tv Bloomberg Surveillance Bloomberg July 23, 2021 8:00am-9:00am EDT
>> you have a natural slowing of sequential growth. you are not going to keep growing at 10%. >> we have an economy that is going to continue to grow, but the largest gains may be behind us. >> almost everything has told us we are in a regime shift. we are going to see growth and inflation decelerate. >> inflation has already risen significantly higher than the fed had earlier predicted it would. >> there might be a surprise out of the fed. it seems like there are some very hawkish members. >> this is "bloomberg surveillance" with tom keene, jonathan ferro, and lisa abramowicz. tom: good morning, everyone.
jonathan ferro, lisa abramowicz, and tom keene. a simulcast, bloomberg radio, bloomberg television. a friday to reset, there i, into august. it is able market -- dare i say, into august. it is a bull market that will not end. jonathan: i think we have to look past august and into next year. we are at a pivotal point, if you believe the cdc, for the pandemic. we won't get the answers to these questions on the outlook until september or october. everyone comes on this program and talks about it for good reason. september is critical for the additional and limited insurance to end, for the return to school to develop, and there are risks around that now. september and october will produce the data that gets people either the confidence to look ahead to a brighter 2022 or perhaps the reason to trim their forecast. tom: it is an exceptionally strong hour for you on bloomberg radio and television. peter hotels will join us later
-- peter hotez will join us later in the hour, ed hyman, and sam stovall with us. what did not happen this week, the 10 year yield did absolutely nothing if i look back one week. jonathan: from friday to friday, yes, but a lot in between. i've talked about the range from 1.12%, the lows on tuesday, to 1.30% the highs. that speaks to exec leave with you and i were talking about, the lack of consensus, the lack of a narrative, a story we can all agree on about the future. i think that has broken down a fair bit over the last several months. tom: lisa abramowicz scheduled to return from monday. that is up in the air. taylor riggs with us this morning. your observation on the earnings dynamic that you tear apart every afternoon on "the close." taylor: and km partners said it
is a beat and a raise kind of day. we talked about this earlier, the clarity we are continuing to get from ceo's. you sought not only yesterday morning, yesterday night, further perhaps this morning of the strong forward guidance we continue to get into this year. i would air to say margins may not be behind us. tom: what is fascinating to me, let's do the data now. futures up 20, dow futures up 128. the vix giving me a 16.98 print. that is a bull market. jonathan: it is, and this equity market is close to an all-time high again. 20 on the s&p, advancing zero point 5%. talked a lot about the bond market. 10 years south of 1.30%. take a look at credit, and high-yield credit, and the issuance that has come through this market. there's a difference between choppy waters and a threat to this bull market. we are always thinking about the
shark closest to the boat, and oftentimes the storm clouds on the horizon. carnival came to market this week and issued seven your debt with a 4% coupon. back in the spring of 2020, that was 11.5%. that is a massive turnaround, and that as the company faces some real risk through the summer. think about what that money is being used for. what are they raising money for? ? to pay down the debt that they raised at 11.5% last spring. so these creditors, these companies coming to market, they are issuing debt at much lower interest rates. they are using it to strengthen the balance sheet as well. i think that is really important. we talk about the risks around this market at the moment, we are talking about choppy waters. spreads wider this week. we had a crack earlier this week. we are still in and around 300 basis points. they are pretty good levels for people to come to this market, borrow money, and as long as the credit market is functioning,
you can still have confidence about risk assets. tom: and then there is the debt constrained. the screen on the bloomberg, weighted average cost to capital, wacc is great. microsoft is burdened with debt, 4.4%. [laughter] jonathan: they are doing ok qamar and say? almost 30% -- ok, aren't they? almost 30% up your to date -- up year to date. they just keep doing it. tom: sam stovall joins us this morning with cfra, their chief investment strategist. but far more, it is the decades of work across the civil -- the stovall family about adapting. how are the investors feeling about the 2021 cards they've been dealt? dave: certainly they have to adapt -- sam: certainly they have to adapt to what they've
been given now. the possibility that the fed will be tapering, as well as raising interest rates, but probably the biggest challenge right now is what we are reading about in terms of supply disruptions, and terms of cost of goods going up, and particular consumer staples areas are seeing a tremendous upward push in terms of the cost of goods, and the real quandary is whether they are going to be able to pass these higher prices on to consumers even as a form of higher prices for possibly reduced volumes, but that is someone they will have to wrestle with for quite some time. jonathan: we can pick any name and use that as a data point example. to boldly is pretty come -- chipotle is pretty confidence on the other side of this price hike. that is just one exam. do you have the confidence that price tolerance is there across a range of industries?
