this is "bloomberg real yield." ♪ ♪ jonathan: i'm jonathan ferro. jonathan: i'm jonathan ferro.is "bloomberg real yield." i want to head to the auction block now, where more than $240 billion of treasuries were offered this week. i want to focus on the $30 billion sale of seven-year know it's can mother had the lowest yield in three months, when they beat the cover ratio of 2.3, weaker than the last seven-year note sale. meanwhile, in italy, the country had its first auction of five and 10 year debt since the new populist coalition took office. the sale posted a bid-cover ratio which was the lowest in almost a year. even with the yield on 5-year bond's, there are the highest in the eurozone. and russia, the country is on track for its biggest bond issuance in years. it sold half of the seven billion dollars it wanted to borrow this quarter. that is the worst result since 2015. still with me around the table, priya misra, bob miller, and joining us from dallas, texas, is mark okada. let's get to the story of treasuries so far this year. we have seen the call from goldman sachs, w

jon: from new york city, i am jonathan ferro with 30 minutes dedicated to fixed income. this is bloomberg "real yield." ♪ coming up, solid payrolls growth shows there is still more room to run for america's labor markets. standoff,hina trade and trade-off brings one more to flatten the curve. another solid payrolls report. >> this is a very solid or appropriate -- solid report. >> very good jobs report, no doubt about that. >> if the rate goes up because people are quitting their jobs more and heading back into the labor force, it is a really, really strong market. >> all around good news story, at least for the near term. a few more reports in this direction, if we do see a wave of people coming back to the labor force, i would not expect that, but as i does seem to be the case, it could cause an adjustment in their thinking. >> the fed will hike at least once more. why not more than that? simply because wage growth is sluggish. >> the fed is going to go another two times this year, but i wonder how they are going to go in the economy starts to bend down a little bit an

jonathan: from new york city for our viewers, i'm jonathan ferro with 30 minutes dedicated to fixed income. this is "bloomberg real yield." ♪ jonathan: u.s. gdp sees the fastest growth since 2014 and the president says more to come. the junk debt continues to outperform scarcity. make central to bank decisions. the boj and fed coming up. we begin with the big issue, is this as good as it gets? >> maybe this is the one time as good as it gets q2 record high prints. this is really about shifting the growth debate away from the low for longer, new normal. >> you have 18 months left. >> the tax cuts had a big effect on the second quarter. >> everybody has this growth fading over the next two years. back down to the long-term sustainable 2%. >> while it is information -- while it is interesting and gives us information, but i am not sure it is going to fuel a level of exuberance that is not really supported by the fundamentals. >> third quarter in fourth quarter, you are talking a global turbulence. >> the market is starting to anticipate some of those factors. >> the economy keeps moving along

jon: from new york city, i am jonathan ferro with 30 minutes dedicated to fixed income. this is bloomberg "real yield." ♪ jon: coming up, solid payrolls growth shows there is still more room to run for america's labor markets. shots fired in the u.s.-china trade standoff, and trade-off brings one more use to flatten the curve. the flattest since 2007. we begin with a big issue, another solid payrolls report. >> this is a very solid solid -- solid report. >> that was pretty encouraging. >> very good jobs report, no doubt about that. >> would look like it is bad news when the unemployment rate rose up. but if it goes up because people are quitting their jobs more and heading back into the labor force, it is a really, really strong market. >> all around good news story, at least for the near term. >> this won't change the fed to change course by itself. a few more reports in this direction, if we do see a wave of people coming back to the labor force, i would not expect that, but as it does seem to be the case, it could cause an adjustment in their thinking. >> the fed will

♪ jonathan: from new york city, jonathan: from new york city, i'm jonathan ferro. is is 30 minutes dedicated to fixed income. this is "bloomberg real yield." ♪ jonathan: coming up, wrapping up the first half with treasury bears closing gaps. rates and a, and heights on yields. areging-market assets facing down when of the worst quarters and almost three years. just 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 right now. islandre the one strong performing well, and the rest of global growth is slipping. within the u.s. 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. when you think about it you can him at health of the u.s., still very strong. the consumer remains strong. >> the u.s., ultimately, will not be able to decouple. it is part of the global economy. even president trump will w

jonathan: from new york city for our viewers worldwide, i'm jonathan ferro with 30 minutes dedicated to fixed income. this is "bloomberg real yield." ♪ jonathan: coming up, u.s. gdp --the fastest growth since 2014. the president says there's more to come. the junkiest of junk debt continues to outperform. supply scarcity, supporting high yield. and looking ahead to a big week of central bank decisions, the boj and fed coming up. we begin with a big issue, is this as good as it gets? >> maybe this is the one time as good as it gets q2 record high print. >> this is really about shifting the growth debate away from that low for longer, new normal. >> you've got at least 18 months, maybe 2 to 3 years left. >> the tax cuts had a big effect on the second quarter. >> everybody has this growth fading over the next two years, back down to that long-term sustainable below 2%. >> while this one print is interesting and it does give us information, i am not sure it is going to fuel a level of exuberance that is not really supported by the fundamentals. >> third quarter and fourth quarter, you are

