tv Bloomberg Surveillance Bloomberg August 10, 2021 6:00am-7:00am EDT
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eye on who is in the labor force. >> we are ultimately going to stabilize to a more modest growth rate. >> inflation is going to stay more elevated and stickier. >> wall street may be still drinking the fed's kool-aid that is inflation as you will not be a problem at all -- inflation issue will not be a problem at all. announcer: this is "bloomberg surveillance" with tom keene, jonathan ferro and lisa abramowicz. jonathon: this is infrastructure week. this is bloomberg "-- "bloomberg surveillance." we are negative one single point on the s&p 500. we have a $550 billion bill in d.c. tom: a lot of it is a boost to consumer spending. this is a morning where we see more indicators, more nuances led by the infrastructure than i
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have seen in ages. from john gallup's sba 5000 down to ben ladler's note and it all leads to the fiscal stimulus now and the fiscal stimulus to come. jonathon: even with multiple contractions, even with a tax drag, that is jonathan karl up's very bullish on the outlook. tom: 200 $50, 2023. and then you go to a 20 times multiple and anyone can do the math out to 5000. that is amended along the way. he may go to 250, 260, may 240. the multiple that you add into that, that is a mystery as well. jonathon: $550 billion to you do. it is onto the next one. lisa: it is onto the next one, which is a reconciliation bill.
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in the meantime, we are starting to get language around this. the question that i had is how much of the potential tax hikes are being baked into the assumptions. basically -- people basically counted the increase in taxes. but if this plan gets passed, that is very much on the table. jonathon: let's get you the price action. your equity market is shaping up as follows. we go nowhere on the s&p. into the bond market, 131.86 and about half a basis point. we started the day at 131.87. that is where we are right now. euro-dollar, take a look at investor confidence in germany. absolutely plunging. euro-dollar a little bit weaker. lisa: you are definitely seeing the delta variant crimp potential growth. having mike to go back to school and having him sent back home
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because of -- having my kid go back to school and having him sent back home because of covid cases. meanwhile, second quarter productivity and unit labor costs. this is important. it may sound to some tarik, but higher productivity -- it may sound esoteric, but higher productivity is something that can lead to higher inflation rates. companies are making more from each individual employee, something to be watching. 10:00 a.m., the fed will be speaking. it is interesting to see if they will hear from others coming out and saying it is not going to take much more to start a tapering discussion. he said he needed one or two more hot labor market reports before he would be ok starting to pare back the $120 billion of bumpy bond purchases. the u.s. treasury department continues bond sales.
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interesting to see whether investors start to price in more rate hikes. so far, they are not even buying the fed's predictions that they are going to raise rates as soon as 2023. jonathon: thank you. 30's later in the week. president bostic coming out swinging in the past 24. i am in favor of going relatively fast. i am confident these markets will continue to function, even with a rapid withdrawal. he is looking for a quick removal. tom: i think this is a back story. the nuances we see coming across the bloomberg terminal of winter taper and to me, -- when to taper, the most important thing is for the audience to understand that this is not a one thing. it is a two-part discussion. it is simple. it is going to be multi step. jonathon: that is monetary policy. let's talk fiscal with hugo rogers.
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your line, the reconciliation reckoning is both more consequential and more controversial. walk us through it. hugo: it is $550 billion. and the $3.5 trillion. the whole spending package is a way of digesting a big meal. this part is easy. the second part is much harder and that is why he thinks he can push through reconciliation. bridges, roads, tunnels, waterways and broadband, that is easy. education, healthcare, changing the social contract is going to be much more difficult. with a 50/50 split in the senate , every one is going to be on
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the democrat side. it is going to be much more difficult. tom: you mentioned the consumer umph we are going to get out of this. how do you bring that over into the stock market? are you bull marketing up at dell tech -- deltec? hugo: we have been very bullish for a long period of time. we were able to keep from coming out at the bottom. we are suggesting that the rotation does continue if the delta variant does cause inflation -- vaccination rates to pick back up again. it has already in the u.k. and india. we are working to be pretty selective. we are liking the consumer discretion cycle a lot. we very much are trying to get a
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hold of that unspent cash that is sitting on consumer balance sheets that is going to continue making its way into through profits. we have seen that from the reporting season. excellent numbers and excellent profits. it is still going to be -- jonathon: some companies are struggling to keep up with cost. costs are hitting us faster than we can get pricing at this point. that might be a problem in the coming quarters. lisa: if you take a look at mike wilson of morgan stanley, he said we think estimates next year make an are based -- are based upon unrealistic assumptions. he thinks people are too optimistic. would you agree?
