>> we need and we need to believe that we have a bed that is awake at the wheel. >> the fed is the loosest central bank on the planet. >> this fed is focused on meeting both mandates. >> it's clear that inflation will be higher than people think in 2022. >> the economy can handle rate hikes. i'm not sure the market is going to be able to handle it. >> this is "bloomberg surveillance. lisa: from new york city and from london, good morning, this is "bloomberg surveillance," kailey leinz here. they missed a down day yesterday and they are missing buying up the vix this morning. >> it's not a particularly big volume.

delivered on decent volume, the selloff reached into most parts of the equity market with today, bouncing back. the ftse 100 is up 9/10 of 1% of we are down on the volume front. that is what you would normally expect at this time of year, it's not a convincing bounce back. a lot of things are unknown, like what's happening with u.s. fiscal policy, the omicron variant. there's all kinds of factors in the mix here. volume is light, yields are higher for the bond market on offer. the story overnight was turbulence in turkey. and then you have the issue of european gas prices, something the ecb is going to be paying a lot of attention to. kailey: gina, are you buying the stabilization in equities this morning?

gina: we are likely going to struggle to make new highs but we are finding support around the 100 day moving average. again, yesterday, and esther's started jumping in right around the time the market hit closer to the 100 day moving average with significant support on the s&p 500 for more than a year now. what i'm worried about is what's happening in small caps. breaking down the need to support level is a real risk and could filter through to an early signal of fading risk tolerance. you are certainly -- kailey: you are certainly seeing a dip in tolerance on a day when futures are broadly higher. guy: yes, futures are higher. brent is ok on the upside, but volume is reasonably week.

these are the numbers, u.s. futures are taking higher. the euro, which is interesting, the dollar didn't do what it normally did yesterday and it will be interesting to see if ultimately the markets are signaling through the dollar that they are not convinced about the fed ability to deliver on the rate hike on the dot plot. little selloff, not much to write home about. crude bounces back but i don't think that the story in crude is really the one to focus on when it comes to the energy complex. gas is the story in europe right now, the energy crisis could get worse. kailey: it strikes me how much the bond market is not the story. if i told you where we would be sitting at the getting of the year, most people would not believe me. this was not the consensus coming into the year given the economic trajectory we have

seen. let's take a look at what else is ahead. we will be getting a little bit of economic data in the u.s., current account balance for the quarter, the deficit is expected to widen to $205 billion in the third quarter. watch out for that crossing the wire. let's highlight the political contrast between where i am on this side of the atlantic and on the other. in germany, the new chancellor, olaf scholz, will be giving a news conference following a meeting with regional leaders on further curbs to deal with the virus. in europe they are talking about restrictions as they deal with the omicron wave. in the u.s. that isn't what we are talking about. we are not talking about lockdowns. we are expecting to hear from president biden when he delivers remarks on the methods that he does want to use. it doesn't involve restrictions, it more focuses on getting tests out to the americans and shoring

up hospitals. lockdowns, not something that is politically salient here in the states. guy: well it's politically not possible in the u.k. as well at the moment. boris johnson really struggling. i think the testing story is smart. that's what the authorities need to be delivering on. a lot of tests are freely available here and it allows people to make smarter decisions, particularly around the holidays around who they will mix with, can they mix, should they not mix? i have seen those people -- those pictures of people queuing around the block to get tested in new york and that tells you the demand that's out there for better information out there. james from aberdeen joins us to give us his take on all of this. let's talk about the price action yesterday. was there signal and the noise? what did you take away from it? james: there was a heck of a lot of noise and you have touched on

the key points. part of that, as you mentioned, breath any europe, in the u.s. less of a concern. stripping out the nasdaq or the s&p, the return of the rest of the index looks so unbelievably front to what we have observed in the broad indexes. so there is a heck of a lot for investors to be dealing with. some of it good, some of it bad, some of it very uncertain. it's already been mentioned that the mentality is not just that year, it's been 10 years. not just in the making, but building, that's a tough psychology to shift. it will take more water behind the damme. we are not there yet. gina: what would it take? it is something that we do struggle with. i think it might be ut. we get to the point where investors say we will be looking

