>> the covid shock itself was extremely narrow and severe, and the policy set wasn't readily widespread. >> i would not be surprised if you see a 7% handle in terms of the overall rate of cpi inflation. >> inflation is probably a concern for markets as we move into 2022. >> the fed has pivoted, but it hasn't really done anything. >> what long-term treasury yields are telling us is that the fed cannot hike that much. >> this is "bloomberg surveillance" with tom keene, jonathan ferro, and lisa abramowicz. jonathan: hitting the ground

running. from new york city, for our audience worldwide, good morning. this is "bloomberg surveillance ," live on tv and radio. kicking off 2022 with equity futures higher, and a big week ahead. kailey: culminating in that jobs report. my question is, how close to consensus, if there is any form of consensus, are we actually going to get? i believe we are looking for 400,000, but it has been very hard to forecast whatever jobs report will look like, just as it is hard to forecast where the market is going over the last year. jonathan: it is a moving target. your median estimate is 400,000. does cooling the data help you cool the market? matt: i think if you call the data write and understand how the market values that data, it should help you predict the market outside a fixed income. if you knew what was coming in terms of inflation, and if you

knew what was coming in terms of the's hawkish privet, you probably would not expect the 10 year yield to be at 1.50%. jonathan: no way, and that is exactly what we will start the conversation on and just a moment. can you tell me anything about the 10 year whatsoever. let's whip through the price action. the s&p advancing 0.5%. it won't be talking about american football again. every time i do this, everyone rates and -- everyone rights in and says, talk about my team. yields higher by three basis points, 1.53 percent. around about 0.25% on crude after a monster move through 2021. kailey: the biggest move to the upside for oil going all the way back to 2009. how to set set the scene for opec+ tomorrow? we got the headlines crossing

earlier that they are seeing a smaller surplus in the first quarter than previously anticipated. does that mean more oil is going to come under the market? what does that mean for the trajectory of oil prices going forward if you start to see the supply coming on to meet demand? jonathan:jonathan: joining us is gene tannuzzo of columbia threadneedle. if you can call the inflation data, does that help you call the bond market with any accuracy whatsoever? gene: happy new year. i am not sure that it does, quite frankly. i think you have already pointed out the creek would disconnect, that inflation is near 7% on a cpi basis, and we have a fed funds rate that is still at zero, and that is the big disconnect. i think inflation will likely move lower than 7% through the course of this year, but it is going to be consistently too high, such that it will be a problem for the fed. i think the point is the fed is reacting now to the inflation data, and that reaction may come

sooner in terms of short-term rate increases. jonathan:jonathan: that might help you deal with the front end. for tens, what was the guiding light for 2021? will it be the same in 2022? gene: it is a little bit of fed, but also about the global stance of monetary policy. we are still in a very accommodative place. there's a lot of cash from global central banks that is going to slowly be drained as we get into a conversation about the fed actually reducing the size of its balance sheet. i think that could put pressure on the long end, and that is what could revisit the 2% area on treasuries. kailey: is that what is ultimately going to matter to the bond market, when that balance sheet runoff starts? gene: i think so. it has to be a combination of those two things, but we have this last in, first out monetary

policy. short-term interest rates have been about large-scale asset purchases. so as we think about that going forward, we have to think about the flu in the other direction. i think it is a conversation we are going to have later this year. first will come the conversation on short-term interest rates. i think if those things are happening and a consistent dialogue in markets, i think that is enough to push long-term rates higher. kailey: on the fiscal side of the equation, we come into 2022 with a huge question mark still on the fate of the build but better. if that stimulus does not inspire that long-term economic spending, does that change your views on fixed income in particular? gene: it is a great question, but i don't think so. fiscal was critical at injecting new stimulus in the economy. build but better be important on average over time, but it is

incremental, and we are also looking at debts going to be paid for by higher taxes. i don't think that on its own would change our near-term growth projections. matt: what kind of issuance are you expecting? what are you forecasting? gene: the treasury is going to have to continue to have large deficits, but i don't think the pace we have seen in corporate issuance is going to continue at the same pace we have seen the last couple of years. that could be a positive support on the technical side if we don't see quite as much finance activity on the corporate side of the bond market. matt: i am just wondering because as the fed steps away, how important is it to lose that buyer? gene: we have always talked about that. the first time the fed started stepping away in q1, we said it

