tv Bloomberg Surveillance Bloomberg September 14, 2021 8:00am-9:00am EDT
>> i think the fed has already started to change their signaling. >> most of our policy tools are already exhausted. >> most of the market is not ready for coming up. > we had massive amount is ventilation -- we've had massive amounts of inflation. >> going forward, what tapering means be very important. right now, the market doesn't care. >> this is "bloomberg surveillance" with tom keene, jonathan ferro, and lisa abramowicz. tom: good morning, everyone. on radio, on television, there
is only one topic. it is not the markets. it is not bonds. it is not be met gala. it is inflation. we will get to that in 29 minutes. this time, a different report and higher inflation. i want to interrupt that, as nicholas is in houston. it is not a hurricane, not a tropical storm -- not a hurricane, now a tropical storm. jonathan: it could bring life-threatening floods across the deep south through the next couple of days. so if you are down there, stay safe. that's the message from all of us. tom: moving east, going right down i 10. we will have more reports on this through the morning. to inflation, we've got to get to it. 5% is not 2%. jonathan: 30 minutes away, and persists, and it persists in a way that i don't think many on the fomc anticipated. to what extent does it persist into the new year, and to what
extent does it change the message of the fomc? there's a believe they can reverse guidance -- they can divorced guidance around qe from guidance around -- lisa: i think it shows that the gains being made are on the lower end of the factor. how does this change the dynamic going forward? on the inflation point and the storm point, the storm that we saw, hurricane ida, brought a lot of oil off-line. this has actually led to an unexpected dearth of oil, which has led oil to rise higher faster than expected. at the same time, people looking at the income brackets in terms of what the cpi elements are, how is this broadening out from idiosyncratic into a broader swath of prices rising? tom: let's do this in 30 seconds , your personal inflation statistic. mine is a one-bedroom apartment in new york. i've been stunned at how one-bedroom apartments have lifted in new york. jonathan: if you have a doorman,
rents are flying. that seems to be what the data is suggesting. tom: what is your inflation number? jonathan: minus food and energy, the stuff they want you to strip out because it is the stuff that people feel. expectations are changing. that is real. that is the second logical change come i real change that could impact the thinking of the federal reserve as well. if it persists. it's just started. tom: lisa, what is years? lisa: eating at a restaurant, but also the fact that labor is costing a lot more, and the lack of labor available to the restaurants. they are all understaffed, and the prices have gone way up. tom: tk complained about the service has well. lisa: i'm not complaining about the service. but every waiter who comes up and says on the only person here, waiting on all these tables, it happens all the time. tom: anecdotally, we are leaving tables and sitting more at ours just because you can get better service. jonathan: i'm not sure that is right. i'm not sure that is a post-pandemic change. tom: let's do the data check.
futures, negative four. dow futures, -36. the vix still above 19. jonathan: nasdaq futures negative a little more than 0.1%. yields higher by a basis point or two. in your hasn't done much since fed chair jay powell spoke at that virtual conference in jackson hole, wyoming. going into inflation, 26 minutes away. tom: we are looking at the dollar flat. i thought that was very interesting, matt hornbach on a stronger dollar. on the equity market, christopher grisanti joins us with mai capital. i know you are going to be hanging on every word at 1:00 p.m. on apple. can you own apple here? you have been a long-term affiliate of apple. can you go along apple right now? christopher: sure, i think if you are a long-term investor, there's hardly a better run company, hardly a company with better market position.
