francine: deglobalization. so this is, what, bringing back onshoring? bruce: all it is is -- i think in covid -- i would say it has always been happening, and in covid, people just learned we should have production capacity located in -- many things, located where you use them. so, increasingly, for example, batteries. for cars, for example. they're being used in america, and, therefore, there are battery plants getting built in america. and there is an enormous need for capital to fund battery plants. there's enormous need for semiconductors. enormous need for manufacturing capacity in various locations around the world. and it's just natural that everyone doesn't want to have all of their manufacturing capacity in one country or place. let's diversify. so, that is just a big theme, which means, it's just a lot of capital. francine: you make it sound very easy, but actually, this has gotten you, like, more than $900 billion in assets under management. bruce: you know, it's not easy, but if you have operating people and you keep repeatable -- do repeata

we think that that is one way to see deglobalization. the chips act plays into where companies manufacture. caroline: as a global technology leaders in sustainable future tech fund, do you worry that you will have to sacrifice margin on some of the companies you are investing in globally because they have to manufacture in more expensive places to secure a supply chain? or can you start to play out opportunities more globally being overlooked as we have all just focused on a so-called magnificent seven? alison: i think that there is a significant focus on margin. the morgan stanley technology conference in march showed the two most used terms from the conference where ai and chips act. it was margins and efficiency. that is one of the really interesting aspects of where we are. we have emerging new technology also happening at a time when we have this rise in the cost of capital and companies are focused on efficiency and improving margins. in that case, really interesting opportunities for investors. it is a stock pickers market. it is

populism is driving and deglobalization is driving spending. it's not just about growth, right?about who is getting that money. that's a very different change. >> another thing nobody really notices that yesterday we closed 200 bases points above boons. 200 bases point. why do you think that is? >> well, at the end of the day, you know, the structural inflation is here to stay. the money goes to the opportunity is. and these things are going higher. we talked about it. if you continue to choose in a stagf stagflation environment. what do you think will happen? that's what powell will tell us. he continues in the face of higher growth and more inflation to prioritize the growth. in election years, that's what happens. >> powell spoke after those numbers released on good friday. i was kind of shocked. he said, well, there's nothing surprising there. i was surprised because we made zero progress. >> if we're not dealing with inflation, right? we're going to see more and see a steepener. that's what we're seeing. and it can go very slowly at first. but these things break. once the l

they are talking about deglobalization and the fact that rates are going up.e telling clients to hang on but i think they are also falling prey to this general trend. they've seen assets and the all weather fun to go down as well. sonali: thank you for your time. take a look at the story when you get a chance. we have goldman sachs exiting the robo investing business and joining us now is the writer who broke this story. what does this mean for the market strategy? >> it's not just the big wall street trades that are sputtering. we've been talking about the ark of the customers and how they been scaling back because it's not really worked out. the wealth advisory channel is we know goldman sachs is really known for its prowess in advising the ultra-wealthy. this was away for them to reach out to the little guy, the retail investor. it's not quite worked out much like some of their other consumer products. goldman has been scaling back in with his deal they struck where they transfer over their clients and assets associated with them, they paid back their digit

one reverse deglobalization. get back to the point around price pressure. independence, and finally the report argues for credible public debt policy. pandemic, increased defense spending, funding to decree carbon emissions contributes to more government debt and more inflation. finally there is one intriguing note, it is worth noting if the political economy pressures do result in higher average inflation it will likely come in the form of occasional bursts such as after the pandemic rather than a inflation rate that continously exceeds that target. charles, this research is out just in time. the pace of global inflation declining has abruptly stopped. in some cases you see the u.s. here is actually increasing. back to you. charles: kelly, thank you very, very much. meanwhile my next guest throwing cold water are he calls misleading macroeconomic narratives. we have ey parthenon, gregory daco. thanks for joining. there is no evidence the economy is reaccelerating, nor inflation is picking up or inflation has become entrenched other even the fed it about to

today, the digitalization of everything, the decarbonization of everything and the deglobalization of everything are three megatrend themes that are going to be very dominant in investing for the next 20 to 30 years. francine: geopolitics is taking a turn for the worse. had you keep that trajectory saying we will digitize all over the place or how do you stay the course, as it were? >> but we try to do is find good countries, go there and stay there. invest in these things. and whether governments come or go or interest-rate still up and down aren't really relevant to these themes in the long term. need to make sure you have liquidity. you can find yourself and run good businesses. and that is more important than those general trends. we are investing for 30, 40, 50 years. francine: this digitalization the hardest because we don't really know where we will end up? >> i would say digitalization was happening because of cloud computing and the supertex companies getting into cloud computing and the event things that go to your ipad every day today and your phone, it is amazing what has

