this is bloomberg. ♪ kailey: this is bloomberg markets. i'm kailey leinz. time for the bloomberg business flash. a look at some of the business -- biggest business stories in the news right now. pepsi report the fastest growth in years. others loaded up on ships and other snack foods. pepsico's second-quarter revenue rose 13% and the company raised its forecast. citigroup will let retail customers bent on stocks without paying fees. the bank is trying to expand its wealth business in the face of competition from silicon valley, discount brokerages, and peers. citi will make its products available for checking account holders before marketing it to other people. the cofounder of apollo management was passed over for the top job earlier this year. now he is laying the groundwork to start his own fund. he is meeting with recruiters to help build a team. the fund has a loose target of $5 billion. that is your business flash update. ev battery maker ses is set to go public by merging with ivanhoe capital acquisitions that will value the company at a combined $3.

kailey: as dr.d just yesterday it seems those pockets are highly politicized people who do not want to get the vaccine. when it comes to the vaccine at the number of doses people have, israel is going to offer a third covid-19 vaccine shot to those with weak immune systems. what are we going to know if all of us who are vaccinated are going to need a third booster shot down the line? dr. nyenswah: the data still needs to be studied. clearly we need evidence and make that decision. what is recommended right now is that people take the vaccine because it is one of the most preventative tools we have right now. tell their citizens to get the vaccine. kailey: let's talk about -- we are all looking ahead to fall in the start of the school year and there is the push to get students vaccinated. is it unsafe for students to go back to in person learning if they do not have a shot? dr. nyenswah: we recommend safe schools and by safe schools they have water sanitation, hygiene program. vaccination is still op

. ♪ kailey: welcome to bloomberg markets. i'm kailey leinz.n a few moments, we will break down the response to fed chair jay powell's testimony on capitol hill, and we will hear from ceos, on everything from the cannabis industry to fitness to hotels. irwin simon, adam gilchrist will be joining us. let's get a quick check on the markets. it is a risk off day in the markets. the s&p 500 and nasdaq 100 are lower. big tech is underperforming today. the nasdaq 100 index down by .9%. in the bond market, yields are continue to inch lower as jerome powell stuck with his transitory messaging. the 10-year yield down three basis points. i also want to point to oil. wti is down 1%, after falling 3% yesterday. it all comes down to the supply and the prospect that opec-plus will increase output as a deal with the uae seems to be getting closer. shares of morgan stanley in positive territory only by .1%, session highs behind it second-most profitable quarter on record. let's get back to fed chairman jerome powell, once again defending the central bank's sup

kailey: l.a.y nala telling people even if they are vaccinated, they have to wear masks indoors. will that be a deterrent for people on the fence? emma: it is not clear how mask guidance goes for those that are unvaccinated. the cdc song raising mask guidance as something that would get people to want to be vaccinated. we have not seen that play out exactly. it remains a big question. amanda: not a ton of time, but as those questions percolate, do you think those who have been unvaccinated be more persuaded, persuaded that they are now among the sickest? emma: i think this is an important moment for that conversation. we have seen only vaccination rates slow. if we see that data change, we can make that conclusion, but it is an important turning point. this is a really important time for people who are not vaccinated to see these results and think, maybe i should get a vaccine. amanda: the data is so important. thank you for being with us, emma court. this is bloomberg markets. ♪ and there you have

kailey leinz my taylor riggs, romaine bostick. kailey: good morning to you. what a morning it will be. just under one hour and 45 minutes from now, we will get the ecb decision followed by the press conference from christine lagarde. what are we going to get from the forward guidance changes now that we do have that symmetric inflation target and what does it mean for ecb credibility? can they convince the market that they can reach that target? that press conference from christine lagarde is starting at 8:30 eastern. also we will be getting jobless claims data. 350,000 is the print we will looking -- we are looking for. the fed is watching inflation, but also watching the labor market extreme closely. what i'm going to be watching closely after the bell, earnings. we will get a slew of them. intel will be interesting. we had texas instruments last night blowing it out of the water in the second quarter in terms of 41% revenue growth but a little cautious on the forecast. does that indicate that shift demand may be peaking and what does that mean for chipmake

