tv Bloomberg Surveillance Bloomberg July 28, 2021 8:00am-9:00am EDT
>> this kind of economic strength, while it bodes very well, doesn't necessarily mean that corrections don't happen. [indiscernible] >> they are all using traditional models, but this has been a very nontraditional recession. >> we are already in that decelerating upward revision pace, and about half of the sectors or contribute into that right now. >> the era of 0% to 2% inflation is over, and as a result, we are going to have to get used to a little inflation. >> this is "bloomberg surveillance" with tom keene,
jonathan ferro, and lisa abramowicz. tom: good morning, everyone. fed day with our coverage this afternoon. but before that, the reporting on profit and increased revenues. a resilient corporate america. norfolk southern out limits ago. they look good -- out moments ago. they look good. so does everyone else. jonathan: things are ok. apple just delivered record revenue in every single geographic segment. just delivered apple to j growth in everything go product category -- just delivered double-digit growth in every single product category. the staff at boeing as well, they were looking to trim down. things are progressing at a way that means they can maintain things at 140,000. things are ok looking at these numbers. tom: victory lap, i think you and i have been way out front on the idea that corporations will adapt and adjust.
how does chairman powell adapt and adjust today? jonathan: what we are talking about today is an observation about where we are. that is not a judgment on the future. how the supply side of this economy response is going to be really interesting. the argument just a couple of our guard -- couple of hours ago, maybe it won't respond in the way we anticipate. tom: we have a patient fed chair, but he is a society fed chair as well. we've never had a chairman so focused on the inequalities of the nation. will you listen for that today in our coverage? how does he play that? lisa: frankly, that will give guidance as to what the metrics are they are looking for before they start tapering. what will employment actually means at a time when he is looking at who is getting employed. i will say that the fact the fed chair is willing to remain patient really flies in the face of those earnings to tie this all together. again, 87% of s&p 500 companies reporting in july have talked
about inflation, how that has affected their bottom line. consumers aware of inflation. how does the fed chair continued to justify the transitory kind of theme as he moves away from that word in a world that is excepting a very different reality? tom: i day or two ago, you are the one who said labor participation matters. i don't know if he is going to bring it up directly, but this is a chairman who has to wait for an american labor recovery. lisa: what is their policy doing to actually help the labor market? this to me is very unclear. we don't understand the full friction in bringing people back online. tom: the other observation, really important on radio and television, we don't need a chart. jon ferro nails it with the last fed meeting. jonathan: closed that day higher with yields at 1.57%, now at 1.2610% on the 10 year yield. tom: and the 30 year under 2% as
well. red and green on the screen. tell us what else you see. jonathan: positive two points on the s&p, posited by 0.05% into the premarket. in the fx market, euro slightly negative. it is one of those snoozy mornings i had of a fed conference -- mornings i had a fed conference later. tom: of course, what to do with the money? let's start with the bond market. how can i own bonds with yields this low? >> that is the question many investors have been asking, and we have been working with our clients to ensure that the old 60/40 is not the new 60/40. i think you have to include some alternatives if you are a qualified purchaser or credit investor on the yield options that are available in some of the illiquid markets. you are going to have more opportunity then you had any traditional market.
