>> folks are looking at maybe not the wrong data but inflation isn't going to be the issue in 2023. >> the market believes the fed

is going to be successful. it is going to have to get closer to where the fed is. >> we will get some prints in 2023. >> i think it's going to be a more modest return. >> this is bloomberg surveillance. lisa: 30 minutes away from the last important read of 2022. welcome back. this is bloomberg surveillance. it's not exactly the sleepy friday before christmas that you would expect given that we are about to get what could be an incredibly consequential reading on the american consumer. tom: inflation down, the gdp was up. we have an inflation report january 12. i think mckee would say this is important data. lisa: after a confluence of confusing metrics we have gotten over the past two weeks. how much do you potentially get

disruption in markets at a time when people have already checked out? it really could give a sense of how much people are still spending. how that's bleeding in to the most important metric. tom: i believe we are data-dependent. lisa: but this is than the question, what is the bigger risk? upside or downside surprise? it's not just inflation going down how quickly. this is what people are going to be pursing through perhaps of thin trading. tom: you mentioned bond market closing i wasn't aware. i like when quincy crosby said we been here before we will get through it. i think that's a good way of putting it. you're going to do the data check your? lisa: i can get there. i was going to explain some of the other things. we are watching the weather, we are watching how that affects energy prices. some people are going to be trying to get out from an airport and let's pray for them.

i do think this could be potentially setting aside for a day of a reset. the last real day before the year end. tom: pittsburgh was 23 degrees, it is now nine degrees. lisa: a little bit of lift right now in the s&p. yes, fabulous. up a quarter of a percent, nasdaq up three -- .3% excuse me. not doing that much after the selloff yesterday. rude notably up to .4% how much do you start to see the fluctuations on the heels of weather patterns really looking for cold weather? tom: we thought we would do this this morning and we return for a moment to the death of scott minerd it has been appalling. i thought we would give you a window into scott minerd's past and the first thing i said is

get me bob diamond. bob, thank you so much for joining us today. take us back before barclays and you had this young turk making bond decisions. why was scott minerd special? >> first of all, i just already miss him terribly. he had the kindest soul of anyone i have ever worked with. for every person he worked with. it actually went before that, morgan stanley, scott and i were at morgan stanley new york. i moved to london in 88 to run international fixed income trading, trading outside the u.s.. scott was good enough to leave his unit and joined my unit which was pretty new at the time. when i think back at the incredible transaction we did, not many people recall this but

we did the first european currency unit bond ever issued in 1992. ironically, the issuer was the bank of england and it was certainly a precursor into all that came following that but the single currency and the introduction of the euro but that was to me another example of how scott was always at the forefront of everything going on in the fixed income markets. tom: our fed coverage has always seen how he could change his mind as i same had a train of thought like a cpa not like some fancy cfa. the answer is scott minerd for you and others had to manage risk. what was the key risk attribute that he had daily on the desk at morgan stanley? >> i think at the time, first of all, this is a man who loved

studying the markets. always had a grasp on the macro environment, the medium-term, the long-term, and all of the shorter-term actions were based on those. what a lot of people forget the actions he took in 1994. he was in new york you will recall that was the last time we had this kind of real strong rate increase and at that time the victim was orange county. i remember scott coming into my office we sat down with the group of traders he was the first to recognize the problems in orange county. by that afternoon we exited every position. these were repo positions. love the money was returned to orange and it triggered the liquidation of those positions across all the other dealers. to me it was the vision scott had then and has always had, his grasp of the macro and his grasp for what was right for the

regulators as well as what was right for us. one of the things that goes unrecognized as the incredible execution. we were out of those positions by that afternoon. at the time the orange county debacle. a tremendous professional. lisa: the nimbleness that it takes to be able to do that, the conviction but also what we've been talking about all your, humility to change your mind. to move on a dime. how did he embody that in a way that really speaks volumes to you about what it takes to be successful in a very tainting place which is wall street? >> i think right to your point, lisa, his movement from morgan stanley where he was trading every night was mark to market. most days you are turning over your inventory. has evolution into the investment management side was i think a critical factor.