[laughter] kailey: she does it very well.n: she will not be doing it next week because she is a week away. this is something she does. lisa: i'm joining the bears in the in around backs. jonathan: returning to your constituency. alongside lisa abramowicz, i'm jonathan ferro. special thanks to kailey leinz. i will run over to the tv studio. on this bond market, priya misra of td. that is a big conversation coming up on "the open." this is bloomberg. ritika: with the first word news, i'm ritika gupta. in california, los angeles county told residents they must wear masks indoors, even if they are vaccinated. authorities are reacting to a surge in covert cases and the spread of the highly contagious delta variant. delta county added 1000 new cases yesterday for the seventh day in a row. 10 million people live there. in cuba the communist government is promising it will learn from the mass protest over the weekend. authorities will temporarily ease restrictions on food and medicine imports. thousands of people took to the streets

kailey: aoc is the one to watch. the divergence between nancy pelosi and progressives like representative alexandria ocasio-cortez and her coalition, nancy pelosi has her work cut out for her, writing that in and making sure the progressives are satisfied and making sure we still get a package that can be passed in the senate with moderates like joe manchin of west virginia. jonathan: alongside lisa abramowicz and kailey leinz, i'm jonathan ferro. tom keene back with us on monday. your equity market declines, -0.7%. just a bit of a risk off stance this morning. heard on radio, seen on tv, this is "bloomberg surveillance." ♪ (announcer) back pain hurts, and it's frustrating. you can spend thousands on drugs, doctors, devices, and mattresses, and still not get relief. now there's aerotrainer by golo, the ergonomically correct exercise breakthrough that cradles your body so you can stretch and strengthen your core, relieve back pain, and tone your entire body. since i've been using the aerotrainer, my back pain is gone.

tom: kailey leinz, what do you see on the delta variant?hat is your reporting this morning on the new tone of this pandemic? kailey: it is interesting because on the one hand, the numbers would tell you things are getting worse, at least when it comes to cases. look at the u.k., north of 50,000 new cases reported saturday. but it is not necessarily following through into hospitalizations and deaths. that is where the vaccine comes in. people may beat has been positive -- people may be testing positive, but they are not getting sick, so what is the response? president biden still saying there is a pandemic, but it is within the unvaccinated population. the divide looks very different for each of those groups. tom: as we get to our esteemed guest on fixed income and how it folds into global dynamics, i've got to look at a european week here. i've got german yields enjoying what the u.s. is seeing. the swiss 20 year, my personal benchmark, now -0.01 points. jonathan: if we get a dovish news conference, does that lead to lower or higher yields?

kailey: it is so hard to know.ord we use quite often, consensus, how so many of the consensus calls have broken down. it is hard for me to imagine that is something that is going to change in the back half of the year, given all of the unknowns that are still out there when it comes to monetary policy, when it comes to the delta variant. how can you really make a call? jonathan: stag light. is that going to play? if that going to be the header in south side research? lisa: all of those words, transitory, stagflation, stag light. [laughter] jonathan: if you are joining us on tv and radio, welcome. we are down 0.7% on the s&p 500. yields lower by two or three basis points to 1.24%. euro-dollar unchanged at $1.1887. tom keene back on monday. this is bloomberg. ♪ >> growth expectations are coming off in the second half of the year. >> growth is going to be strong, just not as strong as the first half. >> we are still getting some very high and potentially very concerning inflation readings in the near-term. >> there ar

kailey: we will see what is in store. biden is waiting to hear from his people and whether they would recommend reopening the travel corridor going the other direction, allowing europeans to come back here to the u.s. lisa and i did this on sunday, coming from greece to new york. no problem at all. if we were greek trying to come to the u.s., we would not have been able to do that. is that going to change? the administration calculating the delta variant into that equation, so it is still an open question. jonathan: you make the important distinction, what is the science behind that? people would want to know, even if the rules don't change. lisa: how much could we potentially get reversal if the delta variant picks up? in conversation with friends, with other parents, people are really worried about the school year and what happens if the fall does bring a resurgence in cases. we just don't have an understanding of what the threshold is for this to become a public health threat. -- a public health threat. jonathan: some

