this is bloomberg. ♪ kathleen: i'm kathleen hays in new york. paul: i'm paul allen and city. watching daybreak australia. politics has dominated the news this week. first there was the unexpected result here in australia. now, the victory for modi in india. the win surprised commentators who had forecast a reduced majority or even i minority result -- a minority result. win's discuss modi's when -- with a senior fellow at the brookings institution. thanks very much for joining us today. win onave a look at that the surface. modi now with a thumping mandate. what sort of reforms could we expect to see in the economic sphere? >> it was an unexpected and resounding mandate. certainly there is some combination of his being seen strong on security issues and nationalistic sentiment. in terms of economic performance, he has delivered. there has been skepticism over whether india's gdp growth and employment numbers are as low as they look in the official statistics. aside, it has been a decent few years for india. there have been reforms that have been put into place such as the goo

guy: new york fed president john williams speaking exquisitely to kathleen hays -- exclusively to kathleenays. , threek to our guest kumar. thinkready told us, you inflation is not going down -- is not going up, it is going down. more people still believe inflation is going to rise. talk me through the timeline of how this is going to work. why do you think they could be wrong? at some point, inflation has to pick up. >> it may pick up sometime. i do not think the shock that president williams spoke about is at work. you have had the fed talk for the last 10 years of inflation reaching the 2% target. at the end of 2017 before she left office, janet yellen said it was because of mobilephone rate prices. you can think of normal reasons why inflation has not picked up. president --rd the the present chairman, room powell, telus -- jerome powell, telus it was transitory. is it permanently transitory? i do not think it is going to pick up this time. the reason is, you asked me why it is not happening, the u.s. population is aging. we do not consume as much as before. numbers,itative easing 1, 2

kathleen hays is here with the details. how much of a surprise was this? hey started issuing a financial stability report last year in november. it seems like the level of warning they are concerned about risk has definitely risen since the end of november. i want to jump into the bloomberg library and take a look at a chart. they did say in spite of this chart i am showing you about u.s. corporate debt, beware credit markets. the ratio of debt to gdp now at record highs. it comes into a report when they said the banking system still looks resilient. they are not saying things are follow -- falling apart. however, they noted in the report that the businesses right now who have the biggest debt loads are the ones taking on the riskiest loans. banks provide lenders protection against the borrower defaults, but those protections have started to erode. standards for new leverage loans have deteriorated further over the past six months. here is something very specific that shows clearly how they are concerned. the historically high level of business debt and the

kathleen: i'm kathleen hays in new york.ounce a timetable for her resignation as prime minister friday. she is facing growing pressure to abandon her latest break the proposal. let's bring in david finnerty. i can ask you the implications for sterling as theresa may plans to stand down. the basic question is what does this mean for brexit and politics of the u.k.? david: it is. stirling is negative. if you think about how this will play out, the most probable is a very pro-brexit person will become leader, likely boris johnson. electedit is has to be by the party membership. put down to people. the party membership will vote. there's an interesting new poll out that says 66% of party membership wants a no deal brexit. any elected official will represent that. it might berd, boris johnson. no brexit deal is what they want. is you may not have enough votes to get it through parliament. stance, itexit deal is the default option. if boris johnson did become prime minister, he just has to get the full option and it happens. give

our economics and policy editor kathleen hays is here with a recap. is all the buzz word, transitory third what is behind transitory? kathleen: the federal reserve has added a new important word to its fed to speak lexicon. transitory inflation. that is what jay powell talked about over and over, even though their policy statement did acknowledge inflation has weakened. jay powell seemed to express confidence that this would be transitory. let's listen to what he said at the press conference following the fed's meeting. --ir powell: kathleen: what he said is that inflation has fallen to 1.5% year-over-year. let's look at one of our bloom -- our bloomberg charts. it tells the story well, one picture is worth 1000 words. you can see on the right-hand side of your screen, the headline number fell to 1.3%. you can dismiss that as oil prices, they go up, down. the fact that the core is down to 1.5% year-over-year that got people thinking the fed could be getting ready to at least open the door to the possibility of a rate cut. said thatd president recently

