♪ >> they break something when they raise rates too much. >> it will start to rise this year. >> the market is only pricing in a few rate hikes in 2023. >> they have more difficulty hiking rates more than the market believes. >> this is "bloomberg surveillance" with tom keene, jonathan ferro, and lisa abramowicz. jonathan: this hour, we hear from the white house, for our audience worldwide, good morning. this is "bloomberg surveillance" live on tv and radio. alongside tom keene and lisa abramowicz, i'm jonathan ferro. your equity market bouncing back. tom: the white house, 15 minutes away. the gentleman talking about build back better. i believe inflation front and center and that is the study here as we go to the fed

meeting. jonathan: and the option to break up triple b. lisa: they can't get it through. they conditional get the flagship aspect of the plan through. how much does this affect some of the gross estimates and the call that this will break down inflation in the longer lorenzen term? jonathan: the federal reserve decision just around the corner. expectations over the last month, climbing, climbing, climbing. higher, higher, higher, the expectation of this fed has do a wheel lot more. tom: there's a cardinal rule, john, that the fed loves to get out to make decisions when the people less expected. in percolating in the literature is why wait till march? do something or really signal something in january to really make march more effective. and i wonder if that will be the surprise. the language or dare i say, even action that we could see in january. jonathan: the people are asking it, tom. do you think it's on the table next week? not to hike interest rates but to wrap up q.e.?

tom: anything's possible. this is not like the eastbound. e.c.b. we avoid that like the plague in america. it will be more language in press conference. jonathan: i hope so, tom. futures up 23 on the s&p. advancing half percent. nasdac, up .9%. we pull back on crude to $86.76. lisa: very much playing with the inflation story. what is the bigger risk to markets? the fed being overly hawkish. the market is going to see a disruption because what we are seeing in the labor market is a tightening and wages are going up. 8:30 a.m., we get the jobless claims where you see from the

continuing claims hat they have continued to go down to they are lower than they were pre-pandemic. this is a number of people receiving ongoing benefits. how much do we see the ongoing tightening even as that participation rate does not recover to pre-pandemic levels? 10:30, we get the croyle -- croyle inventory report. how much do the fed recognizes and respond to this? this is not one of the area that they want to focus on. croyle going back to 2013. people expecting $100 a barrel. president biden weighing in. what's he going to do about it? he said we're going to work on trying to increase if oil supplies are available but it is going to be hard. it was an temporary up blip in pricing and there's very little that the administration could do at this point, to have an immediate ramification. and netflix reporting q-4

reporting. and interesting to see whether we have a return to 2019. level of subscriptions. and how much can they raise the prices at a time when inflation is very much at the forefront? jonathan: lisa, thank you. tom, we've got to talk about theurgy politics as well. a marathon effort in that news conference but one slip. one perceived slip. here's the quote. it is one thing if it's a minor incursion and we end up fighting about what to do and not to the president on russia going into ukraine. tom, ises that ok? we need a clarification from the administration. they tried to clarify this. he was referring to the difference between military and cyber action by the russians. tom, there is a difference the administration saying that's the key distinction.

tom: it was something stupid by all accounts. what i will suggest is they going to manage the message around a stew of things centered around moscow? it would be belarus and south ukraine and over with the other challenges russia may have. and it can also be a way for cyber to another sea which is crypto. russia readjusted its bitcoin, it's crypto attitude and i'm looking at bitcoin unable to be find a bid going from 42,000 down to a 41,000 handle. i'm going to say it's off topic. it is not big deal but nevertheless, that's a moscow stew we're all looking at.

tom: i can instantly bring up the relationship of the ukrainian currency to the u.s. and it's right up against weakness right now. the c.e.o. of markets asset management joining us right now. some people say 10% correction. that's a bite. it is important to understand whether we're transitioning to a bear market or a bull market how do you draw that distinction looking at this market at the moment? >> i think we do have a bear market in portions of technology. i think there's a decent number of high growth technology issues that made that pick as long ago as march of last year and it's not hard to find individual issues and even individual indexes as in the nasdac which is down 50% from that point.

now, as funny as it might sound, the transition from bull to bear, it takes a 50% move to start to make people think that this wasn't just a dip. but this is obviously a key earning season for technology in particular. the numbers, names, starting with netflix which has had a terrible start and the question is a terrible start justify and driven by fundamentals or is it just the natural volatility of the stock which is up 400%, 500%. lisa: what can earnings show you that makes you want to get more bearish when fed policy is driven such of the volatility? michael: well, you know, i think what you want to see is multiple concession in a good way.