kailey: details matter. there's a question of once they start tapering, does this necessarily mean rate hikes within 12 months. how important is it, in your view, for the fed to distinguish these two measures? to say we can be flexible in how taper we sting -- how we taper the stimulus and what that means for hikes down the line. jay: i think most market participants understand the distinction. if you go back, there's an interesting playbook. this is eight years ago or nine years ago. they ended this at 2014. i still believe we are a long way away from that. there's another communication device called the dot plot. the majority of members don't think there's going to be raising rates before 2022. we had this before. the bond market is spooked given where 10 year yields are. we are a long way from --. jonathan: good to catch up. thank you. the blows are down about 31. here's the headline to get your attention. the fcc has stopped ipo registrations for china companies. for companies from china. i know the reac

this is bloomberg. ♪ ♪ kailey: live from the -- from new york, i'm kailey leinz come along with guy johnsonlondon. this is "bloomberg markets." we are expecting president biden to make remarks after this payrolls report. we just heard from u.s. labor secretary jonathan walsh -- secretary marty walsh, speaking with jonathan ferro. joining us now is julia pollak, ziprecruiter labor economist. can you describe for us how much difficulty companies, people looking to hire are having in getting people to fill the roles they have? julia: the economy added 850,000 jobs, and that is great news, but it could add even more if there wasn't this constraint on the growth in jobs at the moment, which is the labor shortage. so labor force participation remains flat, and that is really putting a break on hiring. we could see even greater fireworks in the labor market over the next few months as that constraint relaxes. guy: do we have to wait until we get through the summer holidays? do we have to wait for kids to go back for parents to return to the labor force? do we have a couple of months where nothing

kailey: thank you for your insight. coming up, french and european leaders meeting to discuss the economic recovery. gilles moec will be joining us live from the conference, next. this is bloomberg. ♪ ♪ kailey: let's check in on the bloomberg first word news. off the coast of hawaii, a boeing 737 cargo jet made an emergency landing near honolulu after reported engine troubles. the coast guard rescue to the two crewmembers aboard. the plane was attempting to return to honolulu. u.s. payrolls rose in june by the most in 10 months. employers added 850,000 jobs last month, led by strong gains in leisure and hospitality. still, the on and limit rate ticked up because more people voluntarily left their jobs and the number of jobseekers rose. opec and its allies are locked in a tense diplomatic standoff. they are trying to resolve a dispute that threatens to send oil prices higher. they appeared to be on the verge of an agreement yesterday, but then a dispute broke out between the united arab emirates and the coalition leaders

kailey: we heard from dr.hony fauci yesterday saying that this administration is practically "pleading with people." this administration is trying to take a localized approach. this is going to be an uphill battle, though. the president was saying that what is happening in this country, there is a small collection of people that are nudgable. even if you give them a couple of benefits, there is a celebrity endorsement, would you take the vaccine -- they are still taking -- they are still saying no. there is a lot that still needs to be done as far as to medication with communities that refuse to get the vaccine. jonathan: do we have an access problem anymore? do we really still have an access problem? kailey: you do not even have to go to a doctor's office or physician. you can go to a local pharmacy. these are more in big metropolitan areas. in the rural places, they are sending in doctors. they are sending in rvs. there is a problem of people wanting to take up the vaccine. potentially, there was this talk a

tom: kailey, do you want to weigh in? kailey: i'm having fun watching you guys.onathan: you enjoy yourself. basically at the lows of the session for the u.s. 10 year. tom: i am watching real yield. let's define this right now. you've got a nominal yield which is what jon is quoting, at 1.24%. you've got the inflation expectation. you take that away. then you've got the residual, which is the so-called real yield. so they don't move directly link. i've got -1.09%, awfully close to -1.12%. jonathan: the -1.12% you point out, the lows of the year. what we are unwinding here was this immensely large, positive growth shock we experienced through to the end of march. this is when people were aggressively upgrading their outlook for the economy. we have really unwound that. in fact, we have totally unwound that. my issue with the bond market at the moment, pick an expert right now, pick someone on wall street . his immense confusion about what is going on in the bond market at the moment. tom: we protect the copyright of all of our guests. get it from in km partners. mi

