this is "bloomberg real yield." ♪ ♪ jonathan: i am jonathan ferro. ♪ ♪ jonathan: i am jonathan ferro.mberg real yield." let's get you up to spirit of what is coming up over the next week. the queen's speech comes up and brexit talks commence as well and we get the fed stress test as well as data on u.s. housing. let's wrap things up with black rock. let's wrap things up with a look at europe. the economy looks stable. i just wonder what that means for the bond market when the only thing that matters is the ecb. >> the growth is better. we think the growth will be durably better. you are seeing the lending markets improves, you are seeing consumption and employment has picked up. core inflation is not picking up fast enough for the ecb. you have got a dynamic where growth is good and you have a central banks that is going to be accommodated for a longer time. it's a pretty good environment. that's why you described people coming into europe. that is a good combination. jonathan: this is a recipe for steeper curves? the ecb is not a rush to go anywhere. >> it should be when the markets

♪ jonathan: i am jonathan ferro. it's a 30 minutes dedicated to fixed income. is is "bloomberg real yield." ♪ jonathan: coming up, another political shot in the u.k. prime minister may's conservative party loses this majority. the ecb is going nowhere fast. president draghi paints a picture of a better economy. and contingent convertibles are put to the test into spain. a european bank fails. we start with the big issue, another political surprise in the u.k. >> it is very, very surprising. >> the old rules don't apply anymore. >> i have to refresh my screen. >> there are a few bleary eyes -- there are a few blurry eyes in london today, and maybe a few surprised faces. i think with the business community wants to see is the economy at the top of the agenda. >> it was always obvious that this unnecessary, reckless austerity was going to have an impact, and that is what it seems to have done. we will see going forward. the big thing is it is -- it has weakened her hand in these brexit negotiations. >> the conservative party has a right under the constitution. she

jonathan: from new york city for our viewers worldwide, i'm jonathan ferro. yield.""bloomberg real ♪ coming up, central banks raining in risk. chair yellen says valuations look somewhat rich. mario draghi's word spark a bond can trumpet and sales of high-grade credit are on track to top the 2016 record. we begin with the big issue -- did investors misjudge draghi's speech? >> i think it was eloquently put. confusing.s were >> of the titanic should we have been waiting for. >> the speech itself, i'm not sure the market is interpreted it. there is a very clear shift in the tone relative to the last policy meeting. quite a dramatic tone. >> backslide to expand how tightening is not really tightening. i think the hope was if you explain it that way, financial markets will not get into a tizzy. >> i did not read draghi's statement on tuesday to be anywhere near as bearish as the market is taking it. i take it the other way. i think it is a signal from draghi that even if there is going to be further support and tailwind in the economy, the central bank is still there. >> a

nathan: from new york city for our viewers worldwide, i am jonathan ferro. this is "bloomberg real yield." ♪ coming up, crude enters the bear market, weighing on inflation expectations, reflecting balance sheets of energy companies. and the treasury curve is the flattest since 2007. credit investors put their foot down after companies get greedy, looking for even lower yields. we start with a big issue -- inflation expectations continue to break down, waiting on the yield curve. high in theen developed world, but frankly i think it is just moving up because of the fed. >> it is the lack of faith. something we have been seeing for seven years, the light of faith in the administration, the lack of faith in the qe in other parts of the world that are tapering. >> the expectation that nothing is going to change and it is the business as usual, i think that is an incorrect interpretation. we will see curves steeply again as the right policy makes begins to unfold. >> if you look at the feds, they have been around the block a mother have seen inflation pick up whe

>> from new york city, i'm jonathan ferro, this is bloomberg real yield. >> expectations and stressing balance sheets of energy companies. the reflation trade continues to break down. the treasury curve is the flattest since 2007. and credit investors put their foot down after companies get greedy, looking for even lower yields. we start with a big issue -- inflation expectations continue to break down, weighing on a yield curve. >> the interest rates in the u.s. are still high yield. that is keeping the long end -- i think the flat thing has more room to run. >> it is the lack of faith we have been seeing for the last seven years. it is a lack of faith in the administration, the lack of faith in the qe in other parts of the world that are keeping bond yield suppressed. >> the expectation that nothing is going to change and it is the business as usual, i think that is an incorrect interpretation. i think we will see curves steepening again as the right hand tale of the policy mix begins to unfold. >> if you look at most people in the fed, they have been around the block. they have seen

