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tv   Bloomberg Surveillance  Bloomberg  January 20, 2022 6:00am-7:01am EST

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will rise this year. >> the market is only pricing in if you are right -- only a few rate hikes. >> the fed is behind the curve now. announcer: this is "bloomberg surveillance" with tom keene, jonathan ferro, and lisa abramowicz. jonathan: good morning. this is "bloomberg surveillance" alongside tom keene and lisa abramowicz. the nasdaq is bouncing back on the nasdaq 100. down 10% from the november high. tom: it is a correction from a percentage basis. i need a little bit more to make it a standard deviation correction. it does show the importance of netflix, maybe not a new defensive. netflix this afternoon would be a big deal. what i will notice is we
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reaffirm curve flattening this morning. that has my attention. jonathan: that is the bond market story. what gets my attention, the outperformance. not even four weeks into a trading year and we have energy stocks up more than 16% in america. lisa: if you read the notes, people think they have not gone far enough. especially as $100 barrels of order -- bureaus of oil are being priced in. perhaps people got carried away given the fact that there are supplies, back online. jonathan: not just about the markets. we need to talk about the politics. a marathon effort from the president of the united states in the news conference yesterday. maybe a little bit of a bump of the road at one point over russia and ukraine. tom: because of the press conference, we have brian deese coming up. we are looking for a 25 minute interview to stretch it out to give it the flavor of a long press conference. things shifted last night.
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everybody, worldwide and particular in europe, shifted on the president's comments on the territory of ukraine. three nato countries around you. of course, the russia challenge right now. nothing else mattered. jonathan: "it is one thing if it is a minor encourage and -- minor incursion we have to fight about." what did you make of that line? tom: i was speechless. i immediately went to my temperature take on history where if any president ever said something like that given the visibility and the immediacy and the number of people listening, i cannot think of a single moment in our history where a president has spoken like that. jonathan: we will head down to washington in 15 minutes. there is a bounce on the s&p advancing 0.5%. up about euro .8% on the nasdaq. -- up about 0.8% on the nasdaq.
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crude is just off of the highs of yesterday. the highs keep getting higher. $86.72 on crude. lisa: a lot of people pointing to the potential for a big increase. i was really struck by the eurozone inflation figures that came in as expected. energy is the main driver of that inflation you are seeing in the united states as well, major component. 8:30 a.m. we get u.s. initial jobless claims. i am looking at the continuous claims which have reached a level not seen even pre-pandemic. number of people receiving benefits from the government. how much does is edify the feeling of a tight labor market? steve auth makes a really interesting point that if the fed is too dovish next week, that could cause a negative reaction in the markets that are seeing some real tightening in the labor markets and some real inflationary pressures at an ongoing level. 10:30 a.m. we get the crude oil
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inventory report. how tight are these markets? oil prices surging to the highest levels since 2014. last night, president biden, among the things he said in addition to his comments that were very controversial about russia, he talks about oil saying we will work on increasing oil supplies available, but it will be hard. and he was talking about the temporary effect of the relief of the oil reserves earlier. what more can he do? clearly it is on his mind and some people are specked letting that the reason oil prices are lower today is because there is a speculation that president biden will try to do something, albeit just temporarily. 4:00 p.m., netflix is reporting the fourth-quarter earnings. year-to-date, shares down more than 14%. that correction has been steep, more than 20% is recent highs. the question is can they regain the subscriber growth they saw pre-pandemic. what is the new normal? how do they bring forth some of that growth during that had to make when everyone was stuck at home on their screen or is
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anybody still stuck at their screens? as a parent, i know i let my children have a lot more screen time now then they pre-pandemic. jonathan: so you get some rest. we appreciate it. tom keene already has people writing in. when are you want to talk about spurs? tom: i do not know much about this. all i can say and we joked this weekend the football versus the slow-motion nfl game, i have never seen anything like that last night. that was extraordinary. jonathan: what an end to that game. tom: explain extra time to the american audience. jonathan: stoppage time. if there are lots of injuries, the referee can add it onto the end of the game. tom: so they added 6 minutes and this guy scored two goals. jonathan: in a couple of minutes. tom: the highlight to me is like ice hockey. they are kicking from further out.
