it's been leveraged with some bond money. we will not get bond money unless this bond is passed. we look forward to working with you all to increase the bond. thank you so much. >> president buell: thank you. >> clerk: next speaker. >> good afternoon, commissioners. drew becker, c.e.o. of san francisco parks alliance. apologies for my tardiness, coming from the south bay and i'm suburb-illiterate and not sure how long it takes to get back sometimes. apologies. i want to speak on behalf of the 2019 bond. i'm going to speak in sort of a bigger picture. i represent 230 friends of parks groups in the city and all of them have needs. a parks bond in its current state that has been said is not enough in order to make -- in order to make it one of the top five best park departments in the country sustain that ranking and we need investment year-round and sustained. and it needs to be -- and things are getting so expensive here and it's something that we can't overlook, that $150 million does not do it anymore. as you hear from all of our partners and all of our friends in the audience,

most of the bonds are very secure.ere's almost no risk of default, so they're appropriate for, you know, youchild's college account or your grandmother'retirement account. an sullivan: bonds are i.o.us. people buy them they get paid back later with interest. and municipal bonds are a common way states and citiesne raise mothey need. it's become a huge market-- $3.8 trillion last year. and because puerto rico isn't a state, it has a special advantage in selling its bonds. >> a new yorker can't buy a california bond and exempt the tax.o puerto rn sell their bonds all across america and everybody gets tax exemption on the interest. >> sullivan: does that make puerto rican bonds very attractive? >> highly attractive. >> sullivan: attractive to investors for their tax ts, and they were relatively safe. and also attractive to banks, which put the deals together. and then sl the bonds to investors, like pensions and mutual funds. >> fund managers, they will not adot this now, but when pue rico was selling debt like pancakes,

through two separate bond sales in the 2018 bonds consisting of one subset -- one subseries of bonds. >> i will have the presentation as part of your packet. >> ok. vice president courtney and commissioners, i am the a.g.m. of the s.f. p.u.c. the item before you is the approval of the authorization of up to $675 million of wastewater revenue bonds. may we have the slides, please. slides, please. ok. thank you. here we go. in the presentation about this authorization of debt, i wanted to talk about three particular things. one is the review of the 2018 capital financing plan that we put before you in september. we will talk about the strategies we have been pursuing for the financing of the capital plan for the wastewater enterprise. and that we will get into the detail on this particular instruments of revenue bonds. here we have a presentation, a chart we put before you in september of last year which was our capital financing plan for all of the enterprises and it was particularly ambitious. we have been executing accordingly. you authorize the issuance of new money water revenue b

>> a loan, and, "you invest that omoney in more bonds, pue rican bonds, and then..." >> to buy more bonds> buy more. >> sullivan: and buy more bonds. an that's right, and i said, "i don't think iandle that. let's go to half a million." >> sullivan: what were thoughts when he proposed this idea to you? >> that this is something unique. isreally made it for my retirement, and s great. >> sullin: what ram lamba says he didn't know is that u.b.s. had invested his money into special bond funds that were riskier than what's allowed on the mainland. and, that inside the bank, concer were growing that those funds were in trouble, yet u.b.s. kept pressing brokers to sell them... >> there was some hardline tactics to sell the funds. you know, like, "go out and get them. let's go. you got to sell these funds." they were just trying to push the bond funds to whoe whoever had a heartbeat.ar orns honking) >> sullivan: capacete says he t wind of a secret trick some brokers had devised to boost bond sales and skirt bank policies. it involved loans. >> one day this client comes up to me and tells me, "hey

however, i don't want to make it sound like i'm poopooing bonds all together there's a place for bondsyour portfolio an essential place especially as you get older. here's the crux of the issue though even though i believe stocks are the best way for you to grow capital over the long-term, even in moments when treasury yields are at historically low levels, stock and bond investing are about two different things stocks you use for capital appreciation meaning turn your money into all money bonds are about capital preservation and protect your money and give you a nice and steady albeit small return to offset inflation for the most part you invest your money. stocks to generate even greater wealth you invest in bonds to protect your wealth you can't afford to lose which brings me to the generational aspect of this question there's a huge difference in how you should approach the idea of putting your money into bonds. when you're young, investing is about taking risks i've explained how people in their 20s and 30s can get away with that attitude you've got the rest of your life to make b