. ♪ ♪ jonathan: from the city of london, i am jonathan ferro. this is "bloomberg real yield."opean regulators decided banco popular of spain, debt was wiped out, senior bondholders protective, and authorities over today run on the bank. w a textbook succs for the regulator, and captured by the chart, but what about the investor? scott, a success for the regulator, i see that. is there a warning for the investor before they can go in and take a nice 11% coupon come across their fingers, and hope it never gets triggered. >> it is a wake-up call for investors. for subordinated bank bond investors, they have to be aware of the risks they bear for the higher coupon. this be with which the regulator took care of the situation, obviously there was a takeover as part of the deal. that is extraordinary as well. jonathan: it happened quick and there was a question whether this was a test of the cocos. the idea is you suspend coupon payments before the bank fails to keep the bank functioning. what was it this week? what was the take away from the first real workout for the securities? >>

you are watching "bloomberg real yield." ♪ ♪ from the city of london, i am jonathan ferro. "bloomberg real yield." it is time for the final spread. parliamentaryench elections, a wave of central-bank decisions. a hung parliament, prime minister may hanging onto power. confirming right now that chancellor hammond will remain the chancellor in her new. a swiss central bank decision and the boj as well. ahead to break it down, let's begin with you. but sketcher thoughts on the fed. 10 year yields have rented new lows in the last couple of weeks .14%. is there a message in the curve for the federal reserve? >> bond markets have been rallying. equity markets have gone up, so bond yields falling, equities going up, one of the two is wrong, and the fed as well. the fed would like to start raising rates. it,y time they start to do there is an external issues stopping them from doing it. is a 95% chance they will go 25 basis points next week. i think it is one and done for the rest of the year. jonathan: a lot of people are saying the treasury's market is one of the most messed pric

jonathan: i am jonathan ferro with 30 minutes dedicate to fix income. this is bloomberg real yield. ♪ brought ona downside payroll, jobs numbers in the u.s. disappoint and weight growth goes nowhere fast. your report 10 year yields pledges to a new 2017 low and the high yield issuance spread just keep grinding tighter. we start with the big issue, the payrolls injecting uncertainty into the fed's next move. >> it's a bigger number than the market expected. >> this is a weak report. >> since inauguration day, the u six rate is down 1%. we brought back over 200,000 people that were dissatisfied or u.s.employed in the workforce. that to us is a really amazing trait. -- trend. >> this is only fueling that fire a little bit so to speak. nowation is one side of it, you potentially have labor market disappointing. it's not surprising that folks are starting to question whether the fed can go twice more this year but three more times next year. >> the chair believes in job growth more than anything else. it's lower than the market expected, but she is going in

jonathan: from new york city for our viewers worldwide, i am jonathan ferro with 30 minutes dedicated to fixed income, this is "bloomberg real yield." ♪ jonathan: coming up, a downside surprise on payrolls. may job numbers in the united states disappoint. wage growth goes nowhere fast. fuel for treasury bulls, the 10 year yield plunges to a new low. spreads just keep grinding tighter. we start with the big issue, the payrolls report injecting uncertainty into the fed's next move. >> it is a weaker number than the market expected. >> it is a weak to mixed report. >> it is disappointing. >> the overall trend is good. since inauguration day, the u6 rate is down 12%. we have brought back 12,000 people that were disappointed or underemployed. that, to us, is an amazing trend. >> we have already begun to question the fed's rate have on inflation data. this is only fueling the fire, so to speak. inflation is one side of it. now you have the labor market data disappointing little bit. it is not surprising that folks are starting to question whether the fed will go twice this year and three ti

jonathan: i am jonathan ferro. 30 minutes dedicated to fixed income. this is "bloomberg real yield." ♪ coming up, janet yellen hikes interest rates once again as data in the u.s. starts to soften. it is another rough week for treasury bear 10-year yields , dropped a new low. jeff good lack says literally raise cash today. we start with a big issue, hawkish fed chair janet yellen. >> this statement forecast is more on the hawkish side. >> they are trying to nudge the market in a direction that is more favorable to the fed. >> they are determined to be steady as you go until the evidence is overwhelming and the other way. really datad were dependent, they should've looked this morning and said this is really dovish. >> we can talk as much as we want about the taylor rule and phillips curve and all that, but this has proved that all of those are things of the past. >> we should be seeing the gradual upgrade in inflation that we saw for a while and then stopped, which i think she did too. ofi think of yellen and -- being pilots in a plane that are trying t

