>> we could end up with a good year, not a great year, in 2022. >> the markets are underestimating the fed's capacity to tighten. >> there's a lot of room for good news priced into the dollar. -- >> the cycle easily carries to the middle of this decade. >> this is "bloomberg surveillance" with tom keene, jonathan ferro, and lisa abramowicz. jonathan: from new york city, good morning. this is "bloomberg surveillance ," live on tv and radio pete alongside kailey leinz and matt miller, i am jonathan ferro. equity market all-time highs on

the s&p 500. the challenge at the moment for corporate america is getting back to work. getting back to work after the holiday weekend. kailey: we are certainly back at work. even if you are taking time off and what to go into the office, could you, or are there positive covid cases keeping you at home? we saw jeffries out front of this after a slew of positive cases -- they decided to send everyone to work from home. they say if you have 10 people who test positive, you have 15 who then need to self-isolate. it all comes down to how long that isolation period should be. jonathan: away from fiscal policy and monetary policy, right now, how big does the isolation window need to be to get people back into work come into the office? matt: absolutely. you certainly have to test negative before you go back. the idea is they want to shorten it enough that we can get people back to work, especially, as we

heard earlier on the front lines of health care, they want to have a deeper bench. they want to be able to get people the care they need. but they also want to make sure you are not infectious. they need to strike that balance. it will require scientists with data. jonathan: right now on the s&p, up one third of 1%, advancing 14 points this monday. your 10 year yield at 1.4910. euro-dollar basically unchanged. where you get some price action is in the airline names. 2800 flights and more over the weekend canceled in america. american down 1.8%. they are not moves, but this is the story right now for corporate america. how many more flights will be canceled? and dr. fauci about 10 minutes

ago saying it is reasonable to consider a requirement to be vaccinated for coronavirus before getting on a domestic flight. perhaps more restrictions in the future. kailey: and we have to keep in mind a lot of these cancellations, granted there were weather issues in the pacific northwest, but it was about the availability of crews. omicron a highly transmissible variant, heating even vaccinated individuals. if you cannot staff fight attendants, you cannot fly. even if you are having de facto lockdowns, the availability of workers for flights is going to have an impact when you look at how quickly this thing is spreading. jonathan: there's a lot of friction when it comes to movement right now. part of that story is testing. accessibility in the u.k. and europe is pretty easy. i've lived it. it was pretty straightforward, to get the test, do the rapid test, to get back in america

really straightforward. to get the testing in new york -- we were talking to a guest down in houston, they cannot access the testing. matt: doubly surprising, because you would expect access to have a surplus of tests, and no one there seems to care -- at least not as much as they do in new york and california, right? you are talking about how well the u.s. did with vaccines at the beginning of the pandemic, and germany was frustratingly lagging behind. you have a reverse situation going on in terms of testing right now. but kailey mentioned the biden administration is hoping to put 500,000? kailey: 500 million. but is that too little, too late? matt: next month is not that far away, so unless you mean in 30 days, if you mean in january, that is only the end of this

week. i think the u.s. can catch up. the question is how much is the economy going to take a hit from people who do not get to come to work for 10 days? none of this stuff, a decision on how long you have to stay out or getting testing to your door, is going to happen immediately. for now, you will have to situations, like we see rep -- like we see representative in airlines today, ripple across. jonathan: it has been surprising to see this administration lag so bad unequivocal issue. i remember a press conference where the press secretary was asked about the visibility of testing and delivered a snarky response of what do you affect us to do, send everyone a test in the mail? and that is exactly what they are doing. kailey: the administration obviously dealing with policy response. they have their vaccine mandate being challenged.

we will hear from the supreme court on january 7, starting those arguments. there is not the political appetite to go back to draconian lockdown researchers, so maybe testing and showing up hospitals are there only available option. jonathan: and that looks to be what will happen in the u.k. as well. boris johnson not expected to announce further restrictions today going into new year's eve and into a new year. joining us now, matt brill, senior portfolio manager and head of investment grade at invesco. that make or break bets for trade, what are they for 2022? matt b.: for 2022, domestically, you have to get the call right on whether the market can absorb three rate hikes. to me, it still looks like the market completely took that in a couple weeks ago and seems totally fine with it. we have a long way to go before the market is able to go through with that.