that doesn't mean bonds as part of an asset allocation are going away. high quality, intermediate duration municipals are still positive this year. the default rates in that asset class remain very low. balance sheet's and rainy day funds have held up. we would say bonds still play a role in being a defensive asset class for investors. tom: i'm looking at the dow, 12 months trailing. s&p does better, up 37%. what do our listeners and viewers do who have been left behind, like people in the triple leveraged all-cash fund? how do you enter the equity market if you are not on board right now? beata: we work with our investors to understand their individual risk tolerance is not one answer for everybody, but we would say averaging for the market is the right thing to do over a period of time. when we look at valuations today, while they are high on absolute levels, you were just
talking about it earlier, corporate profits have been incredibly strong, one of the strongest quarters on record. we are watching the fed just like you are watching the fed. what is going to happen on rates is going to determine those multiples on the market, and today, with rates as low as they are, the multiple is not high on the equity market. it comes back to what is your best alternative to equities. we remain overweight equities tactically today for our investors. jonathan: let's talk about the regional breakdown. how are you leaning towards international the moment, with all of the headlines in china and elsewhere? beata: international is not one monolith either. you've got to really split up what is happening in the developed international markets from the emerging markets. as you know, china is about 1/3 of the emerging markets benchmark. so let me go to europe. they have been lagging from a vaccination perspective. as you look at the u.s. market
relative to our vaccination rate, as vaccinations went up, the market rallied. we think the industry is primed to follow suit. the european market is leaning into financials, industrials, more consumer discretionary names as we see more opportunities from that perspective, as well as valuation in the developed international space. lisa: i am going to steal a question from jonathan ferro, who has been on this issue for a long time. why not just on the index? there's a question of the role of active management at a time of such a strong growth. there is diversification under the index headline level, and yet, if you own the index, you have outperformed. why is that not going to work going forward? beata: we think we are at a prime time today for active management. if you look at the style shifts that have occurred on the s&p 500 year to date, you started the year where it appeared that only cyclicals and value -- that
owning cyclicals and value was the thing to do. as the delta variant popped up, the growth stocks came back into focus. to really solid stockpicking by active managers has therefore outperformed that passive index. this is a year when we think you really have to be nimble. you don't want to own one or the other. we are not making a call that says the time is now for value. we are making a call that idiosyncratic stock selection is the way to go, and we are seeing that play out quite nicely this year. lisa: howdy remain nimble? is it cash how do you remain nubile -- how do you remain nimble? is it cash? beata: for individual investors, we work with our clients to start out with that cash pool and get invested at a time that makes sense for them. i think it is a time where having some cash to deploy and look opportunistically is a good
idea. jonathan: good to get your thoughts on this market. beata kirr there. for those of you who follow the dow, you might be interested in boeing. it makes up about 4% of that particular index. i will bring you the numbers. boeing coming up with numbers, revenue $17 billion. the estimate, 16.54 billion dollars. that is an upside surprise. good news for the workforce. encouraging trends have allowed them to keep the workforce unchanged, roughly consistent at 140,000. had planned to cut to about 130,000. so a good read for the business, for the stock, but also for the economy as well, the workforce. tom: this is a really important observation. what is so important about it is the why. why are they doing this? they are afraid if they lose them, they can't get them back. jonathan: this is a really important point. you are planning for the next year, the year after that, the year after that. tom: we are doing this dance on
extrapolation. everybody, particularly in business media, we are focused on what we are doing at clock a.m. on the open. that is -- at 9:00 a.m. on the open. the rest of the world is looking out two years, three years, five years. jonathan: i think the rest of the world is also focused on the open with me. i'm with you, tom. those long-term decisions matter. in an economy where it is really difficult to attract staff, let's be clear, this is an economy that is very difficult to ramp up production because you can't get the staff. cutting the staff is a huge decision, and even bigger one. lisa: i think it is the right point to point out, well done. you said earlier we have seen a shift away from the employer's to the employees. is this just another sign that perhaps people are being valued in a different way than they where i year ago, when they were being cut? i wonder how much the experience of delta, american airlines, and united struggling to bring
pilots online quickly enough to meet demand, how much that is really driving some of these staffing policies. jonathan: did you see that after michael mckee perhaps alluded to that yesterday? lisa: was that what he was talking about? jonathan: i'm not confirming that it was with that airline. i'm suggesting that michael mckee had a difficulty with an airline, and one particular airline did apologize. tom: it is a broken model, period. jonathan: with that specific company, or the industry? tom: across the industry. it is a broken model across the industry. jonathan: equity futures advanced 0.02%. yields higher by a couple of basis points to 1.2 not 53% -- to 1.2593%. this is "bloomberg surveillance ." ♪ laura: with the first word news, i'm la right -- i'm laura wright. pfizer plans to launch a study of a vaccine that targets the
