tv Bloomberg Surveillance Bloomberg May 21, 2021 8:00am-9:00am EDT
♪ >> all this money sloshing around with incredibly low interest rates, i think we risk and inflation surge. >> if the economy stays as strong as it is, you get inflation. >> economists and everyone, companies, are having a really difficult time keeping up with how fast fundamentals are improving. >> what we are seeing in the u.s. is a very rapid rebound in demand, and supply is taking a little bit of time to adjust. >> we see had a seven -- we see 80's amount of risk that inflation will -- we see a decent amount of risk that inflation will keep rising
higher. >> this is "bloomberg surveillance" with tom keene, jonathan ferro, and lisa abramowicz. tom: good morning, everyone. it is a simulcast on this friday. set for the weekend with interesting markets as well. futures up 18. the vix, 23.7. all of the data in this odd week we have seen, the inflation debate just struggles forward. i thought it was a clumsy debate this week. jonathan: you will see it again at 9:45 eastern time when we get the pmi's. the headline number still in the 60's and is set to continue. there's a lot of demand in this economy. the demand-supply mismatch continues to be the story, with inflation at the center of that debate. tom: as david wilson just talked about with the s&p ratio and all of that, i really didn't understand what he was talking about, but what i would go to that i think is so important
opening up "surveillance" this morning, oxfords optimistic view, those are not in the market right now. jonathan: lisa brought up a good question, what happens with the savings rate. it is very elevated. a lot of money has been accumulated that could have been spent. the degree to which it will be spent i think is going to be important for what these numbers look like. tom: i agree. all of the cash that is out there. i get that we will consume it and all of that, but to me, the idea that ultraconservative money is somehow going to move into apple shares, i just can't get there. lisa: there's a question of the disposable income that people have versus what is wealth. there's an important point here that was one of the biggest takeaways of the week, which is pricing power. which companies have the ability to raise prices, pass along the
input costs to the consumers, and which don't and are seeing deeper negative real yields as they pay higher prices? to me that seems like an increasing distinction within markets. tom: what we are long in london is shovels. hail in may? would you explain the weather in london? jonathan: the weather has been absolutely abysmal in london as does the u.k. is reopening. more rain next week i think, as well. i've been exchanging a photo of the weather app on my iphone with my family back home, and it is not pretty. tom: mike bell coming up. we will talk about that a new moment. let's walk through the data but fear -- data before we get into a good conversation. off of the melt up two days ago and the good action yesterday, it continues this morning. futures up 18. jonathan: up 0.4% on the s&p. taking a small bite out of a weekly loss so far on the s&p.
in the bond market, yields not doing much. basically where they started the week. i will say also, the average since the start of april is basically where we are, too. real yields coming in this week. i know we are still negative about 80 basis points, but it is worth a look. tom: right now let's bring in mike bell in london with jp morgan asset management. give us the hailstorm, the uncertainty, if you will, of emerging markets. they have not been something we have focused on. is emerging markets is a broad sense an opportunity going forward? mike: i think it is the biggest opportunity over the next decade that we see. we think china, for example, will grow at about 4.5% annualized over the next decade, which means its economy is going
to be about 50% larger and 10 years' time than it is today. you're talking about a $7 trillion increase in annual consumption by 2030, which is larger than the u.k. and german economies combined. then you got india, moving from a lower base. we think it will grow out nearly 7% over the next decade, which means the economy should roughly double and that period. obviously there's a lot of difficulty going on in india with covid at the moment, but i the end of the year, they will have vaccinated around 50% of the population, so we are bullish. tom: this is like a foreign conversation to us. we forgot to reset on asia, growth. jonathan: rebecca patterson of bridgewater mentioned that. the uncorrelated asset of the year for some people has been the chinese bond market. is that something you are looking at, too? michael: we think that is attractive.
