tv Bloomberg Surveillance Bloomberg July 20, 2021 7:00am-8:00am EDT
>> right now we are in constraining -- in that frustrating pain trade. >> it is difficult given the low level of treasury yields. >> if nominal yields remain contained of receipts, you'll see global bond yields remain low. >> we haven't really defined what transitory is, least of all the fed. it could last a while longer and start to impinge on consumer confidence. >> the idea is to get the implement rate back down to where it was just the unemployment rate back down to where it was -- the unemployment rate down to where it was before the pandemic. >> this is "bloomberg surveillance" with tom keene, jonathan ferro, and lisa abramowicz. jonathan: a small bounce in the equity market. good morning. this is "bloomberg surveillance ," live on tv and radio. alongside tom keene, i'm jonathan ferro, together this morning with kailey leinz. lisa off this week. there's a small bounce, but this bond market is still firm.
1.16% on tend. -- on tens. tom: you look for higher yields. we will talk spx with michael purves in a moment. instead, the headline today is the bond market safe haven, lower yields. jonathan: and yet it has done nothing to lead the equity bills to throw in -- the equity bulls to throw in the towel. the equity bulls are still bullish. tom: into the tech juggernaut next weekend after that, i would suggest the houses led by purves are getting out front and tweaking higher. maybe we will see a lot more of that. jonathan: after the close, netflix. kailey: second-quarter results, it is all going to be out -- going to be about the subscriber
numbers. to what extent has demand bled through, when you thick about the fact that people were stuck on their couches? that story is no changing. what is the picture going to look like going forward? it could set the tone for some of these other tech giants in terms of what they are seeing as demand maybe wayne's in a reopening world -- maybe wanes from the reopening world. jonathan: have you been using netflix recently? tom: less. the pandemic is over. jonathan: you are getting out of doing stuff. tom: yes. jonathan: you don't like the content right now. tom: i think there's a lot to that. i think variety has done a great job of the production process in hollywood, and i would suggest some reading variety that is way behind, and they are desperate for new product. friday, "ted lasso." jonathan: new season. i saw that. i didn't watch the first season,
tom. tom: i don't know -- aston villa. jonathan: you're mixing up football clubs now. tom: i look now at jack, and he could go to richmond. jonathan: i think "ted lasso" would really develop the player, tom. let's move on. in the bond market we go, yields come in a couple of basis points on tens to 1.5016% -- your dollar just a touch stronger. euro-dollar, $1.1781. kailey: stronger dollar for a fourth day. at 8:30 a.m. eastern, not only is the first special programming on bloomberg taking us through that blue origin jeff bezos launch, we are also getting some economic data, housing starts
and building permits for last month. how much are rising material costs weighing on construction in the residential sector? at 9:00 is when jeff bezos will blast off to space in that new shepard rocket, the first manned launch for blue origin. jeff bezos, brother, 82-year-old wally funk and an 18-year-old kid from denmark. quite the crew. finally, after the bell, we were just talking about it, netflix reporting second-quarter results. watching for not only second-quarter subscriber numbers, but the subscriber forecasts going forward. jonathan: let's sit on that for a moment. thank. the first manned trip for this blue origin new shepard rocket. tom: it is significant anytime men and women are involved. you get the simpler systems, and
you can go right down to the rocket nozzle at the bottom of the be3 engine. everything is about simpler, simpler, and what haunts everyone is the apollo accident years ago, and the challenger blow up where people were trying to get simpler and they blew it with complexity, for whatever reason, and the whole focus when you put many women in space is simple systems that men and women in space in's -- men and women in space is simpler systems win. the people that want to romanticize this and compare and contrast with the wright stuff, the number one variant is not the rocketry or the plastics or all of that. the computer systems are so dramatically superior now that's when we hear it is all going to be done by computers, there's no pilot, there's really no control center, you know what?
the computers are probably more reliable. jonathan: full coverage right here at 8:30 eastern, and about 85 minutes. let's turn to this equity market. the bulls are still bullish. michael purves is one of them, tallbacken capital advisors ceo. you go out to 4800 on the s&p from where we are. why? michael: i think i stepped back and i first look at where the earnings trajectory is going to be not this year. we own others fantastic earnings growth from 2020, but into 2022, i think the trajectory is likely to be pretty robust. when i get to 4800, i really am solving for not just evaluations of the equity risk premium.