delta variant. delta is blamed for the surge of covered cases in the u.s. and elsewhere. pfizer says the first batch has been made. federal reserve chair jerome powell and his colleagues are likely to exercise patience today. policymakers are almost certain to hold interest rates near zero at the end of a two-day policy meeting. the delta variant is seen as given powell another reason to stay cautious. stocks in china and hong kong halted a three-day selloff. state run media tried to reinsure investors shaken by the government's regulatory crackdown. traders fear the latest moves against education, tech, and the property sectors could expand to other industries. u.s. gymnast simone biles has put the spotlight on her mental health, as well as for other athletes. biles has withdrawn from the individual all-around final at the tokyo games a day after she withdrew from the team final. according to u.s. day -- two usa
gymnastics, she will focus instead on her mental-health and will be evaluated daily to see if she will take part in next week's individual event finals. global 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. ♪
up 36% from last year, and the vast majority of markets we tracked moved double digits with especially strong growth in emerging markets, including india, latin america, and vietnam. jonathan: almost called him tim apple. that's a throwback, isn't it? something someone did a number of years ago. good morning. alongside tom keene and lisa abramowicz, i'm jonathan ferro. wednesday morning, here's the price action on the s&p. we advance a single point, up by 0.03%. a lift on the nasdaq 100, advancing 0.3%. yields higher by a couple of basis points on tends going into that fed decision -- on tens going into that fed decision and news conference. apple in the premarket was just a little bit softer. it is down 0.9%. beats across the board here, but just a sneak peek talking about slowing growth and supply
chain disruption persisting. we are down 0.9% to $145.48. tom: the angst is overwhelming. tom ford will give you two pages and critically, excel spreadsheets that say shut up and buy it. tom forte, buried in your voluminous research note is a revenue build of 10%. can you extrapolate out a 10% revenue build for apple computer out two years, five years, 10 years? tom f: yes i can. if you look at it as a precursor of what sustained sales could look like for apple, they have north of 40% revenue growth in the june quarter for china, but the build up in the 5g network is far ahead of the u.s., far
ahead of the western world. if you are thinking of starting with china and 5g, i think you can have a sustained double-digit topline growth for apple for years to come. tom k: they are buying back shares with apple cash flow. if you get revenue growth, do you assume the privatization of apple with that massive share buyback? tom f: i think you can assume they will continue to use a large portion of their free cash flow to buy back their stock. i think the big benefit apple got when they lowered the corporate tax rate is it freed up even more cash flow to buy back shares. so yes, they are generating by apple standards very robust topline growth. when you think of their high margins, lots of free cash flow, lots of opportunity to buy back their stocks and retire the shares, as you pointed out. jonathan: the company has pointed out that supply chain problems might persist.
the question is always looking ahead one year, two year, three years, how to value this company come on what multiple. if we continue to see the shift towards services, and we get the continuing revenue boost we have seen, what is the appropriate multiple for a company like this one and a company is developing into? tom f: excellent question. for most of my companies, i am discounting the $145 share price target. to the extent that apple has a larger portion of continuing services revenue versus their hardware, we have seen an increase in the pe that investors are willing to pay for the stock, and yes, it could go even higher if they have a larger portion of sales that are recurring. lisa: in the meantime, how much are you looking at the iphone
cycle and the fact that people are looking to some new models that perhaps aren't as exciting as some of the more recent advances? the idea that we might have to wait a while before the 5g cycle really gets some steam? tom f: the way i think about it, at least in the early stages of their 5g devices, when you think about the pandemic, most consumers were using them at home. having a new iphone with a faster processor on your home wi-fi was a great experience. to the extent that this has given apple air cover as the networks in the u.s. and across the globe are built out more for 5g, we think this plays out well for apple. lisa: we did see services revenue come in much better than expected. there is a concern about what they have to do, how much they have to fortify what they provide in order to get the revenues that they would like to see going forward to justify some of these multiples. what do you foresee in terms of media, either acquisitions or development, to really justify
the move to a service-based company? tom f: the way i think about it is apple and amazon, for the most part, are builders, not buyers. there's been a couple of exceptions for amazon. mgm is a buy, not a build. but for apple, think of the early days of apple tv+. "ted lasso" had something like joining me nominations. to the extent that these early-stage efforts start to improve over time, and to the extent that consumers with their large install base engage in more digital media, i think that could help apple with their services revenue, and also on the multiples front. jonathan: you have teed up the "ted lasso" talk. let's keep it serious just briefly. your price target, you notched it up despite the supply chain constraints apple spoke about. is there anything to be concerned about after that call
yesterday? tom f: the concern remains government interference, especially when you look at what is going on with china. 30% is there take rate for many of the apps in the app store. to the extent there is regulation, executive action, things that could lower that figure materially, perhaps to 10% over time, that still has me up at night for the stock. concern over supply chains would be second. jonathan: good to get your view. thank you. tom forte, da davidson senior research analyst, looking for $145 on apple. before today, 140 $6.77. right now, -- $146.77. right now, $145. tom k: i wonder how they adapt on these earnings. do they throw in the towel? do they hold? i don't know. i would go back to margin persistency. no unexpected that. lisa: mostly very impressed by