there's a limit to how much people are willing to put into chinese bonds, but nevertheless, when you look around the world, it is one of the few bond markets that really offers an attractive field at the moment, so it is certainly something that can be used for our purposes. lisa: there's china, india, and then there's everyone else in the emerging markets. i wonder about some of these studies from the world bank and other organizations talking about the great divergence, the fact that the recessions have been brutal and are affecting the middle class way more in these nations than in the u.s. how do you distinguish between the haves and have-nots and the maybe have-nots for an even longer time post-pandemic? michael: our preference at the moment is for asia. if you are thinking about msci em, china, india, korea, and taiwan are about 70% of the index.
some of the other parts of the emerging world it is going to take longer to get the vaccine fully rolled out. tom: i was talking to brad from brisbane this morning, somebody he watches the show every day. to me it is a lot of micro stories. it can be on the vaccine and the series nature of it -- the serious nature of it come up with the world bank is going to do, with the imf is going to do, and on the complete other end of it, people say and we are going to deploy. jp morgan is going to deploy into hong kong. if you want to give us news on that, we are taking notes. but i look at hermes, reimagining at or whatever it means, all of these micro stores are popping up in japan. michael: businesses are going to take the long-term view, and the long-term story is that rising incomes in asia is going to be
the key source of growth over the next 10, 20 years. so i think that is why you are seeing lots of businesses pivoting toward those, and i don't think that is going away anytime soon. jonathan: what is the european trade fit into all of this? the price action has been positive in european equities all year. michael: europe is -- europe is benefiting in general. the dennis economy is somewhat lacking, but if you look at the daily cases of vaccinations in europe right now, it has caught up to the u.k.. so i think you will see a domestic pickup in the economy as well. whether they outperform something like the u.s., i have a preference for something like u.s. financials, but i still think european equities are very high. lisa: what about other large
caps within the united states? do you think most of the gains there have been had? michael: ultimately if you look at the s&p 500, for example, 12 months forward earnings in 18 months should be about 15% higher than where they are now. the question as to what extent do valuations come down to offset at. for the most extensive stocks, it is possible they offset that, but we have plenty of places in the u.s. where you can see returns 10% to 15% over the next 18 months without too much difficulty. as bond yields go higher, we think we will see 10-year gilts around 2%. that tends to favor things like the financials and may weigh on the valuations. so we've got a value bias within the u.s.. jonathan: mike bell, jp morgan asset management mobile market
strategist, over in london. dk, where does this brisbane stuff come from -- tk, where does this brisbane stuff come from? tom: you've got the low end, the high-end, the middle. i learned this years ago. there was a point where em was concrete stocks and telephone stocks. that was the whole strategy. some really brave people, including mark mobius, changed that view to go into micro stories that are there. it could have been something else in vietnam. jonathan: the msci index is now heavily weighted towards tech. have you ever been to brisbane? tom: no, i was supposed to go four times. you are in singapore and you go we want to go to sydney and meet some people, and then they go, it is just so far to get there and to get back to new york. jonathan: there's this fake beach, i think called street
speech or some thing like that. tom: the veronica's wanted me to come down there, but i just couldn't get there. jonathan: you would have a great time. lisa: i am trying to see around corners of this show. what is going on? [laughter] tom: it's friday, lisa. jonathan: what are you doing, trip planning? lisa: where haven't you lived, seriously? jonathan: i had a nice time in brisbane a few years back. just looking around at the aussie dollar, thinking about the future, looking around corners. jonathan: coming up, mike mayo, wells fargo head of u.s. large-cap research. from new york city this morning, your price action looks like this. can you play the music, guys? just play an early. the s&p up 0.4%. euro-dollar 1.2182. we rolled over here. tom: jon, this is important. mohammed in cambridge says the hail collides.