is going to be the buyer. it is a justification to buy those safe haven assets. i think right now that reason is fading, but the unprintable can certainly happen. but i think where we stand today as issuance continues, as the dialogue changes towards the draining of that liquidity, i think that does pressure that risk premium that is supposed to exist in long-term treasury yields that is going to pressure that higher. jonathan: we got a talk for last year about the rising yielding to investment grade. i just wonder how much of that is already played out. gene: i don't think that much. i think this is a critical theme, if you look at bond market performance last year. most bond investors are still looking their wounds. the bloomberg aggregate index was down about 1.5% last year. that is one of its worst returns in 45 years that the index has

been around. most of fixed income performed quite poorly. high-yield performed better. we have seen this upgrade wave begin with companies back from the high-yield market into the investment grade market. we still think that has at least a year to play out, to the point where a significant portion, perhaps as much as 30% in the bb market, could be upgraded to investment grade. so i think there is still a lot to go there, and that means price upside. kailey: something that has really defined the pandemic era is low borrowing costs, and companies have been rushing to the debt markets because it is cheap to borrow, do it while you can kind of thing. what do you expect in terms of issuance in the year ahead? can that pace continue? gene: i don't think that pace can continue, but we have said that over the last few years, and as rates have stayed low, issuers have surprised us. i would put a low confidence no

on that, in terms of i think issuance will slow down, but i financial conditions remain accommodative, that does bring you to the market. jonathan: wonderful to hear from you, as always. gene tannuzzo of columbia threadneedle, thank you. getting some headlines from the permanent members of the un security council. if this is good news to you, you've got a low bar. china, russia, the u.k., the u.s., and france say avoiding war between nuclear weapons states is important. i think we can all agree on that. matt: absolutely. i had not even gone that far yet today, although i have been thinking about 2034 a lot. i talk about it all the time. it is a novel, fiction. but one of the things we did not really touch on was ian bremmer is the issue of taiwan. how dangerous is that going to get? are we going to continue to see that is a real hotspot in the

difficulties between the u.s. and china? jonathan: a conversation that comes up often come of the situation between russia and the united states. if russia goes into ukraine, what would that mean about china's ambitions to going to taiwan? i am sure that is something the americans and other nations are thinking about. matt: but what can they really do about either scenario? jonathan: they are going to have to show a very strong response towards anything russia did, if indeed they made that move first, if indeed they made that move at all. the good news, just as a tourist of these situations, they are talking. the russians looking for some kind of concessions. at least we start the year with some dialogue. matt: that seems like good news, and also the fact that we all agree avoiding nuclear war is important. jonathan: yes, i think we should begin any year agreeing on just that. kailey: that would be nice. i think that is a pretty low bar

goal we can meet. i would also note we are now starting in eighth round of negotiations with iran today. seven rounds have been really fruitless. what happens if you cannot get a return to any kind of deal on iran's nuclear program? i think that is also a geopolitical risk people are watching. jonathan: from new york, here's the market action for you right now. of 26 on the s&p, advancing 0.6 percent. yields on tends up to him .5326% -- up to 1.5326%. kick off 2022 with you after posting a monster year gains on the s&p 500, up 27%. we add a little bit to that rally, up 0.5%. this is bloomberg. ♪ ritika: ritika: with the first word news, i'm ritika gupta. the number of new coronavirus

infections in south africa dropped on sunday, while the test positivity rate declined from 27%, according to data from the national institute for communicable diseases. the number of people hospitalized fell slightly on saturday, more evidence that the omicron outbreak is peaking. the u.s. considering adding a negative test requirement after last week's move to cut the covid-19 isolation period from 10 to five days. speaking on abc, u.s. chief medical advisor dr. anthony fauci acknowledged there was pushed back the shortened span without any further testing. the possible change would come at a time when many americans are struggling to obtain tests. resilient president jair bolsonaro was hospitalized in sao paulo earlier today with a case of intestinal obstruction, according to a hospital statement. he is said to be in stable condition, undergoing treatment. at the time, there is no set date for his discharge. a man who moved across the

heavily fortified border into north korea over the weekend was likely a defector who crossed the demilitarized zone over a year ago to south korea. he looked almost identical to the director who crossed south korea's eastern border in december 2020. gdp expanded to .6% on a seasonally adjusted basis from the previous three months. 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. ♪

