tv Bloomberg Surveillance Bloomberg July 6, 2022 8:00am-9:00am EDT
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surveillance. with tom keene jonathan ferro, lisa abramowicz. tom: jonathan ferro, lisa abramowicz, tom keene. kailey leinz is in fort lee said this morning. an historic day, not about the labor economy or adp, it's about four exchange and yield showing the shocking bet toward a global slowdown. jonathan: numbers we have not seen for two decades. sterling breaking down to a 1.18 handle. a difficult time for europe. gas prices, energy prices very much at the epicenter of it. tom: up 300% plus for utility costs in the united kingdom. just to capture the moment, maybe it is away from the morning dialogue, em
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foreign-exchange has moved from plus three down to minus -- em fx is in collapse. jonathan: he just called it what it is for so many people come recession trade. even crude rolling over. 99 wti. curve inversion. it is starting to come together in a more pronounced way. tom: i have jp morgan, goldman sachs and others giving us the fear of 120 oil, and edward morse absolutely crushed that. jonathan: that gives you an idea of the degree of uncertainty, the ranges that why four people in this commodity market. muhammad ali puts it well for us. mohamed el-erian said we are trying to internalize two things, price slow down and the
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fed hiking into it. the extent this fed is willing to go, i don't know. tom: kailey leinz, where are we this morning, 50 or 75 beeps? kailey: i know you like to write out the fed minutes, but this could be crucial given how much change there is just before the june meeting when they made the decision to go 75. what indicators will they be looking at as we consider 50 or 75? powell has said it could go either way. tom: a snappy recovery yesterday afternoon. jonathan: and it has not held. we are down .4% on the s&p. while equities recovered, high yield spreads were wider again for a fifth straight session. 1.0185 on euro-dollar.
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your two-year, 2.80. we have a negative difference between two sentence. that is some inversion. tom: i cannot tell you on radio to look at the screen door the terminal. this is new territory. we will review on the british story through the morning, into the afternoon with the prime minister of the united kingdom under siege. joining us right now is brian nick, chief investment strategist at nuveen. you wrote about the zeitgeist this morning which is suddenly disinflation. how suddenly is this disinflation? brian: it has been coming steadily if you have been watching the fed funds futures market. but if you have been looking at the individual slices of the consumer price index reports,
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there has been a growing number of goods especially. i think we will see it with commodity prices, as well. that will be an outright deflation. that basket of goods is going to grow. if we have any of these things tied to commodity prices, headline numbers that we get, to be softer as well. that should create a different psychology for the markets, which is what we are seeing now. eventually for the fed, the markets have not capitulated on the most important thing, that the fed may need to slow down its rate hikes sooner rather than later. jonathan: is the nasdaq getting interesting to you? brian: absolutely. there is still a path where we get out of this area we have been in, rapidly rising inflation, interest rates, a fed
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that seems to be dedicated to hiking rates. we can get from there to a better place without having to go straight through into the recessionary scenario. there is something in between where growth stocks have a chance to do well. we have seen longer duration higher quality as it fixed income duration start to perform. there is maybe more relief in that trade. we don't have to take a particularly large amount of risk for investors to make the decision. it is more of a hedging decision, but at least we are being paid to take. jonathan: would you do that through the index, what would you do? brian: we put out a note saying it is a moment to look at municipal bonds. duration should be something that investors should be looking at. if you are worried about the rest of your portfolio, especially the equity market,