if he could be better at something then he was a tasting -- taking risk he was even better as an investor. i think that was because he's been so much time truly studying what was going on with the fed and the other central banks and he had such a firm grasp on policy. all of his micro decisions were based around a conviction of what was happening in the macro environment. he never sat on it, he studied it consistently day in and day out. i don't know anyone in the trading environment that spent as much time doing research. throughout his career, even in a senior position, lisa: as we enter new territory where central banks will not be the till when they were for so long, is your view that wall street and taittinger -- trading desks have that spirit more

broadly? or perhaps is there a lack of that experience on some of the trading floors after all of the churn we have seen in the past decades? >> there is no question that the experience of people who grew up on trading desks in the 80's and 90's and 2000 is very different than the most recent period the financial crisis of 2008, it's been a one-way that. i hate to use the word bet but zero interest rates, doing everything that was required, all those efforts kind of redoubled or may be troubled during covid. it's clearly a different environment right now. i think the skills of people getting marked to market every day turning their inventory every day, far more typical of the trading floors of the big banks and the hedge funds. tom: you live this in

technicolor. the challenges you have had like a lot of other people in the equity space and the whole spec thing and up to and the rest of this, either young scott minerd's out there or are we moving so fast immediate gratification that we are not building the future scott minerds because he is a brain drain out of the major banks? >> i think you just hit it square on the head. it's up to us, as the leaders because there is definitely the raw talent out there and we provide an environment where people can learn as scott learned. through trading in the u.s., trading in europe, trading and being on the investment side of being a student of the market and doing homework day in and day out research day in and day out. keeping relationships with the

regulators and the clients, yes. the talent's out there it is up to us as leaders to develop it. tom: bob diamond, thank you so much. there are some lessons there for mr. diamond about nurturing the talent. you think of the comment on bonus season or are those scott minerd's? how do you keep them in 2024? lisa: and what are the new markets in terms of technology they are trying to bring on, where do you nurture it at a time when the market is really shifting? i hear you groaning but there is this row question about modern finance and that was a question back in 1978 with respect to high-yield bonds and the creation of a new paradigm. tom: i think you mentioned it earlier mike milken at a time, and i go back to the visceral paper tickets.

we have lost the visceral nests -- visceralness. lisa: one think we have not lost is the need to pivot quickly. that is one lesson that scott really embodied and has been pivotal, excuse the pun, for this year. tom: futures up 10, dow futures up for. all of us up bloomberg loved scott minerd. keeping you up-to-date with this from the around the world with the first word i and lisa mateo. nearly 37 million people may have been affected with covid-19 on a single day according to the government's top health authority. some 248 million people or 18%

of the population likely contracted the virus in the first 20 days of december, that is according to the national health commission. china's dismantling of zero covid restrictions has unleashed the virus making the opera world's largest. north korea fired two suspected short range ballistic missiles today in an area near the mashed -- international airport. kim jong-un is finding space to ramp up after -- provocations against the u.s.. the launch comes three days after the u.s. sent a bomber and f-22 stealth fighter to the peninsula. secretary of state antony blinken says the u.s. is committed to stand with the government in kyiv for as long as it takes. work is continuing to repair the infrastructure and bolster their defenses including with patriot missiles. he discussed the war today in a

call with this chinese counterpart. the war in ukraine is taking a toll on russia's economy. a survey shows it will contract by 2.7% next year. the european union is holding euros earmarked for hungary. the european commission says hungary isn't fulfilling the eu's charter of fundamental rights. it mentioned a so-called child protection law that bans miners being exposed to any kind of portrayal to any homosexuality or sexual reassignment. it restricts the rights of the lgbtq community. global news 24 hours a day on air and on bloomgerg by quicktake. powered by more than 2700 journalists and analysts in over 120 countries.