." ♪ jonathan: i'm jonathan ferro. this is "bloomberg real yield." live from j.p.organ asset management. chinese assets ended on good footing. central banks moved to weaken daily currency fixing, the most since 2016. joining me to discuss china and emerging markets is a diana amoa, senior portfolio manager at j.p. morgan and still with me michael -- -- bob bob michele. with what is happening with the currency policy, things have changed. what the chinese are doing is the right response. what we have seen is they stepped back from the currency. they are willing to let the trade determine where the is. -- they areg to willing to see where the market is pricing it. that is a good response. for the pboc it is the right thing. they will allow some banks to invest again and ease regulations. liquidityo redo track -- they are trying to redirect liquidity. the chinese are having the right response. jonathan: there are many ways to look at the giants -- chinese currency. when you look at it, what story do you see? lisa: i think the dollar and the currency is trading roughly

." ♪ jonathan: i'm jonathan ferro.his is "bloomberg real yield," live from jp morgan asset management. over to china we go, where chinese markets ended on a stronger footing. central banks moved to weaken daily currency fixing, the most since 2016. joining me to discuss china and emerging markets is a diana amoa, senior portfolio manager involved with emerging markets here at jp morgan and still with me is bob michele. always great to catch up with you. with what is happening with the currency policy, things have changed. lisa: what the chinese are doing is absolutely the right response right now. what we have seen is they stepped back from the currency. they are willing to let the market determine where the trade -- currency levels trade. they were fixing stronger, but they are willing to see where the market is pricing it. that is absolutely the right response. for the pboc it is the right thing. today we saw announcements they to bellow some bonds investing again and easing regulations that they had, trying to read

." ♪ ♪ jonathan: i'm jonathan ferro. this is "bloomberg real yield." we are live from j.p.asset management. over to china, chinese markets ended the week on stronger footing. the you on reversing a -- the yuan reversing an earlier slump. central banks moved to weaken daily currency fixing, the most since 2016. joining me to discuss china and emerging markets is a diana amoa, senior portfolio manager involved with emerging markets debt at jpmorgan, and still with me is bob michele. and thoughts on china, whether you have a handle on what is happening with the pboc and what is happening in recent months? diana: what the chinese are doing is the right response. what we have seen is they stepped back from the currency. they are willing to let the market determine where the trade -- the currency levels trade. they are willing to see where the market is pricing it. that is the right response, it could likely be a growth shock. for the pboc it is the right thing. today we saw announcements they will allow some banks to invest in loans again, and an easing of some regulations. they

." ♪ jonathan: i'm jonathan ferro. this is "bloomberg real yield." live from j.p.gan asset management. over to china we go, where chinese markets ended the week on a stronger footing, with the yuan reversing an earlier slump spurred by the central bank's move to weaken daily currency fixing by the most since 2016. joining me to discuss china and emerging markets is a diana amoa, senior portfolio manager involved with emerging markets debt here at jpmorgan, and still ele. me is bob mich always good to catch up with you. your thoughts on china, and whether you have a handle on what is happening with the pboc and currency policy, and the things that have changed in the last couple of months? diana: i think what the chinese are doing is the right response. what we have seen in the last few days is they have stepped back from leading into the currency. they are willing to let the market determine where the currency levels trade. initially they were fixing them stronger, but they are willing to see where the market is pricing it. that is the right response, it could like

assethead to the jpmorgan management trading floor with jonathan ferro, posting bloomberg's real yield.m. eastern. what you have for us today? jonathan: i am looking forward to it. i have got to say the president tweets seem to have more of an impact than chair powell himself. the president is doubling down his assault on federal reserve independence in the minds of many. is key question for markets whether it really has an impact on what chair powell does next. i will put that question to above michael here at jpmorgan mr.t management, -- to michael here at jpmorgan asset management, along with others. it is 30 minutes dedicated to fixed income. we are really looking forward to the program just around the corner. shery: we are looking forward to it, thank you, jonathan ferro, hosting bloomberg's real yield today at 1:00 p.m. eastern. kevin: coming up, fcc is raining on sinclair's parade. we have what the hearing order could mean for the sinclair tribune merger, ahead. this is bloomberg. ♪ ♪ kevin: this is bloomberg markets: balance of power.i am kevin cirilli in washington, d.c. shery

