jonathan: coming up at eight :00 a.m., alicia levine. from new york city good morning. this is bloomberg. >> with the first word news, i am ritika gupta. the senate may formally begin debate on the pandemic relief bill as soon as this afternoon. i handful of moderate democratic senators want tighter targeting for jobless aid in stimulus checks. the biden administration is not counting on any support, so it needs all 50 democrats on board. it is president biden's first to step back from being considered for a nomination. senators had objected to the nominee for the omb head. in the u.k., rishi sunak will expend -- extend furlough protections to workers for months. the british government will keep paying 80 percent of wages for those in the program through june. the tokyo olympics organizers say a petition will be made by march 25 whether to allow overseas spectators. they will decide whether there will be limits. earlier, a newspaper reported that foreign spectators would be banned from the game. global news 24 hours a day on air and on bloomberg quicktake, powered by mo

jonathan: alicia levine, bank of new york, chief strategist. we talked about high yields in an equity market. if yields are up and stocks are up it is the right kind of move. up .2%. you can see this in the chart. it is the move in bond yields. up seven basis points. jonathan: -- tom: in the two year space -- i do not have the chart up -- but you are right. there is a lift and i do not buy the microanalysis. i would look at this much more as range bound, waiting to see the mood of the economy going back to the first, second week of february. lisa: i am looking at the move and wondering what spurred it. i am looking at the economic data because it is a leg higher. there is a concern about valuations. how many bubble conversations do you have with people and everyone is trying to explain why we are not in the bible? it is natural for people to get jumpy. jonathan: nasdaq still positive come up 33, but rolling over as well. a headline for you, tom, coming out of the u.k. the planned attacks on alcohol add fuel will be canceled. -- and fuel will be

bny mellon strategist alicia levine is with us.gan stanley the streets sees the first rate hike in 15 months. last summer they thought it would be 56 months. no doubt about it, anxiety is here. can the fed move the needle back towards where anticipation was last summer? >> yeah, high, charles. great to see you. this is really the discussion of the moment that's going on in markets here. as you know the tantrum we saw last week was started by option, seven year teshrys that didn't really have a lot of deman. that is because investors thought rates were too low. didn't believe the fed was not going to not raise rates sooner than they said. so as you pointed out, as jim pointed out, the jobe of the fed here is to really reassure investors that even if there are larger inflation prints in the spring by definition, we're coming to calendar year, they're going to look through it. you want to add on to the fact that the fed really needs 12 months to months to taper the bond-buying program, quantitative easing. i think you can get to 2023

i want to bring in alicia levine.not get away with just lip service. what are you anticipating from the gathering, and how do you see the market reacting? >> hi, charles, great to see you. look, i think jay powell is dancing on the a head of a pin here in that there's very little room for error. so we're faced with probably the strongest economy in 35 years and maybe since the 1950s if we get the 10% growth, which is imminently possible. and at the same time, we have a more dovish than usual fed. so jay powell's job is to convince the market that even with this growth and as the unemployment moves lower, it's not going to raise rates x. that's a very difficult message. the market wants to hear something about the long end, what's happening with yields. we've moved 110 basis points since the summer lows, so the market9 wants to hear that the fed is concerned about it, watching it closely and maybe might take action. that should be enough to keep yields lower and move certains asset classes higher including tech which i

let's turn to alisha levin, and ask the real key question -- what does all this stimulus -- not just the fiscal side, but the monetary side, which continues its pace as well, alicia, what does it mean for equities this year and beyond? >> i great deal with much of what ron said, this is going to be about main street, particularly this year and not so much about wall street. we're very positive on the market we think the market moves higher the risk, as we know, is in the rates market appeared with yields as long as yields can crawl higher and not leap higher, then the market should be okay and tech should be okay. you need to expect volatility in tech you're going to have enorm house swing to up 2%, down 3%, based on where rates are going when you think ultimately the fed will have a tough time dancing on the head of a pin here getting policy right, there's a lot of stimulus coming to the economy not all of it is replacement income this year arguably replacement income is not inflationary, but the rest can be given the sizes we have this year and last year. very hard to get this right. it will be reflected in yields so you'll feel it in the tech trade, because te