view. >> the market has repressed significantly. >> the market is very quick to price out interest rate hikes by the fed in the middle of next year. >> we don't think they will be raising rates until 2023. >> this is "bloomberg surveillance," with tom keene, jonathan ferro, and lisa abramowicz. jonathan: another wednesday with another all-time high. from new york city, for our audience worldwide, good morning, good morning, this is "bloomberg surveillance," live on tv and radio. alongside tom keene and lisa abramowicz, i am jon ferro. your equity markets slightly negative, down 5 on the s&p, down .1%. big tech doing what big tech does. tom: big tech delivers, absolutely, jon. i sat with my beverage of my choice, and i said i'm going to look at the bloomberg analysis. we will not slow down the show, but jon, the year-end of 2022 of big tech is $1.404 trillion in revenue where is the digital

place in the future, it is join or mess -- ginormous. jonathan: it is a deflationary force in an inflationary economy. tom: it is incredibly true and cuts that way. jon, 31% ebita margins, everyone raising the price targets, i think google, piper jaffray one up as well. john, -- jon, it is a shift. jonathan: lisa, price hikes at jaffrey, alphabet. people see it as a disappointment, stocks up 60% year-to-date. lisa: in revenue almost doubled, just to really drive the point home here. the cloud revenue lower than expected, the idea of whether they are actually competing in

the same kind of way that people had expected. these are blockbuster earnings. my issue is -- what is being priced in already, and how much does this hinge, frankly, on what you were saying earlier? jonathan: we will spend a little bit of time talking about washington as well. any takers? [laughter] tom: i will go first. always good, but today, jon, exceptionally broad and a scathing note on the billionaires' tax. what we said with annmarie hordern yesterday is what is the chairman of the house ways and means committee going to do? congressman neil of massachusetts is "serious" over a vague principle, raptor are going after 10, 20, 40 people. jonathan: i saw 700 people into hundred companies. that is the tax base now. tom: it is original, seriously,

what is the constitutionality? i am not qualified to answer that. lisa: that is the issue, right? will it be held up in court? jonathan: we will head to d.c., lisa, in a few minutes. s&p negative about .1%. in the bond markets, yields come in at a basis point, look how, t k, 60 basis points a little bit earlier. tom: curves flights and income a difference between the 10-year yield and the two-year yield this is now getting the remainder, jon, 120 to 118 is not a big deal. 120 to 110 gets my attention. lisa: this, to me, is the story of the day, the week come of the year. what do they do with respect to the higher inflation rates,

regardless of whether they actually can control them, due to supplies chain -- supply chain constraints. the expectation is for them to remain pat, however, they are expected to curtail their weekly bond purchases, as they have done four other times so far over the year. here is the question, though -- how does canada, how does the federal reserve, how does the ecb, which will come out tomorrow -- how will they all respond to inflationary pressures that are out of their control, that rely on a chain and labor disruption that, frankly, will take time and effort to work for? we get earnings for general motors. the big question for me is how they complete with -- compete with tesla, after what we just saw, how do they deal with some of the component shortages that have really delayed production? tesla shares of a mere 1451% --

is that even a percentage point anymore? [laughter] we will hear from general motors ceo mary barra coming up later today, 8:45 a.m., don't miss that. tom, i am doing that for you, five-year option following yesterday's two-year option, which confirms a rate hike coming sooner than fed officials expected. tom: the only thing constructive about 1:00 p.m. this afternoon as i will be deep into the "surveillance" nap. jonathan: i will be long gone, too, tom. lisa: when a preview of this option. "i'll be sleeping." [laughter] jonathan: with us now is rebecca patterson, senior investor bridgewater. let's talk about how quickly we have repriced the front end of the yield curve. what is that telling you, rebecca? rebecca: i think chairman powell

probably helped move the needle a little bit here when he continue to say inflation would be transitory, but in a slight change of tone acknowledged have outside risks -- upside risk. it is hard to say we don't have upside risk when there's not enough ships, not enough trucks to make labor demand. the big one, though, will be wages. tom: rebecca, long ago -- i understand the wages you, but you are so good at pinning together all the dynamics of the market, funneled through foreign-exchange and dollar dynamic. what is the dynamic now wrapped around the fed talk? what is the dynamic now you are studying every morning at bridgewater? rebecca: we think this really was a demand shock more than a supply shock. tom: interesting. rebecca: because we had extraordinary monetary and fiscal easing. we see that everyday now, whether it is high savings rates