yield" withreal jonathan ferro at 1:00 p.m. eastern from new york. to turn -- tune into gtv . jon: from new york city, i am jonathan ferro with 30 minutes dedicated to fixed income. this is bloomberg "real yield." ♪ coming up, solid payrolls growth shows there is still more room to run for america's labor markets. standoff,hina trade and trade-off brings one more to flatten the curve. another solid payrolls report. >> this is a very solid or appropriate

. ♪ jonathan: from new york city, for our viewers worldwide, i'm jonathan ferro with 30 minutes dedicatedxed income. this is "bloomberg real yield." ♪ jonathan: coming up, u.s. gdp -- the fastest growth since 2014. the president says there's more to come. the junkiest of junk debt continues to outperform. supply scarcity supporting high yield. and looking ahead to a big week of central bank decisions, the boj and fed coming up. we begin with a big issue, is this as good as it gets? >> maybe this is the one time as good as it gets q2 record high print.

i am jonathan ferro with 30 minutes dedicated to fixed income. this is bloomberg real yield. coming up, wrapping up the first half with treasury closing down emerging-market assets facing down one of the worst quarters in almost three years. just how safe is the new safety trade? investors flocking towards leverage loans. can u.s. markets be coupled from the rest of the world? >> the u.s. rate looks like a better place to be than the rest of the world. >> there is one strong island those performing well. u.s. economyhe continues to do well and it can be isolated as long as the shocks are not massive. >> we are still looking at an economy driven by the consumer. when we think about the economic health of the u.s., still strong. the consumer remain strong. >> the u.s. will ultimately not be coupled into part of a global economy. >> you are going to see some broad weakening in the u.s. high-yield bond market. people continue to say the economic are solid. trade gets out of control, which i don't think it will. i think there will be a resolution. if a mistake is made, and you are

you can turn on your radio to listen to tom keene and jonathan ferro from 7:00 to 9:00, and tom keeneto 10:00. live from new york, this is bloomberg. ♪ ♪ julia: this is bloomberg -- emma: this is bloomberg daybreak. today,up later representative leonard lot, jersey.an from new now it's your bloomberg business flash. tesla has called a timeout. jersey. they have been working around the clock in recent weeks to beat a construction goal for its model three sedan. they are now causing production this week to allow tesla to do major it -- basic maintenance and upkeep. billionaire property investors david and simon reuben has sold part of their stake in -- for $2.8 billion. global switch is planning an ipo next year. is moving to end losses totaling $5.2 billion. the ceo tony douglas has shuffled management, ray arranged business, and put the brakes on his attack -- attempt to bridge the gap between others. >> this program is about making sure we have case, we have urgency, and we have excitement in delivering on that. emma: you will have more from that interview coming up at 10:00 a.m. eas

. ♪ jonathan: from new york city, i'm jonathan ferro. this is 30 minutes dedicated to fixed income. s "bloomberg real yield." ♪ jonathan: coming up, wrapping up the first half with treasury bears closing gaps. rates and a, and heights on yields. emerging-market assets are facing down when of the worst quarters and almost three years. just 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

. ♪ jonathan: from new york city for our viewers worldwide, i'm jonathan ferro with 30 minutes dedicatedincome. this is "bloomberg real yield." ♪ jonathan: coming up, solid payrolls growth shows there is still more room to run for america's labor markets. shots fired in the u.s.-china trade standoff, newly implanted -- implemented trade tariffs hanging over investor sentiment, and trade-off brings one more use to flatten the curve. the flattest since 2007. we begin with a big issue, another solid payrolls report. >> i think this is a very solid report. >> that was pretty encouraging. >> this is a great jobs report.

