tom: we will have david rosenberg with us.esearch is slicing and dicing inflation. -- howosenberg on how we he melds his economic view into two america's. david rosenberg will join us. this is bloomberg. good morning. ♪ it's moving day. and while her friends are doing the heavy lifting, jess is busy moving her xfinity internet and tv services. it only takes about a minute. wait, a minute? but what have you been doing for the last two hours? delegating? oh, good one. move your xfinity services without breaking a sweat. now that's simple, easy, awesome. xfinity makes moving easy. go online to transfer your services in about a minute. get started today. ♪ tom: this morning, oh the humanity. s&p 500 down 5%. nasdaq 100, 8% down. all of that back to valentine's day, pre-pandemic. the 10 year yield. we consider a post-inauguration stock market. seven days in may. what will postelection stimulus look like? seven days to the election, what are trump and biden doing today to win next tuesday? then there were nine. amy coney barrett rep

emphasizing that is david rosenberg. icing and dicing inflation, folding it over into market reaction. david, let's begin with inflation. -- in europe with a five year breakeven, do you assume a and largerd rising inflation in the years to come? time: i have a tough believing that inflation is going to become a sustained problem, at least for the next three years. the outlook cap, or, the differential between aggregate demand in the united states is far too high for me to be worried about inflation. -- i know that it has become a headline of late with breakeven levels, my forecast is a bit different. i think the consensus on this doesn't mean we are going to go through a period where some of these cost pressures in the material sectors deep through. inflation is a process. have continuously accelerating prices, not to just one off level shifts. i think the narrative has overdone it on the inflation side. it is going to be years before we see -- sight reading eye your stuff at merrill lynch. the basic theme is different be

tom: i am glad you bring this up because david rosenberg was brilliant on this.k a screen grab and put it out on twitter. the service sector inflation dynamic is original. all you need to know is service is sustained at 3% inflation, and that disinflation has dropped like a rock. goods inflation has come back and that is the inflation fear we heard be earlier from chris water of longview. rosenberg was heated about the service sector disinflation staying here with reduced aggregate demand. jonathan: and a couple of minutes i walk away. we have a big week of tech earnings. what are you looking for this week? thursday after the close will be huge. october 29, when we get those earnings, microsoft after the close, lisa mentioned that puritan amazon, apple, facebook, others as well. tom: i read every word from citigroup on apple yesterday, i read every word from joe feldman at amazon. they are both bulls. doug cassidy is grim on some of the outlooks. i look at it and it is almost 101. i'm just trying to observe. the only store busy on madison avenue is apple. that is

this goes right back to what chairman powell and david rosenberg said the other day. there is service dynamics, service disinflation, may goods come back to some form of zero or outright deflation. this is what we got. in the lethargy, we have a disinflation. jonathan: let me jump in. maybe it is just the mood i'm in. what are we arguing over? 50 or 60 basis points on the pce? let me just finish. cpi court in europe is 0.2%. that is what a problem looks like. i do not know if 1.5%, i do not have we should be obsessing over this like the fed seems to be every single month. michael: i do not think the fed is obsessing over it and i do not think it is a problem. it is disinflation, not deflation, and more the trend of than the actual numbers. it matters more to people in the fixed income markets in terms of your positioning for what you want to buy and sell. it is not really an issue for the fed. they do expect this to happen. it is much more of an issue in europe and christine lagarde had to answer questions about their forecast for negative inflation or deflation for a

let's bring in david rosenberg he joins us by phone i would imagine you are less optimistic even thanair rich clarida that it will take a year to get to the gdp growth we were seeing david? >> look, i think there are so many -- we have to make, including how long the pandemic going to last and how effective and how widely distributed the vaccine is going to be you are making wild assumptions how all of that is going to affect people's behavior and making assumptions on the political backdrop and the fiscal stimulus we are going to be seeing. larry summers coauthored this report last week showing that the hole in the economy over a ten-year period is going to be something like $15 trillion. so it is not just getting back to, you know, last year's level. it's getting back to the baseline growth rate of the economy that would take you back to full employment that's really the we when do we eliminate the inflationary notebook gap? that's three or four years down the line. >> if we do get full stimulus and vaccine in the next months, where would the yields and stocks be in 12 month's time.

david: uncertain environment. thank you so much to courtney rosenberger, director of policy research at strategas. is is bloomberg. ♪ david: we want to take a look at the markets. election is moving different stops in different elections -- in different directions and scarlet fu is here with the report. scarlet: earlier this hour, twitter says it is adding extra steps when users retweet. if you are trying to retweet something twitter has already posted as false, basically twitter will show you a prompt that takes you to more credible information on the topic. it will also be harder to blindly retweet posts. you'll be prompted to add your own comments at the top. some of the best performing sectors are infrastructure related names. k-pop of the democratic sweep are leading to bets of more stimulus -- talk of the democratic sweep are leading to bets of more stimulus. in this week's vice presidential debate, kamala harris mentioned decriminalizing marijuana and expunging criminal records. fitzgerald says these are bullish comments and see significant upside for the sector in a democratic sweep. we cou