a second repricing lower if we see demand destruction will back. >> we could see prices peaked back up as we move into the third floor -- third quarter. >> i wonder in july whether the fed will have the stomach to do another 50. >> the story here is pretty clear. the fed has been way behind the curve. >> this is "bloomberg surveillance." jonathan: here is the bounce. will it stick? from new york city, good morning, good morning. this is "bloomberg surveillance." alongside tom keene and lisa abramowicz, i'm jonathan ferro. futures of the .8% after the pain of yesterday. tom: the pain of yesterday and 2022, as we mentioned, jon, you are looking for the hope and prayer of bloom to script bloom destruction. jonathan: hsbc not buying it.

they are firmly risk-off. they think it is coming in the next three to six months. tom: i get a bunch of notes yesterday tearing the strategists apart. when the facts change, i change. that is what is going on right now. people are readjusting. i would suggest the first step is to wait for the catharsis, and a lot of people saying we really have not seen the agony yet. jonathan: i have been surprised by how few on the south side have adjusted. lisa abramowicz putting out the note, we stay pro-risk and underweight in bonds and cash. have been wrong over the last 12 months. lisa: can you be surprised? he is sort of a separate category of wall street will end going to come out and reaffirm what angle you are going to take? the story is becoming nuanced, and i think goldman sachs is --

david kostin said basically, even if you do get some avoidance of recession you are still going to get a downside in stocks. that seems to be the main consensus right now. jonathan: i would've expected a may call for -- a mea culpa. week after week after week saying by this, and this has been months now. this has been relentless. lisa: the earnings have been good. the fundamentals still look good. how can they say we are going to change our tune based on belief when nothing has changed? it is a belief that has changed, not necessarily something people are seeing in the data. some people point to winning consumer spending, but if you look at the earnings yes there is some deceleration. jonathan: you sound almost bullish. lisa: it is not bullish, it is the reason why there is so much disagreement in people -- so much disagreement. tom: what is going on here is the hope and prayer of gloom destruction.

forget about demand destruction. we are looking at surveillance gloom destruction. this morning i go, look at the results. i look back 40, 50 years. the drawdown is really not all that bad. if we -- have we had a couple of harsh weeks? yes. sorry, it is not gloom, it is not catharsis. jonathan: don't try to paint me as the gloomy one. tom: johnny, what is profound here is that prince charles is sitting in for the queen, has dimension the market. jonathan: i doubt it, bulimia finish the thought. it is easy for the southside to keep saying we are overweight. the tape is doing the talking for us right now. the s&p is down 16% year-to-date. the nasdaq 100 is down 26% year today. bonds have been battered. people with money in the market are losing out. when i sit here and see the southside keep saying we're still over right -- overweight,

what good is that over the last five months? tom: i'm going to dramatically skew your thought to the bond market. our guest has terrific scope and scale. yield up, price down. the price down in bonds is jaw-dropping. jonathan: the euro does bounce back. on the s&p 100 -- on the nasdaq 100, up. that was the store yesterday for me, this turnaround in yields. lisa, also on the front end. lisa: i was going to say the same thing. that was the story for the first time in a long time. there was a bit of flight to safety to bonds. does that tell you we are at the beginning of capitulation or we are at the next leg downward because people are concerned about that growth? you will be watching that throughout the day. he was when i'm watching,

treasury secretary janet yellen is testifying to congress. this is going to be fascinating, especially head of that presidential speech later this morning. because there has been reports from bloomberg that her staff as well as janet yellen herself has taken issue with the characterizations of being overly rosy from the white house with respect to transitory inflation or how much you could roll over and of the midterm election. today we get a slew of fed speak. loretta mester among them speaking with michael mckee coming up today at 11:00 a.m. others include jon williams, raphael bostic, and fed governor chris wallace. what are they going to say? jon, are we spending too much time talking about the fed when it is kind of out of their hands? it comes down to geopolitical events and not so much what they can say about a 75 point basis