i am jonathan ferro alongside alix steel and david westin. speed on market action. futures softer, down a quarter of 1%. -67 points on the s&p 500. we just went further back from those all-time highs on the back end of last week. in equities, compared to the cold hard reality of treasuries that seems to be the story of the last couple of months. year, 2.14 is0 how we trade, down for basis points. this is the fundamental story about china getting back into treasuries. an extra led lower on the yields. is remarkably quiet, muted, unchanged. the cable rate goes nowhere. an election on thursday in the u.k. and an ecb decision on the same day. markable column in the fx market. with get you up to speed on headlines outside the business world with emma chandra. >> the ruler of kuwait is trying to resolve the dispute between qatar and a group of arab nations led by saudi arabia. they have all cut off connections and closed qatar's only land border. saudi arabia accuses them of supporting iran and islamic militants. the chic travels today. will beerro

we are here with alix steel and jonathan ferro.are keeping a close eye on the big story of james comey testifying tomorrow morning on the hill. we have special coverage beginning at 9:30 a.m. eastern time. ber is cracking down on harassment in the workplace. after aed 20 employees companywide investigation into harassment claims. three dozen other employees have been warned. the european central bank is preparing to cut its inflation forecast according to officials familiar with the matter. they are concerned about weaker energy prices. showsay ecb projections consumer prices rising at 1.5% each year between now and 2019. that is your bloomberg business flash. alix: the reaction in the market is stark. the euro dropping like a stone, now down 0.6%. joining us is richard from blackrock. changed that, taken hawkishness off the table? >> we always thought this was going to be a dovish meeting. we have seen growth improving. inflation expectations have been anchored at low levels, not just below the forecast, but well below the ecb tar

next with"real yield" our very own jonathan ferro. ♪ jonathan: i am jonathan era. 30 minutes dedicatedis is "bloomberg real yield." ♪ coming up, janet yellen hikes interest rates once again as data in the u.s. starts to soften. 10-year gilts drop to new -- yield dropped a new lows. raise cash literally today. we start with a big issue, hawkish fed

"real yield with jonathan ferro" coming up next. we will see you back here on monday. s bloomberg. ♪ jonathan: from new york city for our viewers worldwide, i'm jonathan ferro. yield.""bloomberg real ♪ coming up, central banks raining in risk. chair yellen says valuations look somewhat rich. mario draghi's word spark a bond can trumpet and sales of high-grade credit are on track to top the 2016 record. we begin with the big issue -- did investors misjudge draghi's speech? >>

i am jonathan ferro alongside david westin and alix steel. alix: super thursday. the u.k. voting underway, and then at 7:45, we get the ecb rate decision. a cold and 30, the draghi news conference. 10:00 a.m. -- tech :00 a.m., the d.c. soap opera starts. former fbi director james coming will give his testimony in front of a congressional committee. david: live coverage starting at 9:40, including broadcasting on twitter. we are discussing with joe manchin, the senator from west virginia. it is a big drama. jonathan as you know very well, there is a big question of whether it is drama or it really affects the world such as markets. jonathan: thank you very much. let's begin by getting a look at the markets. looking at futures, this morning. we go nowhere. up about a 10th of 1%. the euro a little bit weaker. treasuries on offer at the margin yields, creeping back off those 2017 lows. alix: i am taking a look at dollar-yen, a really interesting morning for that currency pair. exit from a monetary stimulus could be on the agenda at the boj. dollar caught a bid and now dollar-y

