needs to find a place in the market. that is why it will be hard to see significant selloff. >> corporations will morph. they are dealing with low interest rates. they learn how to raise prices. >> fed does not taper at jackson hole but we know tapering is inevitable. >> chairman powell said we will get off eventually but not yet. that gives markets a couple months of runway. >> this is bloomberg surveillance with tom keene, jonathan ferro, and lisa abramowicz. tom: good morning, everyone. simulcast on bloomberg radio and television, taylor riggs says she has to stay with us until the market goes down. she is here again this morning for jon ferro. lisa abramowicz, what a lift yesterday in the equity markets. lisa: what a lift every day. we pushed -- we are pushing for the 54th highest a. this comes on yields, people are getting more complacent that the

fed has this right that they have it under control and they will tamp down inflation and allow the economy to grow at a steady and relatively slow pace going into the future. tom: a big lift today, futures up, and taylor, what does it look like for the afternoon? we are completely set on what europe is doing in asia following along in the morning. by the time you get to 3:00 or 4:00, you have a different view. what did it look like yesterday afternoon? lisa: we talked a lot about the russell outperformance. yesterday, all of that unwound and you got underperformance by this reflationary stocks that we have seen. i hate to break it to you but by the afternoon, the s&p 500 typically does not look much different. we are on track now, most record highs from a january to september 1 ever. as lisa said, 53 highlights all of those fires on the sidelines, cash on the sidelines. tom: they 15 handle on the vix a moment to go, saying all you

need to know about this equity market. for me, of a certain vintage, it was extraordinary yesterday afternoon to see the tweak come across in the language in tight fond of central command saying we have left afghanistan. i must admit i sat there shocked. lisa: i think a lot of people dead, even though this was telegraphed, the idea after 20 years it was over and that they follow through on a timeline, despite turmoil, despite pushback. the question is, what comes next in terms of drone strikes? in my opinion, how do we deal with allies not necessarily that happy with how this all went down? then you have the refugee crisis. what we doing with all of the people that left and are trying to find places to get settled? honestly, a dramatic cap to 20 years of fighting that ended yesterday afternoon. tom: that is where we sit on this tuesday and going into three days towards the labor

economy report on friday. just extraordinary to me to see where we are. in bonds, you see it indicated into 1.28. yields don't want to go up. no other way to put it. lisa: we saw current inflation data that we are getting continues to increase. in europe, the fastest pace of inflation since 2011. in the united states, higher housing prices and looking aluminum prices that rose to the highest in 10 years. traded on the metals exchange come on the heel of production in areas in addition to higher demand. talking about prices, 9:00 a.m., the fah house price index. expectation for is an ongoing heed. housing prices have grown in some of the fastest pace we have seen in u.s. history. this is crimping confidence for some of the homebuyers. they have been priced out of the

market. this is why you see a slowdown in sales. an unexpectedly big slowdown. how much does this read into consumer confidence declining as well as people's ability to spend? 10:00 a.m., we get a read in the u.s. conference board for the month of august. the question is, how resilient is the consumer? the labor market continuing to revive in the face of a delta variant. to your point, president biden will deliver remark from afghanistan, a monumental moment, one a lot of military experts support in terms of the overall goal. the message is under scrutiny, the path on forward highly uncertain. tom: it will be interesting to see the president's comments and news flow extraordinary in this end of summer 2021. let me look at the data before we get our guest. the equity market, i do not know what to say, 45.33. i will give the levels on spx,

up an additional nine points. the dow, 35,430, maybe not participating like others yesterday. nasdaq 100 on a tear, 15,634. russell 2000 leading 2273, up 70 points this morning. the vix, 16.02 and the yield space is 1.28%. 30 year bond under a 1.0, that is a big deal for me. in the foreign-exchange space, we give back the dollar strength we have seen. yen near a 110. euro is watching -- what we are watching more than anything. he watches the euro on an hour-by-hour basis. the citigroup global head of foreign-exchange, but much more than foreign-exchange, folding in the sum of all of its parts.