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do you they people are overestimating the pricing power based on what we have seen, which is an unusual circumstance? hugo: that is a key consideration when pricing equities. we have seen that the recent reporting. we have seen a number on food companies and household product companies, all disappointed because they cannot push through price increases. transportation is a very nice market. there are bottlenecks right now. we are well aware of companies who do not think they will pass through price increases. we saw 90% of companies upon recent reporting saying they have an inflation problem to deal with. we think that will persist. some benefit from price increases. jonathon: there is a question as
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to whether the supply constraints will heal. is that still your base case? hugo: yes, but slowly. they will heal. there are big forces of inflation. technology is still broadly global excess capacity. we have loads of bottlenecks. in production and mining, labor. free movement is restricted when covid is still around. we are expecting it to be slow and that will keep inflation high, but not exploding to the upside. jonathon: interesting. it is good to catch up. hugo rogers of deltec bank
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interest. listen to the earnings calls, go through the transcripts, come up with the buzzwords. dimensions of inflation has jumped to a record high this earnings season, up 900% year on year. labor and supply chain inflation mentioned more than doubling year-over-year. that just gives you an idea of where the focus is right now. tom: the focus is there, but the focus is on revenue and profit. i'm going to go back to the nuances i see including dollars stronger against some of the recent resistance. i can go on and on. real yields constructed and the actual yields constructed. a higher year -- yield there as well. it is everybody off of earnings recalibrating profit optimism and revenue optimism. jonathon: earnings looking bad, margins look good. looking forward, can they remain insulated.
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lisa: i want to point out one data point. yesterday, the idea that job openings have surged above 10 million. it rose more than people expected. this raises issues about labor market frictions being resolved. it is moving in the wrong direction and it is becoming clear in a lot of labor demand surveys. jonathon: i will bring up that chart a little bit later. the rate is starting to pick up. you will have to pay for this. you might have the demand for labor, but you will have to pay for it. tom: a booming survey is wildly optimistic. jonathon: i cannot agree more. how much will they have to pay? tom: they will pay. jonathon: mike wilson of morgan stanley. lisa: they will pay. [laughter] tom: they will. jonathon: you are fired up. i can hear it in your voice. euro-dollar slyly negative at 117.23. tom keene, lisa abramowicz,
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jonathan ferro. this is bloomberg. ritika: president joe biden's big plans are about to pass their first major legislative test. a group of sedatives is set to approve a $550 billion infrastructure program. democrats will be able to bypass republicans on the next part, a $3.5 trillion budget resolution that would expand health coverage, childcare, and education benefits. atlantic's fed presidents says the fed should move to taper asset purchases of another strong month of employment gains. he tells us the economy is improving faster than the models predicted. the dashing of the addition of over 900,000 jobs in the last -- he notes the addition of over
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900,000 jobs in the last month. 38 states have transmission levels considered high by the cdc. the other 12 states in washington, d.c. have transmission rates in the second-worst category. the european union has decided not to reinstate restriction non-essential travel from the u.s.. that is despite new covid cases in the country exceeding the threshold. the guidance from the eu is nonbinding. the government in each member states can decide whether to follow it. global news 24 hours a day on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in over 120 countries. i am ritika gupta. this is bloomberg.
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hours and is going to make a difference for people in my home state who are looking at roads that are in need of repair, bridges that are past their useful life, and families that are sitting in mcdonald's parking lots trying to get connected to broadband because they do not have it at home. jonathon: we are almost there in washington, d.c. from new york city, good morning alongside tom keene, lisa abramowicz, i'm jonathan ferro. equity futures a little bit softer, down by 1.5 points. we are -0.03%. yields come in by about one basis point at 130.152. euro is weaker off of the back of softer german investor confidence. before we get to the fiscal conversation, the latest from the federal reserve. this coming from dow jones, "members of president biden's economic team generally support
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nominating jerome powell to a second term. growing resistance from prominent democrats including elizabeth warren could lead to his replacement according to people familiar with the matter." every week, we have a push forward on this story. tom: it is a power game. it is no different than the vaccine debate. there are different views within the white house, outside the white house. everyone is nudging this forward. i don't have a clue with -- what they are going to do with chairman powell other than he gets high marks from republicans and democrats for his efforts in our natural disaster. jonathon: we have a handful of democrats who do not like the financial regulation side. can they change the game? i think that is the question. tom: i don't know. we will continue this discussion. we have rich miller down in washington looking at this as well. i am starting a new program.