the earnings, saying they have beaten, even though they are not providing forward forecasts. this is par for the course post-pandemic. i think what tom forte was saying about some kind of regulatory action is important, especially in light of the dominance these companies have. i know that joe stiglitz of columbia will talk about this, but the idea of whether the biden adminstration will take action, whether the chinese moves against tech could have any galvanizing effects, it is a question that is still out there. jonathan: we will be catching up with joseph stiglitz, the nobel prize-winning economist and columbia university professor of economics. your market up three on the s&p, 0.08%, following some big numbers from big tech. just beats across the board. outside of that, yields higher by two or three basis points to 1.2694% going into a fed decision and chairman powell news conference. full coverage on bloomberg tv,
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jonathan: live from your city for our audience worldwide on tv and radio, this is bloomberg surveillance alongside tom keene and lisa abramowicz. i'm jonathan ferro getting you set up for the day ahead. jay powell taking center stage at about 2:00 eastern. our coverage will begin at 1:30 eastern time. alongside tom and lisa, i will be joining them. your equity market advancing little more than .1%. just off of 4400. into the bond market, yields higher two or three basis points. your yield into the fed call, 1.2660. tom: i will editorialize and say we have the best list of guests ever. we have a terrific lineup today. scott minerd will be with
bitcoin to tell us it is going to $400,000. joseph stiglitz of columbia university has many different parts of economics he studies. right now, joseph stiglitz on our fixation on secular stagnation. professor stiglitz, this goes back to and onto lawrence summers. you say it is not secular stagnation, it is a complete focus on growth. explain to us why secular stagnation is off the mark. dr. stiglitz: the idea of secular stagnation was there is something wrong with the economy such that even at zero interest rates you cannot maintain full employment. that led to the idea that the
zero lower bound, it was the inability to get interest rates negative that prevented an economic recovery. my view has always been that the reason the economy was weak in the period of after the great recession was we did not have enough fiscal support. it was not anything about secular stagnation, it was about a policy failure. president obama could not get support from the republicans of a sufficient fiscal stimulus to get the economy back to a robust recovery. today, with president biden, we have shown that if you given a fiscal stimulus you can get a strong economy. the real question facing us today is whether we will be able to get the second dose, the
broader on infrastructure and family care -- tom: that is a political debate will have for another time. you own little g economics, complete focus on the debt rate. with the deficit buildup we have an lawrence summers concerns over secular stagnation, do we risk too low of a growth rate which destabilizes our believe in paying off debt and reducing the deficit? dr. stiglitz: the imf and its world economic outlook, which just came out actually says that if the biden plan is adopted, and went ahead and made projections assuming it would be , our growth would be 7% this year. over 4% next year.
they like me are confident that if we give the right support to the economy we will have growth. that growth will enable us to be in a good position to repay the debt and sustaining these investments will provide a basis of growth over the longer time. lisa: we have been in a perpetual low inflation environment. you are blaming a policy failure on the fiscal front as the reason why. going forward to shape our inflation debate, how much do we have to look at the supply chain disruptions we are hearing from almost every company that reports earnings this season? dr. stiglitz: the market is quite good in steering the economy when there is a small adjustment, we want more cars, we want bigger cars, smaller
cars, we are always going through these adjustments. we have been through an experience that other than times of war we've never been through where you transform, shut down large parts of the economy. the market does not do a very good job in these very sudden transitions. i am not surprised we are seeing lots of bottlenecks. i have enough confidence in the market that most of these bottlenecks will be overcome. you saw that in the case of timber prices. they went way up and way down. is there any fundamental reason why the market economy cannot produce as many cars as americans want to buy? we were complaining before about lack of demand for our cars. of course there were going to be hiccups as we restart the
economy. the question is is there any fundamental reason we should expect this other than transitory? the answer is no and that is where the imf is and where the fed is. that is where all of those, other than those who are trying to oppose the kind of sectors being proposed to get the economy back on growth. lisa: there are some things that have changed. there has been a deglobalization. on the margins there has been a bit of a shift towards labor away from employers. we saw boeing restraining itself from firing certain employees because they did not want to worry about rehiring them when they needed them. earlier this morning that announcement came out. what you say to all of the shifts, they are not fundamentally changing the character in a way that could alter inflation to a higher
tilt? dr. stiglitz: there will be some increases in prices in the process of that kind of adjustment. on the second point you made, that the profit margins have been so high that they can easily be absorbed without increasing prices, that is one of the disconcerting things happening in the united states over the last 15 to 20 years has been decreased in the share of labor and a correction to increase the share of labor would actually be welcome. can be absorbed without any significant change in prices. globalization, there will be some adjustments, project leader trade relationship with china.