having said that, we prefer some of the other faang stocks, mostly because it is a combination of valuation plus they have almost outdone themselves. the iphone is so good that we are not expecting much from today's launch. i think a few incremental changes, better camera. so i'm a little afraid that this lofty valuation of 30 times is going to disappoint. jonathan: can we get to the story over at amazon? is that a stock you hold? chris: it is. jonathan: can you tell me why, in a world where they might have to pay a lot more for labor? this is a big employer in america now. chris: sure. there are so many ways to win. clearly, this is old news, but just went to aws, amazon web services. they created a multibillion dollar company out of nothing, that we estimate now is worth about 400 lien dollars. so there's that. there's prime. there's the international growth. so sure, just like every other corporation in america, they are
going to have to pay more for labor. that doesn't mess up our investment thesis. maybe it cuts the margin a percent or two, but long-term, i am pleased to be a holder of amazon. lisa: you have been an unapologetic bull. when you talk about making money, why do you like going? why do you like -- like boeing? why do you like outliers? chris: i'm a contrarian. buying stocks today is like going to the produce department at 6:00 at night. everything is picked over. it is really hard to find something good. boeing is sasquatch, basically. if you look three to five years out, would hope it is a grim memory, when the middle class all of the world is for more airline seats, i think
boeing is one of the few attractive pix in the market today. tom: is it a cyclical? chris: it didn't used to be. if you do a regression analysis, and the last few years, it correlates very closely with the airlines read but for the five or six years before that, it does not. in other words, in good times, when we don't have a worldwide pandemic, boeing is not a cyclical. it is a world leading manufacturing company that has terrific margins and terrific returns on equity. so i think it is a chance to buy a great company that is being labeled today is a cyclical. lisa: when you talk about being a bull in this environment, it really does come down purely evaluations in addition to a fundamental story. but how comparable is a relative value story at a time when people think aunt yields are going to go up, at a time when frankly there is so much
economic uncertainty and such varying views on the path of inflation going forward? chris: i think it is somewhat ironic that people seem more scared now than they were nine months ago, even though the market nine months ago was selling at 27 times forward earnings, now at 21 times. i'm not making the argument that that is cheap, but i am making an argument that it is cheaper now than it was nine months ago because it is strong earnings growth. i think that trend over the next six to 12 months will continue. there's a lot of crosscurrents, inflation being the number one that i am afraid of, and the delta variant and the august jobs report. but those are things that create opportunity. jonathan: there's a faith that would grow into multiples, chris. earnings have grown really quickly. using there could be a strength to multiples in a world where the federal reserve might be forced to pull back a little earlier than anticipated? chris: in that world, yes, but i
don't think we are living in that world. the fed has again and again said for speed ahead. they don't care about 5% inflation rate now. their sole goal. is to get us out of that's their sole goal -- their sole goal is to get us out of the pandemic i don't doubt that you and i will be sitting here talking about wage inflation and other things, but is that the fed has the pedal to the metal, and inflation is down the list of worries. jonathan: chris, smart as always. good to catch up with you, sir. chris grisanti of mai capital strategists. tom: there's been a lot of gloom out there. i go back to the bank of america survey. it is just a survey, but it really captures the emotion that is out there as we grind through this three hours a day. jonathan: higher expectations
have diminished, and higher growth has diminished as well. let's be clear, it is fairly in-line with the consensus. lisa: people have been inspecting a slowdown. however, the slowdown has been faster than people expected. it doesn't seem to be compensated for fourth-quarter data. however, if they have lower inflation expectations going forward, that ends up being a positive for markets. anyway you play it can be skewed as a positive story. i will catch up with comerica on that survey atlantic -- with bank of america on that survey. looking forward to getting their views. in the equity market, teachers down 0.1%.
yields are higher, 1.3 394% on the 10 year in america. tom: i'm looking at the cleveland adjusted here. how are all of these going to scout -- going to sift out? jonathan: can we keep doing that exercise? i think some people are frustrated with that. that is not the world we live in. tom: nobody listening or watching believes that number. jonathan: exactly. can you keep cutting up the stuff you don't like to see? tom: now. jonathan: that's not -- no. jonathan: that's not what people experience. it is something to keep an eye on. such a polarizing debate get so divided in the world of a cocked -- the world of economics at the moment. good morning. balenciaga, i know you are a big balenciaga guy, tom. what are they charging for those shoes? tom: i don't know. it's a lot of money. jonathan: from new york, this is
bloomberg. leigh-ann: with the first word news, i'm rick agrippa. tropical storm nicholas came ashore on texas earlier today, now slowly moving -- i'm ritika gupta. tropical storm nicholas came ashore in texas earlier today, now slowly moving east. they are expecting floods across deep south the next few days. wall street executives and top chinese regulators will hold a virtual meeting on thursday on the agenda of beijing's crackdown of the private sector that has roiled the market. they will also discuss u.s.-china relations. in the u.k., a penalize recommended giving coronavirus booster shots will have the end over, and urges the shots begin this month. the critic government is trying to the immunity of its population and prevent a potential surge in cases this
winter. -- will higher workers for transportation and warehouse jobs in the u.s. amazon will also average pay of more than $18 an hour. boeing expects global jetline fails to bounce back from the pandemic like this decade. that would contribute to a $9 trillion market for aerospace and defense products and services. that is 1.9% larger than what owen forecast last year. still, the company warns that the recovery could come in fits and starts. 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.