our interview that kathleen hays will conduct. we will talk yield inversions and trade. ♪ francine: temporary relief. a stop in the trade for as president trump will meet xi jinping at the g20 summit next month. uber's chief executive warns of stocks.des for the will the third day provide any rest bite? fed president john williams, that interview shortly. good afternoon if you're watching from asia. this is bloomberg surveillance. we have a little bit of breaking news out of brexit, but a lot of the focus will be on uber. a lot of the focus will be on a report that some of the software could be used to spy on you. we will look at trade. tom: what we are looking at covering markets off of the next day of this china trade war, a huge amount of news in america on this. john williams' discussion, he zurich,n a speech in and he makes clear that he is modeling for lower economic growth. softine: we are looking at wereators that economists pointing to dechellis that soft indicators were going up. these are for may -- to show us that soft indicators were going up. these are for

kathleen hays is here with her interview from the u.s. federal bank president in zero. -- in zurich. president trump once the fed to start boosting stimulus, like china has. what is the story? differentertainly two viewpoints. i don't think that either one is suggesting -- donald trump has said why doesn't the fed help me with the economy the way the pboc is helping xi jinping. nonetheless, federal reserve is looking at an economy that even with a tariff war escalating seems to be in pretty good shape . that is exec they would john williams told me in several different ways. no matter what i asked him earlier today, he still says, as far as we can tell, the economy is in a good place. let's listen. what we need to do in the looking ahead at whatever happens, whether it is effects of trade issues or others, is really just keep our focus on achieving our goals, which is maximum employment. and adjusting our policy for whatever happens so we can best achieve those goals. kathleen: remember, the fed has said in the last few months that next w

our global economics and policy editor kathleen hays warns us from beijing. it is important every month, but what is it this time around? kathleen: first of all, let me say that this is the report that everybody watches in the u.s. and it is the first big one of the month. it covers the whole u.s. economy and jay powell made it clear he is not so concerned about growth. if anything, he expects solid growth this year. he is concerned about inflation because it has fallen and he has said he thinks the decline is transitory. it is temporary. he is looking past the fact that we have not seen a solid response from rising wages from tighter labor markets, from acceleration inflation. 3% --e hourly earnings, a 3.3% year-over-year and 3.2% year-over-year in march. powell isat jay looking past as he bets on a pickup in the second half and more forces to drive inflation higher. the top line is unemployment. it has come down a lot and the depth of the great recession. it is at 3.8%, nearly a 50 year low. the men -- middle line is average hourly earnings. they are suppose

right, kathleen hays, thank you.ext, video scandal has shaken austria's ruling coalition. the chancellor is going for broke in snap elections. we will update you on the political showdown. this is bloomberg. ♪ g. ♪ allen in sydney. .hery: i am shery ahn you are watching daybreak australia. as investors weighed the implications in australia and india, another on the watchlist is austria. austria is in political chaos ahead of the elections. in the u.k., opposition leader jeremy corbyn moved to fully backing a second brexit referendum. fellow,us is the senior jacob kierkegaard. always great to have you with us. let's start with austria because this seems to bring new hope for moderates not only in the country but also europe. how significant are these developments? jacob: this is a bombshell for austria. no moreand i have information than anyone else but i find it peculiar you have a video that is clearly created and has been created for several years ago, filled with these bombshell revelations about the far right aus

for more in his comments, kathleen hays joins us. key takeaways?asleen: the speech practically all about rising corporate debt, but everyone wondering where the fed goes next on interest rates wants to know, what did he say about the economy? the little he had to say and is prepared remarks were pretty upbeat. let's listen. >> the economy is showing continued growth, strong job growth, muted inflation pressures. kathleen: it answers questions, we got a little more flavor, some of the big picture eco-questions. when asked about this, the fed having this bid review of its monetary policy, he said the framework has served the public well. he also said one alternative might be looking at an inflation range instead of sticking just to that one point, its 2% target. let's jump into the bloomberg library and look at a chart that fits well, why the fed would think this is a good idea. the blue line at the top is the unemployment. you cannot see the peak at 10% during the depth of the great recession. this is that a 50 year low. the middle white line is wag