you want to see the e accelerating and the p multiple coming down to something more reasonable. i don't think it's in a straightforward bear market but i think its leadership credentials have really been challenged. but i'm sure with a 10% move, you know, it has been somewhat incriminate and bottom up investors will find some opportunity there. tom: michael, help me with the profit and the nonprofit technical companies. you say the large ones, the new defenses are still in a bull market as well. i look at the art funding cratering here down 50%, at least, off of the peak of peril last year. how dowdy certain a profit versus a nonprofit tech? where in the income statement do you describe that?

michael: i think multiples matter a lot. balanced against that, you know, growth matters a lot. but this is not the first innovation cycle that we've seen. i lived through the late 90's. incredible things have been done by the corporate sectors but investment expectations of the value of what they've done really started to become unhinged from the reality once covid hit. and we're in one of those, i think, long periods of adjustment where although the corporate news isn't necessarily terrible, the long-term value ascribed to that has the ability, you know, to be reduced significantly. it's not hard to find 50% declines. i think that the proponents of these sectors, of course, we bang in the table that this is a fantastic buying opportunity.

and there are buys now in a portion of this area. but this looks like the big move from bull to bear in that portion of technology. jonathan: it's been brutal, that's for sure. michael shaoul from marketfield asset management, thank you. the hope that the people who along these names still have is a deceleration, the economy that they expect at the back end of this year. lisa: a lot of people are expecting that the calendar will be on their side and chat the fed will help their cause but there is an issue with how much the profits also going down, especially if people do start to go back to the offices and we get a post pandemic reality that looks more like a pre-pandemic one. jonathan: can you deal with the

pain in the meantime? lisa: we see that in a lot of the analysts know and the focus on long term at a time of near term unpredictability. jonathan: we have to turn to the administration now, tom. a lot of pressure on this administration to do something about something some people say tom, they can't control. inflation. tom: they've got to control the dialogue between a frackous democratic party, the left and the center. i didn't hear that much about that yesterday. i think that's going to be the dialogue and the hallways of the white house. jonathan: that conversation coming up with tom keene, lisa abramowicz and jonathan ferro. your equity market up half percent. the bond market is big. yield lower coming in three points to 18 -- 1.8. this is bloomberg. ♪

>> president biden gave an extraordinary blunt assessment to russia's intentions towards ukraine. the news conference that the president said he expects vladimir putin to "move in after assembling 100,000 troops on the ukrainian border." he says nato allies are divided by how to respond if russian action against ukraine fall short of the invasion. president biden's bid to push voting right has collapsed. two key democrats broke with it to kill the bill's chances that was joe manchin and kirsten cinema. -- sinema. now citigroup asks employees to come in the office three days a week. and e-mail to citi south says the bank will continue to offer

flexible working and that is protective measures do remain in place. in europe, tech platforms such as google and facebook face tighter restrictions on how they target its uses. the european parliament move to favor rules restricting platform in using sensitive data such as race or religion or targeting purpose. lawmakers require companies to make it easy for users to opt out of tracking. global news 24 hours a day, on air and at bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries, this is bloomberg.

>> given the strength of our economy and the pace of recent price increases, it is appropriate as the federal chairman, chairman powell, the fed chairman paul george has indicated to reallocate it. jonathan: the president of the united states on build back better. futures part of a half of one percent on the s&p. the administration's effort -- tom: absolutely. let's get right to it.

this morning here with an important conversation with the white house. and what's so important here, john and lisa is we all know there are people that finesse their way into 1600 pennsylvania avenue and there's others that lean over the desk and just grind out work. that's been the past of the director of national economic council, and most importantly of middlebury and yale and then he went to work and actually went from task to task to task as he went up the democratic party food chain. jonathan: he joins us right now. you know where the focus is. the cbs poll, 65% say the administration is not focused enough on inflation. so brian, let's start there. the degree to which you can do anything about it. brian: we've got a plan to do so. it starts with the context as you were just noting. historic economic growth,

strongest in 40 years. job growth, more than six million and the unemployment rate down to 3.9%. we have a lot of strength in the economic recovery and a uniquely strong economic recovery. the fed needs to operate with the independence that it has. and from his perspective, his approach is about expanding the productive capacity of the economy, making it easier for us to provide more services. it's about making -- boosting competition, making our economy more competitive and it's about lowering kitchen table cost going right at those costs that tim pack families. so he's got a straightforward plan here. it's the right plan for the country. and we're going to stick at it. jonathan: it started with the

federal reserves let's go there briefly. the president of queens college cambridge said on our network this is one of the worst fed calls in the history of the federal reserve. yet chairman powell got a second term. what did you hear in that interview process that convinced you that this is the right person to lead this fed through this current environment? brian: the president was clear for his crisis for the nominees for the board of governors. expertise, judgment, the instit.