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it is blocked, stopped by the goalie, whatever. it was a more american game. it was very fiscal. i loved it. jonathan: i wait for lisa to walk away from the set. now she is back on the microphone. lisa: i was going to say, can we get extra time on "bloomberg surveillance?" tom: we can get extra time. steve auth for fed rate global investment. on energy and basic resources, the underperformance in big tech, is this the flavor of the year ahead? steve: it sounds like that. we are under way to value and grows like a lot of folks here. i was saying before the break, the underperformance of value versus growth over the last five years is 130%. that is actually more than the underperformance leading into the tech bubble at the end of 1999.
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there is just a long way to go here and the forces are all working in that direction. you have inflation picking up, the fed hiking, discount rates going up. the the valuation compression is really hurting the growth names right now. that is going to be the story of the year. the value stocks are always a show me story as we saw with j.p. morgan a couple days ago. it is not going to be a straight line up like it was when we had momentum driven by tech names. it is going to be a job for markets, market where people have to have a longer term view. we think the current correction could go a little longer. tom: the odds of january zeitgeist is inflation going to slow down q1, stop, rollover, whatever the language is. what is the what if of a presumed disinflation? what does that mean for equity markets? steve: that is not our view.
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it seems like the housing numbers are going to keep grinding higher. under equivalent rent is a big piece of the equation and we are seeing what is going on in labor. the idea that inflation is going to roll over quickly at this point is probably not going to work out. if it were to end the fed would probably call a height -- and the fed would call a halt to the rate hikes. that is not our view now. lisa: you say you do not see disinflation. you make an interesting point in your notes. what is the bigger risk to markets? is the fed overly hawkish based on excitations or overly dovish based on the catch of expectation that the market will start to price and? steve: they have to thread the needle. if they panic and go to 50, which people are now mumbling about, the markets will take a
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tumble because the growth stocks are not really pricing then quite yet -- pricing that in quite yet. they cannot do that. if they do anything at all, you will have a problem because people would think they are way behind the curve and 50th, . -- add 50 is coming -- and 50 is coming next time. we think they can achieve a soft landing 2023 or so. if they do anything other than thread the needle, i think we have more problems. jonathan: you are a student of market history. as you look back over the decades over your career, can you think of an historical parallel to what we are going through? steve: history never quite
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repeats itself. i come away with lessons. my lessons from the 1999, with a book i am working on, the lesson for me from 1999 was beware of the taxidriver. you do get that sense, i am sure we have always experienced, we are hearing more and more stories about folks that do this for part-time work, doing pretty well in the market and it has been pretty easy for folks to make money. i think that has led to a little bit of complacency around how you value stocks and doing things like looking at long-term cash flows and businesses. it has been tough, but i do worry a little bit about that and i think when you have the rolloff, that kind of enthusiasm , it does take a little bit of time. jonathan: thank you. steve auth.
