>> people are not well-positioned for the environment we are imagining now. >> there is the risk that all markets go down, long-term treasuries, equities, there is no place to hide. >> negative real yields are very positive thing for risk assets. >> for another year i think stocks are the best game in town. >> bloomberg surveillance with tom keene, jonathan ferro, and lisa abramowicz. jonathan: the hawks are out in force. good morning, good morning, this is bloomberg surveillance on tv

and radio alongside lisa abramowicz and caroline hyde. your equity market declining falling back a little further, down .2%. we heard from dudley and now we hear from another former fed official ringing somewhat of an alarm. lisa: what do you make a former fed officials increasingly vocal about the dovish track the fed has taken, encouraging them to go fast. not just with near-term rate hikes but longer-term projections, which i'm going to be watching in their announcement tomorrow. jonathan: there's a difference saying this is not transitory and ringing the alarm about something worse. i will read it again. an aggressive rate, the festivity will risk a repeat of the great inflation of the 1970's. this parallel of the 60's and

70's and what is happening now? lisa: it highlights how new this environment is in 30 years. we have been fighting disinflation. we have not seen inflation and people have thrown out the curve , the stanley fisher curve. the idea of low unemployment rates leading to higher inflation. all of a sudden people are saying we don't understand how long-lasting this could be but it seems persistent and we don't understand how it comes down. jonathan: the former minneapolis fed president reflecting on the mid-1960's and early 1970's and the inflationary psychology of that period. is there parallel now and back then? caroline: as i thought the federal reserve was upcoming in 2021 the focus was not just price stability it was an inclusive jobs market. from what i remember unemployment is coming down, 4% or so, but the issue is

inflation becomes a societal issue. will it hit those with the least money, the lowest income? often that ends up being an inequality element. you have to take both into focus. for me it is interesting how quickly it moved on from the debate of any quality focusing on inflation. jonathan: that was the fear. it would overwhelm a sustainable and inclusive recovery.arguably that is what we are seeing playing out. lisa: we had the luxury of talking about that we didn't have inflationary pressures. there is an article about this. does the fed have to move away from its inclusive mandate for the employment market because inflation is too pressing of a concern? jonathan: the price action this tuesday morning, one day still to cope. futures down eight points from the s&p. we have mike next. i know mike well.

caroline is with us in london. i'm keeping up. yields up a couple of basis points to 14360. we will catch up with the biggest bull on wall street. mike, johnny is looking for 5330 on the s&p next year because he believes we are not going to get this quick tightening cycle. they will tap the brakes as gently as they can through next year. what is your view on that? mike: to be honest, i think even if they raise rates three times next year it won't have a major impact on the stock market. we look at the interest rates of the year and it is much lower than it was. as interest rates go up the impact that will have on the economy and stock market will be lower. lisa: why isn't the dovish

stance of the ecb providing more of a boost to outlooks for that region in terms of risk assets? mike: i think at the moment europe is being held back by everything going on with omicron, as is the case globally but particularly weighing on northern europe where you have pretty high hospitalizations and lockdown measures in place. i think if we get through covid europe is pretty well set up, but we have this near-term headwind to deal with. lisa: the reason i ask is over the past 10 years it was dealt by the fed and ecb where you saw a bank pour money into risk or step back and reconsider. now you have the opposite where they are saying go into the u.s. because the fed will be hiking rates for the right reasons. is this the new paradigm we are in? mike: ultimately what is

different this time is the labor market healed so quickly. you compare with the last cycle, it took many years for unemployment to get down to these levels. it healed incredibly quickly for environment above target inflation. the wage inflation looks like it will be sustained, and therefore an environment where the fed should be putting rates up. i don't think -- the u.s. economy can withstand north of 2% interest rates fine at the moment. i think that the fed should put rates up but i don't think investors should worry about it too much. caroline: yes, backward looking because we now focus on omicron for the month of december, but we did see record high payrolls at the moment. so many people falling out of the labor market. how much of that when you say the labor market bounced back, how much of there is a worry in

the u.k. that europeans went back to europe and people retired? mike: that is an issue in the u.k. exacerbating what looks like a tight labor market. the retirement issue is global, the same picture is in the u.s. the hope is that there would be a substantial rebound in the participation rate. a lot of those over 55 probably aren't going to come back if you look at the net wealth. they are extremely substantial. a tight labor market in the u.k. and the u.s., hoping that a lot of those over 55's comeback back in the participation rises. it is not really that wide. caroline: wage pressure in the u.s. and u.k., omicron in the u.k. and down the line in the u.s. we think, why was it right, or has it been right, for the bank of england to make such a

dovish pivot having lined this up so significantly to think we could get some kind of rate hike this month, but the u.s. at the moment, many a hawkish tone coming for the federal reserve to stay on course? mike: i guess, if omicron proves to be a problem, and it is too early to say for sure, if people who have been booster jabbed and up in the hospital, a lot of them end up in the hospital, clearly -- next year. they are dependent on omicron not being a problem. in the u.k. it makes sense for them to wait until february to see if omicron ends up being a big problem or not.