kailey: has it mattered for some time? spreads have widened out in july, but we are still at 282 basis points and that is the story when you look at a one-year chart. it is remarkable. i am not sure anything fundamental has my -- has mattered much for over a year now. jonathan: this is the trouble with this credit market. it was j.p. morgan that said spreads are supertight, valuations are rich, but i am not sure what would take them wider from here if the fed is in the game. lisa: the concern, delta announced that they are going to buy back billions of pandemic era bonds. this shows they are taking their cash and putting it to that rather than investing in the future. what is the consequence of that overall for the economy? jonathan: we will talk about this credit market at 8:00 a.m. eastern time, the chief investment strategist just 30 minutes before we get retail sales in america. here is a set up. equity futures 43.56. for our audience worldwide, this is bloomberg. ♪ ritika: with the first word news, i am ritika gupta.

kailey: 55 million shares.nder and cfo -- we have been waiting for what feels like a really long time for this robinhood ipo. we got the prospectus a few years ago -- a few weeks ago. jonathan: some of the numbers to look at. this coming this morning across the bloomberg terminal, china's state security involved in cyber intrusion. four chinese nationals have been charged with computer intrusion. tom: this is from the department of justice. i looked to get an update on huawei and these fractious relations between china and canada and the u.s. that vancouver process is still in process in vancouver and now you have got this. jonathan: when these things play out publicly, more signs that there is a breakdown between the u.s. and china. tom: this is one discrete headline. nevertheless, frankly, it does fall over to what we do here. jonathan: that is a developing story. equity market lower on the s&p. a week of losses turns into a morning of losses. -32 on the s&p. yields are lower, too. the dollar is stronger. fro

jonathan: does kailey leinz eat domino's? kailey: all the time. jonathan: i did not know this.r is the same way. a little bit aged, i should say. jonathan: this shows off the rails, isn't it? we need to get some movers outside of domino's. tom: romain will save it. romaine: good morning. i think that is the sound of a lot of new york italians cringing here. let's look at the individual movers. we want to talk about what is going on in the chip sector because a lot of activity in the premarket around these names. texas instruments last night, it was pretty much saved by the pandemic. this was a company that had seen a retraction and revenue growth for seven straight quarters. then the pandemic hit, and all of a sudden it was hitting double-digit revenue growth for the last four quarters, including 41% in q2. but it got a barrage of questions on the conference call last night about whether there was some sort of peak here and if things were going to revert back to the norm. the company didn't really seem to have an answer for that. they talked about how their backlog was relative

kailey leinz has the stock for you. i have ibm off of a fundamental earnings story reported after the bell last night, the best sales growth this company has seen in three years. the reason why is cloud. really a vindication of the new ceo's strategy to shift more towards that business. as a result, the stock is up the better part of 4% this morning. you have been all over the travel story, particularly for the airlines. the airlines off i -- off by a quarter. royal caribbean, delta airlines each up the better part of 2%. one-story we haven't talked about, bit dog under $30,000, a very closely watched level when it comes to the technical strategists. as a result, that is weighing on crypto tied equities. marathon digital, coinbase each down. tom: i'm glad you bring it up. i did a technical analysis of bitcoin this morning. it is not our job to give an opinion on what we see, but i will be blunt, it is negative. we will see how it goes. all sorts of enthusiasm up, and then spikes down, and now some real giveaway here at

kailey: i've learned that beats actually do matter this season. in quarters past, even if you beat expectations, that wasn't good enough to meet the high bar that has been set. this season feels a little bit different. it feels that earnings are giving an impetus to risk appetite. that seems to be what is fueling the risk on feel in this equity market, putting any fears of the delta variant or the growth outlook kind of to the back burner. tom: an important conversation on investment allocation any moment. there's only one data point today for me that matters, the 10 year u.s. yield, 1.30%. jonathan: 1.2950 percent right now. it has been all over the place. what a trip, from 1.12% to 1.30%. on what? we have taken on a life of its own in this bond market. tom: i am going to go delta variant is in the mix. maybe congress is in that mix. but to me, it is about a boom u.s. economy. do we see any lessening of boom economy feel? i don't think so. kailey: i think many -- jonathan: i think many people think we have seen the peak of it. that conversation h