an issue of liability is very, very important as well, but conceptually the bond and support of the bond in terms of what we want to accomplish in the city and county of san francisco and in terms of the desire of the japanese-american community in our 110-year survival to be part of the fabric of san francisco and our neighborhoods. thank you very much. >> president buell: thank you very much. >> clerk: next speaker, please. >> good afternoon. my name is carol ito. president buell, directors and director ginsburg, i'm here to have a strong voice to support this obligation bond. i want to thank you for placing a priority on the peace plaza, which is an icon for the city and a symbol of peace and we need that very badly in our country and our city. it's extremely symbolic. but i also bring some history to this. i was on the first japantown task force 25 years ago. i want you to be mindful as you proceed, and hopefully this bond will be successful next year, that the management of the very precious money be overseen and balanced well by staff and by you, the commissioners, for oversight. t

do they know about this bond policy? >> so i spoke to a group of asylum speakers on the bridge, t one legal entry points in laredo, and they were waiting on the mexican side of th border to enter the united states. and for the most part, these were families with young children, with their suitcases brcamped out on age, sometimes for hours and often days waiting forerntry. theynot aware of these policies. they were not aware that under president trump their chances oe beinined and not released were significantly higher than they were under obama, they were not aware that once they were in detention the principle way to get out is this bond process, d although the minimum 1,500, we are now seeing bonds that are significantly higher. so they are not aware. >> desjardins: daniel bush, important reng, thank you for joining us. >> thao you, i will san anto >> desjardins: to read dan bush's reporting froe u.s./mexico border, visit www.pbs.org/newshour. >> desjardins: president trump announced on twitter today thati he wants sra

bonds.ook, i know the bond market boring as all get out, but it's much larger than the stock market and it's very important to the overall direction of stocks. back in the day when i was run my own hedge fund, i'd always call in from the road the same way. if i had to call from my own desk, i'd begin every conversation by asking where are the bonds. stock market investors seemingly forget the bond market all the time they forgot in 2000 even though the bond market was softening right near the .com peak it was clear that interest rates on cash were far too competitive versus stocks. and would this cause a massive sell-off they forgot it when the fed raised rates 17 times and led up to the financial crisis, precipitating the worst downturn since the great recession. there were tantrums where some will strike a hawkish tone and everyone freaks out that rates are headed much higher morerecently a schizophrenic relationship with bonds when the yield on the ten-year treasury started breaking above

james bond the james bond museum in a mountain in austria. a journey starts with a cable car through the clouds emerging onto a mountaintop through a doorway cut into the rock and you've entered the world of james bond. the british super spy who survived decades of near death experiences and dispatched one hundred fifty villains over twenty four films. seven elements is less of a museum more of a cinematic experience during visitors into different rooms dedicated to the music the gadgets and the exotic locations that make the james bond franchise the longest running of all time so. this mountain is where some of specter the latest film is shot the ice cube restaurant doubles as the hof the clinic and the road below is where the car chase happens the museum has been designed to feel like a filmic journey we designed spaces to feel like. we wanted to kind of the journey of our guests. on the structure of the movie from the darkness to drama to rest by you know throughout the whole experience the setting is utterly modern but the original charac

the bonds were down. what you see is the s&p 500 financial sector, the strongest part of the market, up better than 1%. the nasdaq 500 getting a bump, except given the fact that you probably would have a lower market. let's go to the big movers. stocks.t the middle two hasbro had very strong earnings. are sayingalysts investors should not worry about the collapse of its key rival, toys "r" us. it looks like they heated that advice -- heeded that advice. ist you see with amazon reducing its much bigger loss. it was caught in the bull's-eye of trump's. he is concerned about the washington post, co-owned by the ceo and founder, jeff bezos, talking about antitrust issues which concerned investors. fascinating story about papa john's founder, ousted for improper remarks, trying to buy his way back into the company. they are talking about poison pill. very exciting stuff. the stock down in a big way. let's go to tesla. the other dramatic story. it has been a rough ride for tesla. year-to-date, it is down in a b

