield of 1.1 373. deterioration in the equity market. right now, david westin knows lyriq is spelled with a q on the electronic over vehicle. david westin, the 300 bio range gets you halfway to detroit. david: leave it to you to know how it is spelled. mary barra joins us from her headquarters in detroit. thank you so much for being with us. i know you will say the second-quarter is just one piece of a longer arc for gm. to take that one piece, he did very well in revenues, you set a new record on ebit., yet fell short -- how much of that was because of the one billion dollars in costs on the recall? mary: certainly that will have

an impact. we will always do the right thing for our customers. it was the right thing to do. we learn from it. we know it is a unique situation with two manufacturing defects that are quite rare happening in the same cell, that causes the potential for a fire. we will address it and move forward. it is also important to note when we look at our ltm platform, that is a new battery and that underpins the hummer ev, and of course next year with the lyriq. david: howdy make sure this does not happen? you are making a substantial investment in electric vehicles. how do you make sure you do not have this problem again? mary: anytime we have an issue, we have an outstanding engineering team and they look to make sure we never repeat that issue. i also think it is important to note if we go forward, we've

announced four battery cell plants. those will be joint ventures. that should give people great assurance as well. david: there's another headwind you have been facing and that is semiconductors. give us an update on that. how many trucks will you make in the third quarter than you otherwise would because of the shortage of semiconductors? mary: we increased our guidance for the full year. that shows our confidence we are going to continue to perform on top of an exceptionally strong h one. we will be very fluid. right now we work daily for the team, weekly from a leadership team. we want to make sure we understand the semiconductor situation and we are allocating chips to our highest demand to take care of our customers, and also the vehicles that are implants are capacity constrained. especially full-sized trucks and suvs.

you will see us continue to do that. there is growing uncertainty because of the delta variant. we have seen an impact in malaysia and mapped it out in detail. we are working to share our safety protocols because we have the experience to say when people follow those protocols they can be in their manufacturing operations, whether it is design or r&d, they can do that safely. we will share that and work with our tier one and all the way down to our tier fours to make sure they have that benefit and we will keep maximizing production. michael: i am glad you -- david: i am glad you brought up the delta variant. give us a sense of what you think it might mean for general motors. more broadly in your manufacturing? mary: we did announce to our teams yesterday and it started today that we are reinstituting the mandatory mask policy at all of our sites because we know when people wear masks and follow the appropriate social distancing and the sanitizing

recommendations people can be safe at work. i think we are in a very different position than we were a year ago when we were not sure. we know the protocols work so we will be applying those. as we all leverage all of the learning we have had a blast 15 months, that will put us in a better position for h2. we are monitoring carefully and the team will continue to adjust. mary: -- david: what about possible tailwinds, particular with pricing? there is a shortage of vehicles. prices seem to be robust. how much is that lifting your profitability? mary: the strong pricing to environmental -- the strong pricing environment and the strong demand is supporting earnings. when you look at gm specifically, we have a strong product portfolio we are offering. customers are responding and we are working to be more efficient with inventory. we have given our dealers tools

to see what is coming. there is many time a truck arrives at a dealer and most of the vehicles on the truck are already sold. we are also helping them order the best configure vehicles using data analytics. that is allowing us to move vehicles faster. because of our portfolio, even though there will come a point when we have more availability, i still think we have a strong pricing opportunity and we will be more efficient with all of the lessons we've learned in the last six months. michael: finally -- david: i mentioned the substantial investment general motors is making electric vehicles. what about demand for those vehicles? do you know there will be demand? i know you will have supply? mary: we do a lot of customers research and customers are telling us if it is beautiful styled and has 300 miles of range and it is affordable, they are very interested in owning an

electric vehicle. we are working on the ecosystem to make sure it is customers buying electric vehicles, it is an outstanding customer experience. that is what we will need to do to drive ev adoption. i am confident we will. when i look at our products that are coming out, we have not shared many of them, but if you look at the strong demand for the hummer ev in the lyriq that will begin to take orders next month, i feel confident we will see strong ev adoption. david: thank you so much for your time on a very busy day for you. that is mary barra, chairman and ceo of general motors. tom: david westin, thank you so much. futures -16. we see a deterioration in the yield space, beginning to test the 1.12 handle. lisa: that on the heels of the adp report that was disappointing, but it also comes as we get headlines i'm including hong kong suspending

the quarantine exemption for china travelers, making it more difficult to travel internationally or domestically. this adds to the angst in china as lockdown start to begin again. tom: it gets to the idea of a global sense of this. it is not just about the domestic politics of germany or the united states. it is the global feel of a struggling latin america, south america, and asia. lisa: if you look at the intraday price action, i am looking at american airlines. delta airlines. the concern is prevalent, the idea. american airlines is down 2%. how much can travel get back online if we continue with these outbreaks around the globe. tom: what we will promise you is to continue to look at the markets with the speech of the vice-chairman of the federal reserve system. the richard clarida speech is becoming ever more important this morning. he will join adam posen and the

team at the peterson institute. also some economic data coming up as well. futures deteriorate. dow futures -153. stay with us on bloomberg radio and bloomberg television. ♪

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jonathan: the adp report shaking things up this morning. good morning, good morning. your equity market alone but softer. "the countdown to the open"

starts right now. >> everything you need to get set for the start of u.s. trading. this is "bloomberg: the open" with jonathan ferro. ♪ jonathan: from new york, we begin with the big issue. delaying a return to normalcy. >> the delta variant. >> the big scare on the delta variant. >> if you asked me what the biggest risks are, fear. >> fear of the variant. >> the return to the office has been on the slow side. >> how much delta will delay the full normalization. >> the macro standpoint may slow the economy down. >> the issue of the delta spread. >> the delta variant represents