>> most of the central banks poised to either continue raising rates or start raising rates. >> we have seen a fed that needs to be quite nimble in their resident. >> implied in this scenario is that the fed is in do no harm mode. >> but we are worried about is a fed policy mistake. >> this is "bloomberg surveillance" with tom keene, jonathan ferro, and lisa abramowicz. tom: good morning, everyone. it is a wednesday, and economic data wednesday. 90 minutes away i believe towards a huge drop of economic data that will be critical for the december unemployment report and that december 15 fed meeting. lisa abramowicz, tom keene, kailey leinz in for jon ferro. it is not normal this time. it is a huge deal. lisa: especially because it hits all the main points the fed is looking at.

it is looking at the potential for full employment and how hot the market is for jobs, and also looking at inflation, the core pce deflator, the key inflation a metric the federal reserve looks at. it is expected to rise 5.1% year-over-year, most going back to 1990. tom: what we have is a quiescent bond market. yields are higher, and then they come in the last couple of days. lisa: basically, people bringing forward excitations for rate hikes. this means on the longer-term level, and place in bond yields not expected to rise as much. one of the key interesting debates right now on wall street is what is the bigger risk, the fed moving too quickly or tightening too quickly in their term and suppressing the long-term rates, or not moving quickly enough, and then the tenure becomes a lot less moor ed? tom: also unmoored, nasdaq 100

to the moon this year. we are focused on the equity market the cross this wednesday. mike wilson of morgan stanley to join. greg boutle of bnp paribas with spx 5100. amy wu silverman coming up with equities front and center. kailey: i will be interested to see if the equities react to the economic data we get. there isn't a direct connection between what the growth picture looks like and what equities do. those two have been very disjointed for a while now. so if we do get a hotter inflation read, does the equity market actually take that as a good thing or a bad thing? if we get a better print when it comes to gdp growth, for example, does the equity market take it is a good thing? tom: jp morgan's glass half-full as well. i want you to review what you nailed in the last hour, which is the credit market. the credit market has changed, hasn't it? lisa: as benchmark rates go up,

so too are the extra yields that investors demand. to me that is really compelling. i am just wondering at what point this leads to a little bit of a jittery backdrop. tom: in the data today, we have the red on the screen on the equity market. yields coming into basis points on the 10 year yield. oil, i don't know what to make of it. the spread widens a little bit. maybe it is something we are go to talk about through december. i don't know. lisa: you did great tom. just nailing it. it is a drop in the bucket. people were expecting more. we can dig into that. we will be talking about that in the coming weeks. a: 30 a.m., the u.s. begins initial jobless claims.

i am watching unemployment claims. how much are we watching the dynamism in the jobs market pickup with all of those jobs that people are trying to fill in an emergency? u.s. personal spending and incomes is what kailey was talking about. income is expected to rise just a touch. the bloomberg economics does expect it to decline with the rolloff of some of the federal programs spending -- federal programs. spending continues to outpace the income increases, and this is something a lot of people are watching. how much are people willing to draw down their savings in order to keep saving at the pace they have been, especially in the face of higher consumer prices? at 2:00 p.m., the fed meeting minutes come out. i actually find this interesting. december is going to be a fascinating fed meeting. the question is not whether they are going to raise rates.

the question is the threshold for accelerating the tapering of their monthly bond purchases. their balance sheet is eight point $7 trillion. it is expanding still in expansionary territory, even with inflation moving faster. you have the fed vice chair coming out saying this is something he is watching, that perhaps they to accelerate how quickly they wind down these purchases. tom: it will be deep into the "surveillance" nap. lisa will have complete report for you. the royal bank of canada with a terrific research team writes in king's english. the owner one who does not is amy wu silverman. it is in the greek letters of the derivative space as well. we are thrilled amy could join us this morning.

i look at where you are and i want you to dovetail it right into lori calvasina's constructive call on the market. when you look at skew, kurtosis, and the rest of the options markets, what does it mean for our listeners and viewers? amy: it is a great question, and lori and i talk about what her overarching equities views look like in terms of the derivatives market. i will tell you the iwm implied volatility and skew has been dovetailing with what lori has been saying, that we will see a second leg up in that mid value section. you see that in the derivatives market with the view much more flat or bullish than in some thing like the large cap tech growth area. lisa: i don't speak greek, but i am looking at what could potential to be some froth pushed out of the market in select areas. i am thinking particularly of the software and internet stocks