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full disclosure, my experience with the london taxi drivers, they know more about foreign-exchange than i did when they use to pick me up and take me into london for work, they knew more than i had a clue. tom: what is interesting to me is the dialogue has changed because of etf's. i do not get as much stock chat as we used to because maybe everybody is focused on lisa's kids day trading. jonathan: are they day trading, these kids? lisa: they want to. they have begged for it. what are you trying to do to my children? jonathan: i'm just trying to make money. i think they are better than me. futures of 25. up 0.6%. good morning. this is bloomberg. ♪ ritika: --
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leann: president biden gave a blunt assessment of russia's intentions toward ukraine at a news conference. the president said he expects vladimir putin to move after assembling 100,000 troops on the ukrainian border. president biden said nato allies are divided about how to respond to the russian action against ukraine and falling short of invasion. president biden pushes voting rights legislation -- president biden's push for voting rights has collapsed. the president says democrats may have to break up in order to get any positives through congress. for the second month, banks in china have cut borrowing costs after the central bank cut policy loan rates and caused more easing to stabilize the economy. the one year loan rate was decreased by 10 basis points to 3.7%. the u.k. is just two months away
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from a brutal cost-of-living crisis. the squeeze is coming from all sides. inflation just hit a 30 year high, five-point 4%. the bank of england is raising interest rates and a caps on domestic energy costs is expected to rise by 50% in april as the government raises taxes. the impacts are growing. citigroup has asked its london staff to come back into the office three days a week, a day after the u.s. -- u.k. government said people no leader -- no longer need to work from home. that is protection that does remain in place. global news 24 hours a day on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in over 120 countries. this is bloomberg.
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>> if they actually do what they are capable of doing, it is going to be a disaster for russia if they invade ukraine and our allies and partners are ready to impose significant harm on russia and the russian economy. jonathan: the president of the united states with a two hour news conference yesterday. your equity market up 27, advancing 0.6%. yields lower by three basis points. feeling that rebound in the nasdaq 100. if you are going to go two hours, you are bound to slip and for many people, that is what the president did. "it is one thing if it is a
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minor incursion and we end up having to fight." the cleanup started immediately. it is important to bring some clarification from the administration. a spokesperson said the president clarified this. he was referring to the difference between military and nonmilitary cyber action by the russians. such actions will be met by a reciprocal response. that is the clarification a lot of people were looking for. tom: it will be interesting to see. there are eight ways to take this. mr. deese is coming up in the next hour. i was thunderstruck when i came out of the surveillance map and the president was still -- surveillance nap and the president was still speaking. jonathan: did you fall asleep? tom: i would have fallen asleep before. let's go on to our next guest
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who is in charge of protocol. jeffrey fitzpatrick. how unusual was that press conference last night? jeff: it was a marathon. we should not be terribly surprised that there were some quotes that got away from the president and that the administration have to -- had to in several statements clarified. it was pretty unusual. it made a lot of news, the news on ukraine, some areas where the president admitted defeat on his legislative agenda. it was a big one. tom: i look at the distance in eastern ukraine. i will guess that 999% of people in the western world do not know the distance between two cities in eastern ukraine. if you get out the map, what is the u.s. actually going to do with any level of incursion on
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the nuances in eastern ukraine? jack: i think that is what the administration tried to clarify is that if there is an actual invasion, ground troops, something along those lines, even into eastern ukraine, their stance is that there would be a broad array of sanctions, including as the president said, if anything having to do with dollar denominations that russian banks in his words would not be able to use, anything in dollar denominations. we do not have all the details on how widespread those sections would be in the significant sections -- sanctions would come on any invasion, even a minor invasion and the line of distinction he wanted to draw and that he meant to draw was a cyberattack does not count as that or the fact that the u.s. government understanding is that
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they have covid agents -- covert agents in ukraine. that is a different thing, but the sanctions will come into play even in an eastern ukraine invasion. lisa: given the fact that french president macron tried to get the european union to align more closely away from the u.s. and away from their leadership, how important is antony blinken's meeting today with olaf scholz? jack: important. following on the president's comments yesterday, he cast this as broadly something that would need a lot of international cooperation. they have not followed up with terribly specific details on how that would work because that would be getting into some theoretical. today's meeting as well as everything we have seen over the last week between secretary blinken and communicating directly with russian officials, obviously a critical time on
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everything the president talked about with russia and ukraine yesterday. lisa: you also mentioned that president biden admitted defeat on certain aspects of his agenda , also talking about breaking up the build back better built into three parts or several different parts, saying it is difficult to get it through. what is that going to look like? what are we massing out in terms of trying to get anything done on that front? jack: the area where he got realistic and it is fair to say admitted defeat was it does not look like the expanded child tax credit is going to make it into this bill they are working on. that had been considered more or less the centerpiece of the bill and the most expensive part of it. that would leave us with an upcoming bill that would be focused on the energy and environmental and climate spending and the president said there appears to be significant support for the pre-k education measures.
