and so in partnership with the racial equity we were given racial equity action plan but the nature of homeless really intentional to have the internal and external strategy side by side and making sure we're having programs read into the record to the homelessness and responding to um, the transcommunity and by 2027 and the efforts i'll go into more detail later on in the presentation and then really making sure a comprehensive nature to the way our office alcohol beverages with each division to make sure that not just vote one off but digital into the intentional strategy of hsh and different internal needs with respect to the racial equity straining and dynamics one of the team the first area we are the first to in the department i believe don't quote me but the first to leverage the train for the personal raise racism and then individual racism they understand that is manifest within our ourselves but how the - our realities externally; right? we are currently undergoing the third racial equity training and the figure that in february. um, i'm proud to say all the staff has been tr

equities versus non-u.s. equities. i've said for 15 years europe is great for vacation but not stocks. >> what about utilities? do you see value there? >> i kind of do. i think these things that really got sold off in q3 because the 10-year yield backed up actually have more achievable estimates than most other businesses. they're just safer. so, if i'm looking at -- if you guys are worried about the potential for a fear of recession growing -- everyone was wrong this year, there wasn't one, but maybe there will be, then all of a sudden i can buy defensive equities at lower multiples than i could at any time in the past several years. the problem is, 2018, you had to pay 30 times for defensive memes. now it's 20. the risk looks better. my view, i'm trying to find a way to get a basket of stocks to beat the s&p, i think some of those things will finally contract for the first time in a while. i bought coke at 20 times. had to do 30 before. >> emily, adam, thank you. >>> let's get to our "question of the day." do you thi

my bias is to be short bonds and on the equity side i am more neutral on equities. it is not clear to me that equities will necessarily rule over because u.s. growth is strong. the reason for u.s. yields going up is a good reason. alix: does that mean stocks and bonds will move together? what do you do with that? >> in general, bond yields will go up. i think they will go more sideways than anything else. equities are trading at the low end and may bounce a bit. on equities, it is hard to be clear in terms of direction. i would say it is really the larger companies doing well. maybe there will be continued weakness. guy: you're talking about u.s. equities as well. what about europe? bilal: japan i think is one area where it is not positive from a geographical perspective, but in general i think it is a u.s. equity story. alix: what about china? the latest news is they might increase the deficit. the market went, ok. the commodity market kind of rolled over. what do you think will actually come out of china and when? >> every week we hear stimulus news. in general, t

how big of a hurdle will that be on the equity space. >> i think the private equity has grown to a market so quite sizable. investors are piling in because they were attracted by high yields, high interest rates and a less risky profile compared to equity. i think that today there pulling off because when you think about investing in the next three to five years and locking in your capital for a long periods of time. some of these are actually referring to going to high yields. and on the others the private credit industry has been relatively unproven in times of challenges for bankruptcy so we need to see how they are going to deal with it because some of them do not have the infrastructure. i think there is still room going forward. lisa: there is still room but has the growth phase ended. this is one of the questions prayed we have private quite it -- credit ballooning. are you seeing the same thing in private equity or are you expecting it to be a 1.5 trillion market? >> i think you raise a good point. private equity today is not a growth asset class. for every three dollars that they

also underweight equities for ctas for example. the combination of max bearishness that tells you that the downside is probably very slow and that is a slight bit of good news. alix: he is trying. is there too much cash on the sidelines? you can make a point that it is therefore a reason. >> it is hard to pick a side. there are many reasons. if you look at equity risk premium at the moment, 10 year yields offering the same as earnings. if you look at cash yields is more attractive at the moment. it is getting harder and harder to ignore that. this leads to the fact that we were obsessed with and alternatives and all of the different acronyms. it has been harder and harder to justify owning those riskier assets like stocks and you have to be really good at picking the right names to justify it. guy: you talk about the comparisons we can make and we are talking in aggregate, if there is room on the upside for equities, the comparison with cash is real. you don't believe equities have upside, isn't cash the logical place to be? >> tha

we are neutral in equities, scott. we have a neutral position in equities. we are exposed to the equity market. within equities our view is you should be rotating into names, not the high growth names with profitability, but, instead, into companies that are stronger and can withstand some of the force that is will buffett them into 2024. >> by virtue of being overweight cash and investment grade bonds and neutral equities, your bias is negative on the stock market right now. it just is. >> well there are other places we can be underweight and i think that's important. we invest globally so emerging mark debt is something we have been more optimistic about. we are overweight and believe that the u.s. equity market is better positioned now because of the u.s. economy services led economy and are putting our emphasis in the u.s. from apers. >> you can like the u.s. better than the rest but it doesn't even sound like you're expecting much out of the first half of 2024 where you expect the conditions to last for a while in your mind. >> i think we are waiting fo