♪ >> last year there was no

demand. this year has gone from zero to 60, and with covid, it adds this extra level of uncertainty with employees. what does it do to demand as people see that and do not want to do with it? but it still seems to be a strong desire to travel. jonathan: from new york city this morning, good morning. your equity market up 26 on the s&p, advancing 0.5% to kick 2022. a new year and the flavor of the same old stories. can you get back to the office? goldman says, "we know encourage those who can work safely from home to do so." let's start there. how many flight cancellations today, never mind over the weekend? >> just monday alone in the u.s., we are already pushing almost 2000 flight cancellations.

that is early in the morning. snowstorm getting worse in the mid-atlantic region. cancellations out of baltimore, washington, laguardia. probably in for a rough travel day. kailey: how much of this is due to covid specific shortages related to flight crews and flight attendants, and does the cdc guidance of a now five-day isolation period actually make a difference on that front, or start to? gene: it is a great question because it is not just weather. airlines are always dealing with weather. it is not just that. it is also there having trouble staffing flights with the rise in cases. delta airlines ceo ed bastion had been one of those calling for a shorter quarantine period, and the airlines are quite desperate to keep staffing up, having had a really tough holiday season. whether that makes a big

difference, time will tell. certainly demand is going to fall a bit in the next few weeks , but the bottom line is for this very busy period ending the year and beginning of the new one, it has been a tough slog for the airlines. kailey: covid cases have to play a part in some of this on the supply side. on the demand side, restarting to see that? do we see some demand as the variant spreads? brendan: we will have to wait for clues from the airlines about that. the big theme for the end of the year has been one of recovery. not to the levels of 2019, but certainly much more robust than they had been. people all of a sudden were visiting friends and family, even planning some business trips. whether that holds up remains to be seen because there is the

issue of staffing, the issue of going someplace, testing positive, not really having a way to get home. matt: i wonder about the 5g issue. have you looked into this? the airlines say it could be dangerous to have a new variant of 5g set up near the airports. it will mess with their altitude sensor systems, which seems scary to me. on the other hand, the wireless companies, at&t and verizon say they have these set ups, they work fine in other countries, and they also weren't told this was going to be dangerous to air travel when they were sold these packages for $80 billion back at the auctions. brendan: that is going to be another big watch item. i don't think we have heard the last on that. the state of flight has been that the u.s. government in the form of pete buttigieg asked the

telephone companies to delay the implementation of 5g read yesterday, at&t and verizon came back and essentially rejected that request, but did say they would be open to certain flexibility involving certain airports that might be seen as riskier than others. i suspect we probably haven't seen -- we probably haven't heard the last word on that. i think they will be further negotiations among the government, the telephone companies, the airlines. the airlines clearly feel this is something that needs to be taken very seriously, and i think we will probably end up with some more information about that in the next few days. matt: in terms of one side digging its heels and or the other, you don't know where we are going to see this go? brendan: i think it is hard to predict at this point. i do think -- matt: here is the thing. if it really is a safety issue, if there's any possibility that

this technology interferes without two sensors to the point that there could be a plane crash, is there any possible way that it can be allowed to go forward? brendan: that is the dispute. the faa and the airlines clearly think there is some risk there. the fcc on the telephone companies say that there isn't. whether the faa is going to be willing to sign off on any negotiation or compromise or arrangement they can come up with in the next few days, that is going to be the key question. jonathan: i have not followed this story that closely. was any of this news at the time of the auction? did people know about it? brendan: it is something the airlines have been concerned about for a while, but they had not made a huge issue out of it until the end of last year, and whether that has a concrete impact, time will tell. this is a system used in many

other countries, although some countries do have some of the adjustments airlines are calling for in terms of how it is implement it, so i think there's going to be a situation where the devil is going to be in the details, and the faa and the airlines will probably hold some very important cards to play in terms of whether they do have the confidence that flights will be safe. jonathan: thank you, sir. brendan case on some of the cancellations and the spat between at&t, verizon communications, and the government. it is one of those azar but incredibly serious stories. i've got to say, this is all news to me. matt: my mom yesterday was listing all of the things she's concerned about. it is a long list, mostly around covid. but one of the things she said was with the 5g issue, we don't know if we are going to be able to get a flight to new york and see you. she said, i sought on the bloomberg. so she got that headline before i did.