since late march, i have been bullish on the 10 year treasury note. you can be bullish treasuries and equities at the same time. and even reflation equities. i will get to that in a second. i look at how the market is going to trend. you have an earnings stream that is balanced on one hand by 40% of the index with large-cap tech earnings, secular growth that has been remark police table, rockabilly consistent. -- remarkably stable, remarkably consistent. you haven't seen that kind of two-year collective nominal gdp story since the 1980's. certainly not in the few years before covid. so you have a cyclical earnings
stream that is going to be really robust. if that underperforms, large cap tech is still going to be quite robust. tom: tell me about the denominator. the pros look at ratios. earnings to the ratio, revenues to the rescue, margins to the rescue. can you tell me that there's going to be such denominator strength that we have value at your 4800 xp x -- 4800 spx? michael: we are all trained to look at value in terms of pe multiples. i think the game really needs to shift to equity risk premium, the difference between the perspective -- the perspective number on earnings yield and the 10 year rate. that is where the games going for s&p valuation. then i think you can get back
into reasonable valuations. i synthesize earnings growth into next year against a backdrop of different interest rates assumptions. i think you can make a reasoned case that 4800 at the end of the year is quite achievable. if the economy underperforms, the trajectory of the economy underperforms, and this earnings season, i think you have large cap tech to fall back on. there's an important point also here. there is this persistent covid cloud, but i think what is really important now in midsummer is that some of this will ultimately differ growth
into 2022 which is exactly what the equity market needs right now. michael: will the past up to 4800 -- kailey: will the path up to 4800 be more volatile? michael: we bounced off the 50 day moving average yesterday. that has been the support over the last several months. i think a lot of the volatility we have seen is really a function of trying to understand the narrative of what the bond market is trying to say, and again i look at the 10 year treasury as much more of a reflection of said policy -- of likely fed policy over the next few years. so that process of the reflation story and the equity side decoupling from the interest rate prices you see on your screen, it is inherently volatile.
i think we should expect to see some more volatility. jonathan: it has been a volatile 24 hours, that's for sure. good to catch up on that new call. uncle purvis -- michael purves, tallbacken capital advisors ceo. 1.16% on tens. we just keep grinding lower. tom: jon, this is a real surprise this morning given the equity left. jonathan: we will dig into that little bit later with alisha levine of the and y mellon wealth management. looking -- with alicia levine of bny mellon wealth management. looking forward to that. heard on radio, seen on tv, this is "bloomberg surveillance." ♪ leigh-ann: with the first word news, i'm leigh-ann gerrans. senate majority leader chuck schumer has planned a vote today
on whether to begin debate on the $759 billion infrastructure bill. senators in both parties have not agreed on the measure yet. the vote puts pressure on the bipartisan group negotiating the measure, but also runs the risk of an embarrassing defeat. the u.s. government is warning americans to avoid traveling to the u.k. because of a surge in coronavirus cases involving the highly contagious delta variant. the warning came on the u.k.'s so-called freedom day, when pandemic related restrictions were lifted. ubs posted better-than-expected earnings in the second quarter. the largest bank in switzerland benefited from a jump in new assets and income. still, ubs warned it expects a slow down during the third quarter. the bank has pivoted away from volatile investment banking, now focusing on helping the rich
manage their fortunes. e-commerce platform for barbecue grills and related products backed by eli and peyton manning is going public. bbq guys is merging with a blank check firm that values the company at $963 million. 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 leigh-ann gerrans. this is bloomberg. ♪
particularly in those areas of the country that have a very low level of vaccination. that is the reason why we are practically pleading with people to please, if they are not vaccinated yet, seriously consider getting vaccinated. jonathan: dr. anthony fauci there. good morning. lisa back with us on monday. tom: so she says. jonathan: i think she's committed to that. your equity market up 20. we advance 0.5% on the s&p 500. in the bond market, that's where your headlines have been. yields lower by a basis point or two to 1.17%. euro-dollar slightly negative, negative zero point 15%. that is a weaker euro going into the ecb this thursday.