when you start to see the first hikes, probably spring up next year, does that really disrupt the market at all? we were talking a lot about disruptions this morning, those are all supply-side disruptions. if you talk to anyone at deltek, they would love to have supply-side disruptions rather than zero demand that they had back in march of 2020. it is a different problem. but our view is you can still make money next year because the market will be able to get through this and. not panic overfed hikes. matt: do you have to make the right call on inflation, is it still a key call? matt b.: it is certainly tied together. when it comes to inflation, there are still two camps on whether it is permanent or if it is so-called transitory -- i do not even know if we can call it transitory anymore. but whether it is six months or 12 months inflation. but the inflation will eventually slow down. the obstructions caused by omicron will go away.

it will still take a while for that to happen. supply chain disruptions are still out there. we believe inflation will start to calm by the second half of 2022. you will have cpr's less than 3% at that point. that will give the fed some time to recover, try to figure out the balance sheet runoff, so that is really not a 2022 issue, because inflation will start slow and the fed will eventually start to see that, but for now, it will look ugly over the near-term. kailey: i want to go back to the airlines, that they now have these massive debt piles because they were in crisis, came to the debt markets, were able to borrow cheaply and did so. even companies that were not in crisis so, because it was cheap to borrow. i am wondering what your expectation is for next year as to how those so apply-demand goes -- matt b.: airlines were really

creative as to how to survive. they secured the planes, the loyalty programs, but everything up a value that they could borrow against, they did, allowing them to borrow at a much cheaper rate than if they had gone the unsecured route. they are now back -- they can borrow at a more reasonable rate now. you have names that can borrow at a much we -- much more reasonable rate now. the nice thing for them is they can do it in an unsecured man and they no longer have to mortgage their future and as property. as borrowers, we never like to wish someone the tough times they had, but as borrowers, -- borrowers, -- i think the airlines have learned to live with this and now they will have to pay down a lot of debt. the amount of leverage they put on in the last 18 months is extraordinary, so they need to start focus on paying down the

debt. jonathan: final question, can you think of any good reason why we should not disclose the markets for a week, the weekend, the week after christmas? [laughter] matt b.: i am going to top golf this afternoon. maybe just work three hours? that is my own life. no recommendations for you. jonathan: great visibility for you, to appear for 10 minutes and make it out like you are working. matt brill on the bond market there. we talked about it earlier this morning. this week is such a dead week. it always has been. why do we not have an aggressively reduced work hours for? matt: i also feel like this week this year especially, after two years of pandemic, when every company wants to show that we care about your mental health -- it is the perfect week to give your employees, as a pr move as

well as the fact that you do not really need them -- hopefully you do not need them -- jonathan: don't tell corporate america that we are not ne eded. but the stock exchange, they are not even marking the u.s. -- the new year. kailey: new year's day is a saturday, you would think you would have new year's eve off. or the following monday. do you think the powers that be that make those moves are actually in the office this week? jonathan: i suspect they are not working this week to that is often the way. they usually have this week off. futures up 15 on the s&p. with kailey leinz and that miller, from new york city, for our audience worldwide, this is "bloomberg surveillance." ritika: with the first word news, i am ritika gupta. president biden's top medical advisor is warning americans not

to get complacent about omicron variant. anthony fauci told abc that the volume of cases could still overwhelm hospitals, despite evidence omicron symptoms may be less severe. fauci said that hospitals in areas with lower vaccine rates are at higher risk. an increase in coronavirus cases in the u.s. led to shortages in airline crews during one of the busiest travel periods of the year. there were more than 2800 flight cancellations over the christmas weekend in the u.s. on saturday, united, delta, and jetblue canceled at least 12% of their flights. russia is planning security talks with the u.s. before a meeting between nato and moscow last month, according to foreign minister sergei lavrov. the u.s. has warned that a russian military buildup may be preparation for an invasion of ukraine. meanwhile, russia has warned nato not to place weapons there. holiday sales in the u.s. rose 5% over last year. according to mastercard, consumers spent more money on clothes, jewelry, and electronics. online shopping jumped 11% while

department store sales were up 21%. archbishop desmond tutu is being remembered as a south african patriot whose leadership helped abolish apartheid. he died sunday in cape town. he won the nobel peace prize in 1984. later, he was a vocal advocate for peaceful reconciliation. desmond tutu was 90. 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. ♪

