local bonds, dollar bonds, are still trading. it is also fundamentally what we are going on about as well. yvonne: and more pressure from some of these trusts as well. they want their money. they want it now. can they pay it? that is what is causing this huge volatility. we have not even talked about president xi's speech. we have the jobs report coming up in the u.s. and flooding in the u.s. it is a big day. david: let's talk about markets. i will rejoin you guys in a moment. we were looking a little better compared to where we were last week. we are on track for quite a weekly gain. we will the macro space there for now because apart from the volatility and gilts in new zealand, things are basically on hold. treasuries slightly steeper on the curve. it is nonfarm payrolls we are tracking very closely, but at this point in time, we are tracking evergrande. in about two minutes, we should be getting a resumption of trade in those local currency bonds of evergrande, which actually tanked 23%. last i tanked on the dollar bond, we w

— of bond this time? yes, you definitely — of bond this time?t to _ of bond this time? yes, you definitely get to see - of bond this time? yes, you definitely get to see his - of bond this time? yes, you | definitely get to see his more vulnerable side. you get what you want from a bond film, but it digs deep into james bond and his background. i5 it digs deep into james bond and his background.- and his background. is that what you — and his background. is that what you want _ and his background. is that what you want from - and his background. is that what you want from your i and his background. is that - what you want from your bond, a softer side?— softer side? yes, it's nice to have many _ softer side? yes, it's nice to have many layers _ softer side? yes, it's nice to have many layers to - softer side? yes, it's nice to have many layers to bond, l softer side? yes, it's nice to i have many layers to bond, and daniel craig nailed it in this one. ., . ., ., one. some of the critics have said how _ one. some of the critics have said how funn

tote frame for the next bond? we have had _ frame for the next bond? - have had many names.ea. she said james bond will always be a man as far as she's in charge. a first possible black james bond far as she's in charge. a first possible blackjames bond with interest. page from bridge attorneys the latest. i am not sure direction they will go into. as i pointed out in my review of this movie, we have lost roger moore in 2017 and sean conneryjust a little over a year ago. there is a poignancy here. an out daniel craig, a poignancy watching him leave and whoever they get has big shoes to fill.— big shoes to fill. pete who has “ust big shoes to fill. pete who has just watched _ big shoes to fill. pete who has just watched that _ big shoes to fill. pete who has just watched that new - big shoes to fill. pete who has just watched that new james l just watched that new james bond film. now time for the sports news. we will start in paris. lionel messi scored his first goal for his new club, psg, defeating manchester city. it is this first appearance since leaving barcelona. just a

how do ratings analysts in the 1960's figure out what is a aaa bond or what is a baa bond?roposal was that there is something fundamentally biased about the process. that for instance favor suburbs over cities that have been disadvantaged by federal policies. the market is exacerbating, in some sense creating inequity, and the proposal was to put forward low interest loans, federal grants directly to municipalities as a way of circumventing the power dynamics. caroline: you say black neighborhoods were continuously deemed unworthy of debt. if now we understand that you cannot have that sort of racial inequality going on at that level and you start to invest in black neighborhoods, you create these unwanted side effects, pricing out of those that live there. that you don't have this sort of gentrification that we have seen in certain parts of brooklyn, which ends up meaning that what was the heart and soul of the black community becomes less of one. destin: the gentrification issue does start to come into play for instance in the early 1980's. you had neighborhoods that were

of ian and other bond. -- bond is still relevant _ proud of ian and other bond. -- bond is still relevantow why — is still relevant today. i don't know why it _ is still relevant today. i don't know why it is _ is still relevant today. i don't know why it is so _ is still relevant today. i don't know why it is so popular, ii is still relevant today. i don't - know why it is so popular, i think bond is like george and the dragon, he always kills the 25 villains he has had in the films, the 12 he has had on the books and the nine villains in the short story, it is for queen and country so he is very patriotically and hanson and he goes to these beautiful locations and has these adventures —— he is very patriotically and handsome. often these characters in the books were people he knew during his world war ii wartime experience and certainly some of the situations used in the old films, not so much the new ones, are things that actually happens that he knew about. win are things that actually happens that he knew about.— are things that actually happens that he knew about. will you miss dani

commander bond, how are you, sir? good _ commander bond, how are you, sir?ood scene. does that red to - usual high standards. it's a good scene. does that red to grouse l scene. does that red to grouse i belon: scene. does that red to grouse i belong to _ scene. does that red to grouse i belong to a _ scene. does that red to grouse i belong to a lady? _ scene. does that red to grouse i belong to a lady? yes, - scene. does that red to grouse i belong to a lady? yes, sir. - scene. does that red to grouse i belong to a lady? yes, sir. thel belong to a lady? yes, sir. the countess- _ belong to a lady? yes, sir. the countess. our— belong to a lady? yes, sir. the countess. our best. _ belong to a lady? yes, sir. the| countess. our best. fortunately belong to a lady? yes, sir. the - countess. our best. fortunately we have had _ countess. our best. fortunately we have had a — countess. our best. fortunately we have had a cancellation. george is with me now. good afternoon to you and thank you so much forjoining us. i think you have seen the new james bond at a premi