when they do happen, these bonds -- the bonds and loans were at a premium at the beginning of the year. we are down 80 and 40 points. >> you bring up an important story. that is not the only one out there. we had toys "r" us in september rolling over. would you look at things of the moment, as is a market that is adequately pricing risk? -- we areket has definitely experiencing a tightening of domestic financial conditions. it is going to continue. it is highly unlikely the fed is going to pull back anytime soon. they're are going to meet expectations in september. global financial conditions are tightening, u.s. conditions are tightening, it is going to create some growth pressure and that is what i think you will see some of the cracks show up in more leverage markets. >> you sound more defensive. priya? >> i think risk premium is rising. we are in an environment where liquidity is not great. you have to pick your spot, that becomes important. when we had qe and cash it was this rising tide that lifted every boat. that is gone, i agree with bob. as financial conditions tighten you ha

let's take the adventures never with james bond. or whatever adventure he's on we know that he likes to drink martini but i wonder if he's ever tried the aniseed liquor is to grease what jane is to the brits each year there's a festival house to celebrate the drink on one of the small east and greek islands called les pauls the capital of time ari is where everyone flocks to try the very many different versions of the national drink every third bottle distributed around the world comes from less cost and at this time of year it's a great place to be because the greeks believe there is a symbol of a happy at home in the. festival is held every year in pomery on the island of less posts an honor of a drink not any old drink but greece's national beverage an aperitif that tastes of anise. a shot of is usually taken with a little water to make a milky suspension people come from far and wide to sample the different distilleries at the festival. give you more life. make you. forget all your problems. bring the people who give a damn thin

the question now becomes is it time to buy bonds? the leverage loan market is getting hotter but for how much longer? china's junk market starting to crack. we start with a big issue, the rising global trade tensions. that tale of risk is getting fatter and fatter as we go along. so far, the chinese have shown no interest in backing down. neither does donald trump. >> i don't think we need to be hitting the panic button quite yet but we have moved a lot closer to it, no question. >> until we see a compromise on the chinese side but also the u.s. side there is a real concern it will get worse from here. >> the whole situation with china and the u.s. is very critical, particularly for china. can gete the situation worse. trump will not given. discussions, the biggest issue on the table was trade tensions. given the multiple channels through which protection measures affect economies, it should be clear monetary policy is ill suited to counteract all of their effects. >> if you are worried about this renewal volatility we have seen, the

that comes from the maturing bonds. there was some confusion when it comes to translating what mario draghi meant when he said it would be no rate increases through the summer. that might be until the summer, depending on whether you speak french, german come or english. busy earnings day, very busy finally getting investors to share buybacks they have been demanding even as profits fell short. choosing to focus on that. $25,000 starting a .everses the vestry shell management has been resisting buybacks but crude has risen for three-year high cash flow surging with company has made further progress in paying down its borrowings from that big purchase. airbus second quarter profit doubling, accelerating neoveries and the a320 following delays of the model to engine providers. they've been beating estimates and while the own delivery surpassed those for the original a320 model in the second quarter, media target of 800 and over spent ross airbus is full aircraft lineup this year, as a whole, he remains challenging. shares

bonds. and i will present the wifia and legal structure. going to click through all the checked boxes here. here we are. here's our capital financing plan, which way first shared with you one year ago last year in september. as you can see, it's been a very busy year in terms of capital financing efforts. and the wifia loan is the last item on the list. we are working on the capital financing plan for the current fiscal year '19 and we'll share that with you in september. staff has been developing a capital financing plan to fund wastewater's large capital program, including the ssip in a measured way to mitigate the upward pressure on sewer rates and charges. so actively managing our capital financing costs is very important. and the points that are noted here is what we look at all the time. we look for opportunities to refund our outstanding debt we're a leader in the issuance of green bonds, with being able to attract a larger investor base. through the latest bond you approved at the la

