>> the thrill of living well is in the pursuit, the pursuit of the rarest experiences, the pursuit of the finest products, the pursuit of quality in everything you do. and in all of these pursuits, you need the best intelligence to make the best decisions. >> we know that she sells for a lot, but what makes her important? >> it isn't easy. it is difficult work. >> welcome to "bloomberg pursuits," where you find information that helps you to follow your inspiration. utility meets luxury in three in this edition, new suvs. -- in this edition, utility meets luxury in three new suvs. master the offbeat etiquette of eating ramen.

>> it is totally cool to pick up the bowl and drink from it. >> and find out how one master craftsman turns wood and stone into state-of-the-art sound. >> this is a difficult time consuming, expensive process. >> but first, nikki eckstein has a guide to making the most of london. ♪ nikki: london is one of the most dynamic cities in the world. for all its iconic sites, it is also full of hidden treasures. and now with brexit looming, the city is on the verge of a total reinvention. i'm nikki eckstein, travel editor for "bloomberg pursuits," and i will show you how to make the most of london. ♪ nikki: out of london's 37 million visitors each year, a

whopping 9 million come here on business, making one of the biggest business travel markets in the world. and that is the air. -- and that means busy airports. dodge the crowds by flying into london city, a small under the radar hub in the middle of town. landing here means short immigration lines and zero traffic, shrinking your travel time by an hour or more. until recently, business travelers had a tough choice, booking a bland hotel in the boring financial district, or staying further away in the

heart of the action. not anymore. the city, london's financial hub, is suddenly cool, with two glamorous places to stay. the first is the net, a hotel and private members club designed by the ultracool soho house group. insiders say it costs more than $200 million to convert this -- cost more than $200 million to convert this 1920's bank. walk through the front doors and it hits you. 252 rooms, nine restaurants. this is the place to see and be seen, to impress and be impressed. ♪ nikki: but if you want to escape

the hustle, head to the rooftop. this view of st. paul's cathedral is instagram gold for london's work hard, play harder set, and is only accessible to hotel guests and private members. if the party, work, repeat lifestyle is a bit too much, the antidote is one mile away. the new four seasons 10 trinity is the epitome of an urban oasis. indulging here means afternoon tea in the 1920's rotunda, or an after work massage in the glimmering spa. even hanging out in your room feels like a treat. you can order your favorite type of pillow from an ipad or soak in a gorgeous gilded bathtub. londoners are punctual, so getting on their time zone is key. luckily for you great coffee shops are everywhere in london. these days they are more ubiquitous than a proper english

breakfast. workshop, which roasts its own beans, is my personal favorite. order their silver coffee. it is like a pour over with a built-in refill, and you can feel free to bring your laptop. head over to the east end for a work lunch. -- at lyle's. it is worth the short walk. no mushy peas here, these are fresh from the farm in a garden salad with fresh cheese. order it with a mutton broth, a clear delicate version of a heavy classic. here is a little psa. don't be afraid to order a glass of wine during the workday. abstaining is seen as an overly conservative move. ♪ nikki: with so much entertaining, you will want to squeeze in a workout. in london it's hard to find good boutique gyms that allow membership free drop-in's, but one rebel is one exception. everything from the meeting to -- music to the lighting to the mood will make you feel like a total rockstar.

♪ nikki: take that high to your most important meeting, the deal closing dinner. this russian inspired spot in soho is an ode to decadence. watching this juicy beef wellington get carved table side? it is the best kind of dinner theater. whenever you are ready to toast your success, there is a champagne button built into every booth. >> cheers. nikki: by now, you have earned a day off. this is redchurch street, in the heart of shoreditch. stop by modern society for indie jewelry and clothing, or monologue for great hardware and that home where's -- homewares and death because areas. -- desk accessories. go around the corner for giftable travel sets, all in custom patterns. when it comes to british food, i can't leave without trying the real national dish, curry. fabulous. at madame d's, the menu focuses on the himalayas. the talented indian chef is making excellent risks on these mimosas, and amazing lamb noodles spiced with powerful thai red chilies, dishes you would be hard-pressed to find anywhere else. it is all proof that in this fast-paced city, things are always in a state of evolution. >> from this great destination we shift our focus to the journey. up next, hannah elliott takes a drive in three of the best suvs money can buy. one of them sure to be right for you. this is "bloomberg pursuits." ♪