bonds catching the bid. yields falling after a big movement upward yesterday and coinbase, we will chat this later, interesting comments coming out about the sec. coinbase said they were getting fighting words between the cryptocurrency spaces. guy: we are getting details and we will come back to that story. i think it is a fascinating story. that is where the action is. details from the bank of canada. little short against the dollar into this but making a few gains. dollar dipping back against the canadian dollar. unsurprisingly the bank of canada keeping the benchmark overnight rate. nobody was expecting any change. it is the commentary on what comes next. people are going to be looking for that. we bring you the details as we get it. bank of canada maintaining its weekly bond purchases at 2 billion canadian dollars. we are seeing reaction but not much. what about the jobs number? taylor: really interesting. you want to think about jobs opening, job opening survey coming out. numbers look a little higher

investor, social bond investors.is is certainly lot less risky than say a new green bond where you do not have any idea of the sustainability characteristic of the company as a whole. >> saida, interesting conversation thank you for joining us today in a big week for the uk's green bond program >>> we're going to take a quick break but coming up an interesting interview. astrazeneca's new drug shows a response in treating breast cancer patients. we'll speakto david frederickson after the break do you have a life insurance policy you no longer need? now you can sell your policy, even a term policy, for an immediate cash payment. we thought we had planned carefully for our retirement. but we quickly realized that we needed a way to supplement our income. if you have one hundred thousand dollars or more of life insurance you may qualify to sell your policy. don't cancel or let your policy lapse without finding out what it's worth. visit conventrydirect.com to find out if you policy qualifies. or call the number on your

i think it is the best bond performance of all of them ever given in a bond movie.re acting than any have done before. he digs really deep emotionally to finish his five films, his 16 year tenure as james bond. the surprises are not whizbang car chases, although they are there just to reassure you, but really the emotional twists and turns of his relationship past and present that we are examining. there are some really big surprises, which some of you may hear about before the movie. you won't hear them for me, as a professional critic, i won't spoil it but they will stun you. i spoil it but they will stun ou. , ., , spoil it but they will stun ou. , . , , ., you. i understand why you wouldn't _ you. i understand why you wouldn't want _ you. i understand why you wouldn't want to - you. i understand why you wouldn't want to do - you. i understand why you wouldn't want to do that, l you. i understand why you l wouldn't want to do that, so you. i understand why you . wouldn't want to do that, so i appreciate you not giving us any spoilers, but as you say, such an emot

you say the diversified portfolio structure of bonds makes this bond market and this bond bear market different. >> it could be different. i think certainly we have to consider the extraordinary circumstances that have brought us here. we have to keep that in mind. just relying on long-term constructs in the global financial market linkages, we need to be a little bit in the wake of the pandemic and policy both monetary and fiscal over the past 18 months. jonathan: let's focus on china. property developers dominate the high bond yield. we have seen it start to bleed to other property developers. when you wake up on a morning like this, where are you looking for contagion beyond the property developers in china? >> it is interesting. the first thing i looked at this morning was the bloomberg report. another property developer was able to raise 2.5 billion by borrowing cash and selling a unit. as i read this, first thing in the morning, i felt maybe the expectations today of broad spread contagion maybe overdone. clearly the impact on growth is there. i think the key point is i continue

this is i think the best bond performance of all of them ever given in a bond movie. bond previously has done. a very deep emotionally to finish off his five film, 16 year tenure as bond. so the surprises in this bond are not whizbang car chases and locations, although all of those are there, just to reassure you, but to —— it's really the emotional twists and turns of bond and his relationships past and present that we are examining here and i have to tell you, there are some really big surprises in there which some of you may hear before you go and see the movie. you're not going to hear them from me as a professional critic. i'm not going to expel them for you i am going to say they will astound you. bond is a sort of thing that you go to, they have been to with your dad, that you would take your children to and even the royal family turned up. prince william had to bring his dad along as well. it is something they share, everyone can. jason solomon. a previously unreleased audiotape featuring the words and music ofjohn lennon has sold an auction in copenhagen for

one of the local bonds and the other on the dollar bonds.re is still an $83.5 million payment due on this one. this is expecting to be trading at about $.26 on the dollar. that's the issue here. we still have $669 million of interest payments due through year end. jonathan: -- tom: what i would watch to the general counsel and a lot of things that own this. jonathan: evergrande seems to be shaping everything at the moment. here's your bond market going into the fed. tense up about a basis point. 30's up about a basis point. you have to go into the news conference and reflected some kind of consensus to the federal reserve. it may well not exist. then you've got to go into the news conference and say there's a big gap between qe and a decision on rates. there are two big issues for the chairman. how do you do all of those without causing a little bit of trouble. tom: i know romain will have that on the close. jonathan: i amp up -- i am pumped up for that. >> let's take it at some of the individual movers. fedex one of the most notable. it cam