jonathan: i will catch up with mohamed and about 45 minutes. turn into "bloomberg: the open" at 9:00 eastern time. we talked to him last week. tom: did we. jonathan: yes, together. tom: it becomes abler. jonathan: this is -- a blur. jonathan: this is bloomberg. ritika: palestinians poured into the streets of the gaza strip today to celebrate a cease-fire with israel. the hamas militant group and is really forces announced a truth that ends 11 days of conflict. more than 200 were killed by israeli airstrikes and artillery fire on gaza. i doesn't died during hamas rocket attacks on israel. the u.s. is now calling for a global minimum corporate tax of at least 15%. that is less than the 21% it had
proposed for overseas earnings and u.s. businesses. some nations called that rate excessive area international negotiators are trying to come up with an agreement the summer. the european union is offering the tourist industry a chance to salvage itself. they have agreed on the introduction of certificates that would allow travelers to offer proof they have been vaccinated, recovered from the illness, or have a recent negative test. deere has lifted its profit forecast for the full year. surging prices have boost to consumer demand for new equipment. deere post is than expected quarterly earnings. one of the largest insurance companies in the u.s. paid $40 million in march 2 hackers after a ransomware attack. cna financial paid up about two weeks after a company trove of
data was stolen. that payment was bigger than previously described ransoms. cna says the company followed the law. global news 24 hours a day, on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i'm ritika gupta. this is bloomberg. ♪ i'm ritika gupta. this is bloomberg. ♪
i think that is the answer. there are plenty of neo-banks and fintech banks that will be successful, but i think the fight is going to be on just getting the technology in place, particularly for the larger banks. so i guess what i am telling you is the basic banking sector will live another day. jonathan: robert albertson, the piper sandler chief financial strategist. from new york city, good morning. alongside tom keene and lisa abramowicz, i'm jonathan ferro. counting you down to the opening bell one hour and 12 minutes away. on the s&p, positive 16 points. we advance about 0.4%. a lift here and a move in the euro. euro-dollar negative just a little more so in the last hour, down by 0.3%. tom: did lagarde do that? jonathan: i don't know. in the bond market, 1.62 50%. yields unchanged. crude positive by about 1.9%. we had about $1.20 to wti,
$63.11. tom: to get you recalibrated on global wall street and particularly american wall street, after saying 200,000 jobs will be jettisoned on wall street, mike mayo joins us from wells fargo ahead -- from wells fargo as head of u.s. large-cap bank research. this is all anybody is talking about, and you are the one to give perspective. can a duo run consumer banking? they are going to try that a jp morgan. is it feasible? mike: i am never a fan of dual heads. having said that, jp morgan cultivates a culture of collaboration, so whoever collaborates better is ironically the one who could ultimately win. we have two women who are in contention to take jamie dimon's job. having said that, you know when
jamie dimon retires? n+5. add five years to whenever you ask him the question. [laughter] but you do have two women and kill heston -- women in contention. tom: this is absolutely original stuff. to your research note, which stopped wall street a few days ago, how will the dominant jp morgan consumer franchise adapt and adjust to automation, to digital banking and the rest that you highlight? mike: it is a microcosm of the larger industry, and for you, tom, i am going to the greek philosopher plato, who said necessity is the mother of invention. banks have no choice but to get more efficient, to use automation, and to streamline, so whether it is jp morgan or
any other bank, even though they are opening up branches, hiring advisors and all sorts of people over the next 10 years, we expect headcounts to decline by 200,000 jobs, up to 200,000 jobs for the banking industry. that's because automation in the back office, digitization and the front office, and because banks have no choice as they compete against big tech, big retail, and a bunch of nonbanks that have lots of u.s. regulation. jonathan: how's that going to go down politically? mike: not always well, but it could be better than in the past because with natural attrition, banks can try to walk that fine line between becoming a lot more efficient and without destroying their political and regulatory reputations, and also their esg scores because everyone is watching. if you fire a lot of people, that hurts your esg scores. it is a different job to be a
