jonathan: james athey, great to jonathan: james athey, great to have you with us, alongside greg staplesriya misra. that does it for us, from new york city as we round out the month of august. i will see you in september. same time, same place. this was bloomberg "real yield." this is bloomberg tv. ♪ taylor: i'm taylor riggs, in for scarlet fu. this is bloomberg "etf iq," where we focus on the access, risks and rewards offered by exchange traded funds. ♪ taylor: the big shorts. michael burry sees a bubble in passive investing. leaving smaller value stocks neglected. we debate his call. tiffany, facebook, hasbro, all can be found in the renewable capital etf, tied to an oil tycoon, t. boone pickens. we asked the founder behind the fund why. the demonstrations in hong kong

jonathan: joining me from london is james athey.n new york, greg staples, priya misra of td securities. priya, what a month it has been. the 10-year treasury, people forget, 2% feels like a lifetime ago. it was the end of july, where we started the month, and we are down near 1.50. priya: i think it means it is a monster month for the entire rally, but what is also interesting, the curve steepening. we have had the 5-30 curve steepen out since the middle of last year. that also flipped in august. this was a bull flattening rally. this is the month where investor confidence in the trump put and the fed put were shaken. we realized that sort of the last 300 billion of tariffs, a lot of people thought the president would not initiate tariffs on that because it has a disproportionate impact on the consumer. that happened first day of august. fed officials are not talking about easing significantly. even if they were, it is not an interest rate problem. it is not even clear if the fed cut to 0, they could offset all of this global growth

francine: jess shankleman and james athey stay with us. later on "bloomberg: surveillance" trouble over tariffs as the u.s. and china struggle to agree to scheduled talks. plus, devastating as the bahamas gets battered by one of the most powerful storms in history. will bring you the latest on hurricane dorian. this is bloomberg. ♪ francine: economics, finance, politics. this is "bloomberg: surveillance ." time francine lacqua at westminster. when it comes to markets, we have extra data checks. the pound trading below 1.20 but we are seeing some yields at record lows. italian yield, i'm looking at the u.k. yield and some of the european yields. there seems to be a risk off mode -- risk on mood and we will see where that goes until the end of the day. let's look at pound. if you look at sterling versus euro, it hasn't moved that much but what is interesting, it does look like there is a little dollar strength and that might be something to consider, though you could also, the markets worry about a possible election which could mean boris jo