two interest payments due on two bonds, one local currency, one dollar bond.nd of dealt with the local currency issue yesterday. today, the dollar bonds, 83.5 million dollar interest payment. a some indication from chinese officials earlier this morning that they wanted this company to avoid defaulting on that. it would be a 30 day grace period for that particular bond but this morning the stories coming from the wall street journal suggesting china has a degree of reluctance here to step in. tom: no question about that. i would go as you mentioned the social tone of the work. in the bottom of the story, the last paragraph talks about to monitor so-called mass incidents. they are worried about the traditional chinese issue of people in protest. jon: the market reaction, there's not much of one is there? if you bring up the chart, just a little dip on the s&p, off of session highs. tom: but we took the bloom off. jon: a little bit, sure. given where we were monday morning, we succumb away on on this, we woke up at worried about what would happen with these inte

ever grand is expected to oh $45 million on a $24 bond. this is not good for the bonds. it is not good for stock. people do not care on a broader level anymore because china has stepped up and take aggressive steps, including ever grand to sell off part of the bank that is really opposed to ever grand and using the money to make good on some of the ever grand obligations. it will go to bonds. there is a pending home sale number. it is a slowing of home sales. if you look at what is underpinning that, it is sky high house prices. it is a record increase in house prices for three months in a row. it is a question the fed will have to answer, which is when will it become unsustainable. oil is out with an inventory report. how much do we continue to see inventory be depleted. it is a story that we are seeing. this is the highest price is 2018. john: thank you. this line up at 11:45 a.m. eastern time, the japanese, and the federal reserve, and in ecb forum. what are you expecting to hear? tom: they are going to do everything they can to not say everything. but it will be inte

the total bond is $20,000 personal recognizance bond. if he does leave the facility without any permission, your bond will be revoked and there will be a bench warrant for your arrest. you understand that? >> yes. >> that will be the order of the court. >> your honor, at this point, i'm handed the passport in for the report. >> your honor, so that letter does not become public information, can we have it back? otherwise we ask you to seal it. thank you, your honor. >> do you have in questions before you go? >> no, ma'am. >> neil: all right. there you have it. alex murdaugh, a prominent south carolina lawyer. so you're only seeing him from the back. in south carolina, he's well known. comes from a legal family. more than 80 years in south carolina. this bond today set at $20,000 was for insurance fraud and charges that he was staging his own fascination, if you will, bark in september 4 when he hired a former client to shoot him so that his surviving son could get $10 million in insurance. you might recall that back in june his other son

i saw a very famous bond market geithner out bill gross saying bonds are trash. something is wrong here. tom: can we have confidence in the shift to equity or is it ephemeral? >> i think there is no other alternative. at least earnings are strong. you should be in equities and they may be a little too expensive. really, there is no other place and it's not in bonds. lisa: when you talk about yields to low and treasuries are garbage, i'm looking at the spreads. they are over benchmark rates and the lowest since july. we are seeing a huge it into treasuries every time yields bid up. what's the trigger here? you got international rates where they are and longer-term expectations, where is the shift that will trigger things into a new paradigm? >> this is not going to happen overnight and there is a reason why bond yields are so low which is the sheer weight of money. it's exacerbated by the fed pumping in $120 billion every month. the point is that that will stop at some point. i don't think tapering will stop this year but will stop next year. at that went, the mar

bond is finally back.ime to die" has its premiere, with daniel craig's last performance as bond, james bond. >> i'm incredibly proud of the work we've done, the movies we've made, and what we've achieved. it is tinged with some sadness, but it's ti to move on. >> hello, welcome to the program. nearly a month ago, the last of the u.s. troops withdrew from afghanistan. today, president biden's top military chiefs have been grilled about what went wrong. these officials spoke to the senate armed services committee, including lloyd austin, frank mckenzie, and the chairman of the joint chiefs of staff. secretary austen spoke first -- secretary austin spoke first. >> we need to consider some uncomfortable truths, that we didn't fully comprehend that the depth of corruption and poor leadership was in the senior ranks, that we didn't grasp the damaging effect of frequent and unexplained rotations by president ghani of his commanders, that we didn't anticipate the snowball fect caused by the deals that the taliban