at fundamentals specifically and making investment decisions based on the outlook for growth specifically rather than the fed having our back? is that where the rubber meets the road, so to speak, in qt? james: that's the dream. [laughter] investors analyzing the potential revenue streams of a company and purchasing or selling based on the subjective comparison, that sounds like heaven to me. that might increasingly be the case, but again we are talking about a market that is increasingly dominated by investors that don't even profess to try to play that game and really therefore prices and volatility are the biggest drivers of that behavior and what stops people buying it, the glib answer would be that they stop buying it when they get their face ripped off. you need a number of bad news

items to coincide. qt is an interesting one because 2018 we definitely saw how the equity market responds when it thinks there is a meaningful tightening on the balance sheet. it wasn't pretty around christmas in 2018 and it was interesting that it got mentioned by the fed and the market didn't seem to focus on it. if that's the outlook of 2022, then look out. kailey: how much daylight do you think there is between what the fed will do, but the expectation is on what the fed will do, and where the pricing is. james: the fed in particular seems to be overestimating certain statistics with guidance not being particularly informative for investors who do their own work and often cut out -- come out more dovish. a world that inflation has struggled to get to.

the game should be slightly different. when i see ed at four, or 100 and 60, 165, it looks like a genuine credibility gap and it's interesting to read comments from bill dudley and also mariana, who was as dovish as they come and for him to speak the way he is, there is signal in that. kailey: shameless plug, there, both bloomberg columnists. guy: we love a shameless plug. but this is opaque at the moment. what is your degree of certainty around the outlook for next year? james: zero. there's no micro model that allows us to understand. we never have had it. the curve worked for a time, but that notion of science, if you

like, no amount of supportive observations are sufficient to counteract one negative observation. as soon as you see that it's not a lasting relationship, you might as well throw it away. we do not understand inflation. it pains me, but it is so central in the global financial system and has become the target of central banks everywhere. when we don't understand the dynamics, that's a huge concern. you can see it on the street, the estimates, peaks of five in the u.k., some of them have seven. kailey: on the screen, it shows how there is no consensus for 2022. deutsche bank is out, citigroup's at 2%. there's a lot of daylight in between. james, thank you for joining us. guy, you could say that for basically any forecast, coming

to the bond market or the year-end, there is a lot of uncertainty and not a lot of consensus. guy: normally year ahead forecasts kind of circulate with a huge spread and i think people are really struggling with it. but i think the inflation story is, at the core, what we are talking about here. there is a big difference in outcomes for assets if you look at the various estimates and how the fed is going to react. yeah, on the upper end i think life is going to get interesting. the narrative that we are talking about will be the market having to pay a lot more attention. kailey: the bond market doesn't seem to be paying much attention. positivity of around 1%. stay with us on tv and radio. this is bloomberg. ♪ laura: president biden today unveiling the steps the

government is taking despite the resurgent the pandemic -- resurgent pandemic. tests will be being sent to american homes in the military will be sent to shore up hospitals with a stark warning that unvaccinated americans risk serious disease or death a day after the cdc said the omicron variant accounts are most new u.s. cases. bloomberg has learned that talks between joe manchin and president biden on the economic agenda could be revived. they spoke sunday night hours after joe manchin said he would not back the tax and spending plan. he has presented his own version of the and. it doesn't include the extension of the child tax credit that the president would like to see. a warning for the russian president -- from the russian president vladimir putin, he says he's willing to counter what he calls threats from nato. russia is evidently seriously concerned about the presence of the forces near their border and

that he cannot allow the alliance to put missiles in ukraine. the lira swinging wildly this week. investors deciding if government measures are stately in the long run, falling against the dollar at one point after soaring 20% and electricity prices in europe rising to a record today. france, struggling to keep the lights on. four nuclear reactors have been halted, forcing the french to burn fuel oil. meanwhile natural gas prices are rising with shipments from russia that were sent eastward towards poland. global news 24 hours per day -- global news 24 hours a day on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. this is bloomberg. ♪