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chances for recession to take things lower, one way to offset that is with higher quality duration assets. in the equity market, a not too soft growth scenario is probably the right spot. nasdaq, names and the consumer area that have gotten beaten up, health care stocks. kailey: as we look ahead to earnings season, which starts in earnest next week, how confident are you feeling? brian: this is something we are writing about this week. the one area outside the fed futures market is that. we are seeing estimates continue to take up, not only on the s&p 500 but the russell 2000, as well, which you would think is the more economically sensitive part of the market. we need to see the customary number and magnitude of earnings beats, but more importantly,
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earnings guidance. with all the focus on the labor market, real wage growth has been declining this year. that is not putting pressure on corporate profits, it is the higher input costs. as those ease, could we get better news in the second half of the year, companies not paying so much for energy costs? that is another hopeful development part of the market. kailey: how are you thinking about the inventory issue which going back to the idea of disinflation? brian: that was the first shoe to drop, retail melted down because of the higher inventory numbers. that could be disinflationary. i don't know about you guys but i'm getting more emails trying to get me to buy something. that is a part of the story, as well. it will not be one thing that
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brings us out of the high inflation nervous environment we have been in the first half of the year. there will be some pain at retailers, probably some curtailing of employees, but we know there are other areas of the economy where there are acute shortages. it has gone slower than expected but i think it is still happening the summer. jonathan: thank you. i don't subscribe to the emails from the retailers because i would get so many. kailey: the discounts are there. i got a great discount on my patio furniture from target. jonathan: you have a patio in manhattan? kailey: brooklyn. i was priced out. jonathan: patio furniture. tom: kaylee's patio is larger than my last three houses. jonathan: you have to move to brooklyn for that.
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kailey: i think that is outside of tom's radius. jonathan: getting some comments from the press secretary in the u.k. there are no plans for a snap general election. the prime minister believes he would win any step election. as we read the headlines, i'm sure there is another resignation. tom: the conservatives all saying they will not support him, but then at 8:00 on any given night, do they count the bodies and say that is it, you are done? jonathan: if there was another confidence about now, given the drip feed of the resignations, you would think it might be different. tom: in the guardian, different scenarios. isn't one that he does just enough? jonathan: potentially.
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that is where we are, tallying up these resignations as they come through. the prime minister, defiant, trying to hold on. in the meantime, a breakdown in the currency market. it's about the economic situation the u.k. finds itself in. they are not alone, the euro at 1.01. the swiss national bank willing to take that on the chin and hike interest rates. tom: money flows to switzerland. switzerland is different. the money flows into zurich, which means a strong swiss franc. jonathan: are you asking me if zurich is different to stockholm? tom: we just need to visit. kailey: road trip.
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jonathan: you know the rules here. this is just tom making pitches to go somewhere. what time is your flight to d.c.? features down .4% on the s&p. this is bloomberg. ♪ ritika: keeping you up to date with news from around the world, i'm ritika gupta. boris johnson could face a leadership challenge as soon as next week. rank-and-file conservative members are meeting today to discuss whether to hold a confidence vote. rishi sunak and health secretary savage avid quit in the latest scandal. there has been a steady flow of mp's resigning from junior position today. the shooter from a fourth of july parade has been indicted. authorities say he probably
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planned the attack for weeks, using a bible that was purchased legally. the european parliament is gearing up for a vote on whether nuclear gas or energy could be considered green. the discussion has heated up since the invasion of ukraine since the region wants to get rid of fossil fuels from moscow. the secretary-general of opec has died. he was in the final weeks of his 10 year as the head of the oil cartel when he died in nigeria. he oversaw one of the most turbulent periods of opec. he was 63. 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.
