announcer: this is bloomberg "surveillance." matt: good morning, good morning. this is bloomberg "surveillance" live. futures down .1% >> >> in the market. the market is its own story may be able to well i want to emphasize this is a monday to stay on top of the markets all day. yes, it is the bond markets, but

also the currency markets. once again, over 40 years. matt: we will talk about the treasury curve, all years above. >> let's do the calculus. they are ugly. the rate of exchange is just externa. you turn your eyes to look at the oscars, turned back and look, and we are flatter. >> where back on the s&p 500. >> here's my question. earlier this year, it is not just behind ago, but the speed. we have both. they're going substantially higher and the pace is unbelievable. if you look at a two-year yield, this looks more like it coined than the use treasury marker. -- the u.s. treasury marker.

-- market. where people relying on? >> equity prices are up. he thinks 50 at the next meeting and 50 in the meeting after that, then 50 again and again. >> we also did colby smith over the weekend. >> they need higher rates. higher than they think. that is the bottom line from citigroup. nothing controversial about it. this is what they're saying. to -- to constrain was happening at the moment, you need to get rates higher. if you are going to go 50 at the next meeting, why would you not do it again and again? >> which is back to our question, how can stocks remain so resilient? >> that's the show this week,

isn't it? equities down. >> friday, really? >> down about .25%. -- 0.25%. >> for all the wrong reasons, not necessarily because people are optimistic about a resolution of the conflict, but because amid all this, china is shutting down parts of shanghai we will get to that later separately in the show. we have a list of guests. can they tell us how concerned the fed is about that curve?

you did see it invert, for the first time going back to 2006. do they actually want to see this? they need to get a bit more respect -- restrictive. they need something more like a hard landing in order to get inflation back to where they want it to be. today, the u.s. treasury is selling $50 billion of two-your notes and $1 billion of 10-year notes. how much demand is there? demand has risen to 2.4%. it has been an astronomical climb, especially considering the fact that starting the year, it was less than 1% of a yield. at 2:40 5 p.m., president biden is going to announce his budget for fiscal year 2023. the focus will be on reducing deficits by more than $1 trillion in the next decade. we will talk about perhaps some sort of wealth tax, with billionaires providing a big have to of the deficit-reducing

income. we will talk about fiscal spending. how do we counter that slowdown that eventually could lead to a hard landing that someday people are now expecting. jonathon: here's a headline for a. according to industry data, russian oil exports fallen 26% in the week of march 20's -- arch 27 to 23. >> this is the back story this weekend. the other news is so important, particularly in financial markets and the tragedy of this war. i would suggest this went to a new level this weekend, really nuanced there in materials and hydrocarbons. jonathon: let's talk about this. this is all overshadowed by one line from the president of the united states. pres. biden: for god sake, this man cannot remain in power. jonathon: and just as the speech wrapped up, the walk back started. >> as we said repeatedly, we do

not have plans for a regime change in russia or any other country. jonathon: we have annmarie hordern and maria tadeo. what happened? >> this man said -- president biden said this man should not remain in power. he gave this speech in warsaw, a native country on the border with ukraine. he saw the weekend really working overtime to make sure they can clarify that this was not policy, but we should note that we have been here before with president biden. it was just earlier this year, when he said minor incursions in the white house had to come out and really describe what he meant in terms of retaliation for any sort of invasion into ukraine. there is also october, when the

president was coming to the defense of taiwan. now what you see is a number of individuals, especially allies, weighing in and trying to de-escalate, make sure it is not taken the wrong way and for the kremlin to use it against the allies. >>'s poland happy with what they have heard from the united states? annmarie: poland is particularly happy with what they heard from the president. i was there at the speech at the royal court and there were big moments when you heard applause in the audience. this was mostly polish individuals in the audience and ukrainian officials as well. that was really when the president talked about defending nato territory. of course, that is top of mind of this country, as they are so close to this war. we already have just miles away from the border. so close that the president, and public and also bilateral, make

clear that if -- that the united states viewed article five as sacred obligation and they will defend every inch of nato territory. the president also met with american troops that are stationed here on the border. what we've seen over the course of the past few weeks is more americans coming to poland. what press secretary john kirby said to me was this may be the wave of the future, that troops remain for longer. i think pullen was very happy with that. lisa: can you build on that? the true buildup not only from the united states, but the united nations, how big it has gotten and what the thresholds will be before they start to actually take action in a more active way? >> by the way, when a lot of people heard that line that he has a goal and couldn't statement power, -- couldn't stay in power, many people have