if omicron is a problem, rate rises will be delayed. jonathan: no hike on thursday? is that the call? mike: i think it would be wise for the boe to wait because we don't know yet. there are some positive signs. hospitalizations in the u.k. are not rising materially yet, but there may be a lag between hospitalizations and infections. we will know by early january how much of a problem omicron is. u.k. is the perfect real-life experiment for markets to be focusing on. a very high proportion of over 50% being booster jabbed. if we see people with their boosters ending up in the hospital in large numbers we know we have a problem globally. if not things are in a pretty good place and the narrative around central bank hikes comes back on the table. jonathan: done, we all go home?

lisa: leading the witness. jonathan: it's fine. i am really starting to recruit people to this effort. lisa: people do not want to write off the uncertainty of a bank of england decision. i am biased now because i hope they hike simply so we can get you on the phone for you to say the year was not over on wednesday. tongue-in-cheek. you promised you would call in from wherever you were. we could see a picture out your window. jonathan: a video call? lisa: i want you to do a zoom call. i think it would be fabulous. everyone has written off covid will stop there are peripheral concerns, but no one actually cares about the covid pandemic as a major risk going into 2022. jonathan: what mike said about the u.k. being a fantastic case study, it is because the amount of testing we do, the fantastic

sequencing we have, we have good data to work with. caroline: worrying data as it stands. two hundred thousand cases per day in the united kingdom will set the fact that it is so transmissible and you have relatively high vaccination rates in the united kingdom and we are talking about if christmas will be as we envisage . we are seeing travel effects and the economic damage that may have. around home of the places were empty. jonathan: are you still running home? i remember that from two years ago. caroline: got to get it in any way you can, john. jonathan: sweatpants ready to go into the running shoes every day in the afternoon. i would get the tube. caroline would run. lisa: i did the same thing. i run home. jonathan: we tried to get you to come for breakfast and you wanted nothing to do with it. lisa: i had to pick up the kids. jonathan: of course you did.

lisa never wants to hang out. it's the truth. you get invited all the time and you always say no. from new york, this is bloomberg. this is bloomberg. ♪ >> two studies are out showing mixed results about pfizer's experimental covid pill. it was highly effective at keeping patients out of the hospital, but didn't do as good of a job of mild symptoms associated with breakthrough symptoms. it will likely be used for covid patients at risk of developing severe disease. in the u.k. they will use soccer stadiums and racecourses 400 more -- hundreds of more vaccination sites. the new omicron variant counts for 20% of confirmed cases in england. the estimated number of daily infections climbed to 200,000. toyota makin it clear they are making it serious about making electric vehicles.

targeted selling 3.5 million vehicles annually by the end of the decade. they plan to roll out 30 electric models by 2030. j.p. morgan and goldman sachs are opening their wallets to keep bankers happy. that will put pressure on their rivals to do the same. goldman may increase its bonuses by 50% and j.p. morgan may increase its pool by 40%. they may have to overpay to keep the people they want the most. global news, 24 hours a day on-air and on quicktake, powered by more than 2,700 journalists and analysts in more than 120 countries. this is bloomberg. ♪

>> the fed balance sheet has distorted what happens with pe

multiples. if you have a flattish balance sheet we should have a flattish multiple. when you can track the balance sheet that is what the recent history tells us should call the contraction in the multiples. jonathan: we are not meant to have favorites, but lori is one of my favorites. from new york city this morning, good morning. lisa abramowicz, caroline hyde, and jonathan ferro. down 70 on the nasdaq, .4%. the bond markets are higher at 143 77. in 12 minutes we will get pti data in america. it is your outlook on the s&p 500. bottom three, top three. bottom three most bearish. barclays at 48. top three, credit suisse at 52, deutsche bank at 50 to 50, and