el-erian andhamed jonathan ferro. happy monday everybody.ty, am jonathan ferro. 30 minutes until the start of trading. this is the countdown until the open. coming up, looking ahead to a week full of central bank decisions. the administration's outlook. as policymakers are obsessed overt trade wars, caterpillar manages to boost their year's outlook. future is going nowhere ahead of a jampacked week of action in the financial markets. in the fx market, a touch of dollar weakness. treasury yields, along with core number bond markets worldwide, yields leading higher right three basis points on the u.s. 10 year. the u.s. growth rising at the fastest pace since 2014. analysts expecting the pace -- putting them at odds with the trump of ministration's outlook. >>

elsa: i was having this conversation earlier with tom keene and jonathan ferro.s like splitting hairs. it should not make a huge amount of difference. markets are sensitive to the turning point, but the message from the ecb is rates remaining on hold for at least a year and when they rise, they will rise slowly. mark: let's talk trade, given that tomorrow is the big day when tariffs come into play for china and the u.s. is it priced into fx markets? elsa: it should be by now. this has been a slow process in terms of getting the tariffs through the legislative loops in the u.s. i have been announced for some time. we know they will come and china will respond. will the u.s. follow through on its threat to impose more tariffs be on the $14 billion we have heard about? that is where markets will have to start pricing in. vonnie: what will happen to the chinese yuan? it is interest rate convergence, but this trade is turning into a war quite rapidly and will make the governor think twice. what should he do, the pboc governor? elsa: we saw earlier this week that the p

. ♪ jonathan: from new york city for our viewers worldwide, i'm jonathan ferro with 30 minutes dedicatedan: coming up, solid payrolls growth shows there is still more room to run for america's labor markets. shots fired in the u.s.-china trade standoff, newly implemented tariffs hanging over investor sentiment, and trade-off brings one more use to excuse to flatten the curve. the flattest since 2007. we begin with a big issue, another solid payrolls report. >

. ♪ jonathan: from new york city for our viewers worldwide, i'm jonathan ferro with 30 minutes dedicateds "bloomberg real yield." ♪ jonathan: coming up, u.s. gdp --the fastest growth since 2014. the president says there's more to come. the junkiest of junk debt continues to outperform. supply scarcity, supporting high yield. and looking ahead to a big week of central bank decisions, the boj and fed coming up. we begin with a big issue, is this as good as it gets? >> maybe this is the one time as good as it gets q2 record high print. >> this is really about shifting the growth debate

. ♪ i am jonathan ferro with 30 minutes dedicated to fixed income. this is bloomberg real yield.p the first half with treasury closing down emerging-market assets facing down one of the worst quarters in almost three years. just how safe is the new safety trade? investors flocking towards leverage loans. can u.s. markets be coupled from the rest of the world?

tom: we just want to be jonathan ferro. that is all there is do it.wear waistcoat but i do not pack it. matthew, thank you very much. right now in new york, here is taylor riggs. fight: china is vowing to back against trumps latest threat on tariffs. the u.s. pushed ahead to impose tariffs on an additional $200 billion of chinese products and included are list of goods that includes television components and refrigerators. china calls move unacceptable and is vowing to retaliate. thailand, the boys trapped in the cave are being described as in good health. an official says the boys lost weight but they and their coach are take -- took care of themselves. all 13 are now recovering at a hospital. algebraic investments considers the pound to be mispriced and should be 10% lower. the portfolio manager says the market is too comfortable with the political uncertainty in the u.k.. he says traders overestimate the chances of a bank of england rate hike. he says the pound should be closer to $1.20. global news 24 hours a day, on air and @tictoc on twitter, po

ferro. this is bloomberg. jonathanor our viewers worldwide, i'm jonathan ferro. 30 minutes until the start of trading, this is the countdown until the open. president trump turning up the pressure on china, threatening to slap tariffs on pretty much all imports. and meeting presidential resistance, the dollar rally, the yuan still struggling to find stability, and stepping on the fed's independence, the white house pushing back against high rates. in the market, 30 minutes away from the opening bell. futures negative eight points on the s&p 500, down one third 1%. , treasury yields blaze higher. the conversation, all about rates. the president tweeting moments ago the united states should not be penalized because we are doing so well, tightening now hurts all that we have done. the u.s. should be allowed to recapture what was lost due to a legal currency manipulation and bad -- illegal currency ma

jonathan: from new york city, i am jonathan ferro. 30 minutes until the start of trading. the open. ♪ jonathan: coming up, global equities kicking off q3 lower. looking ahead to a big week in the u.s.-china standoff. mexico is getting a new president, much further left, fueling market uncertainty. this monday morning features -16 points on the s&p. pointslower by two basis on the 10-year. a stronger dollar story. the third quarter kicking off with fundamentals looking fairly solid with fears over growth gripping investor sentiment. >> i think the equity rally has run out of steam.

jonathan ferro is joined by terry haines. jonathan: 13 minutes until the start of the trading. this is the countdown to the open. global equities rallying in china. earnings looking better than good. google delivering a monster quarter. sales beating all estimates. ubs posting better-than-expected results. 30 minutes away from the opening bell, here is the story for you. futures positive. the dollar weaker. euro-dollar approaching 117. treasuries fully stable with yields floating by the just single basis point on a u.s. 10 year. the main story, investors embracing a little more risk. china slowly sifting -- shifting towards stimulus. >> weakness in china would be problematic. it is still a tricky handle.