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>> the job market is just swimming in unfilled jobs and demand is incredibly high. the consumer confidence data is ripping and aren't appreciating that the consumer is going to spend a lot more money, it's going to keep us out of recession. lisa: some optimism there to end the year. head of research, it is optimism at a time where there is so much fear of recession and what could potentially happen. we are going to be speaking with someone who is surviving, i can put it that way. tom: there is a warming trend. lisa: having lived in chicago myself, it is cold there.

tom: wind chill of minus a gazillion degrees. people out west, it's warming up somewhat. it gets back down to zero about 3:00 p.m. today. lisa: try not to go out, beyonca president of bianco research has been a breath of fresh air in his real reassessment of free money and the lack of it. jim i want to start with one of the big questions ending this year which is the discussed the -- discrepancy with what the fed is going to do and what the fed is saying they are going to do which is raise rates a lot more. and can you and the year helping us to understand who is right? >> historically, usually the market has been right but in 2022 it's been the fed rate of the market has been dragged screaming and kicking to the believe that rates are going to

go up and while both the market and the fed are saying the terminal rate, or they're going to peek us around 5%, the market thinks they're going to start cutting rates this year or the fed has made it pretty clear they are not going to be cutting rates this year. that discrepancy is going to pretty much i think drive, you know, investing in the first half of 23. are we going to get the pipit in 2023 or are we going to get the pivot in 2024. i think there is going to be some room for disappointment. lisa: i guess there is another way of asking this, have we gotten out of the woods with more disruption or have we seen the bulk of it in terms of the rate move and the realization that we are in a higher rate era? >> i think we have seen the bulk of the move, yes. there are still rate hikes to come. but, yeah, i think that whether

or not we are in an era of higher rates that's the question. of the market is still of some believe that in the next two years or so inflation will settle back down to 2% and interest rates can go back down somewhere around 2% as well. you can approximate something we saw pre-pandemic. we were in a higher rate environment when the fed starts cutting, you will get the 3.5 and that will be pretty much it. that is what the easing will be are may be three. the next flareup, rates will go higher from there. tom: you have seen big shifts. let's look at the chicago comes, big shifts. the big shift in our world is money now costs something we have a risk-free reign.

fixed blaine how things change. >> in 2022, we saw that the total return in bonds, how much money you lost plus the income you got. we started the year with the income, pretty much a zero interest rate. it has been a record that we have not seen bank of america saying it's been 100 four years since we've seen these kinds of losses in the bond markets. i'm a little bit surprised too. if you tell me in january the worst market in 100 for years i thought we would have a lot more financial disruption then we have had so far. maybe that's a sign that rates are not as deleterious as we think. nevertheless, i think as we move into 23, we will start the year with a coupon. if prices go down, you've got a cushion now. if you have an interest rate that we haven't seen in 15 years. tom: but does it mean, go back

to 1918 and everything that happened there, the war in ukraine and what it did to j.p. morgan was really something. let's drag it forward to 1974 and we are created in 75 with up, up, up. can stocks extend this year and do a 75 or a 1982? >> sure, and they need one thing to do that. they need signs that inflation is after all transitory. it is on its way back to 2% without a recession, that that's the natural long run rate and is going to stay there. if you see something like that, the fed can settle down, the market can take off at that point. but if inflation is not on its way to 2% the market will struggle. i've argued that inflation is the story. it will continue to be and whether or not it goes back to 2% on it sound, naturally, in

2023. lisa: if inflation is the story how important is today's rate, the last inflation read we get of 2022? as we get a sense of where the consumer is ending the year? >> i think we are going to get pce and the fed is focusing on core pce. neutral is getting the interest rates, all interest rates sustainably above core pce rates. all of a sudden that points our interest rates within the possibility of getting the -- about the inflation rate. if we see that 4.5, 4.6 and we see a trending lower we can be getting a lot lower to at least neutral according to the fed. tom: thank you so much, from chicago, stay warm. research for running the weather forecast for bloomberg news.