bank ceo today. in the past it was about generating and sustaining long-term value. today it is about doing that and a lot more. you need to be more attuned to issues around climate and social issues and diversity. so it is a bigger challenge. jonathan: what does that mean for the fiscal presence? mike: a lot less branches. you are going to see a lot less branches and a lot less people per branch. they call it the what -- they call it diy, do-it-yourself, and also do it together services. bankers working with customers that show them how to adapt to using more digital tools. the pandemic turbocharged the tech revolution at banks. you can't force a change in customer behavior, but the pandemic did so, and that played into the banking industry's strategic playbook for the next five to 10 years. lisa: when you talk about
competition from a number of different sources, we should also talk about competition from the u.s. government. the federal reserve saying yesterday they are going to put out a report on the u.s. digital dollar debate this summer that could diss intermediate the big banks. how much are you paying attention to this? mike: you have to pay attention to this. there's threats to banks, and di s intermediation of banks goes back half-century. you saw that with traditional bank loans getting this intermediated -- getting disintermediated with the capital markets. so anything related to digital currencies or anything else, having said that, i think the banking industry's business model resiliency for the largest banks is underappreciated. a deposit at a large bank is different than a deposit at another bank. it is driven by a hybrid distribution system that is
physical and digital. it is driven by multi products, whether it is a checking account savings account, credit card and mortgage. but the depth of banks has been greatly exaggerated over the last few decades. lisa: just quickly, i am wondering what you think in terms of mergers and acquisitions. how consolidated could the industry get as you estimate a cut of 200,000 jobs? mike: there should be an acceleration in bank mergers. the small banks need to generate scale. that was mentioned as the number one reason in the last few years. bb&t and suntrust merged, now known as truist. more mergers will come. jonathan: a lot has been made of esg and diversity, and you touched on that yourself. why do you think that wasn't
part of the consideration for morgan stanley's shakeup? mike: ultimately, the ability of managers to generate the returns , help the firm as a whole, and represent the firm drives these decisions. so jamie dimon didn't select the two women cohead's of consumer who are likely, one of those are likely the next successor, because they are women. it is because they are the most capable. so i think they just fall where they will. jonathan: thank you. mike mayo, wells fargo u.s. head of large-cap bank research. from new york city this morning, good morning. alongside tom keene and lisa abramowicz, i'm jonathan ferro. in your equity market, shaping up as follows. for 170 on the s&p. we advance -- 4170 on the s&p. we advance 0.4%. some more data coming stateside. more still to come. we will be catching up with terry haines, pangea policy
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jonathan: 60 minutes from the opening in new york city. alongside tom keene and lisa abramowicz, i'm jonathan ferro. we advance .4% on the s&p. the bond market down to 1.62 on tens. the imf backing a $50 billion plan to help the world escape the covid crisis and narrow the gap and access to life-saving vaccines that is threatening the global economic recovery from the pandemic. that is the effort, calling for $50 billion spending plan to narrow that gap. the imf out with that story. tom: part of that is a work proposal, they have aligned up of developed nation with serious action about the percent vaccinated in the united kingdom and the u.s., call it 50%.
in africa they published 2% is the percent of vaccination. that is the lead quote. this is a proposal they have to line up america. jonathan: inhibition -- an ambitious effort to vaccinate at least 40% of the population and more by 2022. lisa: the imf has been talking about this great divergence, the idea of emerging markets has lagged behind in the middle class is shrinking. to quote the jeopardy -- to quote the deputy general of the united nations, this has become an inequality virus. can you get the developed world to help pay for some of these? it is unclear. jonathan: the imf calling for a $50 billion spending plan to protect the rest of the world against covid-19 and narrow the gap and access to life-saving vaccines. that headline just crossing.