been trying to de-escalate actively, saying we should not use this kind of language. what we need right now is a cease-fire and stop to the war. i am not sure how vladimir putin will take this. particularly in brussels, that one line, that particular sentence, actually took a lot of shying away from the big moments we saw at nato and the european union on friday. what we're seeing, and this was the big nato meeting, was a very clear signal from the secretary-general dalton riggs that we will see more troops on the ground in eastern europe, particularly under the umbrella of nato. nonetheless, these are u.s. troops on the ground. we are talking about with awaiting a, estonia, but also countries by romania and bulgaria. there are more troops on the ground, but also longer operations. many of the officials i speak with say the war in ukraine has already changed the european

defense. jonathon: thank you. richard hearth, the president counselor foreign relations, said this made a situation more difficult and a dangerous situation more dangerous. tom: this was just a colossal gap. i will refer to the experts on this, particularly historians of the presidency. it is not that it was a gaffe, it was in the moment and the sadness of the trip i'll accounts was going so well before this. jonathon: that is the unfortunate aspect of this. the whole trip now is overshadowed by just one line. just one line. lisa: can vladimir putin take this one line and use it to edify, basically saying he has been attacked by the west and they want to take them out of office? that is what people are waiting for. what response could he have?

or will this be wonder -- water under the bridge check do you see more from the russians to want to end this? we will see. jonathon: we are seeing a bit of a stock split. music to your ears? tom: it is really serious. they just screwed up. they will have to take it right down. it is a different story. it is background noise to these markets. these markets are riveting at this moment. jonathon: they want to move in this bond market. this two-year yield is 237, up by almost one percentage point. tom: this was friday? jonathon: keep up. welcome back. lisa: [laughter] jonathon: this is bloomberg.

lisa: president biden is trying to clarify his comments that food needs to be removed from office. he was not calling for a regime change. critics say he was further inflaming tension with russia. u.s. said that revival of a nuclear deal with iran may not have been. orion made -- iran made several requests. the u.s. is reassuring the political cost of reviving the 2015 pact the agreement has limited iran's nuclear capabilities, including on oil exports. shanghai will be locked down into phases. they have a's -- they have a zero-tolerance approach to the virus, like never before.

one company expects to take a $591 million hit. the bank issued about $15 billion more than it had registered. they must repurchase the notes. an announcement at the, after will smith slapped chris rock. chris rock referenced that jada pinkett smith could be in the next g.i. jane movie. will smith later apologized, but not mention rock. global news 24 hours a day, on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in over one hundred 20 countries. i am lisa matteo, this is bloomberg.

pres. biden: we will have a different future, a brighter future, rooted in democracy, of light, dignity, for god sake, this man cannot remain in power. jonathon: the president of the united states over the weekend, those comments were walked backing clarified pretty quickly. futures down about .01% on the bonds market. yields are up a couple of basis points on twos. the lows of march came on the

first trading day of march. they were 125.93 on a two-year yield. look at where we are now. tom: is incredible. i am looking at the best index out there. it is really simple. the press -- the price decline has not been seen since the time of full cover -- poker -- vulcan are -- someone qualified to get perspective on this is the portfolio manager at the global allocation fund. ross, you and i know it is all about yield analysis by pros and the financial media. tell us about price. are you looking at tom price this morning because things are going down? >> good morning we are looking up prices because honestly, in

the day-to-day focus, the understandable focus on the headlines in ukraine, this market has been all about inflation. it has been about the fed, it has been about bond yields. that is probably the factor that is having the biggest impact on market performance. we spoke about this before we started. i am very impressed and quite honestly surprised about how resilient equities have been in the face of this. tom: others have talked about breaking the long-term back of the great moderation, the great disinflation, whatever you want to call it. have we broken the back of the great moderation? >> clearly, if you're talking about inflation, it is hard to argue that we haven't. we have seen inflation not only at 40-year highs, but a very rapid surge of inflation. you know very well that great moderation was all about lower

macro volatility. growths were low but stable. not just for years, but for decades. that did create a very benign backdrop for stocks, for most risky assets in an environment where macro volatility is higher. it is reasonable to assume that financial volatility is going to be higher as well. lisa: when you talk about this prize you've had about equities continuing to hang in there, do you buy the story that it is because the american consumer is still strong? >> i by the story that it is because the u.s. economy is still in pretty decent shape. that, in turn is largely a function of the consumer. inflation is a tax on the consumer. it is going to affect behaviors for lower income consumers. the good news is we came into this in remarkably good shape. we have spoken about this. the labor market is incredibly strong.