coming down, record net wealth in america has incredibly gone down, both for consumers and companies and a lot of spending. so that supply is there in a lot of categories. it can't keep up with demand. we have more ships than ever on the ocean. ports are processing more imports than ever in the united states, it is just that the demand is that strong. now supply cannot keep up, and, you know, the release valve, if you will, will be higher wages, higher inflation. what we see in earnings season is so far, most companies can pass that on. lisa: have we seen peak margin pressures, rebecca? rebecca: you know, i do think we need to be careful looking at margins going ahead, but, again, what we see if there are a few companies pulling them guidance slightly because of the supply chain issues, but we continue to see very strong margins of growth. i do worry, as we look ahead, and we start seeing the fed pullback, right, we now have two

price hikes for next year, you will see liquidity, probably at the end of this year, and then going to rate hikes. the u.s. equity market has become substantially more sensitive to liquidity condition. when we measure it, we now have about 40% of u.s. companies vulnerable to withdrawal of liquidity. that will be primarily companies of longer cash flows, longer durations, some technologies in particular. given the weight of technologies, the sector weight, that is something we are keeping an eye on a bit more cautiously. not bearish -- we are still constructive on the u.s. market -- but we think what has been a huge tailwind is slowly starting to turn into a headwind. jonathan: you called this a demand shock. a lot of other people called it a supply-side story. when they come on, they get their view on markets, too.your view is different in the sense that you say it is a demand shock. how was your investment

different, if at all? rebecca: we started out the show talking about the fed, and what are central banks going to do in general. when we saw this demand shock, we thought ok, we have this backdrop that will allow for a lot of spending. companies are not to be able to keep up. they are going to have to raise wages to bring labor in, to get inputs in. how is that going to play out? inflation for higher than priced in, or a fed that has to catch up. so we have been positioned in our portfolio for both them assets that would benefit from higher inflation, and that was interesting, that was me not moving enough -- the lights just went out in here. jonathan: the lights are still good. rebecca: as long as i look good, that's fine. [laughter] tom: that's very important. rebecca: anyway, we have been conditioned both for higher inflation and higher yields in our portfolio, and thinking about what you higher yields mean for other assets, tom, to your point. we have the dollar, and we are constructive on the dollar for certain currencies, or for equities. which equities will be more

vulnerable for higher rates? which companies will benefit from higher rates? something like financial rate earnings, part of that is that yield curve, which today is a little, and then companies more vulnerable to liquidity withdrawal, like we said. technology would be an area we keep an eye out. jonathan: rebecca, thank you. it is good mood lighting for this time of the morning. tom: this is cost control, right? rebecca: i'm sure. it's our sustainability effort, come on. [laughter] jonathan: rebecca, thank you. rebecca patterson of bridgewater. tom, just a sense of how they are thinking about the world at bridgewater, and how would a slightly nuanced. most people on the street would call is primarily a supply-side shock. tom: let's be clear, ray dalio is a piñata on this. the company generates, jon, really interesting and controversial views

wrapped around parity strategy, taking in rebecca with her history from j.p. morgan and customer trust -- it is a much more holistic, broader view. what i love, that comment, jon, this is a demand shock -- that is controversial. jonathan: a positive demand shock going into the start of the year, tom. and because of that, lisa, this is why people go full circle back to the decisions made by this administration to really juice this economy as it reopens. lisa: this is one of the reasons why inflation is such a hot topic, because people are saying it is because of some of the fiscal policies earlier in the year that we are seeing some of the inflationary pressures that are crimping certain americans. jonathan: we have to head down to d.c. amh tells me that billionaire taxes 107 pages long. have you been reading it tom/ -- have you been reading it, tom? tom: i have been. they misspelled "bezos." they spelled "musk" correctly.

[laughs] laura: with the first word news, i am laura wright here on capitol hill, democrats have unveiled two new taxes they hope will pay for president biden's social spending package. one will target billionaire assets over $100 million a year for three years in a row. the other is a tax for corporations that would require the companies that report more than $1 billion in profits to pay at least a 15% tax rate, even if they qualify for a lot of tax breaks. china planned efforts to boost the taiwan's qualifications in the united nations organizations. beijing says the self-ruled island has no right to join the u.s. at half century over it was kicked out. secretary abe lincoln has called for a -- secretary blinken has

called for support. and uber will be able to offer services with tesla vehicles rented from hertz, starting next week. hertz will provide the vehicles for the ride-hailing giant by 2023. global news, 24 hours a day, on air and @quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. i am laura wright. this is bloomberg. ♪ ght. this is bloomberg. ♪