the president is trying to reinforce of having the independence ofence of the fedel reserve to make difficult decisions in this environment is important. it's important for our economy. it's important f democracy jonathan: he implied that's the travel now. what are the pieces of that that you can pass and can alleviate some of the price pressure in the mid to medium term? brian: the biggest cost to the typical family faces on a monthly basis. health care, prescription drugs, child care. those are the biggest costs. and this billl has elements that would go directly at it and provide relief in practical ways. meaning no middle family pays more than 7% of their income in

child care. it also will help get more people back to work because parents, particularly women parents will have, particularly more women s. health care. we have seen fivee we have seen five million more americans this year get health care because we made it cheaper and easier for them to get access. continuing that support, extending that support, common sense, lower cost per family. same as primings drugs as well. those aree are the kinds of this that speak to the economic challenges that families are facing.lenges that families are facing. lisa: president biden concede some of those programs are going to be very hard to pass, in particular the child tax credit. renewable energy is one of the most important areas that seems like there is bipartisan support for, what are the ones that are passable that could lower prices? brian: well, i would just be very clear the clean energy

provisions in this bill will not only make it easier and cheaper to deploy clean energy and address the climate crisis, it will reduce energy cost. the child care will help people get to work. the health care provisions will make improve health for our families but lower costs. those are all things that i think are practical, would address costs and are doable. lisa: earlier in the inflation outlook, we saw a lot of outsize gains for the lowest income earners. they're seeing some of the biggest wage gains. we've seen the latest bank earnings show a 15% increase for bank or pay over the past year the expectation is it will continue to increase from here. at what point do you start to get concerned about a wage price spiral? brian: one of the things that's remarkable about 2010 is the fact -- 2021 is the fact that

the welterweight wage increase was skewed. earners in sectors like leasher and hospitality saw historic record wage gains that's the kind of progress that we want to see and not only because those are people that need wage increases the most but it creates the least concern about wages and prices interacting with each other. i think that what you hear from joe biden yesterday is people seeing their wages go up. that's a good thing. that's part of an economy that is progressing and growing in a different way than it has in the past. so what we want to do is we want to keep that economic momentum going while taking steps to have prices normalized. that's what most projections suggest will happen but we need to stay on target and that's why the president is being very clear about the plan that he's got moving forward. and also clear about where he needs congress, to confirm

qualified nominees for the federal reserve, to work on practical elements of build back better. jonathan: this is where the hope is right now. and i think we all agree. we all hope you'll be successful. we all want the best for this country. the moment people don't feel this you say wage growth, people say 7% inflation you say things are getting better, they say things are getting more expensive at the pump. crude is at $86 a barrel. within that address yesterday, the president said we can do more to increase oil supplies. brian, specifically, what can he do to increase crude supplies? brian: well, we can work to accelerate the release of strategic reserves that is underway in the united states. and we can work with other oil consuming nations, accelerate supplies on the market. we can work with oil producing

countries around the world so that the opec plus countries are actually meeting the targets that they have set for themselves. some of the tightness in oil markets right now is a function of the fact that those supply targets have not been hit because there's been events in certain countries. we can work and engage with those countries. and look, to your broader point, this is work not yet finished. and the american people are frustrated and understandably so. this has been a tough couple of years. covid and the uncertainty it creates and prices create uncertainty. and that's why it is important that we have a clear plan, an action that we can communicate in practical ways that will impact people's lives. jonathan: allow me to jump in. it is the plus in opec plus. if you dial 1-800-opec right now, you're dialing russia. this is where i need some input from you. the foreign policy goals of the administration are with your

economic objectives? brian: well, we are meet the russian government and making clear to president putin the stakes and the costs associated with his action. that is about making clear to him the stakes for him to make the decision those were decisions ultimately that he has to make that's not on the united states but we have been very clear that we will be prepared for any contingency not only in terms of imposing significant economic costs on the russians but also working with our partners to mitigate the impact, including in energy markets. that's not easy. it requires steady consistent diplomacy with our allies, with other oil producing countries. and it is work yet to be completed. but that's the focus of this administration in trying to make sure that whatever international and geopolitical events we have to manage through, we are keeping front and center to