then bemo at 5300. shaking up the whole table, going number one is a new entry in the last 24 hours, going to 5330. he joins us. let's start here. where do the extra 30 points come from and what did he do to upset you? >> we are old pals from way back even though we haven't talked in about a year. pre-pandemic we ran into each other outside of the exchange. he was coming out and i was going into the exchange, but we have not spoken. i just looked at the numbers in the momentum we've been seeing in these rallies, the broadening of interest in equities and the propensity of the indexes to potentially self-correct in the course of rotations and rebalancing, it can happen day today, not waiting week to week or month to month. a healthy market and the economy

coming back, we wanted to edge it out. jonathan: what you said about the fed got my attention. we look for the central bank to pump the brakes as lightly as it can. what you see as the central bank that will step on the brakes as lightly as they can? >> it is the context that we bring. this is 38 years on wall street. i remember the alan greenspan era. this is the bernanke legacy of federal reserve. it is highly sensitive its mandate of full employment and a stable economy to achieve that. we think that they will be very careful. the irony is the market is freaking out because the fed is getting considering tapering at a more aggressive pace.

the market has been dying for the fed to taper. if the fed is behind the curve, give it a break and let it taper. it will get to probably tweak the benchmark, the fed funds rate, probably later next year. six months to nine months out from where we are now. lisa: you're touching on one of the biggest debates on wall street. does a faster taper mean a sooner rate hike? a lot of people think yes. can they potentially separate those two more at the press conference is a key question. my question is you are looking for 12% earnings growth for the s&p 500, a really robust consumer throughout 2022, and a fed that remains patient and has the confidence to do so despite this robust data. can you dovetail those ideas? john: we think right now people

are overspending. we think the stimi checks, the amount that people saved when they were not commuting to work, what have you, people have more money then where they fall on the income strata and they are spending it. the effects of the gasoline pump prices going up come the effects of meat and poultry and pork, all of this adds up. the consumer will bring it in a little but not stop spending. a big thing has always been don't bet against the american consumer as well as do not think that technology will end. caroline: don't bet against the consumer and in some ways the supply chain has been affecting the consumer. i wonder if you see risk to your focus from omicron or the way

the consumer reacts to that? john: the omicron risk is significant. in some ways it is how it is looked at from afar by people who are not entomologists at the risk and element that it can cause over concern. let's leave it to science. science has done an incredible job if we look back to 2020 when people thought that it would take two years, four years for a vaccine efficacy. we have come a long way, technology boosting. i missed the next part. the consumer? the consumer has shown a great desire to shop, online or bricks and mortar, or a mix of both, the consumer wants to get back to the next new normal.

i don't think that we are going back to what the normal was for quite a few years. lisa: are you calling for apple to be a $4 trillion company by the end of 2022? john: we are thinking technology continues to be something that investors want to have exposure to. you have to break up what you are looking at. we like more established companies was that we think newer ones are risk and volatility, but know that you are not going to get steady earnings, steady cash flow, process of innovation and culture within a corporation that is established with a certain relationship with shareholders. jonathan: you squeezed out the extra 30 points, the most bullish on the street going into

next year. quite a catch up as always. thank you, john. lisa, something you said i think is true. when you make up 7% of the index it is hard to believe we go from 4700 to 5330 and we do not get a nudge up to $3 trillion market cap on apple. lisa: how much are these companies drivers of all returns and how bifurcated can the return be if you see high-performance and high yields? i'm looking at this. if apple goes to $4 trillion, why not 5335? that would not be my call, are you kidding? jonathan: we have the most bullish on the street behind us. ahead of us is mike looking for a rate hike in may. and a risk that they go in

march. catching up with mike very shortly. just around the corner. breaking down data for you in moments. in new york city, this is bloomberg. ♪

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lisa: how does an extra trillion dollars in spending not increase inflation? >> by increasing the capacity of this country. that is something we have not successfully done across multiple lifetimes. i've been waiting for this legislation for months, but various presidents have been hoping to reach this day for decades and it hasn't happened for all kinds of reasons. the american public has rightly been impatient. we are getting it done, making up for lost time and laying the foundation for the future. we laid out that part two of the agenda, the build back better act has even more to help beat back inflation by lowering costs that americans feel the most acutely, the cost of childcare, health care, housing, prescription drugs. bringing those down while also making sure we ease those labor