. ♪ jon: from new york city for our viewers worldwide, i am jonathan ferro.. ♪ jon: coming up, the u.s. delivering the strongest growth since 2014. amazon delivering big profits, jeff bezos is now talking about efficienciesa. er projecting users will continue to decline. 30 minutes away with the opening futures aren't changed, the dollar is giving up a little bit of a strength, euro dollar unchanged, and treasuries of a little bit of a bid. in 30 minutes, the president weing a victory lap and expect them to speak on the economy and 9:30 eastern time. with u.s. growth accelerating since the fastest pace since 2014, wall street weighing and if this is a

. ♪ jonathan: from new york city, i am jonathan ferro. 30 minute until the start of trading.o the open. ♪ coming up, the bank of japan avoiding major changes. the nasdaq stabilizing after a three-day rush to exit tech stocks. earnings and focus to stop the bleeding. apple focused on sales and services growth. 30 minutes away from the opening bell. futures positive up by six points on the s&p 500. euro-dollar up to 1.1728. the bank of japan keeping interest rates steady and maintaining its target on the 10 year yield but indicating it would lead the yield -- let the yield fluctuate by 10 basis points. >> the bank of japan is keeping accommodation in place as far as the eye can see. >> markets are telling you this

jonathan: from new york city for our viewers worldwide, i'm jonathan ferro.e open. coming up, the trade standoff continues. 24 hours away from the world's two largest economies sliding deeper and conflict. in some ecb members are uneasy about rate hikes as the euro is rallying as expectations are weighed in. and president trump keeps piling pressure on opec to boost production and bring down prices. 30 minutes away from the opening bell, futures looking solid, up 19 points on the s&p 500. there is your euro at 1.1713, and u.s. treasuries bleeding higher, two basis points to 2.85. the united states is set to impose tariffs on $30 billion of chinese goods at midnight tonight. china's promising immediate retaliation. in

. ♪ ♪ jonathan: from new york city, i am jonathan ferro. this is the countdown to the open. economy looking solid and an optimistic chair powell getting ready to deliver his testimony. confirminghs blankfein is stepping down, solomon taking over. plunging, subscriber growth misses by a mile. the market opens in 30 minutes. futures negative 5%. yields, in a single basis point at 285 -- 2.85 on a u.s. 10 year as we continue to count down to jay powell's semiannual testimony to congress. analysts weigh in on a flattened yield curve. >> i think we will see an inversion this year,

. ♪ jon: from new york city from our viewers worldwide, i am jonathan ferro.untdown to the open. ♪ jon: coming up, president trump a meeting for dropping all ariffs and subsidies. fixed incomebank trading recording the weakest second quarter since the financial crisis. downes a touch of softer, just over two point on the s&p 500. euro-dollar stays around 117. a touch of weakness against the u.s. dollar. 10-year yield coming just a basis points to 2.94. the u.s. president with tough boards for the eu ahead of today's talks. pres. trump: they sound nice but they are rough. they are all coming in to see me tomorrow. i said, youcoming,

. ♪ ♪ jonathan: from new york city, i am jonathan ferro. this is the countdown to the open.in the u.s.-china trade war. hanging over investor sentiment, trait offering one more excuse to steamroll the treasury curve. the labor market still absorbing spare capacity, unemployment rising, wage growth slowing. 30 minutes away from the opening bell with futures unchanged. to 1.1744. up yields in treasuries up two basis points. the payrolls report, the economy adding 213,000 jobs with the unemployment rate rising to 4%. alan krueger weighing in on the results. alan: this will not change the fed to change course by itself.

. ♪ jon: from new york city for our viewers worldwide, i am jonathan ferro. to the open. ♪ currencyng up, china's slumping to a one year low, the central bank showing little sign of stepping in. trade is pushing below. playing the trade blame game, lowering on significant headwinds. future is looking like this, down nine points, up by one third of 1%. the dollar showing strength. and atllar down treasuries are stable with yields at 287. we begin the program and united states with the top story, comcast surrendering to disney. let's could the taylor riggs. longer comcast is no going to compete with disney for the big chunk of the 21st century fox entertainment assets. comcast will focus on winning control of the pay tv