point rate hike or not? we do get those president biden remarks on inflation today after we get gas prices climbing to the highest levels on record according to the latest report. basically this goes to the javier blas point. even if we do get a decline in oil prices it will not necessarily translate to lower gas prices because of the cost of some of the other processing methodologies. jonathan: that is going to be a tough speech. thank you very much. tk, you follow that so closely. the price at the pumps getting harder. tom: jon, diesel, diesel, diesel. this is not something most of our viewers look at, but the diesel leap is factors worse than gasoline. that is a huge deal. jonathan: linda duessel joins us right now. the news on earnings and economy is good. markets don't care. could you build on that for us?

linda: the markets don't care because they are focused on this one thing. the fed is going to raise interest rates, inflation is going to run away, and but what we forget is we are booming. i was there in the 1970's when we had stagflation. you have inflation and people using their jobs. we just had a strong jobs report. no there are twice as many job openings as there are people to fill those jobs. so, yes we think we are going to have a persistent inflation problem versus what we have been accustomed to for 40 years, but now we are seeing some of the baby being thrown out with the bathwater. tom: linda, you have a terrific scope and scale. he had an academic this week framing bonds back to 18.42. you take it back to -- 1942.

how did the 10 year yield now get back to august 1788? linda: that is really cool, because the bond yield around 3% historically is not a high figure. this is something that is confusing to me. start with the fed funds at zero, which was unusually low for a long period of time, and we are having angst about 50 basis point hikes. if we at federated hermes think they're going to reach 3.25, may be the 10 year by this year, that is not a terribly high figure, historically, but it is higher than what we have seen before. so the economy can continue to do quite well, i think, even as interest rates rise. lisa: linda, when will stocks

care about the economy doing so well? linda: firstly think we really have to flush out -- and i am disturbed about what i have been reading, particularly after yesterday's close when we saw big declines in the historical darlings of this market, but also commodities and energy. we are starting to see capitulation out there where i have been reading a lot of wall street people talking about the yes, that is good, but it is 34 in the vix. with the damage that has been done we need much more of a hit than what we have had. but if everybody is saying that, i have to wonder if we are going to get that, and if maybe what we should be doing is looking in our shopping list and buying some things, particularly energy, which if you look back

15 years is still the least expensive on a relative pe basis of any of the sectors. if we get one inkling that they are opening up in china, the second largest economy in the world, then energy prices could start going back up. we are having capitulation in parts of the market as we speak. jonathan: linda, wonderful to catch up with you. linda duessel of federated hermes. energy on the s&p 500, was down yesterday. you take the move in energy, yields lower, lisa, that is what a growth scare looks like. that is what yesterday was. lisa: which challenges the idea that this is rates-driven. that this is something the fed is going to hike into, because especially at the front end, that basically is suggesting you are going to get some capitulation from the fed. i know you saw this as well.

talking about credit spreads, they widened the substantially yesterday. this is what people have been waiting for. are we getting those credit fears starting to build in the faith -- the phase of growth concerns? jonathan: that particular canary is just warming up its vocal cords. tom: we are there. i think it is a real disservice for us to game out what is going to happen next other than, as you mentioned, there is a modest inflation report tomorrow which may adjust perceptions. jonathan: i'm not even going to pretend i have tomorrows prices, because i really do not. futures up .8% on the s&p. nasdaq up by .3%. we will catch up with david stubbs in the next hour. looking forward to that. for our audience worldwide -- it is another beautiful one in new york -- this is bloomberg. ♪ ritika: keeping up-to-date, i'm ritika gupta.