protect and support american consumers and middle class families here. that sounds great. so let's go there. let's get some real detail on this the president said that maybe we can look into alleviate in some of the dependents on europeans on russian energy. brian, when you try and work to get crude output up, higher, as you know, a conflict right now is what's happening with russia. europe's in the middle of that. germany's in the middle of that and so is the united states. what on earth can you do? can you run me through the specific part of the policy effort to alleviate some of the dependence of the europeans on russian gas? brian: well in the very media -- immediate term, the focus is how we can make sure that european countries have sufficient access to natural gas to get through the winter months but also to alleviate pressures in the spring. and very specifically what that means is working with our allies and partners particularly gas

producing countries to understand what additional capacity exists and how we could move and extend that capacity into the region. that is country by country. it's very specific and technical but we're working those plans. either we have them in place for any contingency. jonathan: do we have capacity here at home in the u.s. to do more? these are private companies. it's not like the saudi who is can just dial it in and increase output. what could the administration do to advise them to encourage them and incentivize them to increase that capacity? brian: well with respect to natural gas, our export capacity this we are at close to maximum export capacity. so what we can principally do is work with allies and try to identify and arrange ways to move more product in other ways. but bigger picture, oil trades of commodity on a global market and it is a function of supply and demand. and ultimately, the most

powerful issue right now is working to get the stated supply commitments to actually be delivered on. and that's going to be the most impactful as well as working with allies to put reserves on the table those are the steps that we're focusing on. jonathan: i want to squeeze one more question in. the president for a lot of people yesterday on that news conference really took one for the team he stuck up for all of you when people questioned the leadership around him specifically on the economy. he talked about what he underestimate, overestimated. he talked what about he needs to do better personally. i said the air last week that we haven't heard enough from you and i want to hear more from you and it's great that we're hearing from you today. what do you personally need to do more of? brian: well i think that the president was very clear eyed as he always is about the progress we've made and the challenges that we faced. one of the perennial challenges in these jobs is making sure that we are hearing from all corners, getting outside of

washington in terms of the perspective and the input and trying to hear from everyone we can including constructive criticism. that's going to be a goal for all of us in this white house starting with the president for 2022. and i think that that helps. working here in this environment is 24/7. it's non- so that can be difficult to do. but we are resolved to sure that we're listening to everyone and getting out outside of washington and trying to explain the ways in which the steps we are taking are actually impacting people and meeting them where they are. that's going to be work that we'll try to do more of, even as we'll be continuing to manage the day-to-day and all the issues we've just discussed. jonathan: brian, thank you on behalf of the team. we hope we can have more exchanges like this one to the near future. brian deese, the director of the national economic council. tom: some delicate issues there,

john. i liked how you dovetailed the foreign policy there with domestic policy. they have a history at colliding at inopportune time. we will get perspective from daniel tannenbaum scheduled to join us this morning who is a truly expert on sanctions. jonathan: the energy issue is a domestic issue. a domestic crisis in many ways because we've been hit around the head with crude prices at $87. and the real issue of russia threatening to go into ukraine. how do you manage those two things when they're in total conflict of each other? lisa: and how do you deal with the transition to green energy when you haven't laid the grown work without that huge in-- groundwork in gas prices? jonathan: let's switch for the price action. futures are higher by .4. n.s.a. n.s.a. up .7.

tom: this is important, john. there's a tweet on the board you've got up, on radio we're looking at equity equity -- equity markets. sometimes it's not what is there but it's not what's there. the vix is not at a 56 level. jonathan: thank you. let's get you some single terms. >> we will stick with the equity market for now. the big close that we had yesterday. correction territory for the ncaa. nasdaq on that. amanda down again -- a.m.d., down again.

