>> what is going to be required

to get inflation under control. >> pretty obvious they should have gotten the tightening process going last year. there may be some economic pain we have to take. >> not just volatility is in a new regime, we are in a new regime of momentum. >> a u.s. outperformance story. let's see how long that lasts. >> this is "bloomberg surveillance" with tom keene, jonathan ferro, and lisa abramowicz. >> from new york city, good morning. live on tv and radio. this is "bloomberg surveillance." i am jonathan ferro. on the s&p, we are down 1%. nasdaq down 1.7%. lisa: not a lot of conviction about anything. you can see by some of the haven bids. you have concern about the fed

hiking. people still talking about momentum in the u.s. economy. jonathan: the growth concerns in the bond market front and center. lisa: very much so. this is a shift. we have seen bonds and stocks sell off. rate fears seem to have peaked. what comes next? what is the consequence of a tighter financial policy with inflationary pressures that crimp consumer spending? jonathan: euro-dollar with a 1.03 handle. >> tough spot for the euro bank to be in. in theory, that means you hike rates, you could get a stronger currency. those same pressures are causing growth scare on the continent. what is a central bank to do? what is an fx trader to do? do you want to buy the euro? jonathan: does the fed do? what has been taking place in

crypto, in this equity market? your merger -- your mortgage costs. i talked about netflix down 72, facebook down 44, apple in the mix now, almost down 20% this year. these are big moves from big companies. lisa: just months ago, people were talking about the haven trades. look how bulletproof your iphone purchases are. look how people are lining up to spend thousands of dollars. now people don't care. this is a change in the concept of valuation before we get balance sheet reduction, before we get liquidity for an economy that some people say it has gotten drunk off of it. jonathan: i only know one happy man, it is tom keene. that seems to be the only place to hide. when we talked about people building up cash position, why

would you want cash when you have inflation north of 8%? a lot of market participants, this is why. lisa: especially if that is in dollars. if you are earning in euros and putting it in euros and then going to the u.s., not so much. this is the real trade that has emerged as the only haven when there is so much other volatility. how much is that disruptive in its own right given to what that does outside the u.s.? jonathan: your equity market looks something like this on the s&p and nasdaq. we are down 1% on the s&p 500. on the nasdaq 100, down 1.6%. futures negative, the opening bell about one hour and 27 minutes away. yields are lower nine or 10 basis points. we keep going back to this three-step process people think we are in. they think we are in step three. from inflation fear to rate response to growth scare.

are we in step three firmly given the price action in bonds? lisa: i am glad you asked that. the intraday volatility is annoying, the word he used. we are flipping between rate concerns and growth concerns. it does not feel like we are to the growth concern place in the u.s. from an economic perspective. does it stick? you get conviction in the high-end yields, can you say we get another re-rating when people look out? jonathan: seema shah now. we have done a lot of damage. some people might call it carnage. what do you look for to know when to step back in? seema: good question. i think we need to see inflation coming down. we need several months of this to give us comfort that we are on the right path. i think growth can stabilize.

we are not going to see that significant slowdown in growth for another six months to a year. i think i see growth stay relatively stable, you could see a stabilization in equity markets. is that another rally? i don't think so. lisa: what do you do with that? do you buy those growth names? seema: it is not necessarily about big tech. it is about quality. we know currency is likely to slow down. we know the tightening. that is the pricing power to deal with inflation pressures. linked to quality rather than specifically about -- valuations have achieved considerably. as long as we can pick out the right currencies with those characteristics, there could be a decent time to get back in.

kailey: one of the factors that has weighed on those growth has been higher treasury yields. as john and lisa were discussing, the bid has come back to the treasury market. the 10-year was at 3.12 last friday. if the peak is in for inflation, is the peak in on yields? seema: i would not say we have seen the peak. there is a fair amount of volatility in the market. if we are looking out six months, we see treasury yields a little lower. that is because we are expecting a slowdown in growth. as soon as you start bringing recession into the equation, difficult to see yields sustainably above 3%. jonathan: just to build this out, if we bounce, where do you think the leadership comes from in equities? seema: i think it will be quality. you have a bounce, but the