president biden signed into law a measure to make it easier for the u.s. to send weapons and supplies the ukraine. the legislation cut red tape but does not include additional funding. the president has asked congress for $33 billion in aid. sanctions on russian oil will be high on the agenda today when italy's prime minister it's with president biden at the white house. he resolutely asked sanctions, despite his country's reliance on russian energy. he has also backed sending heavy weapons to ukraine, even though large parts of his coalition object. demo the philippines ferdinando marcus junior has brought his family back to power after his dictator father fled the country. with almost all of the returns counted, marcos won about 59% of the vote. his running mate, the daughter of outgoing president rodrigo duterte j. u.s. retail gasoline and detail prices have set a record

average, according to aaa. average gasoline prices have hit $4.33 a gallon. americans are expected to drive more this summer than in 2021, despite those pricier gas prices. it is the most expensive american artwork ever to sell at auction. a silkscreen of marilyn monroe by andy warhol sold for $195 million. the winning bidder was a dealer who buys on behalf of clients who would like to remain anonymous. global news 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. i'm ritika gupta. this is bloomberg. ♪

>> over the last 20 years you notice already pretty aggressive moves. i don't think we need to be moving even more aggressively. i think we can stay at this pace and this cadence and see how the markets evolve. jonathan: going to see mark mckee catch up with raphael bostic. futures bouncing back a little bit, up .8% on the s&p. on the nasdaq we advance by .13%. intraday yesterday through 320, then looking to break through the downside. looking forward. lisa went through this earlier. williams of the new york fed speaking at 7:40 eastern. we will hear from bostick, tk,

there is a lot lined up. who blinks first? tom: this is not a small idea. this is not a small idea to discuss this morning. there is an assumption this cuts both ways. they let it run into some real damage, or as you say, how do they message this? i don't have a good answer, but the radar is up. i think it is going to come from the chairman, or maybe even from secretary yellen with her experience. jonathan: overwhelmingly the consensus is they do not blink. that it is 50 basis points at the mac -- at the next meeting. natural conditions right now doing a lot of heavy lifting. a lot of people push back against this, but we have seen it before. the test of the fed is building already. tom: the test of the fed is a front and center, and with inflation reports tomorrow we

are on top of that for you. right now in washington, joe mathieu joins. thrilled to get him up here in the early morning. i do my research and go to what matters nationally, and that is the great benchmark of the 16 ounce strip steak at burns's steakhouse in tampa, florida, checking in at a new $59. you wonder when that goes to $65 itself. the president is going to address the 16 ounce strip steak at burns, except it is not funny for most of america. they have been priced out of beef. joe: that is true, so you better not overcook that thing. this is speech today, this whole conversation, this is getting to be very difficult. it reminds me of a scene from rocky three, when they ask club or line for his prediction for the fight. mr. t answered with only one word -- pain. that is where we are in the

world. the president knows this. his job is to say he feels your pain, and today we get a preview as the president starts to bear down on inflation. we've been talking about it for nine months or so, but it is not just cataloguing what this administration has done. playing the contrast, playing it against what he calls the ultra maga agenda proposed by rick scott. he is not even the leader of the senate, but this is what the white house has decided to choose as a foil, and he will be up there today. playing these two alternatives together. tom: joe, you are too young to remember this. you were done at happy hour at casino by the sea. some of us lived with inflation now. are we going to get a silly program from this administration? joe: i'm not so sure. i think this is going to be a

contrast play and also a call on congress to start passing programs you and i have been talking about for the better part of year. going to say, prescription drug prices, extended child tax credit, right? a lot of the stuff that was in the back better plan, he's going to say i'm waiting on congress. republicans will tell you it is those very programs that will actually amplify inflation. so this logjam, with six months to voting, is not likely to break any soon. democrats are playing with the idea of an -- of a reconciliation bill but things are different. lisa: there was a story the cop my attention about inflation being so bad democrats want to see the president do more ahead of the midterms. in, it talked about janet yellen and distancing themselves from the white house and what they view as an overly-optimistic view of how much inflation will come down and how quickly. to make of that dissent in the