changes in resilience investment, in green investment, new investment, in data centers along with deglobalizationte -- which may limit capital inflows into our country. you look at market estimates. you look at financial conditions. or you look at the current strength of the economy. the neutral rate is far higher than the fed supposes. question was larry summers speaking with david westin following that hot u.s. jobs report we can dive a little bit more deeply into that now. we will look at the morgan stanley chief u.s. economist on friday. she was talking about integration specifically and the impact on the labor market. jay powell has said because of immigration, you have bigger economy. not a title i. this was well illustrated in the jobs numbers. the white line. look at that crocodile mouth opening out. stoking wage pressure. you can see the impact on the stock market on friday. good economic news, good for the market. a strong economy expected to power corporate america even if it means rates higher for longer. is bloomberg. ♪ anna: good morning from london. asian stocks follow wall street

along with deglobalization which may limit capital inflows. you looked at the fundamentals, market estimates, financial conditions or the current strength of the economy, the evidence is overwhelming that the neutral rate is higher than the fed supposes. haidi: former treasury secretary larry summers speaking with david westin. we are hearing parliamentary testimony from the boj governor speaking in parliament in tokyo, commenting on super location of policy, the first year responding to questions about economic settings and saying the economy's recovery enabled the move on policy when the po j off did for lift off. some, suggesting the next rate hike could, in the second half of 2024, the chances of meeting christ target are rising. her uncle's unhappy. i'm sensing an underlying issue. it's t-mobile. it started when we tried to get him under a new plan. but they they unexpectedly unraveled their “price lock” guarantee. which has made him, a bit... unruly. you called yourself the “un-carrier”. you sing about “price lock” on those commercials.

promote dollar usage and globalization at a time when that is more important than ever when we see deglobalizatione dollar. sonali: nic, thank you so much for your time with your contrarian views. that was castle island partner nic carter. netflix, reporting earnings with netflix setting a high bar for added subscribers. it is our stock of the hour and it is up next. this is bloomberg. ♪ ♪ ♪ relax into a caribbean state of mind. visit sandals.com or call 1-800 sandals. sonali: this is "bloomberg markets," and it is time now for the stock of the hour. netflix reporting first-quarter results after the market closes today with analysts expected to generate another strong quarter of growth in subscribers upwards of 5 million. the stock has been on a tear recently adding roughly $110 billion in market value alone. let's discuss it with mark douglas. how do you feel about the pace of subscriber growth? do you think it is sustainable? mark: no, i think it is coming primarily from the path -- crackdown on password sharing. i think that netflix can definitely increase subscribers, but it is not going to be

it doesn't look like it is anytime soon that that deglobalization from both conflict is going to come yes, i do think ukraine is toast. i think russia has already won. i don't think the uk as the stomach -- doesn't have enough ammunition, france doesn't have enough troops, and i don't know that america wants to put their energy there. america at the same time is creating some of the world conflict, creating inflation on the other side of the world. if you look at the fact that america put 2000 green beret troops on a taiwanese island close to china, it sends a message to me that, hey, this thing ain't over, and with that comes risk of inflation, which affects assets like real estate. katie: a lot to dig into, but it sounds like what you are saying is structurally there are long-term forces that are going to benefit real estate. we could keep going on that, but unfortunately have 90 seconds left with the. joe: i'll just say this on inflation, i do think tomorrow's cei report is going to short-term shark people how much it is coming down. we got fooled by car insurance rates and things

sonali: you also alluded to just now the changing rules of trade, owing to deglobalization. have been a lot of worries about the type of inflationary effects. angel: some of them are addressing conflicting objectives. we are trying to address climate change. it's very important for climate change that the price of carbon is high, but also the price of clean energy is cheap. then you have china that has become the leader in electric vehicles. they are cheaper than other places and they are exporting them. there's a trade-off. do you want to have a cheaper transition or do you want to have it manufacture domestic jobs? that's an example of how these different objectives can conflict. sonali: we will be looking for the imf spring meetings. how do you look at the confluence of issues heading into it? angel: with the firm needs to address is these two factors. how do we live in a world with high debt to gdp ratios? president macron said he's not planning to reduce below 5% this year. or the case in germany where you have this conflict between a strict debt break rule that is limi