shortly after announcements come out. typically it will be around the $1500, $1600 price point at the most. jonathan: from new york city this morning, good morning. alongside tom keene and lisa abramowicz, i'm jonathan ferro. here's your price action going into and inflation print in america 12 minutes away. futures are negative three, down not even 0.1 percent. yields higher by couple of places to 1.3445. -- 1.3445%. let's do photos on radio. tom: five years ago, 10 years ago, whatever it was. the iphone is going to fail. we had coverage. i think maybe the last, 10, 12
years. if you sell apple, you are usually miserable. will power, should i sell apple this morning? will: no, we continue to like apple this morning. we've got the graveyard of devices apple has even serrated over the years. the power of the apple ecosystem is as strong as ever, so we take the long deal on apple because we like the strong set up. jonathan: i remember eight years ago, used to lineup outside. the media made a big thing of it. this is what tom is getting at. what is a change now? is it useful? is it an instructive event? will: the regular cadence that they deliver and consumers have come to expect, we expect iphones and some of the wearables categories, folks do want to know what is on the horizon, but particularly on these so-called s years as
consumers have become accustomed to, the changes are more incremental. so the event becomes bigger in those every other year periods, where the format changes more dramatically. jonathan: when i buy the stock, what am i looking for? a goods provider or just a capital returns monster? will: a culmination, which is why we like it. but it is also an innovation engine. services is now approaching a $70 billion business. so you are buying a monster cash flow machine, a company that is going to start to approach $100 in annual free cash flow, and a company that has the ecosystem to still power additional technology innovation over time, like the potential autonomous vehicle. those are the types of things you play more over the long term. lisa: you mentioned services. this has been an emphasis for apple. how much did the epic ruling have to do with the payment for specific apps and whether apple
can really have to take a bite of it? how much does that crimp revenue going forward from services? will: it is a good question. i think you have to kind of a cup and look at the numbers a little bit to peel back the onion. while services is growing pointy percent plus to become a big portion of the company -- growing 20% plus to become a big portion of the company, the app store is just one opponent of that services stream. from our analysis, you are looking at potentially low single-digit percent eps impact a few years down the road, but that is subject and contingent on potential appeals on the part of both apple and epic, and what the consumer behavior looks like yet there is some potential new impact, but we don't view it is overly meaningful at this point. lisa: how much of this is a precursor to many additional moves that are similar going
forward, especially as the biden administration takes a harder look at some of these companies? how much can apple rely on their hardware side of their business, and how much do services need to overtake in order to justify this company's valuation? will: services is a very important part of the story. it is the growing part of the story tomorrow at least had been prior to the pandemic. so it is a focus for the company and investors, and a growth rate , but it also generates higher profit margins, versus the hardware side of the business. it helps solidify the ecosystem. it is something that we and investors will continue to keep a close eye on. at this point, we still feel good about the brighter side there. jonathan: btig came out with a call yesterday to downgrade nike on supply constrained. the focus for nike, vietnam.
can you walk me through the constraints around the iphone? demand is really skyhigh. can they supply that demand? will: that is a great question. they are not going to be immune to some of the pressures in the marketplace on that front. of course, they have a ceo who came from the supply chain side, and he has done a good job navigating supply chain chalices -- supply chain challenges. our expectation is that they will largely navigate it. candidly, we don't know fully how deep those will run at this point, at the end of the day, the key for them is the demand indicators. we had a survey that we put out just in the last week or so as part of the preview, and our view is there's still a really
healthy upgrade opportunity, but it could take a little longer for supply to meet the demand. jonathan: smart as always. great to catch up. willpower, baird senior research analyst -- will power, baird senior research analyst. that supply conversation extends to pretty much everything right now. brand nike, brent apple, the labor market -- brand nike, brand apple, the labor market. tom: certainly the optimists feel like that will clear out at some point. i'm not so sure, particularly coming across the pacific, where most of the apple product is. not only apple, but everything else that is overpriced, what does it come down to? does it come down to 17% revenue growth, 12% revenue growth? or do we get back to single-digit? is that pricing right now?
jonathan: how about that revenue story? the margin story for morgan stanley and going into the year -- and others going into the year. lisa: this is a disagreement between the bulls and the bears about just how much margin compression there is going forward. the fact that forward expeditions for inflation are going up as quickly as they are for consumers definitely a concern. tom: let's bring up the umbrella shot again. for those of you on radio, it is orange umbrellas. this is me and matt miller a few years ago. what is so important about the emotion of this shot, i sold every share of apple that day. jonathan: that was a great trade, tom. eight years to go. [laughter] matt miller has that shot out on twitter. tom: he's buying bitcoin there. jonathan: michael mckee has arrived. that means your economic data is due, in about four minutes and 20 seconds.