white house? joe: i'm not sure. i talked with two members of the president's council of economic advisers last week. i know you were going to talk with cecilia rouse this morning. you are talking with heather boucher or jared bernstein, they know what is going on. as part of their job to project a better day that is coming, but i do think there is a sense of reality at the white house it is just difficult as they attempt to knock talked on the economy, it is difficult to get a sense of where we are going. they are still convinced that covid demand, the shift from services to goods, are the primary drivers of inflation, and the like to defer to the rest of the federal reserve. if you are janet yellen you pick your own spot here. lisa: there is also the issue of gas prices and the fact this administration has come under fire for not supporting the fossil fuels industry more and doing an about-face and saying, this is a national security

crisis. is there any shift in the white house on that front or are they going to try to message it as being part of this equation as we transfer to a greener, fossil fuel-verrilli -- fossil fuel-free future. joe: we are going to hear more today when the president speaks. the administration has run into a lot of issues after not making a lot of friends in the oil patch and encouraging them to drill more as a patriotic move. they have been more questions about whether they should have financial incentives to do so, having been felt like they had been demonized by this administration. tom made the comparison to protein as well. as the white house takes a look at this, starts talking about the cost of beef, the cost of protein, chicken, and other fruit, as a side effect of consolidation, pointing out the big four, this is the heavy hand

of the big four meatpackers as opposed to taking another route here, maybe finding new ways to unlock independent processing and relate with people on what is an -- a painful experience at the grocery store. jonathan: joe mathieu, great to catch up with you. the ultra maga plan, tom. the pushback from the president coming. tom: sounds to me like a trial balloon. we are six months to the election. i think the troubling's are going to come fast and furious. jonathan: the putin hike was a trouble in. do you think that has resonated? tom: no. i don't think it has worked either. i should point out a very emotional note this morning on a fragile mr. putin yesterday in moscow. doug was especially sharp this morning. jonathan: we have some price action to work through. yesterday was brutal, today a

bit of a bounce back. up .9% on the s&p. the nasdaq up 1.44%. some interesting moves in the bond market and we will break those down. up about 3% on a 10 year. ♪

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jonathan: live from new york city this morning, good morning. for our audience worldwide, after three days of losses we have a bit of a bounce. will it stick? up .9% on the s&p. if you break down the moves yesterday it is interesting to talk about things that are not just related to tech. let's talk about energy. the big mover of the year was the big loser of yesterday, down by more than a percentage points . tech down about four percentage points. it was a real growth scare to some of the price action, and not just in stocks. i want to look at the yield curve. last wednesday highs of the year, 2.8 five. yields down by more than 10 basis points at the front end yesterday.

i think that tells you something about the distinction we have got to draw between the price action recently -- yields higher, bonds down -- and what we saw in the last 24 hours. a hint that may be the market backed away from the fed a little bit and inflation expectations came down. lisa: that is perhaps why you are getting a bit of a by the dip today. some people were saying when you solve this price action, when he saw bonds respond to this mentality, that might be the sign we are starting to get more of a washout. jonathan: will it carry on, tom? just a few signs. tom: the data is there, and the data dependency is there. you're going to get a dose of that tomorrow, but i would suggest yesterday framed out july 27. july 27 is another day to focus on. jonathan: the next fed meeting after the next fed meeting? tom: they are not going to raise

50 checkup they have to raise 50, they have a plan. then what? jonathan: that is why i am still looking at the fed speak. i'm not sure everyone has fully capitulated on the idea that the fed is not going to step in when things get back. we are about to find out what brings that fed output out of retirement. is it this? look out for the fed speak today. we will keep testing things and find out. tom: we are going to look at the litmus paper. the calibration across -- athanasios fabricators -- athanasios from nikita's -- athanasios vamvakidis is at bank of america. congratulations on the bank of america call. -- i will cut to the chase. now what? athanasios: i think we see even further dollar strength support