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>> the danger is policymakers leave it too late, panic. by being backward looking, end up reading rates too far and pushed the economy into recession. i think if the fed goes above 4% in the fund right. jonathan: that was david riley on the potential to go to 4. right now we have to talk about consequences in foreign exchange on the back of some big moves in
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european gas. euro-dollar, 1.0177. the currency breaking down once again. german yields down 10 basis points on the front and on the two-year. just the doubt building and building about the ecb's ability to deliver any kind of rate hiking cycle through the next 12 months. hsbc saying if we get a rate hiking cycle, it is over, year-end. tom: that is where i'm going this morning, across to the united kingdom. this is a much more global measurement of recession. the one outlier is japanese yen. given all i see it should be out at 137 but it is not. jonathan: 100.44 off the back of
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monster moves lower. tom: the vix, 29.7 after a pretty good afternoon. henrietta treyz right now, director of economic policy research at vette a partners. some real tangible experience. we have been transfixed today by the questions of the prime minister, the drama of what is going on. would your world be better off if we had president's questions, if we had more fire become a visible debate in congress from the sleep fest it has become? henrietta: i think that would be fantastic. i think politicians tend to speak more truthfully when they are put on the spot. we're only looking for the
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little mistakes that may hold its of truth, which we have seen from president biden. i would love to see that. great idea. tom: how unified are democrats right now in the house, the senate? henrietta: on the house side, anxiety have been pretty high. we saw the progressive caucus derail a lot of the bbb agenda last year about they were negotiating the infrastructure, failed to sway the senate, which is always the case. house members always know that the senators get their way. on the senate side you have a shaky majority of just 50 senators. there are few things they can agree on. one of them is health care rallies voters during an election cycle, so let's do a reconciliation bill with a health care component. climate change goes really well with independent voters.
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if you can cobble together a bill that is a health care package and climate, keep all of the toxic stuff out, you can get a real bill passed through the house and senate by september 30 on the reconciliation front, which is something that i think will happen. kailey: if we look at the scenarios together, when we were watching boris johnson in parliament tried to get around the questions of his integrity, saying look at what we are doing, putting 1200 pounds into bank accounts, cutting taxes, all of these things on policy. president biden has been trying to take action, signal action on policy when it comes to fighting inflation. yesterday, news on potential tariffs, $10 million worth of goods. what are the cards are there to play that are in his control? henrietta: i would say a couple
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of things on that. the $10 billion sounds good on paper but represents only 2% of the overall tariffs the fed imposed on china. the way it was expressed to us, the consumer facing items, your bicycles, back-to-school gear, baseball gloves, those are all on list 4a. when investors think about what those tariffs are affecting, those are only on a 7.5% tax break anyway. you're talking about a very small notion. kailey: what you are saying is we will not feel that? voters will not feel that? henrietta: i sincerely doubt it. you are looking at $360 billion worth of goods that have been tariffed. jonathan: henrietta treyz, thank
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you. i would love president's questions. tom: the first time that i went, i sat behind the goal of high -- kidding. i sat behind the speaker way up, it was great. what was great for me, the building was destroyed in world war ii by bombing. it looks old and ancient but it is not, 1950. i was shocked. i believe it was gordon brown and mr. cameron, who i saw. i was shocked at the intensity. i was completely unprepared. jonathan: politicians on both sides of the aisle in america are very thin-skinned. in the u.k. you could have a very strong or even rude
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interview, and the following week they will come back. that doesn't translate in america. if you ask a firm question, somehow you represent the other party. i wonder if that as a consequence without the media is set up in this country, fan club parties on cable news. tom: profoundly important to modern america, united kingdom capitalism. he taught me how to measure figures of scotch. jonathan: did you have to drink before you went? tom: it was a dramatic lunch. the sun was going down. you are so high up. the sun was going down as we were getting out for lunch. jonathan: i think we have longer days in the summer. futures are down by one third of 1%. tunzi talk about in this bond market. curve inversion.
