jon turek, author of the cheap convexity blog.ext up, we will talk about what is going on in space, or at least the edge of space. virgin galactic successfully launching ceo richard branson to space. we will have more on what that flight means for the space tourism industry. this is bloomberg. ♪ caroline: today, we have been all focused on the countdown. the fed, inflation. talking about the weekend test flight by richard branson. joe: look at that. virgin galactic. lift off. is that outer space? caroline: the edge of space. joe: extremely impressive. romaine: i kind of want to go. we will pool our resources. joe: not only a pioneer of space trial but -- space travel but also -- joining us now with more, why are spac's and space kind of like this combo? what is it about this industry that found this financing vehicle attractive? >> there are so many for an industry that is relatively obscure and difficult. there were two just this year. there are four or five more scheduled depending on what you count as a space company. i talked

you mentioned the delta, and if i look at the convexity, and it is a bear squeeze. the delta is the first derivative and the gamma is the second. right now are you observing a convexity trade that overshoot's and will climb back onto the reflation trade? or is there some substance to this lower yield market we are in now? jim: i do think there is a convexity component to the extent that you can overshoot lower. i think the 10-year yeild can get down to 1.25%, but i think it will get hard to get below that for any real material period of time, given what we know with the expectations to grow. growth is supposed to come in around 8%. next year, 4.5%. it will be hard for 10-year yeilds to stay as low, especially as the fed pulls back and tapers even a little bit. i think this is a collect -- re-correction. the reflation trade is with us but it will take time for these positions to get cleaned up. tom: if lisa was here she would be talking a third derivative, go at it. romaine: i will stick with the first derivative, the fed. we talked about the messaging. a few weeks a

we talked about convexity. i do not see convexity in the equity market. i see a 1.7% pullback. we are nowhere near a correction. romaine: nowhere near a correction but people that back into real yields and -1%, and you have to ask yourself what does that say about sentiment about whether it is the cost of money and how does that feed into the sentiment about the growth story? people are not necessarily rushing for the exit but this is a big reassessment of whether you stand at 4300 and say that is the mountaintop. tom: help me out with owner occupied housing. i look at the way hungarian mortgages are based, the oddity of the english market. how big is it that the deal we are doing, they will bring that into their inflation? jonathan: in many ways the criticism of the central banks is they have never taken account for how people experience everyday prices and how the inflation numbers they look at our divorce from the inflation we experience. allow me to go through the headlines. 2% inflation goal over the medium term for the ecb. you throw in the climate change considerations i

but mortgage convexity or bonds or tied to rates is there any under the hood risk to the levels?xity argument, brian, if anything, mortgages will premium pay that money has to get redeployed that puts pressure on rates. the seasonals at this time of the year are favorable for bond yields or bond prices, if you will, to see them go higher. of course, there is always what i think of as the exogonous factors. before we go there, i remember alan shaw, who i studied technical analysis back in the '80s he is a great dean of the technicians. he told me a story how he once working as a fundamental analyst had a call with the company and they said, they responded to the ceo of the company it couldn't be any better. they hung up the phone and older analyst instructed alan to write a sell report. he said it couldn't be any better that is the case with the economy. it couldn't be any better. if it can't be any better, you know, things will be slower in the future and growth will start to slow down and the base effect on inflation will start to show reducing inflation candidly, the market is

. >> we do a lot in the options market and you hold convexity to the upside in -- meaning rates move you have optionality get longer the interest rate exposure we were able to keep that none while we're reducing some of the other side of it so having some real upside convexity to what i would call tail risk, that rates rally. we were doing a bit of that this morning. >> i've had people on the program in recent past and say, you know, you want to be in financials, great place to be. go through all the reasons why, everybody wants to buy the banks. i don't see how financials do much in this kind of environment. but i guess it's not for me to say. what do you think? >> so we have -- i mean that's the one area we trimmed a lot of financials, not necessarily because -- well a couple of things one, the they are functionally become an interest rate proxy. we have reduced some of that secondly when you get banks trading at two times book or at multiples that are hard to justify without significant earnings growth, we think it's working taking chips off the table and plus we think a lot of pe

aware of one thing, and that is the bees love is will options, forums and beautiful changes between convex and concave. forums be love curves, liberty, nice. be colonies. live in a garden, noticed the city center where be came up to them, lots of energy for the bees to produce their wax. they get most of the nectar they need from april to, to line. have lines on the abdomen that secrete scales collected on their hind legs as neither needed with amanda, both until they shape it into honeycomb. but the artist is well aware that nature cannot be planned. it looks like it's quite cold outside and the bees have receded. busy to protect their brewed. so i think they haven't built much in last couple days, which is normal and we kind of expected that when you have some building activity already and at the bottom. so that's quite nice. the weather and the size of the scale to it can take anything from 2 weeks to, to, to complete. i think this project is also very important besides being beautiful artwork in the context of saving the nice. i'm really happy and humbled that this project helps to pro