♪ >> ramen, the japanese staple, has gone global, with dedicated joints in cities around the world. so, it is a good time for a short course on the rules of roman. -- ramen. >> hi, this is my shop. we are going to talk about the best ways to eat a bowl of ramen. the most important thing is to eat ramen while it is hot. any good ramen shop will serve you it while it is smoking hot and you need to eat it right away because the noodles are

overcooking. it is a lot like pizza. if you are a real new yorker you know that you do not wait for the visa to cool down, you eat it while it is hot and you risk burning your mouth. ramen is absolutely the same. [slurping] >> you need to slurp. don't fight the noodles. it cools it down. take a little less than you think you want to eat. pull them out from the pile because otherwise you will never be able to slurp. easy on the toppings if you are a first timer. so when you order your first bowl of ramen ever, get it simple. taste it, see if you really like ramen, then you can jump on the toppings and specials of the day. don't forget to hydrate. i have been to ramen shops in tokyo where later my whole face is swollen with salt. it is the nature of the beast, so drink up. ramen comes with a terrible spoon, chinese in origin. in japan, it is great to be able to dip it into the bowl, but is totally ok to pick up the bowl and drink from it. remember there are no real rules at the end of the day.

you are letting your hair down. you want to have fun. get splashy, get noisy, get messy, but most importantly, enjoy yourself. >> choosing the best suv is a complex task. you have to consider size, power, and of course, value. hannah elliott weighs all of the elements in this review of three suvs. hannah: with suvs growing in popularity, it only made sense to get some on this show. so in this review, we are going to compare three of the best rated luxury suvs on the market. ♪ this isn't going to be easy. we've got our hands on an audi q5, a porsche cayenne gts, and a bmw x5. i decided to spend a day in the hamptons with each of them to get an in-depth look. this is the q5. it is audi's midsize suv and

starts at about $41,000, which is way more affordable than the other two cars we are looking at. this is kind of like the iphone of luxury suvs. it is designed well, but also affordable within the segment. this is a four-cylinder, all-wheel-drive, seat -- seven seat automatic with paddle shifters, 252 horsepower, and there is no lag. immediate power, immediate response. the minute you step on the gas, you are there. ♪ q5 has by far the most futuristic interior of the three cars. it is minimal. it is clean. the sunroof spans the entire width of the ceiling. it is really cool. there is plenty of room for five adults, lots of headroom. but this is the smallest car of the ones we are testing. the trunk is 29 cubic feet, in the middle of our range. a family on a trip might have trouble fitting everything in. there are other cars that are more powerful that look more distinct, but it is also really affordable, and audi is the sweet spot. so how did it add up? the immediate response made me really feel in control. the horsepower was a little weaker at 252, and the 22 miles

per gallon means this is in the middle of the road. looks-wise, it was a bit conservative. it is the smallest of the three, but with a sleek interior. and the pricing is the best at $41,000. now this is the bmw x5 hybrid. that means it gets 56 miles per gallon combined between the electric motor and conventional engine. this car starts at $62,000, right in the middle of our group. the electric motor and the engine switch off depending on what drive mode, how fast you are going, all of that. what you won't find out from the stats on the website is how big this car feels when you sit in it and how small it drives. it is a nice balance. the interior is not as futuristic, it is not as clean and modern feeling, but it is also a little less full of buttons and levers and gauges. this does feel like it is the roomiest of the three. i think a lot of it has to do with the natural light. the most visibility for sure.

and with the seat in use, the trunk still comes up with nearly 36 cubic feet, which is massive. ♪ to recap, the handling was exceptional. 308 horsepower is in the middle of the range. and in an amazing the d6 miles per gallon with the combined electric motor, -- with an amazing 56 miles per gallon with the combined electric motor, it was sporty without being overaggressive. the roomiest, but with a toned down interior. at $62,000 it is midrange for our selection. ♪ now the third car in our group is the porsche cayenne gts. this is a higher tune version of -- to diversion of porsche's cayenne, -- tuned version of porsche's cayenne, and it starts at $97,000. that is by far the most expensive of any car in our

group. it is also the most powerful. porsche was among the first luxury carmakers to introduce an suv. it really sets the standard for a lot of things. the engine is a 3.6 liter v6 twin turbocharged engine, 440 horsepower. almost double the horsepower of the audi. 443 with a torque, and you definitely feel it when you push the gas pedal. the thing that you notice are the buttons and levers and knobs and events. -- vents. if you are someone that likes cockpit stuff to play with, you will love this car. this trunk was the smallest at 24 cubic feet, but after you put the seats down, you will get by. it drives fast, it feels really luxurious inside, it is really

