shery: bridgewater associates co-cio and founder.ou can catch that full conversation on wall street week airing leader on friday. price concerns are raveling investors. feeling a selloff in treasuries even after the fed predicted near zero interest rates for 2023. running us to discuss is julia hermon. great to have you with us. as i said, the fed has remained --. we do have those inflation concerns. they are coming from the idea we will continue to see economic growth. why do we see this market reaction today? >> the skittishness we are seeing emanates from the fact we have put the cart before the horse at least by a few months in terms of the global recovery. we have all the building blocks. we have the stimulus announcement. we have vaccine progression. if we look at the rest of the data, it is hard to come up with a coherent story about the recovery being here. you have the bond market screaming at us, the market is right here, right now. shery: you have those inflation concerns continuing especially in some emerging market econo

bridgewater says get ready for a turbocharged cpi. this is a debate, a quintet of voices, and the stoicism of jay powell. will he be pushed? i am getting ready for screening higher inflation. annmarie: we will have to see what the fed says about this. investors are going to be scrutinizing potentially what the fed does and the projection of interest rates. what does that mean where they see inflation going? there are two camps. you either think we will have inflation, or what guggenheim says, a reality check. it is so subdued, it is overdone. manus: exactly, and whether it is the catch up spike. stephen major, i listened to the conversation, he wrote a paper on yield curve control, and as he said, the fed is grateful that we are living in average inflation targeting, and they do not want to pick a fight with the market unless they will win over the vigilantes. annmarie: we should get to the former bond king, bill growth expects inflation to accelerate up to 4% in the coming months. take a listen to erik schatzker. >> inflation above 2

ritika: coming up, the bridgewater -- this is bloomberg.berg first word news. the french government is locking down several regions for a month, including paris. president emmanual macron is trying to contain a third wave of the coronavirus print new measures are expected to take .2% off france's annual gdp. president biden is closing in on his goal of administering 100 million vaccines during his first 100 days in office print the milestone will be reached today, a few weeks ahead of schedule. the national football league has announced a new series of long-term tv deals valued at $105 billion. historic contract giving amazon's exclusive rights to thursday night football. cbs and fox keep the rights to daytime games on sunday. global news 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. i am ritika gupta. this is bloomberg. guy: thank you very much. oil taking a beating. prices heading to their biggest weekly slump since october. inflation concerns, what is happe

mike, i want to work off of bridgewater today. will monetize the debt as we have since roman times, and that will lead to a per minute -- a pernicious inflation. is that good for equity markets? mike: i think we have the answer to that, no. if you are in an easy money environment, higher nominal growth in the extent that you are getting higher inflation. discount rates will go up. we see that with higher than expected inflation. and market ratios and all other things equal, will go down. you are seeing that visibly in tech and the nasdaq 100. which is falling on his face for lack of a better term with high market interest rates. tom: will the corporations adjust to the reality of collapsing ratios? mike: i think so. a previous guest pointed out that in a v-shaped boom, reflation and then inflationary profits are going to go up. that's one way for the ratio to adjust down. but the other way is through lower equity prices. we are seeing a combination of both. the profits will be strong. i think the equity markets are going to strugg

rebecca patterson, bridgewater associates. chair yellen is speaking at the imf.s hoping by next year, we can get the labor market on track, and she does say the u.s. is addressing the low wages and lack of benefits in jobs, and still concerned about the permanent scarring from the crisis. she is speaking now at an imf event. this is bloomberg. ♪ ritika: this is "bloomberg markets." coming up, cathie wood, ark investment management ceo. that is at 5:00 in new york. this is bloomberg. ♪ let's check in on the bloomberg first word news. the u.s. and south korea have reached a long sought after agreement on defense costs. seoul will pay more for u.s. troops stationed in the country. south korea's parliament still has to ratify the deal. talks stalled last year when donald trump rejected a south korean proposal. norway's dmv has been named the world most gender diverse corporation, according to the gender equality global report. dmb's chief executive says the key is making sure women aren't penalized when they have children. global news 24 hours a day, on air and on bl