>> we know that we are close to

a deal. >> we are united in this legislation, and i want to make it very clear. when you are united, does not necessarily mean that you are unanimous. >> we are on the precipice of something really extraordinary that is going to transform the lives of people in america. jonathan: from new york city this morning, good morning. tom keene and lisa abramowicz, i am jonathan ferro. pulling back from all-time highs by a whisker. in the bond market, yields at a basis point, it is the front end to get your attention. this move is building towards 50 basis points in america, barely breaking through that level, one week from now, you will hear from the federal reserve chair jay powell after that news conference and decision with the federal reserve. what we have heard so far from the senate planning committee

chair is there are two tax codes in america. the first is mandatory for workers who pay taxes out of every paycheck. second is voluntary for building to defer paying taxes for years, if not indefinitely. tom: it is. this is the debate right now. a lot of people saying there has to be changed here, but it is the way you do it. let's bring back these subsections, 170 pages here. i picked this up very quickly, page four, and talk -- on top of the document in process. subtitle a elimination of blah blah blah, any action subscribed subsection b1, with respect any tradable covered asset should not be taken into account in determining the holding period. i talked to her accountant. annmarie hordern come our bloomberg washington correspondent.

annmarie, is it anywhere close to what we will see? annmarie there's a great question. there are concerns in the party and whether or not they can push the billionaires tax through. first, you have the house ways and means committee, which already said we had a plan that the public liked, that had wide support, but of course there was a holdout in the senate, kyrsten sinema. we did not know about the billionaire tax just yet. we know she is on that 50% minimum corporate tax. really two big tax details coming out yesterday. when you look at the billionaires' tax, though, the other big question is -- does this past the 16th amendment, will this pass muster in court, or will he say this is unconstitutional? this is a grainy way of looking at taxation and wealth in this -- or will they say this is unconstitutional? this is a brand-new way of looking at taxation and wealth in this country. jonathan: when people say "tax

the rich," when people need to pair their fair share, when it comes down to is about 700 companies. what you hear is highly divisive language that there is a group of people that don't do their part of society, and the other carry the burden. that does not match pays income taxes in america, a highly progressive tax code, and what it finally reveals, and i will repeat it, annmarie, including the white dress with "tax the rich," it is 700 people, 200 companies. that is quite revealing. annmarie: it is quite revealing. this is a small subset of the american population, when you look at it yesterday, although senator elizabeth warren said the graduating class will pay more than the billionaires. reading through the 170 pages, it can be quite confusing. what this actually would do is,

say you bought a stock and you paid $5 billion, and today it is worth $30 billion. you would have to pay taxes on that $25 billion. that gain, that wealth appreciation, at a 23.8% rate, nearly $6 billion that would be going into the system, and it would give you about five years to do that. so for someone like tom keene, that would probably mean a little less vote ties or bottega wallets, but this is potentially a way that they are trying to scribble to get money to push through this massive social safety net, reconciliation for medicare, climate initiative, and a host of other issues. lisa: annmarie, a lot of people are discounting the billionaires' tax as something that is questionably going to pass or not through the same court, considering the composition -- through the supreme court, considering the composition there.

that is why they talk about the 15% minimum tax that would tax revenue. it is a different method of taxation to try to capture, frankly, the big tech giants in particular. can you give us a sense of how much bipartisan support that they have? annmarie: this definitely has more momentum. when we got the details of this yesterday, last night, we heard from kyrsten sinema on twitter, giving it her blessing, that it is a "common sense approach or code remember, she was one of the holdups that not want to and cries -- common sense approach. remember, she was one of the holdouts that did not want to increase taxes. the shareholders would get a 15% minimum tax, regardless of whether they have any sort of loophole to try to offset those taxes. it is black-and-white -- you pay 15% on that profit you report to shareholders. and this has wide support at the

moment. the problem is, this would bring in roughly, experts say, $400 billion. we are talking about them at the minimum, a $1.5 trillion package. jonathan: what's next in d.c. today? annmarie: it's going to be a lot of talk about taxes. we only got the details of the billionaires' tax at 5:00 a.m. i am waiting to hear what the house ways and means says now that they see the text. it is going to be a scribble, because, remember, the president leaves tomorrow to go to rome, so following that, he will go to the climate conference in scotland. they want to get the framework, at the very least, before he is wheels up. we already have progressives without a vote on both of these packages, they will not support it. jonathan: amh, we have got some