>> take us more forward-looking. are you worried about people exiting the pandemic and going back to the gym or are we going to work out at home more? >> that's the advantage that each body has. we have never been a direct competitor with the gym. in fact what we rely on is our ability to influence the 150 million people in north america who are overweight or obese and haven't made the choice yet. our job is to influence them with great content.

and this combination of what we call the total solution. fitness, nutrition, community, so they can tap into this cost-effective solution that is entertaining and engaging at home to get results. that's our job, helping the new person engage in a healthy lifestyle. ♪ >> i think the white house felt very stabbed in the back. they have had these meetings and

conversations with senator manchin and hearing the news secondhand from a tv screen as opposed to getting a heads up from the senator was a huge blow . it makes political sense for him. kailey: those are some of the questions the white house has after that pivot we saw from joe manchin on sunday, creating a massive question for investors that led in part to a selloff yesterday with a dip buying of action taking shape. we are up 1% on s&p right now, 46 01. not too much movement in the treasury market. there is some selling pressure that is mild, oil trying to take part in the risk appetite rebound after two days of losses that amounted to 5%. wti futures up. let's get to the situation down in d.c. and joining us now from

outside the white house, josh wingrove. as we think about the path forward for the biden agenda here, there are calls from the left and progressives who want him to take action through executive orders. two questions, there. can he do that and will he? josh: always a bit of a mirage to talk about executive orders. you don't -- president trump loved doing that, you do it without -- when you don't have the hopes of getting thing -- things through congress. yeah, there are little bites at the apple they can take but nothing near on the scale of what they were talking about on this bill. we have had some two infra. the reporting last night was that joe manchin and joe biden spoke last night sunday evening, opening the door to continued talks on this. the joe manchin proposal from five days earlier was 10 years of pre-k with no child tax credit. that's as close to a deal

breaker as you get from joe biden but he is not really a guy that digs in on deal breakers. the biggest change was on the pay for side, the revenue side. he blew it apart in a way that other senators like kyrsten sinema wouldn't like. that was the two and fro and it went kaboom in the days that followed and now they are trying to pick up the pieces. kailey: are the pieces more put together today than yesterday? you are seeing risk appetite coming back into financial markets. is there a better sense of optimism in washington this morning? josh: i would not say that. i would say that people are as stunned as they were on sunday. don't look for big news on this before the new year. washington has shelved to this through january and then he will look to see if they are moving on a skinny kind of package, is there talk of tweaking the existing bill or going back to

the drawing board? they did want to get something done in january to save the child tax credit, but that's a separate issue. guy: are we talking about fewer programs being funded for longer? joe manchin seems to have an issue with effectively the way the numbers are running in the market. there is probably evidence to support his position. could we get a cleaner bill that provides more long-term certainty around some key programs? josh: i think so. joe manchin seems to think that we are playing gimmicks with the way the math is. some spending over one year or two years, revenue over 10 years. house matter it's -- house moderates have called to go back to basics. ron klain tweeted out there statement, so it seems like there is an open door for that. in the meantime, biden will have other things on his mind. today he's giving a speech on

the omicron surge. 73% of cases in the u.s. are omicron. he will nab the plan to give 500 million tests beginning in january, then free to americans. notably the plan doesn't include anything in terms of the -- in terms of behavior mitigation. they are not asking americans to put off plans or gatherings at all. gina: speaking of other things on the minds of politicians, next year's midterms, year one is now over. most people know that you can get legislation passed in your one. at what point does the clock ticked to zero in this bill isn't even on the table? josh: i mean, there's not a lot of runway. there's a reason they wanted to pass it now and in the fall. the landscape, the pressure is

rising for democrats. the baseline expectation is that the midterms are going to go that well for them. particularly the house. in other words, your window is closing and progressives are sort of demanding action, but the nuts and bolts are that they can only do what joe manchin wants. republicans are uniformly opposed to all of this and that's a conversation democrats are willing to have when it comes to bashing republicans on the head. it's the reality of the situation. as long as joe manchin says no, the answer will be no. they have to find some thing he wants to do if they are going to do anything at all. kailey: josh, thank you so much. that question around the midterms is very crucial. we are less than one year out. i was on a panel with the rbc strategists talking about what they think the biggest unappreciated risk in the year ahead was in she said she

