james beyond the -- james bianco knows this, bianca research -- bianco research. jay powell not want to do in wyoming? jim: he doesn't want to cause problems similar to in 2018, when he talked about the taper on automatic pilot, and it greatly upset the market. what he wants to do is lay out a plan to begin a taper sometime next year, and he's going to but a lot of caveats in it. those caveats are going to be provided that the economic growth continues, and provided that there's no surprises to the economy, and that is going to be a shout out to if delta continues to rise, and restrictions on the economy continue. that could derail the plan for tapering. lisa: a lot of people are looking for taper talk. however, we've already gotten some sense that one of the main topics will be inequality and what the fed can do about that. as a market watcher, how much are you looking at that is possibly giving more of a sense of what is to come then perhaps people are expecting? jim: income inequality is a big problem, and big picture policy can contribute to that. but the imme

jonathan: always brilliant to catch up with jim bianco of bianco research. good morning. keene and lisa abramowicz, i'm jonathan ferro. here's the state of play this morning. waking up to a softer market, -0.7% on the s&p, with yields lower three basis points to 1.2283%. crude down for a sixth straight session to $63.31. the many why -- there are many whys. the realization that the fed is tapering, the chinese and capitalistic regulations, the red sox collapse -- chinese anti-capitalistic regulations, the red sox collapse. put it all together. tom: it is a drawdown. david wilson showed me that years ago, the spx drawdown -1.86%. the always handsome david wilson, what have you got? dave: it is kind of a corollary to what i talked about a couple of days ago. i looked at the russell 1000 growth and value index and basically pointed out this year's performance. then you do the same analysis with the russell 2000 index, smaller companies, and you see there's no convergence at all. you are talking about quite the cap between the two, so you could argue it is sort of a great vib

want to bring in jim bianco, bianco research. jim, i'm looking at your, i follow your twitter feed. like i said your work is absolutely phenomenal, particularly when it comes to the variant and where it might be going. maybe we saw india and the uk spike come down pretty rapidly, that same pattern would happen here but maybe not. if that is not happening what should we be concerned about? >> you're right. the delta variant, let's remember it's a global phenomenon. it is not just, you know within the u.s. right now it is worst spot is in asia. china, half of the country of china is in some version of lockdown. the rest of asia is making new highs, especially japan. that might be olympic related. but keep in mind, we keep talking about the supply chain disruptions we're having in this country, they're closing plants left and right in asia. that supply chain disruption will not go away anytime soon. as far as the uk, they peaked couple weeks ago. came down 50%. that is good, all of sudden they bottom. they're not going down anymore. they might be starting back up. it's a little early b

i'll bring an jim bianco.ta variant hanging around, it's more impactful, or action taken because of it and i've always said no one has been talking to general powell who seems to draw a line in the sand that covid must not be necessarily controlled but contained before the changes policy, how does this impact policy? >> i think you're right. next friday, he's going to go give a speech called the economic outlook. in that speech, is expected to lay out the case for the fed to stop it 120 billing dollar a month buying by tapering. but he's going to give you a bunch of offerings and i think one of the big crimes will be covid and it's going to be case counts because that seems to be the thing that matters when it comes to formulating policy among all the other members, i don't think it's right but that's the way they do it. they're going to do like robert kaplan in the fence did and downgrade their forecast and you could seek them take an offramp in the next few months should covid continue to rise with case coun

after a conversation with mohamed el-erian and jim be onto -- and jim be uncle -- jim be uncle -- jim bianco wondering if this is just inconsistency within the fed on key arguments. michael: the real difference is the folks arguing to leave the accommodation in place with qe argue that the fed promised it would keep rates low for a long time, and it is the promise, not the rates, that they have to live up to. if they say we are going to keep rates low until the end of the year and they don't, the next time they come back, the market is not going to believe them. the people who think they should start tapering soon are starting to look at the cash piling up in the system, and starting to worry that we are going to see some major disruptions to the financial markets. jonathan: thank you. where did tom porcelli go? he didn't pick up the phone. lisa: i think we scared him away. [laughter] michael mckee, great for you to jump in. looking ahead i think to jackson hole in some way, shape or form. equity futures up 20 on the s&p. in the next hour, seema stanley of amherst pierpont. this is bloomberg

lisa: jim b uncle was on bloomberg -- jim bianco was on bloomberg yesterday, talking about this beliefn stock investments that if there is a big draw down, and a big drawdown could be 5% to 10%, the fed will step in. they will decelerate their tapering. they will become even more accommodative. do you agree that there is this sort of implicit stop baking to valuations -- implicit backstop baked into valuations where they are now? sam: i think the fed will be stepping and should we see a 5% or 10% decline because those are fairly natural in the stock market, and i think if we do start to see the stock market fall into bear market territory and there is an actual risk to our financial system, then by all means, the fed will step in. but i don't really think the fed is going to be stepping in if we trip and fall and scrape barney -- scrape our knee. tom: we spoke yesterday of the anniversary of steve jobs resigning from apple. everybody, including me, got that wrong. steve jobs died tragically on october 5 10 years ago, and this guy tim cook, he can't do it. you have chronicled apple to t

listen to what researcher jim bianco told me yesterday. >> they're looking at number where last fridaye reported 900 plus thousand jobs, maybe down to 200, 300,000 jobs for august f that is the case that would be concern about the variant making everybody just say, i'm kind of holding here. i'm not going to do anything. charles: all right, constance. you have been spot on about the jobs. it took a couple months later than you said but the last couple reports you caught it but what about this delta variant and the wild card it could play with respect to stalling this recovery? >> yeah, sure, so absolutely a wild card but also localized, right? so we see much higher incidents of cases in states where we have lower vaccination rates and in most of the states where the largest states where we see a big part of our economy being produced we have pretty high vaccination rates. so i'm not, it is not that i'm sanguine, not that i'm unconcerned, certainly at the margin it has a chance to cut some off of growth but we're not seeing terribly increased string again sir, look at the fib number. loo