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jonathan: from new york city for our audience worldwide on tv and radio, and inflation report in america just moments away. futures unchanged. -.1%. yields higher. there is your data. here is michael mckee. the transitory -- michael: the transitory argument as cpi in lower than anticipated. the cbi rising .3%. the year-over-year rate falls to 5.3%. the core up just .1%. that is compared with .3% last month and a forecast of .3%. the court year-over-year rate drops to 4% from 4.3%. off the top, it looks like we
may have a bit of the fit's story b -- the fed's story being ratified. food prices up. a lot of people have been looking at other food at home and it looks like that was up .6%. that falls off a little bit. the question is will restaurants be raising prices because they had to pay more to attract workers? it does not look like that feeds through during august. oil prices are rising significantly over the last couple of weeks. apparel prices come at this point up .4. here's a number you've not seen in a while. used cars down 1.5%. a lot of the things we were looking at not a problem. tom: we have to talk about the markets with equities.
tell me about equities. jonathan: a bit of fuel for transitory and up 11 on the s&p, up .25%. nasdaq futures advancing a bit more than .1%. yields are higher by a basis point or two. still higher by a basis point on tens. a bit of dollar weakness. euro-dollar firmer. euro stronger. tom: brent crude $74.15. michael mckee, one quick observation. michael: the number everyone is interested it is what is happening with housing. the overall number for shelter is up .2%. the equivalent rent is up .3%. the big increase in home prices is not feeding three to cpi. i should mention the tom keene index is still only .2%.
tom: news you need to know. michael mckee, it all better for him. i saw ben there. jonathan: everyone drinking beer last night at 1:00. carry-on. tom: sarah house with wells fargo will save us. sarah, this is an exceptional statement and report for jerome powell. sarah: i think this is another report that does give a lot of credence to that transitory debate. we still see quite a bit of pressure coming through the pipeline. if you look at what is happening in terms of supply chain, what is happening with labor and wages. what we are seeing is the most eye-popping rate of inflation we saw this spring is coming off and i think that gives the fed a little bit time to await progress with labor markets. tom: i look at the labor market
and it ties in. how does this inflation report tie-in to wage inflation? are they linked? sarah: where you are seeing some of the giveback in things like used car prices, that is somewhat -- even if we did see softening in the rate of food inflation, we are still seeing quite a bit of pressure in the restaurant sector, even in grocery stores. if you look at the run rate in terms of monthly print you are still seeing strong numbers. we are seeing some of the wage pressure begin to filter through and in many areas it is in the service side where it does take longer to show up with the inflation numbers. jonathan: what kind of number do you think would make the fed comfortable? sarah: i think it is more about the numbers you are seeing in inflation expectations.
we had a very hot consumer inflation expectations number coming from the new york fed, but if you look at the fed preferred measure that common inflation index is still well within a historic range. that is taking into account what is happening with the michigan numbers and you have seen inflation expectations pick up, they are still at levels that are consistent with the fed's target. i think that buys some time to figure out what you're seeing at the end of the year. jonathan: downside surprise time on the inflation print. team transitory getting a went. futures -- team transitory getting a win. yields not doing much off the back of this number. this comes down to one thing. retail sales print and that it is onto the fed. lisa: on the one hand it could be transitory, on the other hand this could be the economy is softening more than expecting at a time when we have a prolonged
pandemic. sarah, can you weigh in on what this means if the fed is not getting what they want and we do not see labor market movement like we did with the disappointing previous report. what did they do? did they keep printing money or delay have to change their guidance in an additional way? sarah: i think you just get taper, the taper gets pushed off further. this print suggests that because maybe the scale is more in favor of december than a november announcement they keep the current policy in place for longer. it is important to remember that while we did get it disappointing employment report in august, we are still adding jobs in still seeing the unemployment rate declined. we are seeing some movement in terms of labor force participation. cumulatively, you are seeing things move in the right direction.