it is, it is a seismic thing. there are three ratios you look to measure risk and reward. sharp, jensen, and trainer and you mentioned these. the answer is only one of them really codifies the tension because it doesn't have this goofy thing called beta. that's a sharp ratio. except the sharpe ratio has been useless pushing on 6, 7, 8, 13 years because there is no risk off of the t-bill or whatever you want to take it off of. all of a sudden we are back to jim bianco and then i remember maybe we can do the math scott minerd would do routinely. lisa: what jim said was pretty fascinating about how if we get core pce below 4.5% suddenly you

can get a fed funds rate above that. by that venture, it is restrictive. at what point is sufficiently restricted? we start to see where we can get a sense of where the peak is. tom: percolating are we already giving david rosenberg super restrictive, or the altar restrictive of benefits? lisa: he was calling for outright deflation, a really rapid decline in the pace of price increases. tom: i can't get that. lisa: is it from a goods perspective now? tom: absolutely. lisa: not necessarily on the services sector and you still see wages go up. tom: economic read in five minutes. lisa: it's going to be important because of what jim was saying. i think it's the last really important data point. tom: is mckeen life from an

airport? lisa: are you trolling me? i have anxiety heading to the air. there should be a syndrome that should be named. tom: one of the triumphs this year, the opening of the new laguardia airport. lisa: i agree. tom: they still haven't fixed a pothole, you know, like one block away. it's 59th street? lisa: they should have a big sign saying pothole ahead. tom: coming up, michael mckee. futures advanced up 12, stay with us. ♪ not those new age shamans again. i'm talking world-class business experts. data geeks, strategists, tax advisors, the works. i do like data geeks. what about technologists?

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tom: 20 seconds, i must say this last visit of the year with michael mckee is the absolute foundation of the first word and what we do. economics, finance, investment. he has some fancy title i can never memorize but he holds us up every morning and i, with a seattle slew of economic data coming up. durable goods is the first number out. you have other sources as well. direct conduit. >> down 2.1 percent on a

headline basis we have to see what is underneath that in just a few moments. everybody is hitting the button on the internet at once. personal income comes up better than expected up 4/10 after a7/10 rise in october. spending is up a tent the face percent after an 8/10 rise. the problem is and others are probably running into the same thing, the server at the bureau of economic analysis seems to be down. a little too much eggnog, not enough people able to get in there. here are the numbers we care about, the pce, that he headline is up just 1/10, that's down from the prior month. the core up to tenths of a

percent. it was hired the prior month. that's an improvement nbc the deflator dropped to 4.7% from 5%. it looks like, depending on what happens in this month that we are going to come in at the end of the year below where the fed forecast at their last meeting. durable goods, let's finish that one. up 2/10 . xterra up2/10. that is down from 3/10 a month ago which was reported as 6/10 so a double drop there. it does look like incomes are ok. we have to see where that comes from and spending by consumers and businesses is a little weak. tom: i'm going to let you dive into that. lisa, you and i saw the two year

yield to a pop up. two year yield up to basis points. lisa: the core deflator, 4.7% the expectation was for it to come down to 4.6 so this is an upside surprise. you are seeing a wash and personal spending because even though it is disappointing of only rising .10% it is upward from the prior month. tom: something new on the eeco screen for those of you on the terminal michael mckee, inflation adjusted to personal spending is flat. most of our listeners and viewers know that. what is the state of our real wage disinflation, deflation, negative wage growth as we go into the new year? >> it isn't grim and terms of wage growth. it is kind of something the fed has been concerned about. what we not seeing his people

