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tv   Bloomberg Surveillance  Bloomberg  April 28, 2021 6:00am-7:00am EDT

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but how much does behavior change. >> you will see a shift back toward services and that means taking some of the pressure off of this sector. >> what we have to figure out is are we heading into a period of peak data and that historically has been met with corrections. >> all eyes are on what constitutes the financial progress. >> long-term big picture the fed has a long track record of controlling inflation but it could come at a cost. >> this is "bloomberg surveillance. francine: the biz -- jonathan: good morning. this is "bloomberg surveillance." equity futures positive bio must attend the 1%. a chairman powell news conference later in washington. a presidential address and a ton of earnings in between. tom: in one hour we will see more earnings.
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apple has gone from 26 good jillion shares to 16 to jillion shares over eight years. they have retired 38% of their stock and -- in let's call it a decade. why is that going to stop and that's one of the major thrusts, a big tech witnessed the alphabet share buyback. jonathan: $50 billion buyback. when we talk about google and the 30% rally year-to-date from that company, it's unreal. tom: we do not talk to each other before the shows. lisa and i sometimes commiserate. jonathan ferro and i are not on speaking terms so it works. you and i are on the same page. year-to-date returns to these equity markets and they haven't got enough love so far. jonathan: nobody thinks it's a shock that you and i don't talk. lisa and i do talk. this is a clean reopening story
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with google. 3m yesterday talking about transport costs, raw material costs. google is not talking about that. alphabet and the ad business has great exposure to reopening in america without the worries about cost and you saw that yesterday. lisa: that's the biggest idea. that big tech is exposed to the cyclical trade with respect to increased ad spending as well as leverage to the tech world which will only continue to get dominant as people move to a work from home environment. we are seeing that stick with a number of banks even as people get back to the office. jonathan: got to head down to washington, d.c. and get an update on the presidents family aid plan. we will do that later in the program. equity futures look like this. in and around all-time highs. we advance almost a 10th of 1%. in the bond market, did you see the selloff?
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it's picking up. yields up two basis points on a 10 year. in foreign exchange, short of 120 -- 1.21. a fed decision and chairman powell news conference. lisa: the seven year auction approve proved to be a hiccup. what you are talking about -- proved to be a hiccup. jay powell will be giving a press conference, a substantial further progress. what does that mean? will they double down on the idea of transitory in the sense of what they are looking for in inflation but what is the measure of progress in the labor market. apple and facebook, we will get both of those earnings. apple exciting a lot of discussion about supply chain kinks and a pretty massive earnings after their announcement ahead of any
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potential ramifications on the regulation side. facebook, interesting to see if they will enjoy the same boom from alphabet in terms of revenue from advertising. 9:00 p.m. is that american families plan announcement from joe biden. we have gotten a look at the proposal. $800 billion of tax cuts and credits. $1 trillion of spending. this in addition to the infrastructure spending plan. on top of the one point $9 trillion plan he passed in the beginning of the year. i cannot keep track of all these proposals. what is realistic? what has enough support within the democratic party and possibly on the fringes to actually get through. jonathan: it's a race to get things done in washington, d.c. want to touch base on the stock moves in the premarket. it is alphabet, absolutely flying off the back of better earnings. and off the back of a $50
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billion additional buyback plan. tom: microsoft didn't do all that shabby as well as -- though not as well as google. stanley black & decker, you mentioned 3m yesterday and they are raising their organic revenue growth. they see organic revenue growth. 11% to 13% for the entire year. this is a company that makes drills. tom: -- jonathan: have you ever used one of them? tom: i was like can you come up and fix this. jonathan: i bought some black & decker's. tom: could i see you at like 3:30, thank you. jonathan: we are both familiar with the heritage and unfamiliar with the product.
