'Bloomberg Real Yield' (07/22/2022)
JONATHAN: "REAL YIELD." COMING UP, SHUSH AND FEARS -- RECESSION FEARS. THE FED IS READY TO GO ONCE AGAIN. OVER TO YOU, CHAIRMAN POWELL.
>> CHAIR POWELL. >> WITH THE FED MEETING NEXT WEEK. >> THE FED IS GOING TO STAY RIGHT ON TOP. >> POWELL HAS MADE THAT CLEAR. >> KIND OF LOCKED IN. >> A LOT OF CENTRAL BANKS ARE FRONTLOADING THE RATE HIKES.
>> 75 BASIS HIKE. >> YOU'RE NOT EXPECTING FORWARD GUIDANCE FROM THE FED. >> SOME OF THIS IS MESSAGING.
>> KEENLY AWARE. JONATHAN: JOINING US NOW. THE WEAKER DATA THAT WE SAW THIS MORNING ON PMI OUT OF EUROPE AND SPECIFICALLY IN THE UNITED STATES, IS THAT PART OF THE FED'S GRAND PLAN? >> I THINK THE FED LIKE ALL OF US HAVE BEEN SEEING THE DATA HAVE BEEN WEAKENING IN SEVERAL DIFFERENT PLACES, IN THE U.S. WHEN YOU LOOK AT SOME OF THE UNDERLYING DATA THE LABOR MARKET, THE PMI DATA, WHEN YOU LOOK AT THE INVESTMENT, WHEN YOU LOOK AT THE NEW ORDERS -- PARTICULARLY THE SERVICES, I DO THINK PARTICULAR NEGATIVE WITH THE REOPENING AFTER COVID AND THE ECONOMY I THINK SHIFT FROM PEOPLE'S BEHAVIORS.
THEY START TO TRAVEL MORE AND DOING MORE, I THINK WE WERE EXPECTING SERVICES TO BE A BIT MORE OF A SUPPORT. SO IT IS A NEGATIVE. THAT SAID, I DON'T THINK THAT WILL STOP THE FED NEXT WEEK. INFLATION REMAINS INCREDIBLY HIGH IN THE U.S. AFTER SEPTEMBER, I THINK IT WILL BE A LOT MORE DATA-DEPENDENT AND GRADUAL BUT CERTAINLY, STARTING TO FACTOR IN AS ALL THE CENTRAL BANKS THE FACT INFLATION IS INCREDIBLY HIGH. JONATHAN:
MIKE COLLINS, YOU AGREE? >> YEAH, WE ARE EFFECTIVELY IN A GLOBAL RECESSION NOW. THE QUESTION IS, HOW DEEP IS IT? IT IS GOING TO BE A MILD RECESSION. GROWTH IN THE U.S. COULD AVERAGE ZERO FOR THE NEXT YEAR AND A HALF. THAT IS BAKED IN. WHEN THE FED STARTS, YOU CAN CHECK THE BOX.
DEMAND COMING DOWN IS HAPPENING REALLY FAST. MAYBE IT IS SURPRISING THEM A LITTLE BIT. NOT SURPRISING ON THE SERVICES SIDE, TO MARILYN'S POINT, THINGS ARE TOO DAMN EXPENSIVE. PEOPLE ARE TRAVELING AND WHEN THEY COME BACK THEY'RE GOING TO SAY, MY GOD, THAT WAS EXPENSIVE AND WHAT A PAIN IT WAS TO TRAVEL. SERVICES, A BIT OF A FLASH IN
THE PAN. ULTIMATELY, WANT TO SEE WEAKNESS IN THE LABOR MARKET AND SEE INFLATION COME DOWN. THOSE ARE THE TWO THAT HAVEN'T HAPPENED BUT ARE IMMINENT. JONATHAN: WHERE BACK DOWN TO 276. IS THAT IT?
