we are back with jeff rosenberg, jonathan bienner, and harry ishihara.ant to begin with euros -- eurozone inflation. this friday, in europe, north of expectations and jeff, the highest in almost four years on the core print. president draghi -- does he have the right approach? jeff: it is a risky approach because you are setting up a split between the data and what you are telling the market, and putting central-bank credibility on the line. so we will see. clearly looking at the chart, it is telling you a clear message that the reflationary theme is predominant throughout most markets is showing up nicely in the european data. the tune from the ecb will have to evolve. jonathan: john, is the ecb falling behind the curve? is this just early data and the effects are going to fade as the months progressed? jonathan b.: the fed is behind the curve and the ecb is not. we are believers in the fact that this is transitory. they have had an uptick in headline inflation, a small pickup in core inflation. although their mandate is clinic the headline, obviously,

we are back with jeff rosenberg, jonathan bienner, and harry issued our. friday, in europe, north of expectations, just, the highest in almost four years. it president draghi -- does he have the right approach? jeff: it is a risky approach because you are setting up a division. we will say. -- we will see. the chart is saying that the reflationary theme is dominant and showing up nicely in the european data. jonathan: john, is the ecb falling behind the curve? will the state away as the months progressed? jonathan b.: the fed is behind the curve of the ecb is not. we are believers in the fact that this is transitory. they have had an uptick in inflation. although their mandate is clinic the headline, obviously, they look at core, and from our perspective, we do not see the inflationary pressures there element the corporate go anywhere close to what he wanted to be. you look at wage inflation here, there is higher wage inflation. you look at iraq -- you look at europe and you still have slack. in germany, you still don't have weight -- wage inflation becaus

jeff rosenberg blackrock's chief income strategist. orum president and austan goolsbee who is professor of economics at chicago school of business. welcome to all of you. jeff, before we jump into the jobs number today i'd really like to know about your reaction to the ten-year. we've been pointing this out this morning. lowest level since november 22nd. why? why? lowest yield i should say. >> yeah, you have a number of things going on. you know, certainly this morning you saw big spike, and that's a risk off environment. but before that you had a number of concerns developing. as andrew was just talking about, concerns around the policy side that the market had heightened expectations for a degree of momentum, and success. and some of that clearly came off with the failure of the health care vote. and that had been weighing on the market. the other thing is positioning and technicals. most of the market, ourselves included, everyone had this expectation for higher rates. so you had positioning towards higher rates. and you had the mome

alix: also with us, jeff rosenberg. has his way, it will keep appreciating.re we in the story now? story is rolling over. part of the story, you have a week first quarter data. you have hard data that is moving in the direction. about whether the soft data is about to roll over. growth,hronized global the reflation story, it is still with us. it is challenged because of this idea that momentum on that is eating challenged. -- momentum on that is being challenged. of that policy uncertainty globally. what is the next move in terms of the ecb. global flexion point on monetary policy, we are out of expansion from central banks. we don't need as much as that. certainly, a softening in that. alix: pmi data out of japan. a three-month average, it is a cycle high. where is the rollover? it says the u.s. is weaker than the rest of the world. where do you put pmi? it is survey data, intentions to spend. that is where we see strong data. there is an expectation when you talk about survey data, these are measurements of momentum. as you get enthusiastic, it is hard to k