that were the darlings in the wake of the pandemic. we saw hedge funds really pile into those trades even as they climbed higher and higher, and now we are seeing the likes of zoom really get punk should by reality, but i slow down in their growth. how much is this indicative of broader froth being punched out of the market as people realize that we are in new territory with the fed perhaps less accommodative? amy: when you want froth, you definitely come to the options market. it has just been the home of momentum of this crazy retail called buying. yesterday, the options market woke up, and my opinion. we have been talking a lot about how that skew was really not that expensive. people were really not focused on downside despite what we know about rates ahead, and that changed yesterday. we saw a pretty dramatic shift in hedging. we saw a lot of skews through year-end and next year, and that

indicator is becoming more bearish, which really makes sense in the context of what we know how has to do in the coming year. kailey: in a world where everything seems to be getting more expensive, is it going to keep getting more extensive to hedge? amy: i think so. we have been banging the drum for a while saying it has been so cheap to hedge, does anyone want to hedge? the answer has been no, and i always feel like people need to see a shoe drop before they think about it. of course, when that happens, your hedging is probably going to cross that psychological barrier, but that is when people are going to start looking at it. kailey: if i am looking to hedge where it is still more cheap, where do i do it? amy: one secret of finance people love to use ida beam, as qs -- use iw m as qs, but if you look at the sb community should

cdf, is a -- the s&p communications etf, it has your netflix, facebook, twitter, and it could be an interesting one because that implied volatility level is very inexpensive on a relative basis compared to q's, but just as much of a tale hedge. tom: very quickly, what do the bears get wrong? amy: there's a case to be made that when a tail looks cheap, you have to own it because if you are in a world where you think about things from the bang for the buck, i thing that is what bears get wrong. they ask why is it that cheap, and sometimes it is that cheap because things are good. tom: thank you so much. it was over -- amy wu silverman,

rbc capital markets. these are called the cross moments. we make jokes about it, but going out from variants out to kurtosis, this is serious stuff for global wall street. they're glued to it. lisa: especially because there has been such a surge in options trading. kailey has been covering this really well. this has been a large question. is it the tail wagging the dog, and has it been for a lot of the year? the point amy wu silverman just made, the one thing that bears get wrong, they look and see people who are hedging aren't in the market and they wonder why, and they think it is cheap, and really it is just that things are looking good and there is moment among the upside. tom: is very important. you've got to have kurtosis in the mashed potatoes. kailey: sure, tom. [laughter] i am going to let that sit where it was. we haven't talked about gas or nordstrom. we talk about how much supply issues -- you know, it is

holiday shopping season that is about to begin, and i think this is important because it goes to show you there are players who are able to manage supply chain issues and ones that are not able to do so. that includes gap and nordstrom, both down pundit percent in premarket trading. the holiday season could look interesting when it comes to retail, and those who are going to have th inventory and those that aren't going to have the inventory. tom: is she taking over the show? [laughter] lisa: i thing it is a good point. she's going to do with us for the next few hours, so be nice. [laughter] tom: should i be shocked? lisa: forgive him. tom: coming up, mr. wilson of morgan stanley. if you are in global wall street , mike wilson is must listen, must watch. futures -14, dow futures negative 124. please stay with us. this is bloomberg. ♪ ritika: with the first word

news, i'm ritika gupta. in germany, olaf scholz is set to succeed angela merkel as chancellor. he will form an unprecedented alliance that aims to rebound europe's largest economy by tackling climate change and promoting digital technologies. centrist democrats will present their agreement with the greens and the free democrats today. in turkey, the plunge of the era threatens -- of the lira threatens to erode. demonstrators called for an end to economic mismanagement. meanwhile, the lira has bounced back slightly against the dollar today. a spacex rocket carrying a nasa probe has launched on a historic mission. the probe will test whether it is possible to keep a speeding asteroid from crashing into earth. if all goes well, it will collide with an asteroid at 15,000 mile-per-hour. the goal is to nudge it slightly off course before it poses any

danger to earth. jp morgan ceo jamie dimon raised some eyebrows with comments about china at a speech in boston. he joked about his bank being likely to outlast the chinese communist party. he also mentioned that for china, taiwan could be "their vietnam." global supply chain delays and higher liver costs won't significantly heard earnings. stronger mine is driving prices to their highest level in years, driven by new equipment. global news 24 hours a day, on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i'm ritika gupta. this is bloomberg. ♪