how correlated are the markets right now. -- right now? >> they remain correlated. if we look at the fx market, one of the major at stake is what happens in interest rates and what happens in terms of global risk appetites. fx has been moving more or less in tandem. that being said, for the dollar specifically, it means it is called in the crossfire to a degree. it has get in a little range bump over the last weeks. lisa: it raises the economic question, what could potentially push the fed to act more quickly and create strength in the dollar. this could disrupt the rest of the fx world. what are you looking for in this jobs report on that front? ebrahim: i think when it comes to the fed, they -- there are drivers that matter a lot and much less. the latter category was the

later takeaway out of jackson hole. therefore, we do not think there is that much this report can do for the directionality of the dollar beyond the day itself. what is more important is what is the outlook for the feds. -- fed's hiking intentions. i do not think this report will do a great deal. i think it will be a time until the fed becomes the major market driver again. lisa: that's fascinating, especially when we look at what is happening in europe with the inflation price this morning at the hotter since 2011, hotter than people previously expected. how much does this bleed into the potential for dollar strength, euro weakness as we look at inflation really pick up and we have people recognize that in the fx world? ebrahim: yes, there are two different -- two interesting information here. in europe, inflation has crept higher anyway that few expected. i think that puts a spotlight onto what the ecb may do with it

in just over a week from now. they themselves have to consider whether to taper asset purchases. our expectation is they will be slow in indicating that. i think this could increase the urgency for them to wind down their asset purchase program, and that in turn not so much as a euro negative factor but it could suggest there's more upside, expectations for the outlook in the coming weeks. taylor: we also saw china pmi's weakening overnight. i'm curious how that impacts our inflation, if they are exporting it and we are importing it, is it transitory? ebrahim: i think china is in fact global growth -- global growth more generally, that is the key question for fx. to some degree, it is a debate of reflation versus stagflation. what we got out of the china pmi's, maybe the manufacturing part held up, and that tends to be the more important between

the two. what was striking his nonmanufacturing was weak relative to expectation and relative to the previous trends. so some warning signs but they're not necessarily inflationary to a degree the amount and china is falling back in line with some of this friction. we do not think it feels inflationary impulses but it does leave the major question open is where does global growth go from here? the dollar tends to strengthen when global growth weekends. that i think is the -- weakens. that i think is the key. tom: in our collective memories, there are emerging market crises, ecuador, mexico, on and on. do theater -- do you feel like we are near stability with emerging markets or is it steady as we goes given the information flow? ebrahim: for now, we think the risks in emerging markets are more idiosyncratic than synthetic.

that is in the context of expecting global recovery will persist in chinese growth will bottom out and do ok. this is one area where eventually fed policy in interest rates could matter a great deal. our chief economist highlighted that the other day, emerging markets are not any position where they can whether a major increase in u.s. interest rates as well. for now, it is reassuring to see u.s. interest rates are really subdued. under that scenario, we think emerging markets will in fact be an interesting opportunity. but again, it is with a bit of stomach ache because we are all confounded by how interest rates in the u.s. are. if that changes, i think that's will make a more common emerging market crises a lot more likely. tom: ebrahim rahbari, thank you for joining us today with citigroup on dollar. i will just call it stunningly range bound here. there were a lot of different opinions out there on where the

dollar is a major pairs as well. lisa, you know to some thing that was special. lisa: i think it's fascinating today's inflationary data is perhaps something that will pressure the european central bank to reassess their bond purchasing program and possibly taper it. i wonder, perhaps the u.s. taper is not a big deal. but if you get a u.s. taper and european taper and you start to withdraw liquidity? then what? tom: that is a point on liquidity, i would say we are being overwhelmed by liquidity given what we saw in the equity market yesterday. many good conversations on that. spx up eight points, better than yesterday morning at this time. from new york, this is bloomberg. on radio and on television. ritika: with the first word news, i am ritika gupta. u.s. military presence in afghanistan ended after nearly