kathleen hays is here with the key points from that may meeting, a meeting that took place before these escalated between china and the u.s. any surprises? kathleen: i think we really got what we expected. it is what jay powell, the fed chair, all the things he talked about after that meeting, that all important press conference. in fact, -- now, it is interesting. the new york fed president, john williams, echoed what he told me in an interview last weekend. he said there is no strong argument to move rates one way or another. again, wait and see. also very important in these minutes of course, they said that many -- obviously not a butrity, more than half -- many of the fed officials see that the easing will be transitory. he said he is awaiting confirmation of that working inflation that weak is temporary. to them to the bloomberg library. we have a chart that will show you where inflation is, and where it should be. 2%. it has not been at or about 2%. this is the core rate coming down to 1.5%. this is the headline rate. it is back up to 1.4. at any rate, long way to go to where they

our global economics and policy editor kathleen hays is here with the details. xactly did they say? kathleen: this is a level of risk the federal reserve has seen rising when it looks like corporate jet, particularly the highly leveraged kind of corporate debt that is out there. this is part of their semiannual financial stability report. they gave a similar warning last year, but it did not sound quite like this. corporate debt, let's jump into the bloomberg library to give you a picture of what the increase looks like since the end of 2008 when it was at 46% of gdp. it's up at more than 50% of gdp. in the report, some of the highlights they have pointed out. businesses with the biggest debt loads are now the ones taking on the riskiest loans. that is not reassuring. they note the protection that lenders give borrowers against default are starting to erode. credit standards for new leverage loans curated -- deteriorated further over the past six months. a quote from the fed stability report. let's bring up that quote. "the historically high level of business deb

kathleen hays is here. re seeing the 10-year yields continuing to fall, but the three-year is kind of where it was. are there concerns with the ongoing trade war right now? kathleen: the escalating trade war, so many concerns about the global economy, u.s., china, japan, korea, europe. they are all there. then we had the yui -- the eu elections. over,pulists did not take but there was also the budget, and nigel for our -- nigel farang. what this shows you is the blue line is the 10 year note that , the lowest26% since 2017. the yellow line is the shorts on the treasury 10-year note. now, usually shorts diminish, because it is such a strong buying market, but the last couple of months, they have diverged. now, people are starting to short the 10-year again, maybe they are thinking it is overdone, but that remains to be seen. meanwhile, the bond market is seeing at least an 82% chance the fed will cut rates this year, only seven months away. it gets closer and closer, and shery was justas alluding to, it has i

kathleen hays is here with what fed vice chair richard clarida told bloomberg tv in an exclusive interviewill no rate cut on clarida's policy radar. kathleen: speaking exclusively to bloomberg television, rejecting the idea that any kind of rate cuts are needed right now. he echoed what jay powell has said recently. the economy is in a good place. there is no need to move in either direction on rates anything's any change in inflation will prove to be temporary -- any reduction, that is. richard: inflation has been running on the soft side recently. we think there are some temporary factors to alleviate some of that. our baseline view is inflation will move up towards the 2% objective. we are certainly looking at the data closely. kathleen: into the bloomberg library to look at the chart. the fed main index. the core rate picking up food and energy. both of them moving far below 2%. that one is 1.5%. fed officials say it is not an issue because will eventually move higher. the big monetary policy review, he would not comment on any specifics, saying he does not want to opine had of that. r

kathleen hays is here. prisingseem to be global growth expectations, and we have just seen -- we've just heard from the fed chair. kathleen: just enough to maybe hold your hope out. it eventually will get on board and look at the global economy and the risks as the precipitating factor for the next rate move. i happened today is interesting, because bond yields across the board hit lows in the afternoon after mike pence said the u.s. can double tariffs on china if necessary. let's jump into our bloomberg library and see what happened to the yield curve we watched so closely. now out to about 16 basis points. has gone flat to eight to nine. the 10-year note guys low as % today. the vice chair of the federal reserve said it is watching the flattening yield curve. they realize there are factors making it flat. it has inverted for a while. hislso said something about response to the economy and downside risk, everything that is going on globally, which did seem to open the door a crack to a rate cut. attuned to

let's bring in our editor, kathleen hays.ast time that we saw jerome powell speak was after the press conference. he seemed pretty upbeat about his economic assessment. a little more than what the fed statement has to say. he seems a little more confident when he comes -- when it comes to the resilience of the economy to private sector losses. it is only the second report that has ever been issued. the fed always talks about the kinds of research but jerome powell is the one that oversaw the limitation of this on a semiannual basis. they are watching corporate debt there he closely. i called up a bloomberg chart our library. about alling corporate debt. this is corporate debt to u.s. gdp at record highs. look at how it has climbed from the depths of the recession. the total amount is twice what it was going into it. that is one reason why the fed is concerned. there is a lot of riskier debt piling up. obligations. he talked about their four-point check listings. there looking at borrowing by businesses and households. also, f