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2.76 on the 10 year. bid into the curve in germany. the euro cannot get a break. 1.0175 is the low of the session. 1.0181. tom: for people not on global wall street, these are extraordinary levels. jonathan: numbers we have not seen since 2002. the euro zone debt crisis has not produced weakness people were looking for in the single currency. that weakness is here now. this is bloomberg. what if you were a global bank who wanted to supercharge your audit system? so you tap ibm to un-silo your data. and start crunching a year's worth of transactions against thousands of compliance
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jonathan: live from new york city, with tom keene, i'm jonathan fa rrow. where do you want to start? the equity market down a third of one percent. nasdaq down .4%. we got to hit the bond market. kailey mentioning, we're back below 2% on a british 10-year. u.k.10-year at 199, breaking down treasuries, breaking down our german, down there. tom: the occurrence sip market, we're still seeing a dollar
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advance. jon, i want to go back to one comment you had, i don't think it was prime minister johnson, but you mentioned given the gloom that's out there, is that when the nasdaq finally goes? i think that was an important. jonathan: sure, when it starts to get interesting. we asked j.p. morgan when toe spread high yield credit starts to get interesting, when high yield, those yields on those bonds, what are we pushing, 9%? in credit, sure, it's out there. tom: they were starving for data. no a.d.p. data. jonathan: you get jolts, services, the economic data. should we ask mike mckee about it? he's with us now, our policy correspondent down in d.c. ahead of the fed minutes. where do you want to begin, the data ahead of the fed minutes? mike: the data is going to be interesting, but not decisive. the i.s.m. services index out the a10:00 will give us some view of what employment is like in the services industry and the
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kind of directions of business in the industry, 10 that will be useful for people. jolts, probably just reconfirms we have a lot of job openings, because, of course, it's two months delayed. the big focus seems to be on the minutes. that one i don't get, because it's three weeks old, and a lot can happen in three weeks. tom: thank you, michael mckee, i love that. what we're going to get is some, several, a few. is that germane now or just about the chair, powell, jermaine said? mike: you go back to the january meeting and the minutes released in february when they said that they might have to speed up the pace of rate increases, and that freaked everybody out. so now there's this focus on the minutes. but you take a look at the dot plot from the last meeting, and at that point the market was seeing the fed underneath where it should be by the end of the year. that's a kind of blue line if you were looking at the dot plot
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on radio. you'd be seeing a line above where the fed's median dot is. and now the white line is way below. that's fed fund futures now. so is the markets has already moved on. what happened when the blue line was put in place is no longer relevant. tom: that chart really works, mike. it's like when the yankees lose two in a row, we do a chart for radio, and it works out great. mike mckee, thank you so much. really, folks, it shows the shift, the adjustment that we've seen just in the last couple of days. he was at barclays, and he was absolutely brilliant. so brilliant he went on to where he has to watch the new york mets. the chief economist at point joins us now on a very changed global economy, a very changed united states economy as well. what's great about your stanford economics is you go to the microdata, and you go traditional, old school, and say
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we must watch jobless count claims. we'll see them tomorrow. define surging jobless claims. >> surging jobless claims would be a rise of 50, 100 in a fair the short after of time. so far we've gone up 20-k from the very bottom, is so right now we can confidently say we're not currently in a recession. because that's all that happens. the unemployment rate surges, payroll growth declines. that's not happening right now. i'm not saying it won't happen late this year, for example, but we can say what's happening right now with measures like that. tom: the troops went out to the hoover institution of stanford, and they talked about regime change, and this new word that's out there, front loading. keen, if we front load our rate rises, what will that do to the
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real economy that wraps around labor? dean: i think it depends how much front loading they actually do. i think what we can say is the fed keeps going 75 basis points a clip, we will have a recession soon. so, really, it depends what the fed means by that. i think what we've been hearing and what we're seeing is something like another 75 in ju a 50 in september, and then 25 per meeting after that. if we do that, then i think they're in a slowdown mode and not slip into recession. but if the fed feels they can't slow down from the 75 pace, that's really going to cover the economy. kailey: tom doesn't care about the fed minutes. michael mckee didn't seem to care that much about the fed minutes. do you? dean: well, we certainly have to pay attention. i don't think we'll probably have a decisively different view of the fed based on the minutes, but sometimes there are some