but it is a fairly new story and new concern, but it is so grave. if there is an issue in terms of what the pilot can and can't see guarding altitude, you don't want to be on that plane. jonathan: have you got your mom terminal access? because my mom watches and listens to this, too, and if she finds out your mom has terminal access, she will want terminal access, too. matt: maybe for her birthday. jonathan: i wondered if she was sitting there with a terminal. matt: bloomberg anywhere. jonathan: markets up six on the s&p, advancing 0.5 percent, kicking off 2022. well into the green, and looking good on the nasdaq. the russell doing nicely, too. euro-dollar, 1.1355, negative by a little more than 0.1%.

crude down about $0.50 now, 0.7%. in just a moment we will catch up on the european economy in the path forward for the ecb in 2022. for new york, this is bloomberg. ♪

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jonathan: your first trading day of 2022. with kailey leinz a matt miller i'm jonathan ferro. up 26 on the s&p. yields are higher by five basis points to 1.56 on tens. euro-dollar currency pair -0.5%. a stock to watch in the premarket is tesla. brilliant numbers from that company. the stock up 6.4%. on the year, 936,000 deliveries. that is up 87% over 2020 deliveries. matt: it is incredibly

impressive. it shut down tesla critics who have talked about how they cannot ramp up production to industry-standard levels. they are producing basically one million cars a year. it is unbelievable. it is far better than analysts had predicted. even the most bullish analysts like dan ives and wedbush are impressed by these numbers. you can imagine the shares will do quite well. a 6% move for a trillion dollar company is a lot of money. jonathan: credit where it is due, it is unbelievable from where we were several years ago preoccupied by existential risk. we were laughing about it for month when it priced around 5.3%. this company has proven the doubters wrong time after time. you mentioned dan ives, he is

bullish at $1400 a share. this is what he had to say -- a green title wave has taken hold. kailey: that idea is giving a lift to other ev makers in premarket trading. it is not just the tesla story. dan ives also bullish on tesla because of the china story. other analysts noted the input from the factory in shanghai. tesla has navigated some of the supply chain challenges, chip shortages being one thing that is weighed on automakers, they have navigated this white well. jonathan: that stock is up 6.8%. joining us is the chief economist at akzo group. a big conversation about a federal reserve rate hike at the end of the first quarter. for the ecb, is that a conversation for 2022 or something to wait for for 2023? >> i think it is more for 2023.

the forward guidance for the ecb is pretty clear. the fed said q. week would continue until -- qe would continue until at least october 2022. at a stretch they could hike this year. i do not think it is the likely scenario. even the hawks are more interested in getting rid of qe, that is clearly the number one focus. the interest rate story is different. what i think the ecb is doing is giving itself nine to 10 months to decide what the pay for monetization would be. my guess is given their current forecast, they do not expect inflation back to 2% at the end

of their forecast. it is not the kind of message you sent if you want to convince the market a rate hike is imminent. i do not think it is in 2022. jonathan: how divided is this committee? as divided as it has been, more divided? gilles: it is true the committee , the governing council is quite divided. if you look at the points of focus of the debate it is about qe. this is where you would find the fiercest debates because qe is at the border between monetary and fiscal policy. it is been a prop given the obsession about not burning the lines -- not blurring the lines between monetary and fiscal. interest rates, you do this if

you think inflation is getting out of control. the euro is not the u.s. the risk of the current inflation spike morphing into something really sinister in europe is much lower than it is in the u.s.. matt: what holds europe back? why is it harder for inflation to take hold here? gilles: several things. we are not as advanced as the u.s. in dealing with the legacy of the lockdowns. if you look at where gdp is we have not caught up with what we have lost in 2020. we will shortly but our output gap is still negative whereas in the u.s. wheat can argue it is already positive. prolific as your fiscal stimulus has been, to some extent and overkill. the big difference between

europe and the u.s. is in the u.s. you have clear signs of labor market scarcity. you have a problem with your participation rates. people have left the labor market and do not seem to be in a hurry to come back. it is exactly the opposite in europe. and the euro zone the part rate is where it was before the pandemic and in some countries it is higher. in france, where i come from, it is the highest ever recorded participation rates. we are in a very different situation. we have been inflation spike, just like in the u.s.. the chance it turns into something -- remain lower. matt: what are the knock on effects from what the fed does? how much can the ecb rely on the fed to be the tail that wags the dog? gilles: historically the ecb has

been able to maintain a healthy lag in terms of response relating to what the fed was doing, especially of the market believes there are good reasons for the ecb not to follow suit. i would say that given demand may be wobbly, for instance demand from china is not as stellar as we would have wanted it to be. having a weak currency is helping. the euro at 1.13, it upsets some of the weakness in value. if you are on the ecb and you look at the rate, to some extent it will add to inflationary pressure but it is at a time where this extra boost competitiveness is welcome. kailey: the consensus seems to be a stronger dollar which has to do with the normalization of federal reserve policy.