two decades. the final flight carrying american troops left yesterday after an evacuation of more than 120 thousand people. -- 100 20,000 people. some wanting to leave afghanistan were not able to get to the airport in time for them to evacuate out. new orleans faces power outages from hurricane ida. more than 2000 people across the regio lack electricity. after hurricane katrina, the city was devastated. an advisory panel recommended the coronavirus vaccine made by pfizer and biontech on a final signoff that would help the government and business. the recommendation needs a final nod from the director of the cdc. in china, the economy took a hit from the delta buyers -- virus outbreak. manufacturing was had by supply

chain problems at the same time confidence amongst more businesses we can then consumers cut back on spending. apple is looking to add space for an iphone upgrade. it bloomberg learned the companywide sidelight features for iphones for emergencies that will allow users to send text to first responders and report crashes in areas without cellular coverage. features are unlikely to be ready until next year. 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. ♪

>> now, u.s. military and our

troops have departed afghanistan. the new challenge with afghanistan has begun. it is one we will lead with our diplomacy. tom: the secretary of state, antony blinken, the u.s. secretary of state with a message this morning. this is a movable story and we will move it forward. john bolton will join us i believe in two hours. check fitzpatrick with bloomberg government to get out in front of ambassador bolton. jackie, ambassador bolton is completely focus on pakistan. watch will be the new united states relationship with pakistan? jack: you could argue the relationship of pakistan is even more important given the instability in the takeover of afghanistan by the taliban a little hard to predict exactly what that relationship will be

and a number of countries are looking at afghanistan as a significant unknown. i think that is something the executive branch in congress will have to debate over the next few months as the president tries to outline a long-term vision and secretary of state tries to outline a long-term vision for what this all means. this changed more rapidly than the president expected in terms of the taliban takeover, so there will have to be sort of a almost a rethinking of how quickly the u.s. adjusts expectations for what the middle east is going to look like. tom: the middle east but also frankly central asia. expending geography, it is the united states -- and there are the emotions of the troops leaving in comparison to 1975. do you detect between state and defense some form of adjustment

or shift in our broader central asia policy? jack: the broad view on this i would say is the biden administration is keen to shift away from the middle east and maybe even central asia or western asia toward east asia. this does affect that. afghanistan even shares a small portion of the border with china , and china is another country that has seen a lot of unknowns in what is happening in afghanistan. i'm not sure that there is necessarily a regional strategy that has been clearly outlined on central asia, but the broad view seems to be a biden push to have less of a u.s. presence in and around afghanistan and the

middle east in western asia and increase the focus on the u.s.'s relationship with east asian countries. lisa: in the near term than sort of the broad strategy the u.s. is affecting, there is a refugee issue, a fact a lot of the people who have left afghanistan are trying to get in other countries, including the united states. has the u.s. open to borders to these individuals, especially as the european union tries to keep them in the neighboring countries and see if you can do that and not bring them here? jack: to some extent yes, there will be some afghan refugees coming to the u.s., and there may be some political controversy over that, though there was some preparation. congress even acted before the u.s. fully pulled out and provided a little extra money to process these special immigrant visas ahead of time. what we are seeing now is to a

greater extent than anyone anticipated a month or two ago. the question is outstanding in terms of exactly how many refugees will be coming to the u.s.. we are still in the stage in which there are small number of u.s. citizens trying to leave, so there are blurred lines in terms of exactly what to expect with people coming to the u.s.. that was a debate that was at least partially has to out -- partially hashed out in setting the expectation, some afghans, especially those helping u.s. troops, would come here. lisa: there are reports that the war in afghanistan spent about $20. those will be diverted to other efforts, including solidifying a presence in east asia. can you give us the nature of these assessments, especially since the nature of war in 2021 is different than the nature of war back in 2000?