police is watching yields on the bond market. -- lisa is watching yields on the bond market. that's the most interesting thing out there. jonathan: we have a flatter curve. i was looking at yields. tom: a bar conversation with lisa? jonathan: that would be awesome. lisa: and bears. jonathan: beers bonds and bears. there is a podcast for you and that step from new york this morning, good morning, this is bloomberg. ♪ ritika: democratic governor gavin newsom has turned back and ouster to get him out of office. democratic leaders have characterized the recall attempt as a power grab by supporters of former president trump. energy crunch in the u.k. got worse. they have shut down a major cable that brings power from france. electric supplies are already short in the u.k. and prices are at record highs. a driverless delivery service will be launched. it will be tried out in miami and austin. in macau, the top gaming company is worth $10 million in value. china wants to increase local shadowing of casino companies. chinese authorities have told lenders that struggling developers wi

the dollar bond, not so much.ard from "the wall street journal" earlier today that china is making preparations for evergrande's demise. there's something north of $600 million of interest payments due . what bugs me is how may times i have heard the name lehman. the starting point for everyone's exercise seems to be, is it systemic? is it lehman? move on. my concern is this is potentially a symptom for something developing. it is a conversation that is going to be with us for quite a while. lisa: that is where to get deep. that is the concern, how much this slows the chinese economy further in the lack of willingness to respond, if that reporting is accurate. we have been talking about the lack of understanding of who owns the bonds and equities for the dollar-denominated debt for the equities. this highlights the uncomfortable relationship china currently has with external investors, another big issue that has significant revocations. jonathan: equity futures up 25, advancing about 0.6%. we get to the bond marke

what is the difference between a you on bond and dollar -- yuan bond in dollar bond. >> the biggest differenceone is in china and one is a u.s. dollar. just overnight, we saw the fact that they did and off exchange settlement of 37 million. that was on the yuan bond. there's a lack of transparency surrounding what the exchange settlement was, maybe it was deferral of interest. but the real focus is on the market. we have $84 million on the dollar bond coming due. the difference in my mind between the bonds is that chinese corporate scum of course the property sector and ever grand, it was easier for them to go offshore and raise money in dollars. i think beijing pounced on that. tom: what is the current see relationships -- the currency relationships. they say wait it's fungible. >> it is fungible in many sense of the word, given that we have seen, the one would not be trading, -- the yuan would be trading hired and that. jonathan: we have important questions on how you price the dollar debt of a chinese company going forward. how do you understand it at the moment? damian: in ever grand i thi

we have just fyi another bond, fourth iteration to the bond program. we will continue to erode the deficit that have existed historically to responder facility and infrastructure. we're doing that each time out. let me do that with some highlights and accomplishments. the pump station two begins and not to go into any length here. the axe illary water of supply system. suppress any fires that occur and major fires that emerge. that station at the bottom of an aquatic park. we do not the major projects, we do a lot of smaller projects. enabling responders to reliably deploy. for the police we've done a number of projects that speak to this particular ambition we have from improving facilities. we have among major projects. the division project, that is a project for the police, both for the motorcycle police, known as the traffic company. the crime lab. the more appropriate is forensic service division. we're very happy to be associated with this very is important work that we deliver for the city. there are continuing projects. i don't want to take up

green bond? -- green bond as green as it looks?lix: this is bloomberg. ♪ ♪ alix: a second huge deal for conocophillips, agreeing to buy shall permian basin assets for $9.5 billion, making it one of the largest permian produces right now in the u.s. this comes a few months after conoco bought concho. now you have to add as much as 200,000 barrels of oil a day in 2022, which is what conoco thinks it can do with shall's -- with shell's assets. joining us now is ryan lance, conocophillips ceo. congratulations on the deal. it was reported that shell wanted to offload these assets because it was so expensive why now at this price? -- so expensive. why now at this price? ryan: i got a call about midyear saying we would be interested in looking at them. with the position we have developed, certainly we wanted to take a look at it. ultimately, it had the three things for our company. could we see clearly that we could add value to it, we can after the concho transaction and bringing our teams together. we see ways for significant value in t

they are ready to issue green bonds out a sovereign level. him on the side, he said we want to test the market more. it is test and see. the innovation on the green side will help. he does not seem overly concerned about a taper tantrum. tom: what a great interview and what a colorful character. and, what is coming up? manus: we are going to switch across, there is a host of delegations here. the african development bank. we also have the finance minister or nigeria. she will pop up and join me. and then later on -- this crew is ready to throw me in the nile --we will leave here and go to the prime minister. we will talk to the prime mr. about vaccine -- we will talk to the prime minister about vaccine production. the difficulty of getting vaccines all the way across africa and challenges therein. tom: some important issues with manus cranny on the ground. coming up, we have the latest on the markets. this is bloomberg. ♪ tom: this is "bloomberg daybreak: europe." i'm tom mackenzie. at midday u.k. time we have cpi figures and we will be watch