IS THAT THE HIGH BAKED IN? >> WE HAVE PROBABLY SEEN THE HIGH ON THE CYCLE. I HAVE BEEN TAKING THE UNDER ON THAT THAT SOMETHING WILL PROBABLY STOP THEM FROM GETTING TO THAT 3.5. THAT IS INCREASINGLY LOOKING LIKE THE CASE BUT, YEAH, I WE'VE SEEN THE PEAK. JONATHAN: THAT'S IT, DONE? >> I THINK IT IS PREMATURE TO SAY IT IS DONE. THE REALITY IS THE FED HAS BEEN FIXATED ON INFLATION AND THERE'S VERY LITTLE TO PROVIDE AIR COVER FOR THEM TO MEANINGFULLY CHANGE. THE MARKET IS TRYING TO TELL US
THAT WE ARE GETTING CLOSER TO THE END OF THE CYCLE THAN THE BEGINNING. BUT WE NEED VALIDATION, INFLATION VALIDATION. THERE'S A LITTLE GLIMMER OF HOPE AND THAT CORE HAS COME OFF THE HIGHS BUT AS WE KNOW, HEADLINES ARE PRETTY STRONG. FROM THAT PERSPECTIVE, THE FED
HAS TO LOOK THROUGH THE GROWTH DATA AT THIS POINT. UNLESS THEY WANT TO PIVOT YOUR POSITION. THEY HAVE GIVEN VIRTUALLY NO INDICATION THEY'RE WILLING TO DO THAT YET. FROM OUR PERSPECTIVE, INFLATION IS STILL THE MOST SIGNIFICANT CHALLENGE IN THE MARKET.
THE FED IS HELL-BENT, AS ARE OTHER CENTRAL BANKS, TO ADDRESS INFLATION. LITERALLY, THEY HAVE VERY LITTLE CHOICE BUT TO CONTINUE TIGHTENING TO WHAT IS EFFECTIVELY A SLOWING ECONOMY. JONATHAN: WHAT DO YOU MAKE OF THE EASING CONDITIONS A LAST COUPLE OF WEEKS? >> WE HAVE BEEN VIEWING IT AS A BEAR MARKET RALLY IN THE SENSE POSITIONING CLEARLY GOT VERY ONE-SIDED, VERY BEARISH. WE SAW THAT THROUGH VARIOUS SURVEYS AND ANECDOTAL COMMENTS, SO THERE'S A BIT OF A RISK COVERING. SOME OF THE ACUTE RISK IS GETTING SORT OF TAKEN OFF THE TABLE. GAS SUPPLIES IN EUROPE STARTING TO REIGNITE. BUT STILL VERY CONTESTED.
AS I MENTIONED, INVESTORS SEEM TO BE LOOKING TOWARD THE END OF THE RATE TIGHTENING CYCLE AT THIS POINT AND HOPING WE GET THERE. THAT IS SORT OF FOR THE MARKET IS MOVING TOWARDS. THERE NEEDS TO BE SOME VALIDATION. LIKE WE SAW IN MAY, WE MAY NOT
GET THE INFLATION VALIDATION WERE LOOKING FOR, WHICH COULD PUT US RIGHT BACK TO WHERE WE STARTED. JONATHAN: MARILYN, YOU WALKED IN THROUGH THE 75 BASIS POINT CALL, MOST ON BOARD WITH THAT UNLESS WE GET A NICE LITTLE "WALL STREET JOURNAL" ARTICLE ON MONDAY THAT SAYS OTHERWISE. WHAT DOES THAT MEAN FOR SEPTEMBER? >> I THINK WHAT WE ARE SEEING IN TERMS OF GET PRICING AND THE DATA IN THE FED SPEAK ITSELF, SEPTEMBER WE STILL EXPECT TO SEE A HIKE. PROBABLY AROUND 50 BASIS POINTS. THEN WE THINK FROM THEN, THE FED WILL BE MUCH, MUCH MORE DATA-DEPENDENT AND POTENTIALLY GRADUAL. I THINK THE NEXT FEW MONTHS WE LOOK AT THE DATA AND INDUSTRIAL PRODUCTION, WHEN WE LOOK AT DATA COMING THROUGH FROM THE LABOR MARKET, AS WE DO START TO SEE HOW THE GROWTH AND ECONOMIC CONTINUES TO EVOLVE AND THE FED AT THE MOMENT REALLY JUST FOCUSING ON INFLATION, NUMBER ONE MOLE -- GO RIGHT NOW. WE DO EXPECT A 50 BASIS POINT
