>> the fed right now sets the stage for the financial markets and for the economy. >> because of the economy, we are beginning to see some slowing. >> it's a rare occurrence that it does happen. >> there is a lot priced in here. risk on risk off does not exist anymore. >> this is bloomberg surveillance. jonathan: what a week we've got coming up from new york city this morning, good morning, this is bloomberg surveillance live on tv and radio. futures are turning a little bit lower, big one tomorrow, the fed and payrolls. tom: as we were told, people are screaming about a fully employable america.

we heard about the employment dynamic playing second fiddle. i keep my radar up on that. jonathan: so many people think the decision tomorrow is straightforward, hike interest rates, we are looking for something more complex down the road. tom: i was sent the guest list for tomorrow, the fed meeting. it's just lights out what we will see tomorrow on the fed show. jonathan: we've got a great lineup is well with big move on interest rates on the balance sheet over the next 18 months. lisa: some of the out lawyers -- outliers at deutsche bank are calling for five or 6% of

overnight rates to curtail inflation. i'm curious to see where the balance of risk lies how jay powell perceives this. we will see if they adjusted their forward-looking projections. how can they surprise the market that's make them a lot in the near term? jonathan: deutsche bank says hard landing. can they avoid that at the federal reserve. lisa: it has to do with the question of how ugly inflation comes through. sit yesterday talked about how this is the key question for the fed. does inflation come down rapidly year-over-year and if it doesn't, it will be harder for them to avoid that hard landing. jonathan: we've got to rattle through was happening in the bond market and talk about the federal reserve and we got to go down to washington, d.c. and talking about something usually converse -- controversial

breaking from politico overnight . tom: we will focus on the machinery of the supreme court as they stagger forward as everyone says this is an historic moment in the court with a draft of a february document. this is truly unprecedented whether you talk to the right or the left. jonathan: they talk about rejecting abortion rights and what's more unprecedented and is the leak or the source of the leak? lisa: you have a bifurcated media and there has been a lot written that is polarizing topics that divides the nation. the liberals are focusing on the actual content of the decision and the conservatives are focusing on the on president nature of the leak. people on the left are saying this is overturning a basic

right at a time when many other countries are moving in the opposite traction. in the opposite direction. jonathan: we will head to washington, d.c. in a few minutes time. the nasdaq 100 is also down 4/-10 1%. crude is softer as well. euro dollar is just about holding on to 105 again. lisa: they're trying to make sure it stays at that level. we are watching the fomc meeting in the move in the market are just amazing step real yields, benchmark rates in the united states are at the highest levels going back to the height of the pandemic, above zero once again and the pace of the move has been dramatic.

people are seeing the fed as concerned about inflation and trying to get ahead of it with front loading those rate hikes. the two year yield is reaching highs not last seen until 2018. how does the fed sikkim to the market how to respond going forward? the goal is not to move anything but they don't want to calm the markets. you want that financial restriction to engage some sort of cooling of the inflation. we will get a sense of how hot the labor market is at 10:00 a.m. expected to remain the highest -- near the highest levels in history showing that perhaps the unemployment rate is below the official level in the representation of how tight the labor market really is. ministers of the european union are meeting in brussels to discuss how to respond to the demands of russia to pay for oil and gas in rubles. how do they deal with potential bans on energy products.

incredible profits are being shown by bp. it sort of highlights the boom from the oil and gas prices that have risen so much to russia and how europe grapples with that. jonathan: thank you. they are delivering profits we haven't seen in a decade or so. tom: translate this for people, british petroleum which is always been the most interesting company and they come out and three seconds later in london, we need a windfall profit. jonathan: trying to hide behind the right down but making a profit. tom: let's not waste time, this is so important. jonathan: bfa global research, let's get the bank of america you, it will be hard for the fed

to out talk the market tomorrow. >> think the market is pricing 200 basis points of rate hikes over the next four meetings around 55 or 57 basis points. we think that the fed will deliver 50 and be nominal on the rate guidance thereafter and do qe. what are the odds of 75? we think jay powell will not fan the flames. we will state data-dependent and go meeting by meeting stop a similar message to what he has delivered. that may end up looking a little dovish or neutral. jonathan: where is the consensus at the fed and where is the division and how will the chairman navigate the division in the news conference? >> it's been uncertain. the fed doesn't know how the

world will evolve. they don't know how the inflation outlook will evolve. the consensus agrees the fed needs to ask for a nominal neutral rate which they believe is 2.5-3% by the end of the year but there is a wide range of views where they go from there. someone is be much higher well others are less certain the fed needs to be outright restrictive. over the near term, we think three in the market is pricing closer to four but after that, it will be data-dependent and we think the fed would like to provide forward guidance but they are still uncertain at this point. lisa: jay powell will give his press conference and answer sessions and then he will walk off and checked the markets and get a sense of what the reaction was to what he said step what will he most be pleased by? if the markets are calm, will that be a positive result?