--. -- a bond tantrum. with qe provide some credibility for guidance. as long as the fed is buying bonds, investors seem to be willing to give the fed the benefit of the doubt when they say they won't raise interest rates. the challenge for the fed is to change the qe position, change the paper without starting the clock on tightening. it may not be the case the economy is robust enough to put your foot on the brakes. you want to take your foot off the gas in this world we are talking about. splitting tapering from tightening, changing how that clock has worked, creating credibility for former guidance. >> that's the goal, timing the objectives. thank you. at the top of the hour, the strategist will be joining us at 9:00 eastern time for the open. a conversation you do not want to miss. mandy thinks the risk that is underpriced is upside risk. upside is underappreciated with all the focus on the attention to downside risk we think they may be underpricing the right tail. that conversation coming up. >> on t

treasury bond. that is how i read it. alix: good to catch up.pine global chief macro strategist. bloomberg will have special coverage of the evergrande effect tonight at nine pulling 30 p.m. -- at 9:30 p.m.. this is bloomberg. ♪ alix: looking at the bond market in the u.s., you're seeing yields spike higher, but it is not us. it is you guys leaving the bond market right now. [laughter] guy: it is this bank of england story. the fed was a low but hawkish. the bank of england was more hawkish. -- was a little bit hawkish. bank of england was more hawkish. it has a lot to deal with. all of this is coming together. the pmi data today out of europe showing a significant impact in terms of the supply chain story into the economy. chris williamson, ihs chief business economist, is going to be joining us next. ning us next. >> the countdown is on in europe. this is "bloomberg markets: european close," with guy johnson and alix steel. ♪ guy: thursday the 23rd. dirty to the close. you are watching -- 30 to the close. you are watching "the european close."

david: speaking of down, the valuation bonds.tephen: we knew that ant, as it was being reshaped and restructured, possibly folded into a holding company by the pboc, we are seeing fidelity's valuation, a cornerstone inventor as well as carlyle group and others, fidelity's valuation of its and holdings at the end of june implies a total market cap of $78 billion. that is compared to in february, $144 billion and pre-ipo, $235 billion. that is a drop of 68%. rishaad: quite extraordinary. stephen engle, thank you. david: let's continue our political conversation with former australian minister kevin rudd, who says behind beijing crackdown lies president xi jinping's hopes to retain power. he spoke with our editorial director, andrew brown. >> the tech sector has different reputations in china. it is obviously the epicenter of china's on gig economy. but also the epicenter of what is called in china, 996, where you work nine hours a day -- work 12 hours a day, from 9:00 to 9:00, six days a week. 996. frankly, that delivers me a lousy

the bond market does not like it.china, we need to see at the moment, all these energy crunches and things like that are going to have an impact on prices. i think the bond market is looking at those two forces. to what extent will growth weaken and inflation rise? >> i have to ask you in terms of what this means because it seems like right now china is very serious about doubling down on raining in debt. and raining in carbon emissions as well. at what cost? what is the pain threshold china has and how comfortable are they with a cooling economy? what sort of growth are they still able to be ok with to pursue this campaign? >> i think that is really the question many of us are wondering. i am a bit surprised the local governments are enforcing the production cuts at times we'll see growth is going to weaken quite a bit. come the september data, come the october data, they are going to put things together and coordinate things and say we have gone too far and we need to not exactly start prioritizing growth but we nee

i _ bond, james bond. definitely it is a mixture of feelings. i am _ bond, james bond. we have achieved and of course it is tinged _ have achieved and of course it is tinged with some sadness, but it is time to— tinged with some sadness, but it is time to move on. lots coming up, but we are going to start with russia. russia has reported its highest ever daily conversant death toll since the start of the pandemic, with more than 850 fatalities recorded in the past 24 hours. according to official figures since mid—july, close to 800 people have died each day and these numbers almost certainly under counted. the spike is being blamed on the low uptake of vaccines, just a 28% of the population has received the vaccine despite it being made mandatory this summer. and research showed 62% of people in russia do not want the vaccine. this is also despite russia becoming the first country in the world back in august 2028 to approve a covid—19 vaccine. its very own at sputnik v. let's go to moscow and hear from the bbc�*s richard galpin. the situation is serious. russia hasjust

and then of course, bonds.ds are extremely vulnerable in my judgment, even with rates having moved up over 10 basis points. yields are still extremely low relative to inflation and even assuming some inflation dissipates because some of it is transitory, it will still be a lot higher than yields on 10 year bonds, so investors are locking up low yield, negative yields, negative returns after inflation. there is a lot more room on the upside for infrastructure. shery: the moves today were really interesting but down the line, if you have more global central banks starting to tighten, when will rising yields become a problem for the broader stockmarket market level, especially when you just are comparing the relative valuation side of things? charles: tough question. there is no doubt that the u.s. rates benefited from the fact that interest rates overseas are the. a lot of foreign capital moved into the united dates because they can pick up a lot of yield. so when foreign rates move out, that is a problem for u.s

