rebecca patterson joins us from bridgewater associates good to see you. know you at bridgewater have been expecting inflation to stick around higher than the market do you think the market is finally getting that right or still -- still wishing that it comes down faster? >> well, even after yesterday's inflation print, the markets are discounting that inflation gets back to the fed's target by the end of next year and then stays there, and that's certainly possible i mean, we are seeing goods prices, things like autos coming down quickly as the commodity prices come lower. everything helps things will be sticky for a little longer like rents, but the big, big thing is wages, and that comes back to our really incredibly strong labor market, and with the labor market today, it's kind of resilient being a double-edged sword, you know a strong labor market means we have jobs. we have incomes we can spend, but it -- with so much nominal spending, that keeps inflation supported, especially in services, and with, still, two for one job openings per worker, wages

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do you get the sense that we will see rates at what ray dalio of bridgewater predicted at 4, 4.5%? >> that would be a really bad outcome for many. i think this is a doom scenario if it's going to happen. it means that inflation is much more persistent than anybody expected. it means that it's much more of a global phenomenon and frankly with a pace that the fed is raising interest rates and the policy works with the lag. we haven't really fully seen the effects of the existing hike so far. if they need to go that far up, that means that, you know, the downside can be really, really low. liz: with all the assets that you look at over at goldman sachs, can you tell me what looks most vulnerable that you would just stay away from? >> credit looks vulnerable at this point, especially high yields. liz: so corporate bonds. >> yes, i would stay away or reduce my exposure the same with em. em can be very vulnerable because of the strength of the dollar. liz: emerging markets. >> yes, these are some of the arareas that we prefer to be underweight. we're also very careful about europe. we th

plus, bridgewater could tank. the eu sets its sights on -- to counter its idea of a price cap. good morning. we have some pretty big divergent views. the beasts and veterans of wall street go head-to-head. good morning. dani: good morning. we saw some of that play out yesterday. european equities ended the day down. perhaps they will play a little bit of catch-up today. futures into the green. some of the hong kong indices are doing better. it is a mixed bag when it comes to s&p futures. for all intensive purposes, they are flat. tomorrow, $3.2 trillion. adjustments are made ahead of those options. manus: also, the bond market choked on that tenure auction this week. they are salivating at the thoughts of 4%. this is what we have for you. 4.5--- 4.5%-6%. a rate of just over 4%. dollar-yen, the dollar is strong. he doubts it would be g2 intervention. they do not want anymore dollar weakness. the iea reckons that china will fall the most in -- since 1990. note price cap yet. of course, the magnificent bond has it all. we came in this morning, we asked about that yield convergent.

far is the fed going to go and how deep of recession is this going to be used all the founder of bridgewaterhe is predicting interest rates to rise for an half percent. he said that could sink the stock market, stocks will go down 20%, we have the september federal reserve meeting next week and you say it's going to be 75 basis points some people think 100 basis points what kind of an impact are the sharp moves going to have on the economy or the stockmarkets? she is in a dour sour mood these days, there's a lot of people like her they keep talking about the perennial crash, maybe in the nasdaq there is, maybe in unprofitable companies that live off of free cheap money the fed has provided over the last ten years for company they can't make a profit and have massive market caps there is going to be a problem there will be a prophet for streaming that can't make a profit. when you look at industrials and banks in materials and energies, these are companies that hire cash machines, can deliver profits on an inflationary environment, i think where this market turmoil with front running the news

second string quarterback teddy bridgewater took over after toa's injury.o the bengals 27-15. those your headlines, brian, over to you. >> thank you so much. search and rescue missions underway in florida this morning after ian left thousands of residents trapped in their homes. the mission, a race against time as the death toll rises to at least 10. the state's chief financial officer and state fire marshal jimmy joins us now. jimmy, first off, are you able to tell me how many people right now have contacted your division for help? and how many people are available to do just that? >> so, good to be with you. please understand that communication cellular towers the top of are infrastructure makes this possible is in such disrepair. challenges with calls out. i got on task force 2 last night that's city of miami. at about 8:00 last night on fort myers beach panama city is my hometown. and this is -- this is by far the worst hurricane i have ever been a part of. probably the biggest event we have ever had in the history of the state of florida as the worst o

second string quarterback teddy bridgewater took over after tua's injuries but they fell to the bengalsk was a huge mistake. it might have been a concussion last week. >> ainsley: and his fingers. >> brian: hope he's all right. thanks. governor desantis come in the meantime, an important story. terrifying footage of a condo door bursting open at the seams from water pressure. look at this. a tampa couple who evacuated to naples shared this moment of devastation, wreaked by hurricane ian. they join us now. alexis is a blogger and writer, and speaks 18 to mike to mike radu is a website engineer. you taped it, what was it like when that water came through? >> i thought i was going to die. it is pretty terrifying. i got completely submerged under water. the water turned the video off. it destroyed the screen. i didn't even get -- i lost my shoes, i got pushed up the stairs, and i got pulled back down. i was lucky to hold onto a guardrail because it was trying to suck me back out. >> brian: alexis, where were you? >> i was upstairs in the condo. the only reason he was down there is the fire