spending extra because of it. inflation now, the way it is dropping is going to put us somewhere around the level of wages. in terms of growth. which is what you kind of want to see if you want wage growth. people get a benefit from that over inflation that's a good thing. the only question is the fed thinks you should get 3.5% and we have been running in the fours. lisa: what is the readthrough in terms of gasoline prices coming down? how much does that colored the spending of the entire report? >> it does color it because people have more money to spend on other things if they want to. it doesn't appear like they did a lot of that during the month of november. we have to separate out the surfaces numbers from the goods numbers and i'm sure that mike is going to have that for you

because i'm still looking at this. it does look like at this point he pulled back a little bit in november. people were waiting for sales? are to know. tom: michael mckee will dive into the data and give you a snapshot here in the next 30 minutes to an hour. right now, we were thrilled as i mentioned, working for thank you of america, today the only one working at bank of america ahead of u.s. economics and we are the or bring him in this morning. michael capon i have seen adjustments. we have just seen important q4 data is q4 growth a mystery to you or do you have a confidence in where you stand? >> first of all, good morning and happy holidays to everyone. growth will come in less than what we had in the third quarter. estimates are around one to 1.5%

i would say somewhere in that range is likely were real we are going to end up as i think like mike mentioned some momentum seems to be slowing as we get into year end. we will be running around half of where we were in the third quarter. tom: we are seeing it on the bond market now. where it was before 4.31% a solid four basis point higher yield in the to your equities. they can on the chin, while how far apart are the markets in economics now? >> not too far. i think it's an open question of will we have a recession, when will it be? how deep and long-lasting might it be? so there will be some disconnect here between were equity markets are and bond markets are.

it will be hard for equity markets to price and a downturn and nowhere to revise earnings until we start to see some of that slippage in the underlying data. if you look at the bond market it is expecting, it is pricing in some mild recession in 2023. a little dislocation between that and the equity markets. time will tell in this regard. i will say, yeah, there is a gap and that cap is going to narrow at some point. the data is going to tell us one. lisa: i was speaking with peter share and he called for outright deflation and he said prices are going to fall and inflation is going to fade away. how do you push back against that? >> i think you push back and say 272,000 jobs a month, wage growth, the four to 4.5 percent range through the first half of the year, it's going to be tough to get deflation unless it's

what i call a mirage some places like used cars coming used cars, household furnishings that will bring inflation down a lot but underneath i would still expect services inflation to be firm. persistent deflation really hard to see at this point so i would say it's a composition story unless you think the economy is about to fall off a cliff. otherwise i think it's more a goods retracement story ringing inflation down but i don't think that is where we will settle in. lisa: i noticed a shift in tone from people we have been speaking with. the you think it is misplaced or do you think there is evidence of that becoming a greater chance of a reality east on some of the disinflationary action that we have seen with goods

even though it perhaps has not trickled into services as much? >> the data flow and the rolling over of goods prices, we have all been expecting that. hasn't really changed my view on the likelihood of a recession in 2023 because as i think you are getting too, it's about the labor market, wage inflation and services. the fed isn't going to feel comfortable unless it removes the balances from the labor market. i don't think that picture has changed. tom: i'm not a fan of the michigan data. i'm willing to follow it more. a sidestep snapshot of the public, of the inflation guesstimate five to 10 years out which is called inflation expectations. are we becoming an anchored?

are we actually becoming an anchored and towards a higher expected inflation? >> i don't think so i think if we look across the university of michigan data and the other dater annexed -- on expectation measures i think we are consistent with low unstable around 2% and i do think with today's pce data the last couple cpi reports, i think it will be built-in that inflation is coming down. step number one, get inflation on a downward trend. step two let's see if we can get it around 2%. i think it will become more noticeable that the rate of inflation is slowing. i don't think expectations are inconsistent with what the fed is trying to achieve. tom: michael gapen thank you so much.