work to do. alphabet and microsoft, between them, more than $200 billion in cash sitting on the balance. lisa: this is part of the dilemma. we talk about fair share and what gets taxed, in the issue with some of these big tech giants is the way they compose the revenues and how they have their streams of cash has not necessarily coherent with the way the tax law is written. do you change the benchmark rate, or do you find new ways to enforce that? jonathan: tom, would you believe it, that thing about corporate tax, that cut by the former president, could provide this administration? pretty unthinkable maybe 6, 9 months ago. tom: lisa brought this up yesterday, and i think it is the heart of the matter, but, jon, what this is is a symbolism to all lyrical persuasion, almost a band-aid approach -- political persuasion, almost a band-aid

approach to richard neal is, quote, "furious." i would watch the congressman from springfield. jonathan: and it is hard to get things done in washington. tom keene and lisa abramowicz, i am jonathan ferro. from new york, this is bloomberg. ♪ , this is bloomberg. ♪

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jonathan: starting the week quite nicely. record highs on monday, record highs on tuesday, on wednesday, all-time highs, then we pulled down. nasdaq, down about .1%. names to watch out for the close yesterday and the opening bell this morning, microsoft and alphabet. alphabet, what jeffrey and bimah went berkeley are calling a disappointment. tom: what is really important on that, everything is looking at youtube and that division and saying, still year-over-year, it is a nice pop there. jonathan: microsoft, tom, a few earnings surprises.

last time they missed was the third quarter of 2016. it has been five years. tom: the quarterly pop goes back to 2014. jonathan: the stock is up 2%. it keeps moving. and no one talks about it. i find it amazing every year, the microsoft up 40% year-to-date or something like that, and nobody talks about it. you are rushing me along, tom. [laughter] this is not the academy awards. every morning. "get out. wrap it up." 10-year, tom keene, the curve a little bit flatter this morning, the front end is moving higher. tom: i am watching the curve, .4991 on the two-year. jill moak -- gilles moec speaks of the linkage of central banks.

we are thrilled he can join us, free ecb. gilles, i will let jon ferro dive into madame lagarde and the ecb. my question to you is more thorough -- how linked are these central banks right now? gilles: they are kind of link, because they have similar policies, at the peak of the pandemic, and their starting point is very similar between the fed and the ecb, three programs in both regions. however, i would suggest that europe and the u.s. are still in two very different positions from this point of view. the recovery started earlier in the u.s. the fiscal stimulus was higher than in europe, which means the output gap in the u.s. is probably close to 0 right now, so that the fed talks about removing qe entirely, find that

some members talk about hiking rates, fine, but we are not there in europe. and the risk is that the market tries to create a bucket where every single central bank would find themselves. it is true that inflation is rising everywhere, albeit to a lesser degree in europe, but you can feel the pressure. if someone moves or talks about hiking a rate somewhere, it is creating mood music everywhere. europe is not in a situation where we need to think about that right now. jonathan: we still have central bank like new zealand, like the bank of england. gilles, you are right to point out the ecb. the opportunity to push back is the december meeting. president lagarde called it an important one. permission to get technical, if

you wish. how do you look at what is next, to what comes into 2022? gilles: i think it is clear, because the program they had to fix would be killed, any market would text the issue, pepp, italy is not getting in to trouble, spain is not getting into trouble, because investors never knew if, when, and how much the ecb would act to help a market. app, the ordinary program, which is likely to survive and continue possibly well into 2023 is much less flexible. you buy according to it. they probably need to move some flexibility from pepp toward a.p.p.

greece was not covered by a .p.p. i guess they will have some room to maneuver around the capital driver a little bit, but in any case, i do not think they will find a majority in the counsel to completely transformapt into pepp, and that is a complicated moment for the market in europe. thus in general, i think what has been happening is that the market knows that the ecb can be flexible, they could always bring back the ability. we learned from this second, this year -- last year, sorry, that is a big change for the market. lisa: you said something really important, gilles, that europe in the ecb is in a different

position than the federal reserve, and this underscores the position that rebecca patterson at bridgewater was saying earlier, that in the united states there is more of a demand-side shock, and perhaps there is less of one in europe and other places, each individual to save the fiscal stimulus. what does this mean, then, in terms of what we can expect to see with inflation in the eurozone as well as how the ecb will respond, if they will ever raise rates, given such an dynamics there? gilles: i think it is key. the u.s. is literally half in the u.s., so we are nowhere near paces. second, if you look at demands, just look at where product consumption is in the u.s. right now. at the end of the spring of this year, it was exactly where the value of consumption should have been, if no pandemic had happened. it was basically bang on its