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they could follow up through the rules of the reconciliation process. they could do a second bill in the near future. i am not sure it would be possible to do three bills, but they could do a one-two punch and try to quickly follow up with -- they could try on the child tax credit but it does seem that child tax credit which was supposed to pass $1.5 trillion over a decade does not have enough support in the senate and that is an area where they can try again separately, but that is likely to get pulled out of their main bill that they think they can actually pass. jonathan: thank you. jack fitzpatrick of bloomberg government. around one hour from now we will hear from the director of the national economic council brian deese. we will talk about the triple b effort. in all my notes from the news conference, something i have not seen a lot of this morning, energy. the comments he made on crude were interesting.
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he said we will work on increasing oil supplies. and then he said something curious about europe. there are ways we can take the burden off of european countries and dependence on russian gas. -- independence on russian gas. what was meant by that? tom: to me it was across the atlantic. it is to move lng and other hydrocarbons across the atlantic. i have never heard of the validity of the pipelines in europe. the major issue for him to resurrect forward without getting into the politics of it is how do you un-piece build back better. how do you put it into digestible amounts to get votes through that i would predict would be the focus of the white house. jonathan: and ultimately what can they do about inflation? lisa: inflation in a time where
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you have geopolitical concerns that make it really important for this to be a global effort for the u.s. to work with europe on this. jonathan: fantastic to hear from the president yesterday. to hear from him so much and then to hear from him again this morning. we will hear from the administration one hour from now. from new york city with futures positive, this is bloomberg.
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jonathan: you saw the headline yesterday, down 10% on the nasdaq. futures bouncing back this morning. good morning to you all. the s&p up zero point 6%. the nasdaq 100 up 0.9%. and the russell too. switch out the board and get to the bond market. just the flavor of things for you from 150 through 180. a sneak peak of 190 and back lower. we are down three basis points to 183. on 30's, a little north of 2%. this is what i want to sit on for a moment. yesterday's performance of two sectors in two different regions. the s&p 500 energy complex, the stoxx 600 basic resources.
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i can get that up another time. the basic resources in europe are up more than 10% year-to-date. the energy players in the united states are up 16% year-to-date. the outperformance of those two sectors, europe basic resources, the united states energy versus information technology worldwide is unbelievable. we are not even four weeks into this. tom: it is going to depend on news flow and maybe it is just a glorious january and the optimists will say we will recalibrate. you wonder what the next step is and if that is true, what does energy look like at $100 a barrel. jonathan: what does all of this look like when china starts to loosen up? we have some big gains last year in oil and the energy players. we did all of that. without china participating in a
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massive way. they were not easing the same way the fed was. they are going the other direction now. tom: we will have to see. it is as simple as to see what china does and i will say, china will respond to what it sees in the market. julia coronado knows this. founder and president of macropolicy perspectives. let's do horse and cart right now. there is a belief out there that high inflation will ebb in q1 and q2 and good things will happen. some of that is because demand will slow down, this huge demand we see out there right now, that maybe it will be lesser real gdp. is it a slower demand brings lesser inflation or does a higher inflation right now actually slow down demand? julia: i think it is both. let's remember, the biggest driver of this train was a
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historic fiscal impulse and the biggest driver of the moderation and demand will be a saving fiscal impulse. you are not putting more cash into the economy. by definition, things will moderate. nobody expects a crash, but we are certainly not adding more gasoline in intended -- pun intended. now the fed will play a supporting role with removal of monetary support so there will be some demand moderation driven by policy. the intention was to juice up a fast recovery and we've got it. but we are also starting to see increased price sensitivity and that comes with increased cash report. consumers are paying high prices for a lot of things and i think the december retail sales report was an early indication that