jack: for one, it is hard to put an exact number on the cost of a war. if you look at estimates out there, some of it is around one cholla dollars, sometimes you see numbers around $2 trillion -- $1 trillion, sometimes you see numbers around $2 trillion. it could go on for many years and it is hard to pin that number down and it could grow for a long time even after a war ends. i would point out even as a biden administration shifts its focus, proposing a little less of a focus on military spending, which will be controversial -- already is controversial, the biden budget proposal effectively wanted to flatline defense spending, so even as there was an increased focus on east asia, there is a little bit of a liberal push to reduce defense spending, at least at the percentage of the american economy. that is getting a lot of pushback and, tomorrow, there

will be the first stage of marking up a defense authorization bill in congress. there will be a significant fight over that for the months to come. that is as lawmakers in the executive branch try to determine what this country will be spending on and how it will be spending money on the military. it is an open question and the biden approach has been more in line with what you hear from the left, in terms of at least mildly reducing expenditures for the near future. lisa: on that's, -- taylor: on that's, what will the takeaway look like from this and the coming months? jack: it has to play out still one has a number of americans that want to leave hopefully are able to leave, the number that secretary blinken yesterday could be about 100 or so, somewhere in the low hundreds.

there will be some further scrutiny. the chair of the house foreign affairs committee recently called on secretary blinken to testify on the details of this pullout from afghanistan and how it went, so there's probably going to be some congressional scrutiny on this short-term issue we have seen on the messiness with the u.s. pullout, and that is something that could last for a number of weeks if not longer as clearly there is a lot of putting back from both parties on how exactly this when the last couple weeks. tom: thank you so much, greatly appreciated this morning. our bloomberg government reporter. the chancellor of germany, angela merkel, saying the airport in kabul is up "axis -- is of "existential importance:" to afghanistan. -- importance" to afghanistan.

yen stoltenberg of europe will be near the tenet like our. it is a market that cannot code down. the vix, 16 point 10. on radio and television, this is bloomberg. ♪

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tom: "bloomberg surveillance," good morning, everybody. jonathan ferro off today. unsure when his sabbatical ends. it has to do with the final proof of his galley on drawdown meditation. we are looking forward to that. jon will be back and we can talk about how the book is shaped. in the next hour, we look forward to the jobs report. with taylor riggs helping out this morning, conrad to quadro's joins us. we are thrilled he could be with us. an equity lift to the market and bond lift anyways. price up and deal down. taylor, why don't you do data and tell us where we are after what you observed yesterday afternoon. taylor: you ask what changes in the afternoon and frankly, if you saw the lift yesterday, 53

record highs. if you think about a january to august 31 or september 1, this has been the most record highs in any of that year that we have seen going back ever. this really shows you may be the liquidity and may be the optimism, flooding the system. it is the right -- the reflationary tray that picks up today as the big outperformer. the big question is, how do we get the reflationary trade if yields are not moving. you are at a 1.9 on the 10 year and -- on the 30 year. below a 2%, i yesterday, and a 189 catches my attention as well. we did get a few earnings yesterday, the first of which is zoom. morgan stanley came into this report and they were optimistic. some of that weak guidance took the shares down 12%. robin hood is recovering, down 8% earlier. they have an interview with the

seg -- the interview they had with the sec chairman, that order flow is still on the table. tom: thanks so much. greatly appreciate it this morning. on the market lifting, on bond prices lifting, the liquidity out there, conrad dequadros. something central banks have had to deal with, this wall of money. let's begin with, is the fed concerned about the will of money driving asset prices -- wall of money driving up asset prices? >> when they get asked that question and when the debate shifts to what qe is doing for considerations, they don't seem particularly concerned. it goes back to that view that it should be addressed by regulatory actions or it is not really monetary policy issue for them. i think it is more of an issue than they make it out to be. talking about the wall of liquidity, we can see it in the

fed owned facilities if we look at the overnight program. every day, $1.1 trillion gets returned to the fed and the fed pays interest on it. clearly these programs of buying bonds, they are creating more liquidity than the market needs, and that has to be filtering its way into asset prices. tom: this is the first chart i look at every morning, what he is talking about. conrad, we talked to the conservative from richmond, worried about a preemptive fed that could get in there. do you believe the wall of money that is out there is just moved inflation from a price change over to the inflation of assets? conrad: i don't think so. it has not moved over in the sense that if we look at goods and services prices we can clearly see the impact of the feds liquidity as well. i think the focus usually is on the cost side of the economy. we are obviously seeing cost and