tom: the headline just crossing and does fully to what we see in washington in the markets. help me on the data. i see a persistent lift inequities even though it is not that big a move. jonathan: up .4% on the s&p. later we will catch up with the imf managing director christina jory eva -- christina gore gave a -- tom: there is isolationism in america, it has always been back to the founders. the pre-world war ii era, all sorts of shade after world war ii. a unique trump isolationism, and now with israel and gaza, and even with this announcement from the imf for a cash call, a new isolationism in washington. what does that look like? >> good morning. what i think it looks like is
essentially a rebalancing of international responsibilities with domestic responsibilities. there has been a sense for about five or six years that predates trump that we have been spending too much time and effort thinking globalism will solve all of our problems and instead understanding it has exacerbated a lot. what i will shorthand as the flyover country problem. we ought to be spending more time with that. we are back to the old wrangell of how much time and effort we ought to be spending on domestic priorities as it spoke -- as opposed to worrying about the international. that complicates policymaking across the world. tom: do you ascribe to the tradition foreign policy does not matter when people waltz into the 2022 or 2024 booth, or does it matter this time around? terry: i think it matters to
them always. there are always issues that differentiate candidates. we see a lot of those happening right now. you've already hit on it with part of it with middle east policy. china policy is a very big and frankly bipartisan initiative at this point. anybody that wanted to change china policy would be looked at skeptically. eyeballs on russia, the same thing, just to name three off the top. it does matter to voters. jonathan: let's jump to june, the president is going to your. what you think the priorities are? terry: the priorities for them is they want to show off that america is back. they want to show cozy relationships across the board with the european union. two, they want to show how they
are moving the ball forward and they will have to get past this nord stream 2 problem and put it into a broader context to show how that decision to waive sanctions there is positive for other aspects of the european project. third they want to show a united front against russia but more importantly china. that is where they go. jonathan: they have a germany problem, don't they? not so much a european problem but a germany problem. terry: exactly. some in brussels say if hitler's understood all we had to do was conquer everyone economically, as germany has with the eu, we would not have had the second world war. the more important part is you have a new government, you have more instability in germany for the first time in a long time. a new government, a new way of looking at things. some people say a loss of confidence. those are variables the
administration will have to work with to resolve. lisa: one reason why i love reading your reports is you assign probabilities to the likelihood of certain legislative initiatives being passed. where are we in terms of the probability of a bipartisan infrastructure bill getting passed in the near term? terry: thank you. i have been on consensus -- i've been non-consensus about 60%, 65%, for some time on that. that is coming together in an $800 billion to $1 trillion range at the top. there is a desire to do something on a bipartisan basis. it amounts to a plus of about 100% compared to what we've been spending on infrastructure anyway. it is not insignificant, but it would take a while to roll out. the bigger question is whether or not it will be able to roll out faster.
it does not sound like that will happen. businesses will not see a difference to that. i also think it makes what the administration calls the family's package, what the rest of us call everything else, that much harder to get. democrats understand the last train will leave the station. they want everything they want. people tend to forget the affordable care act could have gotten passed on reconciliation but it took five months after the house had first passed it to finalize it. washington willful around with the family's package into the winter, and i would say at least into the winter. lisa: what is likelihood of that getting past? terry: i have that very much below 50% at this point. i would give you 30%. it is alive and kicking but i do not see the path forward. tom: we had the privilege of speaking to the republican from montana yesterday, steve daines.