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citi global head of investment joining us now. let's talk about the key discussion. the best way, the cleanest way to get exposure, a durable exposure to a better american economy? >> i want to be tom's repair man. this is a pretty extraordinary time and you hit upon a couple of themes. incredible revenue growth for technology companies and the benefit of course to their stocks. that's what's benefiting the economy. it's incredible efficiency and flexibility of companies, a and u.s. companies. using the great example, the idea of what growth is to come. when we talk about an economy growing 68% after pandemic, one is the ability to spend in the other is due to household savings and that ability to spend is due to the fact people don't have the opportunity to leave their home to do work for themselves.
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what we are seeing is a pent-up demand from a consumer as well as the stimulus and the fact people will begin to act as they did a year ago. all of that is happening at the same time. another question you asked was what is the standard. some companies are going to be able to keep this boost of revenue, a company like ups asked -- reporting extraordinary shipments and things like that. to the extent people continue to work from home, that will continue to take place. this change of behavior that will be underway, that's going to be a big deal. more people are adapting to work in the future based upon what they learned in the pandemic, the more we have the sustainable revenue growth. >> the big fear out there, we see it's a long way for different reasons.
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units price revenue down we go and on the income statement we will see some forms of margin compression. i do not see it. david: i do and i think you will see it on a temporary basis as certain things are really in short supply. when the economy reopens the other thing is we will have all the inputs except for labor, all the inputs will go up a great deal by all the commodities. the cost of shipping goods and services, the fact that there will be the way i put it 16 months of inventory needs to be produced in 12 months and not only satisfy current demand but to refill the supply pipeline. that will cause some delays and it will cause some prices to go up. i also believe this will be passed onto to the consumer because the leaders will want the margin compression. that brings up the idea of inflation. and there will be temporary inflation over the course of the
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next 12 to 18 months. we want -- the only thing we love and fixed income markets are tips because they capture this type of incident -- consumer inflation. it won't be forever. lisa: the temporary inflation boost hinges on the idea we won't get immaterial shift on the economy. google announced a $50 billion share buyback. is that good or bad for you as an investor after all these investors say they want to see investment in the infrastructure of companies, the investment in natural productivity going forward. share buybacks does not get that done? david: when you are handed literally boatloads of cash because the fact you are investment is in human capital. if you think about it, who else does it benefit? it benefits their employees as well. they simply do not have the internal research and develop and costs that are required
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necessarily to sustain the growth they have. it's going to be hiring new human capital. they will do that and that's why they will benefit shareholders and employees by doing so. jonathan: great to catch up on this market. a little bit later, apple coming up after the closing bell. following what we had with microsoft and alphabet. amazon is on deck. tom: rumors on apple, the leadership here of course from our wonderful mark gurman who is front and center. they are already modeling out a press release of the next chip. apple is looking beyond with all the investment in north carolina. the chip is substantially fancier. maybe we will hear about that today. jonathan: do you know how any messages i've had about a potential stock split? that's what you want. tom: i don't care.