trend volume. in europe, we are still something like 7% below our trade volume. so they should be patient, and i think they will be patient. tom: gilles, very importantly, mr. weidman studied academics in paris, in france. you had a hero out of deutsche bank. i think this makes you qualified to take over at the buddhist bank. i can see moec at the bundesbank -- at the buddhist bank. i can see moe -- at the bundesbank. i can see moec at the buddhist bank. -- bundesbank. [laughter] maybe not. who will take over? gilles: i don't think that will

influence over the ecb, that great. and actually come of the point for germany right now, is going to find someone who will gain influence at the ecb, and i think the right way to do this is to select someone who will be closer to the center of the on the next going this bank bus -- boone this bank -- boone this bank -- bundesbank boss. it is known by german standards, where it will be more steeped into the bundesbank tradition.

it will be more of a practical choice, but i think germany has an importance he really to regain influence, but the right way to regain influence is to choose someone who would be a bit further away from the usual ameritrade multi-culture of the bundesbank, someone closer to the way we think of those things in france. jonathan: gilles, fantastic as always. good to get your insight. gilles moec, of accent investment, and the unofficial candidate to take over the bundesbank. lisa: [laughs] jonathan: we have had two french individuals lead the central bank, a german, we have yet to have an italian. tom: it is controversial, to say the least. i am not an expert in that. i wonder what that debate would be. it is a different debate now with brexit. i will be very honest. jonathan: we are going to have a

different debate as well, tom. when are we going to start talking about this a little bit more, the president going into this a little bit more. tom: i saw that. jonathan: i thought by now we would have a decision, going into november. tom: it is a little bit distracting. jonathan: a, tom. tom: cop26 is not making a big deal in america. jonathan: lisa, do we expect to hear anything anytime soon? lisa: president biden is running out of time. powell's term, his first term, expires in february. he has to be reconfirmed by congress, by the senate, in order to get him back in the seat in time. what is president biden going to do? this is the key issue. which constituents does he want to appeal to within the democratic party? jonathan: a great person to

blame if inflation goes on too long, right? a fantastic person to blame. lisa: can you get more dovish? [laughter] jonathan: that's my point. lisa: but the issue is, can you get more dovish, and does president biden want to put a hawkish fed chair? what president wants a hawkish fed chair? jonathan: alongside tom keene, lisa abramowicz, i am jonathan ferro. equities just a little bit softer. record highs again at the close on tuesday. into the bond market, yields are lower by couple of basis points, 1.5887. and crude, a lot of weakness in the commodity complex this morning, crude 83.54, negative 1.3%. laura: with the first word news, i am laura wright.

democrats are trying a new and risky approach to get jeff bezos to pay for president biden's agenda. those with at least $1 billion in assets and those who earn at least $100 million three years in a row. meanwhile, a separate tax would require companies that report more than $1 billion in profit to pay at least a 15% tax rate. president biden is zeroing in on whether to renominate jerome powell for another term as chair of the federal reserve. the president has started to meet with top white house and treasury aids to review candidates. he has not settled on a choice, and it is unclear whether he is leaning toward reappointing powell or replacing him. bloomberg has learned that the maker of british supercar mclaren is resigning. he has been ceo of mclaren for more than eight years.

heineken got a reminder the pandemic is not over yet. the world's second largest brewer reported a 30% plunge in their shipments in asia as countries reenter lockdown. asians account for nearly 1/6 of their sales. global news, 24 hours a day, on air and @quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. i am laura wright. this is bloomberg. ♪ this is bloomberg. ♪

jonathan: live from new york city, for our audience worldwide come on radio and tv, this is "bloomberg surveillance ." i know we can talk about you to -- youtube ad revenue, but let's be real, alphabet stock is up. into the bond market, we are down two basis points, this curve is flatter. because, lisa, there is a move on two, two-yield for the first time post-pandemic. it is not about tapering. they are going to taper anyway. it is about pushing back on rates. lisa: and, frankly, the fact that they have not yet, we have for this from different strategists, we are looking at potentially a demand-side stock. that is what some people are looking at when they look at both sides of this. if it is demand driven, the fed may have to respond more quickly than other central banks. jonathan: we will hear from

apple tomorrow on the earnings side. tom, a bit of news on evercore i went to work with you on. ralph has stepped down as co-ceo and cochairman of evercore, beginning february 25. tom: full disclosure, one of my favorite people in wall street, ralph ousley -- ralph schlosstein. years ago, ralph schlosstein helped to build evercore, and this is one of the big success stories. some work and some don't. what is important here is the public service of oath of these individuals, and schlosstein is the one that really drove the