i'm talking about goods and services expending. >> it's a service. tom: it is a service bribe today. >> we are spending on surfaces. it was goods that was down 1%. that would include autos. over all shift is still there and it was heavily weighted towards services this time and i might mention wages and salaries were up half of a percent which is the same thing basically they have been up over the last six months. if inflation is going to continue falling at the rate it is, -- tom: up five beeps and they have green on the screen now. lisa: things are fluctuating. he saw an immediate plunge in futures. it went negative briefly and now it's back up to where it was before.

with the implication is, given the disinflationary kind of trend is still difficult to see. >> this is kind of what the fed wants to see, economy slowing. inflation coming down, and people are still getting paid suggests we are not losing jobs. tom: lisa is getting out of dodge today. she has like eight things of logic -- luggage. lisa: i actually trouble with less luggage than you do. i know that for a fact. watch it. [laughter] >> we are going to try to get through the next 20 minutes. michael mckee with important data, the 10:00 hour. it brian, brian is coming. he will be here. the points guy, he changed our lives. brian kelly figured out the

flying rack at the point skype. do that next, stay with us. this is bloomberg. ♪ >> keeping you up-to-date with news from around the world. in paris a shooting left three people dead and three injured. the shooting happened around and in the cultural center. a 69-year-old frenchman was arrested. prosecutors offices the suspect had previously been arrested for two other incidents. including one where he tried to attack migrants. authorities say the motive is not yet known. workers announced two more days of strikes escalating industrial action to pressure the u.k. government to discuss domains for higher pay. nurses also walked out this month meanwhile over 400 ground handlers at heathrow airport expected a pay offer and called of a planned 72 hours strike.

a huge winter storm is hitting the u.s.. thousands of flights are canceled. more than 200 million people, around 6% of the population are under some form of winter weather warning or advisory wreaking havoc on travel plans. lisa abramowicz, call before you head out for your flight. global news 24 hours a day. powered by more than 2700 journalists and analysts in over 120 countries. i am lisa mateo, this is bloomberg.

>> if you have travel plans, leave now. i'm telling my staff, if they have plans, leave tomorrow, late

tonight or tomorrow. leave now. tom: from the oval office the president of the united states. watch out for the lake affect he said. president biden on the storm. i don't want to know where pittsburgh is right now. ryan kelley will be here with us but first brian from boston, i want you to move us forward to where our viewers, listeners across this nation will be christmas eve and christmas day. what does the weekend look like? >> you are stranded, packages that you expected to arrive on time probably are not. that x put out a note saying they cannot guarantee christmas eve delivery right now. and you might be without power. we are edging in on a million people without power. lisa: can you talk about the

scope of this, 200 million people are under some sort of weather watch. is this going to wreak havoc not only on crops but also on livestock, also just well-being? >> the crops, the winter feed, and the livestock are going to take the hardest hits i think also have the longest consequences out of this. the energy sector is going to get a hit but it won't last very long. of the prices will jump around its that longer-term crops and livestock. tom: you lived the blizzard of 78 in boston is this potential equivalent of that lovely snowfall? >> the snuffle isn't going to be too bad. it's almost 60 degrees outside my house. there is a steady roar of the wind and everything is shaking around. we are not going to get the snow out of this but we are going to get the battering of the coast. tom: brian sullivan, thank you

so much. this is a joy right now. when i'm giving speeches i will say something like the two great things in america antibiotics, air conditioning, and the other great thing is what brian kelly invented. he is a piñata for the industry, ryan kelley changed how we travel. brian kelly, the other day i took a family member, business class to philippines 21 thousand dollars, i did the brian kelly pixie dust and i paid $56 for that trip with a lot of miles. are those kinds of things going to happen next year? are we still going to get the mileage pop next year? >> the airlines depend on the mileage programs. they sold billions of dollars worth of miles to survive the pandemic. as you kind of hinted, they are

increasing the amount of miles that you need for each trip so what i recommend to people instead of holding your miles long-term use them now and airlines like united you can cancel them for free. during storms like this user frequent flyer miles as a backup option. if your flight is canceled on one airline use your miles to flight out on another. tom: what's important to me is the interview with airline types which is their optimistic but i don't see a lot of the real about investing in the business. they come off the pandemic close, are you optimistic on american aviation out of this pandemic? >> when you look at the generations, lineal's, gen z, people want to travel. wealth and luxury are defined by having great experiences and luxury travel is seeing a huge increase. i don't see that showing any signs of slowing down.