james bond doesn't get this. james bond is a hustler. not james bond. ian fleming was much closer to like blowfeld or hugo drachts. those guys have lot of leisure time spending time in hammocks, spending time thinking about how to take over the world. a lot of down time in world domination. bond was a working class. it's what i've been missing. >>> all right. where's my cocktail? >>> hate can't keep protestors off the streets as thousands of people march against trump's immigration policy. >>> plus, rescuers are picking up the pace in thailand as they zero in on where the missing football team might be trapped. >>> andrance and uroguay send the world's two biggest teams packing. >>> welcome to our viewers in the united states and around the world, i'm anna coren, "cnn newsroom" starts right now. >>> thousands of americans are calling for an end to the government's zero tolerance immigration policy. well, tha

and they posted bond for jenny gonzalez. her bond was set at $7500.ng bond enabled her to walk out of that detention center in eloy, arizona. but she still needed help getting to her kids, who, again, were clear across the country. they moved them all the way to new york. ms. gonzalez was released from detention without any id of any kind. without any i.d. you can't get on a flight. so these people who had reached out without knowing her, they worried that she would be vulnerable all over again to immigration or law enforcement if she tried to make the trip by flight but even by bus. they ended up coordinating a nine-person cross-country driving relay to drive jenny gonzalez from eloy, arizona, to new york over the course of four days. just about an hour ago, she finally arrived. she made with it a crowd of supporters gathered to greet her. because of the rules, her kids will still have to spend nights in foster care. until a family member can sponsor them. she got there too late to see them tonight but she hopes to see them tomorrow morning at the ca

there is buzz in the bond market. greece is back. this is bloomberg "real yield." ♪ lisa: i am lisa abramowicz. this is bloomberg "real yield." i want to head to the auction block, the u.s. treasury department auctioned off nearly $200 billion this week. first we focus on the $33 billion sale of three-year notes, which drew the smallest bid to cover ratio since 2009. primary dealers also took the greatest share since 2014. in the 10-year sales, $22 billion were sold with a yield of 2.859% with a bid to cover ratio at the lowest level since may. primary dealers have the smallest share since january. over in greece, investors are warming up to the prospect of a return to debt markets. an example is the nation's biggest corporate borrower, attracting more than 1.8 billion euros of investor orders for its 400 million euros sale, of four-year notes. still with me is oksana aronov, of jpmorgan asset management. joe higgins, and matt toms. there does still seem to be very much a search for yield. it has been risk on. there was a story that

market from here in australia to even chinese bonds? think this is of the big fund managers are off on their yacht from their beaches and people are playing games with -- at the moment. essentially what the bank of japan is doing is the ultimate retirement job. they're not going to have to change policy for a considerable period of time. if you look at c.p.i., however you dice that up, it is still very, very low and the banker is going to have to cut its forecasts. then you're saying yes, but is this sustainable? the amount of eight, 10-year bonds that the bank holds hasn't changed since the beginning of 2017 so buying is pretty sustainable. is it hurting their willingness to legend? if you look at willingness to lend and you have numbers going back to 1974. every quarter in which they're the most willing to legend is the current quarter. so the suggestion that they're not lending because of this is quite ridiculous. essentially, does that change your view on things like financial stocks in japan or change your view of the yen, which ha

high-yield bond market.n though people continue to say that the economics are solid. >> it depends. trade battle gets out of control, which i do not think it will -- i think there will be a resolution -- that if a mistake is made and you are playing a very high-stakes game right now, if a mistake is made that it will get very ugly for market. jonathan: joining me around the table is priya misra, head of global rates strategy at td securities, bob miller from blackrock fixed income, and aling to us from texas, mark qaeda, co-cio of howland capital management. thank you for joining us. talk about the concept of decoupling, whether the united states can do that and whether that is what we are seeing. okada. --mak >> priya: i think growth can somewhat decouple. equity markets don't really decouple. the long ends of the bonds don't decouple. global bond yields are declining. the 10 year german yield is up 30 basis points, that is great. the spread can only widen so much. i think the front end can somewhat decoupl