we are going through deglobalization.he starting conditions are changing dramatically and i think the starting conditions are it is negative as we have seen in a long time. jonathan: is that a low bar for upside surprises? peter: to be the biggest disconnect in the economy is people still want to believe it is globalization and china's working with us. i am on the other seida that. -- i am on the others of that. jonathan: peter will stick with us. live from new york city come equity futures positive. this is bloomberg. ♪ jonathan: beginning q2 in positive territory on the s&p by 0.1%. the russell up by about .3%. a little bit of outperformance. it was bigger earlier in the session. i can tell you about the long end of the curve, up four basis points this morning. you theory is later this year, supply reasserts itself. one? why? >> we go back to the stories that drove us to 5%. you see all those things playing together. i think commodities will continue to be a good story. when you start looking at all the things going on,

a trend of deglobalization and decarbonization to increase the cost of energy. lot of uncertainties for inflation. it could make sense for central banks to acknowledge that and give them more leeway. what has been remarkable since the covid crisis is how the fed and global central banks have never lost inflation credibility. if you look at inflation expectations from the university of michigan or break even inflation, they have been remarkably fast and fading inflation much ahead of the realization. it shows you inflation credibility from central banks there. the rate is high for central banks to step away from the inflation target because so far they had a lot of benefits from that. >> when you talk about the portfolio and one what should be doing on the back of this, it comes down to europe and asia and the u.s. let's take the u.s. with the 60/40 portfolio hasn't worked well because the relationship has been tight with the two asset classes. now we could have a higher for longer situation with rates in the united states, potentially a little more volatility in

that the country has turned into such... an appendage of china in the context of trade wars and deglobalizationtionally complain that they cannot afford real estate, but the main problem, of course, is connected with the war with geopolitics, this is not only australian submarines, i will remind you of what the americans are now stationing at northern bases in australia. they will really try to pump up their b-52 strategic bombers, and australia will really try to pump up weapons and, in the event of some kind of conflict with china, use it according to ukraine’s scenario, in which case i’m afraid that for the australians this will end very, very badly. it would seem that where we are and where australia is, but the waves from any changes, and especially from the plans of the destructive americans , have the ability to exert their influence on other. our big planet, including russia, so we look, observe and take timely measures. maria butina, the heir doll, was with you, now is the program time. hello, the program is about the most notable events of this day. first person document. vladimir put

is trying to say is the backdrop of growth is coming from productivity, onshoring, reshoring, deglobalizationrajectory. we heard david kelly above 2%. he was baking in 2% growth for this year but it is heading higher. we see that continually with consensus from the fed. when we put all that together it makes inflation stickier. we know there is concentration of wealth this country. high rates have been beneficial. almost like an atm. charles: yeah. >> for the same people invested in the atm names, that was the second atm they could go to this year. high rates have been almost good for that portion of the consumer, a la, amex, some of these names continuing to hilt their all-time highs. charles: right. >> how do we then think about the market and where that plays out? i think where you just say not all companies are created equal, if that is the macro theme. we're not completely in control of which way the data goes how do we think about you know, making changes in the underbelly of our portfolio. charles: have you begun to make changes to that? >> yeah. charles: what are you doing? >> i think

few have yet to consider the secular pressures of deglobalization.eturn to secular 2% inflation without the sustained period of growth unemployment seen rising from 3.8% to 4.1% by the end of the year 50% of respondents say the fed cannot hit the inflation target without growth running below potential and a .50% increase of employment rate. how much the economy has to weaken for the fed to hit the 2% inflation target is one of the pressing questions of the central bank maybe we'll have a chat with that with chair powell next week becky. >> steve, this is interesting. you can have your cake and eat it, too. maybe it is not realistic. >> reporter: i think the idea of having to give up the cake or eating or the part of the cake is daunting on forecasters and daunting on the market as we get down to the level where it is harder and harder to push and get to the target. that is the question that raises the issue of the sacrifice ratio. how much does the fed want to give up to get to target will it sacrifice below trend growth or will it say 2.5% is good e

we have deglobalization, we have re-shoring, and hot conflicts in two parts of the world where commodities 2.5 to 3% inflation as a steady state that feels about right. we are also in a place where growth is likely to be higher than the 2% which we had post global financial crisis. i think this is the new normal. we have had hiccups along the way, but this is not feel problematic. we have lived with 5% inflation quite well. lisa: is not problematic for google or microsoft but it is problematic for smaller companies struggling with highly leveraged balance sheets. at what point does that become a problem for the broader market given the steady drum in the backdrop? alicia: there has been a bifurcation it is the slow ringing out of excesses in all of these challenge balance sheets. there was a lot of hope last year with the pivot that this asset class would finally rally. still 25% below the high of 2021. it is happening across the economy to smaller businesses. the larger companies in the u.s. termed out there debt, meeting just like households -- large companies sell bonds -- the bulk of t