>> i think so, the fed wants to stop being a source of volatility. over the last three rate cycles, we have seen it go down but this cycle is different step volatility has gone up. markets are swinging around little bit more now. the fed doesn't typically like to shock or surprise the market. they like to have their intentions well known in advance. we think that's ultimately what they will try to achieve here is the move closer to neutral. a calm market or limited market reaction probably be seen as a win for jay powell. lisa: if keeping, time went people are saying they need to shock the market that is enabling the inflation to remain as high as it is? >> i don't think they believe we

need to shock and surprise the market. they need -- they know they need to taken financial conditions and that's already been accepted. do they necessarily need to be swinging around the market and create uncertainty? that's probably a step too far for them. if they want to surprise, they will keep going 50 and not stop by the end of the year but i don't think the fed is committed to that yet but i don't think they want to create a bunch of volatility in this already very uncertain market stop jonathan: awesome as always. i cannot get beyond the summer, it so difficult to get beyond the summer. how does cpi come down in the next several months. does it persist of the high alert dish at a higher level and does the fed have to go higher? the back half of this year is so

uncertain because we are waiting to see if the supply-side heels and given what's happening in china at the moment, good luck. tom: i went back to a paper from 25 years go. a giant out of carnegie mellon and he says is the isl framework dead? what is the theory of the meeting tomorrow? there is no theory. there is no theory to this. jonathan: marvin lowe is coming up in the next hour, futures are down 4/10 on the s&p 500 and the nasdaq. as bloomberg. ♪

ritika: news from around the world, there is a report the u.s. supreme court is going to overturn roe v. wade protecting the constitutional right to abortion that profit demonstrators to head to the court monday night. it's being circulated inside the court. it appears to have been written by justice samuel alito. they should rule on the case by july. boris johnson will invoke wartime rules when he addresses the ukraine parliament. he will echo the words of winston churchill saying this is ukraine's finest hour but there is a new military aid package for the ukrainians from britain. payments unto bonds are trickling to investors after the country dipped into his local holdings.

their custodian banks have been in trouble. ken convinces the fed can ease of monetary easing if inflation drops by years and. that's if inflation stays near 8.5% and then the fed will have to hit the brakes pretty hard. the fed is expected to raise rates this week. this is bloomberg. ♪

>> there will be an interesting grade and central banks have an interesting path to gay dish to go to deal with inflation. net rates will go up. jonathan: from new york city, this is bloomberg surveillance in your equity market is slightly lower. yields are coming in at 296 after having a little look at 2%.

the currency pair on the day is unchanged. tom: stay with us through friday because it will be really event will. we continue our discussion on what politico brought last night which has riveted america. job matthew provides leadership on this and that will drive forward the conversation. let's go back to fester know what feldman. it lays out the modern supreme court back 200 years. this drives for the left and right and center in a wonderful moment in charlottesville, virginia. this is the times were order who is now teaching at yale and uva. linda greenhouse. there is no suite justice and a lot of people are not used to they're not being swing justice

so they are looking for one and they thought they found one in brett kavanaugh or chief justice roberts. we don't have a sandra day o'connor or and anthony kennedy was vote was actually in play on important things. i would add where is the middle ground at the supreme court? >> it's true to point this out but is chief justice roberts not the swing? he is in fact not counted in this draft so we don't know how he would vote on this. it speaks to the striking and widening cultural gap in this country, we have known for years that america was split down the middle lyrically but the gap is getting wider. you see states enact abortion fans and there is quite a number of them now, six so far this

year and states are driving in the opposite direction step connecticut is widening the pool and they have a bill that would expand the pool of people that can perform abortions. california are making the state a refuge for women seeking abortions from other states. how this ends is impossible to predict but we are watching a nation drive two separate directions. tom: i know lisa had a bunch of questions. the issue here is the february draft and we are 67 days on. do you assume in your experience that it has already been amended as we speak but they cannot talk about any amendments? >> entirely possible as these are typically changing significantly by the time we see ruling.