people are cautious on bonds right now.isten to what she told bloomberg television earlier today. >> there has artie been a rise in interest rates at the intermediate and long end. yieldattening of the curve has not been good for fixed income portfolio investors unless they have been very careful and cautious, trading around him looking for opportunities in credit. i think it will be increasingly difficult for fixed income investors to do well. >> bank of japan meeting next week. speculation they will tweet their policy. another thing pushing up global bond yields. the two-year treasury note auction went well. after the longest in two-year note yields in three decades, people are seeing value there. a measure of demand rose at that auction today. yvonne: thank you. joining us now is ubs asset management. he joins us here in hong kong. speculation of the boj tweaking policy. you see the yield rising from seven basis points. that? -- significant is >> it is a real surprise. the economic numbers in the backdrop have been quite

this could be major for global bond markets in terms of what the yen is doing and the bond market, already themselves as though to -- as though the tweak is very much expected. certainly very much expected and the fact that the boj did not come into by more bonds to maybe cap down the recent increase is something. i think at the least he will on, the bankgoing of japan doesn't seem to be shutting the door on this move. a lot of people are wondering if the bank of japan is ready to take this very big step. we shall see, but for now, what we saw is the 10 year jgb --ding as high as zero point 05%, the highest in one year. this is cap during many people that -- catching many people's opinion -- catching many people's attention. this chart was up before the boj didn't move. you can see where the yield is now, definitely moving higher, the 10 year treasury note in the u.s. also a bit higher. we will see if this catches fire as it did a couple of days ago. the question about a policy tweak is very interesting. in fact, what with the tweak be? it would be possibly saying something along the lines

corporate bonds and junk bonds. there are concerns now about what is going on. that concern up with the people you're talking to, or do they think it is a storm that is going to pass? there are definitely concerns about the currency right now but there is no panic. concerned for those depreciation's. everybody is watching the currency very closely. but i do not think there are a lot of short trades, four people who were not just trying to push the yuan weaker. a lot of hedge funds and traders have learned from 2015. they know if the pboc does not support the yuan, the pboc can just offload the dollar and stabilize pretty easily. even know there are concerns, there is not much. kathleen: thank you so much for joining us. we will continue our later on daybreak asia. haidi: coming up next, who will be the first to the table after japan approves casino resorts? we will look at what has been a controversial this is an. this is bloomberg. ♪ this is bloomberg. ♪ haidi: this is daybreak asia. kathleen: our next guest things china is likely to offer a deal over additiona

yields. -- rise in global bond yields.ion of whether japan will tinker with its policy when it meets next week. how much of this is market participants creating a bit of activity during what is seasonally a pretty quiet time of year? forward?ou see going tweakect the boj to maybe things around the edges of currency control. manjesh: if you look at the official stance, it does not look like anything has changed. said, the local participants, traders around the world, will look at a certain probability something will change. maybe not in the next meeting, that over the next 6-8 months -- but over the next 6-8 months. in terms of the impact on u.s. treasuries, german bunds, thatw drive the benchmark pricing for the global credit market. behavior ofaffect the local japanese corporations and retail. how will they be putting their money back into the domestic market? will that have any meaningful spike? $2.5 trillion of bonds held by japanese funds. a massive liquidity shift. manjesh, thank you so much. aming up, is expected to

is the bond markets and the equities are little bit flatter. is the slow mo credit crunch taking place and he put up the new levels. there is the flattening of the yield curve and you have seen this higher and it will continue. there is the flattening of the yield curve and this will continue down lower with the rating coming through. you mentioned this and we have the whole story. we had that risk in the market. and thatthe pricing she one >> it comes better than expected and reinforces the hawkish via. man no and what does he have to offer us? that and we have no doubt on what we can expect from trump entrÉe. let's get the update. >> thank you. the rejection by the chief negotiator. david davis has written and said that the new idea on how the customs should work is not workable. looking to reach an agreement on the relationship. some policymakers are said to be uneasy that they are not betting on an interest hike and sources tell bloomberg that a movie is in the cards for september october next year. this climbs from 70 in the report. the u.