the servicing cost for multi-debt lows, savings are up. this all means that even with inflation the way it is, we have seen a stronger household that we might -- then we might have under different circumstances. that is certainly helping. the economy is going to be in decent shape and i think this is what the stock market has proved with resilience. lisa: but we have seen such rapid moves. they are trying to rejigger and understand this new normal that we are in. it is the latest move that you have made? as you take a look at the landscape and data, there seems to be an economy that is changing in real time. >> i think the key word there is rapid, which is exactly the right one to use. what is really concerning for the market is not the level of yields. let's be honest. the 2.5% yield is very much in

negative territory. that itself is not a threat. it is the fact that the fed has had to tighten into an economy that while still strong is decelerating. the big move we have done is reduce risk. thankfully, we have been maintaining that position. we have brought down some of our equity risks and make sure that we are fairly balanced when it comes to the big styles. we don't have a big growth, a big value debt what we are leaning to his quality on the equity side to find strong fundamentals, earnings consistency, and pricing power. jonathon: what about cash? have you raised cash this month? >> we have been raising cash for several months. part of the reason for that is there are not a lot of hedges left. clearly, bonds have not acted as a hedge ring this period of volatility. the dollar, on some days yes, but it has been a less reliable hedge and not particularly convex. if you're in an environment where risk is up and there are

fewer hedges left, the sensible thing to do if you are managing a multi-asset portfolio is to bring that above equity risk. jonathon: thank you, sir. pulling back on risk just a little bit, equities have done pretty well. that is making some people a little bit uncomfortable. tom: i just sent you a chart, which is arguably one of the most famous charts in bloomberg. where we are now, we have not been since faulkner. we have not had a price drawdown of debt since 1981 or 82. before that, maybe 1979. it is a cliche, but on this monday morning, it is original territory. jonathon: this came out of jp morgan early this morning. rates are tending to go against the recession trade. they averaged 200 basis points at a time, versus the current

negative. they go on to conclude with this line. one does intend to have recession with the starting point of outright negative real rates. that is where we are. tom: i would go with that, but let's go to the german two-year yield, which is maybe the global proxy for stability. you have 0.00%. this is something others have talked about for ages. how does europe adjust to a non-it negative yield the same question as to how japan adjusts , as we adjust higher inflation. jonathon: something similar to the federal reserve, something in between. the ecb might do something later this year and the boj is going to do absolutely nothing with interest rates. lisa: even more than absolutely nothing, they're going to come in and by an unlimited amount of 10-year notes. that is the reason this is no longer the haven. this goes back to 2015. jonathon: this is the first time

in seven years. we have a lot to discuss this monday morning. good morning to you all. equity futures unchanged. up a couple basis points on the 10-year. pockets everett are inverting. this is bloomberg. ♪

jonathon: if only he could see the equity market, would you know what is going to have been in the bond market? i doubt it. i don't know what that was. lisa: [laughter] jonathon: last week, the s&p 500 up 1.8%, even with a 33 basis point move in one single week. following a big move of the month so far. let's take a look at the bond market. at one point this morning, you had a three-year, i've-year, seven year yield trending above. this is what things look like at the moment. europe up to about 235. that is about 14 basis points.

the curve has gotten flatter, the spread has gotten tighter. at one point, it was single digits, nine basis points. tom: i'm going to go on rate change here. this is all linked together. you have to wonder how people will adjust. the japanese clearly indicating their almost in an mmt series. jonathon: the bank of japan is going nowhere. it is how quickly the federal reserve will move and now, the destination. where is it? a lot of people think it is going to go a whole lot higher and sooner than we expected a few months ago. tom: to your word quickly, it is advert monday, but you are dead on with the terminal rate. jonathon: when is it restrictive? where is it restrictive? tom: we don't know. i don't have an opinion.