this may not reflect where the court is on this. what's such a massive issue but it's true that votes can still change and we could wait until july to get a final ruling on this. lisa: there is a legal aspect on this and from a market perspective, it's an interesting political question especially heading into the midterm election. how does this change the nature of campaigning with a long runway ahead of the elections that was such a polarizing issue? >> the campaigns will be listening closely to voters. this is a primary day in ohio and indiana. it will be a general election issue because most candidates within their respective primaries are probably going to agree on this. to think that these elections could be decided by culture wars is remarkable in a year we have a war in ukraine, historic inflation and huge concerns

about the recovery from covid. those have largely been the issues driving this course but it's about disney versus florida and gender rights and political -- in critical race theory and you add abortion as the third real in politics and this is turning into a very different campaign cycle then it appeared to be at the beginning of the year. it is absolutely going to increase turnout for democrats. there is no doubt about that stuff this will get people motivated whether it changes their votes we will wait and see but it will ring people to the polls and bring people to washington, d.c. there will be a march of this town the likes of which we may have never seen. lisa: which of the races are bellwethers of the dynamic you are talking about? >> its many of the same races we would have already been watching, pennsylvania, georgia,

ohio is one of them, arizona, new hampshire. these are the states that will likely decide control of the senate and how it will affect races down ballot could be the story like been tory races -- like gubernatorial races. state lawmakers will have more to talk about because they -- if this goes forward as it appears to be, it will be the states once again deciding how to regulate or whether to prohibit abortion and those elections will speak with -- will speak directly to those decisions. jonathan: how important could the ohio election be going forward? >> a lot of folks are framing this as a test of donald trump's kingmaker status. there is a close challenger and donald trump screwed up the name of jd vance saturday night so

there is some confusion as to who is closer to trump and who he wants. matt nolan is the one candidate who has kept a distance from trump and has not suggested that donald trump won the election. it will be interesting to see if these front runners cancel each other out. jonathan: joe mathieu in washington, looking forward to the show a little later, do not miss that. tom: politically in this nation, particularly for a global audience, everything changed last night stop jonathan: how much has changed? tom: a huge deal, it goes back and error theme had bloomberg is to stay out of the political debate on but we will cover both sides of this debate and both sides are evident.

jonathan: people assume you have picked a side because you haven't picked there is. we've got a great legal team at bloomberg opinion to give us perspective. jonathan: futures are negative 4/10 of 1%, from new york this morning, good morning. ♪

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jonathan: nice finish going into the closing yesterday's session. back this morning by about 0.3%. jp morgan versus morgan stanley. morgan stanley, mike wilson on the team think the bear market is implement cleat -- is incomplete. jp morgan thinks we are being too negative on equities and rates as well. that's the equity market. morgan stanley had a really interesting view on the yield curve. they think you should keep a bias towards flat and there's. they think the -- towards flatteners. the think the long end remains range bound to get think china. that would make sense coming into last month, but the nields

broke out again, and it broke out a little bit through 3% for the first time since 2018. we pull back a little bit. the curve is flatter by a basis point, the tenure lower. want to talk about europe because in germany we broke out on the 10-year gilts through 1% for the first time -- the 10 year yield through 1% for the first time since 2015. why is that interesting? because what we had from the ecb in 2015 was the start of sovereign debt in the asset purchase program. tom keene, this time the euro is weaker as they are unwinding qe, not building it out. that is why the relationship between yields and the euro in europe it's more interesting. tom: have we seen any research that cuts below parity? jonathan: i have not seen at the same way we did 5, 7 years ago. 1.03 was the low.

we've had a look at 1.04, but back then, weaker euro was an objective. now yields are breaking out, but the euro is not coming along for the ride. we've got to be very focused on what is happened there. lisa: how much can the fed get ahead of what is happened with the euro? how much do they respond to it if they tighten? what does that actually due to a euro responding most of all to growth? jonathan: that is the cross asset price action. let's catch up just morning with kailey leinz. kailey: a lot of earnings are still rolling out this morning, including from pfizer. the outlook on revenue overall coming in a little light. paxlovid in a trial announced they did not prove effective at preventing covid-19. that stock is down about 0.7%. biogen moving lower more than 1% at this point. not so much about the results they reported, but the other news, including that they are going to substantially unwind

