jonathan: from new york city, i'm jonathan ferro. this is "bloomberg real yield." jonathan: wrapping up the first half with treasury bears. facingg-market assets one of the worst quarters in almost three years. how safe is the new safety trade? we begin with a big issue. can u.s. markets decoupled from the rest of the world? >> the u.s. looks like a better place to be than the rest of the world. >> group is living here. the economy tends to do well. they could be isolated and its long as the sharks are not massive. >> we are looking at economy that is driven by the consumer. the consumer remain strong. >> the u.s. will not be able to the couple. it is part of the global economy. >> you are starting to see weakening probably in the u.s. high-yield bond market, even though continued that people continue to say that the economics are solid. >> it depends on if the trade battle gets out of control, which i do not think it well. but if a mistake is made, and you are playing very high-stakes right now -- if a mistake is made, then this is going to get ugly for markets. jo

jonathan: from new york city, jonathan ferro with 30 minutes dedicated to fixed income. this is bloomberg real yield . >> coming up, and optimistic checkout for a third or fourth hike this year. draghi -- dollar strength. markets suffering another tough week. we begin with a big issue. the u.s. economy looking anything but week. >> economy is very strong. strong and resilient. we see a very strong economy across a bunch of fronts. the u.s. economy is in great shape. growth is strong, labor markets are strong, inflation is close to target. the labor market is strong, growth is strong. solidl, we have a really economy on our hands here. we aret we are doing is trying to conduct monetary policy in a way that will sustain that expansion. the main takeaway is that the economy is doing very well. most people who want to find jobs are finding them, and unemployment and inflation are low. jonathan: joining us at the robertson, andrea higgins. and alan let's begin with you, colin. crisis, aheard, post federal reserve leader sound that bullish on the economy. certainly withnd the

jonathan: i'm jonathan ferro. this is "bloomberg real yield."n the auction block. $1 billion of the bonds being sold. it's a debt offering. there is interest at a quarter percent rate a year, maturing in 2024. who knows where we will be. twitter is a broader trend for convertible bonds. issuing to top the 2007 volume. changes in the corporate tax code helping. u.s. investment grade bouncing back from a slow week from last week, with more than $30 billion in issuance. union pacific was one of the highlights with $6 billion in a seven part transaction. with me around the table steer is kathy jones, jay berry, and andrew chorlton . i gave your friend a hard time about short btp's. then it suddenly paid off. let's talk about the trade and what you did that tuesday when things go up. we still a lot of pressure from her and internally. lastowed the reaction tuesday and it shows you how fickle and over positioned the markets are. we cut position on tuesday. where looking to reinstate it on the basis that you had headlines , but fundamentally, it is a d

jonathan: from new york city, i'm jonathan ferro. this is "bloomberg real yield." jonathan: wrapping up the first half with treasury bears. facingg-market assets one of the worst quarters in almost three years. how safe is the new safety trade? we begin with a big issue. can u.s. markets decoupled from the rest of the world? >> the u.s. looks like a better place to be than the rest of the world. >> group is living here. the economy tends to do well. they could be isolated and its long as the sharks are not massive. >> we are looking at economy that is driven by the consumer.

jonathan: from new york city for our viewers worldwide, i am a jonathan ferro with 30 minutes dedicated to fixed income. this is "bloomberg real yield." ♪ jonathan: coming up, breakdown on international diplomacy. enough it to -- enough to derail global growth? central bank governor in a world of pain asking the fed to help. ecb refusing to be held hostage and planning to discuss the end of qe. we begin with a big issue, emerging markets asking the fed for help. >> the fed is always clear they are making policy for america. even if you do consider the rest of the world, you are not making policy to bail out countries that are running their countries badly. >> the fed is guided mostly by u.s. factors and it would take a massive global crisis to change the fed behavior. >> when people make the comparison to 2013 and say the yen is in a better place, but we are missing the point there say the e.m. is better place, but we are missing the point there other vulnerabilities, not just external anything but in places like brazil, public debt is a huge issue. >> the emerging markets appears to be

jonathan: from new york city, i'm jonathan ferro. 30 minutes dedicated to fixed income. this is "bloomberg real yield." increasing leverage in a rising environment. chasing pain into investment grade credit. the transatlantic spread widens. mario draghi going nowhere fast. pricing in political risk. looking at a string of key elections in emerging markets. we begin with corporate america boosting leverage. >> right now it is still pretty attractive to borrow. you have seen a pretty meaningful upsurge and sizable deals. companies are raising $20 billion, $30 billion, $40 billion of money at one go. >> increased leverage on balance sheets is absolutely a risk. i think a lot of companies are much more healthy in thinking through how much risk they want to take, how much debt they actually need. it is definitely an area of concern. >> the economy is on a very strong growth track, no question, and that supports leverage. -- and it always happened in the past because economies are indeed cyclical. when do hit a tipping point, where is the tipping point? it goes back to the ele