remember there are many other emerging markets, many developing countries. if we import less from china, more from vietnam, do we really think that will have a big impact on the course of inflation every significant time? tom: i hate to tell you, but it has been 13 years since unite talk about your courage to write a book on iraq and tangentially on afghanistan. the $3 trillion war was hugely controversial, except everybody had to shut up and read it. that is what you did. joseph stiglitz, could you comment on this incredibly important book about our leaving afghanistan and the reports we may leave iraq. dr. stiglitz: when we wrote the book, the $3 trillion war
highlighted the economic cost of that war. our own estimates were that the number was greater than $3 trillion. we wanted to be on the very conservative side. we now have the evidence. the cost for health care and to pay for our veterans who are coming back is in the order of magnitude of a couple trillion dollars. in fact, it turned out our estimates were as we intended them to be, vastly conservative. we focused on the cost of the war. the other side of it is the benefit of the war. i'm afraid that is negative. if we look at that episode, we
destabilized the middle east, we did not do what president bush claimed we would do, which is advanced democracy. jonathan: always appreciate your time. good to catch up. joseph stiglitz, columbia university professor economics and nobel prize-winning economist. your equity market up five on the s&p. yields up. is this our new game? apple, up or down? tom: the price targets are up. i think it is down. jonathan: the earnings? ok. tom: what is ives doing? is ives there were hundred dollars a share? jonathan: he called it a drop the mic quarter. tom: who will be first to 5000? jonathan: where are we now with
tallbacken? 4800. tom: i'm just trying to create -- i want some drama. this afternoon will be a snooze fest until michael mckee asked his question. jonathan: are we doing breakfast at 10:00? lisa: i will come to breakfast. jonathan: you want to be part of this were an extra hour? lisa: maybe i will take a nap. jonathan: coming up on the open, bob michele of jp morgan. tom: we have canadian breakfast. jonathan: i'm not going back to that place unless they have bloomberg. i was not impressed. we walk in, it is not on the tv we walked back out. if there watching now, good. from new york, this is bloomberg. laura: i am laura wright. the house committee investigating the attack on the capital can subpoena former president trump stop allies.
in the first public hearing members of the panel made it clear that the former president activities are a central focus of their probe. yesterday they heard dramatic testimony from four police officers who helped to defend the capital. congress is going to back the masks. reimposed a mask wearing requirement for all lawmakers while they were on the house floor. two house members and several staffers have tested positive in recent days. second quarter sales beat estimates at mcdonald's. u.s. customers proved willing to pay higher prices at fast food change and there are pandemic related closures. comparable store sales rose almost 41% globally from a year earlier. shopify's second quarter profit was more than double what analysts had estimated. the canadian e-commerce company gave the credit to the bided administration stimulus package and what it called official commerce trends.
apple's warning sales growth may be slowing and supplies are getting tight. that put a dampener on investor excitement after record-setting third-quarter. apple says supply constraints will affect the iphone and ipad in the current quarter. 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. ♪
started. i cannot wait to keep building on that and enjoy that, making new shows there, building on our podcast world. enjoying those worlds is exciting to me. tom: this is the example of what you do when you go to a good school and you take one of those wacky majors like film studies and it works out. her name is shonda rimes and she is definitive in the storytelling of a modern age. there is no other way to put it. there are some on our team who have not gotten over the death of lexie in grey's anatomy. i hope i'm not giving it away for anybody like lisa abramowicz. our expert on storytelling david rubenstein joins us. peer-to-peer tonight at 9:00 in new york. a conversation with someone creating each and every day. what did you learn from ms.