it was a good conversation. i'm fascinated by how you translate the middleground of american politics is personified by jon tester and steve daines in montana. what is the future of the middle in america if montana is living it? terry: [laughter] those are two smart members. i've had the pleasure to spend a fair amount of time with senator tester over the years and he is a very capable senator. somebody that is really looking out for things. the way people present themselves these days, market themselves in politics is polarized. they would say necessarily so. there is a lot of people trying to figure out what the middleground is and work on it from there. where using some of those good people, people like rob portman and pat toomey. people like tester and danes are
still there. between him and people like tim scott, i think there are still an awful lot of people in the congress, particularly the senate, that are looking to try to figure out exactly how to deal with what we will call the problems of the middle, and improve things. i remain optimistic about that in the long-term. jonathan: terry haines, pangea policy founder with latest ndc and the divide in this country, politically and the lonely center ground you just touched on. tom: is a lonely and retiring center ground as you hear about ohio and pennsylvania leadership deciding to exit. we always get that. you wonder what the retirement path will be in the opportunities from retirement as we get to 2022 and particularly on the 2024. in the markets right now i am looking at a 10 year yield, the
yield is crushed. jonathan: down one basis point. is that how boring the price action has been relatively speaking? lisa: yes. tom: in a tight range we come down to a higher price and lower yield. 1.6592 -- jonathan: 1.6165 on the 10 year. tom: help me. jonathan: i am helping you. on the open, mohamed el-erian, and then with him bob michele of jp morgan asset management on the week that was at the year ahead in this bond market. real yields coming back a little bit and both of these guys making the point that may be need to taper sooner rather than later. that debate gearing up a little bit more. tom: very good bond talk. lisa: this is a good question. can they taper, and what does tapering mean if they start expanding their balance sheet?
i was looking at deutsche bank jim reads note yesterday. he says if the balance sheet stays at a post great financial crisis level it will be at -- jonathan: remember 10 years ago, tapering is not tightening? lisa: my point being they might tape in -- they might tighten or taper for two months. how much can they move? how is that gloom? tom: with london and the miserable weather, mohamed el-erian is living there. it is a gorgeous weekend in new york city. it is time for a tang mimosa. jonathan: someone wrote it is friday, can we get tk on a john deere tractor with a mimosa? i'm not sure who this person is. lisa: i think we should go there. jonathan: i will run. tom: as fast as you can.
lisa: british sarcasm at its best. jonathan: looking forward to next week with more of the same. we will talk. equities up 15 points on the s&p. heard on bloomberg radio and seen on bloomberg tv, this is bloomberg surveillance. ritika: with the first word news, i'm ritika gupta. president biden says the u.s. will help gaza with humanitarian aid in the wake of that 11 day conflict with israeli forces. the cease-fire brokered by egypt took effect early today. israeli warplanes and artillery pounded gaza while how mass militants fired rockets at israel. at least 232 palestinians were killed and 12 people were killed in israel. negotiations over president biden's $2.2 trillion infrastructure package are nearing a crucial stage.
a white house team resumes talks with senate republicans today. one republican tells the associated press they've increased their offer and are working in good faith. the white house has set a memorial day deadline to decide whether a deal with republicans as possible. tesla ceo elon musk may have set his sights on russia. in a virtual conference musk says russia is among the countries where the electric carmaker could build a factory. he also said there should be more dialogue between russia and the u.s.. in italy, unique credit has shopped invest -- unicredit has shopped investors by deciding to skip a payment on bonds. the bank reported a net loss last year. that is one of the conditions under which it can miss obligation on the bonds. apple put its star witness on the stand today in the antitrust trial with epic games. tim cook is scheduled to be the last person to testify in the
courtroom in oakland, california. he is expected to argue that apple's rules for its app store ensure seamless user experience. 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 ritika gupta. this is bloomberg. ♪
seen for a while that you're dealing with again as people are going to work. downtown is coming back to life. i think companies are starting to reevaluate. the thing we did hear his we went from a depression -- is we went from a depression bust to a wartime boom. tom: jim paulson very optimistic on the economy. right now lisa abramowicz and i welcome you to your most important conversation of the day. it is what we all do before the pandemic, in this pandemic, and out of the pandemic. there is flat out no one in the restaurant and food business who is committed optimism more than daniel bilotta -- daniel boulud. he joins us with 11,000 foot triumph. thank you for joining us on the success.