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things in there that are interesting and maybe color the outlook a little bit. but i wouldn't have great expectations for them. kailey: so as we talk about kind of front loading of the hikes of potentially 75, 75 for who knows how long. at what point are we no longer going to talk about hiking but cutting instead? dean: i think that, again, that depends part on the how rapidly the fed raises rates, because if the fed does induce a very sharp slide on recession, then cutting next year is quite possible. but if the fed is able to slow down and get on a gradual, more gradual hiking path, i don't think they'll necessarily be cutting soon. so it really depends on how much front loading, how quickly the fed does. tom: let's talk about the arch path, which is the inflation migration down wards. if there's a kink in the curve, where's the kink? where does this become hard? we're going to talk to adam posen in a few days, and he says
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the new 2% is 3%. do you have a .6% or 5% where the dialogue changes, because then it's way harder to push inflation lower? dean: i don't think it works quite like that, tom. i tend to think of it more as the different parts of inflation. so we know goods inflation is already coming down, and if you talk to industrial analysts or people that are following those companies, they're telling us prices are falling in those industries already. and we're seeing it in the c.p.i. and core goods inflation already falling. the services are really what's going to determine how far we can fall. and, you know, i think that it's realistic that we fall down into the 3% range. whether we can get down below that on core is a question mark, and it really depends on how rapidly wages are rising at that point. tom: let's go to the rate of change, and i don't mean mets middle relief, they're killing
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it this year except for another team up in bronx. but dean maki, where's inflation in 60 days, 90 days? how rapidly do we come off the panic of 8%, 9% and come down? how fast is that going to happen? dean: i tend to focus more on the p.t.e., and we're at 6.5% there. i think by year end i think be into the 3% to 4% range. jonathan: thank you, 3% on the 30-year. dean maki of point 72, thank you. 2.the 9, down five basis points. t.k., we're looking for it an hour ago, and here it is. tom: not two cups a tank. kailey: that's how we measure time. jonathan: that's how we measure time on this program, kailey. thank you, but she's just a guest on this show, doesn't have to tolerate this permanently. tom, it's not just the band market. 107 on the dollar index, these are just numbers you've got to
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try to get used to again. i have no idea for how long. just numbers we haven't seen since 2002 for the dollar index, for the bond market i believe since may. tom: but dove tail the velocity with what dr. maki just said, his decline in inflation is extraordinary. i don't think that's in the market. jonathan: when does the fed start to respond toe that? that's my question. when do they see evidence behalf you're discussing,ing and when do they press pause? the answer for a lot of people on wall street is not yet, and perhaps not any time soon. everyone was forecasting a rough summer, tom, about a month ago, and it's getting rougher in parts of this market, maybe beyond equities in a way that we didn't anticipate in foreign exchange. but the if everybody, that dollar strength has got to be good news, hasn't it? tom: 10-year real yield comes in, and yeah, they're correlated together, i get that. to your important point on the nasdaq, we'll have to watch this as well, but again, i'm going to
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calculus here. the first derivative, second derivative, dean maki was stunning there on a first derivative that's going to move far faster than most people expect. jonathan: talk to me about how you think that stacks up against what the fed expects. the fed has called it -- tom: they're way behind. jonathan: 2.7 next year, 2.3 the year after. tom: they're supposed to be behind. michael mckee's great chart, which didn't work on radio, i mean, the fact is they're always behind. i mean, let me get it out here. i'm looking at more resignations in the united kingdom. jonathan: you got another one? tom: yeah, i think gareth bell resigned. where are we on the meeting? we've got no clue at all. jonathan: where's the e.c.b. once you get to the back end of this year? how many hikes have they managed to deliver, tom? because we forget, allow us to remind you, they're still at negative 50 basis points over the e.c.b.