our editor, kathleen hays, is here. repricing of some global growth expectations. we are hearing from clarida. kathleen: they see them day after day. it is one of the things that keeps the bond market rally on a boil, forging ahead. bond yields -- vice president mike pence said the u.s. could double tariffs on china if necessary. jump into the bloomberg with me now. as the 10-year note came down with 2.20%, as the 30 year bond hit a new low in this recent 2.6%, the yield curve inversion got even deeper. it is now out to 16 basis points. the fed would probably say it has to go deeper before we get to worried. the potential recessionary signal is still there and it is helping the bond market rally. of thee president federal reserve spoke in new york today at the economic club of new york. it is a high-profile venue for fed officials to speak. is in asay the economy very good place. unemployment is low. inflation is muted. some would say it is pretty weak , in fact. besides that, when pressed and questioned, he did seem to open the door at least a crack to a rate cut i

kathleen hays is here. this is a popular bond for foreign and domestic investors. at happened today? kathleen: someone did not buy the way you would think they would buy the 10-year note. this is the most popular for u.s. investors. if any is going to be strong, this is the one. a very to cover ratio, important measure of demand, fell to 2.17%, the lowest in 10 years. jump into the bloomberg library with me. bid to cover, the amount of treasuries offered relative to the amount of bids they get, the lowest in a decade. at the depths of the financial crisis, here we are in 2019 may, a big difference. why did people jump to the conclusion the chinese did not buy as much? trade war tensions this week of escalated. maybe the chinese are trying to flex their muscles, that is what people are thinking. you can get away from this notion if you look at the bloomberg terminal. you can see what is happening and eight shorter timeframe much better. -- in a shorter timeframe much better. this includes international and monetary authorities. it went down from 70% to 50% of the bid

and policyconomics editor kathleen hays, thank you.battle with europe over the iranian nuclear accord, with penalties against a financial body credo by germany, u.k., and france to protect -- created by germany, u.k., and france to protect trade. let's go to jodi snyder. yes, as you pointed out, it is this body that was created in january by the u.k., germany, and france, basically to allow there to be trade with iran without going through american banks, without having to go through the u.s., which, of course, the u.s. pulled out of that nuclear accord with iran even though its allies still remain in it, so now, the u.s. is escalating those tensions that divide what to do about a ran by saying they are threatening penalties against the financial body, and saying that, basically, and this is according to a letter obtained by bloomberg, that there basically could be sanctions against anyone associated with it, and they could be barred from the u.s. financial system, so this really is escalating those tensions. that divide has grown sinc

kathleen hays has the numbers. miss and a beat. n you bells, and allde the other bad export data we have seen, including the last couple of days, south korea, singapore, and japan. japan's export orders fell for the fifth month in a row, down 2.4%. that is unchanged from the month before. imports rose a lot stronger than the month before. 6.4% on top of 1.2% before. demand still looks good. there's a lot of imports coming in. exports, the demand around japan has worsened. the supply chamber getting andrrupted by the trade war more. one measure falling to only ¥60 billion from 528 billion. not quite as bad, but still in negative territory. versus ¥154 billion. the core machine orders are very important. they rose more than expected on a monthly basis. iny were up 3.8% versus 1.8% february. that is encouraging. theyyear-over-year, ther are still negative. they were down in march. they were down 5.5% in february. let's step back. one more reason why this is byortant, how badly shipped the trade war, what will happen next, what will hap

kathleen hays is here with a key point from the meeting. kathleen sending a deliberate message to the market. kathleen:kathleen: it seems like they certainly have. the fomc minutes are so carefully written that it is hard to believe they did not pick and choose the words very carefully to include in this very important document released in washington. patient cause person -- pause persists. members observe a patient determining future adjustments to the target range for the federal funds rate would likely remain appropriate for some time. resonance asome well. john williams, president of the new york said, speaking today, echoing something he told me last week in an interview. there is no strong argument to make a move in either direction. we think that will be temporary. it will pick up growth in the second half. the fed minutes talked about that. the transitory nature of this drop in inflation. so far below the 2% target. world interest-rate projections are work page. by the end of the year, the odds are more than 70%. that is the best in