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jonathan: explict -- tom: explained to me why we have a $3000 stocks -- stock price. this is part of the american fabric. they are to bring it down to a dow equivalency so they can join the index that matters. jonathan: it's 2021 you don't have to be in the dow. there is such thing as fractional share ownership. do you want to be -- do you need a stock split in 2021? tom: amazon should be in the dow. jonathan: i'm not a bite back. too much energy for later on today. i'm just knocking to do it. tom: jerome powell quotes the dow. jonathan: when they look at financial conditions they look at the dow? tom: no they do not. this goes back to my mother. she used to sit there with a martini in her hands screaming
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about the dow. jonathan: jonathan: coming up, julian emanuel l. -- julian emanuel. the family ate plan down in d.c.. no interest in arguing about the dow this morning. here we go, s&p 500, futures up three. tom: jonathan ferro faces formal probe over apartment refurbishment. jonathan: this is bloomberg. ♪ >> with the first word news, i'm rick took a gupta -- i'm ritika gupta. president biden will unveil a plan for childcare and families that will be paid for by the largest tax hike on wealthy americans in a decade. the child tax credit would be extended, meanwhile fund managers would lose their
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carried interest tax provision and the top tax rate for individuals would go back to 39.6%. fed chair jerome powell is expected to maintain aggressive support for the economy. fed policymakers wrap up a two day meeting today. they are said to hold interest rates near zero. they are expected to repeat a pledge to keep buying bonds at the current rate of $120 billion a month. a grim milestone for india, the number of deaths from coronavirus went over 200,000. an increase in infections outweighed to decline in most other regions. a record 5.7 million. deutsche bank has shown its strongest quarter in seven years and raised its outlook. they outperformed most of their peers on wall street. buying and selling that security at 32%. they avoided loss on the
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archegos capital management collapse. global news 24 hours a day on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i'm ritika gupta, this is bloomberg. ♪
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>> if you go up to 40% capital gains tax, that's a big problem. that's a huge headwind for the
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stock market. another huge headwind would be the wealth taxes we are talking about. though see much less likely to pass to me. but those would be other issues that would gravely discourage small business investment. jonathan: the double line capital ceo and cio. good morning. here is the price action this wednesday morning. ahead of the fed and an address from the president of the united states. future slightly positive. in the fx market, the euro-dollar stable. negative by about 2/10 of 1%. yields have been increasing higher, that continues today up another couple of basis points. tom keene bringing up apartment refurbishment so let's talk about one the took place at downing street. it's unclear how that refurbishment of that parliament -- apartment was refurbished and
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who funded it. the u.k. prime minister facing a formal probe over his apartment refurbishment. that's what you were alerting two. tom: mary todd lincoln having it out over what she spent, really having to work on that. our good friend george osborne was probably called in. you've got to know boris picked that fabric to get it done. jonathan: i'm not in a position to confirm that. tom: 10 downing street, it's got to look nice. jonathan: it depends where the money comes from. tom: i would have done it in tots blue. chelsea blue would be a bigger statement right now. jonathan: ok. as we move on from there. such a quiet morning. tom: david westin leading our
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coverage tonight on the president's speech. benjamin joins us. i read nancy's article carefully. is this thing dead on arrival or will it be subject to amendment in the coming months? ben: this will be the centerpiece of a lot of back-and-forth in d.c. over the coming months. everything that's in this plan that we will hear about tonight is quite unlikely to make it over the finish line. this is the opening salvo. what we hear from the president is a lot of things americans watching tonight probably sounds pretty good. you will hear about free pre-k, you will hear about more money to be able to go to community colleges for free. you will hear a lot of things that he talks about during the campaign and a lot of americans probably would like. so i think what he's going to do tonight is sell this not to the
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200 members, it's good to be less than normal because of the pandemic in the chamber but he will be trying to sell this to the american public. tom: mcconnell in kentucky calls it a liberal whistler. -- with list. -- wish list. jonathan: what is in this that is surprising to you? ben: these are things he did talk about on the campaign trail. there is some surprised just how much the president is going forward with some of the things the progressive side of his party have wanted for a long time. there was some thought we weren't sure where president biden was going to lead from. he's always talked about trying to be that dealmaker. you look at the senate and that's what he was. we are seeing a lot of things progressives have wanted for a long time. it is not a surprise because he talked about it during the
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campaign trail but he is coming through for a lot of things. lisa: what is the strategic logic in introducing this $1.8 trillion bill right after the two point $3 trillion proposal for infrastructure spending that is still very much not off the ground. ben: i think that is the open question. you can look at it on one hand and it's a little bit like flooding the zone. everything is coming out. you mentioned earlier it's even hard to keep track of these proposals. this is the third big $1 trillion plus plan. one of them has gone through that the president and white house have put forward. what they are trying to do is put everything out there and see what they can get. i think we will see a lot of back-and-forth here. >> they put the estate tax out and i believe that was jettisoned in the last 48 hours. what's the next tax lift to be jettisoned? ben: there's a few things in
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here that republicans are certainly unhappy about. one thing i'm particularly paying close attention to in here is carried interest provision. back in 2017 and the fight with trumps tax cuts, that was a big win for private equity. they were able to keep that in there, holding investment for three plus years and that's a really important thing for the industry and there will be a big fight in washington over that. jonathan: let's talk about that fight. i've heard a lot of people talk about the biggest change since the reagan administration. if someone wants to bring up the 84 electoral college management and you want to see the mandate, it's different to what looks like for this administration. how important is that? >> i think it's very important and we are in the situation in washington in general right now where the electoral campaigns don't start six months before an election. people are talking about 2022 already. there is a window here.