it is a bond the -- it is about the bond markets. tom: it is absolutely fascinating. you mentioned bonds. i will let you talk about this with lisa. look at oil. jonathan: on fives, looking at 1%. lisa: this is a question of are we seeing the beginning or is this the end in terms of a response to a global withdraw of pandemic era stimulus. how much will this continue, with five-year notes in particular? jonathan: we have to talk about the german election. the euro weaker by .2%, a break at 117. here is the quote, europe needs a huge rebalancing between fiscal and monetary policy before the euro has any chance of moving sustainably above 122 and a broad-based coalition is unlikely to deliver it. tom: it is absolutely amazing. to the idea, these are markets recalibrating and some of it is the politics of germany, but it is the real yield market where you look at the litmus paper of the negative yields. it is not a breakout but a lesser negative yield pressure. jonathan: how this will any tightening be? tom: i would look at the belly of the curve as we did this weekend. i

paul: let's talk about the bond selloff. the bank of england indicating that it ends the qe program at the end of the year. it will be very interesting. u.s. yields surged to 143. interestingly, the threshold that morgan stanley nominated for triggering what it calls hedging will prompt even more, sherry. shery: very technical words. we are watching them closely as we continue to watch evergrande because we have seen more optimism about the economy. the central bank rate hikes coming but evergrande has been that sore point. this week, with concerns easing a little bit about what evergrande might do, about whether regulators would step in, that has helped market sentiment but when i read the headlines and what regulators are telling evergrande and what bloomberg has learned, i really don't see that big of a difference because there is no indication that regulators are offering any financial support. i do want to hear more about this from steve and we will be talking to him shortly. paul: exquisite timing because today is also

story, it's a global bond story.u'll see this constant form of demand because treasuries continue to look attractive for foreign investors. >> all right so we'll get the tease for the taper, maybe the dots coming forward, flattening the yield curve a little bit but still a good setup in the long run i hope that's an accurate synopsis of what we've just heard. thank you all for your time, it's great to have you >>> still ahead, volkswagen's truck unit is the latest automaker to warn about tight supply thanks to the ongoing chip shortage. we'll speak with the former president of intel about how to solve it next. >>> it's hispanic heritage month. all month long we're spotlighting cnbc contributors, business leaders and our own employees. here's oscar munoz former united airlines ceo >>> the way to build latino leaders, you have to specifically focus on the recruitment of the talent and then the professional development. and then while inside the company, making them feel like they have value and they have equal access t

the new bond market tantrum. yes, the fed must tighten first, that's what you are used to happening, that's what every model has -- no. the bank of england, two year yields, bang. a new bond market tantrum, but not in treasury. a big move but nothing compared to both of the long end of the u.k. curve and the short end. bank of america, deutsche bank both calling rate hikes in the u.k. by february of next year. dani: it is so wild. if i were to ask you a couple of weeks ago when do we see this big move in bonds kick off, i don't think you or i would have said the day after the fed decision. it is significant you have central banks on the periphery really leading the charge and having an impact, moving rates higher from here. manus: absolutely. i leave you with this -- yes, we work on a sunday -- a guest said i will put in context, you're talking about $10 billion per month. the bond market is have a trillion a day in terms of turnover. i put it to you, it is not the size of the number, it is the sentiment. how are

there's the dollar bond, $86 million in dollar bond coupons tomorrow. i guess the only thing is there is a 30 day grace period before the bond can be declared to be in default. obviously through the rest of the year, there is $550 million of coupon debt that is due. even if we get past thursday, we will see what happens, there is quite a lot of the same situation again. mark: it is a lot of money but it is quite small relative to liabilities. one thing we have seen with the market impact, i'm curious how much it is expected to weigh on the economy. how priced is the economic impact of an evergrande bankruptcy? >> the effects will be on banks and lenders to the company. the expectation is there is not going to be a huge impact on employment and construction because the government will step in and make sure construction continues on the 1.4 million apartments they have sold. if they do not build the apartments they promised to build, there's going to be a lot of angry people. the expectation is somebody, whether it is other private real estate companies,

to the bond markets, quick question. do you think treasury yields are on the quarter given how it feels? there of five basis points. does it feel like we are only up five basis points on the quarter? tom: you mentioned it is the volatility. jonathan: unchanged on the day. was that your impression of me? that was quality. no one thinks that i speak like that. a bit of sterling strength, some real sterling weakness, tom. this one is getting harder to read. that is the point coming from jordan rochester. tom: let's start the show. this is important. we are starting now. what is prime minister johnson want? does he want a weak sterling or a strong sterling? jonathan: given where the inflation numbers are and the issues with energy, i imagine they want a stable one. is that ok? i imagine the government would like a stable currency and they don't want any more hikes to interest rates. michelle is talking about christmas in september. let's get there. it is september, you want to do christmas in september? tom: michelle meyer,