private equity, private credit. while we call them alts generally, private equity is really equity.pends on how you define these things. you have your private strategies, alternative strategies and then you have reals a at the times. in in terms of alternative strategies, what i would say is in this age of higher rates, there's frankly, less need for it because you can -- they're generally designed to offer the kinds of stability and returns, yield income that fixed income can. so i think we're seeing less emphasis on that. >> josh brown who is on our program today has a question for you. josh? >> hey, michael. isn't there some element of driving in the -- in the, you know, looking in the rear-view mirror? a lot of the quote, unquote, diversification benefit of private equity versus public equity or private credit versus public bonds really just comes from the fact that you don't have daily volatility, you don't have price quotes. the people that go a 90-day period of time thinking they haven't experienced the same volatility as we're getting in the public market, but then they find

most is coming from private equity and public equity. and if you compare last year, we had about similar overweight in private equity and public equity. this year we intentionally reduced the overweight in public equity. any questions moving to page 29? how did we do? were we compensated for the overweight in china? while alison mentioned, while the china performance [indiscernible] our china managers out-perform their benchmark. china benchmark by more then 7%. but this benchmark, beta was negative over that period since started overweight in china, versus [indiscernible] performance. that is for our public equity china manages a similar result with private equity, china manages again. it is younger portfolio. we'll conclude with the next slide reviewing active risk in our public equity portfolio. there are a few ways to look at active risk. one is to look at the active share. active share is it measure by how much the port folio different from the benchmark. we increased that active share and deviated from bench mark considerably start

equity strategist at ubs management.n you are not necessarily expecting another rate hike from the fed? guest: we don't think so. we cannot rule it out, but we think the fed is done hiking. we been watching the tighter financial conditions and we think that is doing some of the work for the fed. we heard governor daily echo that. we think the fed continues to see the need to proceed. if conditions remain at these levels, they will dampen aggregate demand. it should be no surprise that the fed wants to maintain the flexibility and optionality around an additional rate hike given the fact that inflation could stall out at a higher level. it's much easier to tilt hawkish in an environment where economic growth is strong. you can dollar back. shery: -- what is the outlook when it comes to treasury yields and how much pressure that will put on the stock markets? guest: we think that bond yields will decline. it's possible that the 10 year yield could hang out in the 4%-four .5% range. we think you will get that by the end of

to build a portfolio that is resilient, come generators, and secular growth equities. >> the equity riskremium is minimal now. perhaps it is a no-brainer to look at that instead but if you were looking at equities. i think you are looking at idea, an acronym you have come up with innovators, adapters, disruptors. >> they are companies that will be continuing to be evaluating change in the way we live in. examples will be the headphone, the smartphones, the cloud computing companies platforms. these are also disruptors. they disrupt the status quo. these are big winners. ai is another, i would say catalyst of this. really phone companies. we also included not just technology related in this frame world, we have adapters, they are traditional companies, brick-and-mortar, but able to adapt to the digital economy. companies that can pivot to that. >> ai will be figuring this too. also touting private equity and private credit for resilience, but it is a tough nut to crack that one. >> if you look at it long term, it returns from private equity, private debt, pretty much, not beta or market d

european equities rise, selloff in the bond market, but equities are up. there are some interesting themes in the market today. polish assets, insurance companies, polish stocks all doing well on the donald tusk victory, getting close to a victory. polish assets responding strongly to that. by 13 points. shell is up by 1.3%, record high. we had been seeing a number of factors driving this. the most interesting one is that this is a company that pivoted away from renewables. it decided it was not getting the rate of return it wants, not getting the rating it wanted from the market. it wanted to be valued more like u.s. majors. maybe some evidence that that is really working. alix: shell sold its shale assets in the u.s. will they have to go back in? yields up, stocks up. go figure. 10-year yield up by eight basis points. stocks don't care. the s&p is up by 8.2%. tech outperforming, up by 1.2%. charles schwab up 6%. however, net interest revenue, 24%. we know why. clients moving cash into higher-yielding products. the upside is they think that trend may have