>> we have been working on this release from the u.s. side of things and with collaborations

around the world. the president does have other tools in the tool belt as we need them over the coming weeks and months. tom: that is the u.s. deputy secretary of energy. of course, all of this coming off the release during the show yesterday of the spr. how global was it? i never really got a handle on that. lisa: india, south korea, china, the united kingdom came out. you said they didn't -- you said you didn't even know they had reserves. well, they did, and they released some. tom: i guess a huge impact. jack fitzpatrick joins us with bloomberg government. was yesterday successful for the president? jack: yesterday may not have been a huge success for the president. i saw a president who clearly

wanted to make it known that he's working on gas prices and doing what he is able to do. a 50 million barrel release from the strategic petroleum reserve, the coverage on the terminal shows you can expect maybe a zero dollars tencent -- $0.10 per gallon decrease in prices. he's trying to pull every string he can come about a lot of this is out of his hands, and some of it is just a president trying to make it clear he's taking whatever action is possible. tom: some good essays out that, compared to the 1970's, it is not that expensive yet. three dollars 40 since a gallon is not for dollars or five dollars a gallon. are they getting out too soon on this issue?

are they too early to the real heat of the matter? jack: part of this may be seeing a problem that could be a big problem, or at least a problem. these are not low gas prices. and then the tribune may be other problems to that. we have relatively high gas prices, very bad looking polls for the president and congressional democrats. this is something that the democrats feel needs to be addressed. for historical references, if you look at a chart of gas prices, it is around the point maybe it was in 2014. 20 14 bad midterm for the president's party. can i give you hc or link of causation between those two? i am not so sure. but it clearly has caught the attention of the president and a very high-profile way, and i don't know if acting on this solves all of democrats'

political problems, but it is clearly right around the top of his list. lisa: running up against the debt ceiling, we still have a big fiscal discussion to be had, and people are still on break. jack: the gas prices may not be a distraction, but there are already enough distractions in washington. they have to do the debt limit, but they don't know exactly when that deadline will be. it could be as soon as december 15. it could potentially shift to as late as early february. they have to fund the government and avoid a shutdown by next friday, december 3. they are using their floor time in the senate to the greatest extent possible to do defense authorization. they are trying to pass the china competitiveness microchip and research and develop bill by the end of the calendar year. it will be interesting to see what falls off the table because those things combined in one

month are probably more than you can actually see in congress. lisa: there are empty seats on the federal reserve. now the question are some of the other seeds, including the vice chair of supervision. any sign of when we may be getting some announcement on that? jack: not sure on the timing on the other positions. i would note that senator pat toomey, top republican on the banking committee who is supportive of the powell nomination, there really could be some fights for other seeds if that is where the president looks to appease the progressives who weren't so happy with the powell renomination. so while there is a sidestepping of a fight over powell, republicans are starting to warn that is going to be tougher to whip the votes potentially for other seats.

kailey: lisa and i will be here on friday, working throughout this long holiday weekend. they are actually only in congress for two weeks in december, after december 10. so we are really talking about a two week window here. what have they prioritized? jack: that is the current schedule. i would be really surprised if they skip to that. first of all, the spending deadline that comes up next friday is going to get kicked. there's no spending bill. the only question is when the next deadline will be. house democrats have said they want another deadline sometime in the month of december to keep the pressure on because they feel the republicans are moving too slowly. there's been some talk of a december 17 deadline. it might be even later. a lot of the time when there is a packed schedule in washington, it goes until the friday before christmas. christmas is on a saturday, so i can't guarantee they won't be

working until christmas eve, but they often do for that schedule out the window when it is this busy, so i would expect more legislative days and what is currently on the calendar. tom: have thanksgiving dinner with annmarie hordern. i don't know what she's got going on. i think ben's chili bowl up on u street. but have a good time. thank you so much, with bloomberg government today. we forget, i forget, fancy people forget the actual statistic for inflation. in one hour and six minutes, we've got a survey statistic of one measure, pce deflator. that is what the fed uses. five point 1%. we lose perspective. kailey: up from -- lisa: up from 4.1% on the previous read. this would be the fastest pace of inflation going back to 1990. this is what the fed is

watching. they are watching prices go up. they're watching the labor market tightening. they are seeing wages rise, but it is not an inclusive kind of labor market yet. this is the tension. what do you sacrifice? what do you react to first, inflation, or a low unemployment rate that they are looking for? tom: mervyn king, the former governor of the bank of england, he has an article on bloomberg opinion. i put it out on twitter. the former governor of the bank of england just tears to shreds that we are transitory. kailey: inflation is here to stay is the message there. i think it will be really interesting. can we get a 5% handle and see consumption going up at the same time that maybe consumer sentiment is waning? it will be interesting to see how all of those data points fit together or if they really send conflicting signals. tom: my signal is they wait for the data. all central banks wait to see

what the data is. in an hour, economic data. thank you. i could not have done that. futures at -16. i may be back after the break. good morning. this is bloomberg. ♪ ♪