dave: i am not sure you have a price tolerance across a range. certainly a lot of consumers are very forgiving now because they are finally being offered parole from cabin fever, so they are probably going to be willing to pay a little bit more just to satisfy that need to get out. but i do think that the question is if this is something that is going to be with us for another year, and then we are really only going to see the year on year change in inflation come back below 3% in the second quarter of 2022, that might be a little bit too long in which consumers are going to be willing to be paying higher prices. so i think we could see some pushback. taylor: dare i ask about who is buying these dips? we had a report out on monday saying a 2% pullback leads to a huge rebound tuesday and wednesday because you have massive savings rates have been piling up, and it is that retail investor buying this market. do you agree?
dave: it seems like -- sam: it seems like that is the factor pushing things higher. when you are asking who was buying on monday, i guess i'm tired of hearing myself cry wolf because my expectation was that we are going to challenge the 50 day moving average and most likely challenge the 200 day moving average on the s&p because we have gone more than 300 days since the last decline of 5% or more versus the average of 178 days going back to world war ii, and many other factors in terms of weighting parts of participation, etc. tom: how do you respond to a serious question of when the fed finally reins it in, how equities respond. sam: i think the way you enter it is by saying that with enough transparency, i don't think it is going to have that big of an impact on equity prices.
already we have been hearing a lot of fed members talk about tapering that is going to take place probably by the end of this year, not beginning of next year, the fed rate increases will occur by the end of next year, not the beginning of 2023. so in a sense, they have been letting aloft several trial balloons in my opinion that are going to be preparing the markets for a more rapid change in monetary policy, and that they are going to go through the tapering process nearly completely before they even consider raising rates. so transparency i think will be the key. jonathan: we've had the taper test before. just quickly, is that an environment where risk assets can still do well? do i need to worry more about when we start reducing the balance sheet? sam: i think we can do fairly well. the last time we saw something like that, we also had the downgrading of the u.s. debt, which really was the big
surprise in august 2011. i don't think we are going to be seeing a repeat of that this time around, so i would tend to say don't throw us any curves, and the market will be able to set itself up properly to continue to work forward. jonathan: sam stovall a cfra, good to catch up. good to hear from you. thank you. this equity market continues, approaching the opening bell one hour and 20 minutes away. we are off by --we are up by 0.5%. tom: it is going to be an important landmark next week surrounded by the earnings as well. the other story is the durability of this great bull market. it reminds me of the character paul robinson in "the neighbors." you look at what paul robinson has done across the years of that australian show, and it just keeps going. jonathan: that is a great show. why have you brought that up?
do you like it? tom: i don't get it. jonathan: in the mid-1980's, fantastic program. do you know kylie minogue? that is how she made her start. do you know marga robbie? that's how she made her start -- know margot robbie? that's how she made her start. i can name another. do you want to keep going? i'm told hemsworth, that's how he made his start. tom: who would have guessed this bull market is where it is? jonathan: what did you start calling it a long time ago, the most hated bull market ever? tom: it is. mark my words, friday, but haven't hooked p.m. this afternoon, there will be seven doom and gloom -- by 5:00 p.m. this afternoon, there will be seven doom and gloom articles out there. jonathan: you sound really happy this morning. alongside tom keene, i'm jonathan ferro. futures positive in a beautiful new york city, just ahead of a
long weekend if you can get out of work early this morning. hopefully you can. i am going to try to do that. tom, you're going to anchor "real yield" this afternoon. did they tell you that? you've just found out. this is bloomberg. ♪ laura: with the first word news, i'm laura wright. a bipartisan group of u.s. senators is closing in on a 579 billion infrastructure deal -- $579 billion in for surgery deal. they are paying for it -- billion infrastructure to beale -- infrastructure deal. they are paying for it by offsetting a costly trump era regulation. policymakers are likely to put an emphasis on mortgage-backed securities. economists surveyed by bloomberg said raising interest rates have
risen quicker than they thought. some promising news about pfizer's coronavirus vaccine. israel's health ministry says it provided a strong shield against more severe diseases in cases caused by the don't a variant. but the vaccine was only 39% effective in preventing infections. that is likely to fuel debate about whether booster shots are needed in those who have already been vaccinated. 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 laura wright. this is bloomberg. ♪
