gershon: all relative high-yield.ya: when you live in this relative world, bund yields are still negative. the problem is default risk is extremely low-priced. maybe if the economy is ok, that's fine. you should have a hedge for that. i would argue liquidity risk, just a year ago, we went to a liquidity scare in the fourth quarter. what if you have any year-end funding issues? is credit, particularly the riskiest part of credit, more susceptible? having some hedge, treasuries are cheap as a hedge or against any risk asset. jonathan: there is a cycle that keeps on coming up. krishna, you think four more years now. you seem more conservative on this, priya, about what is happening in the cycle at the moment. gershon, i'm struggling to get my hands around where you think we are in the cycle. gershon: i don't believe in cycles. it is too simplistic a way of looking at the world. you look at some of the industrials in asia, latin america, i would argue they are early cycle. you look at the industrials in the u.s., we are l

gershon: all relative high-yield.riya: when you live in this relative world, bund yields are still negative. the problem is default risk is extremely low-priced. maybe if the economy is ok, that's fine. you should have a hedge for that. i would argue liquidity risk. just a year ago, we went through a liquidity scare in the fourth quarter. what if you have any year-end funding issues? is credit, particularly the riskiest part of credit, more susceptible? having some hedge, treasuries are cheap as a hedge or against any risk asset. jonathan: there is a cycle that keeps on coming up. krishna, you think four more years now. you seem more conservative on this, priya, about what is happening in the cycle at the moment. gershon, i'm struggling to get my hands around where you think we are in the cycle. where do you think we are? gershon: i don't believe in cycles. it is too simplistic a way of looking at the world. you look at some of the industrials in asia, latin america, i would argue they are early cycle. you look at the

disagree with gershon, not the first time.he point is, inflation really has not picked up since the financial crisis. the rate increase that gershon was talking about, higher level of rates, was driven by what the fed was going to do. that is not going to be -- the fed learned its lesson in 2018. the policy tightening they implemented was a policy -- was a disaster, was not warranted, and they are regretting it today. when we talk about the rate cuts on a global basis, two different drivers. in the u.s., it was unwind of an unwarranted policy tightening by the fed. but overseas, things have actually slowed down meaningfully. if you look at the growth rate relative to trend in emerging markets, europe, things were significantly worse. those were warranted, here it was not. the tightening was not warranted so it is an unwinding of that , tightening. jonathan: you made one of the best calls of 2019, you said the most important thing will be the call on the policy and the response. to underline that, you could callgotten the econo

gershon: i do not believe in cycles.u look at some of the industrials in the u.s., we are clearly later cycle. the retail sector going through changes, a cycle isn't even applicable. i do not like the whole cyclical talk. drafted decompose the parts of the economy. jon: still ahead on the program, the week ahead featuring an fomc rate decision and a -- another meeting from chair powell. this is bloomberg real yield. ♪ ♪ i am jonathan ferro. this is bloomberg real yield. it is time now for the final spread. saudi aramco starts trading next wednesday. we will get u.s. cpi and 10 fomc rate decision. on wednesday, it is the swiss bank making their own decisions. the u.k. is heading for its general election. the consumer back in focus with u.s. retail sales. if i know run of thoughts with p krishna.shon, and the rest of the world outperforms the united states of america. where do stand on that debate? the world rest of models along. we struggle to see where the rest of the world gets the -- to the extent that deceleration wil

white house press secretary stephanie gershon said it has become an annual tradition, holiday traditionhe media to attack all the first lady does. if this was a democratic administration i suspect the work would be featured positively in every mainstream news outlet. social media responding to the nastiness. michelle says a magical beautiful christmas wonderland. the media should stop bullying milania and there was nothing michelle put on that wasn't gorgeous to the washington media elite. . double standard exists. evelyn shining and saying the essence of what the first lady should be, classy to the end. if they don't like the president don't take it out on her. seems to be a double standard. jillian: what look like a horror film in those decorations? twinkle lights, snow, a lot of christmas trees. carley: these were -- he had another beautiful coat on yesterday. i love how she does that. heather: a nice-looking demonstration, thank you. let's look at this live shot once again. the official welcome ceremony is supposed to get underway. donald trump expected to walk out on the stage this

basically told us they determined due to the grouping of drug classes that they can't estimate peter gershon for the purpose of setting the quote us. what does it take? how do we get them to acknowledge that 8 billion opioid doses is dramatically more than could possibly be used for legal purposes, for medical purposes? >> senator, thank you for your question. as previously discussed by the former acting administrator, the dea realizes we could have done things differently. we are doing things differently. i've been in this position almost three months. i read your letter and senator kennedy's brother and i sat down with our folks and went over the numbers again. i assure you it is a priority for me and a priority for the administrator to ensure that we have a balanced approach and we are looking at those. if you look at the numbers i think we are doing exactly what you asked us to do. >> 8 billion, enough for every adult in america to have an opioid dose for two weeks, every adult in america, you think that is a good response in the midst of a drug epidemic? >> we work with hhs and fda and