you are getting closer to the fed's goals. that will have to keep policy in place longer. lisa: we look forward to that retail sales figure later in the week. what is the consumer able to do given the rolloff of some of the stimulus checks and the fact people are not necessarily getting back into a labor market still hobbled in part by covid? sarah: we will see a pretty weak number when it comes to retail sales. part of that has to do with the fact of what we are seeing in terms of autos. how much we saw sales plummet. if you look at the position of it consumers, we are seeing it weaken. we still of excess savings. given the run rate of inflation, even with today's number, it is whittling away. when you factor in the unemployment benefits rolling off, the buying power of consumers is weakening, so that
does suggest you are getting somewhat closer to the supply demand balance coming better aligned. it will take some time. tom: let me talk the unspeakable. what if this is a fed, i am looking at the wonderful fomc function on the bloomberg, what if this is a fed that is not september, not december, but has to stagger to the decision in january of next year? what is the signal if they have to wait? sarah: it suggests to some extent the virus is still very much in control. i do not think it is completely out of the realm of possibility that even if we are seeing delta cases level off we get another wave in the winter so this suggests this is not necessarily the immediate rebound a lot of folks were looking for earlier this spring. there still a lot to work through in terms of virus, in
terms of friction in the economy. that will take some time to work out. the fit might have to hold course for somewhat longer. jonathan: thank you. sarah house, wells fargo securities senior economist. it is a downside surprise. the monthly read of the had nine number -- the headline number, 0.3% from july. the headline read 5.3%. core cpi, core inflation 0.1%. the smallest read we have seen going back to february. tom: i will steal from chairman greenspan. it is a quiet sent report. our michael mckee will dive into it. we will have much more with how it frames up. to your point earlier, we got all of this fancy -- every
single viewer still gets hit over the head. jonathan: they are not looking at the direction of travel. they can feel the numbers themselves. equity futures up one third of 1% on the s&p 500. lisa, your take? is september 22 a little bit more comfortable for chairman powell? lisa: it seems like that is the case. to dive into some of the elements, if you look at hotels and motels, down more than 3%. airline fares down more than 9%. how much is there a distortion from the rising the delta variant? people pulling back from their travel plans. this to me is a key question as people look forward at other things still rising and then again with oil, the protection free to increase as well. tom: a little bit of news -- jonathan: a little bit of news out of goldman, another management rejig. dennis coleman named new cfo.
this is according to reuters. tom: it is a change in the guard. we saw a huge rejiggering at the bank of america the other day. each of these companies in this boom time for wall street are in strategic turmoil. i do not mean that is a negative thing, but they are under a lot of discussion on the next five to 10 years out. jonathan: confirming that at bloomberg as well. goldman names denis coleman as the new cfo. team transitory getting a win. we will continue the conversation with elyse ausenbaugh very shortly on bloomberg tv. this is "bloomberg surveillance." ritika: with the first word news, i'm ritika gupta. president biden is urging california to send a message to
the nation by keeping gavin newsom as its governor. newsom faces a recall election. polls show he should survive the vote. the president appeared with gavin newsom and repeatedly linked larry elder to former president trump. vladimir putin has gone into self-isolation. it was exposed to several people infected with the coronavirus. the spokesman said he tested negative for the virus. people are back at their desks in london's biggest financial district that in any time in the last 18 months. more than half of the employees in the city of london were in their offices on thursday. it emptied out in march of last year when the pandemic led to government lockdown. the maker of turbotax and quickbooks software intuit has agreed to by email marketing --
it will let intuit reach the services offered to customers trying to reach clients online. -- what could be one of the country's biggest debt restructuring. how much ever grand is set to use will depend on whether chinese authorities in state run banks take steps to set limits. 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. ♪
report. it was transitory. dow futures up 123. lisa abramowicz and tom keene. i wonder if mr. solomon at goldman sachs, the idea of the politics behind the move. it is just a cfo change at goldman sachs. lisa: goldman sachs named dennis coleman as the new financial officer as of yet -- as of next year. as you said really well, basically banks are rethinking the way they look in the years to come. the pandemic was a tipping point for a technological shift and trying to bring up some of the younger banks in a way it had not been in the past. tom: mr. coleman very much associated with united kingdom as well. also associated with us is barry ritholtz, bloomberg opinion columnist. thank you so much for joining us.