growth issues with the fed continuing to tighten is not going to go away. we need to be taking out companies carefully. this is where selection becomes important. lisa: when you talk about selection, is the focus on the u.s. even though you are getting such a re-rating or carnage in europe in particular? seema: absolutely. we look at the u.s., and we are concerned. if you look further out, europe, china, the concerns are even greater. europe is surrounded by issues, wherever you look, they are challenged. emerging markets have repriced inflation, which is going to become bigger and bigger. it is problematic, but it is the dominant area. kailey: what about the u.k. where we see a growth contraction in march, and yet

the bank of england saying we have got to hike more? seema: it has been interesting with the u.k. we have been relatively negative u.k. for several years. u.k. is a big dividend play. we continue to see that interest , the bank of england will likely see recession in 2023. we see continued rate hike. it is that dividend play that does make it attractive. jonathan: awesome to get your opinion. thank you, seema shah, principal global investors. nori and review neat the bond market, equity market correlation. usually tuning in, says correlation between bond and stock prices going back to negative after being recently positive. concerns about inflation gives way to concerns about a recession. lisa: which is what a lot of

people are expecting. seema saying she was expecting it in 2024. if you expect it in 2024, do you still dance? do you look for consumer discretionary companies? that is going to reassert itself because we still have time left in the cycle. if you get the economic call right, it does not mean you are going to get the market all right. jonathan: some of this is so fulfilling. i got a message asking what happened to the commentary about that resilience u.s. economy? the data has not changed much. markets are anticipatory. they look at the data in front of them, think about how the fed is going to respond, look at the financial conditions, and a lot of that exacerbates the things the market anticipates. that is what financial markets do. they can shape the events they anticipate. lisa: we have seen the ramifications for 5% mortgage

rates. we have seen sales slowed down. the number of sales, volume slowing dramatically. these precursors to more of a downturn. we are seeing the groundwork being laid for prognostication out there. it is not completely in a vacuum that people are having faith. jonathan: going through the data, can a consumer stand up to this? household balance sheets are strong. utilities were up 13.7% from a year ago. the most since 2008. 60% of categories have seen prices rise more than 5% over the past year. when you about where real wages are, real wages negative for 13 months. to some extent, we can debate what degree, the consumer is going to be hit by that. lisa: and already has. remember the retail sales print that came in negatively on a real basis.

you are hearing it around the edges and even a little concerned about companies not hiring as many people. jonathan: we have a crisis right now in the market, crisis of confidence. at some point you have discounted everything we have talked about. when is that point? that is the difficult bit. futures are negative 0.8% on the s&p, the nasdaq down one .4%. this is bloomberg. ♪ ♪ >> keeping you up-to-date with news from around the world. it has been a big day of swings in the cryptocurrency market. bitcoin has been as high as 28000 and as low as $3000 less than that. the collapse of the terrausd stablecoin triggered a flight from many digital tokens. senate democrats were blocked in an attempt to enshrine abortion rights. all republicans and one democrat, joe manchin, voted to

keep a bill from reaching the senate floor. senate majority leader chuck schumer says he wants to put republicans on record just as the supreme court is poised to overturn roe v. wade. bloomberg has learned hsbc began an internal analysis to split off its asian operation. that comes from the bank's largest shareholder, which wants to improve returns. about 65% of hsbc pretax profits last year came from asia. the bank argues much of that business is with western clients. the selloff in tech stocks has spread from speculative shares to the world's biggest companies. apple is poised to open today 20% below its january peak. through wednesday's close, apple erased $600 billion in market value. that slump has led saudi aramco to pass apple as the world's

most valuable company. global news 24 hours a day, on air and bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i am laura wright. this is bloomberg. ♪

>> jay powell has the

temperament, knowledge, and leadership skills to navigate the fed through this process. because he was there and did an outstanding job during the pandemic in march of 2020, he knows the fed has the tools to do this. i want him to own this issue and guide the fed through this next issue. jonathan: the congressman of arkansas, democrats nominate him for a second term. it is pretty amazing, isn't it? lisa: who else would fill that role and be able to smoothly transition? it was not just the federal reserve? , there were warnings about inflation. they know he went hard on the idea of he made a huge mistake. jonathan: i remember those economists saying keep qe, i don't remember that at all. futures on the s&p down 0.8% on