i don't have an informed opinion. jonathon: are you going to give us 20 echo -- give us one? tom: no. jonathon: [laughter] tom: let's move forward. let's do this on berlin and warsaw. judy norman joins us in london. truly a world expert on terrorism and war. you wrote about the south china sea and the pacific rim. here's an article in "the atlantic" this weekend. two marines are having a cup of coffee, talking about the war, not the conflict, the war in ukraine. with all your expertise, how do military people talk about this more? >> i think it reply slowed the conversations we've been hearing from those on the ground, especially in terms of two main things about main -- ukraine has

maintained as much of its independence as it has. one is the arms supplies coming from nato, especially from the u.k. and the u.s., and the antitank and antiaircraft systems that are been coming in. there is an emphasis on the portents of maintaining that aid. ukraine has called for a no-fly zone, but these systems have been very helpful. something else others have witnessed from around the world is the ukrainian people, the sense of motivation and decentralization of the operation, the fact that people are able to adapt very quickly on the ground, able to adapt locally, and are not confined to the same sort of top-down centralized command of the russian military, which is blocking them down the moment. tom: within your ownership of terrorism, and i don't mean to say the killing of officers and military, but the fact that is reported. what does that do to the troops?

what is the study of what that does to russian personnel? >> as we have heard, there has been a very big problem among the troops. that is for all kinds of reasons. first is the length of the campaign. most thought they were moving in for just a couple days. most were told they would be greeted as liberators, which they were not. also, this targeting of leadership, at least seven or eight generals have been killed. one allegedly even by his own troops, attacked by them after a mission that went awry. there are a lot of reports that i personally cannot verify. but the sense of the morale from the russian soldiers in some units is indeed quite low right now. again, i think that is one reason why we see the kremlin reassessing and recalibrating right now, possibly having more focused approach in the east. lisa: is there also a change in

strategy coming from the ukrainian side? we've heard about some of the negotiating points, for example a neutral status, and discussing some of the claims that russia has said. do you think that is significant? >> indeed. this week, there is a new round of face-to-face negotiations, three days in fact, in turkey. president zelenskyy indicated over the weekend two important things. one is stating that he would be open to ukraine moving toward a neutral condition, renouncing their bid to join nato, looking for other kinds of security guarantees from the west, but really crucially opting possibly for the neutral position. the other indication, which might be even trickier is president zelenskyy willing to negotiate on the eastern region. that territory in question is going to be the hardest part for him right now. he is going to these negotiations very committed to

territorial -- we actually had to see these movements for these negotiations to show anything. lisa: they're talking about how possibly there is going to be a demilitarized zone, something akin to what we see between north korea and south korea in that donbass region. do you see that as a likely outcome, a best case outcome, for this to get some sort of resolution in the short term? >> they're all kinds of options on the table and that is certainly one. again, the first thing we'll be having some sort of cease-fire. then, some kind of withdrawal from -- with russian troops. what is likely the short-term is that russia is going to try to occupy as much of that region as possible and how that -- and have that occupation be a defective situation for the short-term, but the negotiations will be ongoing. i think long-term, ukraine will be pushing for a referendum in those areas. that will simply be on a

district based model, rather the whole region, to get some parts of the donbas focused, but large populations within that region. i'm sure we will hear referendum down the line. tom: a referendum of the entire nation is part of the negotiations or a referendum next crimea and select the parts of the donbass region and northeastern border with russia? >> you're talking about both, tom. i think we will most likely see a referendum on the donbass region in the areas there. but president zelenskyy himself is calling for referendum for the people of ukraine to accept this idea of neutrality, so that would be a nationwide one. again, all of this is very much a luminary negotiations right now. tom: to your wheelhouse, julie, the images we have seen, particularly mariupol and the black sea, i believe it is terror, but you are the pro. is it terror or is it just war?

>> that's a great question and one i would post to my students. this is the kind of tactic we have seen russia used in the past, really squeezing civilians. in that sense, it is what i would see as a tactic of war that is targeting civilians, trying to inflict as much pain as possible, pressure to get the response that you want, which for many does fall into the category of terrorism. i would say we've heard a lot about war crimes. technically, under international military law, the targeting of civilians is a violation of the geneva -- the geneva convention. it gets a little more tricky, but it is fear that civilians are suffering immensely, especially mariupol and those areas that are being targeted with siege tactics. lisa: before lego, it will be great if you could way impaired we heard from president biden over the weekend, whether it was a gas or a message, or has