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every time a politician opens their mouth, i will go look at their voting results the last time around. we just had tina smith, the junior senator from minneapolis and the reality for her, the democratic party, she won 48.8% to 33.5% in the 2020 election. she is a moderate because she has to be. what are the moderates doing this morning? annmarie: good morning. what they are trying to get a hold of in the house is what we are seeing now is how do they get through the bipartisan infrastructure agreement, which they are saying to speaker pelosi, we want to move immediately. we don't want to wait for a budget resolution. how do they try to get that budget resolution a little bit lower so they can go back and say, i did not spend as much as the progressive left wanted me
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to. tom: what is the timeline on this? i am fascinated by this. there is a house equivalent to senator sanders. i will let you name the three names. how are they going to push back against moderate democrats and moderate republicans? annmarie: there are a few things that are going to be in this package that a lot of moderate democrats like, especially where you guys are sitting, the salt tax relief. that will be huge for a lot of moderate democrats. we already see that language in the resolution. the timeline is going to be tight. you already have the house in recess. they will be in recess until september 20. if they want to remain on this timeline, we could have speaker pelosi bring this back. it could be a ballet between the two. lisa: stockmarkets are not currently pricing in tax sites -- tax hikes.
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if the bill gets passed, there will be tax hikes. how realistic is it that this will go through with tax hikes as proposed? annmarie: this is something they are working on. you see the senate finance committee saying they're going to bring up options when it comes to tax hikes. tax hikes on corporate america as well as the most wealthy. the administration and the budget resolution say they will not tax anyone higher that makes over $400,000. we are waiting to see what those options will be. we have the biden administration floating a corporate tax hike as high as 20%. it is not going to fly. lisa: basically, half of this plan is financed through debt and half of this plan is financed through tax hikes and other revenue sources. can that get through without a battle with the debt fueling debate that is upcoming, that is not going to go through with any
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sort of ease if this is how the democrats are coming at it. annmarie: very good point, lisa. in tandem of all of these package, which infrastructure will likely get the go-ahead this morning, they have to decide how they are going to approach the debt limit. a key point yesterday when they release the budget resolution was there was no language in terms of debt limits, which means democrats want to do it on a bipartisan basis. republicans say you have the control. you are the ones who have the trillions of dollars of spending. you raise the debt limit. no one wants to be responsible to be the ones who have raised the debt limit. politically, it is not something you want to deal with. jonathon: we have inflation data in america tomorrow morning. we have one of the biggest food producers in this country, tyson foods, coming out and saying he cannot keep up with cost pressure. he cannot put prices up quickly enough. how is this playing out in the
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sea with everything -- in d.c. with everything we talked about? annmarie: republicans are pointing to inflation. mitch mcconnell talking about the fact that how do you have $3.5 trillion when we already have high inflation in this country. more interesting is what you have last week from senator joe manchin, writing a letter to fed chair powell talking about the fact that he thinks inflation is too high. but most democrats tow the party line, we think it is just transitory, and we think it will start to pull down. we will see these bottlenecks start to quell. jonathon: thank you. that is the issue. do these supply constraints heal? allow -- a lot of people quoted the tyson foods ceo.
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because of the shortages, especially on the labor side, it is becoming a bigger issue. that is what we have to tackle. tom: you go to the income statement and some of these industries are running already with narrow margins. i really take issue at how the media homogenize is margins across different sections. apple's margin is a little different than tyson foods. jonathon: that is fair to say. when we go back to the chart that lisa mentioned the top of the program, job openings in america are skyhigh. our next guest came up with a great line earlier this year. she said, "who said it would be cheap to reopen? it was always going to be expensive." the question is how expensive. how much will it cost to get supply to meet demand? lisa: and who pays for it? so far, consumers have paid for a lot of it. jonathon: sarah house joins us
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♪ jonathon: from new york city, here is the price action this tuesday morning. your equity morning little bit wider. at a close yesterday, 44.32. we are looking for year-end 2022 with a little bit of construction. get to the bond market, it looks a little something like this this morning. 131.19 on tends to goldman at 160 from 190. we saw the call from j.p. morgan. they are looking for 175. some of these have just started to come in a little bit. 195.45 on thursday. let's finish on this. from what degree will your hopes
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and dreams about supply-side stories healing into year-end be dashed by what happens in china and when will that start to show up in the fx channel? 64.830. we are at 648 right now. this has been super stable, even with what is happening in china. tom: it has been super stable. i think there is a huge mystery in the development of gdp in china other than they did not have a choice. they have to get it done. they have to manage their way to 6% gdp. jonathon: we have seen the forecast, j.p. morgan, goldman sachs, yet it is not shaping up in the fx market. do you think that is the key debate? the hopes and dreams that were fueled by the u.s. labor report that the supply-side story would heal. the news in china is less
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encouraging. tom: i have to go with 30 year bonds at two -- out to 1.5%. there are lots of nudges toward a more constructive space, including a strong dollar. 93 on dxy. that is a good number. sarah house with us of wells fargo. i want to go back to the core analysis of gdp. how would you tweak your gdp call out to the end of next year? what supply tasks that wells fargo sees of a boom economy becoming something else? sarah: we see some emerging downside risks to that outlook and that we are going to see a sharper slow than we anticipated , even only a month and a half ago. coming from a number of channels, one is that we have seen supply constraints remain intense and it does not let larry -- does not look like they are going away anytime soon.
