bob michele of jp morgan. let's get you updated with other stories with your boom -- with your bloomberg brief. yahaira: investors took a bite out of apple's market value following regulator moves against the company. the doj and 16 attorneys general filing a lawsuit accusing apple from blocking hardware and software features on the iphone, claim apple strongly refuted. across the atlantic the company is said to be facing probes about whether it is complying with europe's digital markets act. tesla has reduced electric car production in china amid sluggish sales and intense competition in the world's largest auto market. sources telling bloomberg the company instructed employees to lower production of the model y sport utility and the model three 3 by working five days a week instead of the usual six and a half. nike warning investors will take a hit pushing shares lower in trading. the world's largest sportswear company says it is working to realign merchandise to better match what shoppers actually want to b

bob michele from jp morgan comes on the program. we estimate very straightforward question. -- we asked him a very straightforward question. he said when was the last time that you were this bullish? mid to thousands. mohamed el-erian said the same thing. lisa: the question that you asked is the theme of the morning. how far do we have to go back before we see this all-encompassing bullishness? there might have been consequences down the line, but it took long enough for people to make a lot of money in the meantime, and that seems to be where we are at. jonathan: you hear things like that and it makes you feel uncomfortable, but it has been upgrade after upgrade.we had one from socgen taking price targets from 4750 to 55 hundred. u.s. exceptionalism is going from strength to strength. despite widespread market optimism we view this as rational rather than excessive. this is not a bubble. , times have we heard that in the last couple of weeks? lisa: this is not a bubble. to me it raises the question. there is a lot of early cycle ty

bob michele of jp morgan, peter oppenheimer of goldman sachs, kneeled out of, mohammed bail -- mohammedwe parse through what we heard about a change in the reaction function. that's the take away. there's been a shift at the fed where growth does not necessarily mean inflation and does not come in conflict of their goal. jon: that's something that's been developing for months based on the communication from chairman powell. stocks yesterday, all-time highs of the close. the opening bell about 35 minutes away. looking for more record highs. from new york, good morning. this was bloomberg surveillance. ♪ you're probably not easily persuaded to switch mobile providers for your business. but what if we told you it's possible that comcast business mobile can save you up to 75% a year on your wireless bill versus the big three carriers? did we peak your interest? you can get two unlimited lines for just $30 each a month. there are no term contracts or line activation fees. and you can bring your own device. oh, and all on the most reliable 5g mobile network nationwide. wireless that works for

every single our bob michele of jp morgan, i feel great. he was bearish a year ago. this is a big change. lisa: now the bearishness is not being bullish enough. we see upgrade after upgrade on wall street as everyone reassesses what the pivot from the fed means. jonathan: oppenheimer raising the s&p 500 year end target to 5500. i think that might be john stall office. you talk to him about upgrading the target and here we are. lisa: he said i'm going to revise things. there's not much upside from here to get there. as we heard, it did not take long before we could get to 5400 by the end of this week. jonathan: they get lined coming from boeing. let's get going up on the screen. boeings dave calhoun announces his intent to step down as the ceo. the stocks is higher in the premarket 2.5%. the boeing ceo announcing his attention to step down as ceo. lisa: everyone is wondering what took so long. everyone was wondering why he was still there. the idea this is a cultural problem that is not yet seen bottom and a question of who comes in and what is the cleaning house effo

i will note i first worked on the hill, came here and 89 the leader was bob michel he got queued by newgingrich got queued and replaced by denny history hashed. her was not cooed, but after him, john boehner, he got cooed. then paul ryan, he got cooed. thank kevin mccarthy. he got cooed. >> now, mike johnson, i don't know what's in the water or something over there here. a coup there are coup. >> when you come into house, >> republican conference, it's cuckoo for coco puffs. yes. >> i'm just tough for your head i feel like you made can ask when you talked to trump officials and they're watching what's happening with house republicans what do they say? they've got to be a little bit concerned about the dysfunction, right? >> they are with honestly, there's so much more concerned with donald trump's campaign. all of these legal issues, what we've been talking about on the, spillover from people watching in the house and saying, i don't want that. >> i think they're trying to give my johnson more time. honestly i don't think that they're happy obviously, when i talked to them, i think they

bob michele says he feels great. he has not been as bullish since the mid to thousands.ttle bit lower on the s&p 500. yields a low bit lower. spent some of the weekend thinking about if mohamed el-erian is right, is it good or bad for bonds. what does it mean for fixed income? if this fed is willing to tolerate a range of inflation between 2% and 3%, what does it mean for fixed income? lisa: the answer is it depends. he saw the 10-year within range making sense. longer-term it strikes me that it is not a good proposition for bonds because longer-term there is this question of the fed's ability to counter downturns. jonathan: can i reiterate i spent some of the weekend thinking about that. the rest of the time watching football. the national anthem. fantastic. amazing. lisa: it sounds like you had a great vacation weekend. jonathan: some of the weekend thinking about bonds too. [laughter] this morning, fed speak following a dovish chair powell. >> >> people are worried about a reacceleration where we roll into recession. they're waiting for a better buying opportunity. we

lisa: earlier this week, or actually last week, bob michele said he is really changing his tune whenmore broadly with respect to private credit and how much that has been a stabilizer for the override this credit market. do you agree that this is actually a source of stability, not necessarily a source of potential hidden risks that are out there that are sort of in a landscape? >> i think private credit was a source last human and syndicated public markets are closed and it provided an avenue for some issuers that couldn't access high-yield traditional loans, that could actually borrow. this year i think the story has changed where there is such a competition for capital that you really have started to see the competition between public markets and private markets drive credit spreads tighter, start to make covenants a little bit less strong, and unlike the past when be sought by lateral loads between one private lender and one issuer, now you are seeing it look much more similar to public markets where there are lending groups including private and public lenders and i think over t