staying power. how significant is that that president biden was perceived to call for the removal of vladimir putin and then attempted to be walked back, but it still left a stain? >> it was very notable. this is a moment when the u.s.-nato allies are trying to de-escalate, trying to keep the diplomatic and negotiated paths open. biden's really did escalate, beyond his formal words -- former words of war criminal and whatnot. we don't know when putin will feel threatened, pushed back in a corner, and you don't want to give him further reason to lash out or to feel desperate and take measures in that regard. with that said, i think biden's statements are probably expecting a sense that many in the u.s., this diplomacy, you cannot invoke a policy of regime change. it is not something the u.s. is

pushing for, not something biden personally should be pushing for, and it now complicates battlefield, negotiations, and long-term relations between the u.s. and russia. we will probably see some kind of backlash on diplomats in russia and that makes everything much more complicated in this very crucial moment we are in. jonathon: julie norman, thank you so much. coming into the wicked, the one that stood out for me and you touched on it briefly, this cloak -- this quote, "we will focus on the complete release of the donbass region." >> perhaps something in russia wanted to de-escalate and the west is the one adding to this escalation. some people would argue, was it not vladimir putin who escalated start with, given the fact that he invaded ukraine? the issue is, and the western allies agree, no one wants world war iii. one wants to see a nuclear

altercation or something that is escalated. if you have someone backed into a corner, how do you extract some sort of reasonable exit? jonathon: just have to be very careful about those positions you laid out. the russian military said they were not invading. they did. they said they weren't building troops up, they did. they said they wouldn't take the troops back, they called them up tomorrow. it is not exactly something we can trust. tom: these are delicate, delicate issues. we are all getting used to this strange world war. how long has it been since we have really seen this in the western world jonathon: couldn't agree more. for our audience worldwide, on the radio and seen on tv, this is bloomberg. lisa: keeping up-to-date with the news from around the world.

negotiations between ukraine and russia begin this week in turkey. they are still pushing for a cease-fire. they're expecting civilians to keep fleeing the devastated city of mariupol. humanitarian exits will be open in the northeastern portion of the country. president biden will call for what he calls the billionaire minimum income tax. it will be worth more than $100 million. lawmakers have complained that the tax code does little to tax the richest americans. in china, the recovery of the second black box from the china eastern crash gives investigators their best chance to find out why the boeing 737 fell out of the sky. it has been sent to beijing for analysis. officials say some parts of the device are severely damaged. tesla is higher in premarket trading's. they will vote at this year's annual meeting to authorize additional shares.

it could make a stock split possible. tesla has been trading at over $1000 per share. ending cigarette sales in some u.s. stores. according to "the wall street journal," the move comes after years of debate with the leadership ranks. a spokeswoman would not say how may locations will keep selling cigarettes. she told us walmart is not holding all tobacco sales. global news 24 hours a day, on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in over 120 countries. i am lisa matteo. this is bloomberg. ♪

>> worried about real income growth coming off the markets.

have already want to push this right now porphyry find out that you have already done too much and it is already too late? >> morning. here's the press section features of the s&p 500. on the 10-year treasury, a whole lot more than the two-year. up to 48.99, reaching 250. reached one to five overnight. we have had a 7.8% move this month alone. tom: taking up standard deviations from the bottom, i believe it was march 4, it was a 4.5 standard deviation move from negative to. that is a big, big move. to provide perspective, our chief asia economics correspondent. i would say that suddenly is

japan, but we know it has been a zombie economy. nominal gdp now is right where it was in the summer of 1994. they have gone nowhere. how do they escape this time that the global regime is higher rates and lower debt prices? >> it has been a while making headlines like this. i think what a lot of people today are saying is that it just goes to show the fed impact on the rest of the world, certainly in asia. pan is really diverging. we saw a lot of action in the bond market today, the bank of japan coming in with unlimited buying of 10-years. jonathon: a bit of a connection problem. carry on. tom: let me continue on. there was a wonderful essay that goes right to the heart of the matter, which is that

manufacturing capability in their goods inflation is tangible. it is not a comfortable disinflation or outright deflation. toyota and nissan have the same inflation that b&w has in germany. how do they pull that off? >> member japan's supply chain is both regionalized and globalized. they won't necessarily benefit from the cheaper u.n.. i think something term member, japan is importing the worst climate inflation in the world. we know the boj has been wanting inflation to get up, but this is not the style of inflation they going to be importing. this is why the bank of japan is saying they are looking through whatever price pressures do come in, because that is not what they're trying to achieve it is all about trying to get consumer spending and wages backup, and inflation becker was. on the surface, you could say the dividends for japan are the