>> this is the biology of coronavirus, and this is why, with the coronavirus group a

that causes the common cold, you get a cold, you probably do not get it again that season, you might get it again next year for what it means is we will probably have to have more regular boosting to keep immunity up as long as this virus is still circulating. jonathan: dr. chris beyrer there. good morning. kailey leinz, matt miller, jonathan ferro. we advance one third of 1%. tom and lisa abramowicz will be back with us at some point. maybe they will wait until the new year. euro-dollar about 0.1% down. a brilliant just now to talk about the fortis ugo -- about the pharmaceutical companies, geoff meacham. i want to talk about mrna technology. it felt like a huge step forward 12 months ago.

i wonder how things stack up 12 months later. geoff: that is a great question. mrna technology has shown durability of affect. the pfizer and moderna vaccines look like they do their job, limit hospitalizations, prevent severe infections, prevent death and a lot of patients, but the question is still unknown whether they will be as infectious as flu or cardiovascular diseases. kailey: when we talk about those vaccines that exist for covid-19, talking about a third booster in israel, how much are they revenue generators for companies like ours and moderna? geoff: for the most part, -- it is perfectly normal to have antibody levels go down over

time once someone is vaccinated or exposed. i feel like a third booster or third shot is pretty much locked in for having a benefit. i am not sure we need annual boosters forever, but that is what is baked into some of these stocks, particular moderna. going forward, the orals from pfizer and merck, to some degree, will go a long way to helping us get out of the pandemic. kailey: obviously, both of those work approved by the fda this week. how much of that needs into those people not getting vaccinated -- geoff: the orals will reduce the long-term need for boosters. once someone has enough immune protection in the form of vaccinations or exposure, the orals can be used in a way that

most health care is delivered across the world. when you get sick, have a positive test, you take the orals and reduce the need dramatically or reduce the risk of going to the hospital or having severe infection. that is most likely going to have longer-term durability than annual boosters in this whole booster-quarantine cycle. matt: by the way, i saw that there was u.s. approval for an at-home covid-19 test. is testing going to be a growing industry, or have we not as much out of it as we can? geoff: i still think it will be the standard. it is definitely foundational with spec to identifying those exposed. but i think, longer-term, probably has as much your ability, perhaps, as the orals. but as i mentioned, the whole boosting, quarantine, postexposure cycle seems like

"that's so 2020." matt: is a possibility that someone comes up with one shot to rule them all so you do not need a booster or an oral? is there a one-shot answer? we have been hearing recently that may be the military is working on one or maybe r&d costs are holding it back. do you believe that? geoff: one to address all the variants seems pretty unlikely, but i will say that vaccines are proving to be highly effective against any different variants across the board. perhaps maybe a booster every three years or five years to sort of remind the immune system about sars-cov-2 -- if we are still talking about it and that length of time -- i think that makes sense. i do not think it annual shot, if a technology that covers all the variants is available yet. jonathan: for the likes of pfizer -- how fat are these

margins on these vaccines? geoff: the vaccines, because you have to reflect the economics between pfizer and their partner biontech, it is not as high as orals. the orals are a traditional market where you have 90 plus margins. the orals are a lot more profitable, or at least could be going forward. jonathan: we appreciate your time. thanks for making time for us this morning. geoff meacham enough bank of america securities. i know a lot of people were uncomfortable with some of the margins, the profitability of some of these companies, the money they have made from the pandemic. matt: if there were not profit in it, they probably would not have developed the vaccines as quickly, right? that is the whole point. that is how this invisible hand it brings us through these kind of pandemics, right? you know you will get money in

the end, so you pour a ton into r&d and come out with something like mrna. if you cannot make money, you will not have any time. jonathan: the essence of capitalism. at the same time, this was the essence of public-private partnership. kailey: and also the question is these pharmaceutical companies are raking in billions of dollars, yet you are not seeing equitable distribution of these vaccines. but to your point on private-public partnerships come a lot of that has been in the hands of government. there are the ones controlling distribution of the pharmaceutical companies have not at this point. jonathan: interesting to hear that the pills are where the prophet margins might be in the years to come. kailey: i wonder who will shake out and become actually on top when it comes to the oral treatments, because we have seen merck has the ability to wrap it up there, but the u.s. government seems to want to rely

on pfizer, which has better efficacy. jonathan: i wonder how much of that behavior sticks. one thing i am happy about -- remember the days people would come to the work with the flu? kailey: coughing, sneezing. [laughter] jonathan: are we done with that? matt: i hope. i do not like it when people come to work with the flu. our former colleague, mark barton, did not have a sick day in 15 years but would come to work and get everybody at the desk sick. he felt like a hero, but i felt like he was kind of a traitor for doing that. jonathan: you can't call him a traitor when he's not here. matt: fair. jonathan: i miss him. what a legend. i have worked in the u.s. for a while now, and that, for me, is this little part of the american work culture i did not subscribe to adult. kailey: maybe it takes for a