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at the same time, we have the emergence of the delta variant. that is going to chip away at some of the demand we were expecting. you also have the inflation picture. that is eroding the real rate of spending in the economy as you do see some sticker shock among some items and consumers may be not spending quite as much as folks thought. tom: what is the consumption dynamic? if it is sick the 9%, 70% of the american economy. if we get further stimulus, how does that devolve into your gdp call? sarah: consumption is still the primary driver. we are still looking at spending well above trends, both from the consumer sector and in terms of business investment. i think we are going to see that that is factored into trends a little bit faster than what we were previously expecting. you do have more substantial
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inventory rebuilding that needs to be done. that is going to be keeping top line gdp running above trends for a couple of quarters longer in terms of the spending side. you do see probably a more market slowdown than what we were looking at previously. jonathon: it was interesting in the payrolls report, a lot of people run away with the headline numbers. did not hear much about wages. we talk so much about demand in this economy, job openings in america. how much will it cost to close that demand-supply gap in the market at the moment? sarah: it is going to cost more. we saw a pretty strong gain in average hourly earnings, especially when you consider the fact that half of the private sector payroll gains were coming from leisure and hospitality sector. that is a place where wages are up 8% since the start of the year. you are seeing particularly at the low end where you do have more in person interaction and you do have that replacement
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wage from the unemployment insurance benefits. you do see some wage pressure and that is something that is going to keep the heat on overall inflation, even as you do see perhaps some of the supply bottlenecks begin to ease. you still have a lot of pressure coming from the services side as the labor picture remains very tight and it is taking longer for people to get back into the labor force. jonathon: that price pressure from your perspective will persist potentially into the new year. to what degree is your call shaped by that? sarah: we are above consensus in terms of inflation because we do think there is more price pressure than is generally appreciated. in terms of our call, we do not think the fed is bothered by this degree of inflation. when you look at inflation
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expectations, they have risen, but they are still well within their historic range. the fed has taken a lot of hard to by that. they are very much focused on the labor market and the near-term hurdles that have emerged with the delta variant and the timing of which we are going to get clarity on to what extent are these pressures transitory. even though we are above consensus in terms of inflation, we are looking for a formal paper announcement in december, somewhat later than a lot of other major forecasters. lisa: our wages starting to rise at a -- are wages starting to rise at a faster pace? this is an important question to determine whether inflation is good or bad. sarah: it is getting close and to some extent, you need to dig into the details. we are looking for inflation to increase 0.5% in the july cpi report out tomorrow. that is under what we saw in
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terms of hourly wages. if you adjust for composition effects and look at how strong wage growth has been, you are actually seeing them do a better job of keeping up with overall inflation where we have seen in leisure and hospitality wages rising at roughly 50% over the past -- 15% over the past three months. lisa: i do wonder how much the delta variant and the spread affects this or accelerates potential wage gains at a time when people have more fickle schedules with schools trying to reopen, but quickly having the same constraints they had yet -- last year with respect to covid cases and quarantines and all that. sarah: i think we will see ongoing pressures on the supply-side. a lot of forecasters and everyone was hoping to get back to a much more normal state this
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fall. i think the reality is really hitting for a lot of parents that kids are not going back to in person learning on a consistent basis until we really get covid under control because there are going to be outbreaks. you throw that on top of the ongoing health concerns because of the new variant and it is going to take longer for that supply to come back than what many people were expecting. jonathon: who should i listen to from the federal reserve right now? president bostic, president kaplan, which one? sarah: i think you need to listen to the chair. i think that is what is going to make jackson hole so important is whether he will start leaning more toward this bostic camp or if he is looking for additional clarity or waiting to get more clarity on what is happening on
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the supply-side. how much of this inflation pressure is here to stay. jonathon: follow the chairman. sarah house, thank you. sarah house of wells fargo, senior economist. a lot of people on wall street looking to chairman powell. tom: your two-tone llama cowboy 10 gallon hat, you will be looking out across the deer and antelope and they are a couple of fires with smoke coming up with smoke signals. the indians in the old days did communication by smoke signals. that is all this has come down to his the smoke signals. jonathon: that was a pretty shallow description of american history. thank you. tom: smoke signals. lisa: i'm trying to imagine the two of you being camouflaged anywhere and i am finding it hilarious. there is no chance.