doesn't think people are taking political considerations into account enough and that midterms could be a major risk factor. gina: it definitely could be. we are going into another election. we now live how volatile those have been for the last several years running and it can be a huge risk. i think that investors are generally expecting that by the end of january we have something past that will shelter the economy from downside risk from the federal government and we are already moving into a time when fiscal policy will start to add less to the economy at the same time that monetary policy adds met -- less with an environment of elevated risk that investors will have to grapple with. kailey: and looking back to that last election that wasn't even over until we saw those elections in georgia where we had some consensus that a blue wave was the best possible scenario. that has proven very difficult to actually accomplish. guy: yeah.

we look at how the selections go. the expectation is that it will be back to divided government. isn't that something the markets have broadly welcomed in the past? stasis in d.c. is generally seen as a good thing. this time there was an expectation for a big fiscal push. some but not all. but isn't returning to good gridlock a good thing for equity markets? gina: generally it is but the reason it's risky in 2022 is because federal spending has become such a gigantic chunk of gdp. we have to go through this rationalization of economic conditions where federalization and fiscal impulse becomes less and that's risk. markets would likely go into a more volatile state. we talked with former guests about the on-again off-again market developing into 2022 and that's realistic considering how big the programs have become and how much they have contributed to growth.

kailey: well will the elevated volatility persist until we are talking 2022? equity futures are possible this morning with your 10 year yields sitting at 140 498. stay with us on tv and radio for more coverage of the markets. this is "bloomberg surveillance ." ♪

every day in business brings something new. so get the flexibility of the new mobile service designed for your small business. introducing comcast business mobile. you get the most reliable network with nationwide 5g included. and you can get unlimited data for just $30 per line per month

when you get four lines or mix and match data options. available now for comcast business internet customers with no line-activation fees or term contract required. see if you can save by switching today. comcast business. powering possibilities.

kailey: "bloomberg surveillance "bloomberg surveillance this is," welcome to our -- this is "bloomberg surveillance." isil have questions, frankly the same ones i had yesterday but today looks very different from yesterday. in terms of price action in equity markets, you are seeing buying coming in with futures positive across the board. it is tech and small caps that are outperforming. nasdaq 100 futures, the number looks more like 1.3 at this time . two hours to go until the opening bell, so we will see if a dip in the behavior can hold. bond markets, you haven't necessarily seen much movement when it comes to treasuries. there was no massive bid

yesterday and there isn't pressure today. you are up on the 10 year yield but even that three basis point moved to the upside brings us far below where many expected we would be in the face of a hawkish fed to. we are down to the curve on the two-year right now. interesting as well, fx, talking about peculiar behavior. didn't see the dollar getting a haven bid. it was instead the euro with some euro strength today up 1/10 of 1% to the dollar, although broadly it is a story of dollar weakness again today. finally, taking a look at the actions beneath the surface of the equity market, a few minutes ago we had earnings and results from general mills. they expect adjusted operating profits for the year to be down between 1% and 4% and part of it has to do with higher input costs.

it's a story that several consumer staples companies are dealing with. federal earnings stories for the likes of nike, there was strong growth in the u.s., offsetting the weakness in china, higher by 3.5%. macron gave a bullish forecast, there's high demand for chips right now, no surprise. the systems have a potential dual takeover where the stock is up the better part of 8%. finally, we have to note that coin is higher today, we have seen it moving in tandem with risk appetite, benefiting from the risk on feel. stocks tied to cryptocurrencies are positive to the two to 3.5% to 6%. guy: yeah, bitcoin feels very correlated to big tech risk assets at the moment. the volume in europe is like, stocks are up.