for the dollar remains very much so. the fed is the most hawkish out there, dealing with an overheating economy, and they are likely to hike much more than the other central banks. pressures in the u.s. are labor market imbalances. we don't see the same in europe. most of the other economies are dealing with negative supply shocks. in the euro in particular. that is related to the war in ukraine. that slowing of the chinese economy that is affecting much more europe than the u.s., or in the case of japan, where the bank of japan is actually happy to see weakening. or in the case of the bank of england where they are hiking but they are apologizing. tom: i look at the regime change

may be to come and what is not mentioned here is the disparate feel of canada's story and a turkey story. i get it, they have nothing to do with each other, but does this signal currency pairs away from the majors? athanasios: in emerging markets what is interesting is we have seen this strong dollar rally, but the positioning is not adjusted yet. the market is short em, when in the past when we had the dollar at this level positioning in em was much shorter. i think from this point of view -- and this applies for all risk assets have not seen -- which have not seen the capitulation -- what we have seen in the last two or three weeks is a reality check that we are in a new

regime in which inflation is likely at high levels. it is likely to drop from currently high levels, but we do believe inflation in advanced economies will be above 2%, and central banks will keep type policies and most likely they will face a dilemma -- do they keep tightening to bring inflation down to 2%, risking much higher market volatility, or are they going to blink? jonathan: for the ecb on june 9, they have not even started. what you have been successful at is anticipating the -- that what is going on would mean euro weakness. others have suggested this ecb is going to hike interest rates and they are looking for euro strength. were they getting wrong? athanasios: i think the job of the ecb now is incredibly

difficult. we believe they will hike starting in july. broadly this is what markets are pricing. the market is pricing four, maybe we will have less, but i think that even after what markets are pricing, it is still not tight enough, and the ecb cannot actually focus just on inflation, because they are dealing with many supply shocks, and they are also concerned about -- this was the level in 2018 after the italian elections. this is something that should make the ecb concerned. the bottom line is, the ecb cannot be as hawkish, because they are dealing with all of these vulnerabilities. this suggests the euro is likely

to be weak. lisa: it is wonderful what would -- we were talking about bond yields. one reason yields have gone up is it has been so difficult for european and japanese buyers to hedge out some of this uncertainty in the fx market. do you see it becoming more cost-effective to hedge at this uncertainty and bring buyers back in a way that could be supported in the u.s.? athanasios: this we believe is one. volatility is twice as high now as earlier in the year. it is likely the fed's volunteer -- volatility will remain high. there is still tremendous uncertainty. we have no idea what policy will look like in the u.s. and

eurozone in the years to come. all of these are factors that paid a complicated outlook. in such an environment when you have uncertainty, market volatility, but the fed is hawkish, this has to be bullish for the dollar. lisa: what has liquidity been like? we just heard from the fed talking about concerns from the market, liquidity drying up. we have seen such massive swings that we have not seen over the past couple of decades. how easy is it defined a deep market in the deepest markets in the world? athanasios: there is no problem with fx and acquitted a -- and liquidity. i think the fed is trying to find an excuse.

they are concerned about market volatility, so they will focus on inflation, they will try to address any liquidity problems, but we do not see any liquidity problems, at least in the fx market. it is way too early for the fed to blink. they just started. they have to focus on inflation, and for now ignore the fact that the market is waiting, the fact of central bank policy. jonathan: quickly go through your price targets. euro-dollar, 1.05. could you go through those three? what are you looking for? athanasios: the problem we have is the forecast. i would say that the risk is that euro-dollar could go to 1.20.