i am jonathan ferro alongside alix steel. county down to the opening bell. futures really do go nowhere, in the fx market is a softer tone for the dollar. the euro-dollar climbs .1%. yield higher by a single basis point, 2.16 on the 10 year. alix: sterling the best performance up by about .4%. 148 is where it was a year ago. yields up by about three basis points, the vix little bit softer. jpmorgan says you want to buy hedges against the pickup, .5% jonathan:. jonathan:jonathan: garland -- i'm going to borrow". whether you think the year has passed quickly or not depends whether you are a sterling fx trader. it's on one year since that vote. >> the british people have made a very clear decision to take a different path, and as such, i think the country requires fresh leadership to take it in this direction. >> inevitably, there will be a period of uncertainty and adjustment following this results, but as the prime ministers of this morning, there will be no initial change in the way our people can travel and the way our goods

on jonathan ferro. -- i'm jonathan ferro. futures softer in the united states.ngs are softer globally across much of the continent. many countries including germany having national holidays today. levels 2017 lows on the 10 year yield. in fx marginally the dollar strength story. we come back off the highs for the euro in the year so far. let's get you up to speed on what's making headlines. here's emma chandra. president trump criticized the justice department and court systems in the dispute over his disposed -- proposed travel plan ban.an -- pam -- he called the courts slow and political. after thecal truce london terror attack's lasted less than five hours in the u.k. theresa may and jeremy corbyn ramped up the rhetoric before thursday's general election. may argue there is too much tolerance of extremism. saudi arabia is leading a push to isolate qatar over its relationship with iran. the saudi's, the uae and egypt have cut diplomatic ties with qatar. they are also suspending air and sea travel. saudi arabia has accused qatar of undermining efforts to isolat

. ♪ ♪ jonathan: i am jonathan ferro. it's a 30 minutes dedicated to fixed income. loomberg real yield." ♪ jonathan: coming up, another political shot in the u.k. prime minister may's conservative party loses this majority. the ecb is going nowhere fast. president draghi paints a picture of a better economy. and contingent convertibles are put to the test into spain. a european bank fails.

i think it is tainting with more tomorrow's colleagues will be jonathan ferro's system with rick rieder. the first word news now. >> president treating heart came -- accordingng the to people familiar, miller will introduce -- interview to people. in london, the fire at the granville tower has finally been extinguished. at least 17 people were killed. authorities say they don't chef.ly say talkss a report that between the u.k. will start today. global news, 24 hours a day, -- red by belowcoming up, trading $45 a barrel. this is bloomberg. mark: are we close to finding stability? >> short-term, i think the jury is still out. when you look at oil prices, dcaa downward pattern. the would be on the downside. bit offinding a little stability here. i think it is having an impact. outee the information came yesterday. indicatinghe icna is .t a little higher /i'm looking at futures and the probability of another hike this year through the end of the year is less than 50%. do you expect markets to move closer in the coming months? >> i think it is possible. you have to go to december to chance h

i am jonathan ferro. let's went through the market action.es of firm, the ftse gets a mix, pushingthe high. the story in the fx market fascinating over the last couple of days. handle.lar, the $1.14 remember the euro bears were there at the start of the year. the cable rate positive for a 1/3%.reet session, up by the bank of england needs to look seriously at raising rates. i cannot keep up with members. $2.27 on the 10-year. we say good morning to emma chandra. emma: good morning. president trump's travel ban will take effect tonight. will give the supreme court enough time to figure out how it will work. be honored,as will but new applicants must prove they have a relationship in the u.s. several senate republicans want to scrap the health bill for the wealthy. susan collins of maine has .riticized it republican leader mitch mcconnell has put the bill on hold while he tries to round up enough votes to pass it. an iraqi army commander says his city has captured a mosque in the city of multiple which was blown up by islamic state last week. t

i am jonathan ferro. futures are going nowhere.h of the board very quickly for treasuries, in terms of the data, the adp or comes out in about 1 45 minutes. we will bring you that appetizer before the big main course, the payrolls, that come tomorrow. euro-dollar, the high for the year, 1268. we are down by .2% abroad dollar strength in the fx market. very quickly, let's get you up-to-date to date on the headlines outside the business world. here is sebastian salek. sebastian: thanks, jon. the president announces his decision today about the paris climate change accord. people familiar with the matter say he is leaning toward walking away from the deal. among those urging him to stay coo --border apple tim and teslas elon musk. two leaders have appeared to leo make amends with leaders last month. trumbull spoke with bloomberg tv. >> it is more important than ever as president trump and i demonstrate that we are together on the uss intrepid in new york. that commitment, a commitment of our two nations, based on our history, taste on