a broad-based sense push higher. the question of whether those costs get into the inflation process as likes to discuss depends on the monetary policy, how much liquidity the fed is creating, and that is a lot. we sit here is the fed tries to look at these decisions on policy going forward and look at it from a risk management approach. on the inflation side, we have one year, two year, five your inflation running about 2%. it does raise the question, what are we doing here? why is the fed continuing to buy treasuries and mortgages at the same pace it was buying bonds back in june of last year when we had a completely different economic outlook? lisa: but when you take a look at the bond market reaction to what fed chair powell said to, friday, it seems to be in accordance with their view that basically the fed will continue to maintain control over inflation, that's growth will be slow, but consistent, into the

future. i'm wondering whether you agree with a representative from the university of chicago, saying he is worried the fed is too complacent about how slow they can taper and how slowly they can move away from this and inflation really is picking up faster and they will have to raise much -- raise rates much quickly than they previously thought. do you agree with that assessment? conrad: i think the risks are in that direction. you bring up an important point about what the bond market is pricing in. it obviously does not have an outlook that we concern the fed. it would provide comfort for the fed. when we think about inflation expectations, we can think about market expectations and we can look back to last year when the inflation expectations were built into the treasury market, particularly in the short-term. between when we had the outbreak of covid, we had a sharp decline in inflation breakeven, long-term breakevens, and those

moved sharply higher after inflation moved up. i do not look at the market as providing a good signal about where inflation is going. we can also think about the expectations of the forecasters. those have moved up quite a bit. those were directionally wrong after covid if you look at the serbia professional forecasters. for the short-term and long-term came down. consumer forecasts on inflation or consumer expectations of death immediately after covid and directionally have the story correct and remained high. they have not come down. in terms of expectation, we need a broader view and those expectations are a little worrying. lisa: the professor was talking about how this time is different than prior episodes after crises because of the fiscal impulse, because of the spending. how much do you see that as a factor here, or do you think that is overstated given what is coming out of washington now? conrad: i think that is an important factor because what

has the fed done? we had a significant amount of support in the economy, certainly a large amounts needed given the amount of distress in the economy. that has been monetized by the fed. that is really the source of all of this liquidity. i think we need to -- what are we looking at in terms of the outlook? certainly we have signed -- seen 5% cpi inflation over the last year. we will not see that going forward but are we going to see 2%, what the fed is expecting, what the fed wants to see having now made up for that past period of inflation running below target. i do not think we will see that. i think inflation will remain elevated. i think next year, we are probably looking at 3% inflation next year after 4% this year. so that does raise the risk of the fed's exit strategy and how slow this exit strategy can be. if we think about the arguments, and very good arguments, that a

number of fed officials made last week, that we need to get this process started because they want the optionality to be able to adjust rates more quickly than the sep is adjusting, which points to a rate hike in 2023 but i think the risk is it happens earlier. taylor: doesn't matter the way in which inflation is generated? i'm thinking about the china pmi's overnight sorting to roll over little bit. maybe you could argue they're no longer exporting inflation to the u.s.. are we generating it internally? conrad: i do not think -- the international aspect is an important one but i do not think it is a predominant one. we seek significant cost pressers in the u.s., whether from the manufacturing -- pressures in the u.s. economy, whether it is in the manufacturing. yesterday, rising prices were paid and received. expectations for both are rising

further. these measures are not rolling over in the u.s.. we have the labor market which obviously we saw have a big jobs cap between where we are today and where we were pre-covid. that is not because of labor demand. labor demand is strong. we see wages pick up. we see pressures from wages, for manufacturing. in terms of measurement issues, we see significant pickup in rent, which is a huge component in the cpi. i think all of these issues, complying with a very accommodative stance and significant amount of money creation on the part of the fed makes it difficult to get inflation rates by town to what the fed sets as price stability. i do not think that will happen soon. tom: connor, think you so much. conrad dequadros. we heard that from robert kaplan and michael mckee a few days ago , the beginning of the idea of house prices up, real estate up, rents up, and that falls into inflation.