weaker currency. i think a lot of people say doesn't change the game for the bank of japan and it's not really the kind of inflation that is wanted at the moment. lisa: meanwhile, japan is not exactly the center of the global economy the way it was 20 years ago or 30 years ago. china, however, is. we're looking at lockdowns and shanghai as they try to test everybody systematically to try to get ahead of the covid outbreak. how much will this crimp the economic output this year? >> is built like what they were talking about in hong kong a few weeks ago. they're basically cordoning off different parts of the city to see if they can slow down the spread it is going to be a big hit. it is the biggest hit economically. the biggest impact is on consumer sentiment. if they are locking down a city like shanghai, what does that say about the spread and the rest of the country? secondly, reinforcing china is

not giving up on its covid zero approach just yet. they want to keep it under control ahead of the in the year. there is a lockdown a few weeks ago. similarly, with to keep an eye on the ports. shanghai is the world's biggest port. is there going to be spillover there? will there be spillover on the production side of it? there is a view that china is trying to shovel off the economy and the way they did with the winter olympics and try to minimize the supply-side destruction. but given omicron, that is obviously going to be a tough task. it all chalks up to head try to keep things under control and pressure on them to hit that 5.5% growth. lisa: this is a delicate question. i know you're in hong kong.

there are reports of traders sleeping at their desks, bringing in sleeping bags as they prepare for some sort of lockdown there. how much have you seen this shift out of hong kong to perhaps singapore or other asian regions, in order to get ahead of the increasing lockdown mixed with the increasing control the mainland? >> there is a shift, certainly in hong kong on the personal level. people are leaving hong kong for work. if they work for international banks, they are leaving. we know a lot of companies that are leaving hong kong. some are going directly to the mainland, but singapore is definitely benefiting as well. the capital flow story, hong kong has built up the core basis model. this is a moneybox for china. this is where they come to trade and buyer stocks and some of them. hong kong is still playing a key role in that. to your point, there is

absolutely an exit is a personnel. there is a departure both companies and banking services going with that. a lot of people, including chambers of commerce or warning that it is only going to get worse because of the covid zero policy. jonathon: just quickly, like in europe, we throw out the term walked down, but it is lockdown-like. what are these lockdowns like? >> lockdown has become shorthand for whole range of things. hong kong, for example, we are under quite severe restrictions at the moment and have been from any months. but on paper, you might not call a lockdown because we are allowed to leave our apartments. shanghai, they are not allowed to leave their apartments. as for astringent lockdown, i think the benchmark we should look to is wuhan, or they're

seeing a lot of problems. they're saying we are not yet on that scale. what we are seeing is arise across china, be it city or regional lockdowns, or quite severe restrictions on mobility. you can slice it anyway you want, but it is disruptive and weighing on consumer sentiment. it is dragging on the broader economy. that is as true here in hong kong as it is across china as well. we can split the difference, but the restrictions of trying to control virus remain quite aggressive. jonathon: always good to catch up. do you think that is a crude move? crude is down four percentage points. lisa: that's what a lot of people are speculating. it may be cools this global demand. growth is hampered with ongoing shutdowns. people staying home, it is going to have a material impact on local trade and demand. jonathon: tomorrow lisa's words, crude is down for all the wrong reasons perhaps this morning.

tom: that is well said. i think it is very important. i'm looking at diesel, as a mentioned on friday. jonathon: 115 .86 on crete. much more to come on the bond market, as we get more curve inversion. this is bloomberg. ♪

if you're a small business, there are lots of choices when it comes to your internet and technology needs. but when you choose comcast business internet, you choose the largest, fastest reliable network. you choose advanced security for total peace of mind. and you choose fiber solutions with speeds up to 10 gigs to the most small businesses. that's virtually everywhere we serve. the choice is clear:

make your business future ready with the network from the most innovative company. comcast business. powering possibilities™.

>> the markets are challenging the fed, how much do you want to push this right now? >> if inflation runs away from the fed even more than it is now, we are all a lot worse off. >> high inflation has generally been neutral because it is passed on. >> there's a huge question over how the household sector response to the surge in food and energy prices. >> the fed can bring down inflation without harming growth or the labor market, but it is admittedly narrow. >> this is "bloomberg surveillance" with tom keene, jonathan ferro, and lisa abramowicz. jonathan: from new york city, 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. futures on the s&p slightly positive. the headlines are in the treasury market. tom: what this is about is the