these are risk scenarios, but if the current momentum continues we will be at these levels in a couple of months. jonathan: you sound like a man who is about to change your price targets. come back soon. [laughter] athanasios vamvakidis, bank of america securities. tom: to explain to our audience, they have rigid rules in their legal department. they cannot tell us what is coming. they cannot get ahead with the media of what they publish in print to their clients. jonathan: but we get a feel for it, tom. tom: i got a feel for it. jonathan: dead on when it comes to the single currencies. just a fantastic call. tom: athanasios has brian on line two. jonathan: don't do it. that euro story, more specifically, caught a lot of people out. lisa: especially as we talk about parity and how much the ecb can actually do. let's say the ecb is more dovish

than what people expect. what is the response in the euro? does the euro lose that much more traction versus the dollar or is that potentially supportive, because that might give a greater runway to the euro region economy because there raising into a shop? jonathan: the problem is it is lose-lose if you back off a for all the wrong reasons, and if you lean in a lot of people start to think about that outcomes. lisa: i think the drivers of inflation are going to be important in terms of where the blinking happens. jonathan: athanasios just said, this fed is not blinking any time soon, in their view. 1% on the s&p. from new york city, this is "bloomberg surveillance." ♪ ritika: keeping you up-to-date with news from around the world, i'm ritika gupta. president biden says vladimir putin believed he could break up

nato and the european union with the war in ukraine. he told a fundraising event now he worries putin does not have a way out of the war. president called the russian leader "a very, very calculating man." president biden will highlight his efforts to curb inflation today. comes a time when soaring prices threaten democrats' edge chance of holding onto congress. the president will draw a contrast with a republican proposal. china is tightening pandemic restrictions in shanghai and expanding a mass testing suite in beijing. more people are being shipped off to isolation centers under a new definition of what it means to be a close contact. the country avoided a little more than 3400 -- reported a little more than 3400 infections. below that 30,000 -- $30,000

threshold as the world largest digital coin was down 55% from its november high. michael monographs expects to -- expects things to get worse before they get better. global banks are pulling away from the market they helped create for blank check accompanies. goldman sachs is ending its involvement with most -- most of the special acquisition purpose -- a acquisition companies. the spac grace has folded in part to regulations. global news 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. i'm ritika gupta. this is bloomberg. ♪

>> we have a perfect storm of weakening global growth in all regions. in the u.s. you have this

tightening of financial conditions. in europe we have the war. i think what broke -- of the camels back were the covid lockdowns. jonathan: things get worse in china. from new york city this morning, good morning. have a bounce back on the s&p 500. up .9%. yesterday, a close below that level on the s&p 500. the first such breaking close going back to march 2021. crude down again, 1.01 on wti. and a downgrade on chinese ask -- assets from the black walk -- from the black rock team. it is not just about the lockdowns in china. tk, take a listen to this. this is also about beijing's ties to russia.

warned investors could face more pressure to avoid chinese assets for regulatory or other reasons. i find that interesting. tom: we spoke to the white house about the machinery of doing sanctions, and not that everybody's going to go after china, but in a partial way they're going to have a large effect. i would also note dollar resiliency, but away from yen, away from euro. there is some other noise going on in the fx market. right now, he has given us resilient opinion and science on this covid pandemic. we are thrilled to bring you amesh adalja, johns hopkins center for health security. are we getting a new bout of covid? i look, cases up, hospitalizations up, deaths not so much. is there something new we need to worry about in july or august? dr. adalja: what we have to worry about is the fact there are more contagious variance.

ba.2 is the most transmissible version of the virus. you couple that with people back to their activities, yes you are going to see cases go up. what you have to keep an eye on is what percentage of hospital capacity are they at? from that standpoint i think we look good. cases are always going to go up and down, this virus is going to be with us. tom: can we help with an initial booster, a third shot, and there i say we are going to be discussing this summer, a fourth shot, a second booster? dr. adalja: we don't really have an optimal booster policy. when it comes to boosters this is the original version of the vaccine and we are fighting a virus that has mutated several times. what we see is our vaccines are holding up really well against what matters, serious disease, hospitalization, and death, but they are not as robust a