rhimes. david: she grew up in chicago and went to dartmouth and decided to get into writing after she tried her hand at advertising. it turns out she is the greatest writer and producer in recent hollywood history and is the most powerful force at netflix because the show she just produced and wrote has broken all of the records for netflix. an incredible talent, very nice person. i've got to know her over the years because she was on the kennedy center board for six years and she still helped serve on the kennedy center honors selection committee. she is incredibly smart, good writer, very creative, and a very likable person. tom: is she her business person or does she have people around her that help her? david: she is not that focused on money so much as creativity. she does have people that manage her money, but she does not measure her self-worth by her neck work. she is not trying to be the
richest person in hollywood. she tried to create good shows and now she has adopted three young girls and she is raising them as well as doing all of the other things. she is gritting a lot of shows -- she does not seem to have any failures. she is an incredible person and she is very young. under the age of 50. lisa: i must have a confession. richardson -- bridgerton is also fabulous. she has rising at a time of incredible power of content. what did she say it in the longevity of the trend we have seen as the streaming wars heat up? david: grey's anatomy has been on for 18 years. it is don abc even though she is not directly -- it is still on abc even though she is not so directly involved. she has abilities to write things that will stay for the test of time. she is not a one trick pony.
she has produced a number of shows that if done well. she has the ability to not only produce but right. writing is very hard. it is a solitary business. she likes to be alone. during covid should to write more. she finds that she will work from home more. sometimes writers get out of being writers -- she likes writing more than anything else. tom: i look at all of this and it comes back to your interpretation of the streaming success, whether it is what shonda rhimes is doing or ted lasso or the rest of it. profit is not out there. how do you expand accretive business if nobody understands where the prophet is? will there be profit? david: there's a lot of profit in streaming. netflix is a very profitable company and has incredible subscribers.
it is not clear where it will go. the streaming is the future. that is one of the reason she left abc. she went from thursday evening programming for abc and left abruptly. then she went to netflix because she saw that is the future and probably streaming is the future for this kind of creative work. tom: do you see it as a future without an identifiable profit? the roberts family made that flip with comcast to a substantial profit. do you see streaming doing the same flip to a substantial sustained cash flow? david: i think it will be very profitable. people are more comfortable watching things on their computers and their televisions. as we now know, people are putting the court on their cable tv subscription. people are going to streaming. that is the future. the only thing is in the investment world, you say this
is the future what is the future beyond this? clearly there will be something beyond streaming. right now i suspect it is mobile streaming and things will be watching on your mobile devices that will be better than what we have today. tom: thank you so much. greatly appreciate it. really interesting. i find wonderful how he does this with so many different things. i've not watched bridgerton but i have a full report from family members that fairness feather 10 -- that baroness featherton is trouble. lisa: all of her work is addictive and she is coming into her own at a time when content is king. i go back to your point about streaming. you have to crash -- you have to craft shows differently for streaming and how do you win the streaming wars when there are so many different series coming out? you talk about the
profitability, how you get enough to drive that forward? tom: you have cnn plus coming in . some form of 200 plus employees streaming effort. all of this is great, but i do not understand the value is. moffat davidson, they are the pros. that is the question they bring up. lisa: you look at apple, we've been talking about how they are trying to become a services-based company. talking about building up the internal capacity for media. however, if you have the content, they will come. we saw that with disney plus, we have seen that with netflix. if you have what people want to watch, this is the new model. you do think that is an inherent profitability. tom: new models are the old models. smart conversation on the fit.
i am in the camp where it is first do no harm. let's get through this with a minimum of worry. lisa: you tried hard to make it sound interesting. it is july, he will shock everyone. no one is expecting him to do much. i am theories about the market response. do we see yields rise because with think the fed will be behind the eight ball and inflation is running faster than they are knowledge and? that is a real consideration. tom: real yields fractionally better than the debt two days ago, the 10 year at a stunning 1.21%. elevated here come up two or three basis points. 1.27 lifted off the jon ferro low we have seen. bitcoin, a 40,000 print when i walked in the door. maybe bitcoin will come up as well. dow futures up 13.
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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 chairman powell. >> jay powell. >> how does chair powell talk about the discussion around tapering? >> everything points to the fed tapering in 2022. >> i do not think we will get the same amount of fireworks. >> the fed is dealing with fundamental uncertainty. >> i think there is a fine balance. >> very cautious, very centrist. >> low expectations. >> we need the fed