striking to look at. the just cost a lot of money. -- it just costs a lot of money. okay, this car was the most powerful. 440 horsepower, 434 pounds of torque. unfortunately only 19 miles per gallon combined. this is a true sports car in suv form. it has decent space, and the interior loaded with gadgets. but the downside i would say is price. $97,000 means this car will dig deep into your wallet. the luxury suv segment is a competitive field. there are a lot of really competent players, and these three are all excellent vehicles. however after three days of driving, i felt the bmw checked the most boxes in terms of

performance, agility, style, and value. was it the fastest and most powerful? no, but it was the most versatile while moderately priced. with the largest interior, the most visibility, and the fact that is a hybrid with a 56 miles per gallon rating, that pushes it over the edge. this car has a great value and anyone would be happy to have it. >> coming up, the best in high-end audio equipment.

headphones that feel as gorgeous as they sound. >> the cup pads are incredibly squishy and marshmallowy. ♪

♪ >> picking the right pair of headphones for you can be tough. you have to think about what they cost, what they look like, how they fit on your head. and obviously, you care about the sound. plus, there are tons of brands that make them. a pair of wireless headphones that check the most boxes for me are the sennheiser hd 1 over ear. the sound quality is wonderful. bass beats feel full and satisfyingly funky. middle notes are clean and bright, and scratchy sounds or whispers have a very satisfying texture. the materials are excellent. all of the soft parts are sheathed in this creamy dark leather. the cup pads are squishy and marshmallowy. they feel great on the side of your head and they don't have that super firm grip that some headphones have.

the bluetooth is totally seamless and totally easy. it takes one touch to link it with your phone. once you're listening to music, the volume button is also the pause button and be -- the skip ahead button. you can feel it easily without looking. it remains charged for up to 22 hours. the bluetooth range is remarkable. i actually tested it out, and i walked an entire city block away from my phone, and i had no disruption in any of the noise. it will skip a little bit, that is how you know you are at the end of your range. but a whole city block's worth of bluetooth range is pretty

good. fair warning -- all of this quality comes at a price. if you're looking for a good pair of wireless headphones it will run you between $120 and $500. the hd 1's are right at the tippy top of the range at $499. but for the build quality, the easy technology, the great sound, and i think the overall handsomeness, these are worth the investment. >> to close out "bloomberg pursuits," a regular series we

call "made." to truly appreciate an object of luxury, you need to go back to the beginning and see how it came to be. ♪ >> my name is jonathan weiss. i'm the founder and ceo of oswalds mill audio, known as oma, and we are in our dumbo, brooklyn showroom surrounded by all of our products. ♪ we are really an outlier in the high-end audio world. we make everything from the signal source in terms of analog -- that is record players, which we make out of solid slate.

we make our own line of tube amplifiers. and we are the only company that makes conical four moded loudspeakers for home use. we make everything so that we have total control over the sound. one of the first phases to our products is coring the slate. this is a very special slate because it is actually very soft, which from an acoustic standpoint is really desirable. it dissipate vibrations and resonances extremely well, much better than harder slate. when they are quarrying the slate, they will literally use hand tools to cleave off sheets which break off, which then are placed on a truck or taken with a gondola into the main fabrication part of the quarry, where a huge diamond saw with water is used to cut, cleave off irregular pieces of slate. the last stage is honing and putting a very fine edge, or bevel, so that it doesn't chip. we use cast metal in a lot of different products. old foundries, they have a furnace. the metal is put into this vat in a solid form and it becomes

molten, just like out of the movie "terminator." it is poured into a sand mold, it goes in, hardens. the sand is blasted away and you have a rough casting, which then goes to the various finishing processes. ♪ then it has to be welded, edge treatment. after that, that is accomplished. then it goes to be powder coated. where it literally is baked and cured into this superhard durable finish, much better than paint. all of our loudspeakers have steel stands or infrastructure, and all of those elements are powder coated. ♪ the mill is essentially our laboratory. it is our reference. listening space. it is where we can put elements, new and old, together, listen to them, evaluate them, and decide what direction we want to take with new products, new technologies. there are things that were never surpassed in terms of sound quality. the industry moved in ways that are not about ultimate sound quality, but about size, convenience, and cost. none of this stuff is convenient, small, or cheap, but it does represent the best sound that is really ever been made. -- that has really ever been made. ♪ all of our loudspeakers are made out of pennsylvania hardwoods. and these are all woods which martin guitar -- the world's best acoustic guitar company, right across the valley -- they use the same wood that we do. i know they are totally great woods. at that point it comes into our woodworking shop, where it gets cut down further into boards of varying thickness and width, which will be joined together to create loud speaker enclosures, amplifier enclosures, horns, all using meticulous hand on -- hand done joinery which allows the