kathleen hays is here. it seems the yield curve continued on a down trend. kathleen: if it is a new normal, that has to say something about the abnormal that the u.s. and global economies could be headed for. this is what is driving the bond rally again to accelerate, to push yields down quarter. it is not just donald trump and president xi. it is also the e.u. parliamentary elections over the weekend that saw the decline in power for the legacy parties, the rise of populists and nationalists, including nigel farage,'s party is ready to go for a no-deal brexit. his victory may strengthen him to be the next prime minister after theresa may steps down. all of this is the kind of things that really concerned about where the economy is going. take a look at this particular chart, which shows you the yield in, now down to 2.26% m trading at a 19 month low. -- and trading adam 19 month -- a 19 month low. people are now changing their mind. maybe this has gone a bit far. maybe it cannot go much further. it is interesting to see it is not just the u.s. german bunds e

economics and policy editor kathleen hays. thank you for keeping an eye on all of that.he australia. should we be expecting a rate cut at the next meeting? this is bloomberg. ♪ paul: after the weekend election, investors are turning their attention to the bank of australia. the governor is to give a speech on monetary policy on tuesday. in britain, many are predicting a rate cut. one economist has a different take. has the rba onon hold at one .5% for the foreseeable future. 1.5% for the foreseeable future. she joins us now. a lot of people are expecting a rate cut in june after the unemployment figures last week, but you are not so sure. >> we still have the rba on hold , but we are watching it very closely. lot about theed a labor market. they have said we need to see further improvement in the labor markets to bring inflation back to target. we've had a mix of job numbers last week. we saw a solid increase in the number of jobs. we did see the unemployment rate at three point 5%. it will be interesting to see if that's enough to push the r.b.i. -- rba to cut rates in

kathleen hays is here. given the u.k. needed this extension from the e.u. ongoing drama within brexit, not surprising that the markets are not quite convinced. kathleen: absolutely. i mean, at least the threat, the sense that there could be a no deal chaotic economy clenching brexit is behind us. nevertheless, there's a lot of negotiations to go before people can say this is it. we have got the deal. and it is going to be done potentiallythose damaging spillovers. mark carney holding out for the possibility there will be a smooth brexit. a lot of people think it could happen. the bank of england is upgrading its forecast for the economy to 1.5% on gdp to 1.2%, which is what they saw earlier. based on all of this, the message from mark carney is listen to me come investors. we could hike rates a little more this year and next year and he wants to give them the warning. let's listen to what he said. something like this forecast comes to pass, a period of time where the economy is growing in these domestic inflationary pressures are continuing to build even tho

he was talking with bloomberg's kathleen hays.ith us, catherine man of citi. 2/10aid your numbers say because of what? is that because of the tariffs effect? already o an does that include the $325 billion they will be adding over the course of the summer. catherine: our 2/10 is on the full range, but i think it is important. that is just running the numbers without considering that are not being burdened by the tariffs might choose to do. i think that is a key issue. atms are looking through some that have had to do with wages, some that i had to do with producer prices rising, some with transport costs. there have been oil shocks that need to be passed through as well. have priceoods increases, then nontariff goods prices could also go up. that is an important agreement in the overall consumer pocketbook. david: how does that factor into the possibility of a fed rate cut? now markets are saying it is pretty close to a certainty that closed.rate cut will be catherine: they've been talking about their symmetric target for a while,

paul: the fed always data dependent, policy editor kathleen hays joining us from zurich.issan even more pressure -- under even more pressure after it falls below even the most pessimistic estimates. joins us toomeone discuss the trade talks and the market action. this is bloomberg. ♪ . this is bloomberg. ♪ shery: we are counting down to the sydney open, gray open but futures looking positive. we have more positive numbers out of u.s. equity markets rebounding for the worst selloff in four months. the aussie dollar consolidating around $.59. we are awaiting australian first quarter reports. i am shery ahn in new york. paul: i am paul allen in sydney. you are watching daybreak australia. president trump reassured investors he will clinch a trade deal with china. joining us now a chief portfolio manager, caleb silsby very we saw a rebound in the u.s. -- caleb silsby. we saw a rebound in the u.s. but we also saw how complacent markets got before the trade tweet from the president over the weekend. is this a genuine rebound or complacency again? caleb: the way we look at it, t