the nasdaq. you were not paying attention anyway. the 10-year 2.84. gregory valliere, it is amazing to me we have not heard much from senator mitch mcconnell. what is the strategy from republican leadership as the white house tries to define the party from the views of the junior senator from florida? gregory: i think mitch mcconnell is content to run out the clock. he has got six months to go. i think republicans do not want to talk details about abortion, about legislation, and they certainly do not like senator rick scott of florida saying maybe we need to have more people paying taxes. that goes against the orthodoxy in the republican party. scott says a lot of these issues

could be sunsetted every five years. we should re-debate social security, medicare. that has a lot of republicans upset because the dictate from mitch mcconnell is to say nothing to try to get through six months without rocking the boat. jonathan: that is fine if everybody else says nothing. if you leave a vacuum, and the white house starts to define you by rick scott, doesn't mitch mcconnell have a problem now that he has to step up and offer a plan? do you think that does not matter? greg: i think they will be vague. the great wildcard is joe biden's health. scott is not exactly subtle. he has said biden has mental issues and that he should resign. i am not a doctor. i do not know. i have seen biden at press conferences where he

stockholders -- he stutters a little, but he has stuttered for 80 years. if scott wants to go into that issue, that is going to upset centrist voters. lisa: the blame game is popular in washington on both sides. you are hearing republicans explain things the democrats have done wrong. the democrats are blaming vladimir putin, the republicans, everyone for the inflation. does the blame game resonate with american voters? greg: i think it does. when you look at inflation, most americans blame spending. we spent a little over $5 trillion last year. a lot of voters think that jumpstarted inflation. they blame biden for doing that. we see yesterday an astonishing error from a public relations standpoint that the white house, as gasoline prices hit an all-time high, announcing we are

not going to do this alaskan oil drilling. two announced no alaskan oil drilling on a date gasoline prices are spiking is toned off -- tone deaf. you are going to see more support for drilling and exploration. you are not going to see much support for big new spending. kailey: inflation is felt universally among the american populace, no matter where you are on the political spectrum. how many people are already decided on how they are going to vote in november? how much can change in the next six months? greg: here we are in mid-may, i would argue within a couple months, attitudes will harden. it is going to be hard to have biden have a different perception when it comes to inflation. i think he is stuck with it. there are things he could do. i don't rule out student loan

relief, more aid to ukraine with the ukrainians doing better against the russians. when it comes to inflation, i think biden only has a couple months left, or the attitudes come lot. jonathan: one thing they were worried about was energizing the base. the abortion issues has energized the base. do you think that has done so it? greg: huge issue. there was a showboat in the senate which did not go anywhere. this will be a big x factor. another issue where mitch mcconnell would like to run out the clock. republicans do not want to get into details. they would like to avoid the issue. jonathan: wonderful to catch up, greg valliere. how sustainable is that position from senator mcconnell, just wait it out until november? lisa: if the blame game works, pretty sustainable.

they have got a lot of blame they can pass given the anger about inflation. how do they ride that and not have to provide anything substantive on the other? jonathan: we have brought this up, whether the calendar is on their side in the white house, can things get better coming out of summer? it reminds me of last year, waiting for supply-side response, waiting for inflation to come down. citi just published, -- increases the risk the fed will hike through the second half of the year. that is a risk. jackson hole in august and the september fomc may see fed officials guiding towards a high neutral rate and the need to overshoot it. the back end of q3 into q4 and play. lisa: timing is not necessarily on the democrats side. though supply-side issues are not abating.

in five minutes, we are going to get the ppi rating, producer prices and how quickly inflation is rising. do we get a new sense of how much momentum there is? jonathan: mike mckee is in the seat. we will get to him in about five minutes time when we get that economic data. down 0.9% on the s&p. it has been brutal. on the nasdaq 100, down 1.4%. yields lower for a fourth straight session. in a few minutes time, we get a call of economic data. breakdown from mike mckee. for our audience worldwide, alongside kailey leinz and lisa abramowicz, i am jonathan ferro. this is bloomberg. ♪ mberg. ♪

jonathan: economic data 10 seconds away. this is bloomberg surveillance. your market is lower .9% on the s&p. on the nasdaq down 1.5%. yields lower.

with your economic data, here is michael mckee. michael: on the inflation front it looks a little better than expected on the core side. ppi up .5%. that is down from 1.4% in march and matches the survey. the court rate comes in .4%. down from 1% in march and less than the .7% forecast for the month. on a year-over-year basis ppi is at 11%, down from 11.2%. the court comes in at 8.8%, down from 9.2%. a little less than anticipated. the increase in the month primarily attributable to a 1.3% advance in prices. those services are down.