♪ jonathan: from new york city, i'm jonathan ferro. this is 30 minutes dedicated to fixed income. is is "bloomberg real yield." ♪ jonathan: coming up wrapping up , the first half with treasury bears closing gaps. emerging-market assets facing one of the worst quarters in almost three years. how safe is the new safety trade? investors flocking toward leveraged loans. we begin with a big issue. can u.s. markets decouple from the rest of the world? >> the u.s. looks like a better place to be than the rest of the world. >> we are like one strong island performing well, and the rest of global growth is slipping. the economy continues to do well. it could be isolated as long as the shocks are not massive. >> we are looking at economy that is driven by the consumer. thinking about u.s. economic health, the consumer remain strong. >> the u.s. will not be able to decouple. it is part of the global economy. even president trump will work that out. >> you are starting to see weakening probably in the u.s. high-yield bond market, even though people continue to say that the economics are solid.

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, it is a breakdown on international diplomacy. enough to derail global growth? the central bank of e.m. is in a world of pain, asking the fed for help. and the ecb refusing to be held hostage and planning to discuss the end of qe. we begin with a big issue, emerging markets asking the fed for help. >> the fed is always clear they are making policy for america. but even if you do consider the rest of the world, you are not making policy to bail out countries that are running their economies badly. >> the fed is guided mostly by u.s. factors and it would take a massive global crisis to change the fed's behavior.

>> from new york city, i am jonathan ferro. 30 minutes dedicated to fixed income. this is "bloomberg real yield." coming up, a jobs report leaving the federal reserve on track to deliver more hikes this year. political risk in italy. what is needed most. and a tough week for a former bond king. us why his firm had the biggest order drop in a year. we begin with the jobs report. >> the numbers are strong. >> it is a good, solid gain in the labor market. >> the wage number was important and this is good on the way to run as well. wages are just about 2.5%, it is still not strong. inflation is bouncing around so real wage growth is pretty muted. people are dipping into their

♪ >> from new york city for our viewers worldwide, i am jonathan ferro 30 minutes dedicated to fixedncome. this is bloomberg "real yield". ♪ coming up, a jobs report leaving the federal reserve on track to deliver more hikes this year. political risk in italy, reminding bond investors bet that it might not hate it when it is needed most. and, a tough week for a former bond king. the biggest drop in four years. we begin with our bloomberg jobs report. >> the numbers are strong. >> it is good news on all fronts. >> is a good, solid game in the labor market. i think there which number was very important, good news on the which front as well. >> even though the wages are just above 2.5%, it is still not strong. right? inflation is bouncing around too. real wae growth is pretty mute. people are dipping into their savings to continue to spend, and that is worrisome. >> 2.7 percent, welcomed the news. still not 3.7% is sustained. we are still not seeing the real acceleration, broad-based acceleration in which growth than we would like to see out there. >> it is pretty much a scenario where

jonathan: from new york city, i'm jonathan ferro. with 30 minutes dedicated to fixed income, this is "bloomberg real yield." coming up, increasing leverage in a rising rate environment. injecting a little pain into investment grade credit. the transatlantic spread widens. powell committed to gradual hikes, mario draghi going nowhere fast. and pricing in political risk. looking ahead at a string of key elections in emerging markets. we begin with the big issue, corporate america boosting leverage. >> right now, it is still pretty attractive to borrow. you have seen a pretty meaningful upsurge in sizable deals. companies are raising $20 billion, $30 billion, $40 billion of money at one go. >> increased leverage on balance sheets is absolutely a risk. i think a lot of companies are much more healthy in thinking through how much risk they want to take, how much debt they

jonathan: from new york city, i'm jonathan ferro. this is "bloomberg real yield." : wrapping up the first half with treasury bears. facingg-market assets one of the worst quarters in almost three years. how safe is the new safety trade? we begin with a big issue. 10 u.s. -- dc