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jonathon: i have been shooting with matt miller before. never tom keene. i have a great patient with some shotguns. very matt miller. i don't know if it was very me, but it was very matt miller. tom: i am still getting over your realization of john denver lyrics. jonathon: i don't have the lyrics on the screen now so i cannot pretend. your equity market looks like this, we are unchanged this tuesday morning. 31.36 on 10. it is a no drama tuesday morning. tomorrow, things get more interesting with inflation data. lisa: there is more going on. i have to highlight some things that sarah house said. people are not going to see their kids going to school in full in september and that is going to keep these labor market pressures going. what does this mean for margin pressures? i know it is not a monolith, tom. each company has a different story.
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on the margins, this is going to be an issue. who pays for the higher costs and those higher costs are not going away that quickly. jonathon: what does morgan stanley have to say? lisa: morgan stanley things we are underestimating the margin -- market pressures. they think price-earnings ratios are too high at this point. that is relevant. that is important at a time when everyone is all bulled up. jonathon: you can look for multiple constructions and have this fantastic view on earnings. tom: there are other people on board with mr. gallup on that call. i have set this all along. it is about a boom economy and profits. jonathon: from new york city alongside tom keene and lisa ramos. -- lisa abramowicz. your equity market is unchanged this morning. good morning. this is bloomberg.
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ritika: the u.s. senate is moving closer to passing the $550 billion infrastructure bill. a vote is likely late this morning. once the measure is passed, democrats plan to reprove a budget which will clear the way for passage of the rest of the economic agenda. they can do that without any republican support. for the first time in decades, american workers are calling the shots. companies such as kroger and chipotle are pushing up hourly wages to twice of what they are paying employees. others are offering hiring bonuses. it is the biggest pay hike since the early 1980's. wages in the hospitality industry have risen at an annual rate of 6.6%. the u.s. is preparing to send coronavirus vaccines to mexico. mexico has amassed -- is among the countries hardest hit by the pandemic was almost 250,000 deaths. the u.s. will send mexico vaccines from astrazeneca and moderna. in china, the central bank is
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fanning expectations of further monetary easing. the people's bank of china said that inflation pressures are controllable. at the same time, the bank highlighted risk to the economic growth outlet. economists are calling for interest rate cuts. a billionaire industry is considering a bid to put deutsche telekom. the german company is seeking $5.9 billion. it relies on market value. a game -- deal would represent a world purchase in europe. global news 24 hours a day on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in over 120 countries. i am ritika gupta. this is bloomberg.
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closing schools, and masking children who have no choice, for the government to mask children who have no choice to protect adult who do have a choice is the wrong thing to do and we are not going to do it. we are not going to shut our state down as other states did, mandating masks is not the answer. jonathon: the view from south carolina. governor henry mcmaster. good morning alongside tom keene, lisa abramowicz. the price action shaping up as follows, s&p basically unchanged. yields in at 131.36. north of 130, that is the change over the last week. last wednesday, a little dip at 112 again. euro negative, a weaker euro. german investor confidence not going in the right direction.