kailey: so what will change us directionally from the near-term? we going to be stuck here for a while? priya: the next couple of weeks, i don't see much of a catalyst. we do expect higher rates. we expect fundamentals to reassert themselves. our view is that the delta variant is not going to delay the recovery in the u.s. but over the next couple of weeks, the data is not going to tell us one way or another. covid infections might continue to rise i'm actually concerned that the market stuck here for a while. it is really september. let's see once school is reopened comedy people come back to the labor force? how is the fed tapering decision? i think all of that is when rates can rise. in the near term, i am more concerned about how much more position capitulation or hedge income which brings more demand for treasuries, so we might be stuck here low rates for a while. kailey: does the dollar have any bearing at all to the moves we are seeing in now? tom: i think it does -- priya: i think it does to some extent. you actually do see that u.s. crude

tom: i've been off two of the last three weeks. ♪ moon river ♪ jonathan: good morning, kailey. >> kaileybout china. there's education -- those education stocks are reflected in the u.s. adrs this morning. take a look at new oriental education, down 24% this morning after falling 54% when this news was originally reported on friday. analysts at berg intelligence say new rules from china could mean an 80% in decline for sales . tlw is also down this morning, and other chinese companies listed in the u.s. not necessarily in the education sector are under pressure. we already know it has come for didi global which is down another 12% today. one basket of stocks is basically anything tied to could know. bitcoin nearing $40,000 once again. that is leading to news for some of those crypto related equities. microstrategy getting a nice lift as well, and coinbase up about 6% at this point. tom: we have been talking about economic views, as one says tomato and the other says tomato . seema shah joins us with principal global investors. do you care about the nuance of economists right now and how y

kailey: higher prices and lower accessibility forced millions into food poverty. greater supply does not always mean fewer empty bellies. >> how do we fighc

kailey: is agriculture in need of another revolution. >> the big thing in agriculture is saying what to get farmers to volunteer for carbon sequestration. >> with the help of new technology can it clean up its act? >> today we estimate approximately one in nine people in the world experience what we would call food insecurity. >> higher prices and lower accessibility have forced millions into food poverty. why greater supply

kailey: a full recovery of demand by 2023. if you've been traveling, you would think there was a full recovery demand this weekend. we are hearing from companies like united. we will get some others later, really talking about this delta variant. it does not seem to be impacting the bottom line for now. jonathan: let us look through the price action quickly. on equity market, the s&p 500 advancing 17 or 18 points, up 0.4%. bond market yields a higher by two basis points. this range has been on year -- has been on real. 1.2467 right now. the two day meeting at ecb right now. taylor: let us talk about those yields. you mentioned the 10 year. we are also looking at the 20 year bond auction. we have been following these closely. you can get a 20 year for about $24 billion. nine basis points in two days. it is a rate of change kind of day. this is not a bad word, but it is called the b-word event. it means the bitcoin event. it always comes back to fundamentals. we heard from netflix, from united airlines. it is going to be texas i

stay connected with francine lacqua in london and kailey leinz in new york.n the day ahead. bloomberg surveillance, early addition. weekday mornings on bloomberg television. mark: i am mark crumpton with first word news. a total of 950 people, including journalists and officials will watch the opening ceremony of the tokyo the big games tomorrow -- told of you -- tokyo olympics tomorrow. that number does not include performers and athletes. organizers decided to bar spectators from venues in tokyo because of the coronavirus. australia, whose covid zero approach was once zeke gold standard, has been struggling with increased covid cases. the countries trade minister tells bloomberg that there is a new vaccination push. >> we have supplies coming into the country. we are about to ramp up quite considerably the vaccination rollout. we are reasonably comfortable, very comfortable, that we will have a vaccine by the end-of-the-year. mark: the minister also says australia will work with the united states on global trade

kailey leinz's dad is a fighter pilot. he can fly up there in an f-16.t now, he went up on friday and look at the american employment commodity, tom porcelli joins us of rbc capital markets. inflation-adjusted wages are not there. do you just presume that somehow , we get inflation-adjusted wage growth? or is that going to be something we cannot attain in the coming quarters and years? tom: first of all, good morning. hope everybody had a good holiday. something like that is going to take more time that an otherwise would in the context of we have a lot of inflation right now. the fed keeps telling us it is transitory, so i think these inflationary pressures, it will take time for that idea to develop. what we have to keep in mind is as we look at wage pressures, very very present. they are starting to build. i think it will take time for them to push into more of a positive territory when you adjust for inflation, but no one can deny they are moving in the right direction. this is an idea that takes time. tom: those expectations came in a little soggy.