lisa: the idea we see the red component really pick up dramatically and we will get the housing data in about 2.5 hours. honestly, you have to think, how this affects the economy. does this lead to broader inflation? can it without wages going up? not really. it can crimp consumer spending and depletes your disposable income. this to me is the question, is this a negative indicator for the economy and growth or does this indicate resurgent inflation in the labor market? i think that really will determine the transitory -- i hate using netware -- aspects to inflation. tom: taylor has never heard the word before. taylor: what does it mean? lisa: in the afternoon, every time you say transitory, you take a drink. tom: it is too early here for a spread. i'm looking at case-shiller, and i'm rounding up the numbers, from 70% year real estate left

to 19% per year. those are taylor riggs unusual numbers. taylor: and echoed similar comments we got from the home sales yesterday and their chief economist saying there is demand across the board except higher prices are crimping some of that. that was the reason for the fall, a lack of demand not prices. tom: riley from st. louis says it is never too early for a spread. thank you for that information. futures up five, dow futures of 53. the vix up 19 in the 17, 16 .25 right now. the yield 1.29%. stay with us on radio, on television. this is bloomberg. ♪ ritika: the taliban has called for good relations with the u.s. hours after the final american soldiers flew out of afghanistan

to end 20 years of war. taliban leaders walked across the international airport in kabul, the last place under u.s. control. in northern california, thousands have been ordered to leave south lake tahoe. a wildfires threatening one of the areas tourist tubs and more areas. the fire upton more than two weeks ago east of sacramento. it burned 177,000 acres. in china, president xi jinping had a meeting to fight monopolies, pollution, and straw -- and shore up strategic reserves. to improve the quality of life. xi and other officials have been emphasizing the need for high-quality development. zoom is raising concerns it will have problems keeping up its rapid revenue growth once workers returned to their offices. the company gave a forecast that fell short of estimates. the videocon truce -- the video conferencing platform became a ubiquitous tool for the

pandemic. shares of robinhood and main rivals fell after the sec hit order flow. the chairman said a paying where order flow or brokerage send customer orders to trading firms and received payments and return has an inherent conflict of interest and a ban of the practice is "on the table." 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. ♪ i am ritika gupta. this is bloomberg. ♪

>> it's gonna come into schools, spreading unless there are a lot of protections. in many cases, there are not.

we see huge numbers of kids quarantined and schools shutting down as teachers get sick. we have to avoid that if we are going to have a successful school year. tom: that is john hopkins on schools yesterday. it is august 31 and the schools are front and center. lisa abramowicz and tom, great guests coming up. i want to point out that john bolton will join us here on afghanistan and particularly his focus on pakistan. i believe we will do that in an hour and a half. a mr. doll joe with us -- dr. am esh adaljia. america is bundled in with kosovo, lebanon, and montenegro. it is about the idea of travel.

when you look at the regional disparity of how we are dealing with this epidemic, are you surprised europe tells us we cannot travel there? >> are not surprised. we know political leaders often run for travel bans and restrictions as their first way to reassure domestic populations but we know travel restrictions do not work. it did not keep covid-19 out of the united states and will not keep any of these cases out of other countries. i think now in the era where we have vaccines and can verify people's vaccination status and we have testing, you can have much more freer travel even when there are cases that might be higher in one country versus another. you can ricks -- restrict travel to vaccinated people and ask for serial testing. i do not think we need to be in the era of travel bans. the u.s. has many travel bans on many parts of the world which i do not think are keeping our cases down or controlled. we have a domestic problem and

many other countries do. i think we need the tools at hand to facilitate travel. tom: there is the travel there, on radio, putting up my cell phone. there it is, it is being solved at the state level, at the local level as well. critically here, do you have a sense of optimism about where we will be on travel and business three months out, six months out? dr. adalja: i am optimistic in the sense people are learning how to risk calculate better. vaccinations are going up, there are people getting infected, and that will give them national immunity. that will give you a little buffer. we are getting more and more people comfortable with using home tests to know their status if they have to travel somewhere or visit somebody and maybe they are not vaccinated. but we are also coming to grips with the fact covid-19 is not going to magically go back into the bag, that we will be dealing with it years for now.