housing. we needed a dishwasher. the sump pump had been used in hurricane ida. i love homeownership. is it worth it? barry: you have to live somewhere and as someone who has lived in rentals and my own house, it is nice not to live in an off-white no change to any of the living circumstances. the old joke is no one watches a rented car. nobody improves a rented apartment. if you want an updated kitchen, if you want to paint your house a different color, ownership is how you manage to do that. a lot of the metrics that show real estate is a bad investment ignore the fact that as an owner occupier you have to live somewhere. michael: the home rent -- tom:
the home renovation, lisa abramowicz did a renovation that was a quarter of a million dollars. what is the nominal or real return of homeownership versus owning the s&p 500? barry: in real terms it is probably flat to negative. once you work in you have to pay taxes. there is a ton of maintenance and upkeep. net relative to inflation you are lucky if it a break even if not worse. but it keeps coming back to what you pay is a key issue in the thing to remember is if you're putting 10% down and you're not buying the property outright, there's a lot of leverage in that. those return characteristics are different than blackstone running around and buying up multifamily units and farmland and everything else. lisa: just to be clear. the quarter million dollar renovation counts for putting in a new divider for my silverware.
it is not the same scale. i will say that, just to set the scale straight. we started talking about banks, moving the real estate market, pivotal moment for urban areas at a time when the very is delaying those plans to get back to the office. how significant is that the longer some of these delays go on for property values in urban centers? barry: that is a complex question and i will give you a 30,000 foot view. 2019, when you look around places like san francisco and manhattan, there is a ton of new office space that has gone up to meet the pre-pandemic demand. suddenly the pandemic has taught us we have been inefficient and how we use our time, both going to the office to -- going to the office, commuting, etc.. it appears there is an excess of office space and a shortage of
affordable housing and reasonably priced housing. if you remember we just went through the 20 year anniversary of 9/11, post 9/11 all of manhattan converted to a very residential area. lots of office buildings converted. i would not be surprised to see something like that take place over the next couple of years in major urban centers to adjust that imbalance between supply and demand for too much office-based and too little residential space. lisa: are you going back to the office? i am wondering, given your read on the breath of wall street in terms of what they are doing, what is the zeitgeist right now on that front? barry: a handful of companies originally had september 15 as their target. it was pushed back to october 15. i've been trying to get into the city at least once a week, as have all of my colleagues in the
office. now there is a chicken and egg issue and that a lot of mass transit has been running on weekend schedules, not normal peak commute schedules. i think that returns back to its normal schedule where was scheduled to september 15. once i was at a conference yesterday. on the way home yesterday at 2:30, bumper-to-bumper traffic in a car. i think that is because people are not comfortable riding the trains where they are running too infrequently. once things get back to normal on the commuter rail and other forms of mass transit, you'll start to see me -- you'll start to see people move back into the office more regularly. tom: how was the salt conference? barry: it was interesting. i sat down with paul cohen and
alana -- tom: nobody cares. what did cohen say about the mets? barry: is excited about the team and he thinks they will be a contender sooner rather than later. it was an interesting discussion. what was fascinating about walking around the event was people stopping him to talk about the mets. tom: that is why they buy the team. barry: they want to talk about the baseball team. tom: when you buy the next it will be the same way -- when you buy the knicks it will be the same way. barry ritholtz. lisa, you look at the inflation data. equity markets and dollar react, bonds not. bonds might be looking more regularly at what the components are that led to the decrease. you are seeing increases in rent. it is perhaps we are seeing the
offset because those prices went down significantly. airfare is also a huge component. used cars did see a slight dip. new cars increased in price. i wonder how much this report does reflect the delta variant and how it bled out through people's consumers expectation. i found this a fascinating report and i'm not sure what it says. tom: on the data front we do have green on the screen. not over 35,000 on the dow. spx up 15 points, nasdaq with a lift as well. it is about even percentage moves. small caps having a better than good morning. the vix coming in under 19.
we advance one third of 1% on the s&p. the countdown to the open starts 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. team transitory gets a win. >> the keyword, transitory. >> the debate around transitory. >> every time we talk about inflation and transitory we will take an afternoon drink. >> we had a period when the market was buying into the transitory narrative. >> the risk is it is not as transitory as they think it is. >> inflation is rising and proving sticky. >>