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♪ tom: good morning, everyone. "bloomberg surveillance." much to talk about with the economic coming up in exactly 60 minutes. we are going to have michael mckee out at 8:15 to really brief you on the ramifications forward to the fed meeting. no doubt he will have the last question at the december 15 meeting as well. we have the first data check for you today, -15 on s&p. dow futures, -143. thank you, jon, for emailing in and asking for the dow futures. america cares about the dow futures. yield, 0.60%. on the individual stocks, kriti gupta. good morning.

kriti: we start off with deere dealing with those global supply chain issues, dealing with their biggest strike since 1986, and still forecasting record net income in 2022. those shares are popping in the premarket. what is not popping it's his retailers. nordstrom pinning it on poor inventory planning. gap talking about supply chain concerns. neither one of them talks about a slowdown in consumer spending. that is the theme you're going to see in hp and dell earnings as well. those tech earnings coming in hot after record spending on personal computers, particularly when it comes to dell. so consumer spending isn't an issue, but business investment might be. you are seeing that show up in autodesk, narrowing their full-year forecast, and they are getting a targets cuts from across wall street. so consumer spending might not be an issue, but business investment, that is where there

might be a spot to worry. tom: greatly appreciate that this morning. there is any number of reasons why there's been weaker euro in the last 24 hours. we are on the watch for a 1.11 handle. the year has been from a one dollar 23's and zero on down to one dollar and -- $1.23 euro. eric nelson is was currencies at wells fargo, and we are thrilled he could brief us this morning. the summary of your call is stronger dollar. what will that mean for europe? erik: the reality is europe wants a stronger dollar and a weaker euro. we think about the get rights policy. we often hear from ecb policy makers when you are was up

concern about the strong euro. we know this is an export dependent economy, and we know they went a weaker euro to help those favorable financing conditions and favorable financing conditions they always talk about. tom: does a strong dollar in any way derail the u.s. economy? erik: absolutely. it is only a matter of time before more and more u.s. corporate's talk about a strong dollar on earnings calls. i would expect to hear more of this over the next couple of quarters because to me, it is back before we are over 100 on dxy if inflation really starts to calm down, but if it really stays high, there's a real possibility that even faster

rate hikes than the market is pricing. lisa: what is priced in currently, to rate hikes? erik: i think that is about right, to hikes -- about right, two hikes. i don't think there's a sense in the market that the fed speeds up a taper. i thing that is partly priced and, but not fully. if we were to get that faster taper in december and we get a sense that the fed is going to hike more than twice next year, the dollar can continue to gain. kailey: i am curious about the action -- lisa: i am curious about the action we have seen with banks hiking rates and seeing their currency fall. i wonder what the risk is here for the federal reserve, considering the fact that should they hike twice, that could be potentially problematic for the developing market complex. is your view in terms of that dynamic as we have seen it play out so far? erik: it is so interesting. one of my favorite charts from

this year, you look at a scatterplot of your on your cpi versus rate hikes in g10 and e.m., and some of these have hiked 400, 5 hundred basis points this year, and their currencies are down. the reality is this is not necessarily out of the ordinary. oftentimes, the carry players wait until the hikes are over to come in. but even those currencies that have really been defensive against inflation have not really benefited. to your point, i think the fear out there that the fed may go more than twice next year is keeping some of the eem carry traders on the sideline. even in g10, there you have a different dynamic where they have sorta flip-flopped a little bit. august, of course, they surprised markets by holding. the market needs to see them be hawkish instead of just talking hawkish for qe to be a strong performer. kailey: is all of this to say that fx volatility is going to remain elevated?

erik: i think that is exact right. 2022i think is going to be a year for strong and high affects volatility. what this really boils down to is a fed hiking cycle that tends to initiate a lot of volatility, but also more and more central bank policy divergence. we talk about the fed versus the ecb, but that is not the only source of divergence within the g10. you have countries like the rmb or the rba that are likely to be on hold for much longer, whereas you could give the bank of canada and others hiking several times next year. kailey: so it is not necessarily going to be broken down into an em/dm type of world, but more of a tightening and not tightening so fast kind of world? erik: i think you put it into three big categories. within the g10, you have the funders like europe, japan, and swiss, and the hikers.