matt: private equity, a lot of these big private equity shops have become private credit shops. know they have not been completely overtaken by that but they are doing private credit as well. sonali: most of their rivals have been seeing their other businesses grow to be larger part of the pie. kkr, the second-biggest business is really state. you considered real estate separate from private credit are the same? think about the regional bank system and you see commercial real estate loans be some the biggest areas were companies to step up in private credit and up to the floor. you take a private credit end of the state together, kkr, blackstone, apollo, they are way bigger than the private equity businesses. are the prices in debt market frothy? time will tell. kkr pitching it self is a bigger finance or for the picture leveraged buyout is happening. leveraged buyout's have to work out for these packages to make sense. that the looming question underneath the market for kkr. matt: great to have you. sonali basak interviews the most important people on wall street and we are gla

to assume equities are going to go up 7% or 8% and private equity is going to go up at a huge premiumh it has continued to be a premium to the public markets, it is more nerve-racking when you are flying in the face not of bond yields declining from 15% to 1.5%, but from 1.5% to 4% or 5%. alix: that was ralph, evercore chairman emeritus. let's get into that point, what do you do as an investor if your positioning for this volatility in a regime change? there is no one better to talk to about this. penny pennington is a managing partner at edward jones. edward jones, $1.8 trillion in client assets. that is adopting figure. -- a daunting figure. you heard ralph say that going up is not a thing anymore. bonds are a different profile. what did you see? penny: we have the blessing of being in the living rooms and kitchen tables with 8 million clients across north america. we know what they're concerned about and we are focusing them on their long-term financial plan. we have been advocates of a well balanced portfolio, they are being rewarded for cash right now. we see signs of sector orie

equities to go in the same direction.ay and that's an area receipt european equities down 15% -- in that scenario we see european equities down 15%, 10% for u.s. equities. guy: when do you buy the dip? sebastian: the moment the macro cycle has troughed. you put in on a special through monetary tightening and the economy hasn't responded -- you put on enormous pressure through monetary tightening and the economy hasn't responded. it is going to feed through to a very weak credit cycle. the fiscal support as temporarily masked the weakness. you buy the market once you think the last -- we expect that to happen in q1 of next year. two quarters of deceleration, falling asset prices, and then a trough in the macro cycle at some point in q1. alix: where would you buy in the market sectorwise, then? sebastian: the moment that -- let's fast-forward and assume you go from this very strange and conflict environment back to the classical slowdown scenario. the moment to buy is risk premium of peak, and then you look at the things th

tom: can this equity markets -- jonathan: can this equity market lived with it? equities could work in a hybrid environment. the s&p 500 returned 15% every year from 1985 to 2005. when will rates were 2.5%, can we live with these rates? lisa: this is a key question. you are saying an increasing number of analysts come out and capitulate, whether it is morgan stanley or goldman sachs. yesterday, tech stocks outperformed. where is it going to hurt? it is counterintuitive. jonathan: manufacturing is getting better, not worse. payrolls on friday. tom: the numbers are getting better. lisa: on one hand you could say you are seeing a resurgence in manufacturing but prices came in lower than expected. this is the hope, people are hoping we get the immaculate -- tom: the immaculate implosion is going to be commercial real estate. they are short futures, not 30 year mortgages. everybody is going to refinance. the 10 year real yield, i have lost perspective. 2.33% is a mugshot. jonathan: from city -- citigroup, here is his stake -- his take "if that move above 50 materializ

and that necessitates a different discount rate for equity earnings and i do not think the equity marketas caught up with that yet. alix: that fields hugely disruptive and i want to talk about the hardened value like harden equity or credit and sometimes you can make an argument that that is more destructive in terms of capital increase. ralph: certainly, if you think about and equity that is levered four or five times and the cost of the debt has gone up 500 basis points, that is a lot of xstrata. guy: give me what you think the order of magnitude you are thinking about. if you are out of the 40 year bull market and yields will no longer continue to go lower, wanda's order -- what is the order of magnitude? ralph: we will not have a massive decline in equities. what we will have is a long period of sideways movement while earnings catch up with the new discount rate. so we will grow our way into it. guy: in a world with higher nominal inflation you are -- then you are falling behind. ralph: yes you are. alix: what do you do with that and how do you make money in that environment? guy: d