market issues and making it easier for working parents to afford to go back to work. ♪ jonathan: from new york city, i am alongside lisa abramowicz. i am jonathan ferro. yields are higher by a couple basis points on the 10 year. with your ppi data in america, here is mike mckee. mike: good morning. the producer price index for final demand shows companies are still paying a lot more money for their goods, and that is not good news for the inflation picture. the month over month change, 8/10 of a percent is up to tenths from last month and re-tends higher than the expectation which leaves the year-over-year number -- i missed the calculation. 9.6% which is up from 8.6%, a full percentage point higher. take out food and energy and

that is the number that people want to do when they are not considering what is happening with energy prices. 6.9% year-over-year, way ahead of the october number of 0.4%. we are seeing significant increases in overall prices paid by companies for their factory made goods. one note this morning, the small business optimism index came in, a little bit stronger, a little bit better but the prices charged number rose significantly. we are seeing inflation still in the economy. it is not the t word. jonathan: down 15 on the s&p. yield is making a move but we were already there on 10's. lisa: it is compelling to me because how much is baked in and

how much can companies continue to pass along to consumers? starting to push back with respect to higher prices, that will be the question with respect to the consumer, but i am surprised we are not getting more of a reaction considering this is a significant upside surprise at a time when inflation is one of the key concerns. jonathan: mike mckee, walk us through the fed tomorrow. they've got labor market data, ppi data. what are you looking for, tomorrow? mike: the first thing you want to know is how fast are they going to taper, and the expectation is they double it. moving on quickly from that to forecasting for inflation. these guys anticipated for the last couple of years that inflation would fall back to about 2% in a two or three year time. . do they raise that, given what is happening and everyone is going to want to look at the dot plot and get an idea of how fast the fed thinks they need to

raise interest rates and how far that will tell us something about when they might be looking to do that. jonathan: let's begin with left off. we can do that with mike gapen, chief u.s. economist at barclays. march is the call now for lift off. what separates you from the pack? michael: good morning, and thank you for having me on. the concern about inflation, where it is coming in, i would say it is a twofold argument for us. one is the november minutes say risk-management is now the guiding principle of auditory policy. in the extreme, that means you don't necessarily need to meet all of your left off criterion to move rates higher. you can be worried about the risk of higher inflation. that is one argument. the second would be that employment report that we received last week, a very solid

decline in the unappointed rate. a one percentage point decline since august and we think other members will think we are probably a lot closer to maximum employment. the economy is accelerating fairly rapidly. omicron concerns aside, there is a lot of momentum. labor market progress as been healthy -- has been healthy. lisa: we were just hearing from jonathan -- from john still spruc -- at the federal reserve. what do you say in contrast to that with your call going against that, given the fact that the fed has basically been saying something of that nature until a sharp pivot in the past couple of weeks? michael: prior to this sharp pivot, i would say that was our view too, that you could do risk-management to start tapering to create optionality, but then you wants the data

under your feet as it came in, in terms of deciding when to lift off. risk-management was about the beginning of taper, not rate hikes. if risk-management is the -- then tapering, the pace of taper, the pace of hikes, all of that could be done for risk-management purposes. you could argue that the decision to taper more quickly does so do a signal about your willingness to hike rates. -- does send a signal about your willingness to hike rates. lisa: we have seen such aggressive rhetoric from officials, including former doves like coach lakota coming out this morning and saying the fed is risking a 1965 type scenario where inflation looks

containable and ends up not being so. michael: it is a reflection of the pressure they are getting across the board. you saw the comments from congress, both sides of the aisle stating concerns about inflation for different reasons, wanting the fed to respond to it. this isn't a partisan issue. it is coming from your traditional economists, your unorthodox economists, republicans and democrats in congress. there is a chorus of calls for the fed to respond to this. i personally think the risk of a 70's -- of a 1970's style inflation story is overblown that that doesn't mean the fed should be responding to risks for inflation in the near term. we think inflation will ultimately come down and the fed will have its credibility maintained in terms of achieving 2% outcomes over the long-term. i think the risk of a wage price spiral are overblown and the

quicker the fed moves, the less likely that is to come to play. caroline: i am at your stood in how much the other side of the fed mandate was inclusive in the jobs market and inflation perhaps ekes into inequality even further but how much does that become a focus point once more? michael: that is a great point because risk-management means you may be lifting off even though you might not think you are at maximum employment. the committee hasn't really gone to great lengths to clarify to you what broad-based inclusive means. it doesn't even define what employment is, in its statement of longer run policy. it is more of a we will know it when we see it. optically it could look difficult for them, where they are raising rates but still several million workers are out of the workforce and participation is subdued. it's not a great position for