wood to expand and contract in your home. it is like a living thing. this is a very difficult time consuming, expensive process. we are the only company in the world that does this. nobody else makes loudspeakers using solid wood joinery construction, not today. not that i know, ever. ♪ >> at a certain point, the parts come from the wood shop, metalworking shop, powder coater. they come to our central facility, where we do the final assembly. most of our recruitment is very big, and it is very big because it has to be. sound wives -- soundwaves can't be miniaturized. it is physics. it is very old-school, not mass production. and the components that we use are simply of the highest grade possible. aerospace level stuff. the last phase is really our

installation of the equipment in our client's homes or wherever they are going. if you have an amazing system, and you put elvis on, it is frightening. it is like he is right there. with the system is doing is, it's taking the energy that came out of elvis, literally. soundwaves are energy -- so it is taking the energy and it is reproducing it so perfectly that you have this uncanny feeling that somebody is there that has been dead a long time. that is what amazing sound quality is. ♪ >> you can find more as many -- more films from our "made" series as well as many more pursuits stories and videos at bloomberg.com/pursuits. ♪ >> thanks for watching "pursuits." this is bloomberg. ♪ ♪

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♪ jonathan: from new york city for our viewers worldwide, i'm jonathan ferro with 30 minutes dedicated to fixed income. this is "bloomberg real yield." >> coming up, saying the time to reduce risk is now. plus, $1.5 billion. inflation numbers for fed chair janet yellen to chew on. where a central banks are now. gripping the market.

's every asset classes. watchful.ld be this does not surprise me has reached into the high-yield market. you have got to step back and sam i think fully compensated for the risk? get some spread, you have a natural buyer for it even if they have hold her nose while doing it. >> i am nervous about almost every. on capital, is a lot less from -- more important than the return of capital. >> a lot of the people who got it right at the beginning of the rally are saying, this cannot go on forever.

scarlet: one of those big names was just good luck -- jeff goodlach. this is not the time where you say i can buy anything and not worry about the risk of it, the time to do that was 18 months ago. joining us now is cohead of global high-yield and greg bishop, at rbc wealth management. coming to us from st. louis, head of global fixed income strategy. i want to start everybody with a chart showing what jeff gundlach is talking about. the yellow shows option spreads and duration, when duration is really high, spreads impressing. is the terror we heard of all of those people's versus -- voices, is that justified? is he right to start pulling back? >> we don't disagree. we have been taking risk down steadily over the past couple of months.

we are targeting an underweight to risk assets including high-yield investment grade and emerging markets, but it is nuanced. we don't worry about the current fundamentals. portraits are healthy, leverages high, but not increasing. they spent the last few years extending maturity profile at a low cost to debt. we see low spending and don't expect it to pick up your the question is are you being adequately compensated for the al attila the and -- for the volatility and illiquidity.

high-yield tends to underperform and we see triggers for volatility to go up. scarlet: maybe it is for that reason, brian, you are underweight and high-yield. how much performance have you had to give up? >> we have been underweight, high yield since early this year, favoring equities for the risk-based assets. i agree with what everyone else has said, high-yield looks expensive, but when everybody inks the same thing, sometimes the opposite happens. easily if everything goes as planned, inflation stays low, gdp improves, you can continue to click coupons in the market, but i don't think it's worth the risk you are taking. scarlet: what is your next plan, light not more or rebuild and high-yield? brian: we have seen a pullback, but really nothing on the

broader scale. if we sell more meaningful i think regarding concerns, getting back to comments that have been main, am i getting adequately compensated for the risks i am taking on. in many cases, i think the decision to move into high-yield in search of yield, those decisions are just made blindly, throwing money at the market to get better yields. i think our caution turn to investors is really focusing on what you are investing in. do you know what you are buying, do you know what your position is? we have looked at so many portfolios recently that have last few years have chased high-yield and the investors don't know oftentimes what their total exposure is.