HIKE AND BEYOND THAT, I THINK THE FED IS GOING TO BE MUCH NEWER IN TERMS OF THE IMPACTS OF THE TIGHTENING THAT WE WERE SINGING FROM THE FED AND ALSO THE ECONOMY OVERALL. JONATHAN: DO YOU AGREE WITH THAT? >> I TOTALLY AGREE WITH MARILYN AND GEORGE. YOU ARE SUPPOSED TO PROBABLY SELL INTO THESE RISK AS THAT RALLIES. WE HAVE BEEN DOING THAT GENERALLY THIS YEAR. LOOKING AT CREDIT SPREADS. HITTING HIGHER LOWS AND WIDER WIDES. THREE BIG STEP BACK FAR THIS YEAR AND GENERALLY BEEN SELLERS -- WE JUST HAD ONE.
BUT TO GEORGE'S POINT, PEOPLE ARE BEARISH AND NEGATIVELY POSITION. EASILY PROBABLY THE THREE. INTERESTING TO SEE IF THEY CAN DO THOSE LAST FEW HIKES AND GET IT UP TO THAT 3.5 WHERE THEY WANT IT. IT IS ALL CONTINGENT UPON THOSE LAST TWO MILESTONES, THE UNAPPOINTED RIGHT AND THE WAGES ASSOCIATED WITH THAT -- THE UNEMPLOYMENT RATE AND THE WAGES ASSOCIATED WITH THAT. YOU'RE NOT SEEING THIS WAY JUST CONTINUE TO GO UP AND YOU ARE SEEING WEEK THIS ON THE MARGIN IN THE LABOR MARKET. I THINK THE INFLATION STORY, IT
IS ALL ABOUT THAT. IF IT IS A ONE FACTOR WORLD, THAT FACTORIES INFLATION. IT CHANGES EVERYTHING. I DON'T KNOW WHAT IT IS GOING TO BE.
MY GUESS, IT WILL BE CUT IN HALF OVER THE NEXT SIX MUST TO 12 MONTHS. JONATHAN: A SIMPLER WAY OF ASKING, HOW MUCH WEAKNESS TO ANY TO SEE IN ORDER TO GET INFLATION DOWN? -- DO WE NEED TO SEE AN ORDER TO GET INFLATION DOWN? QUESTIONING THIS NEW CONSENSUS VIEW AROUND A MILD RECESSION. THE QUESTION FOR YOU, IS THAT ENOUGH TO BRING DOWN INFLATION? THIS IS GOING TO LOOK LIKE THE 1990'S COURSE CORRECTION FOLLOWED BY RENEWED HIKES? WHAT DO YOU MAKE OF THAT? >> I THINK I MILD RECESSION IS IN THE CARDS. THERE IS A MODEST MAYBE 20% PROBABILITY IT IS WORSE THAN THAT. WHAT WE'RE FOCUSED ON IS WHAT
COULD BE THOSE DOMINOES AROUND THE WORLD THAT START TO FALL TO FEED INTO THE U.S. HAVING A DEEPER RECESSION? I DON'T TAKE IT IS GOING TO BE A U.S.-ORIGINATED PROBLEM. WE DON'T HAVE THE LEVERAGE IN THE SYSTEM. WE ARE NOT OVERBUILT NECESSARILY. THAT IS WHY WE HAVE A PRETTY HIGH PROBABILITY THAT MILD BASE CASE.