green bonds and spain's, eu green bonds and spanish green bonds, are natural complements.e mature, more liquid, and this was why we were able to achieve this greenium. maria: you don't see competition feeding into that. but i do wonder, in terms of the spanish treasury for the remaining, i believe more? are you going to keep track on the plan that you already announced or is there anything in the pipeline? pablo: we are 80% funded in the year, so we are in a very comfortable position in terms of issuance. it is time to deliver on the plan that we have designed for spanish growth. we have to implement the reforms, and actor the reforms, execute -- enact the reforms, execute, and grow sustainably. spain has the will to go, the means to grow to -- the will to grow, the means to grow and we have a detailed roadmap to do so. maria: would you say investor focus from now on, given that you have a plan, you have the money, you are financed, will be on implementation, especially of european money? is that what you hear from investors? pablo: yes, we will be looking closely at how e

evergrande suspending trading of offshore bonds. containment fears, chinese authorities warning lenders. china markets -- what are we looking at next? a car crash in slow motion. lost about 26% on the share price so far this week. >> the stock is also incredibly hard to trade. the spread is very wide. even though we see slumps again today, we are holding the stock. it is getting costly to come out of that. the bond hall today was interesting. it came after a debt -- rating downgrade. that looks like it is very low risk, when you consider the ratings for the offshore dollar bond. talking to my colleague, he said only 0.2% of all bonds in china are rated a. so that makes -- that puts evergrande among those in the riskiest issuers in china. so we are getting that today. trading will resume tomorrow. the last time this domestic rating agency downgraded the bonds, we saw multiple trading holds anyway, because there is so much volatility. there is a way to protect investors. it could be a very volatile day tomorrow. yvonne: talk about pro

they are the muni bonds, treasury bonds, all that sort of stuff. they own all of that. so the government and the bottom. 99 percent. oh that the top point one percent. all this money and they're paying more and more of their income to them. and they're gaining more buying more assets. but also that capital that's going from the bottom to them is obviously a sucking sound causing deflation for the vast majority. not for that top point one percent, which is enjoying a very high inflation rates in their assets are right. the, the way the us government funded is through the issuance of treasury bonds and they pay the interest on those bonds by collecting taxes. who owns most of those bonds, if not virtually all those bonds, the top 110th of one percent. so the government simply becomes a pastor mechanism for people to pay money from their pockets through something called taxes that are just a fig leaf that hides the transmission mechanism of your money through the government, into those who own these bonds. and because they own so many of these bonds, the interest rates ava

walmart, $7 billion could hit $8 billion of bonds and its first green bond.s notable to me about this is obviously, low rates are encouraging the borrowing. these are not companies that need to borrow in the sense that many of them are cash rich. some of the companies like apple tapping the bond market. we could see rates go higher. this could be the story of reaping what you can before the story changes. matt: what's interesting to me is the green aspect of not just walmart, but a lot of the debt issuance we are seeing. michael tobin and another road story on the bloomberg -- wrote a story on the bloomberg about lending corporate some esg credit for a price. helping them sell that -- debt that is sold as esg. there aren't necessarily incentives there, i recommend viewers check it out. amanda: a shoot trend. we know that companies will capitalize on it. -- it's a huge trend. what makes one bond green versus another, there is obviously a willingness to buy into the concept. matt: if you're skeptical, you're not the only one. coming up, ray dalio says don't mis

i think it is the best bond performance of all of them ever given in a bond movie.cting than any have done before. he digs really deep emotionally to finish his five films, his 16 year tenure as bond. the surprises are not whizbang car chases, although they are there just to reassure you, but really the emotional twists and turns of his relationship past and present that we are examining. there are some really big surprises, which some of you may hear about before the movie. you won't hear them for me, as a professional critic, i won't spoil it but they will stun you. bond is the sort of thing you have been to with your dad, and you would take your children to. even the royal family turned up, prince william had to bring his dad along! i have to book my ticket, i am a big bond fan. roger moore was my favourite, but we have plenty of time for daniel craig. goodbye. hello there. after the heavy rain and brisk winds that affected most parts of the uk during tuesday, wednesday gives something of a chance to draw breath — certainly a drier, brighter day in prospect with

we have got bonds and stocks covered in this segment. tony, as you said it in your note, never feels -- everybody calls for a healthy and normal correction and never feels that way going through it the nasdaq is off 5.25% from the highs. is it healthy and normal >> i think it is and some evidence of of that is jim paulsen covered this this is an offensive tape on a relative performance basis i think it's so important to define quote/unquote the market. if you define the market as the s&p 500 it is driven by the mega cap theme throughout the summer and everything else was suffering. you can use the index and the nyse advance decline line. the russell 2000 the mid caps in other words, it really has been a broad, i don't want to say pullback, consolidation, correction period. now the mega cap stocks are catching up to that theme. remember, the s&p was down about 5% a week ago into that monday move we're nowhere near having the same number of stocks pulling back to the same degree as last monday last monday we had i think at the close 8% of