bonds. not that much duration for sale. for now, it's been pretty plain to say that bond markets, in terms of yields staying low and prices staying high, the thing that will happen in the september is we will get a confluence of more negative events. issuance will the come back at a time when qe is going to diminish, but also we are going to have higher inflation prince again. we seen this at the beginning of the rise in inflation, but we will get inflation prints in the core. we will have more economic data on the upside, and i think therefore is in the beginning of autumn that we are going to see markets face bond markets face a real challenge to keep low yields in place. matt: we're going to keep you with us. we have a lot to talk about. global head of rate strategy at bnp. want to take a look at the world map terminal to see how things are shaping up. not really a lot of movement and markets on this monday. we do see this spain rising of bit, as- spain rising a is germany. we see france

itin terms of global bond, will have a spillover impact in terms of the global bond market.ch in valuations, we think it is valuations. a lot of japanese inflows are expected to go into jgb's, because they are hedging costs. we think there's some room for it to go deeper. >> speculation about etf purchases, buying etf's weighted toward the topix. are you expecting that? will that have an impact on japanese stocks? >> we have seen the market start pricing the whole shifting. have beene big names trading at touch lower. i think it is pretty much priced in. it seems like the market is expecting some sort of a tweak. >> ok. thank you very much for joining us. he is portfolio manager of alliancebernstein japan. he thinks it's going to happen. we will see very soon if it does.in the meantime , everyone is talking about it. back to you. >> that's right. we will know better tomorrow. thanks so much, kathleen. still to come, india is on course to raise rates for the second time in a row. will it be enough to quell sticky inflation and a weak rupee? more next. this is bloomberg. ♪ ♪ >

. >> and the ecb is sticking to its bond by and rape has strategy. mario draghi sees broad-based eurozone growth ahead. 8:00 a.m. inthat sydney. two hours away from the open here. ramy: and it's just past 6:00 p.m. here in new york. over the next hour we will look at how the action on wall street will play into your asia-pacific trading day. let's get straight to it, because it was definitely the tech story continuing along with earnings, after-hours about amazon as well as intel. rightn see those trading now. amazon is up by little more than 3% after the quarter profit beat estimates. but intel, even notes top and bottom lines of the, that is ahead is for a slowdown. let's take a look at what happened on the averages here. the dow up .4%, but it wasn't messy picture, all over the place here. , with no00 down .3% surprise, information technology being the biggest sector weighting that down. down, as youourse can see at the bottom of your screen, 19%. wiping away $120 billion in just this one trading session. also the biggest one-day deterioration in

bonds talk i learned the language of goldman, they have fabulous bonds. they're saying with the two year treasury so close in yield to the 10 year treasury, twos and 10s, we're almost experiencing a flat yield curve when you have a flat yield curve, there's usually a recession, a sign investors are worried about the future i wish it weren't true and i could dismiss it and wish i could say the 10 year would be much higher. can't ignore it. >> what would send us over the edge, if the fed raised rates too soon and judging by them, they're going to stick by their desire to raise two more times this year. you will hear screaming. the 10 year doesn't start yielding more and long term rates go higher, they have to pay more for your deposit. going full circle, bonds are screaming. keep this in mind. we're about to go into recession if the fed keeps raising rates and banks. about a fifth of s&p 500 can't make much money on their core business lending, hence the defensive stocks, not defense stocks, they're awful. defensive stocks, they're awful. before you say thi

the federal reserve bank is releasing lots of bonds back into the market. yields were supposed to be rising, we failed not only to get through the 3% mark but falling back so we're behaving in a way that doesn't suggest confidence is there in terms of durability of the economic recovery. >> so you actually see -- you think this flattening that is going on in the u.s. curve could signal something a little bit more sinister later on in the sense that it's probably flashing signals that a recession may be around the corner >> if not a recession, certainly a return to much more subdued growth the u.s. federal reserve thinks long-term growth in the u.s. is under 2% the economy is growing gang busters, and the bond markets configuration suggests that this is short-lived, and that the fed overtightened, and that ultimately will slow things down potentially bringing recession-type conditions. because other things are going on which are risks to the cycle. >> the risk is that the fed may have to overtighten. ecb has said to the market we won't do anything before sum