THERE ARE A LOT OF DOMINOES IN THE WORLD STARTING TO COME DOWN IN EUROPE AND CHINA. THAT IS REALLY THE RISK I THINK. I THINK INFLATION IS GOING TO FALL ON ITS OWN WEIGHT. TO MARILYN'S POINT, SERVICES IS COMING DOWN BECAUSE PEOPLE CAN'T AFFORD IT. DEMAND COMES DOWN AND PRICES
COME DOWN OR THEY BOTH COME DOWN, I THINK THEY'RE PRETTY HIGHLY CORRELATED. JONATHAN: IS A MILD RECESSION SUFFICIENT TO BRING DOWN INFLATION OR IS HIGH INFLATION ENOUGH TO BRING DOWN HIGH INFLATION? >> I THINK I MILD RECESSION IS ENOUGH TO START TO TAKE THE STING OUT OF INFLATION, BUT DOESN'T COME DOWN AND I. HOW QUICKLY CAN INFLATION COME DOWN? BASIC UNIT -- ECONOMIC MODEL, SLOWER GROWTH SHOULD LEAD TO LOWER INFLATION. BUT IT WILL TAKE A LONG PERIOD OF TIME TO GET THERE. THE QUESTION IS, HOW LONG WILL THE FED TOLERATE THAT? IF WE ARE MOVING DOWN VERY SLOWLY POINTING IN THE RIGHT DIRECTION, THE FED WILLING TO BE BEHIND THE CURVE AT THIS POINT. THE CHANCES ARE THEY WOULD BE BUT WITH EACH INCREMENTAL HIKE, GIVE THE PROBABILITY OF A HARDER LANDING GOES UP.
THE OTHER CONSIDERATION, WE HAVE SEEN THREAT THE CYCLE, THE SYNCHRONIZATION. AS WE MENTIONED, THERE IS WEAKNESS SORT OF AROUND THE WORLD AND THAT IS STARTING TO MANIFEST ITSELF. THE QUESTION IS, COULD WE EXPERIENCE I MILD GLOBAL RECESSION? THAT IS A DISTINCT POSSIBILITY WHICH IS DIFFERENT THAN JUST A U.S. RECESSION, WHICH IS SORT OF ISOLATION AND WE HAVE OFFSETTING FACTORS. WE HAVE NOT DEALT WITH THE CHANCES OF A TRUE GLOBAL RECESSION IN VERY LONG PERIOD OF TIME. ALL CENTRAL BANKERS ARE FIGHTING MOST, I SHOULD SAY, FIGHTING INFLATION AT THE SAME TIME.
THEY ARE A LITTLE LATE TO THE GAME AND LEADING IN WITH INCREASING INTENSITY SO THE PROBABILITY THAT RECESSION IS GOING UP. IT HAS BECOME A VERY BOND-FRIENDLY WORLD FROM THAT PERSPECTIVE SO I FEEL GOOD ABOUT IT AS A BOND INVESTOR. BUT FROM A GROWTH PERSPECTIVE, IT IS DIFFICULT TO SEE ANY MEANINGFUL ACCELERATOR COMING IN TO SORT OF SAVE THE DAY, AND THAT PROBABILITY OF A GLOBAL RECESSION IS GOING UP. JONATHAN:
WE'RE GOING TO TALK ABOUT EUROPE IN A MOMENT. COMING UP, THE AUCTION BLOCK. AMERICA'S BIGGEST BANKS LEADING THE CHARGE THIS WEEK. THAT CONVERSATION AND A
BREAKDOWN OF THE ECB, NEXT. JONATHAN: THIS IS "BLOOMBERG REAL YIELD." INVESTMENT BOND SALES SOARING PAST THIS WEEK, ISSUING DEBT AND BOOSTING 45 BILLION. DIFFERENT IN HIGH YIELD. A SECOND CONSECUTIVE SESSION OFFERING IN EUROPE TAKING THE ITALIAN ZERO DAYS TO 27 THIS YEAR. ALREADY SURPASSING LAST YEAR'S TOTAL. WHAT IS DAY ON EUROPE. HIS EUROPE INVESTABLE? >> YOU'VE GOT TO BE REAL, REAL CAREFUL.