account input costs going up. there's a clear area where there are some challenges today, and my instinct is this will persist for some time. jonathan: can they pass on those higher costs? the big debate in the c-suite for corporate america. john gray there, blackstone coo. alongside tom keene, i'm jonathan ferro, together with taylor riggs. lisa back with us this coming monday. going into the weekend with your equity market elevated. on the s&p 500, a three-day winning streak that could turn into four. we advanced by 0.46%. a lift on the 10 year yield to 1.29 64 percent. euro-dollar unchanged at $1.1770. almost seven to dollars a barrel on crude -- almost $72 a barrel on crude. tom: on a friday, we begin our coverage of technology. we will do that into next week as well, and we start strong with a non-survive and -- of
bloomberg intelligence, what are most careful thinkers about this juggernaut that has affected all of us in society. anand, thank you so much for setting up next week for us. how big can these things get? right now, let's say the top four or five companies, the top 20% of s&p 500, can you envision them out to 30% of the s&p 500 index? anand: that is a great question. a kind of depends on what the rest of the s&p 500 does, but there is some growth ahead for companies like apple. demand doesn't seem to be weakening at all. if anything, supply constraints are having them leave some revenue on the table when they ship product because now they are able to get it all.
but we are expecting a great quarter and a great fiscal year for apple, and we think demand sticks for a little longer. tom: i don't want to get into buy-hold-sell here. for someone who says amazon, they've got to break up the cloud and the cardboard box, how does a pro like you respond to that? anand: you know, i leaned on my antitrust colleagues, and one of the things is you can have a monopoly as long as it is organically built. when you stifle competition and you take away opportunities for other companies, that is when you get sticky fry regulatory perspective. but we had smaller companies potentially compete with amazon. they just haven't had staying power, and able to compete as broadly and as diversely with amazon.
on that aspect, there's more to the story than just a simple breakup. it is not that easy. jonathan: let's say it was easy and they could do it. would that be bad for these companies? could that actually work out for them? anand: there is merit on potentially separating out the cloud business from the retail business. again, amazon is covered by my retail and software colleagues, but there is merit for a cloud potential expansion. so one business is really fast growing, really high-margin. the other is large revenue, but potentially much lower margins. so there is merit to the argument that you could potentially separate it. but again, amazon is left to my retail and software colleagues. taylor: back to apple, there's a goal of cash neutrality. i am wondering how you get there
when you are sitting on $200 billion of cash and only $120 billion of debt, so net cash, you are still almost at $100 billion, and you're free cash flow is $100 billion a year. how do you get to neutrality? anand: you don't, particularly if you take into account their m&a strategy, which is really small tuck ins. we don't see them getting there anytime soon without large acquisitions. and there is merit to the case that if you buy something like an nfl sunday ticket, a large media content purchase, or a couple of studios in the media space, you can seriously add clout to your services business, which they need, to be honest come on the media side. so you can expand in that area. you can reduce cash and set up the business for the next five years. but they haven't done that thus
far, and even projects like their silicon expansion, potentially apple tv, those projects don't cost that much from an r&d perspective, so cash neutrality not going to happen anytime soon. tom: what i hear always from you is the migration to the cell phone, and all of these companies, the common theme is our changed behavior. we've got "ted lasso" rolling out today for apple tv. you guys keep talking about 5g. does "ted lasso" care about 5g? anand: that is a good question. so more content, more speed of the platform, a strong product with which to do it. where does that -- what does that make the consumer? that makes the consumer addicted to the apple ecosystem, and that makes the consumer buy more and
stay with apple longer. that is sort of the cycle that apple wants you to be on. buy more product, consume more product, stay on the apple ecosystem, repeat. and that is any readily profitable franchise -- that is an incredible preferable franchise. jonathan: let's finish up here. tom: you've got to believe, jon. jonathan: what you learned this week? anand: the ti and intel stories, we think ti was in cuddly conservative in its guidance. we are maintaining our scenario numbers much higher than management guidance. we think that there is more room for sales expansion. the corporate server numbers were good, but i am holding out for cloud growth to come back. number two, show me the long-term roadmap in technology
and how you're going to compete. the foundry strategy has a lot of people's heads being scratched, and we are not there yet. so in the meanwhile, make your own product that are and more competitive versus amd. so we are still holding out on that story on intel. jonathan: great to catch up with you, as always. intel this morning down by 2.4% in the premarket. that was anand srinivasan, bloomberg analyst. in the equity market, three days of gains. could make it a fourth day of gains on the s&p. we advanced 21 points, up 0.5%. euro-dollar unchanged at $1.1771. the 10 year, 1.2981%. tom: i did not buy the dip, jon.