i'm jonathan ferro.e weof gains close on another record high on the s&p 500. higher by a quarter of 1%. global equities with a really nice tone to them this morning, if you are longer. one hour from payrolls. yields lower by a single basis point. remarkable calm in the fx market. that is the story across assets, let's get you up to speed on what is making news outside of the business world. american business leaders are firing back at president trump decision to walk away from the paris climate accord. goldman sachs ceo lloyd blankfein called the decision in a setback for the environment and for the u.s. leadership position in the world. disney ceo bob iger and tesla's elon musk said that they were resigning from the presidential jobs panel. haswhile, president trump taken the battle over his travel ban to the supreme court. the nine justices will be as to reverse the order that bars people from entering the country from six muslim majority countries. in manila, and attempted robbery , not terrorism, app

i'm jonathan ferro alongside david westin.way today. 0.6%,utures softer off by treasuries up. the cable rates in focus. sterling spiking higher, reversing overnight losses as a hawkish boe vote surprises traders. government bond purchases at 435 billion pounds. joining me now from london is jamie murray. take a double check of the headline and then i had to look again. 5-3. not many people expecting that. talk to me about whether it is significant or not. >> i think there are elements which are significant and elements that are not. let's start with the three dissenters. one was voting for a hike already. that was her last meeting, she's meeting. one of the other dissenters was always going to change his mind at some point. hot -- hawk.ious is the thirdler one. it is likely it is something to do with the exchange rate, what the effects of that will be on domestic demand where he might have a different view than the rest of the committee. he has views on what the structural rate of the rate in the in -- u.k. jonathan: take a li

i am jonathan ferro. futures are positive.ly one of the biggest weekly losses since the middle of april -- april 14, but on the quarter, though, potentially seven straight quarters of gains. that is the story for us out there. here is the story in the bond market. treasuries down. yields up by a single basis point at 2.28 on a u.s. 10-year. in the fx market, the dollar showing some strength. that is a novelty this week so far. it has been all about euro strength. that is the story for you. that is your setup. the cash open with alix steel. alix: a sigh of relief in the markets, opening relatively higher for the worst day they saw in a month. up .48%, the s&p as well. you have oil steeper, macron earnings. all of the helping the market, as well as banks. bank of america up by almost 8%. jpmorgan following suit, up 5%. citigroup up 6%. it is a trifecta for these stocks. they can think mario draghi for that. the yield curve steepening over the last few days. a big jump in yield helping banks. in addition, the by banks -- the buyb

i am jonathan ferro. 18 minutes away from the open.-9 points on the dow. europe, --sessor in a stock secession in europe. the biggest losers on the stoxx 600, down 10% on the year. crude does catch a bit, up .5%. as we enter a bear market, we bounced back to $42.75. as well.hat plan out euro and sterling pretty much unchanged on the day, but the commodity currencies outperforming in line with the bounceback of crude prices as well, alix. and: american airlines qatar airways is interested in buying a 10% stake in the country valued at more than $800 million. american said it did not solicit the proposed investment and will not change the composition border management. joining us from atlanta is bloomberg's aerospace reporter michael sasso. why? michael: they have not really said yet, and that is the question of the day. these twohing is airlines have been it odds -- in fact, qatar airlines has been at odds with all airlines, particularly delta. they have been accused of basically flooding the u.s. markets with flights, with generous sub

i'm jonathan ferro alongside david westin and alix steel. futures are little bit softer in the united states. we are down by a temp of 1%, but there is your fuel for the euro bulls. 11262 on the euro-dollar. alix: seeing some serious selling off in the euro market. the yield jumping by six basis points in the same over the u.k.. if you want reflation, you buy equities, short bonds, and end up buying the euro. euro-yen,look at the the highest level since april 2016. gold still getting a bid despite the fact that central banks might pull back over in europe by 5/10 of 1%. david: time after the morning brief. we get the case schiller home price index for april. at 10:00 a.m., consumer confidence for the month of june. at 1:00, federal reserve chairman janet yellen in a yell and is slated to speak on electronic issues. also, the u.s. treasury will auction $34 billion in five-year notes. we will hear from the eu regulator who just imposed that record $2.7 billion fine on google for favoring its shopping comparison service over rivals. the europea