the infrastructure for its alzheimer's drug. it is also looking for a new ceo. finally, estee lauder down 9.6%. big cut to their earnings guidance. the company blaming headwinds from china and the covid-19 lockdowns there, as well as the war in ukraine. you also have a number of stocks moving on the back of endless downgrades, what of the being catalog -- be in kellogg. piper sandler cutting this company. that stock is down 2%. docusign down for percent after a downgrade over at wedbush. dan ives saying this is one of the areas of the tech space that will have more pain. carvana down the better part of 5% after getting cut at wells fargo to equal weight. this stock down 83% since its peak last august. tom: carvana, come on. help me with this. it operates an online platform? lisa: for cars.

very --kailey: for cars. very popular during the pandemic, but a story that has changed dramatically as the world emerges from the height of covid-19. tom: it is a font of free cash flow. let us not forget, kailey leinz, "crypto," is this today? kailey: it is, what a clock p.m. eastern on bloomberg tv. thanks for the plug. jonathan: why do you seem so confused by this? tom: i'm not so confused. i cancel the "surveillance" nap to watch "crypto." jonathan: is matt back today? kailey: he is not, kriti gupta will be in the hot seat. jonathan: you've got friends. kailey: lots of friends. [laughter] jonathan: lots of friends. tom: lara rhame joins us of at

have -- of fs investments area this weekend, lara rhame goes back to her true foreign-exchange this weekend. you do what i scream about .47. you can't -- about 24/7. you have to triangulate. how do you triangulate dollar right now? lara: you triangulate versus some of the organic moves going on, versus the majors in europe, where we are just clearly not going to get the growth expectations. i think there is still a lot of expectation that the european central bankers are not going to be able to be as aggressive as they want to. but then you need to triangulate it against other dollar strength. for example, against the renminbi, where there is clearly a strong political element to the fact that the chinese are we getting the yuan as almost an emergency stop cap because their economy is slammed to a halt.

they've only gone for percent so far, but i think the question we should all be asking ourselves right now is not will the dollar get stronger, but when will it become a political problem. when will it become a political hot potato? tom: which levels of that are important within your remit? which levels of dominant euro and dominant yen are important? may i suggest for conversation a 1.03 euro, or do you have different levels in your head? lara: to me it is about the level, but it is about the speed . when you see especially against china these big gaps, that could go much further, and given the fact that we just had this love out trade deficit in the first quarter, does trade really enter the political discourse again enforce as we enter the

midterms? i think the level we look at, clearly 1.03 is going to be important given the historic floor, but to me, this move recently has been about the speed because the dollar is playing catch-up really fast. lisa: i'm glad you are focusing on the dollar because perhaps there has not been enough talked about with respect to this, given the fact that everyone is hiking rates, people are talking about the jobs momentum, etc. how concerning is it to the fed to see the dollar strengthening not only to this level, but at this pace, given the fact that frankly, not only does it deal with trade, but it also creates a lot of disruptions globally in developed markets in particular and slows the global growth trajectory that much more? lara: i think right now the dollar that is strengthening really acts upon the economy like higher interest rates. so right now it is reinforcing the direction that the fed is going in, and clearly, given that they are frontloading their rate hikes, we are going to get that 50 basis point rate hike

tomorrow, probably another one in june, they are trying to really tighten conditions fast in the first half of the year. i had the second half of the year it gets more precarious. at the end of the day, we also have to think of the connection this gives us to equity markets. companies with foreign revenue exposure are underperforming now meaningfully over the last two months companies that are more domestic a focus. that is one more thing hitting these international large caps. lisa: we saw that with coca-cola and pepsi in particular, talking about the losses they took as a result of the strengthening in the dollar, although that is always a bit of a red herring to possibly mask other weaknesses in the earnings season. going forward, what is your level of concern about how much globally slowing economy can really impact the u.s., when so far there has been a feeling that china and europe has a marginal effect, but a major one

in slowing the u.s.? lara: this is always the paradox because the fed is unique amongst central banks and almost entirely focusing on the u.s., so i think for their trajectory the first half of the year, this does not really change very much. but i think the second half of the year, it makes it more difficult for them to meet the bogey that the futures curve has set for them. we are just getting this shift in demand dynamics within the u.s. economy, and all of a sudden new look across the globe , global forecasts for growth are being revised down. region by region, country by country. of course that impacts things on the margin, and our trade deficit is so large now, it is blown out so much, as we restock inventories, how much of that is going to come to mystically and how much is going to be imported? you may get gdp numbers that do not reflect the robust level of