taylor: kailey leinz. jonathan: taylor, c friday. thank you. -- taylor, see you friday. t minus 19.w york, this is bloomberg. >> the coronavirus has taken a toll on u.s. life expectancy. it dropped the most in more than seven decades last year due to hundreds of thousands of early deaths. the pandemic disproportionate toll on communities of color widened the existing gap of life expectancy between white and black americans. all of this information according to the cdc. widespread flooding in central china has forced the evacuation of 100,000 people from the city known as the world's biggest production base for iphones. the city received 18 inches of rain from monday afternoon through tuesday. that was equivalent to about eight months of average annual rainfall. coca-cola is bouncing back. the soda maker second-quarter sales beat expectations and it raised its revenue forecast for the year. that is evidence that consumers who are locked down a year ago are now returning to reopen restaurants, amusement parks, and stadiums. jamie dimon is 65 years old but it does not look like retirem

alongside tom keene, i'm jonathan ferro, together this morning with kailey leinz.isa will be back next week. you've got morgan stanley's mike wilson who still believes the index level correction is in front of us, not behind us. tom: different opinions out there, that's what makes the market go. i am going to scientifically say we are 2/3 of the way back from the agony of a few days ago. i'm watching the same thing i was watching and preparing for six weeks ago, which is earnings reports. j&j this morning, they up the forecast. jonathan: the outlook for coca-cola better, too. i'm looking at the rates market, looking at treasuries, and witnessing the consensus view totally break down. the last 24 hours was a contested example of that, just capturing the degree of uncertainty that still exists and persists. one point what he 5% this morning on tens -- 1.25% this morning on tens. the market living its own life. tom: i am going to suggest uncertainty is what drives the market. coca-cola, which i haven't even looked at yet. but all of these individual stories sum up to

kailey: one of the most important aspects of the testimony yesterday and what he might say today is fedhair jay powell comments on housing. when you talk about elevated asset prices and the potential for market distortions, to have a real-world impact that is very much the forefront of his focus. i am curious what jim bullard says about tapering mortgage-backed security purchases. tom: all of it wrapped around you morning of data and claims coming up. in the vix, 17.93 isn't gloom, but it is not the day after day bull market we have seen. jonathan: let's keep it brief. bid into the bond market, down two basis points to 1.3257%. for our audience worldwide on tv and radio, morgan stanley down about 1.36%. just a little lighter on fixed income trading again. forget james gorman back on wall street. tom: it is a regime change. actually, nothing has changed. michael mckee is at some place romantic, while lisa and i are in the chill of a cold summer in new york. michael mckee is at the summit with an interesting german from st. louis. michael: good morning to you. we are here in victor, idaho

. >> this is bloomberg surveillance: early edition with francine lacqua, matt miller and kailey leinz. matt: welcome to bloomberg markets on this monday, july 5. i am matt miller with dani burger in london. high-stakes standoff. saudi arabia and the uae ramp up the tension in their opec dispute over oil production. we will continue to cover that for you. china tightening its grip, beijing expands its latest crackdown on the tech industry beyond ride-hailing giant didi. they pull others into national security concerns as well. joe biden's mission accomplished moment. the president all but announced -- -- the president all but announces an end to the pandemic in the u.s. is the mission really accomplished? we will talk about that as well. dani, what are you seeing in the markets? dani: we didn't get the number above 70% and then you had -- giving away free beers. how is it not mission accomplished if the u.s. is giving away free beers? matt: that is how they will spin it. dani: the vaccine rollout is going on, so that is good news. when it comes to the data, it really is all about opec