this will actually forums and beautiful changes between convex and concave forms b love curves. live t nice be calling ease live in a garden, north of the city center leaking looks after them. it takes lots of energy for the bees to produce air wax. most of the nectar they need from april to, to line have lands on the abdomen that secrete the wax scales. the base collected on their hind legs live needed with the mandible until they shape it into honeycombs. but the owners did run away that nature cannot be planned, it looks like it's quite cold outside and the bees have receded to protect their brewed. so i think they haven't built much in last couple days, which is normal. and we kind of expected that when you have some building activity already at the bottom. so that's quite nice with it and the size of this, it can take anything from 2 weeks to 2 years to complete. i think this project is also very important. besides being beautiful artwork in the context of saving me, i'm really happy and humbled that this project helps to promote these ideas. in the most entertaining aspect

of one thing, and that is the bees love is this will options, forums and beautiful changes between convex and concave forms be love curves, liberty nice. be called a nice live in a garden north of the city center where he looks after then. it takes lots of energy for the bees to produce their wax. they get most of the next are they need from april to, to line have glass from the abdomen, that's the crate. the scales me, the base collected on the hind legs, adds deniva needed with them mandibles until they shape it into honeycombs. but the artist is run away, the nation cannot be planned, it looks like it's quite cold outside and the bees have receded to protect their brewed. so i think they haven't built much in last couple days, which is normal. and we kind of expected that when you have some building activity already and at the bottom. so that's quite nice. the weather and the size of this, it can take anything from 2 weeks to 2 years to complete. i think this project is also very important. besides being beautiful artwork in the context of saving the nice, i'm really happy and humbled

this will actually forums and beautiful changes between convex and concave forms. be love curves, liberty nice. be colonies live in a garden, north of the city center where be came that looks out to them. it takes lots of energy for the bees to produce their wax. they get most of the next, they need from april to, to line have glass from the abdomen. that's a creek. scales the biggest collective on their hind legs. deniva needed with amanda bulls until they shape it into honeycombs. me be honest, this runaway, the nation cannot be planned, it looks like it's quite cold outside and the bees have receded. busy to protect their brewed. so i think they haven't built much in last couple days, which is normal and we kind of expected that. but you have some building activity already and at the bottom. so that's quite nice. the weather and the size of the scale to it can take anything from 2 weeks to 2 years to complete. i think this project is also very important besides being beautiful artwork in the context of saving the nice. i'm really happy and humbled that this proj

k is not waiting until it's scott wide or high coverage with respect seen in particular convex and it down to 12 year olds, possibly even to younger age groups in the future. and that's the parts being taken across europe in north america. and disney the approach and you sealant, i mean, we're rolling up at seeing now, and we've got approval to vaccinate down to 12 years of age. and we wouldn't think of relaxing god until we had very high coverage down to those young age groups. press because looking in the form of his guidance for you k visitors to new zealand . and they, they want people to beware of for changing climatic conditions and also the possibility of terrorism. and what would be you wanting to key west us to the united kingdom of the present. why i think that has to be fully vaccinated. because otherwise is the high shots, you gotta get sensation. well, new zealand band, u. k. visitors, under cover circumstances and you would have been, well, we have a system that tries to be quite even handed. we do obviously allow people to come in by quantity. and we had to travel from

convexity. it reaffirms more elegant this morning. we are headed towards fully employed america. have an important map in mississippi and beyond the missouri river of the states that have said we will not play with washington's game. michael: one of the big issues is have people not been going back to work because they can get unemployment benefits? a number of states cutting them off early. in terms of initial claims, alaska, one of the first down by 17,000, iowa up 189,000. maybe it does not hold through there. mississippi and missouri both cut off a couple of weeks ago in mississippi is down 302,000. that is a lot. i do not have the exact percentage calculation, but it does tell you we are seeing a big drop in initial claims. then when you look at the total claims for those states, alaska down 753,000. iowa is down 2 million and 3000. we are seeing a lot of drops -- alaska is down 753. we are looking at significant drops in the states that did cut off benefits. that just tells you they did cut off benefits. did those people get incentives to get jobs? lisa: one thing you're po

first of all, there are shorts in 10-years that got smoked again, convexity buying out of mortgages, and you continue to have pension money go to work. but more importantly, you have a lot of calls that were written on 10-year futures at the 1.33 and 1.34 levels. as the 10-year continues to go down in yield, those have to be dumped to hedge. as far as equities go, we saw 4 billion exit the -- etf yesterday with. so i'm not so surprised that equities are back off and, no, i don't think this is the beginning of a correction. a correction will come, this is not it, i do not believe. liz: okay. we're looking at the vix right now, guys, and i just want to point out it has now gone back up above 19 barely. hue of the session, i believe, was around 21. there is some fear in the markets here. sarge, buyers mussed the bottom this morning. -- missed the bottom this morning. what moves are you making, and do investors get another chance in the next 55 minutes here? >> investors may get another chance. what i did this morning was i got out of my names that were winning this morning. i sold out o