if you look at what is happening in the rate space and what is happening in the equity space, the equityction has been moderate. i'm not much of a risk premium priced in the equities. what is a consideration in that regard is credit spreads have not widened the last two weeks. that goes to show the market is not really pricing a lot more risk than it did just a few weeks ago. what is happening is the discount rate has gone up and equities have gone off the back of this. risk aversion has not gone up much. if that were to happen, the downside on the equity market would be more significant. i don't think the market has been on the edge when it comes to the government shutdown. it didn't really matter that much. i think what really matters with regards to the u.s. fiscal policy is that we see a substantial stimulus on the first half of the year. the government shutdown doesn't really change the needle here. i think it is very difficult for the u.s. and the government to repeat that stimulus into next year which would require growth from the first half of 2023. that goes to show u.s. policy

we have invested in equity and debt.ortfolio is already returning a 20% year on year annualized. we are raising a new fund with that. and that fund has 35% anchored by an existing lp. not so bad, actually. >> how big is that fund? parks $102 million max. >> fully private credit. >> correct. >> ok, do you get a sense that they are leaning more towards debt these days than private equity? 20%, how do you do that? >> 15% of that is yields and the 13% comes from equity warrants, and we do see from both the equity and warrants side, and equity is particular strong. multiple markets on the leader stage has been ok thanks to the flight to quality. we have seen people being more aggressive with refinancing earlier rather than later. it's ok to take higher interest now versus pushing it back to where the fed has continued rate hikes. >> what are major things that you follow, looking broadly, with the carbonization, democracies, people get older. and de-risking or decoupling. does that play into what you're looking at? >> yes. we

the only real play in the equity market is through rising equity risk premium.ve seen that but you have to wonder how much of the bond market weakness is related to these concerns. we think of it as purely monetary policy dynamics and the components of supply and man can be jura by more than monetary -- can be driven by more than monetary policy. >> if you look at gold and swiss, they have outperformed b enter up until now. they were the more defensive hedge and we were slapped when we said treasuries were ahead so it was swiss and gold. ♪ (jennifer) the reason why golo customers have such long term success is because we focus on real foods in the right balance so you get the results you want. when i tell people how easy it was for me to lose weight on golo, they don't believe me. they don't believe i can eat real food and lose this much weight. the release supplement makes losing weight easy. release sets you up for successful weight loss because it supports your blood sugar levels between meals so you aren't hungry or fatigued. after i started taking release,

for equity. that can be used for positive subsidy that requiring. in particular difficulty at the moment, ukraine and being an example. go with technical assistance and technical assistant grants as aa tool given to us by the build back we did not previously have. all of these different tools compete for that pot of subsidy. equity at the moment for every dollar that we invest in equity is using a dollar of that appropriation. as if it's a grants. there's no offsetting asset by virtue will lose one 100% i don't believe dfc is the highest record at the extraordinary private equity investments shows on average high single digit returns i don't think will be in the vat. this is a real constraint it means we are constrained by the appropriation. we do not get the kind of leverage with your lover and our leading activity. last year for $7.4 billion of transactions we did roughly half a billion dollars of that was equity. the rest with debt and political risk insurance and a tiny bit of capitol. >> a m

i find this fascinating in the equity market.esting. to the degree that you can get yields for more distressed entities are more rate sensitive entities, investors who are interested in playing the yield story are forced into the bond market. there is not a yield opportunity in equities unless you go to repurchase yield, shareholder yield, where they have found some degree an opportunity. it is frustrating that corporate's have not migrated relatively quickly. there is a lot of cash that could be deployed on s&p 500 balance sheets. lisa: feels like the market has been holding their breath. when can we write the book on this chapter and go back to normal? suddenly, that is changed. people are saying, what if this is the new normal? that becomes dividends and maturities. that is where you have real discussions of what does this world look like in terms of investing in orbit finance. coming up, how oil plays into this space. amrita sen joining us. you got this. let's go. gobble gobble. i've seen bigger legs on a turkey! rude. who ar

