tom: we will see that with francisco blanch.ight now, it is a joy to bring in binky chadha of deutsche bank, their chief global strategist. tons to talk about in a three hour conversation. i want to first shout out the invention of modern deutsche bank strategy and economics. you guys are on fire. david folkers landau is looking out three years to inflation. your colleague george is near term, maybe going the other way. are you caught in the middle? binky: i wouldn't describe it as being caught in the middle. i think if you take an issue like inflation, which we really haven't had for 50 years now, it is the most reasonable outcome, that reasonable people will have very different views. i think that is exactly where we are. we have a baseline view that inflation is a risk, but the tails are pretty flat, and that is the key this morning. jonathan: we discussed whether you want to be banks or big tech. what is it for you? binky: i'm long in the banks. i'm also long energy. one of the dynamics one needs to keep in mind over the las

we will be all over today's market rally throughout the show coming up this hour, inferring, francisco blanch says oil could be heading a lot higher from here later we're launching a new series called curb your inflation. today we kick it off with rick reider from blackrock. >> mike santoli is tracking all of the action for us paul hickey is here, and elan sapporo. michael, said the scene for us we picked up more than half of what was lost last week it fell below the 50h day average. usually not the worst place. because the market had flattened out so much, it lost some altitude it seemed people had a rethink on the reaction to the fed also a lot of positioning got swept out in those three days of heavy selling. you didn't see any financial stretch anywhere else. so it seemed perhaps not much had changed. now take a look here at this whole growth versus value thing. this could suggest maybe the cyclical that is the russ the 202000 maybe is a lot to give up and it's exactly the reverse. there's actually cases to be made for both. i think it's why it's become more muddled. >> welcome to both of

tom: we missed $100 oil from francisco blanch. lisa: we've heard other wonder dollar barrels oil predictions, from trafigura group and goldman sachs. the idea here that we are flying around, traveling in our cars, moving around, and you're not having shale producers come back online. tom: a couple of things going on here. james foley to join us -- jane foley to join us. we look ahead to the qatar economic forum with the gentleman from south africa, cyril ramaphosa, speaking in a moment. this is bloomberg. good morning. ♪ ritika: with the first word news, i'm ritika gupta. national security advisor jake sullivan says the u.s. is working on additional sanctions on russia for the poisoning of opposition leader alexei navalny. president biden said he raised the case with president putin and made it clear that russia would face concert and his if navalny died in prison. spain's prime minister says he plans to pardon nine catalan separatists put in jail for their role in the illegal independence referendum in 2017. he will recommend tha

francisco blanch out of bank of america calling for $100 a barrel next year.why didn't you tell us this? [laughter] i'm telling you now, tom. tom: kailey is hiding secrets from us. [laughter] i'm hearing about this right now? kailey: that's the call, tom. demand is going to outstrip supply is the basic thesis from bank of america. we know those talks ended in vienna without a deal. do you need supply to come back to the market to meet all of this demand we are seeing at the world reopen? tom: lisa, i think she is one upping us -- one upping us. [laughter] lisa: i think it is a great string to bring up -- a great thing to bring up. are we going to see higher oil prices? are these coherent trades, given what we are seeing in the bond market? tom: chris verrone of strategic talking about $80 as the target, and i would suggest nobody has really framed $80 yet. then there is kailey leinz showing us up this morning with francisco blanch at $100. lisa: there are other analysts as well. tom: can this not happen again? [laughter] lisa: kailey, it is fabulous to have yo

i'm going with francisco blanch. we are grinding up. jonathan: wti slightly negative.hat's one part of the commodity market that has remained pretty resilient given the run-up we saw elsewhere in lumber. take your pick and soft commodities. tom: our guests on radio and television speak to us and make us pause. the last time matt burrell was on, he stopped us in our tracks on the dynamics of supply and demand in the bond market. lisa, i'm going to have you asked first question, but it's got to be on the supply or so-called heirs of it coming up -- so-called dearth of its coming up. lisa: are they becoming more credit worthy and spreads? matt brill of invesco, do you think that is what is going on here, that they are actually becoming more creditworthy companies? matt: good morning, everybody. i do think you are seeing just the fundamentals get better and better with the u.s. economy, but you are also seen corporations really tried to figure out how to get rid of last year's debt, and last year's debt was all about survival. so we have seen at&t, ge, ups, all big names l

for more, francisco blanch, at bank of america merrill lynch, head of commodities and derivatives, whato you think? we are having a hard time understanding $71 a barrel oil when you have iran probably coming back at some point, demand weak, and not sorting out all the variants in emerging markets. how do you understand that? francisco: we have the oil macro bulls versus the micro bears. the micro bears, one of the issues is a covid wave, but if you look at the macro picture, it is brightening quickly. we know vaccines are very effective, which means the u.s. is coming back rapidly and americans are getting on the roads and so europeans will be taking to the roads as well. and on top of that, you have issues such as inflation picking up. oil has been a big laggard across the commodity complex but also generally across all goods in the economy because demand has been lagging. alix: you don't think that $71 a barrel oil will see demand destruction? francisco: i don't think we will see demand retraction at $71. we talked about $71 a barrel being a bit of a wait on the market -- bit of a wei

lisa: why do you think francisco blanch is not correct when he says you could see crude getting up toper barrel? amrita: i don't think that is incorrect, it is the timeline. we have been the most bullish on the street for the longest. we put a forecast a year-and-a-half ago sing oil prices will go above $80 from 2020 to and could touch $100 because of the lack of investment we are seeing in the market and covid has accelerated it. for the short-term, opec+ does still have capacity in their armor. if you saw the heavens from india, consumer countries are dealing with opec+ and inflation is becoming an issue. prince of dual did highlight -- the prince highlighted that opec does need to do something to make sure inflation does not get out of hand. that is why it is unlikely we will get a huge surge this summer. prices will be high. you are unlikely to get prices significantly toward $100 or higher. lisa: what is the willingness as prices move higher for producers to not get tempted by the price and want to produce more? amrita: that has kind of been the old old pack -- the old opec. we h

wti and brent, a little later this morning we will catch up with francisco blanch of bank of america,triple digit crude. right now on brent, $74.52. we are down about 0.7%. that's the call from bank of america, and it is a big one. tom: two years outcome of the come back to $65 a barrel because microeconomics works, supply comes on, and down comes price. jonathan: that gets your attention in the equity market. let's say good morning to taylor riggs. taylor: we tried to get francisco on the show yesterday. they said you stole him for the morning show. you have goldman making the call of $100 a barrel in reach. some upgrades on individual stocks that you are not seeing the follow-through on some of the best-performing stocks we had earlier within that oil space. let's look at a place where we are seeing some action. norwegian cruise lines, they are getting improving booking momentum, but that doesn't help the stock. delta coming off of really strong we can within the travel space, trying to hire about 1000 pilots. you cannot get people back to work fast enough. finally, we shift to some