just under an hour from now, in a small town in west texas, the astronauts to be -- should we call not, tom -- call them that, tom? they will head to the launchpad about one hour from now. tom: we see an image in the dark of the west texas night. it is stunning how small this rocket is. this is the first stage of a glenn model, which will go up in a number of years. this is not saturn five launching to the moon. it is not the ginormous size of getting something as large as a space to look there. it is a lovely little project that really harkens back to the 1960's. tom: the astronauts -- jonathan: the astronauts will ascend that power at about 8:30 eastern.
we've got the play-by-play, just for you, tom. then it is take off at 9:00 eastern. tom: they woke up the gantry, which is interesting because, i can't emphasize this enough, we have all these images from our youth, and this is a lovely small project to go 63 miles into space. we will see that. emily chang down there with our team. i don't know where ed ludlow is. is he in new mexico? jonathan: i think he is in that little town in west texas. tom: you've been reading marty robbins lyrics here about west texas. jonathan: i think he had a night out last night and didn't make it to the training facility. tom: jack fitzpatrick joins us now, our bloomberg government reporter. there's so many serious things to talk about. where does space fit in on capitol hill? does anybody care about it, or is it some presidential moment every four years where they
decide we are going to mars? jack: it may be something to care about once every four years or so. the blue origin stuff, for one reason or another, has not fixed itself in the center of the conversation in washington about space, but nasa has big enough plans that it is a topic of conversation. one thing to walk out -- to watch out for, do they stick to nasa's plan to put people back on the moon by 2024? there were some democratic lawmakers who thought president trump picked that for political reasons because he would like to still be in office when they do it. now that bided is in office, -- that biden is an office, i am hearing less resistance. the expensive route is together by 2024. they are definitely talking
about nasa's plans. jonathan: many people are hopeful about the progress we can make. other people are very critical of an event like the one taking place in about 90 minutes time. how does this play into the whole debate around wealth inequality in this country? jack: it definitely does play into that. there's some vague rhetoric about sending billionaires to space. i would not be surprised to see this sort of anecdotal reference in some of the tax debates. but really, nasa has its own plans to such a significant degree that the debate over space itself in congress, at least that i have seen, hasn't really gotten into the private sector stuff on space. they are really focused on their own thing. but in terms of wealth inequality, you are probably going to hear this talking point with bezos and branson and the richest people in the world having their own plans to go to space. kailey: tom keene is wearing his
bill night bowtie today -- the bill nye bowtie today, and was talking about his recognition of science. but when it comes to the vaccine, obviously the biden administration missed its goal on july 4. we are six months out from the inauguration. is this where the biden administration thought we would be at this point? jack: i think we may have slowed down the progress of vaccinations a little faster than they thought, given that we missed the july 4 date. clearly we are still at a moment where there's progress to be made. there's a significant gap between the percentage of people who have at least one shot and the percentage of people who are fully vaccinated, so we are still making progress. but when you hear the kind of tone you heard from dr. fauci, the pleading tone, you can see that is a reflection of there
are a number of people who are pretty stubborn and set in not getting a vaccine, and it has become a very politicized thing. there was a cbs news poll that showed the people least concerned about the delta variant are the ones who are not vaccinated, and there really is a partisan gap there. so we may not be at the point where we have hit the wall, but we are getting close to at this point. jonathan: a lot of people have said this narrative that these are all trump voters -- a lot of people have fed this narrative that these are all trump loaders who don't want to get the vaccine -- trump voters who don't want to get the vaccine. i wonder how that plays in d.c. jack: that is a significant factor. it is hard to parse out the exact reasoning. we can tell at this point that there is a partisan divide, but how much of that comes down to skepticism that joe biden is
telling you to get vaccinated, the relatively low numbers of republican leaders, although some like mitch mcconnell have been very vocal about needing to get a vaccine, how much does it come down to anti-science? how much does it come down to, at this point we have a pretty conspiratorial tone in a lot of political media, at least nontraditional political media. i don't think it is as simple as saying a bunch of republicans are anti-science. there are a lot of things that play. -- that play into it. but on all of the polling we have seen, talking to politicians, it does come down to a pretty significant partisan gap between democrats and republicans. jonathan: it is never that simple. it is good to catch up. as far as the blue origin new shepard launch is concerned, t -95 until the launch. tom: listen to you.