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as to why all these are out here now, there's a realization if they are going to get something done there is a limited window here for this administration to go after the big priorities and that seems to be what they are doing and they are hitting them one by one. i suspect it won't be the last one we see. jonathan: elections have consequences. how any times have we heard that over the years? and they do. that runoff election in georgia had huge consequences. tom: the elections have made this strategy we see. but i would look forward and it is may and then pretty soon it will be august and then the primary season is on the move. this tax history of 2021 will be part of the electoral dialogue in every single congressional district. jonathan: this administration is talked about unifying the country, not congress.
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lisa: we've gotten poles that signify they are more behind it then perhaps the republicans seem to be signifying. the interesting thing is even within the democratic party there is so much disagreement. you think about what was not in this proposal. how is president biden going to make this plan appealing to the likes of chuck schumer? >> it will be difficult and we haven't talked about senator joe manchin. a big 24 hours for earnings. alphabet behind us, microsoft too. some of these numbers out of the tech companies are amazing. we will have apple and then it's on to amazon tomorrow. the price action looks like this. a fed decision little bit later. up about a 10th of 1% per yields higher by a couple of basis points. following up yesterday's selloff
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with a notch lower on 10-year treasury yield's. in the fx market, euro-dollar down about a 10th of 1%. tom: the dow was 700 when my mother was lecturing me about it. jonathan: this is bloomberg. ♪ ♪
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jonathan: live on bloomberg television, this is "bloomberg surveillance." equity futures up four points on the s&p advancing at a 10th of 1%. the latest talked about equity market rally over the last month up more than 5% on the s&p. we are totally desensitized by this rally now as we approach new all-time highs. switch up the board and talk about the quietest 30% move i've ever seen. it came from alphabet year-to-date. hardly anyone is talking about it. google is up. i put 3m up there prayed that's up a little more than 11%. we have been talking about reopening in america and the best way to get exposure and leverage to that theme. the conversation is all most exclusively around the
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traditional cyclical companies. the manufacturers, the industrials. when 3m came out with earnings, where was the discussion, it was about cost, or materials. when alphabet came out where was the discussion? it was just pure growth leverage to a cyclical upturn and reopening. what did not -- what didn't we hear, what we heard from 3m. costs, transport, labor concerns. they are not the concerns of the team at alphabet. >> the alphabet margins were really quite good. looking forward to the close this afternoon. really been looking forward to this with the outperform on apple. i want to note the privatization of apple. since 2012 they've eliminated a large percent of their shares. share buybacks are part of the fabric there. do you just assume that continues in this boom economy?