i think the travel industry will be ok. every industry, there are so many question marks. but i'm bullish on travel. lisa: are companies that arrange it, not necessarily the experience of travel. speaking with elaine becker and she said people are going to pay more to get less how much are you seeing that reflected whether it's access to clubs, lounges, how many points you can use as you are alluding to for each fight? >> that airline lounges, starting in march members will no longer be able to bring guests for free into those lounges. there are so many lines to get into the lounges. airports are packed so the experience is being downgraded. i was looking at a hotel in palm beach in january, $3000 a night for a normal room. it's crazy how much inflation is happening in travel but

consumers don't show signs of holding back because that these increased prices. i do think there will be a tipping point or people say this is crazy i'm not going to spend this much money for the experience that i get. lisa: we haven't gotten there yet though. you mentioned hotels, what about on the hotel front how much can you use the point systems versus the pushback you are saying on the margins in the airline industry? >> hotels are particularly egregious, there are luxury hotels that due to safety they don't do housekeeping. i think that is egregious. tom: thank you. >> over all the hotel industry is i think a lot more healthy than the airline industry. i highly recommend use your perks on those hotel branded credit cards. you get free nights, you can pay $95 a year and get a free night

at a $500 hotel. tom:brian kelly i took points at 302i got a b minus, folks. brian, there was a ratio economy to premium to business class and i've never seen it as stupid as it is now. i looked at two flights where business was 10 times more expensive than economy. where are we in two years in the mix on airplanes? >> during the pandemic, things slow down a little bit. business was only moderately more expensive. full fare business class prices, you know the trend is airlines are putting in premium economy. they charge a premium but not the five extra that you see for business class. pricing has been insane and i don't think that's going to go

away anytime soon. tom: tell me about the other side of the equation which is the charge cards. are the banks enthused by the brian kelly world? >> i mean the banks are making box on the cards. we want premium consumers especially going into 2023. recession, people getting laid off. we are seeing credit card balances go up dramatically over the pandemic we saw a lot of people pay off their credit. now americans are occurring more credit. the banks want the premium consumers who are going to pay off every month. those people, they like the travel cards. i see a lot of investment in this premium travel credit cards. lisa: do you think it is a fools errand to try to travel for the december break? i'm asking for a friend. >> i know you are traveling today out of new york.

the third of the flights are canceled so if you are going to travel pack your patience and be nice to front-line employees at the airport. tom: yes, yes. >> they are underpaid and overworked. they don't want you in front of them at the gate. just be nice this holiday season. tom: it's a personal note i'm not supposed to do this but i'm going to say it. you save me about three months ago with brian kelly 101. i couldn't believe what i did at some of these international chunks and -- junctions. use your charge cards carefully and try to figure out the points. an annual is it with mr. kelly, the point sky. -- the points guy. he is the one that made sense of this racket. lisa: it is a game. tom: he has always been open about if you run up your charge

card they are making out like bandits to give you the miles. but to his immense credit he changed and industry. lisa: can i just say, merry christmas, i hope you have a wonderful one cooking. i just, yeah. i just want to thank you and wish you a fantastic holiday. tom: i got a text from home here. we are having him. i'm going to go with the ham and all that. vegetables, and i'm told for an appetizer were going to cook squirrels. [laughter] lisa: that was the verdict. tom: there is been an adaptation to the hors d'oeuvres. where is ferro? lisa: merry christmas to him too.

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>> i'm matt miller and for jonathan ferro. john, merry christmas to you. we are looking at s&p futures that are unchanged as our nasdaq futures a slight gain. account onto 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.