-- where equities go. we had the s&p 500 recouping most of its losses during the last few minutes of the trading session in new york. but not enough. we ended the day unchanged. it was interesting that the nasdaq 100 outperformed. we are talking about gains from the likes of make caps like microsoft, nvidia and apple. this, coming at a time when the treasury rout resumed in the 10 year yield touching the 1.470 level, since the first time since 2007. the 30 year yield at the highest level since 2010. we had positive data. we had u.s. factory output. it was a contraction but it was the least contraction in a year. that reinforced the fed narrative of higher for longer. not to mention we got more hawkish comments from fed officials. that did not help when it came to treasury yields shooting higher. we had been watching what all of that means for the dollar. stronger pressure on the commodity space, and wti at the moment trading below the $90 barrel level. paul: j.p. morgan ceo is warning clients and investors

there is enough equity and the shift in the investor sentiment towards indian equities.eta rajani, thank you for joining us from anand rathi wealth private wealth management. i did not get to ask you about the world cup but we will be discussing what is going on with the cricket nation in india as it hosts this tournament. this is bloomberg. ♪ rishaad: right, having a look at problems with ticketing for india's cricket world cup. really garnering the ire of fans and threatening a soft power push from the prime minister. tell us a bit more about what is really happening here. >> right, the cricket world cup is being held in india and it is off to a rough start. there has been a lot of chaos around the sale of tickets. on sunday the board of control for cricket in india in a surprise announcement said it would be selling 14,000 more tickets for the match. a much anticipated match between india and pakistan. the match was sold out until a week ago. fans were caught off guard. it led to a lot of chaos. and viewers claimed they were able to purchase tickets for the match betw

this is to address how your equity is scored. the bill does not amend the fair credit reporting act to be clear for those who are concerned about it. you created this mechanism to assess the -- equity. and it would allow the dfc with smaller amounts invested to have larger amounts of private capital. that is my understanding. i'd be very interested in hearing from you to what extent is the current scoring of equity serve as a constraint of what the dfc was able to do. are there specific projects that you have had to forgo and how would that do in terms of competing with the prc and the development impact which i think is to be the focus of everything. and, if we have another few minutes after that, what other key priorities do you we have before we get to reauthorization that we have to address in the near term? >> thank you for the question. of course, for all of your support. to make the equity problem simple, we get a program budget and appropriation for program funds that can be used for equity, positive subsidy, debt transac

we are more neutral on global equities.to say you have equity selloff sharply without a significant slowing of growth. we are seeing a moderation. what is interesting in the equity market is why haven't they sold off more? we had a 30 basis point rise in yields in the last month. why haven't equities sold off more? it is because growth has held up extremely well. markets are pricing in the better growth outlook and policy being higher for longer. without having growth slowing sharply it is hard to see equities selling significantly. guy: if i have money in a money market account and i am looking to deploy that money in my buying equities or are yields now high enough i can start buying duration? thushka: within our multi-asset portfolios we are positive on duration. i would say modestly so. what is holding us back from taking bigger positions is the volatility in this market. we need more certainty the fed is pausing its hiking cycle. we do not have that at the moment. in terms of asset allocation i would say the main chang

so you talk about equity jurisdiction and using equity to talk about write law versus equity, right? i had but i did. i did that the other day. oh, i know what it was that i was talking yesterday at another setting. people are talking about repo operations and i was talking about the concept in equity. there's law and equity. i don't know if everybody knows what that means, but equity was fairness. equity was supposed to be exercise sizing the conscious of the king. and so law says that if you steal a loaf of bread, your hands must be cut off. this was lining england a long time ago. equity might say if you still a loaf of bread because you have eight children who are on the verge of starving. and if you don't steal this loaf of bread, they're going to die. tonight, we will say. we will give you a break. equity, we'll say you were up against the wall. and so just out of, you know, fairness and in a sense of justice, we will not cut your hands off this time. that's the nature of of of the difference. but anyway, there's a conceptedn equity that says if somebody stole your property and

david: let me ask about equities. it doesn't sound like risk assets are really attractive, but let me draw from your fifth force, and that is innovation, creativity, a.i. is there an exception right now in the allocation of equities when it comes to big tech for a.i.? >> this, in my opinion, is going to be a super huge impact. i think it's going to be an impact. then there are those who are doing it, and then there are those who are going to use it. i think a lot of those who are doing it are in a bubble. they're very expensive, and they themselves will be disrupted by others. it's the nature of that beast. it's very, very difficult at these prices to do that. those companies that are really knowing how to use it and to gain competitive advantage will do well. david: a.i. overall for the economy, is there a chance of letting it help us grow out of the government debt problem? because if we really increase productivity, that must help us with the government debt. >> certainly. it can have an enormously beneficial produ