ANY GROWTH CLEARLY SLOWING, EARNINGS ESTIMATES ROLLING OVER. WE THINK GETTING VERY DEFENSIVE IN EUROPE, OWNING, EMBRACING AREAS LIKE UTILITIES, INFRASTRUCTURE COME HEALTH CARE, STAYING AWAY BECAUSE FROM AN INDEX CONSTRUCTION STANDPOINT, IF YOU OWN YOUR UPCOMING YOU OWN ECONOMICS SENSITIVITY FOR NOT WHAT YOU WANT TO OWN AND IT RECESSION. JONATHAN: HARD TO FIND PEOPLE THAT WANT TO OWN EUROPE RIGHT NOW. MARILYN, IS EUROPE INVESTABLE? >> IT IS BUT WITH A GREAT DEGREE OF CAUTION. I CERTAINLY AGREE WITH THE POINT MADE THE DATA COMING OUT OF EUROPE IS VERY WEAK. MUCH OF IT IS POINTING TO RECESSION. I THINK WHEN YOU LOOK AT WHAT
THE MARKET IS PRICING IN IN TERMS OF RATE HIKES FROM THE ECB, WHEN YOU LOOK AT NEGATIVE IMPACTS OF VERY HIGH ENERGY PRICES, THE ONGOING ISSUES WITH UKRAINE, I THINK COMMODITY PRICES, FOOD PRICES, PRODUCTION IS SLOWING DOWN, NEGATIVE DATA IN A TERMS OF PMI. SO I THINK OVERALL, THE DATA IS PRETTY WEAK. CERTAINLY FLASHING QUITE A FEW WARNINGS. THAT BEING SAID, WE HAVE SEEN A SIGNIFICANT IMPROVEMENT IN VALUATIONS IN THE EURO ZONE BUT I THINK IT REALLY PAYS AT THIS MOMENT TO BE VERY, VERY CAREFUL AND TO REALLY INVEST ON A MUCH FUNDAMENTAL BOTTOM UP PERSPECTIVE. JONATHAN: THERE ARE RED LIGHTS FLASHING WHEN IT COMES TO EUROPE, GEORGE. WE'S A LOT OF TIME TALKING
ABOUT FED HIKES. DO GET ANOTHER WINDOW? IF THOSE LIKE THE WINDOW IS GETTING SMALLER AND SMALLER AND SMALLER. >> IT IS SMALLER BUT STILL OPEN. I THINK THE REALITY IS, THERE STILL MEANINGFUL INFLATION PRESSURES. AS MARILYN MENTIONED, THE DATA LOOKS PRETTY WEAK AND ECONOMIC BACKDROP IS VERY MUCH CHALLENGED.
THE UPSIDE IS, AND SHE MENTIONED, VALUATIONS HAVE COME A LONG WAY AND CONTINUE TO SORT OF A RELATIVELY SOFT. FROM THAT PERSPECTIVE, LIKE DIFFERENT MARKETS AROUND THE WORLD, GET AN ECONOMIC SHOCK, A DOSE OF REALITY, AND THE MARKET QUICKLY WE PRICES. THAT IS CERTAINLY WHERE EUROPE SITS TODAY. WHEN WE LOOK AT CREDIT SPREAD AND THE DIFFERENCE BETWEEN EUROPE AND THE U.S., EUROPE IS STARTING TO REPRESENT SOME PRETTY GOOD VALUE. YOU DO NEED TO BE HIGHLY SELECTIVE.