i have not quite gotten to that number. final demand up 4%. maybe a last gasp by builders trying to get things done. initial jobless claims stronger than anticipated. up 203,000. that is 1000 more than the 202,000 last month. the forecasted been for 193,000. we are at levels where of that matters. it is rounding errors, it could be a unique situation in one particular state. it does tell me the overall job market is still very strong. jonathan: i will just with through the price action. we are still down, we are lower on the s&p about 1%, .9%. the nasdaq down 1.6%. no major moves in the bond market. we were lower nine basis points. about that level now.

crude lower 1.4%. we have seen commodities rattled recently. euro-dollar with 103 handle. we are gripped by a growth scare off the back of some of these inflation numbers and how the fed is set to respond and what this means for growth. can you help us understand the relationship between the ppi numbers in the end consumer prices, just the relationship for you and what this could mean in the next few months? michael: there is not a direct relationship because the ppi measures what companies are charging for their goods. it is divided into those who sell directly to people and those who sell to other businesses. the problem is a lot of the price increases can get absorbed by other intermediate users in their margins. it is not translate directly into cpi, but the fact we are seeing a slowdown in the increases is good news.

it is what we expected to happen. on a year-over-year basis it has to do with the base affects we have talked about. the fact that the court comes in lower on a month over month basis is a hopeful sign. lisa: does core matter as much with producer price inflation as it does with consumer price inflation considering the fact energy and materials are the basis of a lot of factory products that are made? michael: you put your finger on it. the fact companies are charging less for the raw materials were raising prices last, not charging less will take pressure off final demand, and final demand goods. in that sense it is an improvement. i want to stress one month does not make a trend. it is what has been expected. that is some good news this morning.

jonathan: awesome as always. joining us is steven ricchiuto. is there light at the end of this dark tunnel? steven: there is light at the end of the tunnel. unfortunately i think we are in the final stages of what will be a significant bear market. as we have started to disengage stocks and bonds, i think that is recognition of the fact that what is taking place in terms of the equity market now is a recognition of the fact the federal reserve is not going to be executing the greenspan put any time, and as a result of not doing that the equity market has to be taking down earnings expectation. the decline in equity has been concentrated in the multiple. as long-term interest rates go up the multiple has come down. now we are at the phase we are starting to see bonds go down and equities go down at the same time.

equities go down in price. that is telling us we are starting to get to the point where people start to downgrade their earnings numbers. that is the final shoe that needed to fall in the equity markets. we can still get down to that 3500 on the s&p 500 and we can still want up with slightly wider spreads. if this trend continues where the markets disengage, bond yields go down while equity prices go down, we have really reached the top and the yields on the 10 year road -- on the 10 year note. i think we could very well be at the point where we have a pop in the interest-rate environment, yes. lisa: i want to start with what you started on, we are at the final stages of a significant bear market. i am curious what kind of recession you see getting priced into markets and as the most plausible in the next 12 to 24 months? steven: you have asked a great

question. when you look at what is taking place in the economy i find the hard landing, which is growth recession. i think the economy will be running well below trend. i cannot ignore the fact we could have another quarter of negative gdp, unlikely to be back to back negative corridors. we will have an economy running in that 1% or slightly lower environment over the next four quarters. the reason we do not get a classical recession is there is no major inventory overhang. there is no major -- there are no financial dislocations we know about. in that environment the hard landing is a more realistic scenario than an outright recession. in economy running below 1% will mean q4 growth is .4% in contrast to 5% last year and that should take down operating earnings to 5% growth as opposed

to 10% to 11% growth as have been recently discounted by the marketplace. kailey: we do not get the sense the federal reserve is concerned about grove. where do you think inflation will be able to get down to and where will that lead the fed? steven: when you think about what is happening, the base rate affects will come off and we will lose about 3%. it is everything else beyond the 3% decline in the year-over-year numbers that will matter for the fed. i think the reality of the situation is we will come down more quickly. we could lose about half of the gains we have seen in the operating numbers year-over-year. somewhere between july and september we will see a pipit i the federal reserve away from aggressively hiking rates to developing a more shallow rate hike scenario that will probably continue over the balance of expansion.