jonathan: live from new york city for our audience worldwide on tv and radio, good morning to all. alongside tom keene i'm jonathan ferro together with taylor riggs. lisa abramowicz will be back monday. your equity market is about to post a week of gains, north of .9%. into friday there's another lift . on futures we advanced 21 points . a huge weekly range on the 10 year. 1.2947 is where we are. tom: i would say the velocity of the equity markets in the last 90 minutes, we have seen other further lift. a 15 print on the vix later today would be extraordinary. he is extraordinary.
many would say edward hyman invented market economics. evercore isi chairman. we are thrilled he could brief us into q3 and q4 of this tumultuous 2021. i want to cut to the chase. you've seen this on your engineering at m.i.t.. pricing power can happen, it cannot happen. this time around you say there is pricing power and corporations can adapt to the new inflation. how they do it? edward: when we surveyed retailers they tell us pricing power is the most ever. we also serve manufacturing companies and say the same thing. costs are up. labor costs are up also. independent of that, companies are able to pass it along. i guess because the economy is
good people are getting pay increases. it also is important because it allows earnings to go up and earnings are explosive. they will be strong in the third quarter as well. tom: what do you see for q4? the idea of inventing market economics into market analysis, many say you did that. chart, paragraph. what to the charts say now about the fourth quarter? edward: in terms of economic growth, we have it slowing down to about 6%. 10% in the second and third quarters. because i'm focused on the stock market, i think earnings will increase again. we have earnings in the second quarter at 220, which is probably $20 ahead of the
consensus, then 230 or 240 in the third and fourth quarters. the pe is something like 19 times with bond yields below 2%. the fed balance sheet increasing $120 billion every single month. jonathan: you mentioned higher prices. i want to get you to emphasize that a little bit more. higher prices lay the foundation for higher prices. that virtuous cycle that seems to be taking place. is that a virtuous cycle you think underwrote -- overwhelms the federal reserve where is this the right kind of price growth? edward: i think it will be -- we do a lot of work on rent and they were searching, 40% of the core ppi, 20% of the core pce.
rent will be running around 6%. wages have been going up and like we discussed, pricing power is going up. inflation is likely to run ahead of expectations. i think it will settle out at around 3% in 2023 to 2024. it will be higher than it has been in the past. jonathan: how does this affect your views for what the federal reserve has done that a fireman. that higher rate of change -- done in that environment. that higher rate of change, how does that affect your views of monetary policy? edward: i hate to state the obvious but they will move, they have already indicated they will move. they will start to taper. it will take about a year to get down to zero, and then they will start to raise rates. neither of those are tightening,
they're just less stimulative. eventually they will get to a tightening position. i think the fed is probably behind what i see, but they are moving. so they will keep moving. whether they start to taper in december or january, which is a discussion at the moment does not make a big difference. taylor: do you see a taper tantrum or has that already happened? edward: ben bernanke gave us a good way to avoid it. he showed you what could happen. they have been very careful in trying to avoid a taper tantrum. i think they have been largely successful. now everybody is on the same page to discuss it in upcoming
meetings, at least according to the journal. probably by january they will start to cut the balance sheet expansion. it will be 120, 110, then you get to zero in 12 months. tom: the hallmark of what you invented was your granularity. we used to wait with baited breath, ed would sleep in and we would be lucky if we got the report by 10:00 and there would be this ugly black marker where ed hyman would say shut up and listen to this. how does your granularity, your study of american business respond to business people that say they cannot find workers? you say to yourself raise the damn wage? how do you respond to that? edward: pretty much.
we will see if there is an increase in workers when the enhanced benefits roll up in september. i agree with what you implied. that is what isc is happening -- that is what i see is happening. companies simply raise pay. at the $15 to $20 now are wage come if you do two or three dollars you can get a significant change in the number of people applying. that seems to be enough. i think you'll see a pretty big pop in wages. it could be transitory. it is also moving up the change. you saw blackrock is giving an 8% across-the-board pay increase. bankers are up to $100,000 in our -- up to $100,000 an hour.