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>> agreed to be here and thanks again for having me. i think the short answer is yes. i think it has become a key piece of the fabric of the company and the reality is there try to help reward shareholders with cash that continued to produce. this is approaching $80 billion and despite spending a lot on r&d and other initiatives, they continue to produce excess cash. they had a policy trying to turn that net cash position to neutral or effectively zero and then we will continue to see buybacks. we expect that to continue going forward. tom: are they going to announce a dividend increase? if they do that, do they reaffirm their position by making it a near double-digit
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dividend increase? will: that's a good question. it won't surprise me if we see that whether it's double-digit or not, i don't know. my suspicion is we will see a conditional doubling down on the growth buyback and dividend increase. it's like the we get that is part of the earnings. no official announcement to that respect. lisa: what did you make of the announcement that they would invest 400 $30 billion 8 -- $430 billion in u.s. infrastructure? will: it's a commitment to the united states in investment in general. i'm sure there's a political angle as well. i think they like to emphasize the fact that they are a taxpayer already given all the tax they are taking on the regulatory front. i think it also speaks to the confidence they have in the business going forward. investments they want to make to
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ensure they have the production capabilities, skill sets in the r&d investment that they need to continue to remain in leadership position. lisa: tom accused me of being cynical yesterday because my immediate reaction was it's a pr move ahead of different antitrust regulations coming down the pike as well as higher taxes. how much does this underscore the supply chain pressure we expect to hear about in the earnings release? will: that is an element of it. they have continued to look for ways to diversify supply chain and i think you are right, there is an element of pr, we've seen similar announcements. $50 billion and the like over the past couple of years. i think it continues down that path they have been on. in terms of laying out a longer-term vision. i think also as i said it speaks to the confidence of the
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business and the opportunities that they still see ahead. tom: the last time around was the joy was a rebuild in asia. they look for further recovery of their -- do you look for further recovery of their asian growth? will: they continue to see success across the globe. you look at the terrible situation in india. it's unclear to what degree they get impacted in the short term from covid. as best we can tell, it remains a plus across party lines and across geography. 20% plus growth across product lines this quarter. tom: i've got to make some news here. your target is 155. when you break this down, what
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is your some of the parts statistic? -- sum of the parts statistic? will: wearables and services on a combined basis is a must $100 billion business. tom: how much is that per-share? will: i would have to go back and do that math and get back to you. but i can tell you on a revenue basis must a third of the business, that's what's helping that shift. tom: talk like an economist, we won't get a straight answer out of will. lisa: mine is probably less robust. there's a question when you zoom out, a lot of people say with tech stock valuations they have gotten somewhat divorced from fundamentals. they look amazing but the
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evaluation hinged on yields remaining this low and on inflation remaining this low? how vulnerable are apple shares to the idea of yields moving materially higher? will: less than some. i cover many of the high-growth software which were all rocket ships last year. so i think it's a much bigger focus there than it is some of the big tech names. the tax rate will be something to watch. some of the other big tech names. it is certainly summing to keep an eye on as it pertains to the broader market and the tech space. a bigger impact on the two high-growth names, apples at a much higher pace now. lisa: when you talk about taxes,
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what would have a bigger impact in your view, a higher overall tax rate or closing some loopholes big tech companies have enjoyed to evade or get away from some high taxation rates? will: that's a good question. i think it is probably the higher tax rate overall. as apple points out, they believe they are the highest corporate taxpayer in america already. so on some level they are not using perhaps every single loophole they could. but all companies will look to try to maximize their profits. tom: when you go to these roadshows and you do your apple chitchat, do you get the meza watch swag? at $489 for the watchband? will: i am like everybody else.