i think bonds do ok, corporate credit.will not be great, so i want to watch closely anyone who could be under scrutiny on the corporate side. they could be in trouble. anything where the sec might start regulating. i think we all ignored the attacks on facebook but that could become more frequent. jonathan: it is not an overall reduction, to be clear, but the compositional shift? peter: definitely, and anything that is domestic focused, i continue to like that. i think the china supply demand problems will be an issue. not heavy manufacturing, but the logistics around that, those companies should do well as we see this shift. lisa: what does that mean for yields? peter coy -- peter: i think we continue to see the taper -- lisa: you set the people are convinced that the fed will not hike? peter: i think the conversation is turning to what happens if we get a downturn and we are at zero? i hope that never happens, but the fiscal stimulus will be driving by yields. if it looks like we get a decent package, yields could rise,

, james bond. >> reporter: is bond.is something that, you know, people cherish. >> i've known that since day one and you don't step into something like this without kind of thinking that through a little bit. the wait of expectation, of people's passions and how close to people's hearts this is. >> reporter: rami malek plays a dark take on the classic bond villain. >> willing to kill the person you love most. >> what daniel has done for me, he's my bond, so to be able to go toe to toe with that man is a unique experience that i'll never forget. >> reporter: the film's stars like jeffrey wright and phoebe waller bridge all dazzling in their bond best, and fresh off her met gala red carpet debut, billie eilish who co-wrote the title bond theme. ♪ you're no longer my concern ♪ >> reporter: she says the opportunity was a dream come true. >> definitely scary and definitely like feels unworthy want icndbritish. be outside of the box of the usual, i guess, and still be chosen and it's still to this day like insane to me. >> re

this is the bond market, 2, 5, and 10.t is fashionable to talk about 10, sometimes you might talk about two or 30. lisa: high-fashion. jonathan: your five year yield, the belly of the curve, we have added some weight to the belly. low 60's in early august, down about three basis points this morning, but we've seen a big move. i want to bring in darrell cronk. darrell, is that where this rate hike dance is playing out, in the belly of the curve? i think you nailed it. -- darrell: today, 92 basis points on the five, that's a big move. you are pricing in global central banks, not just the fed on a tighter path. the ecb is curbing their purchases. the boe wants to raise rates and we could see some el -- dm banks raising rates again. what should not be lost on investors is the bond yield curve has not billed in much for inflation expectations. so as inflation remains stickier and we go further out, it will have to do that over time. typically, that is on the long side, but we are seeing it earlier at the belly. lisa: is it over

seeing a local likelihood -- seeing a low likelihood of bonds. likely for bond refinancing. i want to get to the point you were making. this is -- authorities stress testing the system. what a way to do it if that is true. >> let's put context here. we see the authorities engaging in what might politely called squeeze and ease. rishaad: until the pits came out. >> imbalances and disruptions, problems in the economy. particularly the financial system over the last two or three years, we see companies experiencing some kind of default. authorities then manage the problem. that is what we have seen in the property sector. three red lines that clearly impacted some of these more leveraged company's abilities to gain access to liquidity. we have seen a run of defaults in the sector. i have seen that will continue. where there are even some systemic importance, such as evergrande, we see the ability to step in. it is a difficult time, but my point was when you have trend above growth, it is better to carry out these types of exercises. so there is a small cushion, a window of oppo

to a certain extent, the bond _ advance. to a certain extent, the bond market _ advance.rket has - advance. to a certain extent, the bond market has not i advance. to a certain extent, | the bond market has not been reacting to negatively this time, despite the bond purchase programme being wound down. i think it's being stressed a lot that interest rate rises has nothing to do with the bond wishes programme. you learn from the lotion of 2013 temper tantrum that markets can get very nervous. and ending market expectation of interest rates being at very low levels. the gradual wind down of the bond pressure programme. because the labour market is very strong, there are jobs for basically everyone for the labour market and unemployed, so they will have a hard job opening, inflation still running at high levels, so i think the market will be very keen to hear how they can balance that inflation story versus the bond purchase programme. we story versus the bond purchase programme-— programme. we will talk to aaain programme. we will talk to again sure. _ programme. we will ta

we could see that rally in bonds.n the other hand, if that yield curve is confirming a view that it's an economy under pressure, a prolonged pandemic. you have things like airline prices and hotels not performing as well. in terms of the global picture, u.k. inflation figures in less than an hour. we are expecting those to reverse in july and move significantly higher. a lot of that is due to base effects. last august, support for the hospitality sector. that should result in higher prices. manus: -- tom: dani burger is back. thank you very much, breaking down the inflation dynamics and the read across to the space. apple putting camera center stage at the latest product launch. they introduced the iphone 13 as well as an update of the flagship pro. here is mac blood some. what stood out for you for this product launch? matt: it was quite vanilla, to be honest. incremental updates. no game changing new device. there's a couple things missing. some people anticipated an update to the headphones. some people expecting t