it is not just $15 and our workers. tom: will jerome powell continue at the federal reserve? edward: we will find out. it is not a done deal. i am sure joe biden is considering the options and considering whether or not he needs to work on having a broader footprint. i do not think it makes a difference. if he is replaced whoever replaces him will probably be a little bit more dovish than he is. it will not be a tightening. tom: we have to come to the conclusion that chairman hyman would look awfully good. jonathan: i do not think ed
wants to respond to that. edward: to not listen to that guy. jonathan: be honest. for you, for the chairman, it is hard for a lot of people to get the direction right. earlier this year it was somewhat straightforward. you knew washington, d.c. would be a tailwind. everyone was revising gdp higher. can you look down to d.c. now and characterize things on the fiscal side, the range of outcomes and how wide they are as you try to generate a decent outlook with some confidence? edward: first, let's not leave the monetary part behind. it is still a huge tailwind. monetary policy leads by one in two years. on the fiscal side, my team in washington comes to about $2 trillion when the dust settles.
it is not the $3.5 trillion but it is not $1 trillion either. i think you will get more stimulus. that is over a decade. it is a couple hundred billion dollars a year. jonathan: the world has changed. there was a time when a couple of hundred billion was big, and now anything under $1 trillion you're a fiscal hawk. ed hyman of evercore. thank you so much for joining us. the equity market there is a left. we will continue the conversation we started with ed hyman with mohamed el-erian of queens college cambridge. he joins us in about 20 minutes on bloomberg tv. tom: really important. from the granularity of ed hyman i got some enthusiasm. i think mohamed el-erian is a
little bit more cautious about the greater system and what it means for markets. jonathan: they're both on the same page about inflation risk. they are on similar pages. tom: what will that inflation do. jonathan: i'm trying to understand the degree to which mohammed believes the federal reserve will be overwhelmed by the inflation outcomes he thinks we will see. i'm also trying to establish the degree of confidence you can have about the economic outcomes beyond september. at the moment that is difficult. tom: the key is the phrase beyond september. jonathan: from new york city, great to be with you all stopped taylor riggs, thank you for being with us. it has been a long week. more to come from you. taylor: i am still from here. jonathan: please that is back on monday. with your equity market pushing higher, this is bloomberg.
laura: talks between the european union and the u.s. on vaccine passports are making little progress. bloomberg has learned there is no federal certification program in america. the u.s. launched its covid passport at the beginning of the month. the block is at an advanced stage of talks on the vaccine passport. colony capital founder is back in federal court in los angeles. the trump ally will learn whether he will be released on bail. prosecutors say he is a flight risk. his lawyer says he is not guilty. jp morgan is planning to more than double the number of advisors at its traditional broker business. it will expand in wealth management by hiring more than 500 advisors. jp morgan also wants to bring the unit closer to wealth managers. wall street banks have been bulking up the businesses that cater to the affluent.
intel says the worst of a semiconductor sales slump has passed and the ceo is sounding bullish about prospects for the rest of the world. intel's most lucrative business picked up. still analysts are worried the 9% decline in sales may signal a long road to recovery. global news 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. i am laura wright. this is bloomberg. ♪
time, we are committed to getting back into our offices in getting back to the restaurants. tom: the gentleman from duke is with mcdonald's. there ceo. an interesting background. selling soap at procter & gamble and a background selling the best cheeseburgers on the planet. he is with david rubenstein. taylor riggs in for lisa abramowicz. our great honor to get some clarity on where we are in this pandemic. we do with this with peter hotez who has become nationally known, metairie -- many media appearances and a piñata for the anti-vaccine crew. from taylor college of medicine. you need to know he is codirector of parasites without borders, with an incredible focus on the children of this world.