brid bridgewater talking about the fed's hand forced as well. bring in our fed whisperer steve liesman. his own exclusive fed survey heard the conversation, with us. your survey seems to match up with exactly what some worry about today. whether bank of america fund managers or bridgewater is talking about or even morgan stanley of the fed coming in with a little more restrictive policy than people are ready for. >> yeah. definitely pulled forward the data the first tightening. they think the qe will end this year in november the average response they think the first rate hike comes in november 2022, rather than if you go back three or four months. it was in the early part of 2023 but you know, i guess i wonder, scott what did you think was going to happen? if we're doing 6% growth, and also have inflation ticking up average forecast this year sees inflation going from 1.7% to 2.4% certainly the ten year will rise i think powell means it when he says he wants to let things run a little bit hotter than they had in the past, and the forecast shows

the latest being carolina's teddy bridgewater. but whoever the quarterback will be will have to face jj watt twice this season. the three-time defensive player of the year broke the news himself on twitter. he signed a two-year deal with the cardinals worth up to $31 million. his decision should make 49ers' left tackle trent williams a happy man because his price tag just went up as he enters free agency. >>> baseball. day two of the cactus league. giants and rangers. the game ended in a 1-1 tie. >>> over in mesa, the as pounded the reds 13-5. matt olson hit one of three oakland home runs. the as had 1300 fans in attendance today. while most hitters say they block out the noise, mark is looking forward to having fans back to crank up the volume when he's in the batter's box. >> i kind of felt like the pitchers, it gavave the pitchers an advanantage becauause for th, they're just going up there and throwing. there's no pressure. and i kind of thrive on that. whereas other guys might get a little shaken up, a little rattled. and tha

away from this centrally cartel but now what's happening is that people like ray deleo over at bridgewater his head fund or michael saylor at micro strategy are saying you know what we're not go play the game anymore we're actually going to borrow money at these are incredibly cheap rates and we're going to buy assets could be bitcoin could be something else and we're going to states essentially a speculative attack on these central banks so the central banks have overplayed their hand and now they're inviting these huge pools of capital to openly attack them and now this is rippling through the financial world and right dahlia is the biggest test for the world and he's saying look there's no point in owning a bond so others are saying look this could be the end of a 40 year bull market in bonds if you're only going to get 1.6 percent nominal yield on a bond and inflation is racing ahead in the real rate of inflation remembers 10 to 12 percent not the one to 2 percent that the government says it is that's that's a lie is provably a lie so why not borrow at a one percent when you know based

ray dalio of bridgewater.

the billionaire founder of bridgewater associates taking to linkedin last night saying the economics of investing lately not just in bonds, but most financial as assets is basically idiotic. he says, quote: rather than get paid less than inflation -- meaning for bonds, right? -- why not instead buy stuff? any stuff that will equal inflation or better. okay, ray, i'm kind of with you, but that's kind of broad. specifically what stuff? well, call the owe believes -- dalio believes asian emerging markets. to our floor show traders. you know, me thinks, guys, he means the u.s. when he says mature and developed countries. but, tom, he said to buy higher returning, non-debt as assets, and he calls them stuff. what stuff are you buying right now that fits into that category? >> i agree it makes less sense to own bonds, but i prefer pockets of the u.s. market versus china for a few reasons. china has aging demographics due to the one china policy from 1979-2015. they're going to look more like japan moving forward. we have a dynamic population, we've got the millennials now are bigger than t

and so is teddy bridgewater better than jimmy garoppolo? i don't think so. lot of moving parts. but it's always great to hear joe montana talk about the quarterback position. >> thanks, larry. >>> tonight at 8:00, catch the goldbergs followed by american housewife, the conners and call your mother. at 10:00 catch the con about the disastrous 2017 fire festival. then stay with us for abc7 news at 11:00. >> and don't forget you can watch all of our newscasts live and on demand. it's through the abc7 news bay area connected tv app. it's available for apple tv, android tv, amazon fire tv as well as roku. all you have to do is download the app now and you can start streaming. it's so easy to do. all right that is going to do it for this edition of abc7 news. we thank you so much for joining us tonight. i'm ama daetz. >> and i'm dan ashley. for spencer christian, larry beil, all of us here, we appreciate your time. hope you have a nice evening and that we see you again tonight for abc7 news at 11:00. >>> get the facts thinking could really be a game changer in get