preventing infection anymore. all i don't -- i do not believe boosting is going to do much. does the vaccine need to be updated, what is our strategy? is it to get people out of the hospital? that is how the booster strategy should be formulated. need newer vaccines that are better than the current version with what we have now. lisa: we are talking about nuances here in the united states and in europe. it is a different picture in china. what would happen if xi jinping abandoned zero covid, from a health perspective? dr. adalja: it depends upon how the population reacts. we know they have a low vaccination rate, especially amongst their high risk populations, which is paradoxical. that would mean hospitals may get inundated. what they have to do, when they pivot off of zero covid they have to vaccinate the populations, they have to start using all of these tools, like

monoclonal antibodies and rapid tests, to mitigate what is going on. you have to make sure hospitals can -- we know china can make hospitals in a week -- need to make sure they have capacity to do with it. that is the solution, because the virus is a going away and china cannot isolate from the world forever. that is the only solution you have with a rapidly-spreading virus like covid-19. lisa: from a health perspective what does it do to have an entire nation under vaccinated and not developing herd immunity that other regions are? when it does reopen is there some sort of eq basin risk or mutation risk that could evolve if you get a mass upswing in cases in a specific region even after the rest of the world has tried to move on? dr. adalja: any time the virus can spread unchecked there is always going to be a risk of new variants. we have seen that in south africa, even in the u.s..

the goal here has to be to get the population vaccinated, and we will deal with the variants as they come. we have to keep abreast of those variants and studied those, but i think the zero covid policy is so bad and so disastrous that it has to be moved from, and we have best practices that could be used. they don't need to stick to this any longer. tom: in may 1 of the great joys of the streets of new york is to see newly-minted graduates and undergraduates walking around in robes. yesterday six or seven newly minted md's from mount sinai walked by me. what are they walking into in hospitals? are they walking into staffed hospitals, staffed doctors, staffed nursing with a new attitude, or are they walking into hospitals basically in chaos? dr. adalja: hospitals are not in

chaos. i worked at the hospital last week and i will be there this weekend. they are not in chaos. we are in a much better place. i see very few covid-19 patients now. hospitalizations are up, but is not what they were doing the december 2021 period we had with covid. it is not something that is completely disruptive. we do have staffing issues with nursing particularly. hospitals are trying to adjust, but it is not anything like what we saw in the past. i think the hospitals are in good shape, although we do have shortages because of the shanghai lockdown. cap scans are not available because of what is happening. jonathan: dr., think you as always. dr. amesh adalja of the johns hopkins center for health security. the sick, i think you are trying to get to the right issue.

what do we face here? perpetual lockdowns? what breaks this? lisa: from a political standpoint it seems like very little, because they are just cracking down harder in terms of trying to keep information, as well as isolating people who have had any contact. they called the people -- they call the people tasked with enforcing this the big white, these people endemic downs that try to identify anybody who has had contact with anybody else. how do we get out of this? and if we don't, what is the consequence to an economy that is already struggling with shortages of goods? jonathan: supply chains, you heard dr. adalja, struggling to access certain supplies. i would say that extends worldwide. tom: worldwide, and heating up with a passion. on china, i would suggest china pros i talk to put all of their focus on november in the party congress. jonathan: that is later this year in the fall. so maybe no change until then? tom: i'm not saying that.

i'm saying there is a calendar date for esther xi jinping to focus on. jonathan: futures up .8% on the s&p. from new york,, david stubbs of jp morgan. this is "bloomberg surveillance." ♪

>> you have all of the three worlds biggest economies suffering from these shocks at the same time. >> we also run the risk of a second repricing lower if we see demand destruction rollback. >> could see prices peak backup, complicating the picture for the fed. >> i wonder in july whether the fed will have the stomach to do another 50. >> the fed has been way behind the curve. >> this is "bloomberg surveillance." jonathan: this market needs a therapist. from new york city, good morning, good morning. for our audience worldwide, alongside tom keene and lisa abramowicz, i'm jonathan ferro. futures up .8%. there is a bounce. will it stick? tom: with a li