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they've talked about raising interest rates. they've not done it yet. tom: i don't know. i'm speechless here over what we're seeing on the bloomberg, and again, i folded into the rates of change that dr. maki talked about. what what's it mean for corporations? i know pickup got john coming up on your other property, but how do corporations adapt to this turmoil? jonathan: it's constructive on earnings, tom. join us in the next hour. tom: come down? jonathan: he's come down on the s&p, still sees upside in the equity market, believes that's a very old photo. i'm not sure jonathan would approve of that particular photo. but that's a different story. tom: that's a bull market. jonathan: that's a different story. he's instructive on the earnings, t.k. we'll talk about that in about an hour from now, looking forward to it. tom: i saw two parliamentary secretaries resign. do they matter? i think the bartender at the club resigned.
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jonathan: that list is getting longer, let's put it that way. i'll see you at the airport, tom. futures down .2 on the s&p. this is bloomberg. ♪ >> keeping you up to news from around the world. british prime minister boris johnson is vowing to keep going in the face of calls for him to quit. calls in his own conservative party will discuss a confidence vote. more junior ministers quit today, coming after the chance her and the health minister resigned tuesday. in highland park, illinois, authorities have charged the suspect in the shooting at a fourth of july parade with seven counts of first degree murder. they say that dozens more charges will be filed in the coming days. if he's convicted, the 21-year-old could be sentenced to life in prison without parole. illinois no longer has the death penalty. u.s. says that iran is not serious about negotiating a return to the 2015 international nuclear accord. a state department cites what it
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calls a lack of forward momentum and says iran keeps raising strenuous demands. one of those is that the u.s. remove the revolutionary guard, a powerful military organization, from its list of terrorist groups. and the crash has claimed another victim. digital has filed for chapter 11 bankruptcy protection. the collapse of the hedge fund at the present lent money to, last month voyager had $485 million credit line. wal-mart has reportedly told some suppliers that new fuel and pickup fees are coming, according to the walk street journal. the giant retailer will charge companies to use more goods to its stores and warehouses. several competitors have already imposed similar fees this year. powered by more than 2700 journalists and analysts in n more than 120 countries, this is bloomberg.
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>> the priority now is, with inflation now, is to bring inflation down. as long as prices stay up, i think you're going to see an aggressive fed and probably see higher interest rates and an inverted curve. tom: on radio, james by an co-from chicago with a whip inflation now, big red button on his lapel turn it over, no immediate miracles was the theme from the gerald ford years on inflation. you join us here mid-morning, and the jobs day on friday with the markets absolutely historic. there's no other way to put it, with dollar strength extraordinary. on that, and on the new bond volatility that we're seeing, again, extraordinary, here's more. >> it comes fresh on the heels of the yield curve inversion was
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late afternoon yesterday. the question is what are we actually seeing in the bond market. is it on par with what you're seeing in the f.x. market, the stock market, even the crypto market? we're looking at the volatility via the move index t. measures the one-month implied volatility in treasury options much that's fancy talk for basic willing saying when you start to see move. this is the chart that moves higher and higher. we're looking at bond volatility that goes and mirrors what you saw in march of 2020, the peak of that crash. the question here is is this just a bond market that's repricing, actually looking into recession, or is this actually some sort of fight or flight kind of dynamic. how much is the result of participation in the bond market? tom: thanks so much. one of our themes here, folks, to round out this hour, and i think an important conversation, is what if of inflation coming down. pick 8%, 9% as the range, coming down to 6%.
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we heard from others, including dean maki of point 72, the point of inflation, disinflation happening and happening more than rapidly. the chief u.s. strategist for bloomberg intelligence joins us. what do bonds, notes, and bills do ira, if we get the call on a great disinflation? >> i agree the whole curve is probably going to invert, in part because the federal reserve is not going to be that quick to start to ease interest rates, particularly over the next year. the market is pricing for a pretty dramatic decrease in the rate of inflation, but you're still pricing right now for around 4.4% year over year inflation this time next year. so that's less than half of what we've seen thes last couple of times. but still well above the fed's comfort zone.