shery: we heard from the bridgewater ceo talk about the beginning of a major secular change.nomic conditions and inflation will adjust faster then even markets or the fed are expecting. and yet we continue to hear this skepticism about inflation. matt winkler, writing this piece saying with the exception of the 70's, we have not seen inflation come back, so what is different now? >> fed infrastructure spending. think about the amount of spending we have already had from the u.s.. the fiscal stimulus, this new package that was passed the we will likely see later on. we are talking $8.5 trillion, well over $8.5 trillion of incremental spending from the u.s. government from 2020-2024. that is a big uplift that we are focused on. that is clearly causing people to think more about inflation. we are already starting to see that get priced in, as we just heard, with breakeven rates around 2.3%. could that go higher? that hit a touch above 3%? -- could that hit a touch above 3%? if you think about how that initial spending comes through, things are going to balance out a little bit m

. >> bridgewater associates co. cio and founder, ray dalio.e full interview on wall street week erring later on friday. head out next, why singapore is building back better in the pandemic. we discussed the changes it is making for migrant workers. this is bloomberg. ♪ >> model minority myth was not something that was fabricated by the asian communities. it was incredibly successful. >> we know it is probably not going to end tomorrow, but it is our job to make sure that we keep people safe and give people dignity. >> i spent a lot of time last year to listen, reflect, and understand what i can do as a leader of this organization. >> for many years, we have been very shareholder focused and now there is much more a community requirement. >> we are seeing unemployment and income losses affecting women more than men. >> two thirds of the jobs lost in south africa were women's jobs. we are in a moment of crisis. >> our societies are reproducing, not producing any quality. >> we need better public policy and we need companies to step up. >> we rea

anna: that was ray dalio, founder of bridgewater associates, speaking first, and paul krugman, nobelze-winning economist commenting on inflation as the debate rebels on. you can watch more -- rumbles on. you can watch more on wall street week tonight, 10 of 5 p.m. london time, 6:00 p.m. if you -- 10:00 p.m. london time, 6:00 p.m. if you are in new york. mark, the boj now saying they don't have a plan to widen the yield bands now. whether they did or didn't, they don't have a plan to do so from where we find ourselves at this point, bringing there was some live pictures from tokyo of governor kuroda holding that press conference. do you think markets have been brother confused? it seemed something moved the equity markets lower a little bit earlier. mark: kuroda seems to want to make very clear that this isn't a minor step, in any way, hawkish. he wants to make clear they are being dovish, able to cut rates, and therefore say we are not widening the band. the initial interpretation was this was a hawkish step, or at least a more flexible step, not like front and policy. that's were eq

the bridgewater cofounder has long been known for his disdain of holding cash amid rising money printingnflation, now the billionaire investor says bonds may be a bad bet as well, calling the economics of bond investing stupid. our guest is still with us. ray dalio says buy stuff, not specific on what that is, but he means don't just leave your money in cash but do not buy bonds either. you share his -- his negativity on the economics of a bond buying? >> clearly higher inflation rates would eat into the cash value of fixed income instruments and this would you learn -- this would generally be a challenging environment. for the time being, we expect a continued pickup moderately of yields, which would lead to the result that government bonds should, from a multi-asset context standpoint, rather be underweighted or a duration short. with fixed income, it is attractive to look at curve steepeners, particularly in the u.s.. overall, the inflation environment is conducive for risky asset classes, particularly with the acceleration in global growth in mind in the middle quarters of this year.

. >> karen, where do you guys at bridgewater think that treasury yields are going >> well, the fed ischallenging moment facing an extreme dilemma, because on the one hand, we're looking at a very strong recovery that's likely to evolve here, especially as the virus fades as the main kind of cause-effect driver of the market there are, of course, incredibly strong fiscal stimulus coming our way, expectations are rising, so the treasury yields coming up kind of expecting you're going to see some tightening into that makes some sense, especially when you have a bubbly activity in the stock markets that we've seen. on the other hand, the markets don't want to go too quickly social conditions, how much they de deteriorated, and we know they've looked at as the recovery goes on and on, it works more through the work force and more people get back in the work force. i think the fed will be in a tough spot in that situation, and for an investor, looking at things like real assets in that situation where inflation has to go up first before you get a real tightening is a good place to look. >>