on that subject to the consensus seems the fed will move more towards march being a live meeting. what you think they wait until the end of the year? the federal reserve? gilles: we think they will move in the second half of the year. it all depends on what you think the impact of omicron will be. so far from europe we have been surprised by the rack and function of the u.s. it seems there is a tolerance to financial risk in the u.s. which is much higher than in europe so the level of government related restrictions is always lower than in europe. you can see if the impact of omicron is manageable at the beginning of 2022 then probably the fed can move fairly quickly.

from my point of view, i was surprised by the latest statements from the fed. i would have expected them to be more cautious given the uncertainty created by the variant. something you mention -- kailey: something you mentioned was the labor force participation in the u.s. and how consistently low it has been. why will we see normalization soon? gilles: a fair question. going back to covid. it seems we have to talk about covid all of the time, even at the beginning of 2022. there are two schools of thought on this participation rate in the u.s.. either you think it is mostly driven by the people above the age of 55, early retirees, people who made enough money on their financial assets and decided to retire because they had been enough money. it is that -- if that is the

driving force, may be structural and we will never recoup those losses. another explanation is you still have some legacy impact of the pandemic. if you look at female participation rates between age 25 and 40, there has been a drop in participation rate for this population. this might still be driven by childcare issues given the fact the number of cities in the u.s. , things about completely normalized post-pandemic. you can still expect some normalization of childcare capacity, the schooling system coming back to normal, and participation rates moving up. i accept it is a brave assumption. jonathan: wonderful to kick off 2022 with you. gilles moec with axa group. looking ahead with priya misra shortly.

in the bond market we wake up in 2022, treasuries lower, yields higher. your 10 year 1.57. matt: not the move higher you may expect. we are seeing it start to climb. you would expect that to continue. i wonder, the year-end forecast is around 2%. only 40 basis points away. jonathan: 2.25% is the highest i've seen from the major banks. i happy new year to you all. thank you for tuning in. i understand lisa and tom will be back at some point in the future after taking their third week away from work. who is complaining? kailey leinz, matt miller, jonathan ferro. ritika: u.s. airlines greeted the new year with more than 6500

weekend flight cancellations, closing out a bumpy holiday season. a winter storm and staff shortages caused by the spread of the omicron variant helps draws the trouble. many dropped flights are expected for today. an online hong kong media for says it will shut down on tuesday. it is the third pro-democracy outlet to folder just six months. concerns on the rise freedoms in the former british colony are. a national security -- are declining. chinese developers shares dropped following local media reports that the china evergrande group has been ordered to tear down apartment blocks in a province. a local government apparently told evergrande to demolish 39 buildings because the building permit was illegally obtained. tesla delivered more than 308 thousand vehicles worldwide in the fourth quarter, smashing its

previous record. the results drove total sales to more than 936,000, about 87% higher than what we saw in 2020. tesla has joined the $1 billion market valuation club last year. goldman sachs is asking u.s. employees to work from home if they can until january 18. the move comes after most of the banks major peers adopted a more cautious stance as the omicron variant spread. goldman had been among wall street's fiercest champions of getting it staff back into offices. 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. ♪

>> i have young children heading back to school. i feel strongly they are safer

in school than they are on play dates happening in a more casual setting. even some general public places you might take them to have some fun. i think returning to school must be a priority. i think a central strategy to keeping children safe will be testing. kailey: that was mercedes of the northwestern university feinberg school of medicine. right here in new york we are getting news on the school front in new york city. the new mayor says we may not see a closing of schools even as covid cases bike. eric adams tried to reassure parents schools will be open. he will send 1.5 million tests to schools. this is something parents are dealing with. it is one of the factors we have to think about when we think about this labor market and lower participation. matt: absolutely. the question is do you do what