ray dalio, bridgewater guy, says higher interest rates to quash inflation could tank stocks 20%. elon musk and cathie wood are warning of deflation and barry sternlic on "squawk box" today said ceo confidence is miserable and the economy is breaking hard >> now that inflation arrived and actually it's headed down, they are raising rates too aggressively this will be the fifth rate rise this year. >> so is the fed being too aggressive, and is a hard landing maybe a very hard landing ahead? joining us now, rubilo faruqi, and peter boockvar, cnbc contributor. do you agree with what some of these business leaders are saying in that being as aggressive as it is, the fed is courting a recession and maybe a serious one? >> the fed -- good afternoon the fed is in a tough spot right now. you are seeing slowing momentum in the economy, but inflation is too high, and the message is really on inflation and inflation expectations so what we saw in the cpi data, we didn't really see any -- we saw an improvement on the headline, but we didn't see knan improvement on the core februarys. what we'

across there, this is the bridgewater channel. that's right here in front of us. the mayor says. the heat and frequent monsoons have been hurting business. we are dealing with 100, plus degrees, sometimes some days, even 110 with humidity reaching as high as 70 so it's staying between 50 and 70% which is causing a lot of people not to travel. the london bridge ice cream parlor has been family owned for 30 years. the owners say that high temperatures are actually melting their products faster. there you are. thank you. you're welcome, actually have to put cases over the ice cream at the end of the day because they do start to melt towards the end of the day from just the bounce off of the water, and we have to close our doors. and if we had the doors open, you wouldn't be able to really stand in here. the ice cream shop says they're hopeful business will pick up heading into the winter season when it's not so hot, but still warm enough for people up north and like havasu city, ashley's soriano, fox news. alright taking a live look outside. right now we're monitoring the rising tem

downside >> yeah, i'm curious what you think about the potential for downside with that terminal rate bridgewater a li linkeden post that a rise in rates from where we are now to, say, 4.5% would produce 20% declines in equities do you agree with him? do you think that investors have been too complacent about long-term inflation? >> we think they've been a bit complacent as you look out farther, the expectations for inflation are quite modest the work our team has done would suggest we're still going to be in the 3, 3.5 range as you get into 2024. that's above where the market's expectation is right now i think as it relates to equities, it really comes down to where earnings are. third quarter earnings are going to come in probably okay you know, the engagement we've had with lots of companies would suggest that the quarter is decent certainly the nominal growth of gdp is helping companies report decent earnings with he think as you get later in the year into the first half of 2023, earnings need to come down i think that's the kind of downside that ray is referencing. >> finally, joe, do you th

have you read summers or from the head of the bridgewater font?former chancellor, rishi sunak put it out in a word for word to my favourite fact his prediction has come true.— to my favourite fact his prediction has come true. what has happened at the heart of — has come true. what has happened at the heart of this _ has come true. what has happened at the heart of this issue _ has come true. what has happened at the heart of this issue of _ has come true. what has happened at the heart of this issue of whether - the heart of this issue of whether the heart of this issue of whether the government's economic programme here is— the government's economic programme here is credible or not, that life the forecasting from the office for budget— the forecasting from the office for budget responsibility and now i argue _ budget responsibility and now i argue for sometime before friday's statement — argue for sometime before friday's statement and indeed had correspondence with the chancellor and correspondence with the office for budget responsibility arg

here is richard blumenthal in a parade over the weekend, writing in the bridgewater tractor parade. this really brings people together. here is joni ernst from iowa with the college football season. our opening question for you, which party is more per worker. (202) 748-8000 is the line for democrats. republicans (202) 748-8001. independents (202) 748-8002. let's hear from george on the democrats line in kentucky. caller: yes. the thing is this. the plurality of the workforce is in corporate retail all over the country. some are less skilled. the multitasking in retail outlets and a fast place diner is not necessarily unskilled despite what they will tell you. serving tables or being a short order cook, that's a very hard demanding work. the corporate losses, the division of district managers are anti-worker and anti-union. 99% of them are hard-core geo peers. they want to micromanage every move everybody makes. they want to invade privacy in the workplace. they think everybody wants big gumbo the -- government telling people what to do and they start calling you a calmness. the thi

across there, this is the bridgewater channel. that's right here in front of us. the mayor says.rong, but one ice cream shop says the heat and frequent monsoons have been hurting business. we are dealing with 100, plus degrees, sometimes some days, even 110 with humidity reaching as high as 70 so it's staying between 50 and 70% which is causing a lot of people not to travel to london bridge ice cream parlor has been family owned for 30 years. the owners say that high temperatures are actually melting their products faster. there you are. thank you. you're welcome. we actually have to put cases over the ice cream at the end of the day because they do start to melt towards the end of the day from just the bounce off of the water, and we have to close our doors. and if we had the doors open, you wouldn't be able to really stand in here. the ice cream shop says they're hopeful business will pick up heading into the winter season when it's not so hot, but still warm enough for people up north in lake havasu city. ashley's soriano fox news, 5 27. a confrontation was caught on camera af