the economy. >> within equities, if you say equities are reflecting that, do you want to be overweighthe more defensive part of the market because the narrative has become more downbeat or are you sticking with cyclicals? >> this is the environment where the portfolio must be skewed to the approach with the names in the sector. no doubt about that. >> antonio, let me go back to what you are saying about the shadow hike. i think that is the language you described with what the fed issued last week. because the situation on the ground and the economic back drop in the u.s. is much better than the analysts were pe pencilling in, they raised the outlook. where do you stand in the camp of soft landing versus rec recession? some have eliminated the possibility all together. >> soft landing requires a difficult alignment. you need to have many conditions being satisfied in the same time before it is a very difficult target to achieve. obviously, the fed cannot say anything different and it is legitimate with the outcome. to be honest, in this environment numbers and data reflecting a strong u

the japanese private equity sector.od time. shery: what do you think is the biggest change that japan needs right now? >> if you look at all the systems, taxation, accounting system, and all aspects you can see the good developed market. it like the u.s. or the u.k.. the same way. and transparency, everything is good. just japanese management of the industry sector people, they tend to see more stable change in the industry or market. but we would like to give them a good opportunity to use the private equity money for them to seek good growth in the industry sector. they gradually understood how to utilize the private equity money for their growth so as i said since 2015, -- transactions will be huge as well and many business succession cases from family business also took place in many occasions. we see a lot more opportunities because they got accustomed to the private equity ney or behavior. in all senses. paul: all right representative and director at integral, thank you for joining us. we do have breaing out of ja

equities under pressure. session lows.lasses, but equities are under pressure. the cac is down around 1%, ftse around .5%. it is fairly mixed, but volume has been picking up. i will share this chart, then we will talk about individual names. feels like a market moving more in one direction. down by 1.1%. we have been moving lower and lower. we did get an acceleration to the downside as a result of that jolt move, but it has not jolted the european market as much as the u.s. market. single stocks -- ups downgraded burberry. boohoo down, earlier it looked worse. they are pointing to a less positive picture. it is interesting. it would be interesting to see whether or not you see people pulling back in areas like fast fashion. maybe they are spending in areas like that. some of the big heavyweights have been under pressure. down by 3.46% antofagasta. the other area is utilities. they have been under real pressure. you think about the move out of the bond market. utilities front and center when he think about that kind of yiel

private equity, local sports teams, sacramento kings.nues based on what was put in place? >> private equity has already -- always been part of our dna. it was not long ago that we did a 10 year look back on our private equity returns and access to the markets and what we found is we can do better. the asset allocation approved by the board in november of 2021 actually removes the private equity allocation from a percent to 13%. what you can expect to see in november is the team coming forward with a recommendation to include it -- an additional four-5% allocation to private equity and another similar investment in private credit. the entire team is really rallying around and asset allocation delivering a 6.8% return. >> i want to go back to the search that is taking place. one of the big challenges for public pension funds is that there is a lot of political scrutiny on the person and low pay continued -- compared to a private asset management job. i'm curious as to what your sales pitch is to prospective candidates on why it is worth ma

i was talking about the concept in equity. there is law and equity. i don't know if everybody knows what that means. equity was fairness. equity was supposed to be exercising the conscious of the king. the law says if you still -- steal a loaf of bread, your hands must be cut off. the law in england a long time ago. equity might say, if you steal a loaf of bread because you have a children on the verge of starving, and if you don't steal this loaf of bread they are going to die tonight. we will say we will give you a break. equity will say, you are up against the wall. just out of fairness, and a sense of justice, we will not cut your hands off this time. that's the nature of the difference. anyway, there's a concept called constructive trust in equity that says, if somebody stole your property and build on it, and increased it, and made a hotel out of it, and it belong to you, but it was stolen from you and your family, when equity finds that out, equity will stop that person and impose a constructive trust on that, and take back the ill- gotten gain

equities down for four weeks. coming up with the back of the strongest quarter of the year so far. 11 we of euro weakness and dollar weakness. we are negative by .3% on dollar-yen. it is closely to 150. and last week boj had a nibble at the japanese bond market for it to do more. lisa: wednesday there will be another on purchasing nomination in japan. this is their fourth unscheduled bond by operation in -- since july. and there is a push pool with the currency and bond market. they are moving at odds with one another. if they support the market they will basically weaken the currency, if they weekend the currency, -- that changes things. it feels like it is increasingly unsustainable. jonathan: is it too early to draw conclusions based on but there -- thoughts are? lisa: i don't know. it seems like they are spinning late. -- spinning plates. they are biding time. i'm not sure if they are choosing one or the other they are laying them off of each other. jonathan: strategically moving. if there is a strategy there,