them to be an but it is the one they are in. i would say that if inflation does start coming down rapidly over the course of 2022, then maybe they pause any rate hike cycle they started and shipped back in the direction of it'll be more easy for us to ride out and expansion in improved market outcomes. there are worlds in which they could shift back to promote full employment. caroline: how much could the strength in the dollar be the thing that eats away at inflation for 2022? michael: that's a great question because in the last cycle, any kind of movement or rate hikes came with a lot of dollar appreciation which fed back into lower growth and lower inflation outcomes. the fed shift brings our rhetoric and the fed communication in line with where markets are. we are not necessarily thinking a pivot at this point or rate

hikes in 2022 may bring a much stronger dollar. you have to have the fed moving more rapidly than the market is expecting. i don't think we are there yet. it is less likely but certainly something we are watching out for. over the long term, it is part of the reason why the market terminal rate is lower, that the fed will be raising rates more than other developed economies which would likely keep the dollar buoyant overtime. it is part of the story on the terminal rate but not in the near-term performance of the economy. jonathan: michael gapen, work with me. year over at 3:30 tomorrow. send the team home, we are done here? michael: sure. lisa: what if something happens at ecb? michael: i am a u.s. economist. jonathan: there you go. mike gapen of barclays. they got a pay rise which means they will work up until

christmas and mike gapen is going to go home. isn't that how it works? lisa: i love that. "i'm a u.s. economist." we will call you if the bank of england hikes rates. jonathan: negative about half of 1% on the s&p 500. we are down about 150 on the nasdaq. -9/10 of 1% and we give up some of the move on 10 year yields. now up barely one on a 10 year. lisa: to me the idea that stocks might be more vulnerable to high inflation rates is interesting. perhaps bonds were already priced in, and stocks have not really gotten on the same page. it is something you and i have been talking about with respect to why stocks have not responded more to the movement over the past couple of weeks. jonathan: you and i have clearly spent too much time together.

i got this message moments ago, my computers went crazy, fusion done. that is terrifying. lisa: absolutely terrifying. here is the question. jonathan: just the important part of this. the s&p 500 futures were down a 10th and now they are down five. lisa: that is what happens. jonathan: i don't know who is scaring the market more. futures down 23. caroline hyde, a special thank you to you. coming up at the open, david jones from bank of america. can we put me back in, to remind people of what i actually look like? just a refresh. this is bloomberg. ♪

caroline: in the north -- ritika: in the northeast u.s., officials are using every -- that has emergency rooms overflowing and infection rates soaring. new york is requiring masks in all indoor spaces across the state. massachusetts is sending home free test kits to the poorest areas. covid places -- covid cases climbed 40%. in kentucky, 14 were killed in four other states and attention now turns to repairing the power grid and delivering drinking water and other supplies. international agencies say relief for the tight world market is now on the way. there is a surplus in the market and the agency for cost and oversupply year because the omicron variant is impeding international travel. the imf warns that the british economy is heading for a slowdown early next year because of tighter restrictions aimed at

limiting the spread of the omicron variant. 5% growth was forecast in 2022 after an eight point -- after an 8% increase this year. billionaire elon musk -- uses that the power spacecraft. his rocket company is launching a type of technology that is still in early ages of development. 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. ♪ is is bloomberg. ♪

>> the fed thinks that neutral is 2.5. i think they will have to go beyond neutral in this cycle,

given how far they have let inflation run already. my thought is we are going to be somewhere in the three to three and a half range. lisa: the big debate on wall street, is the fed policy moving too quickly or too slowly and frankly, people cannot agree right now. that was stephen stanley, saying they need to come out more frequently -- more quickly. right now, it is amazing to see how people are looking past covid as a possible risk factor to markets even as what you are living is eerily reminiscent of what we saw last year. caroline: and already affecting central bank policy in the united kingdom. the bank of england doing a u-turn. they were looking at a real rate hike right here right now, but -- immediate concern of an omicron variant. lisa: in the meantime, people

are looking to apple to become a $4 trillion company. i'm looking at the next bull to get more bullish than the next. the issue i have is how much do we ignore the failures? do we ignore the missteps in our trajectory upward, given that is all we seem to be seeing these days? -- recently wrote a piece about the survivorship bias, how we certainly focus on the winners than the losers. you are talking about legos. are you very interested in legos for this christmas? >> it is not just legos. it is anything you could put money into and pretend is an investable asset class. it is collectible wine, artwork, cars. we see the winners, we see the ferrari 275's that go for $13 million. it is easy to look back in hindsight. you forget all the other investments that didn't pan out.

