month too because we're coming up at the end of the month of august, down 3.3% joining us now is bruce richardsr of marathon asset management. bruce, you have been saying we're heading into recession in the u.s. >> yes. >> do you think the stock market is underpricing it >> what's also underpriced is the credit markets if the credit markets and equity markets aren't pricing in recession, which i don't believe they are, then there's further and significant downside from here so 3650 on s&p 500 i think it will have to test that, which is down another 8% from here and out 100 basis points from here in high-yield bonds which is where we'll get to but i think we'll get to 10% on high-yield bonds yes, i think we're underpricing recession. given the yield curve, you can set your clock forward about nine months from today and i think that's when they will designate this being a recession. >> why is the market not pricing this it's very telegraphed with the yield curve and what the fed is saying >> s&p earnings right now for this calendar year is $214, $215 per share is what we're on pace for. if you lo

bruce richard, chairman and ceo of marathon asset management is joining us now.is plugged into what is happening. great to catch up. is this too hot or are we in a recession or not? how are you thinking about the macro? if we get a recession, what kind will it be? bruce: nice to see you. recession is the big question. you look at the first quarter and second quarter and look at negative growth which is about inventory buildup, 8000 jobs created. but the focus we have right now in the markets is the yield curve. we have not seen it inverted, this inverted since 1980. you go back to the 2008 recession, 2001 recession where they yield curve got to 42 basis points inverted and the dot-com bubble first, but we haven't seen that level 1980. so go back to those charts and focus on that. powell said at the last presser out of the fed meeting two weeks ago, he said you haven't felt it yet. he is referring to financial conditions. imagine from march to september that the fed move 25 basis points. imagine that. that is what is currently happening. inflation will roll over.

deese, talking the economy ahead of jobs friday and an exclusive with marathon asset management's bruce richardstern time, see you th we'll be right back on "squawk on the street. >>> ev maker lucid filing for a new offering to allow it to raise up to $8 billion stocks under pressure. phil lobo with the latest. what do we know, phil? >> we know it's going to be an offering that could happen at some point in the future, exact securities remains to be determined, as you mentioned lucid, saying it's going to raise another $8 billion but this is basically an offering where they will determine at some point in the future exactly what securities, what the structure will be of the offering, and when it will take place they do need that cash as they continue to realize the cost involved of ramping up manufacturing, manufacturing that this year, by the way, they have cut back three times now, or at least twice from the original goal in january they were going to build 20,000 vehicles they cut that production target for this year down to a range of 12 to 14 #,000 vehicles in april, and then in august, the

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