asian equities on the way down. oil and gold on the way up all on as splitting tensions in the middle east and the yen nearing the key level of 150 putting traders on the alert for a possible intervention. fed chair powell signaling interest rates will stay on hold while leaving open the possibility of a future increase. china public, the most liquidity on record by short-term loans as banks keep encz mark rates unchanged. our exclusive chat with the u.s. ambassador to china. nicholas burns on the israel hamas war and tensions in the south china sea. yvonne: the markets, the narrative seems to be pretty much the same all week. we are ending on the third week of losses when it comes to stocks. stocks are lower. dollar is catching a bid. gold is catching a flight to safety. dollar-yen, 150. watching bond markets closely. extraordinary volatility we have seen. at least we are seeing yields temper a bit. the 10 year jgb yield is when we need to focus on. 0.84%. whether we do see some buying from the boj, they are offeri

and we have to focus on equity. but it is a hallmark of everything we are doing in our administration to try to make sure that we have equity as a piece of everything. even in the positions of importance and throughout my administration, you know, we have the most diverse administration in the history of the state of illinois. we are in the middle of the midwest and it is relatively newer to the midwest i would say to focus on diversity and equity and inclusion, but it's the watch word, it's the thing that everyone comes to work in our administration knows about us. and we are doing it in the leadership roles in the most important agencies that never had a leader that is black, hispanic or a woman that we have done a good job of finding highly qualified people who happen to be from diverse backgrounds and bringing their knowledge and different backgrounds to the table to help us run the state. >> governor pritzker, i am about to run sprawled of time, so i will give you the last 30g seconds or so to add anything else

they are talking about this low equity risk premium.hey are looking at is the correlation of the s&p 500 to real yields. we know of course that is deeply negative. what it signals perhaps is you are getting low returns from holding riskier assets like equities versus what you could get from holding something like cash, short dated securities, government bonds. in general. goldman sachs says it's going to become even more difficult for u.s. stocks to continue to digest fed rate rises in this environment. we should note they do not expect another fed rate hike this year. haidi: is that the consensus? what are we looking at when it comes to bets on the fed? annabelle: taking a look at what the traders are pricing next year, around 50 basis points of cuts, but state street is seeing more than double this, around 100-200 basis points of reduction. why exactly they are saying this? a couple of factors -- slowing growth and the moves in inflation. they are saying essentially u.s. economic growth will slow to 1.1% by next year. inflation as wel

equity industry has long claim it had does not pose systemic risk to the u.s.it ratings agency moody says not so fast. things could be changing. according to a new report, moodies now expects a race to the bottom between banks and private credit funds financing what they call risky leverage buyouts. banks are starting to up their p lending hit for those kinds of deals and facing competition from the $1.5 trillion private credit and moody thinks that perfect storm of event causing prices and terms and credit quality to erode and fuel risk. we know what risk did in 2007 and 2008, the financial crisis and pe firms using private chet is not new though. private equity thoma bravo overseen 450 acquisitions and fund the $8 billion purchase of cupa software and orlando bravo is here in fox business exclusive. what do you think of the warning flag? >> liz, thanks for having me and great to be here. liz: great to have you. >> look, i want to establish this onset and people not putting in the capital, owner, private equity firm and management invests greatly in the doles

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the nordic private equity stock down 7%. talking about a slower fundraising environment, talking about the fact that they are thinking about novel ways to deliver on exits. private auctions is one possibility. this is traditional exits the private equity market would normally use in the public market not working right now. we will talk more about this in a moment. alix: alix: i am very surprised the s&p is only down .2% despite the fact that the 10 year yield is jumping higher 11 basis points and we get hot retail sales. it is not just that they missed estimates but they re-accelerated to the upside. the sox is not helping, this is the semi-index, on news the u.s. could limit nvidia chips to china. we also has asml tomorrow. something here does not make sense. we saw the same thing yesterday. i want to point out dollar-yen. overnight was that whippy. there were headlines the suggested the boj would update its inflation forecast. it means inflation over 2% for three years and the market definitely reacted. as of this moment i