he is texas children's hospital and dow chair in tropical pediatrics. you deal 24/7 in children. what is the risk to our children of the delta variant? dr. hotez: i think what is happening is it is not that this virus is selectively targeting children. what is happening is this is so highly transmissible, it is twice as transmissible as the previous lineage we had. pretty much anyone who has not been vaccinated or previously infected and recovered is getting swept up in this along with kids, particularly in areas where they have not vaccinated well, people forget you are not getting vaccinated only to keep yourself out of the hospital, but also if enough people get vaccinated it slows your health transmission, so the kids were not eligible to get vaccinated are protected. that is what is happening in the northeast but not down here in the south where the vaccination
rates are so abysmal. tom: how sick did children get? is that part of it? the unvaccinated would say it is a so what. is it a so what? dr. hotez: the misinformation and disinformation is they quote death rates and only point to older americans or those with underlying disabilities, comorbid conditions who lose their life. the problem is we have a lot of young adults, adolescents and kids who are getting very sick, requiring hospitalization. now we are to see intensive care units for adolescents and some of the younger kids start to fill up. we do not know the full a stent -- the full extent of long covid, this more long-term condition which includes neurologic injury. we do not know how long that is.
it is all hands on deck to keep kids from getting infected. taylor: should schools be fully reopened? dr. hotez: it depends on where the transmission is. whether i think they should be fully open or not does not matter. that ship has sailed and in person classes for a lot of the country. they key is trying to get the adults and adolescents fully vaccinated. if you look at louisiana and mississippi, 15% or 16% of the adolescents eligible are vaccinated, it may be 40% of young adults. then you have red state governors were food -- red state governors refusing mass mandates and then you have the delta variant. you say what could possibly go wrong? we are asking for trouble. we have to jack up vaccination rates in the south. taylor: let's talk about the mass mandates. i go home to the home state of
california and l.a. county is mandating masks indoors and outdoors for fully vaccinated individuals. should that be a requirement? dr. hotez: certainly for indoors, as delta accelerates. the reason for unvaccinated individuals who are high risk, but even the vaccinated ones, and it takes time to explain. we think what is happening based on studies out of china is that this virus is multiplying at much higher rates in the nose and mouth, about 1000 times more. even if you are vaccinated and you get infection come in the past the vaccine was good at stopping not only symptomatic illness but asymptomatic transmission. what is less clear with the delta variant is the first parameter is holding it keeps you from getting seriously ill or symptomatic illness. that is great. people who are vaccinated may still be shedding a fair bit of
virus if they get asymptomatic infection. that is the reason for remastering. the cdc has not come out of the recommendation, but that is where things could head. tom: six months ago you had the courage to publish an article linking soviet theory with american anti-science. you said anti-science kills. elaborate that -- elaborate on that now with six months more knowledge. dr. hotez: we just have to look at the numbers. the reason why 600,000 or more americans have lost their lives is partly due to the sars two coronavirus, but in equal measure due to defiance, defiance of the masks in social distancing, defiance over vaccines. it is all a consequence of a massive disinformation empire. we heard a little bit about last weekend this week from the white house around facebook. i point out this is so much more
than facebook. it anti-science aggression coming out of u.s. members of congress, some of the conservative cable news networks. it has been reported that the russian government is trying to destabilize our democracy through weaponized health communication using anti-science as a wedge issue. we have nongovernmental organizations. at least a dozen of them identified by the organization for countering digital hate. it is amazing we have to have an organization for countering digital hate. this is a well organized empire. the u.s. government puts a lot of effort into putting an infrastructure to combat global terrorism, to combat nuclear proliferation, to combat cyberattacks. this anti-science thing is killing more americans than those others combined. we need to recognize that.
so far the biden administration is skirting around the edges. this will not do it. tom: will continue this conversation. thank you so much for briefing us. with the baylor college national school of tropical medicine, peter hotez. i want to drive to the close. are there earnings out today? taylor: we do not get the earnings story. i was going to say to ed hyman, it is incredible. whirlpool is raising prices up to 12%. consumers are not blinking. it is unbelievable. tom: the key thing is the number 12%. it is like the rent up 6%. these are not incremental price increases and the cuteness of how many tomatoes in the can jack welch was talking about. taylor: we will do inflation for you and real wages. tom: we know the mcdonald's conversation. he runs 50 miles a week. taylor riggs runs about 60 miles
right now. >> everything you need to get set for the start of u.s. trading. this is "bloomberg: the open" with jonathan ferro. ♪ jonathan: from new york, we begin with the big issue. looking ahead to chair powell. >> volatility in both directions. >> an environment where there has so much volatility. >> the most recent move has been more of a general risk off shift. >> what is going on at the long end of the curve. investors need to cs is interest rates continue to rise. >> it has been well fellow -- well telegraphed that the fed will begin to taper probably around year end. >>