sarah hunt, portfolio manager at alpine woods, joining us now. great to see you. i want to paraphrase gina from earlier in the hour, we are buying in again to the mentality , it's still intact. what does it take to change mentality and is it next year? sarah: i was watching before i came on, i have to agree with james, it has to be that the market continues to go down after the pain trade. there hasn't yet been a pain trade and every time they have had some weakness as they look for protection, they burn money on the protection and it has become such a pattern that i think it's difficult for people to remember what it is like when markets don't just have a recovery every time there is a downdraft. talk to us a bit about your outlook for 2022. i know you see things changing as the fed scales back on the rational input.

where are equities headed in the year ahead and how will things different next year relative to the last two? -- sarah: it will be loftier compared to where the fed backstop has really helped. the companies that haven't had earnings or a good balance sheet, it will start to make a difference. i don't disagree with the fact that macro factors drive a lot of investing, so it won't the only thing. i would love a world where we could do that fundamental work that we all started out doing, but that isn't the world that we live in. i think that growth continue to be important, but it has to be profitable. if you have bifurcation in some of the tech sectors, the stocks that can make money, grow, and have a decent balance sheet, they will be able to withstand the pressures around the

concerns of technology where some of the stocks that don't have it yet care, that's going to be a bit different going into 2022. gina: the strong balance sheet story has been so relative to the rest of the world for years now. are there any opportunities emerging elsewhere as the fed scales back and as we see valuations come under a degree of pressure? where are you looking for those opportunities globally? sarah: we tend to have mostly domestic space companies in the portfolio but a lot of them have a big international residence. you start to look at the places where you think you might get a benefit from what will happen in 2020 two and unfortunately a lot of the rest of the world is suffering not just from covid, but economic oath. the u.s. is still in a relatively good growth space and the chinese problem with growth and what they are trying to do to fix it by dropping the

reserve ratio and everything else makes the rest of the world riskier at the moment and we think the united states is a good market and we think that countries that can pivot to international reach will do well in 2022. kailey: i continue to talk about how the year has shaken out far from what consensus thought it would. part of it was chipped to value overgrowth, none of it really worked out as expected. it also applies to the yield curve. there was a steeper curve in the beginning of the year but what we have gotten since march is a persistently flatter curve. do you expect that to continue to be the case and can you be a buyer of financials and that kind of environment? sarah: well, some of the financials were doing well. the knee-jerk reaction for financials is that it will be much harder for them to make money, but since the financial crisis they have all been fairly clever about ways to make money. i think that they can end up

performing better, but i think the playbook says the yield is flattening and i'm not sure that is actually something that is going to be helpful in terms of whether or not those stocks can actually perform because it will take the market a while. guy: can we get specifics -- kailey: can we get specifics on what you would look to? sarah: there is an opportunity in some, like j.p. morgan. we like city, it's a real self-help story. they didn't perform well this year but they have the ability to improve their own underlying performance without as much market help. there are places in the technology space that we like. we have followed oracle for some time. there are other areas where you have got some real earnings growth. you've got some companies where there is going to be some growth they are and they are overcoming

some legacy businesses. that's a story we like because you want to see some of the value underpinning what we can live with. guy: what is your degree of confidence that the u.s. consumer will continue to power through 2022? looking at the savings ratio, it's coming down fairly sharply. gas prices are down, rent is coming up. where does it leave the consumer ability to spend? sarah: unfortunately with this new variant iteration coming through, there's a pent-up demand for travel experiences that gets pushed out and i think that was a part of the optimism of early 2021. thinking that we wouldn't be back in the situation where traveling was difficult to do

and even internally it's more challenging. i think that there is room for demand for that, but i don't disagree that a lot of the prices are coming up that will eat away at some of the ability to do that when it starts to become more available. on the other hand, a lot of the spending happens where people don't have that big of a problem as where four people where you don't have as much cushion from inflation. kailey: wishing a happy and healthy holiday to you and yours. speaking about the holidays and consumer behavior, that is such an important point about the tolerance for the higher prices. not only does that create clear growth implications on the economy but talking about it from an earnings standpoint with companies passing on higher input costs to the consumers, they have to be able to tolerate that. guy: so far they have. taking a look at the nike