let's start with the bank of dallas president robert kaplan, who told kathleen hays about the differencensitory and structural inflation in the u.s. economy. ♪ >> the part that is muting inflation is the structural part of inflation, not the cyclical, the structural. what i mean by that, technology enabled this disruption, to some extent globalization. businesses don't have pricing power. the consumer has in the palm of his or her hand enormous computing power, more than most companies 15 years ago. and when a business has a cost increase today, it is likely it will erode their margins and they won't be able to pass it on. that is muting inflation. >> when will you get worried about this inflation? >> the reason i highlight the structural issue, and i have been talking about this for meansyears, for me it inflation is not running away from us. it also in my view is not as susceptible to monetary policy. we used to take that into account. we just got talking about corporate debt. i think we are just going to have to monitor this very carefully. i am not inclined at this point to lower the

ahead of that, kathleen hays has a roundup of remarks from boston fed so what is his view? her fed officials. jay powell has spoken this week. the new york fed president and now the president of the federal reserve of boston jumps in with the same message. the fed does not need to do anything on interest rates. >> there is no call for monetary policy to change. my own view is that i do view the inflation as predominantly being temporary. i think labor markets are tight and we are going to get much closer to 2%. if the tariffs go in effect, we will probably get to 2% little more quickly. kathleen: in that part of has prepared remarks today, he is referencing the fact that the fed's key measure inflation is far below 2%. one measure is 1.3%. there is a big gap. will tariffs boost it? he said it is not clear cut. if the tariffs do not last long, it is a temporary one-off thing on inflation but what if they do last? what if they get into pricing? they can have a lasting impact. the whole question of growth, he said the trade war could pivot and in the end, it sounds like he is k

kathleen hays will talk to him about inflation, the state of the market, and the escalated trade war.t is later on this evening at 7:30 p.m. in sydney, 5:30 p.m. in hong kong and only on bloomberg television. shery: you can get a roundup of the stories you need to know in today's edition of daybreak. bloomberg subscribers can go to tv on your terminal. you can also customize your settings so you only get the news from the industries and assets you care about. this is bloomberg. ♪ paul: this is bloomberg technology global link. i'm paul allen in sydney alongside shery ahn in new york and emily chang in san francisco. let's take a look at the top global tech stories of the day. emily: here's what we are watching. apple slumped as the supreme court gave users the green light to press ahead with a lawsuit to artificially inflate prices at the app store. it could add pressure on apple to cut the 30% commission it charges on app sales. the app store is not a monopoly, according to apple. the escalation in the trade war hitting tesla the hardest among major automakers with investors bett

let's start with the bank of dallas president, robert kaplan, who told kathleen hays about the differencey and structural drivers of inflation in the u.s. economy. >> the part that is muting inflation is the structural part of inflation, not the cyclical, the structural. what i mean by that -- technology enabled disruption, to some extent, globalization. businesses don't have pricing power. the consumer has, in the palm of his or her hand, enormous computing power, more than most companies 15 years ago. and when a business has a cost increase today, it is likely it will erode their margins and they won't be able to pass it on. that is muting inflation. >> when will you get worried about this drop in inflation? >> the reason i highlight the structural issue, and i have been talking about this for three years, for me, it means inflation is not running away away from us, it also, in my view, is not as susceptible to outside forces or monetary policy. we just have to take that into account. we just got done talking about corporate debt. i think we are just going to have to monitor this very c

paul: thank you very much, global economics and policy editor, kathleen hays.ntral bank in rb& z expected to cut low but a record economists divided on whether it will be today. why so much uncertainty willunding what the rbnz do? marketnything to see bits appear ahead of this decision, clearly a lot of uncertainty in the market, after that r.b.a. hold yesterday. twoi think there are schools of thought on the rbnz, having adopted bias in march, there's expectation the governor will want to get on with the job. domestic data the last few weeks soft so he's been delivered the conditions he needs to justify pulling the cut trigger. on the other hand, the economy is not in bad shape. growth has slowed but it's still above 2% and as we saw from the yesterday, there's an equal argument to sit on your hands and wait and see what happens. urgency to bel cutting rates. is the r.b.a.'s decision to hold have any implications for the rbnz? matt: it shows there's no urgency there. paradoxically, if you want to get stimulus into your economy, you want to get a lower and boos