first time we will seen that on apple going back to october. to the general idea here that some folks are rotating through this market rather than pulling cash out of it, keep an eye on names like apple as well as microsoft and netflix. earnings are going to be after the bell. shares higher by .9. this stock has gotten beat pup prior to this week. a look for about 8.3 to 8.5 million net add. we did get some earnings this morning out of it. united airlines was going to surpass its 2019 capacity in 2022. now revising saying it will be below that. they said we've been seeing periods of high demands, countered by periods of low

demand. alcoa reporting earnings and they were good. tom: romaine bostick with the close. that's the first techy type earnings statement. right now and this is really well timed. peter joins us from academy. security is the acuity of his note and what is great is the immediacy of his note. he writes about the zietgeist. peter, i love, love, love how you're talking about the bet of inflation even rolling over and how the fed will shift its rhetoric. how close is chairman powell to shocking the markets what devilish tone? peter: we're starting to see

inventory build. supply chain issues are going away. the economy in the as good as we thought. tom: let's not do the babble, let's stay in the fixed income market and look at the fan distribution of wield yoo. what will yield do if powell yields a slowing economy and moves from the four-ish parlor gain to the three rate hikes? how does your world change? peter: what we're going to see as a big risk was one of the first times in a while that we've seen yields go lower and stocks down. lisa: so give us a sense of what the tragedy has to be to lead to this dubish surprise that the fed is just jogging.

peter: we will see little signs of supply chain -- slowing. and we need the politicians to take a step back, look at jobs. look at those things. we're going to run to a much bigger problem where we're headed and it is going to be about jobs. and the administration thinks people care about inflation, wait till we see if they don't care about jobs. lisa: so you think we're over the a looser labor market than a tighter one. is that correct? peter: yes. we're going to start seeing some pressure from all the hiking. the economy will slow down a little bit. i'm still shedding big tech. one thing i've been nervous about big tech, that's worked out very well.

i'm starting to get a little bit nervous that we're seeing this tweak to thes in a tick 100 and we get another lower. it will be lead by the s&p 500. so that's where i think the next wave comes down is the further shift of the s&p. i'm not ready to buy yet but i am starting to look at that. and i probably will start buying with some of the most beaten up sectors first. jonathan: peter tchir of academy securities, thank you. this is the quote he had to say i've seen surprisingly little that the fed is jawboning to put expectation answer to acceptable level to keep politicians happy. it is one of the best tools for decades. tom: i agree that the fed is reacting to the zietgeist and the rhetoric but i don't hear in fed comments with one exception.

a lot of jawboning. what stuns me, john, is presidents and governors making comments on specific rate hikes and sequences of rate hikes. that's new territory. that's something we've never seen before. jonathan: we haven't had one. we haven't had one and the nasdaq's already down 10%. lisa: but we haven't had inflation like this. and they're all trying to get ahead of the inflation. the question remains are the transitory believers still out there and it seems like peter is saying this does resonate for later this year. jonathan: later this year. we've got a lot to talk about do we see that deceleration which would encourage them to go back and the fed to back away from interest rate hikes? that's the debate of the moment,

tom. that's why we've got some people saying four, five, some people saying two. looking for that deceleration later this year, that deceleration in inflation. tom: i'm going to go david rosenberg with his own shot and they're saying it is dynamic and things change as events occur. and if you do get a yield up as you get the fed pulling away fiscal stimulus ebbs, that's a whole new world after all. jonathan: i would very well a basic question with danny. we're good friends but i want to understand the conditions at which he would call for an interest rate hike, tom. that's been absent from the conversation for a while. tom: that would be true. that would be true. he has been very, very skeptical. jonathan: tom keene, lisa abramowicz and jonathan ferro yield to level three basis points. this is bloomberg. ♪

>> the supreme court has cleared the way for donald trump's white house dealing with the january 6 to be overturned to the corral committee by 8-1 vote. justices rejected the bid to block the release on the grounds of executive privilege. the material includes visitor, e-mails, and handwritten notes. president biden says if the fed -- rein in the fastest rate of inflation in decades. at a news conference, the president said he supports the fed's plans to scale blackmon their stimulus. a poll found most voters do not think the president is focused enough on inflation. in new york, ghislaine maxwell has asked for a new trial.

lawyers for the british socialite raised concern did not display that he had been sexually abused. maxwell was found guilty of grooming and abusing underaged girls with grayed financier jeffrey epstein. a plan on crypto currency money within the country. the central bank says that crypto is being used to finance illegal operations and they accomplishment russian policy, sovereignty and make it necessary to maintain higher interest rates. global news 24 hours a day, on air and at bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries, analysts in e than 120 countries,

>> i don't think there is a magic policy that they could do that would help quality

inflation concerns, help the financial markets, help the economy at the same time. they're going to pick the side of dealing with inflation. jonathan: that's the dilemma for this federal reserve. jim, your economy market a third of 1%. nasdaq futures up 88. 90 and plus some. we're up .6. yield in three basis points on 10, tom. 1.8343. tom: john, it's not a breakdown but it's really nudging down so that will become a really interesting future. jonathan: i agree with you, form. how much work the fed needs to do. and we get the curb flattening that we're used to.