it is time to focus on what you on, do you know what you owm? michael: because of length of expansion at this point, when you are talking about the normal sources of risk like central banks, they are going out of their way to say we are not

going to move the market, we are going to be slow and deliberate. craig: and we believe that. we believe certainly what the fed is telling us. you need to listen to the fed, because despite concerns about whether market will move in december based on inflation, i think our view is they will. they are talking about a gradual path. clearly the expansion we have seen has legs to go. we have seen a recession on the horizon, it is two years down the road at the earliest.

looking at the equity markets, there is volatility. we expect correction there, but equities and high-yield have run hand-in-hand. it is time to be cautious here at rachel: we do not disagree that there is funny of time left in the economic cycle, but we do think that the fed will hike at least once probably twice in the next 12 months. we are in what we would term quantitative exit. when we see the fed shrink balance sheets, that will begin to have a technical impact on the market. in particular, we have seen suppressed volatility for the last couple of years. we think volatility will pick up, high-yield correlates with high volatility. i have the chart here. it shows a long-term history between volatility and high-yield spreads. in the last three weeks, it has picked up a bit. there is a valuation question. people were really concerned about high-yield when it was really tight, it is a cautious period. scarlet: another chart that has gotten a lot of attention, one that shows how the european high-yield spread have come down. in 2003, the european high-yield spread came in below the

ten-year yield and it stays that way for about four years. it ended in late 2007. now if you go to the far right of the chart, we are on the cost of the european high-yield spread coming in below the ten-year yield, again. rachel: in europe, rates will lag u.s., see a slower pass of quantitative exit in europe, also you have in the high-yield market, a highly quality market, more of a doubled the market been a single be. it doesn't have the double exposure that has added to u.s. volatility recently. it is only about a three-year duration market. it is keying off different things from the treasury. scarlet: what does that mean for you, how does all the warnings about this credit cycle that we have heard from jeff good luck, -- jeff gunlach, what does that mean for europe? >> i think spreads can continue

to stay relatively low. we are even wait overseas in emerging markets. that said, are you really being compensated for the risk you are taking? it is at best a wash. i don't think it is worth putting a lot of chips on the table, so rates should stay relatively low and support that market. scarlet: ok. everyone stick with us. coming up, the auction block has a sale of $1.5 billion in bonds causing a stir in the market. we will go over all of it here at this is a bloomberg real yield. ♪

♪ scarlet: i am scarlet fu.

from new york, this is "bloomberg real yield." let's take you to the auction block. you had the sale of three-year, 10 year, and 30 year debt your indirect hitters -- indirect bidders to the highest share on record. on the corporate side, british -- selling at $17.25 billion of bonds your proceeds of the deal will refinance buyout of reynolds american. the debt sale that has everyone talking this week, tesla priced at about 5%. the $1.5 billion sale of senior notes will -- it's ballots sheet

-- balance sheet as it ramps production. >> greg bishop and brian rowling from the wells fargo investment institute, since we are talking about high-yield, rachel, let's start with you. in terms of tesla, i know you cannot talk about tesla the company itself, but in general does it reflect a strength in the market or weakness of the market now? are we seeing companies taking advantage of yields while they still can and the central banks raise rates, or is there so much cash anyone can bring anything to market? rachel: we will acknowledge that this is an early stage company

that got the big launch of the model three. they are collecting deposits now, but they are using the money to build the capacity to build that car. that is pretty venture like in terms of use of proceeds your i wouldn't call it characteristic of the things we have seen year to date. actually, the backlog of deals in the market is quite light. m&a is running well below the pace. in terms of tesla financing, the thing that jumps out is covenants are pretty challenging these days. we are not getting the same protection we did years ago, but that has been the trend. michael: is that what you are seeing as well, people putting more protection into their

contracts? >> i would say in general the demand for debt out there is a very strong. i do not see that fading. there have been large debt deals in recent weeks, many times over prescribed. i think that continues, not just over the short term, but over the long term. there are structural issues around the u.s. and the globe that will drive demand for debt and duration. scarlet: craig, to pick up on that point, how has the market been able to observe this without so much as a blank? craig: it is a seller's market. you can come to market and cut deals, the demand for risk remains strong. global markets are a wash in liquidity. there is money that needs to be put to work, that wants to be put to work. the chase for yield is still out there despite warnings. it is about liquidity and demand remaining strong. rachel: i would like to add that we have seen record new -- the use of proceeds has been largely refinancing pushing maturities further out to the future, actually post financial crisis we have not seen a resurgence of the boom we saw before him, so aggressiveness is not that exceptional and triple c issuance was quite light.