parents want you to do, do do what kids mental health demands you do, or do you try to stop the spread of the disease. even if you have less severe disease from the omicron variant , when we are looking at such massive numbers. we have been covering this -- that has to be a drastic understatement. most people who test positive never tell public health officials. you will send a lot more people to the hospital. does eric adams make the right move for parents and kids for the right move for health care workers? that is what i think the interesting debate is. kailey: a very interesting

question. let's pose it to joshua sharfstein. when you think about school and children when you see infections on the rise, you think keeping schools open is the right move? joshua: i think so with appropriate precautions. i think the doctor from northwestern had it right that if done right to the school is a safe environment. masking, tests, especially during this search of cases, it is important for kids to be in school and the chance school becomes an explosive source of new infections is low. kailey: explosive new infections is what we have seen. 10 million cases in one week. are we reaching a peak of this way of considering how quickly it is spreading? gilles: at a certain point --

joshua: at a certain point it has to slow down. the question is can we keep hospitalizations down? even though there is rest -- less risk of getting hospitalized, it is still a risk. with 70 people infected you see numbers increasing. i heard from dr. singh it is a lot of patients but the good news is they are not as safe overall as they were in the delta wave. matt: how reliable are tests? i keep talking to people who went to a party with someone who tested negative before the party but then on the day after that they tested positive, and then all of a sudden everybody at the party has got it. how much can we rely on these tests? joshua: that is a great question. in united states we have great faith in testing.

we assume the test would give us the answer and it is hard to process the fact there are cases the test will miss. testing only helps in aggregate. if everyone is testing we will have fewer cases. this does not mean you cannot get into trouble at a situation like that any party. people have to check and realize they are lowering the risk when everybody is getting tested but they are not eliminating it. you have to be judicious about what you want to do, what is valuable to you, it keeping in mind the limits of the testing. matt: what is your take on flights, on the safety of being inside a giant aluminum tube with a few hundred other people for a few hours? two years on. before this covid pandemic, i thought everybody gets sick on planes, that is part of travel. you get sick. that is why somebody invented

airborne and made a billion dollars. throughout this pandemic, talking to airline executives and engineers, i have come to believe maybe it is cleaned out air, safer place to be as long as everyone is masked. how do you view it? joshua: everything is relative. compared to sitting at home and doing nothing it is riskier. there is a frequent air exchange. yet the chance to wear a mask and be boosted. -- you have the chance to wear a mask and be boosted. it boils down to your risk tolerance. people who want to avoid the virus at all costs will be stuck at home. as we get to 2022 and say we will go back to living our lives , you have to take calculated risks, and air travel is

reasonable under the circumstances. in the middle of a huge wave of omicron, i think there are some things are going to do differently. once that is behind as i think we'll see 2022 play out a little differently. kailey: thank you so much to joshua sharfstein. i will keep saying happy new year through the rest of the day. to his point about vaccinated in boosted people feeling more safe , taking that kind of calculate risk as they move forward with travel or other plans, vaccinated and boosted people are still getting this disease, they are still testing positive. how does behavior then have to shift? that is my question. matt: i think the question is how does it impact the economic situation? if you are vaccinated and boosted you may be slightly more fearless in terms of making plans come in terms of spending

money, in terms of organization, but the admin gets fouled up once you test positive. it is not that you are concerned for your long-term health, although maybe you should be. we were talking with david kotok about the problems of long covid. you are more concerned with having to cancel flights, having to cancel hotel rooms, maybe not wanting to make that personal or business trip because you do not feel like dealing with the adm in. kailey: if you're a parent you're concerned whether or not your child can go to school. in new york eric adams says they will not be shutting schools down. you'll will be joining "balance of power" with david westin just a few days after his inauguration. do not miss that conversation at 12:00 new york time. that will wrap it up on

bloomberg surveillance on the first trading day of the year. futures are in positive territory, up about .5%. the bond market waking up to the new year with serious selling pressure. up to 1.58%. on tv and radio, this is bloomberg. ♪

jonathan: getting 2022 started. good morning. your equity market pushing higher, up .4%.

"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. buckling up for the new year. >> 2022. >> kicking off 2022. >> 2021 is in the rearview mirror. >> the problem will be the story of 2021 because we have inflation. >> the market is worried about it. >> will it go down fast enough? >> we have an aggressive fit. -- we have an aggressive fed. >> critical for market outcomes. >>