the decision, jonathan ferro will sit down with various people. trillion in asset management, gives us its income perspective. .hat is 5:00 p.m. london time let's look at first word news. the annual congressional charity baseball game which states to 1909 and is a summertime transition -- tradition on capitol hill will be played despite the shooting during practice. house speaker paul ryan assured lawmakers that the members will go on. whip steveajority scalise is in critical condition after that shooting. four others were wounded. police wounded the gunmen. president trump visited sculley's -- steve scalise in the hospital. it is more difficult than people first realized and said he is in some trouble. sexual assault trial is deadlocked after 30 hours of jury deliberation over four days refused to restrict aggravated indecent assault for allegedly driving and molesting a woman in 2004. each count carries a 10 year prison term. the judge told the jurors to continue. formal brexit talks between the u.k. and european union begin monday as scheduled.

the show will be >> from new york city, i jonathan ferro.is dedicated to fixed income. real s " bloomberg's yield." created enters the market, the reflation rate continues to put down the treasury curve. and credit investors put their foot down after companies get greedy, looking for even lower yield. we start with the big issue. inflation expectations continue to break

. ♪ jonathan: i am jonathan ferro with 30 minutes dedicate to fix income.berg real yield. ♪ brought ona downside payroll, jobs numbers in the u.s. disappoint and weight growth goes nowhere fast. your report 10 year yields pledges to a new 2017 low and the high yield issuance spread just keep grinding tighter. we start with the big issue, the payrolls injecting uncertainty into the fed's next move.

. ♪ >> i am jonathan ferro. janet yellen hikes interest rates once again. drop to new 2017 lows. we start with a big issue. hawkish fed chair janet yellen.

and tomorrow, bloomberg real yield will be live from blackrock trading floor, and jonathan ferro sitsock writer jeff rosenberg. in new york,:00 5:00 in london. this is bloomberg. ♪ ♪ emily: netmarble surge the most in two weeks in seoul. was the biggest surge in seven years and south korea, raising more than $2 billion. we spoke to europe from -- we spoke to them at the e3 conference in l.a.. let's take a listen. this will appear in some populated areas, some younger areas, we will have more capabilities, and also invest in more high peak collaboration, to reach audience more effectively in the united states. the marketing very important. we really want to emphasize that, the marketing comes first. emily: tampa bay lightning owner and chairman to name for himself, tripling clients money as they had front manager -- as a hedge fund manager at fidelity . and now he just joined former team owners as the executive chairman of axiomatic, which is where is boards take the place as-- e sports take place multinational tournaments. they spoke to us about the potential for the industry. >> it i

." ♪ nathan: from new york city for our viewers worldwide, i am jonathan ferro.real yield." ♪ coming up, crude enters the bear market, weighing on inflation expectations, reflecting balance sheets of energy companies. and the treasury curve is the flattest since 2007. credit investors put their foot down after companies get greedy, looking for even lower yields. we start with a big issue -- inflation expectations continue to break down, waiting on the yield curve. >

. ♪ jonathan: from new york city for our viewers worldwide, i am jonathan ferro with 30 minutes dedicateded income, this is "bloomberg real yield." ♪ jonathan: coming up, a downside surprise on payrolls. may job numbers in the united states disappoint. wage growth goes nowhere fast. fuel for treasury bulls, the 10 year yield plunges to a new low. spreads just keep grinding tighter. we start with the big issue, the payrolls report injecting uncertainty into the fed's next move. >> it is a weaker number than

i am jonathan ferro alongside david westin. rates have changed at 0.25%.tails now, it looks like there is a 5-3 vote, which was a surprise. two things are happening. you have clear evidence coming through the data. retail sales came through

fresh off the fed's rate decision, jonathan ferro sits down.us their perspective on the fixed income market. this is bloomberg. ♪ scarlet: it is noon in new york, 5:00 in london. welcome to the bloomberg markets. ♪ vonnie: from bloomberg world headquarters, he is top stories on bloomberg and around the world that we are following. central-bank watch, the bank of england policymakers deepen their divergence. robert mueller is expanding the scope of his investigation to see whether donald trump tried to obstruct justice. bid, the company is writing messaging startup/-- start up flash. phenomenal figures, here is another, julie hyman. we are halfway through the trading day. this is the same playbook we have seen