there is some triple c issuance, but most of it is refinancing. scarlet: things don't look terrible from that perspective. rachel: i have another chart on my screen. 12 months ago we were dealing with energy recession and a group the spike to about 4% across the market. they are now down below 2%, below historic averages your you can see that energy dominates the largest liabilities stacks in the last year, but you have a couple of consumer products company in there as well, pay less and gymboree, an area that is a smaller part of the market.

michael: craig, when you look ahead, do you worry about what we're going to see in terms of default rates and does that change how you look at things. you hear people talking about how worried they are right now, are you anticipating a spike? greg: we are not. -- craig: we aren't. a gets back to the story about this market -- the markets have room to run, yet. i think as long as we continue to see this slow and steady growth, you will not see the cup in default or bankruptcies. high-yield equity markets are going to be some order, but it will just into new to drive spreads a little bit tighter. scarlet: talk about the influence we have seen this summer, how has the amount of new money being put to work being changed over the past few months? brian: i think you continue to see investors want to get into the market. i think we are seeing for the first time in the retail investors days, starting to's we investors -- starting to see investors of out of cash, not just in the fixed income

markets, but more in the equity markets. that is a little changed from anything we have seen over the last six to seven years. scarlet: everyone is sticking with us. let's get a quick market check on where bonds have been this year. looking at the 10, 2, and 30 year, yields are all coming down. still ahead, we have the final spread. the week ahead features the minute from the fomc. this is "bloomberg real yield." ♪

scarlet: i am scarlet fu. this is "bloomberg real yield." time for the final spread. coming up you have u.s. at retail sales, nafta discussions, missile defense talks in washington, as well as minutes from the fomc.

michael: we were just talking about whether assets are overvalued. the federal reserve of minneapolis bank president speaking out and he says no asset class is lashing red to him. craig: our view is we are comfortable and confident with the rescue from the great recession as well as managing recovery going forward. looking up at the fomc, with regard to the balance sheet, we don't see a repeat of the tantrum. michael: i want to take you guys into the short end of the market

g# btv 8582, this is the spread between yields and the last time we had a debt ceiling problem we saw a spike below zero for that spread. we are not quite there yet, but you can see us moving down here let's start with brian. are you concerned that we will have something happen in the debt ailing debate that will cause the markets to react significantly? brian: no. i think the debt ceiling plays out as it has most of the other times. we go to the last minutes and they will eventually pass it. it will cause market concerns, but it will pass and play out -- i just don't see -- they don't

have any other choice than to pass it. michael: rachel, is that too much complacency? rachel: i'm not sure you call it complacency, we do expect volatility to pick up, but we do think everyone senses the importance of clearing the debt ceiling. it will happen, but it will be last minute and there will be a flurry of a volatility before hand. scarlet: what will volatility look like before this one like the last debt ceiling debate? >> certainly the policy coming out of washington right now, and who is leading the way, i think that will create the volatility your we went to the t-bill market, if you look at late september into early october, you pick up 10 basis points already. there is some volatility playing out in that market. we thank ryan mcconnell and the white house are all on board running to get a clean bill passed. an uptick in volatility should be modest. michael: brian, quickly you could have the fed starting balance sheet reduction at the same time. does that were you to have two competing elements? brian: no. i'm not worried about the balance sheet reduction affect in the market. if you look at the fed's maturity schedule, they actually have over 200 billion extra maturing securities this year then last year your they will be buying more this year than last year even though they started reducing the balance sheet. scarlet: does that mean nobody is worried about the balance sheet reduction. would not be reason to worry?

craig: i think you are right to play the contrarian here, but i think what is different than 2013 and the taper tantrum is the fed has been so careful and cautious explaining what they want to do. i think that has helped pave the way for a reduction in volatility. scarlet: first question to rachel, what will we be talking about in five years time, quantitative easing or quantitative exit? rachel: probably be back on that using side of it, because i do think there will be a cycle between now and then. craig: i think we will be talking about interest rates, lower for longer. craig: easing. michael: terminal rates are overpriced, 2% says they are

overpriced, 4% says they are ok. closer to two or four? rachel: 2%. brian: four. scarlet: they get so much for joining us. this is bloomberg. ♪

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announcer: "brilliant ideas," powered by hyundai motor. ♪ ♪ >> damian ortega is famously said sculpture is action, not object. that, i think underpins ever