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i'm still paying for it. if you could talk to tim cook about that for me that would be great. tom: $489 for a watchband. lisa: you know me. jonathan: what happens to this conversation? thank you sir, thank you very much. tom: this is important. we are going to apple earnings and its daily margins and ipod and all that. the use of cash like you mentioned through the morning he's just extraordinary. >> there's a big change at alphabet. they are still going to invest a ton of money into that company as well. that won't be a major shift. but the buybacks and the capital returns, that's what's amazing about apple. when tim cook came on board we
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talked about innovation without steve jobs and he turned it into a balancing machine, capital returns machine. tom: i mentioned the watchband and i get in email, what is that about? he thought i was trashing on economists. i couldn't get a straight answer out of willpower. -- will power. jonathan: you are punchy this week. what's wrong? who upset you? tom: i'm feeling good. jonathan: this is the good version of you? that is worrying. lisa: not to take a conversation away, but there was something you said in your market checks. jonathan: i got cut off by tom early. lisa: you were talking about how it's a 5% rally. jonathan: a quiet rally. lisa: because it is not
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traditional. it does not have the hallmarks of the bull market in the same kind of way. the russell 2000 is up 2% this month. bond yields are lower on the month. so we have these things that are suggesting slower growth ahead, the likes of apple shares are up by 9.3% so the staples, the cash cows are the ones doing best and that is underpinning the lack of enthusiasm behind this rate. jonathan: what on earth is in your mouth, tom? this is an improvement. [laughter] i'm pleased you were paying attention lisa. my other colleague was not. coming up, lauren sauer joins us -- lauren sauer. it might just be lisa and i for the next two hours. good morning, futures advance
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five points up a little more than a 10th of 1%. yields up a couple of basis points. still about 10 basis points from the closing of the previous month at the end of march. euro-dollar down 2/10 of 1%. this is bloomberg. ♪ >> president biden goes before a joint session of congress tonight to try and sell his historic spending plan. he wants money for child care, universal pre-k and tuition free immunity college. he plans to pay for it with tax hikes aimed at high income earners. republic -- republicans of announcer opposition as some progressives are calling on the president to do more. british prime minister boris johnson faces an investigation into the refurbishment at his
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downing street apartment. the electoral commission says offense or offenses may have occurred. there are reports it was originally funded by conservative party donors. in south korea, the billionaire heirs to the samsung fortune outlined a plan to pay one of the largest inheritance tax bills in history. it's -- it will take place over several years. he left a fortune of almost $21 billion. saudi arabia is in talks to sell a 1% stake in saudi aramco two was described as the leading global energy company. it could be worth about $19 billion according to mohammad bin salman. the kingdom is looking at a deal . google first quarter results showing -- related travel and retail businesses.
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there try to capture a public eager to resume some sort of normal life. alphabet posted revenue the blue way wall street estimates. the company unveiled a big new share buyback. global news 24 hours a day on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i'm ritika gupta. this is bloomberg. ♪ s bloomberg. ♪
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>> the bottom line is clear. if you are vaccinated, you can do more things more safely both
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outdoors and indoors. so for those who have not gotten the vaccination yet, especially if you are younger, or think you don't need it, this is another great reason to go get vaccinated. jonathan: that was the president of the united states. we will pick up on that in a moment. alongside tom keene, lisa abramowicz, i'm jonathan ferro. the price action looks like this on the s&p 500. equity futures up three points. yields higher by a couple of basis points. euro-dollar in 2/10 of 1%. 1.2067. let's talk about reaction of people yesterday from that address from the president. it's not the marketing material i think vaccinated america
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probably required yesterday. if you get vaccinated you don't have to wear a mask outdoors. i'm not sure that gets it done. tom: about three hours before the announcement i looked at the embargoed copy and went really? lauren sauer joins us. this goes back to the giant frank ramsey in the 1930's, the advent of game theory through world war ii and prisoners dilemma by the rand corporation in 1950. we are back to the game theory of how we get out of this pandemic. are we doing a prisoners dilemma with masks or will it be a game of chicken? lauren: i think we will have to wait and see on that one. i do agree with you. we would've liked to have seen stronger guidance, a little more opening from the cdc. maybe some more statements around what we can safely do indoors. the message around you can take
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your mask off if you are outside with family members who have already been vaccinated and so on i think we would've liked to sure that up a little bit and have a clear concise message on what we can do. tom: what does may bring? what do you and your team perceive our may will look like in terms of vaccination reaction functions? lauren: i think we will see a lot more things opening up. i think we will see more people moving outside and feeling comfortable doing larger activities. i think the guidance does help with that. knowing that if you are vaccinated it does feel safe and the cdc looks at it as safe to do activities with other vaccinated people outside. that might push into places or companies using vaccination record cards or passports. i think there is a concern over what that rollout looks like if
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it's really piecemeal or systematic. but i do see that moving forward in a lot of places. jonathan: how much are these decisions grounded in science and how much is ethics? i'm struggling at the moment. i can understand if they're trying to mess -- manage behavior of people who haven't been vaccinated. has there been a scientific breakthrough this left the cdc to say you don't need a mask outdoors or have they delayed this for other reasons? lauren: i think the science is pouring into the cdc. they have many scientists looking at data on mask usage both in the lab and in the population. studies are coming in from across the globe. people are doing meta-analyses to better understand the global picture. i do think the science is pushing forward and they are being informed by it. it's on the dramatic change, probably not.