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they are not just going to keep paying ever higher prices. they are going to start to spread those dollars around in a more judicious fashion. tom: just because of time because i think your insight is so important, if we think of the 7% inflation right now, in what level of turn around inflation does that affect policy attitude adjustment at the fed? is it 6.5%? is it 5.6%? at what point do you really begin to see fed policy adjusted to a slowdown and inflation? julia: you mean by being more patient? tom: being more patient, more data dependent, more ex post. julia: they seem to have a plan. there seems to be a unified theme across fed speakers that we've got the first stages of policy russell -- policy support removal in place. they will lift off in march, probably two or three rate hikes
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are already on the docket, plus the removal of support from the balance sheet. they will put a quantitative tightening plan in place. we will get some clues from chair powell next week whether that is a may announcement, july announcement. but it is clear it is part of the normalization plan. they believe that by the middle of the year they will have a better handle on these inflation dynamics. are they heading toward 5%? are we heading toward 3%? are we heading toward 2%? all of that is mattering -- all of that will matter for the next phase of policy. whether they can go at a measured pace, whether that means every other meeting, which is what we saw last cycle, or something faster. one of the things to keep in mind, there is no indication that the neutral rate is that
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much higher than it was before. they do not have very far to go if they are normalizing policy so it can be done relatively quickly if that needs to happen. lisa: that is actually an issue of high debate with some people saying that perhaps the market is inaccurately pricing that terminate rate and the fed is not conceding. the market does not have the ability to be patient by the fed to see this data and they will be parsing each incoming client -- each incoming point. how important are the wages in that slew of data we continue to get? julia: most of the inflation does not come from wages and we still do not know what the shape of the phillips curve looks like. we have had tight labor markets with solid wages before and it did not generate a lot of inflation. that is an open question. we will learn about that. we will learn about whether this inflation, like some of these
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other, sort of a burst of wage resetting upon reopening and then it settles into a more moderate pace, or whether we are in more of-price dynamics, in which -- more of a wage-price dynamic. the markets are not asleep on this. the fed has been very clear that one way or another they are going to bring inflation down. whether that is because it naturally moderates on a fading fiscal impulse and improving supply chain functions or whether they actually need to be a bigger part of the story. one way or another, it is going to come down. that is really the question is whether it is a more organic dynamic or whether it requires a strenuous policy response from the fed. lisa: how political is this decision after president biden's
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discussion after we see the dispersion in wage gains start to move toward the upper end? i think about the optics of the bank earnings. the 15% compensation increase at least according to a financial times calculation. how much this actually forces the fed to seem like they are trying to clamp down a little bit sooner? julia: i don't think the fed feels that kind of pressure. we have a lot of really intense discussions and markets these days. but when you hear chair powell, he sounds pretty calm. thank goodness. i think that the politics of it are quite the reverse of what we were feeling before. president biden yesterday basically opened the door to let the fed, basically blessed the fed doing what they need to do, calibrating how they need to calibrate, and leaving the judgment call up to them and not hammering or badgering them from his bully pulpit. that is a big change. i think that removes pressure
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from powell and the fomc to do what they think is best. one way or another, that is always how they have operated, but there is less political pressure on them from this administration and they are leaving the judgment up to the fed and the fed is going to make the best judgment they can. jonathan: thank you. julia coronado of macropolicy perspectives. i think that emphasizes how much we do not know about the federal reserve and how far they can take this. lisa: honestly this idea that they are going to bring down inflation one way or another and either they are going to do it in a controlled manner emily get a soft landing or we don't and then we get a crash and burn is the big question. it's our questioning that. they are wondering whether the base that we go back to with the inflation rate is what we have so -- is higher than what we have seen in the recent past. what does that mean for the terminal rate? there are so many questions and disagreements among participants is why it is such an interesting time.