jonathan ferro and guy johnson will be doing that throughout the day.sa may the current prime minister voting. onto another big event of the day, there are three. the u.k. elections, the ecb and the testimony later today. trumpfbi chief will say asked him to end the program into michael flynn and requested a public announcement that trump wasn't underestimate -- investigation. comey will also say the president repeatedly called for loyalty and asked what could be done to lift the cloud over his administration. for more on what to expect, let's bring in jackie simmons, still with us alberto and bhanu. jackie, we have the transcript of this testimony. thatere anything illegal president trump asked him to do? jackie: that is the concern, there seems to be consensus that on a strictly legal basis, perhaps not. but the bigger issue is how appropriate was a for the president to be asking the fbi director do not come -- to go away. put this in the box. it is more a question of appropriateness, rather than legal, but that is part of the debate right now. franci

. ♪ ♪ jonathan: i am jonathan ferro. it's a 30 minutes dedicated to fixed income. berg real yield." ♪ jonathan: coming up, another political shot in the u.k. prime minister may's conservative party loses this majority. the ecb is going nowhere fast. president draghi paints a picture of a better economy. and contingent convertibles are put to the test into spain. a european bank fails. we start with the big issue, another political surprise in the u.k. >> it is very, very surprising.

[applause] ♪ >> from new york city, i'm jonathan ferro, this is bloomberg real yield. >> expectationsng balance sheets of energy companies. the reflation trade continues to break down. the treasury curve is the flattest since 2007. and credit investors put their foot down after companies get greedy, looking for even lower yields. we start with a big issue -- inflation expectations continue to break down, weighing on a yield curve.

roadg up later, on the live from blackrock, jonathan ferro talked to a number of people.in assets. this is bloomberg. ♪ taylor: i am taylor riggs. let's get to business flash. in europe, car sales bounced back. dealers sold almost 8% more 7%er sales fail 7% --fell more. the big sellers are the mercedes revamped e class. the japanese air back matter behind the biggest -- airbag matter behind the biggest recall will file bankruptcy. they will file chapter 11. deflated have been blamed for 17 deaths. ceo disney bob iger called it a first and spoke to bloomberg about it being part in shanghai. -- theme park in shanghai. said we hoped to break even and i confirm we will. today is the end of the first full year of business and this would break even. it is an extraordinary achievement. i am not sure we have done that area we surely have not done in the last 30 years. called on america to revise the corporate tax rate. that is the bloomberg business flash. tom: thank you. with maybe the exception of the massachusetts institute of technology, know whether the country that knows th

jonathan ferro will be sitting down with rick and jeff the firm has $5.4 trillion in asset a merger -under management. they give us their perspective this week. well.the boj coming up as this friday etobicoke p.m. new york time in 5:00 p.m. in london. this is bloomberg. ♪ scarlet: i'm here with tom keene . we want some final thoughts. tom: the most important guy today for me is joe weisenthal. phd, the guy with a pink t-shirt is janet yellen's biggest headache. >> more than anything else, you presented as a joke, but i thought it was striking that at least two times, janet yellen brought up the disinflationary impulse coming out of the wireless industry. i do not know whether it is real or not, but it struck me that she clearly does not believe inflation will remain depressed and found a few compelling pieces of evidence in her view that this was not a permanent state of affairs. >> i thought the questions were quite good heard what struck you in the room? what was one thing that stood out over that our, the 58 minutes? >> think she kept coming back to us the disinflationary impulse w

jonathan ferro asked his guests. shows what i think what draghi said was 100% correct.are not looking to tighten. they just want to keep accommodation at levels that are consistent with where financial conditions need to be. i did not view his talk is overly hawkish. i think it's a reinforcement of what he is been saying. but it came at a time when markets have been surprised. which hasat inflation been low, decent globally. no one is expecting it to come out so strongly put by mario draghi, endicott people by surprise little bit. >> i would have to argue this is not about the short-term course ecb's policyt the response function, which for the last six years since the speech,r it takes" whatever be data comes out, ease, ease, ease. we are returning to a point where economic data may determine the policy response where it goes from flat to a little bit steeper, not naturally where it was 10, 15 years ago, but steeper. jonathan: we can bring up a chart for our viewers, whether it is the european central bank, the reserve, the bank of canada as well, across the board, exp