AS WE HAVE SEEN THIS WEEK WITH THE ECB DROPPING FORWARD GUIDANCE, SURPRISE 50 BASIS POINT RATE HIKE, THERE IS A LOT LESS MANEUVERABILITY FROM THE ECB'S PERSPECTIVE. THE ECONOMIC CONSEQUENCES ARE VERY REAL AND VERY CHALLENGING. I WOULD SAY WITH A FULL SORT OF FULL HEARTED KIND OF, HEY, THIS IS REALLY KIND OF CHEAP TRADE, BUT THERE IS SELECTIVE OPPORTUNITIES BUT THEY ARE FEW AND FAR BETWEEN. JONATHAN: EUROPE I THINK RIGHT NOW IS TOTALLY UNFORCASTABLE. IT IS BECAUSE I DON'T UNDERSTAND THE ECB'S REACTION FUNCTION. EVEN IF YOU COME EXACTLY HOW THE DEAD COMES IN, I CAN'T TELL YOU HOW THE ECB WILL RESPOND.
DO YOU SHARE THAT VIEW? DO YOU HAVE A REACTION? IF YOU DO, HOW WOULD THEY RESPOND IF RUSSIAN GAS SHUT OFF? WITH A HIKE RATES OR CUT THEM? >> I THINK THE ECB HAS TIPPED THEIR HAND A LITTLE BIT TO BE A LITTLE MORE FOCUSED ON SUPPORTING THE COUNTRIES IN THE EURO ZONE FROM A PHYSICAL STANDPOINT AND A GROWTH AND -- FISCAL STANDPOINT AND GROWTH. IF YOU THINK WE HAVE STAGFLATION IN THE U.S., IN EUROPE, IT IS LIKE THREE TIMES THAT. THEY ARE REALLY HIT WITH THIS DOUBLE WHAMMY OF HIGH PRICES. I THINK ULTIMATELY, AND THE FED
FOLLOW SUIT, IF THE SUTRO BANKS BLINK WHEN YOU GO TO A DEEP -- CENTRAL BANKS LINK WHEN YOU GO INTO A DEEP RECESSION AND PEOPLE AND BUSINESSES AND EUROPE'S CASE COUNTRIES REALLY START FEELING PAIN ON THE GROUND, I THINK THAT IS WHEN CENTRAL BANKS ARE, ALL RIGHT, TO SUPPORT OUR PEOPLE. JONATHAN: DO THINK A COUNTRY WITHOUT A GOVERNMENT WOULD BE ELIGIBLE FOR THAT PROGRAM? >> OH, MY GOSH. I DON'T KNOW. JONATHAN: ISN'T THAT THE TRILLION DOLLAR QUESTION? DO YOU NEED A DECENT UNDERSTANDING OF THE BACKSTOP? DO YOU HAVE A DECENT UNDERSTANDING OF THAT? >> NOT REALLY, BUT I THINK THAT BACKSTOP WILL BE THERE.
WE HAVE SEEN TOO MANY POLITICAL CHANGES IN ITALY TO WORRY ABOUT THE ACTIONS ON THE GROUND TODAY. REMEMBER, SOVEREIGN ITALIAN ANALYST 25 YEARS AGO AND I WAS WORRIED ABOUT THEM THEN. THEY'RE GOING TO BE AROUND FOR ANOTHER 25 YEARS.
I THINK THE ECB IS GOING TO BE THERE TO SUPPORT. JONATHAN: IS THERE A BUYING OPPORTUNITY ON THE PERIPHERY? >> YEAH, THEY HAVE SNAPPED IN TODAY. I THINK THE WIDER LEVELS OF SPREAD IN ITALY, THREES OR FOURS ON GREECE. JONATHAN: GEORGE, WOULD YOU GO WITH THAT?