tone forward. and that is unfortunate. jonathan: he is stepping down as cochairman and co-ceo, effective february 25, over at evercore. lisa, could you read that story about ever grande, the founder and leader of evergrande? lisa: what was it called again, something amazing, the actual shell company he ended up purchasing, it had to do with fast food rather than the actual development company. he also got billions of dollars in dividend payments from the company over his tenure. this is what the government in china is trying to target, take some of that wealth and put it back in the company. jonathan: that is where the focus is right now. the chinese communist party expected to be leaning on the owner, the founder of that company, to use his own personal money to pay back the debt. with a suspected test of a hypersonic weapons system in

china, a fascinating conversation is taking place with general mark milley, the chairman of the joint chiefs of staff, with david rubenstein. take a listen to what he has to say. gen. milley: i think it is china, and i said that publicly many times. as we look to the future -- and i think we are living in a historical epic, actually -- where we are seeing the rise of a country that is unlike something we have seen probably ever before. and it is one of the great historical pivot points, i think, that we have ever witnessed, which is the rise of china. and from the reforms of 1975 and been joking -- bin jao ping, they had an incredible economic run, and with the military, that is really significant. as we go forward over the next 10, 20, 25 years, there is no question in my mind that the biggest geostrategic challenge

to the united states will be china. i have no doubt about that at all. russia is important. russia has very significant capabilities. but i think china is the most significant geostrategic -- geo significant -- geostrategic threat we will face. david: china has a hypersonic missile that could theoretically go into space and then come down with a nuclear bomb, escaping our ability to knock it down. is that something i should be worried about or all americans should be worried about? gen. milley: well, what we saw was a test of a hypersonic weapons system, and it is very concerning. i think i saw in some of the newspapers, the used of the term "sputnik moment." i don't know if it is quite a

sputnik moment, but it is very close to that. it is a very significant technological event or test that occurred by the chinese, and it has all of our attention, but that is just one weapons system. the chinese military capabilities are much greater than that. they are expanding rapidly -- in space, in cyber, and then the traditional demands of land, sea, and air. and they have gone from a peasant-based infantry army and 90's of the nine to a very capable military that covers all of the demands and has global ambitions. china is very significant on our horizon david: i presume that the united states has thought of doing a hypersonic missile as well and that we are not cot completely flat-footed in our ability to maybe produce something like that ourselves? gen. milley: we are clearly experimenting and testing and developing technologies to include hypersonic some artificial intelligence, robotics, a whole wide range. now, if you take a step back,

what we are in, history wise, is we are in one of the most significant changes in what i call the character of war. but today, with the ability to seal over the world, artificial intelligence, robotics, hypersonics -- all of these things together, this is an amorphous -- enormous change in war, and we have to change going forward. jonathan: general mark milley will be speaking with david robinson in, -- david rubenstein in full. "peer to peer conversations." what we saw was a very significant event of a test bay hypersonic weapons system, and it is very concerning. he goes on to say, i do not know if it is quite a sputnik moment, but it is very close to that. it has all of our attention. tom: born in 1957, jon, i relived that in my childhood

memory, and there was an intense fear of sputnik and what we do. within the classification of what we cannot cannot talk about, jon, i really want to say, more than any other military officer we have now, he is the most on estimated. he is rotc out of princeton. i cannot convey how unusual that is. most importantly, his father was on the shores of iwo jima. lisa: what we see in both the rhetoric that, frankly, has been harsh out of the administration and the increasing moves of corporations out of china. how does this diverge? at what point do corporations have a role to play in this? i see this, because, actually, if you'll take a look at tech giants, co's the -- ceo's there, they have been meeting with officials. jonathan: it is a bit of a problem. looking forward to catching up with david at 8:15 eastern time

come in about one hour and 20 minutes at this program. your equity markets down .1%. we lean higher. it is the rate hike story. heard on radio, seen on tv, this is bloomberg. ♪ omberg. ♪

>> it seems like the economic cycle is moving at warp speed. >> they are pushing back. >> the market has repriced. >> very quick to price out the fed in the middle of next year. >> we don't think they will raise rates to limitless 2023. jonathan: from new york city and audience worldwide, good morning, good morning, this is "bloomberg surveillance." tk, coca-cola, it's a raise and numbers dropped. tom: what i see is