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jonathan: live from new york city, for our audience worldwide on tv and radio, here's the price action this tuesday morning. 4370 on the s&p, advancing 0.5%. here's the nasdaq, advancing about 0.46%. the russell advancing about 0.9%. here's your headline from jp morgan. the slowdown fears are premature , one, they are overblown, two. let's talk about the banks. this is the scene premarket, just edging a little bit higher, up 0.4% on jp, of 0.6% on citi. from the highs of june, we are down 13% on the s&p 500 banks.
worth talking about the sector as a whole as a basket, and what this bond market means for all of this. twos, tens, and 30's look like this this morning. that yield curve, the spread is sub 100. tom: what is going to make the bank trade work, i agree, traditional banking risk in the movement of short-term money in the overnight repo market. well steve you have? jonathan: that's all of what else do you have? -- what else do you have? jonathan: that's olive got. what else do you want. kailey leinz has the stock for you. kailey: 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 $29,6 43. we like to check in with mark mccormick of td bank, global head of fx strategy. on currency, what is the character of this dollar rally? you have been very good about it. is it of stability, or can it really move dollar strong? mark: thank you. i think right now it is just much more tactical. it has to do with the global reflation trade. we are starting to see some cooling global mobility trends, which means reopening is pausing a little bit. the flattening of the curve is also very important for the strength of the dollar. central banks are turning much more hawkish just as the global cycle is speaking, so peak stimulus, peak inflation, peak growth, all of these are
happening in a backdrop where technical positioning is all positioned for risk. tom: you write of confusion in the summer of 2021. define the confusion as example five through currency pairs -- as exemplified through currency pairs. mark: we have been swinging on both sides of this pendulum since covid. a big part of the confusion is around which drivers we should be watching. there's a tremendous amount of emphasis on the fed, the impact the fed will have on the global currency market, but i think what participants continue to forget in the global growth story is the primary driver for the dollar. there's an element that we can play relative central bank policy, relative equity momentum, but none of those give us a clear, consistent signal of which currency pairs to buy, so therefore we get a backdrop that is much more tactical. you look for a currency pair that looks mispriced on some of those factors, and then hold
that trade for four to six weeks, maybe a couple of months. then you've got to move on from that and find a new factor and a new set of currencies that work in a new regime. that is where the confusion lies because we are in an oscillating market. jonathan: a lot of people looking for that big directional play on synchronized global growth. you're saying it is not going to develop. mark: the backdrop is still positive for cyclical assets, but the pricing which we talked about this before we talk about the rise in may. in july, we realize those risks along with we have seen in the peaking global data surprises, the peak in global growth expectations. now we have the validations those indicators have now peaked, and they are reversing. a big part of it, we have summer liquidity, we have the delta variant and the worry that it will have on mobility. the global mobility indicators
we track show there is divergence across countries. the uk's a great story. sterling is another one to look at in context. euro sterling is rally in, largely because the bank of england was hawkish on inflation , but u.k. growth was never like giving -- never living up to the story that you want to buy growth. so we shouldn't be focused on the global reflation trade. you still have a long way to go because the fed will probably hike in december, but everything is mispriced right now so we've got to go through a price discovery mechanism. jonathan: help us understand the relationship between what happens with the u.s. dollar and rates. right now the dollar index is pushing 93. the last time we were near these levels, the u.s. 10 year was around 1.70 percent. now sub 120%. what is the relationship between this dollar and what happens with yields? mark: very important because it is definitely an element of real yields. the most important driver right now is the shape of the u.s. and
global yield curve, which are moving in the same direction or get when we had u.s. exceptionalism during the trump years, we had a stronger dollar, he steepening u.s. yield curve for you now we are getting a flattening u.s. -- yield curve. now we are getting a flattening u.s. curve and a flattening global curve. so the lack of certainty around each of those factors is bullish for the dollar because the flattening of the global yield curve signals that we are not getting as much reflation and the markets have to figure out what the next move is. kailey: how bearish is it for em? mark: it depends on the context. that is a good point because there's part of vmware u.s. real rates are still moving lower. but em is selling off very aggressively because the global story is driving a lot of these factors and commodities that have come off. for em, what is going to matter
weston duds -- matter once the dust settles is which central banks are hiking, which governments will pick up the deployment of vaccines in non-china em. which countries will benefit from a pickup in terms of trade? we know prices are suppressed right now, but there's not enough supply to match the demand we will see as we see oil prices move higher. this dollar move is creating value in em. so russia, brazil, korea, those are three currencies that look like on the others had of this washout could be very attractive for all of those factors. jonathan: around the world with mark mccormick. thank you, td bank global head of fx strategy. i will repeat what i said and why it is so confusing for so many in this market. the dollar pushing 93.