. ♪ jonathan: i jonathan ferro with 30 minutes dedicated to fixed income.oomberg real yield." ♪ fed chair janet yellen hikes interest rates once again. that's even as the data and the u.s. starts to soften. treasury yields drop to new 2017 lows. bill gross says the market risk is like 2008. we start with a big issue. hawkish fed chair janet yellen. >> the statement and this forecast is more on the hawkish side. >> they are trying to nudge the markets in a direction that is more favorable to the fed. >> they are determined to be steady as they go until the evid

jonathan ferro will sit down with black rocks -- they will give their perspective on the fixed incomearket tomorrow at 12:00 p.m. new york time, 5:00 p.m. in london. let's check on the bloomberg first alert news with mark crumpton. mark: president trump said today that wounded republican congressman steve is quoted here in some trouble. he says he will be ok, we hope, offering that assessment as a shaken u.s. house gavel back after a day -- a shooting. the president and the first lady visited at the hospital wednesday night. vice president pence and his wife this morning. lawmakers sought a semblance of normalcy even as they offered prayers for the wounded and echoed the president in pledges of unity. to be crystal clear there is not any room in our society for hate. there is not room for violence. stand, we must act in a peaceful and orderly and nonviolent fashion. mark: a home inspector from illinois has several minor -- determine the republican party over social media, he criticize the president and the gop. he was shot and killed by capitol police. the senate has voted overwhelmin

i am jonathan ferro alongside david west and. alix steel is off today. bloomberg's matt miller sitting down with an exclusive interview manager -- finance missed -- minister wolfgang schaeuble. futures a little bit firmer. stabilizing in europe. the second biggest gaining industry group on the session so far. treasuries stabilize after four days of losses. i can tell you david westin, u.k. short -- wolfgang schaeuble saying the u.k. will face open .oors if the brexit is reversed i do not know how that is going to go down, but much more in a moment. david: i cannot tell anything in the world of u.k. politics. the federal reserve will be kicking off a two day meeting today and every -- everyone is just about certain they will increase rates. what signals will begin about future actions question mark joining us is keith parker, welcome to the program. i want to start with two points. number one, the fed has been clear about what they would like to do. they already had one rate hike and they would like two more. on the other hand, there is inflation expectat

analysis across the market with guy johnson and jonathan ferro who is there for the week.g in on michael popular, the spanish bank which will have its stock suspended from trading today. our lead story from spain is consideringer is raising $5 billion -- 5 billion to bid forshare sale banco popular. as if the story is beginning to heat up. more than 35 million euros of nonperforming loans on the balance sheet. let's get to our madrid bureau chief, great to see you this morning. santa -- santander on the grind there. who has the bigger half to potentially do a deal to buy banco popular are if that is the road were going? >> it's a huge lindner, more than a trillion dollars worth of assets. it's a huge bank that has the have two absorbed popular. very much a competitor of santander, they are close rivals. it thing about popular is needs a big cleanup. it has 37 billion euros of nonperforming assets. hence the news last night that santander, if it were to make a bid for popular, would seek to raise capital. of mimicking terms some of the deals we seen, i'm reflecting back to

i am jonathan ferro alongside guy johnson. you were sterling is, you can guess worse -- where the ftse is. he weaker pound means a higher ftse. tells the domestic story. we are down. if you see the inflationary story building up on the back of a weaker pound? gilt yields driving higher by three basis points. guy: let's talk about how we break down the stoxx 600 this morning. u.k. domestic stocks is really pressure is on the selling side this morning. the housing sector, you have some of the domestics. the construction sector hasn't been doing that badly lately. berkeley group. it is these kinds of stories that are under pressure this morning. elsewhere, external revenue streams. look at what is happening. berg we exposed globally. rolls-royce exposed globally. point, tell me where the pound and and i will tell you where the the stocks are performing. we will get the bloomberg first word news. jeremy corbyn has called on prime minister theresa may to standdown. that comes as a result of the election she called and it hung parli