you are coming in today, listen to our col tom keene and jonathan ferro. lisa will be with keene from 7:00 until 10:00. live from new york, this is bloomberg. emma: this is bloomberg daybreak. coming up in the next hour, bob steele, the perella weinberg ceo. now to your bloomberg business flash. analysts say the chinese smartphone giant xiaomi could end up being twice as expensive as apple wanted goes public. morgan stanley says it should trade at a premium because of market share gains and faster growth trajectories. morgan stanley and goldman sachs and the company could trade at more than 30 times is projected earnings, roughly double apple's valuation. the debut of the world's biggest maker of electric car batteries has produced its third billionaire in today's. the chinese company known as catl rose 10% in its second day of trading. that pushed the net worth of shareholders pass the billion dollar mark. the founder and his top aide became billionaires monday. publishers around the world are stepping up the criticism of a new facebook will see. they are

. ♪ jonathan: from new york city, jonathan ferro with 30 minutes dedicated to fixed income. g real yield. ♪ jonathan: coming up, and optimistic chairman powell seeing a third of fourth hike this year. draghi delivering more dollar strength. emerging markets suffering another tough week. we begin with a big issue. the u.s. economy looking anything but weak. >> economy is very strong. strong and resilient. >> we see a very strong economy

. ♪ jonathan: from new york ty, jonathan ferro with 30 minutes dedicated to fixed income. "bloomberg real yield." ♪ jonathan: coming up, an optimistic chairman powell seeing the fed up for a third or fourth hike this year. draghi delivering more dollar strength. emerging markets suffering another tough week. we begin with a big issue. the u.s. economy looking anything but weak. >> the economy is very strong. strong and resilient.

. ♪ jonathan: from new york city for our viewers worldwide, i am jonathan ferro with 30 minutes dedicatedd income. this is "bloomberg real yield." ♪ david: -- jonathan: coming up, it is a breakdown on international diplomacy. enough to derail global growth? the central bank of alabama is in a world of pain, asking the fed for help. and the ecb refusing to be held hostage and planning to discuss the end of qe. we begin with a big issue, emerging markets asking the fed for help. >> the fed is always clear they are making policy for america. but even if you do consider the

jonathan: from new york city, i'm jonathan ferro. this is 30 minutes dedicated to fixed income. loomberg real yield." jonathan: coming up, wrapping up the first half with treasury bears closing gaps. emerging-market assets facing one of the worst quarters in almost three years. how safe is the new safety trade? investors flocking toward leveraged loans. we begin with a big issue. can u.s. markets decouple from the rest of the world? >> the u.s. looks like a better place to be than the rest of the world.

>> from new york city, i am jonathan ferro. 30 minutes dedicated to fixed income. this is "bloomberg real yield." coming up, a jobs report leaving the federal reserve on track to deliver more hikes this year. political risk in italy. what is needed most. and a tough week for a former bond king. us why his firm had the biggest order drop in a year. we begin with the jobs report. >> the numbers are strong. >> it is a good, solid gain in the labor market. >> the wage number was important and this is good on the way to run as well. wages are just about 2.5%, it is still not strong. inflation is bouncing around so real wage growth is pretty muted. people are dipping into their savings to spend, and that is worrisome. not 3% sustained, still not seeing that real acceleration, broad-based acceleration in weight growth that we want to see out there. >> pretty much a scenario where the fat hawks basically think they can move forward once, twice, some say three times. i say june is the last. >> the numbers are strong now. next year it will be different. if you think about wh

jonathan: from new york city, i'm jonathan ferro. with 30 minutes dedicated to fixed income. "bloomberg real yield." ♪ jonathan: coming up, increasing leverage in a rising rate environment. injecting a little pain into investment grade credit. the transatlantic spread widens. how will committed to gradual hikes, mario draghi going nowhere fast. and pricing in political risk. looking ahead at a string of key elections in emerging markets. we begin with the big issue, corporate america boosting leverage. >> right now, it is still pretty attractive to borrow. you have seen a pretty meaningful

[applause] ♪ jonathan: from new york city for our viewers worldwide, i am jonathan ferro, with 30 minutes to fixed income. this is bloomberg "real yield". ♪ coming up, a jobs report leaving the federal reserve on track to deliver more hikes this year. political risk in italy, reminding bond investors bet that it might not hate it when it is needed most. and, a tough week for a former bond king. the biggest drop in four years. we begin with our bloomberg jobs report. >> the numbers are strong. >> it is good news on all fronts. >> is a good, solid game in the labor mar