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jonathan: the administration has a problem. a recent cbs poll, 65% say the administration is not focused enough on inflation. at the same time, they are not completely in control with what happens with the inflation rate. tom: i think the delusion that any executive branch of any nation is in control of inflation is just flat out wrong. they are just big instruments like the fiscal stimulus we had in short of pulling away the fiscal stimulus and moving away -- moving america into recession, what do you do? what all central banks do. every central bank. timberlake, bernanke, everyone in history as they wait for time for things to happen and for things to recalibrate and adjust. that is what we will see in 2022. does it matter that i am in the steve engle or camp? no. we will wait for the data. jonathan: that is exactly where
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i was going to go. for people were not familiar with the account at standard chartered, he thinks we get the inflation to at the end of this quarter. they only need two interest rate hikes. what you are saying is the calendar is on their side. do you believe that? tom: the calendar is the number one rep in. project syndicate has a great serious -- series out on inflation and the number one, ground whether it is ale area and or englander, they all agreed the excesses -- the x axis is the's number one tool. i will catch up with them and about -- he never comes out with me. jonathan: futures up 24. from new york, this is bloomberg.
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leeann: the u.s. supreme court has clear the way for some of donald trump's white house cases dealing with january 6 two be turned over to a congressional committee. they rejected the former president's bid to block some of these on the grounds of executive privilege. it will include business and call logs, emails, and notes. president biden says it is the federal reserve's dropped to bring in a fastest pace of inflation in decades. at a news conference, the president said he supports the fed's plans to scale back monetary stimulus. a recent poll found that most voters do not think the president is focused enough on inflation. an antitrust bill in the u.s. senate has been expanded to include china's two biggest social media companies, tiktok and we chat. it gave an advantage to foreign
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foes. a senate committee takes up the letter today. china is ramping up testing for the coronavirus after linking at least two omicron cases international packages. residents who received overseas mail or older to be tested and beijing residents were told to minimize packages from high-risk countries. global news 24 hours a day on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in over 120 countries. i am leigh-ann gerrans. this is bloomberg. ♪
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>> let's talk about how insurance companies support
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individuals who are unable to access insurance. how do we support increased infrastructure when it comes to primary health care and how do we inform medical literacy? how do we improve health literacy across the country. jonathan: some of the concerns from the associate professor of emergency medicine at johns hopkins. i'm jonathan ferro. you choose up 20, advancing zero point -- futures up 20. looking forward to catching up with brian deese, director of the national economic council. tom: it will be a very import conversation on build back better, his wheelhouse. right now, the warehouse of christian buyer of johns hopkins , he travels to south africa in the coming days to give important perspectives. dr. beyrer, thank you for
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joining us. i want to speak to you about the epidemiologist boris johnson. basically, he said yesterday we will trust the judgment of the british people. your comments please on what is clearly a political expediency in the united kingdom to move on from omicron. dr. beyrer: they are one of the countries seeing a decline in new infections, but not down to a baseline that would suggest it is time to lift restrictions. that is the political calculus. i do not have to tell you he is in political trouble because of having violated and his staff having violated earlier restrictions. this is one of those very clear examples where a politician is making choices that might
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undermine the public health response. that is reckless. tom: that is the word i was looking for. i knew you were going to go there with great respect for your international work. it is reckless. we risk reckless in the united states? dr. beyrer: we already are at risk because as i have said before, we do not have high enough rates of immunizations. we are still not at two thirds of vaccination coverage and i think the split decision by the supreme court where we had support for vaccinations for people who were in contact with medicare and medicaid recipients, that is a win, but it is a small number of people who already were highly vaccinated. the loss on the jobs mandate and the workplace safety for employers over 100 employees is a real loss because it will prolong the pain. that is still our biggest vulnerability. the data are showing again where