once-in-a-lifetime pandemic for the stigma around sick days to disappear. jonathan: heard on radio, seen on tv, this is "bloomberg surveillance." ♪

jonathan: live from new york city on radio and tv, alongside matt miller and kailey leinz, i'm jonathan ferro. up 16 on the s&p. a lift this monday morning. up one third of 1% of the s&p 500. on the nasdaq up .5%. on the 10 year, 1.48. almost 1.50. light on the economic calendar through this week into year end. euro-dollar unchanged. 1.1312. next year and q1 of 2022 with the federal reserve decision for march, the big one in focus with governor waller calling it a life meeting, even the likes of president daley teeing that up.

joining us as the chief economist at berenberg. do you think they can move that quickly? >> i do not think they will move with interest rates but i do think in april they will move interest rates. we expect four rate hikes from the fed over the course of next year. the u.s. economy has a more pronounced inflation problem than the european economy so the fed is behind the curve. if they ask -- if they act fast it would be good. at the moment i think march is early. jonathan: what channel does work through? what will they achieve? holger: the rate hikes will send a clear signal. more importantly, rate hikes work the traditional way. they have buoyant demand in the interest rate sector of the

economy or the real estate sector and that would be good for an economy that does show some signs of -- overheating may be too big of a word, but an economy that is running at a higher rate than it should. matt: in terms of the rates, why are we looking at less than 1.50 as the fed prepares to raise rates and reduce its bond purchases and the government may increase issuance? holger: that is one of the big questions. in my view there are too many in markets who believe the economy will not sustain above trend growth for long. the fed, after starting to hike rates will then have to stop early or even cut rates to get a few years from now. i think u.s. demand will state above its trend rate and hence

the fed will hike and height began in rates will stay somewhat elevated -- will hike and hike again and rates will stay somewhat elevated and in that box drop it would make sense for u.s. yields to move up. matt: blood keeps growth above trend? -- what keeps growth above trend ? holger: almost everything. consumers have extra savings stashed away. this extra savings gives them a cushion against the impact of interest rate rises. we have the government that wants to spend more it is on track to spend more and we already have quite a few fiscal initiatives under the belt. companies need to invest more in order to replace staff which they can no longer find. on top of that we have a global

economy that is likely, once the current omicron variant is over, will do fine. you look at each component of demand individually and you find a positive story for that once the current wave of the pandemic is over. kailey: let's talk about the impact of the current wave. how much of a hit to growth you think it will have? holger: on the u.s. it is probably a minor hit. we cannot say what matters will be taken to handle omicron and how consumers will react. judging by the data we have so far, it suggests we will only see a modest change in consumer behavior and we will not be going for anything like blanket lockdowns. if that assumption is wrong, we do not know yet how omicron will develop, then we might have a significant shortfall in the first quarter, perhaps growth

following to just 2% in the u.s.. that is that -- if that were to be the case, we would probably make up for that in the second and third quarter with the annual average of 4% or above 4% growth next year in the u.s.. kailey: even putting the virus aside and talking about the prices they are facing every time they go to shop, at the grocery store or the gas station or every day discretionary purchases, you talked about the savings they have built up that are starting to be drawn down. you expect will reach a point where the savings cushion is depleted and we start to see spending winding down? holger: the savings cushion may be depleted for individual consumers, but all in all it is so large, much more than 10% or

50% plus of u.s. consumer spending that it would take a lot more inflation to make a big difference into that. the consumers are doing well in terms of their savings. also the wealth of consumers is favorable. job gains are significant, only held back by the shortage of labor. wage gains are noticeable. all in all i think the wealth and income situation of households will remain favorable enough for households to stomach the higher price. matt: why is it european growth -- why isn't european growth and inflation on the same track as the u.s.? what is holding back europe? there is also a bigger boost in savings and you have have the same supply chain effect and inventory rebuilding. why aren't we going to see a big boom? holger: is a simple answer to

the question, what is the difference between the u.s. and continental europe? the answer is fiscal policy. the u.s., you could say has had too much stimulus, and as a result consumers in the u.s. have built up more of a savings cushion then consumers in europe. also because of an overly generous fiscal policy, the u.s. has access demand on top of the supply constraints we have across the world. in the u.s. the combination of markets and supply constrained has fed into inflation well above that we see in europe. as a result of the situation is different, and it is the need for the central bank to lean against what has been -- this exists in the u.s. but not in the euro zone. matt: doesn't that set up the u.s. for a harder landing?