the on employment rate, of other factors, and the fed, it gets more difficult for them to sell these rate hikes, especially if inflation is moderating. jonathan: lara rhame, good to hear from you. on that last point, i think that is the dilemma for this federal reserve into this meeting and this news conference. it is going to be difficult to out-hawk the market. you don't want a loosening of financial conditions given what inflation will look like for the next couple of months. lisa: it is such an important point that they want to keep things steady. they do not want to do too much in either direction. what if they don't perform with enough aggression, that will be underperforming market expectations. so how do they achieve that at a time when there is such a polarized view on washington -- on wall street, with respect to how far and fast the fed has to go? jonathan: the blessing this week

is they don't have to make forecasts. there's no dot plot. they get a few more inflation brents -- inflation prints, we keep going through the calendar, and then they get a meeting on june 15 when they can put out the forecast, reassess how inflation has come down. we expect it to over the last few months. tom: you just described data dependency. they will reassess. the only debate here is the ex- postedness -- i just invented that. jonathan: it works, tom. we will see what ken rogoff thinks of that a little later on . futures down about 0.3% on the s&p. on the nasdaq, -0.3% also. this is bloomberg. ritika: keeping you up to date

with news from around the world, with the first word, i'm ritika gupta. there's a report that the u.s. supreme court is on the verge of overturning the roe v. wade ruling that legalized abortion. that punted protesters to turn out at the court monday night. politico says it obtained a draft majority opinion from justice samuel alito. alito writes, "roe was egregiously wrong from the start." the bank is expected this week to raise interest rates to their highest level in 13 years. it may also clarify how it plans to sell some of its 1.1 trillion dollars in government bond holdings. that would take the u.k. central bank into uncharted territory. none of its major economy peers have yet sold government bonds accumulated under quantitative easing since 2008. it is the largest move by wall street's main regulator to crackdown on digital tokens that may break the rules. the sec is adding 20 more

officials to a team dedicated to policing crypto markets. sec chair gary gensler has said he considers many digital assets to be securities and subject to his agency's rules. a bipartisan group of u.s. senators wants to loosen google's grip on the digital market. bloomberg has learned they plan to introduce eagle's asian that would force google to sell off parts of its lucrative advertising technology business. the measure could also have implications for amazon and facebook parent meta platforms. 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 ridiculed -- i'm riddick a this is bloomberg -- i'm ritika gupta. this is bloomberg. ♪

>> after two months of work, i can say that germany is not

against an oil ban on russia. of course it is a heavy load to bear, but we are ready to do it. jonathan: the german economy minister. futures -0.2% on the s&p. the nasdaq 100 down 0.25 percent. yields come down a couple of basis points on the two-year. i got to say, to hear the german economy minister talk about a heavy load to bear, we've had to compare and contrast between what greece went through in the euro zone debt crisis. i'm not sure you can compare banning russian crude as a heavy load to bear given what some of the southern european countries have been through over the last 10 plus years. tom: you are more wired into this, but is it clumsy? jonathan: it is more than clumsy. it is totally out of touch. i'm surprised that the greeks and the italians, the spanish, the portuguese, the irish haven't pushed back in a bigger way against some of this. i know we got to keep unity in a moment like this one, but i've

been surprised. tom: we will see. kriti gupta on with an important chart on america domestic gasoline use. kriti: as we talk about the fomc tomorrow, just how much the american consumer can withstand in terms of inflation, but also in terms of the fed policy. we've got to talk about energy specifically. higher gas prices when we are looking at national gas prices, but how much of that spending is made up of disposable income? this is a really interesting chart. going back to the 1970's, the average consumer at the peak of that high-energy inflation spent about 6% as of and percent of their income on energy. that number is now 3%. that is even lower than what we saw in the early to thousands, which was upwards of 4%. this is really important. as we talk about higher energy prices and how much specifically the lower income is spending on those gas prices come put this into some context. we are making comparisons to the

1970's or even the 2000s, we've got to put this in perspective and say energy spending is actually at its lowest going back to at least the 1970's. tom: thank you so much. greatly appreciate that this morning. those of a certain vintage, jon ferro may room ember this, was 40 years ago tomorrow. we're going to be distracted by the fed tomorrow. but it was 40 years ago tomorrow that our modern invincibility of war was taken away by a missile in the falkland islands. it was the hms sheffield, which speaks to the modern moment of the muskva in the black sea a number of days ago. maria tadeo joins us this morning. i will never forget the sobering moment 40 years ago tomorrow of the sheffield sinking.