legos is a great example. the whole beanie baby bubble craze from the late 90's, it wasn't that long ago and yet people are already forgetting about it and pouring their money into the next thing. there is not a lot of scarcity with legos, even if they do only a small run of a particular set. there are still tons of them. lisa: aside from the fact that we are heading into the holiday season, what is the analog for investors in terms of paying attention to the potential for failure that certainly getting mispriced in certain pockets. >> i am not in the mispriced group, or at least i am not there yet. it takes a certain amount of chutzpah to say i am in collective judgment of the markets. markets do get it wrong on a regular basis but things get really extreme. look at the past decade of earnings growth.

it is the best earnings growth we've seen in a century, and so the market correctly sniffed out that, rising profits rising revenues means it can support a higher level of stocks. another discussion about the right way to measure evaluation and are stocks pricey? that is a whole other conversation i am ready to get into. caroline: i'm going to ask for the digital. looking at the crypto space, trying to find ways to have exposure to spot bitcoin. what about the infusion of liquidity that we continue to see? >> let's take that backwards. we will start with an fts. i am of the generation that i want physical stuff, not as much digital stuff. i like the old double albums you

can open up and read the liner notes. that said, there are a lot of people with a ton of profits in the crypto space and the whole nft world is a little bit of financial flexing, a little bit of admission to a club. it is not where i want to put my money but if that is how other people want to roll some of their profits in fear em or bitcoin, into a 600,000 metaverse yacht or a yacht club nft, that is up to them. i would rather have the home -- the boat or the waterfront home than the digital version but i guess those folks have already checked those boxes. to the uninitiated, it looks frothy but to the people in the crypto sense -- in the crypto space, it makes a lot of sense. lisa: i will be honest.

i'm dealing with this at home because my oldest son is very interested in nfts and tried to sell me on them. i convinced him -- i am trying to convince him that when he earns enough babysitting money, he can get one. this whole theory about how this is the next wave and the fact that they are talking about this. i understand the bull case but i try to be -- try to have a dose of reality. caroline: never be the naysayer. is that a sign of the bubble or is it just that money needs to be put to work elsewhere? does money eventually come out of the digital space? >> we've started to see over the past couple of years, a lot of institutional money flow into crypto, block change, -- blockchain, digital. there is a lot of skepticism, and then suddenly you have places like jp morgan and

fidelity and other large custodians saying we want to be involved in this. nobody wants to miss the next new thing, and this certainly looks like it could be. it is almost a cliche to call it web 3.0, but that seems to be the positioning. the take away from all these people leaving their jobs and the high business formation is a lot of people are finding alternative ways of earning a living, whether it is investing or speculating or starting support companies for this. there is a robust business in that sector, whether it is going to be trillions of dollars and sustainable is anybody's guess. i don't want to bet against those guys. they are smart and savvy and pretty fearless. lisa: thank you for being with us on legos to nfts. that looks like caroline hyde,

just resetting after that higher-than-expected ppi. prices are increasing again, another measure of how they are increasing faster than people had previously forecast. the move in yields in the bond market is fascinating. on the long end you see yields heading lower, the curve is contracting. the application being that the ongoing inflationary expectation will move up in the near term, which will force the fed's hand and lead to longer-term lower inflation. caroline: once again, the flattening of the yield curve coming into focus as we worry about the longer-term growth trajectory. it could get even worse from the production side. if omicron hits china, then what? lisa: if you look at the equity markets, the nasdaq, really struck by the idea that the nasdaq is now down. futures down more than 1% following yesterday's selloff. even in the face of -- yield,

how much could this get turned on its head? coming up on balance of power, the president and cheapest ticket of officer of ford. i'm sure he will talk extensively about blockchain disruptions. this is bloomberg. ♪

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starts now. >> everything need to get set for the start of u.s. trading. this is bloomberg, the open with jonathan ferro. we begin with the big issue. >> they do need to act. >> they need to tighten. >> we're likely to see the fed accelerate their tapering. double the pace of tapering. >> i think they have to do it. >> it is more aggressive than expected. >> they're trying to buy some optionality. >> there wanting to move faster in 20 22. >> they can do it.