spiking the punch bowl with stronger stuff ends up giving you a bigger hangover. holger: that indeed is a risk. i do not think the fed will go so far as to depress u.s. demand growth to below trend to a get to a point where the labor market situation would deteriorate. probably in the u.s. what we will see is a deceleration of gdp and especially nominal gdp growth back towards rates that are a bit above trend rather than well above trend. the risk the central bank may overdo it eventually is there. given the strength of demand in the u.s., it will probably take a lot of rate hikes to get to the point of overdoing yet. kailey: do you foresee given the path the fed has laid out the anticipation that once taper is

done, then you have a flat march meeting and three or four, is that going to be enough to tighten financial conditions? holger: yes, but some tightening of financial conditions households can stomach. we want demand to decelerate, otherwise we would build up a big inflation problem. i do not think that what we are talking about, four rate hikes over the course of the next year and potentially three follow-up rate hikes in the year after, that would be enough to go from a boom to a bust, a period of growth well be a -- well below trend. jonathan: thanks for being with us. holger schmieding of berenberg. looking ahead to 2022 for real gdp growth. the forecast -- 3.9% is your

median forecast for gdp in america in 2022. matt: there is going to be a stronger number in the u.s. than in europe in terms of economic growth, gdp growth, as well as inflation. this is a persistent scenario. you often see this. i wonder what lies behind that, if it is the bureaucracy in europe, if it is the slower moves of pending out money, or the fiscal injections. jonathan: on the euro zone, they are looking for it to have a 4.2 next year, maybe we get outperformance of gdp growth next year. as i will acknowledge, over the last 10 years that has not been the story. cpi, potentially up to handle for europe -- potentially a two handle for europe. that explains why the fed might have some work to do. matt: the question is not only

how that affects asset prices, but how it affects the economy. how do americans react to bigger inflation numbers, especially if they more persistent, what kind of behavior will that change? jonathan: and you will be living at. kailey: how lucky he is. matt: every time the fed -- every time someone says the fed needs to raise rates to increase the price of mortgages, i listen up. jonathan: it is personal, as michael jordan said. jim bianco will join us later this morning at 9:00 eastern. in lines, matt miller -- kailey leinz, matt miller, jonathan ferro. this is bloomberg surveillance. ritika: i am ritika gupta. coronavirus infections jumped over the weekend. china reported the highest number of cases since january.

australia reported more than 10,000 daily cases for the first time since the start of the pandemic. daily omicron infections in the u.s. have now surpassed those in the delta wave. in poland, the president has vetoed a bill that would have forced his government to sell most of the country's most popular tv network. thousands of poles protested an effort to muzzle independent broadcaster. the u.s. pressured the president to veto the measure. the japanese kicked off their effort with a sale to oman. the administration's goal is to fight rising prices. last week south korea said it would also start releasing oil from its reserves. the turkish lira has stepped a five day rally, falling about 7% today. that challenges government assurances after measures were

introduced weeks ago to stem its collapse. the lira has lost a third of its value over the year. related spider-man movie has gone over the billion dollars to become the highest grossing movie since the pandemic. the movie was produced by sony in conjunctions with disney's marvel studios. global news 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. i am ritika gupta. this is bloomberg. ♪

>> we are definitely not out of this pandemic. for vaccinated people we will start to approach some semblance

of normal life this year. for unvaccinated people there is still risk. this is done not a very dangerous -- this is still a very dangerous virus. kailey: that was an associate professor at the university of nebraska speaking with us as we see the omicron variant ripping through the population. 50,000 cases reported in new york city on christmas eve. let's talk about this with deborah holder, professor -- deborah, given where we are in the pandemic with the number of people vaccinated, i believe somewhere in the ballpark of 60% of adults in the u.s., and the velocity of which omicron seems to be lifted -- seems to be ripping through the population, where does this leave us in terms of immunity and herd immunity? deborah: the end game for the pandemic is what we call an

pandemic. we will continue to experience mu variant -- new variants. we may get another variant after omicron as long as we have a high percentage of individuals not vaccinated. what we need is a baseline of immunity so as new variant emerge they become less severe. it will continue to exist in the population but it will be more like the flu where it is more predictable and immunization can manage the disease and control it. right now we are still in a pandemic and we will continue to experience new variants as long as there is a population of people in the world in which the virus can replicate and generate new mutations. kailey: we have seen it has the