if you ever wanted to be bond, james bond, we'll take you to a remote mountain side where you can getat the new 007 museum. >>> we'll talk to elon musk's mom. >>. >> plus culture fix. car di b welcomes a baby girl and her name has a lot of people talking. up next, how kylie jenner built an empire of her own and new questions about whether it's questions about whether it's it's the ford summer sales event and now is the best time to buy. preparing classic campfire trout. say what? trout. trout. all right. you don't think i need both? why does he have that axe? make summer go right with ford america's best selling brand. now get 0% financing for 72 months plus $1,000 ford credit bonus cash on a great selection of suv's. during the ford summer sales event, get our best offer of the season 0% financing for 72 months plus $1,000 ford credit bonus cash. crisp leaves of lettuce. freshly made dressing. clean food that looks this good. delivered to your desk. now delivering to home or office. panera. food as it should be. panera. alice loves the smell of gain so much, she wished it came in a f

on the bond side of things, the bond market reaction to the u.s. show that investors don't see that level of growth sustaining in the longer term. do you like the longer end of the u.s. treasury curve, like 10, 30, that sort of area? >> the curve is quite flat today. you have to have longer dated bonds if you use them as a hedge. a two-year bond will hold its value, but will not do it -- do much as a hedge should something happen in markets. if you look at it that way, you have to do longer-dated bonds. this year in the u.k., we moved from shorter-dated bonds to longer dated gilts, just because we want that aspect of it. stay with us on the program. don't forget to catch our coverage of three of the world's biggest central banks this week. tomorrow, we hear from the bank of japan, a news briefing. the next day, it is the u.s.. federal reserve. on thursday, the bank of england announces its latest decision. governor mark carney gives a news briefing. if you are a bloomberg customer, you can watch the show using tv as well as a via stream. you c

they have not been buying high-yield bonds.has been a bit of an unloved market and now trades at a wider spread to the u.s. i think that has a good opportunity over the next six months. jonathan: what do you make of that argument, krishna? krishna: with respect to leverage, yes. i think the leverage of u.s. hybrid market has gone up, but the debt coverage ratio is quite reasonable because of the high level of profitability. so i disagree that that reflects credit concerns in the market. it is just a supply issue far more than anything else when you have lots of large m&a transactions coming through the system in a market where flows into mutual funds have been pretty slow. it is the math is easy. jonathan: here we are talking about a slow-mo credit crunch, the federal reserve, as we can debate whether they have gone neutral or not, but to that extent, let's assume they have. not by very much. if you want to make that argument. my question, how are we going to even get an ecb that can get away from negative rates when we are hav

bond purchases have started that number. this will be another way to sort of finesse that, make it more consistent with what they're doing. the easy call right now is for them to adjust their e.t.f. purchases away from e.t.f.'s weighted toward nikkei stocks, waited more toward the topics. there's some distortions there as well. interesting conversation we had yesterday with the former vice minister for international affairs at the ministry of finance, well known for his currency market expertise and certainly his monetary policy expertise as well. when i asked him this question he said, well, there's no reason for the b.o.j. to change policy now. of course they do have to make their policy sustainable over the long run for all the reasons i just listened he said he doesn't see any policy for the change but maybe a technical change making it clear that keeping the 10-year more of a range. let's listen to what he told us. >> expand both sides, which means to make market increase market growth to find ppropriate deep. >> if thi

stocks and bonds rates climb.parent rises following a monster quarter, shaking off europe's $5 billion fine on the company. , switzerland's largest bank reports income well above estimate. from sergio ermotti throughout the day. let's get you straight into what's happening in markets when it comes to the futures picture, because we are getting the positive seed from the asian equity section. a couple of things to look out for. european banks, wealth managers , a very strongts third-quarter guidance. nejra: financials outperformed in the u.s. as well, pushing the s&p 500 higher. we see those gains in the asia-pacific index. materials are outperforming and chinese equities as well. efforts from chinese authorities to support the economy, impacting bond yields and the ui and -- yuan, blowing past that 6.8 level. i've got the 10 year treasury up because we saw yields rise. steady in this session along with the 10 year u.s. yield, which trades at 2.95%. we did see that rise six basis points in yesterday's session. that