tom: very quickly on bitcoin, michael pervis does a technical study this morning of bitcoin and i wanted to bring it to the your attention. he stuns with the comment based on the momentum in some of the technical tea leaves he sees here at 41,000. just wanted to bring that to your attention. it is the toughest thing to call in russian supplies and russian demand. >> it shows that progression of

russian output. one of the key concerns in the market is that you have this ongoing dand from around the world what you don't have is the cassidy to match it. russia is on the hook and the concern is they are going to meet at the half of what they need to. tom: is it the stock as well? >> it's a very light version of crude. it goes into jet fuel and into gasoline but it is included. tom: does it go into inflation?

whether it's russia or wherever the marginal barrel's coming from, how important is that to the inflation guesstimate that you see right now? >> if you look the chart, they showed 10 million barrels is what that's showing, shy of 11 million barrels 10 million of that is crude. the majority is coming from crude just the way that russia calculates it. but i should point out that there have had these struggles for a while now. it has to do with weather in particular. tom: the condensate moves away from the hex sane derivatives. >> earlier this morning, they reported a fourth quarter loss that was bigger than expected but the unit cost per mile increased dramatically they saw an 8% to 10% increase in

operating expenses per mile and a decline in traffic for the first quarter. how much have we accurately priced the ramify days of higher oil prices? kriti: you are seeing those input costs weigh. in and they didn't have to because oil prices were already so keeply didn't have to hedge it. and now you're having the passenger rebound issues come back into play. that being said, to your point about factoring in these commodity costs, this is the concern a lot. and this is for the biden administration in particular. because you do have these calls from middle eastern countries to ramp up and to take advantage after these higher prices but

the problem you is can't ramp up that quickly because now you don't have shale coming out of the u.s. on your side. and that is creating an inevitability that is going to hit 100 dollars a barrel in 2022 and certainly over in 2023. lisa: we heard from president biden just moments ago to the president about efforts they're going to try to take to bring down oil prices. their cans are chi and they concede this. if we get to the inevitability of 100 a barrel of oil, which repriced in some of the ramifications on margins in the u.s. equity market? kriti: yeah, that's going to be one of the concerns. i can't say that because there are other issues. the fed really takes the front seat in that. but what they're going to be arguing is -- targeting is oil prices. you can't control the supply right now in a way that opec or

the shale players have in the past. they haven't been the look because there isn't that much supply to garner. especially the united states that have to be held far more accountable in terms of their capital discipline. that has direct ramifications and therefore, how much countries around the world are able to not only take advantage of those prices but also consume. china is one of the major global consumers of oil. so if you see them perhaps decrease so much their consumption, that is going to weigh on prices. that's probably a good time when you can't see the supply ramp up anyway. jonathan: jonathan: thank you. the geo politics of this one, lisa, just fascinating. lisa: europe very much front and center. and they're struggling with the fact that they do rely on russia for a lot of their natural gas, inputted at times when gas prices have been would be the inflation drivers.

record paces across the euroregion. how does the united states then really create some serious sanctions on russia if it crimps oil supply to their biggest ally, europe? jonathan: the administration is in a really tough spot. there are some things they can do. many others that they just can't at all. tom: the complexity are foreign and it's always there for any administration. what i think we didn't touch on is president biden go back to his first principle foundations. and that is speaking to the american people about domestic challenges that the government can help with. and that is infrastructure and that's the common ground for him. i am dumbfounded that he hasn't taken an infrastructure-centered approach. it's old school but joe biden's

old school. jonathan: we heard a lot about it in the news conference. they've talking about basic things like bridges too. it's not completely lost. it's out there. tom: it's like let's go. jonathan: tom keene, lisa abramowicz, and jonathan ferro from new york, equities up. this is bloomberg. ♪

♪ >> the most important point from my perspective about this cycle is it is going to be far less predictable. >> the u.s. economy this year will be relatively solid but the valuations need to come down. >> we're headed for the tightest labor market since the 1950's. >> something's got to give this year and it might be margins. >> this is "bloomberg surveillance" with tom keene, jonathan ferro and lisa abramowicz. tom: good morning, everyone. we arefully employed america, we will see that at 8:30 with claims as well.