just absolutely extraordinary. help us with the next unexpected in ukraine. what are you studying? maria: first of all, i think there's a lot of nervousness around that three-day parade. for vladimir putin, we talk about how he needs to show something to his people and needs a clear victory somewhere, perhaps in eastern europe, the donbass and crimea. but i think it goes beyond that. this could really be a moment when vladimir putin speaks to the russian people and says at this point it is not just a special military operation, this is full on war with ukraine, but also the west. tom: i don't mean to interrupt, but come on. are they listening to him? maria: do they listen to vladimir putin? many do seem to support him. i think that is the biggest question we don't have an answer for in the west. is it russians who are brainwashed, or is it russians who listen to vladimir putin, and feel what he says when he tapped into that very patriotic history that they have of many

russian people that will tell you we have a special pass in the world, russia is a country like no other, and a lot of this has to do with defending that? a lot of russians may believe what is going on in ukraine is not just a strategic fight, but also a fight for the soul of the nation of russia, this idea that ukraine has become corrupted by the west and this is something that should've never happened because ukraine, and in many ways, it's russian. of course, ukrainians tell you the opposite. jonathan: every commodity expert we speak to will say that oil is not the big deal for the europeans, it is gas. so when the german economy minister says things like it is a heavy load to bear and we are ready to do that, does anyone believe that it is actually a heavy load for them to bear? maria: it depends because we talk about gas being that geopolitical weapon. the big favor for germany was to give those contracts to russia.

the german political class is going through this implosion when you look at the german president, who is not welcome in ukraine, when you look at all of the heat the germans are taking in the european union. i would say yes, oil perhaps is not that big a deal compared to gas, but all of this is having victim locations on germany. this is a moneymaker for vladimir putin. it is not gas -- it is not oil. you can't undo 10 years of policy in which angela merkel pursued trade above everything else, and which she made no separation between the politics and the economy. all of this now it, is this something that i put in will resent? jonathan: i know this is an imperfect example. but what is the price? they are talking about a heavy load to bear. are they forecasting the kind of gdp revisions that greece was 10 years ago when they had to meet

massive adjustments to their fiscal stance, massive adjustments in their economy, unemployment absolutely surged to a generation of people who left university and didn't work, couldn't find a job in their country? they are still grappling with the consequent as of that. you get a german politician saying things like it is a heavy load to bear. what is the heavy load? maria: look, you're right. we look at greece, when you look at the impact of austerity, when you look at the fact that it was angela merkel who jumped on a plane and saying the faster you do it, the less it is going to hurt, a lot of those seven europeans will say the same thing. the faster you move away from gas, the less it is going to hurt. what i think at this point, europeans are trying to stay away from that fight. they want to continue with this unanimity. they want to continue with the joint front in russian aggression areas they believe politically is it is important, but you are right, germany does

need to do a lot of soul-searching here. angela merkel could do no wrong for 10 years. she went unquestioned repeatedly. when you look at where germany is now, it is very clear that big mistakes were made and that perhaps germany has to pay a price for it. the issue is that for many germans, they feel they are doing everything that they can, and that mea culpa has not really hit the country yet. jonathan: maria tadeo, thank you. lisa, controversial and some might say out of touch comments from german politicians more recently. lisa: that is a reason why perhaps they have been banned from visiting ukraine, which has been a political popularity recently. i do think about the popular vote in germany. how much support is there for a gas ban, for changing policy now in the face of russia, even if there is this tension that is growing between ukraine and germany? jonathan: will they change their views on the physical path for the whole of europe? this is not about punishing the germans because they punished the greeks. this is about whether they are

willing to learn the lessons of what they did to the greek economy and do something for the whole of europe. talking about a heavy load to bear given what is going on in europe. this is bloomberg. ♪

>> they hope that they can contain inflation without -- business inflation. >> you are going to have sustained high inflation. you want to tilt towards value. >> the concern for china is the effect of a slowing china on global growth long-term. >> the fear of missing out and tina has been replaced by the fear of inflation. >> this is "bloomberg surveillance" with tom keene, jonathan ferro, and lisa abramowicz. tom: good morning, everyone. thank you for joining on