u.s., canada, new zealand, maybe even the u.k. who knows? within e.m., you have the separate complex where most of the hiking cycles there are most likely done, and that is unless there is a real significant worsening and the risk sentiment or inflation situation which forces even more hikes and these central banks to defend their currencies. tom: i'm looking at where we are in building out the currency impact, and it does fold into equity market calls into our economy as well. what is different now about the dollar debate as it folds into an american economic call more than 10 years ago for 30 years ago? erik: i think the reality is that we have become much more of a services economy and a lot more intangibles going around here. with about our client base. a lot of them are very well

hedged. those big names that have a lot of overseas earnings and lot of cash held offshore so that the u.s. sensitivity to a strong dollar is a lot less than it was 10, 20, 30 years ago. the reality is with inc. about central banks, who is concerned about a strong currency? who isn't? to me, the fed is one of the most concerned, and that supports the case for a stronger dollar. . tom: i've got to ask, for radio, it is very important to understand. i look at the tortoiseshell stratocaster behind you forget are you using the seymour duncan red devil there? is that what you are doing to get some pop off the bridge? erik: tom, i didn't know you are a guitar had. tom: i am not. lisa is. lisa: i am feeding him questions. [laughter] erik: this is my engagement gift to myself behind me here.

[laughter] lisa: promising start. kailey: -- tom: she got a ring -- erik: she got a ring and i got my start -- myself a guitar. tom: just lie about the next marginal guitar. erik nelson of wells fargo, thank you very much. and a shout out to the gibson 335 effort. that was the latest guitar i lied about as well. lisa: i love that. this is what i am going to occupy myself with while you plan out what to do. we are getting some huge news. we had reported earlier that jamie dimon said he believes jp morgan's presence in china would outlast the communist party. noting that their entrance to the nation was at the same time as the communist nation was begun. he is now coming out and saying i regret and should not have made that comment. he was trying to emphasize the longevity of his company, and

this comes as many people wondered what the chinese internal reaction would be since it probably was not the most flattering of comments. tom: you really wonder, will he bring this up in his widely read annual report letter as well, in talking about the new relationship of western banking to hong kong and beijing? erik: -- lisa: jp morgan has a lot on the line in china. it has made a huge investment in that nation to try to expand out. they do not want to mess with the leadership which has been particularly sensitive. it was notable that he made this comment. he was trying to be light about it. however, the fact that he is coming out and saying this now indicates perhaps people are rethinking the ramifications. tom: this extends to western banking, and to endless banks as well.

hsbc with a new repurpose and over to china. this is a european thing bigger than in the u.s. kailey: it underscores the difficulty of banks wanting to capitalize on the rapid economic growth we have seen in places like china and the burgeoning class there. at the same time, they have to be so careful with the way they do business. they have to watch every single thing they say, and something that may seem like an off-the-cuff joke to jp morgan ceo jamie dimon isn't necessarily taken that way by beijing, and as you see, he has to kind of walk it back. tom: stay with us. economic data and 45 minutes. ♪ ritika: with the first word news, i ritika gupta. president biden's bill back

better plan has a tax cut for millionaires, but the megarich would pay more, cording to data released by the congressional tax scorekeeper. millionaires would pay a higher average tax rate, 33%, up from about 30%. but there's earning only single digit millions could end up paying less. inland musk has resumed selling shares to tesla, more than halfway to making good on that promise to offload 10% of his stake in the lecture carmaker. musk has offloaded about $9.9 billion of those shares. the government is debating measures to stop a coronavirus surge. only people who are inoculated go to public places like movie theaters. british business leaders one prime minister boris johnson to make peace with the eu over northern ireland. the confederation of british industry is urging johnson not to follow through on his threat

to spend part of the brexit divorce deal. the terms of negotiations is said to have improved. shares of dell and hp each posted orderly revenue that beat the estimates on wall street. businesses are spending more money on personal computers as they bring him please back to the office. companies said supply chains will continue to limit the number of devices it can ship next year. global news 24 hours a day, on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i'm ritika gupta. this is bloomberg. ♪