numbers from overnight, they look solid and there is evidence that the consumer is still spending but to next particular, as rent starts to push up, that's going to into demand. i think that consumers are one to watch out for. so far they have taken the price i -- hikes into a more difficult position for next year. kailey: we have seen this ability varying by sector. i was talking about general mills at the top of the block and they were struggling with those higher costs and that is the case for a lot of staples companies. gina: and for some consumer discretionary. paradoxically, the group most stressed from the wage costs acceleration and the labor movement in the united states is actually retail. retail and consumer stocks across the board. even though they are able to pass on some of that price increase to consumers, their margins are most at risk and

those forecasts have been coming down the fastest partially because they have to pay more for their workers. not just supply constraints in general, but they have to pay more for the workers to spend and they are not getting all of that costs increase out to the consumers. kailey: yes, we are no longer talking about labor market shortages simply. we will be taking a closer look at the nike results and a picture for this holiday shopping season. psa, haven't gotten your chrisman -- christmas presents yet? probably you should do so. you only have a few days left. s&p futures higher, 10 year treasury yields at 100 and 45 to 18. ♪ laura: president biden will unveil new measures aimed at

fighting the resurge in coronavirus pandemic outcomes after the cdc said the omicron variant accounts for the majority of new u.s. cases. the president will spend 500 million free testing kits to american homes and is dispatching the military to help out and unvaccinated americans will be warned of the dangers they face this winter with another study reading was in the need for coronavirus vaccine booster shots. vaccines protecting for only three months after the second dose where the u.k. relied on the astrazeneca zacks -- astrazeneca vaccine over 40. the securities and exchange commission is cracking down on chinese companies trading in the u.s., disclosing the risks needed for investors where recent events have highlighted the risks associated with investing in companies based in china or have the majority of

their operations there. bloomberg learned that elliott investment management is considering a joint bid for citrix where the company has been exploring strategic options, including a sale. shares have fallen 36% this year, giving the company a market value of $10.4 billion. shares of nike are rising. our largest athletic brand reported their business in the last quarter with growth from nike having so-called direct business to sell sneakers to its own site boosting revenue not sent. global news 24 hours a day on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. this is bloomberg. ♪ this is bloomberg. ♪

kailey: it's tuesday and the dip

buyers are out. welcome to "bloomberg surveillance." after steep losses to start the week, equity futures are in the green with just a few hours to go. we are sitting at 4605 at the moment and we are not seeing any kind of bid into the dollar with the euro being slightly stronger. into the treasury market, the 10 year yield is that the better part of three basis points while crude attempts recovery after two days of steep losses with wpi futures. and of course, demand is really the question in the oil market and it's also a question for retailers this season. when covid-19 emerged, it upended the world of retailers and it brought some long overdue changes. romaine bostick reports. >> the pandemic shock disrupted every sector but it was the

severe blow to retailers that is proving to have the most transformational industry effect. >> retailers like the 9/11. it's a hurricane. >> early in 2020, physical stores closed their doors. of what was supposed to be a temporary sacrifice turned into a more than year long struggle. the struggle was insurmountable for some chains and many of the mom and pop stores seemingly disappeared overnight, but it also spurred overdue change increasingly being seen as a net positive for global retail that has already seen a startling turn from where it was in the middle of 2020. >> we have consumers that have the dollars to spend and retailers giving them innovative products. >> creating the incentive that many needed to fully commit to e-commerce. >> working side-by-side with businesses that are flexible to shop, a boxer on the doorstep or

increasingly a drive trip to a parking lot to the classic and stored trip. >> in china they started selling goods on live video streams and in mexico and russia they had more sick your payment systems built. brazil, they turned to instant messaging platforms to offer promotions and finalize transactions. here in the u.s. there were features like video calls to ease the reticence. it allowed companies to regrow in an unprecedented time but brick and mortar is far from dead, physical store shelves are still where the overwhelming majority of goods are bought. in the u.s. they are expected to add more than 4000 locations this year, marking the first increase since 2017. many of the biggest chains are drawing and more shoppers since before the pandemic. the comeback is a big reason the spider s&p retail etf has surged this year.