our ability is to remove its ability to cause crisis in hospitals. once people realize that, i think they will start to go back to their lives, and at the same time emphasize that vaccinations other way to learn to live with this. i do feel optimistic that we will start getting back to our lives, even some parts of the country in the united states, we are back to our lives because we have vaccinated some and he high-risk individuals. that even though we see hospitalizations and cases, we are not worried like we were early on. we have a regional problem in the united states. lisa: how important are boosters to getting back to normal sees -- normalcy? israel just recorded its highest number of new covid cases despite that nation is one of the most highly vaccinated. dr. adalja: this is an and democrats for torrey virus and it will not go anywhere. i don't think third doses for healthy people will change the trajectory of the pandemic. it is first and second doses

removing the ability of the virus to cause severe -- serious illness and hospitalization. if our goal is to chase mild viruses by boosting them once more, there is no offramp. i think we have to realize this does not magically go back into the bag. we have to manage this like other respiratory viruses we deal with year in and year out or we will never be able to move forward. i think that is something we have to really think about. lisa: do the health officials, the senior health officials in the united states agree with you, agree with that assessment of how to look at the risk of covid and live with it going forward? dr. adalja: i do think many of them realize this is a virus that is not going anywhere. i think what we have is a possibility where people have different goals. when you saw the cdc guidance for masks for vaccinated individuals changing the requirements for vaccinated individuals, that reflects this idea that somehow these mild illnesses are what we have to

chase. i do not think that is right. from the beginning, they talked about maintaining hospital capacity. i think that has to be the overarching goal when dealing with a virus like this. i think there are differences in policy ideas. overall, i think people do not disagree on the epidemiology. we have to take a step back as a country and say where do we want to go with this, what are we going to do with a virus that will never disappear? what is the best that forward? i think that has to be reframing the entire debate now that we have vaccines. i think we have to get first and second doses to people. third this is, i think maybe down the line. be six month or eight month interval, i do not think that will make much of a difference. have not seen strong clinical data to show this is something necessary because we have not seen the vaccines really erode where matters in preventing serious illness and hospitalization. lisa: how should we be thinking -- taylor: how should we be

thinking about the vaccines? i'm thinking about the flu. you hope you catch the right strain for that season. is that how we think about the future of this vaccine? dr. adalja: not necessarily. flu is a different virus from a different family of viruses. as -- it has a lot of genetic characteristics that are different from the coronavirus. even with the delta variant and beta variant, when it comes to vaccines, our original version of the vaccine, the ones directed against the ancestral strain from wuhan, that is able to handle the delta variant, especially when it comes to what matters. i do not think we will be in a prospect where we have the virus trained so much. i think even though it does mutate, the vaccines do what matters. maybe that makes that so much easier in dealing with the flu in terms of vaccines. tom: all of us at team surveillance greatly appreciate your efforts to be with us on a frequent basis in your travels around the nation.

dr. amesh adalja with john hopkins center for health security senior scholar from the land of texas today. lisa, i got to spend time on the bond market, spread like a rock, 108 basis points. i'm looking at europe with dynamics but we have a huge bid to bonds. lisa: a huge bid to bonds despite we see increasing calls for tapering. crossing over the past few minutes in the bloomberg terminal, the ecb potentially getting ready to start taper discussion of their own. this is according to one of the governing council members basically saying the inflation data is going to challenge the ongoing bond purchases that they are making in the region. interesting bonds are not responding. i what point is that sending a message that that is not really what is driving low yields where they are? tom: a guy name jonathan ferro, he mentioned that as well that

we really have not seen a move back to the 112 area of stasis. taylor riggs, lisa abramowicz, tom keene. the secretary-general general, the former prime minister of norway with us in the 9:00 hour. this is bloomberg. ♪ bloomberg. ♪

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and tom keene. bonds bid, price up, yield down, equities bid, price up. we have seen this before. lisa: changing this morning.