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you have high rates of vaccination and high rates of boosting, boosting really matters with omicron, you see much less hospitalization and much less loss of life. lisa: just to put a bow on the comment you made, do you think it is reckless to call the end of the pandemic phase and the start of the intimate phase of covid in the next couple of weeks? do you think that would be a reckless moment faced -- based on the vaccination rates? dr. beyrer: i do because when you look at the numbers of new infections, over 700,000 per day, 2000 deaths per day, the healthcare system is stretched. it remains stretched and one really telling figure, we just learned this week that one in five people who were in the healthcare sector in the united states have left that sector in these two years. that means we are really stretched. it is absolutely reckless to say
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ok, we will get through this way and then we will be done. we do not know that. we did not predict omicron. we did not predict delta and this virus has shown an extraordinary ability to mutate around our best efforts. lisa: let's talk about the immunization you get omicron from getting -- you get from getting omicron. people are saying we are moving from a baseline immunity regardless of vaccination. how effective is that at preventing other strains? how much of a boost to collective immunity do you see that as? dr. beyrer: this is what omicron has taught us. it is able to spread at the rate it is spreading because previous infection and previous immunization without boosting, it turns out you get a lot of breakthrough infections with this variant. that is why it is spreading so quickly. it is highly infectious, but it also evades immunity. the likelihood is that is what
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the next variants are likely to look like because they will now need to be able to spread in an environment where so many more people have either been vaccinated or have omicron or delta. we will have to see. the jury is out on that. i do think that one of the things that is really encouraging is that south africa is a good example, so is the u.k., places where there was a lot of omicron do see these rapid declines. we are seeing that in new york, new jersey, connecticut, some of the earlier places that were hit with omicron are showing one third decline in new infections. that is going in the right direction. we are a big heterogeneous country. we have lots of areas with low vaccine coverage and we are still seeing an enormous number of cases and way too many hospitalizations. jonathan: given the trajectory, i wonder whether we are getting closer toward a situation which is the ultimate objective when
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it comes down to personal responsibility, not collective action to protect the healthcare system. do you think we are getting closer to that? dr. beyrer: i would say it is a mixed bag. there are too many places where people are not taking responsibility and vaccine coverage remains a problem. i was just speaking yesterday with a public health official in mississippi talking about their very low vaccination rates and their ongoing surge. this is still our challenge and unfortunately as you all know, it is a politicized challenge and it is a real divide in this country. jonathan: as always, thank you. dr. beyrer of the johns hopkins bloomberg school of public health. i think many people picked up on the headline from starbucks no longer requiring the vaccination mandate that they only put out a number of weeks ago following the supreme court ruling. tom: everybody has their story
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on this so my story is no different than everybody else's. i head is spinning on the non-science of all of this. i look forward every day within the grind of my four hour day, i look forward every day to where we talk to medical professionals who actually know what they are talking about. it has reached a new level of idiocy. jonathan: we have to do something about that. regardless of the administration , i wonder if the ultimate institution here, the cdc, that is where we need to do some work. if there is a politician involved, it will always be politicized. we know that. but can we do something about the health authorities? tom: the history of the health authorities is much like america where we divide everything up not as a one voice as may be more in the united kingdom. all would suggest there has been
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a little bit of a messaging challenge from the scientists. jonathan: it has been confusing at many times. tom keene, lisa abramowicz man jonathan ferro. in the next hour, we will hear from brian deese i'm about -- in about 20 minutes time. this is bloomberg.
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>> so from that standpoint, there's a big expansion in capacity. infrastructure, we all sort of seen how far we can stretch the envelope.
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♪ >> they break something when they raise rates too much. >> it will start to rise this year. >> the market is only pricing in a few rate hikes in 2023. >> they have more difficulty hiking rates more than the market believes. >> this is "bloomberg surveillance" with tom keene, jonathan ferro, and lisa abramowicz. jonathan: this hour, we hear from the white house, for our audience worldwide, good morning. this is "bloomberg surveillance" live on tv and radio. alongside tom keene and lisa abramowicz, i'm jonathan ferro. your equity market bouncing back. tom: the white house, 15 minutes away. the gentleman talking about build back better. i believe inflation front and center and that is the study here as we go to the fed

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