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so i think that the important part of that, what the market is pricing right now, it's going to keep the fed at whatever rate they end up going to, 3%, 3.5%, and stay there at least for some period of time until they're confident that they're going to be able to get closer to that 2% target for headline inflation. kailey: the market pricing has couple down substantially just in the last couple of weeks, ira. how appropriate is that for you? ira: we keep on repricing, and i think this is the key, one of the big reasons why you've seen this rally in the long end of the treasury curve. people are pricing for a lower terminal rate plus a potential recession, so therefore, interest rate cuts come the end of 2023 into 2024, the analyst strategy community is all over the place. i'm very sympathetic to the idea that the fed may need to go up toward 4% to at least get to a
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real neutral fed funds rate. so a rate where it looks like inflation and the fed funds rate are basically the same for some period of time. but at the same time, the market is very skeptical of that at the moment, and thinking that we might actually be in a technical recession right now, we've certainly seen a significant growth slowdown in real economic activity. so the market doesn't think that the fed is going to be able to get to that 3.5%, much less upwards of 4%. kailey: right now we're trading closer to 2% on the 10-year than 4%. which one do you think we're more likely to see first? ira: i think on the 10-year, we have fair value right around 3%, and there's always some variability in that, like our model has an error range. 2.7% is a very important technical level right now. we've tested that twice. if we break through that, then 2.5% certainly is the next stopping point. will we see it near term?
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i don't think so, but i do think that we may have seen the highs for this cycle in the 10-year, and really what you're going to see and the way that you're going to invert the yield curve is by two-year yields staying where they are, going up a little bit, maybe getting to 3, 3.5, and the 10-year staying more or less where it is, maybe get to 3%. tom: negative 2.5 basis points right now. ira jersey, thank you so much. kailey, we've got five ways to go. how about a single sentence, kailey, from cambridge, a conservative from devon, i hope i'm pronouncing that right, i remain loyal as always to the conservative party and my constituents and whilst i have endeavored to retain loyalty toe your government, this is no longer compatible to my values i hold dear, as she resigns from
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the government of the prime minister. this is happening in real time, kailey. kailey: it seems like every couple of minutes we get a resignation, the idea that they no longer have confidence in the leadership of boris johnson. and yet boris johnson is firm in his commitment to hold onto the premiereship. he wants to stay in power. the question is, how long is he able to do so, assist we see the string of resignations, as we see the 1922 committee meeting today at i believe noon eastern time, 5:00 p.m. u.k. time, to try to discuss changing rules for another no-confidence vote, which we heard from the press secretary of boris johnson, he will fight that if it happens. tom: away from the opinion of a very ample british press, i would urge you to look at bloomberg u.k. out on twitter and, of course, the website. stephanie flanders and others running that effort out of london. i think they'll be particularly active here in the next 24
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hours. particularly with opinion to explain to ugly americans like me what's happening distant from when the colonies defeated the mother country. that was a few days ago, kailey. what is it this have to do with corn wallace in virginia? kailey: the battle of yorktown. tom: oh, no, another trip to yorktown. kailey: we went to jamestown, too, and williamsburg. tom: ian breamer and the 9:00 noon hour. stay with us. this is bloomberg. ♪ >> djokovic fought back against sinner to reach the final. the job was closing out him in
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the decider after 3 1/2 hours on centre court. djokovic is now unbeaten at the grass court slams in 26 matched. he'll be facing cam nori for a place in the final after he took out david goffin in another five-set thriller in front of royalty on the number one court. nori becomes the first brit to make the final four since 2016 and the fourth british man to reach the semis in the open era. and don't forget, tennis channel's coverage from wimbledon continues wednesday at 3:00 p.m. eastern time.
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jonathan:, good morning. equity futures basically unchanged. the countdown to the open starts now. >> everything you need to know to get start for the -- get ready for the start of u.s. trading. this is "bloomberg: the open" with jonathan ferro. jonathan: live from new york, we begin with the big issue. >> stocks have been horrible. bonds have been horrible. >> sentiment is terrible. >> we went down 23%. >> what you are seeing now is consistent bear market
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