this is huge optimism. how urgent is it for you to fill every seat starting yesterday? daniel: thank you for having me in good morning. it is huge to open a new restaurant always for everyone, but it is huge in this time because we feel we are coming out of the pandemic and it is time to bring the city back together. i think for me it is not about how many seats can we fill, just bring back jobs, bring back hope come and have the opportunity to create something new and unique. finish on time, finish on budget throughout the year of the pandemic. we had slowdowns but we never stopped. that is something i'm very proud of to be associated with. the project kept going.
tom: when you came to new york, you cannot get into the fancy restaurants. no one wanted to talk to you. now you pick up the phone and you get my table instantly. what i want to know is will we change how we eat after this horrific pandemic? whether fancy or less fancy, do you sense it will change the way we approach food? daniel: i don't think so. i think people want to go back to indulge, people want to go back to be pampered, to discover new restaurants, to be able to enjoy food to the fullest. we are very conscious and we have to keep safety as a priority. we keep wearing masks. we try to not make so many dishes that can be shareable. we try to respect the timing, so
guests feel comfortable. people are anxious to go out. i see in my restaurant they are so much in demand. lisa: whenever you walk down the street in new york city you see all of the restaurants flooded with people to get back. you are not saying that in midtown. in midtown it is still a bit of a ghost town as offices try to bring workers back. what is the power lunch of the post-pandemic era look like? daniel: right now it looks like nothing because they're not that many restaurants open for power lunch. i see around grand central i see people coming back to the office and we have people coming out of work and coming to have a drink at the bar. that means they must have been working. i think the power lunch would
come back in september, would resume when all of the hotels are open, new york is back. the obvious is bring back people because they have to. lisa: when you talk about the cities that will be the culinary leaders going forward, what do hear from your fellow chefs in terms of which cities are the best ones to open a higher end restaurant? daniel: i think new york city is still the number one city. you can always be a big fish in a small pond, but in new york city, i think we have the capability for welcoming tourists and business entertainment and sports as no other city can. of course there is -- when it comes to fine dining, all dining, it is amazing.
people are craving to come back to new york city. i see the bus passing by because it is on the second floor, i see the double-decker bus full of people and i'm like, are those tourists back? they are telling us the hotels are reopening. it is a good sign. it is just a question for all of the office buildings to be able to bring back their staff and for the employment to resume so we can bring people back to work. tom: the romance of being at grand central station and looking out that window to the chrysler building, it speaks back to 1941, 1942 as well. boy have we change how we eat now. what is your biggest challenge in developing repeat customers? what is the food angle, the menu angle you need to do in 2021 to keep them coming in?
daniel: interestingly enough, vegetable is the rage. 24 years ago, i had already a vegetarian menu. i expanded more. the menu will be 50% seafood, 40% vegetable, and 10% selected high-quality meat. there is definitely a trend between a certain focus -- also vegetable within the space around new york. i think this will be our focus. in general, people are craving for good food, good wine, and healthy food. it is our responsibility. jonathan: a colossal -- tom: a colossal financial risk. really interesting.
congratulations on launching the restaurant. interesting to see in the coming months as new york city comes back. thank you so much. daniel boulud, the acclaimed restaurant tour. the courage, somebody opening one of the many empty restaurants you and i see on the upper west side and throughout all of the city, there is a certain courage to get it going. lisa: you are seeing that implemented in a variety of places. can i say chef boulud's children have it better than mine. they had smoothies for breakfast. tom: you think he has ever taken an ego out of the refrigerator. lisa: i actually asked him and he said no, but perhaps belgian frozen waffles. the key to success is vegetables, seafood. tom: tang mimosas.
jonathan: from new york city for our audience worldwide, good morning, good morning. equity futures up one third of 1% on the s&p 500. we begin with the big issue, wrapping up a volatile week. >> volatility. >> recent volatility. >> equity market volatility has remained elevated. >> more short-term. >> investors are dealing with the tri-factor. >> and upcoming pecan earnings growth, higher-than-expected inflation. >> a lot is out there. a lot of moving pieces. >> some consolidation in certain aspects. >> the same with movement in commodities. >>