lisa: when you expect us to see the actual tightening matter to the economy, filter out to whether it is the slowdown in housing or companies borrowing less money? steven: i think you are already seeing it. if you look at the headlines of the conversation by meta, you look at what is happened to uber, you look at what is happened to lyft, you look at amazon, you look at the inventory of some of the retailers we see in inventories, then you look within the financial component and look at the people who lend to households with middle income to lower income areas and they are starting to see that the performance on their loan book is deteriorating. i think you're beginning to see it at the micro level. when we get it in the macro statistics? that takes another month or so. jonathan: thanks for breaking that down. steven ricchiuto with a less constructive view, laying out

the hard landing some people fear. lisa: saying it will take a month to start seeing more of that kind of data, then do we get a confirmation and what he also said, which is we have seen a peak in yields and people continue to pile into long-term treasuries and do not abandon the lower for longer inflation outlook. kailey: -- jonathan: you think the fed continues hiking at 50 basis points? lisa: if they don't, could it be worse? what happens if they don't follow through. i would expect the long end of the treasury curve to surge because people would expect they lose control over the narrative, then you have a credibility issue. jonathan: i get markets have to anticipate. to see this kind of price action at the index level and the single name level, across the crypto complex, after just 75

basis points of hikes and qt has not started, i get that you need to get ahead of what the fed said. it is pretty brutal, though. kailey: we have moved up 75 basis points. we are talking about double that over the next three meetings. what happens to the market then or is this a market that has gotten there? it raises the question of how much has been priced in and whether or not full capitulation will come and whether something is broken. you talk about crypto. stable coin looks like something broken. jonathan: that is the problem. we just dump the idea we get to 2.50% or 3% on fed funds. what we have seen historically with his fed is every time they try and put forward with some kind of hiking cycle like this one, they have to back away because financial conditions tighten so much they have no choice.

financial conditions have gotten way ahead of what the fed has done already. at some point, does the fed put come out of retirement because it has gone too far? lisa: at some point. even jim bullard pointed it will come out of retirement but you're not seeing the kind of disruption that would lead to that kind of intervention. a lot of people point to that. jonathan: you're not seeing it yet. lisa: yet. jonathan: we have had so much for to speak and they have not gone there. the nasdaq down a little more than 1%. we will get the view of subadra rajappa alongside bob doll and the view from deutsche bank. they are forecasting a recession. deutsche bank's call coming up shortly. laura: keeping you up-to-date with news from around the world. president biden marked one million deaths from covid by," and congress to maintain funding

for testing and treatment. lawmakers remain unable to agree on how to pay for the fight. today the u.s. opens at second summit a great -- aimed at quelling the spread of the coronavirus. it would be another jolt to the european landscape. finland and sweden are inching closer to joining nato. finland's president and prime minister through their weight behind an application in sweden's government is right to do so soon. the nordic countries are seeking to determine aggression from russia. moscow warns there will be consequences if they join nato. germany is accusing russia as using its energy exports as a weapon after mostel reduced natural gas supplies in retaliation for penalties over the war in ukraine. it appears to be a largely symbolic move. germany's economic minister says the cut amounts to about 3% of the russian gas imports. the u.k. and the eu have failed to resolve their differences over northern ireland's trade agreement.

that could lead to a diplomatic crisis. the u.k.'s is the current arrangements results in northern ireland being treated differently than mainland great britain. global news 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. i am laura wright. this is bloomberg. ♪

the fed has its work cut out for it. it needs to slow aggregate demand, and typically starting from behind the curve the success rate is very high. they have missed the boat. it is obvious. they should have gotten a tightening process going last year. lisa: michael darda with the oft thought about idea the fed should have probably started tightening sooner. it does look like another day of carnage, maybe not to the same

degree as yesterday, but the day is still young. headed in the same direction we saw yesterday. s&p futures down .7%. nasdaq down 1.4% ahead of the open. the euro crossing the 1.04 line, the weakest level versus the dollar back to 2016 before getting to that 1.04 level. treasuries getting a bid. there is a concern about growth we keep talking about even as we get people going on vacation and going out and taking the prices that are being given to them. kailey: there is so much pent-up demand because everybody was stuck at home for so long that people are still paying up to travel. i am looking at the euro and a conversation being having about the possibility of parity. it seems like it might be a good time to go to europe. i do not know if i can afford the plane ticket. lisa: yesterday the cpi print,