>> I AGREE WITH MIKE. THE ECB HAS EFFECTIVELY TIPPED ITS HAND. WHAT THE TERMINOLOGY IS QUITE VAGUE, IT MAKES IT DIFFICULT TO PREDICT WITH CERTAINTY WHAT EXACTLY THEY'RE GOING TO DO. THEY'RE GOING TO SUPPORT THE PERIPHERY. THAT WAS CLEAR SOME YEARS AGO
AND CLEAR TODAY. NOW THE PARAMETERS OR THE RANGE AT WHICH THEY INTERVENE IS NOT CLEAR. BUT IF THE FINANCIAL MARKETS IN PARTICULAR AND INDIVIDUAL COUNTRIES FUNDING ABILITY IS STRESSED, IT SEEMS CLEAR TO US THE ECB HAS PROVEN BEFORE AND WILL PROVE AGAIN THEY ARE WILLING TO SUPPORT THE COUNTRY'S ABILITY TO FUND THEMSELVES. WHEN WE GET OUT TO THESE, PARTICULARLY GOOD FINE OPPORTUNITY. JONATHAN: I HAVE TWO PEOPLE WHO SOUND INTERESTED IN BUYING THE PERIPHERY. ARE YOU?
>> SO AT THE MOMENT, WE DO HAVE SMALL ALLOCATIONS FOR THE PERIPHERY, IN PARTICULAR SPAIN. THE ANSWER TO THAT IS YES. BUT ON THE OTHERS OF THAT, WE ARE ALSO SHORT DURATION GERMANY. OVERALL, YES, WE DO LIKE THE PERIPHERY. VERY MUCH ON A FUNDAMENTAL BASIS .
I THINK YOUR POINT ABOUT DCB AND WHAT IT IS PREPARED TO DO, I THINK IT IS VERY CLEAR YESTERDAY THAT THEY PUT IT FRONT AND CENTER, STILL BEING BACKSTOP EFFECTIVELY TOOLS IT WOULD USE. SORT OF UNVEILED AS YOU MENTIONED, STILL SOMEWHAT UNCLEAR BUT THE FACT SUGGEST IT IS GOING TO BE UNLIMITED SCALE AND ALSO PERMANENT, I THINK IS A POSITIVE SIGN THEY'RE WILLING TO DO AS MUCH AS THEY POSSIBLY CAN TO REALLY SUPPORT ALL OF THE ECONOMIES WITHIN THE EURO ZONE. JONATHAN: STILL SOMEWHAT CLEAR AFTER THAT NEWS CONFERENCE. GERMANY DOWN 26 BASIS POINTS AT THE FRONT AND.
COMING UP, BIG RATE DECISION AT A CHAIRMAN POWELL NEWS CONFERENCE. THIS IS "BLOOMBERG." JONATHAN: FINAL SPREAD OF THE WEEK AHEAD, COMING UP A BIG WEEK OF TECH EARNINGS ON DECK. PLUS, MORE ECONOMIC DATA INCLUDES U.S. HOME SALES. U.S.
GDP. THE MAIN EVENT ON WEDNESDAY, FED RATE DECISION AND CHAIRMAN POWELL NEWS CONFERENCE. YIELDS LOWER, STOCKS LOWER. THAT'S GET TO THE RAPIDFIRE ROUND. FIRST OF ALL TO THIS COME IS THIS THE FED'S LAST 75 BASIS POINT HIKE OF THIS CYCLE? YES OR NO? >> YES. >> MARILYN? >> YES.
>> GEORGE? >> NO. JONATHAN: HAVE WE SEEN THE HIGH OF THE YEAR ON THE 10 YEAR YIELD, YES OR NO, GEORGE? >> YES. JONATHAN: MARILYN? >> YES. JONATHAN: MICHAEL, I KNOW THE ANSWER BUT
TELL ME ANYWAY. . >> YES. . JONATHAN: HAVE WE SEEN THE Y TO THE YEAR? >> NO.
>> NO. JONATHAN: GEORGE? >> NOT YET. JONATHAN: TO THE THREE OF YOU, YOU GUYS ENJOY YOUR WEEKEND. FROM NEW YORK CITY, THAT DOES IT FOR US. WE WILL SEE SAME TIME, SAME PLACE NEXT WEEK.
2022-07-25 15:56