he's already low on equities. this was like a hedge he has had on for a long period of time, and i wanted to preface with that. it's not like all of a sudden rates are down so my exposure changed to go way up. >> i am glad you cleared that up. he's not saying put money in equities, and i am guessing he says don't put money into equities because it's a dangerous backdrop. the damage has been done with where rates are, and that the the fallacy is that we stopped raising rates. and what she pointed out was the damage to the economy. >> you mean the lag affects? >> yeah. why do some pockets of consumer spending stay there? i will tell you why i think. i think because with free money being around 15 years, people are not paying attention. people are saying, what do you mean i could have gotten x plus for my house 16 months ago? what do you mean i have to take less for it? so there are the lag affect on the interest rates, and they are not even looking at the rate on their credit cards -- >> this is coming back to what

european equities, the market is littered with 52 week lows.es, natwest, the margin guidance has not been greeted well, down over 11%. electrolux. go across the sectors. you can find this on the bloomberg. in every sector, there are 52 week lows. very few areas are avoiding this now. really big names are under pressure. the stoxx 600, the last five days, rolling over. in reality, we are not down the index level by very much. it has been a choppy ride. earnings is having a big effect. we continue through the numbers. the close coming up next. looking forward to dealing with the numbers. tough week, we are nearly there. this is bloomberg. ♪ e ink business premier card is made for people like sam, who make- everyday products, designed smarter. like a smart coffee grinder, that orders fresh beans for you. oh, genius! for more breakthroughs like that- i need a breakthrough card. like ours! with 2.5% cash back on purchases of $5,000 or more. plus unlimited 2% cash back on all other purchases. and with greater spending potential, sam can keep making s

equity market -- and plenty of trauma in the equity market.have a running in crude. wti is getting closer to 90. tom: visit for the sophisticates -- this is for the sophisticates. that is really a team leaf of -- tea leaf of the tension out there. leslie, i have to go to when your recent essays, everyone in your world is writing and thinking in looking back and forward. you look back and say america went off the watch in the labonte. what did we do wrong? >> there is a sense that with the withdrawal in afghanistan, as tough of that -- as tough as that was, america could focus their priorities are teasingly on china and that with checked by russia's invasion of ukraine that brought america squarely back to the euro atlantic, with full force with nato. there has been a hope and a belief that this was a president that will finally execute on that intention of so many american presidents to reduce america's footprint in the middle east and to focus on the strategic priorities and number one with china and this has shown in spades that america is a

tom: what about in equity. everyone is like equities are not being hammered by bonds. we will look at price down in bonds. in equities, will we enjoy price down and diversify, or focus by sector bets? eric: i think priced down modestly over the next quarter. that gives you a chance to do a couple of things. we have been saying tech has been a great winner. the earnings momentum is there. earnings expectations are lofty for q1 and q2. we would be overweight technology but trimming back some of the excess return. the second area that we think is attractive is energy. this was the darling last year. it is at a very important technical level now if you look at the variety of different utilities. we are sitting at key levels. gy market is the discipline from corporations forced by shareholders. energy is interesting. the other variable that is key is what happens to utilities? that area is tied to the bond market. it is also seeing multi-years of support at current levels. those are key variables to pay attention to. we would still be involved in tech. health care long-term

i was talking about the concept in equity. there is law in equity. everybody knows what that means. equity was supposed to be exercising the conscience of the king. law says that if you steal a loaf of bread, your hands must be cut off. equity might say, if you steal a loaf of bread because you have eight children who are on the verge of starving and if you don't steal this loaf of bread, they are going to die tonight, we will say, we will give you a break. equity will say, you are up against a wall. just out of fairness and offense of justice, we will not cut your hands off this time. that is the nature of the difference. there is a concept called construct of trust in equity that says if somebody stole your property and built on it and increased it and made a hotel out of it and it belonged to you but it was stolen from you and your family, when equity finds that out, equity will stop that person and impose and take back the ill- gotten gains and give them back to you and i have thought along the way that in america, there was stolen labor from black people, which helped build ame

a shift in the equity market to see rates move higher.rates moving higher because the economy is doing better and what does it mean for the fed and stay higher for longer than what the fed is telling us. it's not because of inflation expectations and see how sentiment changes and rates come down and 4.75 level which we could see in the near future. >> always great talking to you. and in terms of the flying tweets and calls on the broader bond space given the volatility, some of the sectors saying the historic treasuries has gone too far. and calls in hong kong. we heard from bill. >> just the social media posts been flying. bill posted on x formerly twitter said we covered our bond short. very simple and very short as well, to the point and now unwound his bet against u.s. government debt even though it has been a profitable trade. the reason he has done that, let's dig into the details bill is saying that he is actioning that bearish position on government bonds because of the rising global risks and not just talking about geopolitical h