ability to do so even among vaccinated people, vaccinated and fully boosted people are still coming down with omicron. it does not seem it provides you with as much protection. are we going to talk about a fourth booster, a fifth booster, a sixth booster, seeing those repetitive immunizations indefinitely? deborah: yes. we probably are going to see additional booster immunizations. the same way we get booster immunizations with other vaccines. as we get more and more booster immunization that helps our immune system develop broader community against all of the variants out there and possibly future ones. that helps to get us to the point of being able to control the epidemic. vaccination has a range of different protection. if you are vaccinated you're going to be much better off than

if you are unvaccinated. if you were going to get severe disease, your disease would be more mild. if you are going to get mild disease, you would not get the disease. vaccination is always going to set you up much better to be protected against this pandemic. matt: as this was all getting started at the beginning of 2020 people were coming up with comparisons to the spanish flu and saying that evolved into what we know today as the common flu. the course was going to be less severe disease as we got mutations. is that typically the course of a virus and we expect that to continue or is there a chance we could get a variant that is more dangerous? deborah: that is the typical course is we see waves of different variants until we get to the point where there is a base level of immunity, there is a version of spanish flu still

existing in our population today, in a similar way there'll be a version of covid existing that we will be able to manage. it will take a long time in the absence of getting vaccines to as many people as possible. if you let it run its natural course we could be looking at years down the line before we get to this point. the way to get there is getting vaccines out to as many people as possible and staying up-to-date on booster immunizations when they are recommended. matt: have it we vaccinated as many people who are going to get vaccinated? do you think we can still change minds. deborah: in time we can hopefully change mind. but you may be right. we may be getting a certain threshold in terms of the number of people willing to be vaccinated. that is the issue at hand. we could get more people vaccinated sooner we could shut

this down a lot quicker. kailey: what we are not shutting down as the economy as we did in the earlier stages of the pandemic. given the policy responses we have seen, if you think they are adequate? do they go far enough? deborah: i think we're are in a different setting. science has produced vaccines and therapeutics, weapons to fight this pandemic. in earlier days we had no weapons. we were vulnerable to this infection. it is a different era and that is influencing how policies are made. kailey: deborah fuller of the university of washington school of medicine, thank you for joining us this holiday week. when you talk about the policy response to the current wave, it is not just about what the government decides, what the powers that be decide, it is the everyday person come the individual, the business owner,

and the decisions they are making in the face of a threat like this. it may be them putting into place de facto shutdowns. matt: absolutely. people are making consumer choices based on their fear levels or their concern about what has to be done to get out and spend money. on the other hand we see from what has happened with the airlines, the concern is that it's could spread a lot further through the manufacturing base and in services. when people are out for 10 days, when they cannot come to work, even when they are a symptomatically, even if they cannot spread the virus further, it will have a real effect on the economy. kailey: that it becomes a question, do you need to shorten that quarantine period? if you're talking about fully vaccinated or boosted individuals, do they need to isolate themselves for 10 days

or is that something that should be shortened? that is the next policy decision will be looking for from governments and science officials. matt: absolutely. the doctors we have spoken with today said they did not yet have the data to make those decisions. they have to know how long it is transmissible after it shows up in terms of having symptoms or you test positive. we cannot answer those questions either. interesting if they make any kind of change. 10 days does seem like a long time if you're trying to run an airline. you have to cut a huge chunk of your flights. kailey: those airline stocks under pretty significant pressure. united, american, delta, all down the better part of 2%. broadly is an update. s&p 500 futures up .4%. it would be a record high, the

69th record high of the year 2021. later today, the dream hotels ceo will be joining us at 7:30 in london. from new york and from berlin, this is bloomberg. ♪

jonathan: good morning, good morning. your equity market with the lift. all-time highs on the s&p.

the countdown to the open starts right now. >> everything you need to get set for the start of u.s. trading. this is "bloomberg: the open" with jonathan ferro. jonathan: we begin with the big issue. stocks back at all-time highs. >> the earnings picture, the margins picture. >> the performance of the s&p 500. >> it has already been discounted. >> i do not think omicron is that big of a deal. >> glass half-full. >> the year in d action tells you very much. >> it will be a tough year to be a 25% or 26%. >>