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what we are probably seeing is an increase in the vaccination rates which is great. it has slowed a bit. we are seeing the number stick up in the u.s.. the cdc is more confident in their ability to say enough people have been vaccinated that we feel confident saying this is safe. jonathan: i guess it gets put through a ethical filter after that. they probably knew that it was safe and month ago. i think at the moment from my perspective, forgive me for inserting personal opinion. from my personal perspective this seems to be a worry that if you tell me i don't have to wear a mask outdoors, how do you effectively police that because i don't have a big sign that says i've been vaccinated and other people might go around doing the same thing. it keeps coming back to trying to police behavior that they don't trust the american public to make the right decision.
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they are not saying here's the science. i get a feeling it's the science through an ethical filter, through behavioral policing. do you get that sense? lauren: i think i get the sense it's science through a policy regulatory government filter where everything has to happen with a stamp of approval. there's a liability issue if they say the wrong thing. there's a public media component if they say the wrong thing so it creates this play are of -- these layers that create the lag. i think there is this piece of telling people this is the behavior we expect to see and how do you implement it. the policies and recommendations in the guidance are strong and bounded in science a lot of it is because of what you are saying where you can actually police that. you want to push the guidance forward so people are able to implement to police themselves.
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but what does that look like? we continue to be in a wait and see situation. lisa: i'm curious about the science with modernity the pfizer vaccines. recent statistics showed 8% of individuals are foregoing the second shot. what is the scientific ramification? how much protection do people get from one shot versus two? lauren: we know the second shot is really important in the lasting protection and getting those numbers into the 90's. we absolutely want people to get that second shot. anecdotally what we are seeing is people show up, they offered a different shop and what they got the first time, an appointment is canceled or moved around and they get fed up and they don't go back. they heard from the media coverage from these back-and-forth conversations about do we need the second shot right away or can we push it
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which was happening early when shots were scarce. but maybe they don't need it. that's what we do not want to see. the shots are available, we want to make sure people get that second shot especially if they can get the one that matches that first one. we want to get to that high 90's coverage which is so important. you do get coverage after the first shot although we see breakthrough shots one into or very apt -- very early after shot two. jonathan: always great to get some clarity and your perspective. there's a lot of frustration around the topic at the moment and i don't think it has gone anywhere after yesterday. tom: i think you've been up on the transatlantic, how far are we on vaccine passports? the eu wants them. jonathan: the eu wants them and
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many people in the united states do not. tom: i usually have a passport if i want to leave on the gulfstream quickly. >> this is coming down to ethics. coming up, julian emanuel. a controversial topic in this country. equities up four or this is bloomberg green ♪
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♪ >> we know this economic data is great. this is all reopening, fiscal stimulus. how much does behavior change? we are all becoming behavioral scientists. > you will see a shift back towards services, and that will take some pressure off of the goods sectors. >> are we heading into a period of peak data? peak data historically has been met with corrections. >> all eyes are really on what constitutes substantial progress right now. >> the good news is long-term, the fed has a track record of controlling inflation, but it could come across. >> this is "bloomberg surveillance" with tom keene, jonathan ferro, and lisa abramowicz. jonathan: the quietest fed decision of the last 12 months. for our audience worldwide, good morning. this is "bloomberg surveillance ," live on tv and radio. alongside tom keene and lisa abramowicz, i'm jonathan ferro. equity futures up about 0.1%. a ton of earn


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