at the end of march we had the highs of the year on the 10 year yield. now we are pushing towards the lows of the yield, but the dollar index is back to 93. tom: michael rosenberg in his classic book about foreign exchange, he talks about the economic analysis of foreign-exchange, and then the back 1/3 of the book is a mystery on just what you discussed, huge, and outcomes given the economic cards you are dealt. we have been dealt original economic cards and we are living the ambiguity right now. jonathan: euro-dollar back then was pushing $1.23. tom: did i hear jordan rochester is talking $1.10? jonathan: i was gauging what it would take to get down to $1.10. euro-dollar down to $1.10. german election in the mix. we need to talk way more about
that. we should catch up with matt a little bit later in the week. tom: he's in new york? jonathan: i thought you were going for a drink a little bit later. and also, what happened here? you were going for a drink with miller and i didn't get an invite? where are you going for a drink? tom: i haven't decided yet. i thought you would be in your "surveillance" nap. jonathan: that takes place mid day i will be there. are we coming to you? tom: i don't go below 59th street during the week. jonathan: we can debate this another time. 8:30 am is turned, that is when a full coverage will begin on tv and radio come on quicktake as well, of jeff bezos heading to space on blue origin's new shepard. tom: it is a dark night in texas right now, and they are releasing on the blue origin website sort of getting ready for it, getting in the capsule, and we will have to see what happens here in the next hour.
right now i've got some big, fancy feet appear. jonathan: 35 minutes away from seeing the astronauts to be leave the training center. looking forward to bringing those pictures to our audience in about 35 minutes. let's turn to the price action for you. got to stay on top of that. at the start to the week we had yesterday, 40 to 75 on the s&p, bouncing back four points. your bond market, yields are off the lows. we had a little look at 1.60%. we are back to 1.18 21% on tens. euro-dollar -0.14%. three percentage points from all-time highs on the s&p 500. on radio and tv, this is bloomberg. ♪ leigh-ann: with the first word news, i'm leigh-ann gerrans. china is rejecting accusations
by the u.s., the u.k., and its allies that it was behind the microsoft exchange hack and other cybercrimes. beijing and others ganged up in china and gathered an unwarranted claim. the long-awaited oil deal may prevent a supply squeeze. the agreement to pump more crude helps send oil prices tumbling, but the market will not be enough to -- here in the u.k., the government has published a plan to overhaul the nation's power markets to prepare for zero. authorities say the plan would save $13.7 billion a year by the middle of the century. one of the cornerstone -- the
company will also look at electric vehicle carding and large-scale power storage. thousands of lawsuits accuse -- of fueling a public health crisis in the u.s. with a painkiller. bloomberg has learned that more than 40 states have signed onto that reticular deal. -- that particular deal. 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 leigh-ann gerrans. this is bloomberg. ♪
with are not looking at short-term price movements, not looking at short-term volatility. they are really over a medium to long-term time horizon, so i don't think people feel terribly safe when they see sudden movements in the market like this. jonathan: from new york city, alongside tom keene, i'm jonathan ferro, together with kailey leinz. lisa back with us on monday. do you want to do bitcoin, tom? tom: is that an entry point? jonathan: i don't know. let me whip through this price action quickly. yields in earlier this morning. yields in almost a basis point. euro-dollar negative 0.1%. euro-dollar right now, $1.1788. tom: moving to blue origin in the launch. first we need to launch some perspective of the equity
markets. david wilson is channeling another wilson. dave: that would be mike wilson. wilson is a pretty common name, tom, unlike say keene. i digress. it is all about quality. at least, that is how mike wilson sees it. initially we have seen a recovery. if you look at the msci index based on return on equity, earnings growth, debt levels, it has had a bit of a comeback after a year-long decline. the s&p 500 versus the russell 2000, the msci quality index versus the russell 2000, we have seen a comeback led by tech stocks. they certainly fit the category. looking for a broader move in quality, specifically some of the slower moving companies. you think about health care,
consumer staples, real estate, phone companies, those are the kind of stocks he he's doing well going forward because he's concerned about slower growth perhaps in the economy. the nature of the recovery shifts away from the faster growing tech companies. tom: we've got to leave it there because of the time and go to west texas now. jonathan: thank you, dave. tom: bloomberg technology's emily chang is in van horn, texas, where she had a very early morning. she has known the amazon story with our brad stone like no one else. you have a special relationship with mr. bezos. i want you to describe the amount of focus mr. bezos has on blue origin. is it1/3 of his time -- is it 1/3 of his time?