they threw out the convex saying prosecutors violated a deal meant to shield cosby from prosecution.e retried. nbc new's stephanie gosk has the details. >> reporter: bill cosby a free man, his conviction tossed out, his record wiped clean. he cannot be retried. he appeared briefly before reporters outside his home. pennsylvania supreme court ruled that the decision to charge cosby with sexual assault in 2015 was an affront to fundamental fairness and the prosecution violated cosby's due process, cosby calling in to a radio show. >> this is for all the people who have been imprisoned wrongfully, regardless of race, color, or creed because i met them in there. >> reporter: the 83-year-old was served a three- to ten-year sentence in a maximum security prison after a jury found him guilty in 2018 of sexually assaulting andrea constand. at the same time other accusers celebrated the verdict outside the court. >> i feel like i'm dreaming. >> reporter: constand said cosby drugged and sexually assaulted her in 2004. cosby said the act was consensual. in 2005, the district attorney at the tim

aware of one thing, and that is the bees love is voluptuous forums and beautiful changes between convex and concave forms. be love curves, liberty, nice b colonies live in a garden north of the city center where we came up to them. it takes lots of energy for the bees to produce their wax. they get most of the nectar they need from april to, to line. have lands on the abdomen that secrete scales collected on their hind legs. deniva needed with their mandible until they shape it into honeycombs me. but the artist is run away. the nation cannot be planned. it looks like it's quite cold outside and the bees have receded to protect their brewed. so i think they haven't built much in last couple days, which is normal. and we kind of expected that when you have some building activity already and at the bottom. so that's quite nice. the weather and the size of the salt it, it can take anything from 2 weeks to, to, to complete. i think this project is also very important besides being beautiful artwork in the context of saving the bees. i'm really happy and humbled that this project helps to pr

because delta variant's levels are higher than the body than the original variant, it is twice as convex. >>> for vascular people come the cdc document says that the risk of severe disease or death is reduced by which was always the goal of the vaccine. dr. maldonado said that the risk is for people who cannot get vaccinated. so children who are under 12 and some immunocompromised people. she suggest going back to a fully vaccinated pod of people and avoiding crowds, especially for unvaccinated children. >>> sacramento county is the latest in the state to issue a mask mandate indoors in response to rising covid-19 cases. it is joining yolo and los angeles county in this requirement. we asked the san francisco mayor if her office is considering a similar decision here. >> yes, we are looking at mask mandates for both vaccinated and unvaccinated people. yes, we are looking at mandatory vaccines for folks who are not necessarily just city employees. >> right now, san francisco is it just recommending masks for everyone indoors. >>> many parents understandably concerned about sending kids ba

be aware of one thing, and that is the bees love is watches forums and beautiful changes between convex and concave forms. b love curves, liberty nice be colonies, live in a garden, noticed the city center where he looks after them. it takes lots of energy for the bees to produce their wax. most of the nectar they need from april to, to line have glance from the abdomen that secrete scales collected on their hind legs. deniva needed with their mandible until they shape it into honeycombs me. but the honest one with a nation cannot be planned. it looks like it's quite cold outside and the bees have receded to protect their broods. so i think they haven't built much in last couple days, which is normal. and we kind of expected that when you have some building activity already and at the bottom. so that's quite nice. the weather and the size of the cell, it can take anything from 2 weeks to 2 years to complete. i think this project is also very important besides being beautiful artwork in the context of saving me. i'm really happy and humbled that this project helps to promote these ideas

company in the study says the vaccine triggered a strong immune response and blood samples taken from convex vaccinated people. earlier studies show both the pfizer and moderna vaccines were also effective against the delta variant. helping student athletes take advantage of possible endorsement opportunities following the recent decision from the ncaa to allow athletes to profit from their name and image, but first after the break target stores in one bay area city now cutting store hours because of a growing problem of theft, what the mayor is now suggesting t company do instead of limiting h at san frae company will now limit the number of hours they stay open. as ktvu kristen captain tells us this is an ongoing problem for target target. shoppers in san francisco will have to limit their shopping excursions to between nine a.m. and six p.m. instead of 10. pm target released a statement offering the reason for the move reading, in part quote for more than a month. we've been experiencing a significant an alarming rise in theft and security incidents at our san francisco stores. customers

reiterated my concerns about nord stream two, chancellor merkel and i are absolutely united in our convexse energy as a weapon to coerce or threaten its neighbors. today we are launching a climate and energy partnership to support energy security and the development of sustainable energy, sustainable energy technologies and emerging economies including in central europe and ukraine. to unite our efforts to upend and on our global climate ambitions that we have to up the ante. what will happen is we talked about when paris accord was set, we thought we had established just how serious it was, that things have gotten much more dire since even that date. to unite our efforts to update, to up the ante on global climate ambitions. i also thanked chancellor merkel for the dedication and the sacrifice of german troops who have served side by side along with u.s. forces in afghanistan for almost 20 years. we reaffirmed our shared commitment to continuing to counter terrorist threats where we find them including in the sahal in africa, and we -- when we think about the future, the future we want f