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absolutely plunging this morning. tom: no question about it. we are going to continue our debate with amesh adalja. dr. adalja, i don't know if you heard the governor of south carolina. what does a pro like you think when you hear politicians, prosecutors, history majors at the university of south carolina play scientist? how do you respond to that? dr. adalja: what we want is the state cap's republic health guidance to reflect the science of covid-19 and the best practices. it has to be a priority that schools be open for in person learning and it can be done safely. we knew how to do this in the pre-vaccine era. many governors are wrestling with this question as variant cases rise because of the unvaccinated populations that still does not get vaccinated in
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these states, which makes it more complicated to open schools. but i think we can do it and it should be something that needs to be done, but it has to reflect the epidemiology and the reality of transmission. tom: are you impatient that we have not gotten to full fda approval of the mrna vaccines? is impatience warranted? dr. adalja: definitely, impatience is warranted. this vaccine has been given to hundreds of millions of people all around the world. we have a lot of safety data, efficacy data, and the fda, even though they are doing a priority review, that is not fast enough. this is something holding back people from getting vaccinated. many people keep using the claim that because these are available only on emergency use authorization, that somehow it is experimental and is leading to vaccine hesitancy. many countries -- companies and organizations are demanding the vaccine until it is fda approved
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because they feel they are on stronger footing when they do so. these things are getting held back because the fda has not approved it. they say it is probably going to happen this month. it needs to happen today. the quicker this happens, the better it is. we cannot allow bureaucracy to slow vaccine uptake and that is what is happening. lisa: you say it should be a priority to open schools in person. a lot of people agree with you. you said it was possible even in the prevaccine era. does that process include cutting down classes or sending people home who have contact with people who have covid, which can be disruptive? dr. adalja: definitely there is going to be disruption if you are in an area with high transmission. what we want to do in schools is designed them in such a way that the classroom does not lead to exposure. if you have a place in high humidity prevalence, you have to be careful about where you seat children, what types of activity they are participating in. the affections that occurred in
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schools in the prevaccine area were not due to sitting in a classroom. they were extracurricular activities, sports, cheerleading, dances. those types of things are where we saw exposure happened. schools need to prioritize the pedagogical world. you need to have class b the priority, not being on time for football practice. that is something that did not happen in the past and we can minimize exposures so you do not have to quarantine students. it is easier now because we can get all of the teachers vaccinated. that can be something school district mandate. children above the age of 12 have the ability to be vaccinated. we have other mitigation measures like masking for unvaccinated children, masking for high-risk activities. we can do this because we know that the children suffered a lot during this last school year, not because of what the virus did to them, but what a dose did to them and what teachers unions did to them. -- what adults did to them and what teachers unions did to
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them. lisa: there is also the question of the message from the fda, from the cdc, and how consistent it has been in order to get the confidence, the reputational support in the community that it needs. do you think it has undermined its message by sending conflicting signals over the past few months? dr. adalja: definitely. when you look at the way the cdc guidance has changed and their messaging, first, they undersold the vaccine and then they moved quickly and people did not understand where that came from. i supported the guidance that fully vaccinated people needed to wear masks and then they changed it again based on a study done in massachusetts, which is not applicable to the everyday life of vaccinated people. this messaging goes back and forth where people are unclear what the actual truth of the message is, especially in misinformation that they have on social media. all of that makes it hard for the average person to actually trust public health authorities. this is a major problem that will have cascading impacts past
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covid-19, that the public health communication strategy is something that really was flawed and something that made our ability to respond to this pandemic much worse. jonathon: should we be looking to the u.k.? is that a decent template? dr. adalja: we should be looking at the u.k. because what they have done is vaccinated enough people that even with delta variant cases rising, they did not have a consequently rise in hospitalizations. that is that de-coupling that we talked about. we have to come to a point where we approach this like a respiratory virus that we know is going to be with us forever. it is not sustainable to shut and open things. we have to come up with a path where people are vaccinated and remove the ability of the virus to threaten hospital capacity, but then we teach people how to understand what are the best practices to keep covid-19 from disrupting your organization. well we have done so far has been abstinence only and what we
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really need to show people to live with this fact -- this virus. jonathon: delta, we cannot eradicate it. dr. adalja, johns hopkins senior scholar. just putting out some data, seated diners via the opentable data commences -- these are the five the average is. that is the story. not just how policymakers respond, not how corporations respond, but how consumers respond. tom: you see the confusion. you go into mcdonald's, you're going to see the same thing. there is massive confusion out there right now. it has to be a diminished attendance. jonathon: coming up, why they are looking for something south of 5000 on the s&p and why jonathan gallup is looking for something in and around 5000
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>> the fed is really turned the maximum extent of employment. >> we really have to keep our eye on who is in the labor force, who is coming back. >> we are ultimately going to stabilize to a more modest growth rate. >> inflation is going to stay somewhat more elevated and stickier than people anticipate. >> wall street may still be drinking the fed's kool-aid that this inflation will be not an issue at all. >> this is "bloomberg surveillance" with tom keene, jonathan ferro, and lisa abramowicz. jonathan: here comes the deal down in d.c. 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 is down a single point on the s&p. the focus on washington, a deal coming together. tom: a deal coming together on
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