is it half of his time? emily: it is everything he's doing for the next two hours, that is for sure. we are almost an hour from launch. no indication that this will be delayed. we are on schedule for 8:30 a.m. central time, lifting off. it has been increasingly more of his time. what people don't know is that he founded this company 21 years ago. this is a long time dream in the making. and finally, he's hoping today that that dream will come true. it is just a couple of weeks after stepping down officially as ceo of amazon. tom: this is a single stage rocket, 60 feet tall, and it is the first stage of the glenn program. in two or three years, what will mr. bezos be doing in space? emily: he could be flying in orbital mission in space on the new rocket that origin is working on right now.
the rocket he will be on today is the new shepard rocket, just going up and down. this is basically just a show of the technology for proposed space tourism purposes. getting private citizens to space just for fun, that is a small part of the story. he talked about building space colonies, moving big industry to space. he think's earth is the best planets. we don't want to move to mars, move to the moon, but we can help access resources in space like solar energy, like water on the moon, turn that into rocket fuel, for example, to improve life and our standard of living in the future on earth. jonathan: how does that differ with the efforts from musk and branson? emily: totally. branson is focused wholly on space tourism. elon musk has talked a lot about mars. we have not seen him go up on a rocket yet because he has said
he doesn't want to die on impact , he wants to die on mars. jeff bezos is saying we don't need mars. we want to stay on earth. we love it here. we need to protect it. and over time, earth resources are going to run out. we need to find them elsewhere. what he really once to do, he says, is to build a road to space so that future entrepreneurs, future business people can build their own businesses in the space economy even if they don't have nearly as much -- don't have nearly as much money as he has. jonathan: their mission statement echoes that. "blue origin believes that in order to preserve earth for our children, we must go to space to tap its unlimited resources and energy. " he has not escaped criticism. this effort today is highly divisive you are well aware of that. is he tackling that head on? what is he saying about it?
emily: he's been criticized by folks who say look at all the problems on earth. shouldn't we be focusing on climate change? shouldn't we be focusing on all of the people who need vaccines? he has said yes, we need to do all of these things. we need to focus on improving earth, but also focus on how space can help us improve earth. tom: it is when the dodgers are in san francisco that you all invite us out to go to the game. it will cost the same amount has going into space. when does this become cost-effective? emily: are you calling me a mere mortal, tom? tom: at a price point that ferro can do, like $5,000. emily: we don't know. we know virgin galactic has sold hundreds of tickets for 200. we know the blue origin has sold at least one ticket for $28
million, and that that witting better is not on this flight due to "scheduling conflicts. so it is a very expensive scheduling conflict apparently, but all of the votes -- bezos' brother, wiley funk, who will become the oldest person in space. oliver damone, whose father was a bitter, is on that flight as well. jonathan: our coverage starts in full in about 35 minutes. tom, can you imagine having a $28 million seat to somewhere? we've got to get to the bottom of who this is. tom: giants-dodgers, july 28.
>> right here, right now, we are in that frustrating pain trade. >> it is difficult to quench the thirst for yield given the low level of treasury yields. >> as long as inflation is contained overseas, you will see that bond yields remain low. >> we have not really defined what transitory is, least of which the fed. it could start to impinge on consumer confidence. >> the idea is to get the unemployment rate down before the next pandemic comes. >> this is "bloomberg surveillance" with tom keene, jonathan ferro, and lisa abramowicz. tom: good morning,