>> because of the scale at which we operate, we were able to login our supply chain cannot

mince. we have been able to absorb the increase in pricing from a cost that sold offset with efficiency. so we are not seeing a dramatic increase on consumer pricing. tom: hilary schneider, president and ceo of shutterfly, one of the most interesting people and digital america. she's got this wonderful pedigree of working with retail companies. really an interesting voice about eating the price increase of all the inflation that is out there right now. of course, inflation moving from the real to the nominal. we will do that on the data and about 35 minutes. right now, david wilson looking at what we all know which is seven stocks, and they have gone to the moon. dave: what we are talking about here, the growth versus value comparison as it plays out in

larger companies relative to smaller ones. it is a comparison that chris verrone at strategas made on twitter. he looked at the russell 1000 growth versus value and the russell 2000 growth versus value . when he won those numbers, you see the ratio between those indexes hit a low in march, and since then has been up something like 20%. tom: this is the best chart you have done in ages because you have a ratio on top of a ratio. of those four things moving around here, what is the thing that is moving around? is just a gross valuation of what we want to pay for amazon, right? dave: that is a piece of it, no question. you've got to remember that some of those meme stocks are actually considered value. so you look at an amc

entertainment, as it is defined for now within the russell indexes. you also have avis budget. those shares have been taking off lately. so there is something to be said on the value side of the equation. at the same time, it is definitely a disparity in terms of growth. tom: avis windows is up 700% this year? lisa: honestly, i am being flipped here, but how much is this a indication of peoples knee-jerk reaction to look for buzzwords like electric or some other meme of the moment? tom: that is 8 --dave: that is a piece of the story, but when you think about other companies, that is less of an influence in the equation. one thing you can say is if you look at the growth companies in the russell 1000 versus those in the russell 2000, you will see that as a group, you will see

there are more people that are profitable. so there is a fundamental element, striking sort of distinction between larger companies and smaller ones. tom: mike wilson coming up. lisa: i am very curious to see how he distant wishes this idea of a potential lack of dynamism in equities at the same time you see the economy picked up. tom: a really interesting career in journalism and terrific perspective across the pacific rim, writing for bloomberg opinion. the stunning and single headline of james dimon saying he was sorry. how does this occur? how did he decide he needed to

apologize? reporter: jp morgan is making a major push into china and a lot of investors have been asking whether that strategy makes sense, pushing for the so-called common prosperity drive. for him to operate in china, they don't like jokes. we have never seen politicians crack any jokes. it can be very politically expensive because in china, a lot of people feel like society is not going the right way. economic growth is slowing. the wealth gap is widening. lisa: doesn't this really

represent the main issue of a lot of the companies going into mainland china? if you have a style of telling it like it is, being joe beale -- being jovial, and potential he having a party that could crack down on a $20 billion investment of jp morgan, isn't this a dissident corporate model for these companies? reporter: absolutely. for a lot of u.s. companies, they look at consumers there, but they also have government connections that are very important for regulations. in china, basically, don't be funny. kailey: jp morgan isn't the only bank trying to push further into china and the asia-pacific region. who is toeing the line and doing it well among the banks?

reporter: i personally think ubs has benefited quite a bit from the china joint venture. they managed to take majority control of their china securities business, and there has been a lot of trading flow. a few years ago, the chief economist made a joke about chinese pigs, and there was a backlash. basically, if you want to work in china, you have to be quiet and compliant. tom: thank you so much. terrific perspective there. you can read her work on bloomberg opinion. can fan off about the way she encompasses all of the pacific rim. this is a market setting up for economic data in 35 minutes. you see it in the yield space with yields recovering. the two-year yield rounded up,

0.61%. lisa: some pretty strong numbers here as we see a u.s. economy that is really gaining momentum. just quickly, the idea that you can't have a great sense of humor, you have to remain quiet if you want to build your business in the world, and the second biggest economy at a time when every major u.s. company says that is a significant strategy of theirs. if you think about the tech companies talking about their expansions, how does this work, this disconnect in culture? it is going to be an increasing problem. tom: i agree, it's got to be a forebear of what we see in 2022 as capitalism adapts to a new chinese message. kailey:kailey: we have heard of government warning of the risk to doing business in this area come but had traditionally been a haven for western businesses. it is not so much a fact anymore. tom: "i regret and should not

have made china comments," from james dimon of jp morgan. coming up, mike wilson. futures -16, dow futures -140 six. this is bloomberg. this is bloomberg.

>> demand is very strong not only in the u.s., but globally. >> i think the supply and demand balance will prevail. >> inflation is popping up as the main problem facing the fed. >> i don't think the forces that have led to inflation or disappearing. >> there's a lot of divergence. >> this is "bloomberg surveillance" with tom keene, jonathan ferro, and lisa abramowicz. lisa: countdown to an economic data dump. this is "bloomberg surveillance"