the intervention and intertwining of brick and mortar and the internet spurred by covid allowed retailers to recover and come out stronger than ever and now the russian becomes, will the changes stay resilient in the face of omicron? guy: that was -- kailey: that was romaine bostick with that great report. our chart of the day really does relate to retail and the earnings that we got after the bell yesterday. nike, the picture is so interesting. the u.s., great, china, not so much? >> yes, and with those cases, the differences between the lockdowns in europe or the covid policies in either place as opposed to these looser restrictions in the u.s., that's going to have a different impact

on retail, specifically the consumers far more exposed to that kind of consumer driven economy and the united states is at the key of that. through the lens of the proxy of the broader spending, we do what tom keene would do and put it on a logarithmic scale. what you need to know for the radio audience here is that the line continues to go up in a straight shot and the question here is is it a question of simply spending ability from consumers or is it actually a margin supply chain earnings story? we did some math here and said the stock is actually far more receptive and sensitive to the revenue story rather than the earnings, telling you that's the core of it. but how much are consumers actually spending? that is what nike seems to be far more sensitive to. guy: nike has been super nimble

in terms of shifting its approach. it has however struggled with getting the right products at the right time in certain instances. when you talk about that kind of topline susceptibility story, to what extent at the moment are, if i go and buy a nike product, am i going to get it? get it when i want, if it's not right, be able to return it and get something else? is the inventory story working for them right now? kriti: it seems to be for now but the big tech is the switch to e-commerce. at 1.50% of their sales were happening through nike.com and other distributor channels, not in stores. that will be something that actually turns around. looking at the broader base yonder nike is if e-commerce is here to stay as people want to try on clothing, go into stores

and not concern themselves with the shipping labels that always turn out to be such a hassle. as we continue to see future variants on the retail space, that seems to be the key question. do they continue to hold onto the e-commerce or do you start to see them dive back into that more permanent, more brick and mortar kind of presence? kailey: great stuff. the last time we heard from then they told us it took double the time to get a pair of sneakers from asia to los angeles and the pork there but now it something like 80 days. talking about supply chain, they are still there. guy: meeting you have got to manage that inventory really well.

e-commerce is a two-way street. yeah, you can sell people stuff but more often than not you will get a significant chunk of it back and how you manage the reverse retail story is really important and that is where the logistics story comes in. how quickly can you turn it around? how quickly can you take the working capital and resell it? companies like nike has a huge advantage and that's where the brick and mortar comes in. if i purchase something that doesn't quite fit or work, i can take it back to the store and getting it back into inventory is critical. kailey: across-the-board with logistics on your resume, you can probably get a job at any of them. gina: absolutely. what's most interesting is them being driven by revenues. the reasoning behind that is that for most of the year this was viewed as a temporary situation that would go away.

that changed a lot starting in october with revisions lower. kailey: coming up will continue this conversation. stay with us on "bloomberg surveillance." this is bloomberg. ♪

hey, angie! you forgot your phone! hey lou! angie forget her phone again? yep. lou! mom said she could save up to $400 on her wireless bill by switching to xfinity internet and mobile. with nationwide 5g at no extra cost. and lou! on the most reliable network, lou! smart kid, bill. oh oh so true. and now, the moon christmas special. gotta go! take the savings challenge at xfinitymobile.com/mysavings or visit an xfinity store to learn how our switch squad makes switching fast and easy this holiday season.

[no audio] >> these are always important discussions and usually the spotlight is on our industry with issues around wages. the industry is making a lot of money. i don't speak for either side but training and development of the work or's will also be key

as robotics and automation are front and center in the workers cannot be left behind. >> do you feel like the balance has shifted? for so long the workers had less negotiating power. >> the international warehouse union that works across 29 ports is a strong democratic organization. >> the markets are caught between a rock and a hard place. x we are in a worse position than several weeks ago. >> there's a mismatch between fiscal stimulus and central banks for winding down. >> we don't think it is time to give up on equities. >> this is one of the most detrimental to equity. >> this is "bloomberg surveillance." kailey: good morning. this is "bloomberg surveillance ."