18 point 6% month over month price inflation in airline tickets. why? is it just because they can? helane becker just got back from london and a trip in europe. you got to take advantage of the strong dollar and the weaker euro. why are airlines raising prices so quickly? helane: they are really going up. we are thinking they will go up 7% a month through june, maybe july. labor costs have gone up quite a lot. we have talked about that and higher fuel costs. airport expenses have gone up. it is not only the attracting employees come it is also retaining employees. during the pandemic a lot of airlines encourage people to take leaves of absence and then they found other jobs and decided maybe they liked the other jobs better than the uncertainty of working for an airline and they did not come

back. as a result you have to hire new people, we talked about american hiring 18,000 people, delta hiring half that many. jetblue hiring four or 5000, and you have to pay up to attract. because you have paid up you have to raise everybody else's wages. huge wage inflation. jet fuel costs are five dollars to six dollars a gallon, most people are paying $3.50 to four dollars. we've never seen jet fuel costs that high. lisa: all of this makes sense, there are some people i've spoken with and i work with say they are purposely keeping out supply, they are purposely not bringing planes in. they are not flying less they have full capacity to make as much money as possible and they are jacking up prices as much as they can. they're going to make quite a bit of profit. what do you say to that?

helane: i hope they make a lot of profit. the industry has a tendency to not do that for a sustained time. on a capacity front, let's talk about that. we are about 80% of where we were in 2019. airlines retired a lot of aircraft. we identified something like 18 to a thousand aircraft that do not ever come back. in the next bucket what the max issues and the delivery delays, and then put supply chain issues in the third bucket and look at the delivery delays on the a320, the a320 one, look at the 787 boeing cannot deliver. united thought they would have the triple seven back in service by july. they will not be in service at least until next year because of supply chain issues. then you have the issue of not having enough pilots and staff in the issue we just talked about. you had this huge issue of the

demand-side, which you point out is high. kailey talked about it in the open. then you look at the supply, and you are right, it is constrained. what is the industry supposed to do if regulators are making it difficult to get the equipment in they cannot get the people anyway? kailey: if supply will stay constrained, what about a correction on the demand-side? i am looking at summer vacation and thinking maybe i should just drive to the beach, maybe i should knockoff up all the money for a plane ticket. how much more money can these airlines exercise before demand destruction starts to kick in? helane: we are worried about that after labor day. does the things. on the first one, you are absolutely right. the airlines will price themselves out of the market. in the short-term it eliminates some of the marginal traffic. it is expensive. i was surprised at the fairs we

paid. part of it was vacation. the other part is the u.s. is the only country that is still testing from a predeparture basis. that brings a lot of uncertainty. you go on your vacation and you have to hope you are asymptomatic or you are not a symptomatic, you test negative before you come home or you are stuck where you are from three to seven days. that brings with it -- travel is uncertain anyway. we've talked about that and cancellations and so on that testing adds another layer of concern that probably keeps people more local, and then business travel it is down 40% from where it was pre-pandemic. we would be over 3 million passengers a day right now --

lisa: helane becker, i do not know if we lost your connection. helane becker, thank you so much for being with us. it is a real issue. i wonder how many people will stop flying quite as much. i can say from a personal standpoint i have seen the prices and then decided not to go on a vacation because you will pay three times as much. kailey: absolutely. i know i, well as me, i will not going vacation, i am paying so much money. i also have a stable job and make more than a living wage. yep to think about the american consumer that is not necessarily the case. your energy bill, gas to get in the car, you are faced with higher prices. at the same time you're looking at a 401k and equity market at which we have seen such massive wealth destruction. $6 trillion wiped off the value

of u.s. equities. where does that leave the consumer? lisa: this is the reason steven ricchiuto is saying we should start to see the effects of that tightening in financial markets as well as some of the price pressures people are feeling in about a month. coming up on "balance of power," former nato deputy terry secretary will be joining as we deal with what is going on in russia -- deputy secretary will be joining us as we deal with what is going on in russia. the nasdaq down 1.3%, the s&p down as we head towards the end of the year. it is a bid into the treasury market as people look for havens and worry about growth. this is bloomberg. ♪

jonathan: live from new york city, good morning, good morning. for our audience worldwide come equities lower. the countdown to the open starts right now. >> everything you need to get set for the start of u.s. trading. this is "bloomberg: the open" with jonathan ferro. jonathan: