jon: from new york city, i am jonathan ferro. this is "bloomberg real yield." ♪ jon: coming up up, junk debt a shelter from the storm. the fed indicating it will not be enough to shape policy. riskiest partthe of fixed income, a basket of stability in a volatile world. >> credit conditions and lending standards remain extremely generous. >> we have been saying it is too extensive to buy but too early to short. >> highly leveraged equities are underperforming. the fixed income credit markets are not that worried about it. it is a really interesting disconnect and quite unique. >> high yields should be compared to equities. high yields are looking more attractive. >> if you see lending standards tightened and credit spreads widening on a sustained basis, you know you will create a feedback loop into equities and head into recession. we don't think that is a story for the next few quarters yet. >> the u.s. recession looks a long way away to meet. you would normally see credit ifrting to weaken and widen the underlying growth picture

>> from new york city for our viewers worldwide, i'm jonathan ferro. bloomberg real yield. jonathan: coming up, from the global equity market. the fed indicating a market enough to won't be shake policy and the optimism supported by strong u.s. -- 3.5%. we begin with a big issue, but risk is part of a fixed income. and bastion of stability in a volatile world. >> credit conditions remain extremely generous. it's too expensive to buy, but it's too early to short. >> if you look at highly leveraged equities, they are underperforming. yet the fixed income credit markets aren't really that worried about it. it's a really interesting disconnect and quite unique. >> high-yield should be compared to equities and somehow made even on an absolute basis, more attractive. >> if you start seeing lending standards being tightened, credit spreads widening on a sustained basis, you know you are going to create that same feedback loop into equities and you are going to head into a recession. we don't think that's a story for the next few quarters. >> u.s. recession still looks a long way aw

>> from new york city for our viewers worldwide, i am jonathan ferro. this is bloomberg "real yield." ♪ coming up, risk assets try to stabilize following a week of outflows. the federal reserve taking a presidential beating. still looking to deliver more rate hikes leaving most wall street strategists to curve flattening going at the 2019. -- into 2019. we begin with a big issue. a messy week on wall street. >> we will see more talks about u.s. treasuries. >> for us, fixed income is the biggest risk in the financial portfolios. >> what to watch is going to be credit than treasuries, because of we continue to see rates rise, what we may see is people bail out of certain sectors of credit. >> we think that means you ought to be cautious in high-yield, high grade, those are places where you need to be careful. >> there is no new information that came out about the fed. if the market suddenly got it, that is the market's issue. the fed has been clear. >> at some point to when they start fighting hard and we see the corrections and you see the implications a

♪ jonathan: from new york city for our viewers worldwide, i am jonathan ferro with 30 minutes dedicatedo fixed income. this is "bloomberg real yield." ♪ jonathan: coming up, junk debt a shelter from the global equity market storm. the fed indicating a market correction will not be enough to shape policy. the optimism supported by strong u.s. gdp. a better than expected 3.5%. we begin with the big issue the , riskiest part of fixed income, a bastion of stability in a volatile world. >> credit conditions and lending standards remain extremely generous. >> what we have been saying a long time on credit is it is too extensive to buy but too early to short. >> a basket of highly leveraged equities are underperforming. yet the fixed income credit markets are not that worried about it. it is a really interesting disconnect and quite unique. >> high yields should be compared to equities. certainly on a risk-adjusted basis, maybe even on an absolute basis, high yields are looking more attractive. >> if you start see lending standards tightened and credit spreads widening on a sustained basis, yo

. ♪ ♪ jonathan: i'm jonathan ferro, this is bloomberg real yield.t to head to the auction block or $230 billion in treasuries were auctioned through the week. i want to focus on the 30 year sale at $15 billion which actually went ok into a yield of 3.34% with some healthy demand. the ratio at the highest level since january. we then turn to china, the trade war with the united states has $3 billion of bonds which received totals more than four times the issue in size. u.s. participation, notably lower compared to last year. on the corporate side this week, bloomberg is said to have gathered enough orders to cover its plan private placement of junk bonds. all of that displayed -- despite some of the volatility displayed. the president of the united states, once again, taking on the fed chair jay powell. take a listen. trump: i think the fed is far too stringent and they are making a mistake. and it's not right. and despite that, we are doing very well. it's not necessary, in my opinion. and i think i know about it better than they do. believe me. me.

. ♪ ♪ i'm jonathan ferro, this is bloomberg real yield.t to head to the auction block were netflix was the headliner and high-yield. the company sold more than $2 billion. it had to offer yields of the high end of the price expectation. the first time that happened. u.s. debt investors are helping to finance consolation grin spread. it sold more than $2 billion in bond. space-x isd loans, said to be working with goldman sachs to raise $500 million of leverage loans. valuation has climbed to about $28 billion. the former fed chair joining a chorus of people concerned about the rise of leverage loans. ,he said in an interview worried about the systemic risk associated, there has been a huge deterioration in standards. big issue that she has chimed in on and many others have as well. rachel from goldman sachs asset management, blackrock, and fixed income. i raised that quote because i'm wondering whether former fed officials and current fed officials are trying to tell us something. the guiding light at the moment seems to be worried about fi

. ♪ jonathan: i'm jonathan ferro. this is "bloomberg real yield." want to head to the auction block now, where the u.s. treasury continues to swell its issuance. they had its first sale of eight week bills. the $25 billion auction drawing a yield of 2.17% with a bid to cover ratio of 3.13%. amid the political turmoil, turkey attracted over $6 billion in bids in a sale of dollar bonds, the government offering $2 billion of five-year debt with a yield of 7.5%. in corporate, uber increased the size of its debut bond offering as orders for the private placement swelled. the sale included $1.5 billion of eight-year notes and $500 million of five-years. still with me, guy lebas and kathy jones. matt freund is also here. matt, let's start with you. is this uber deal going to start looking a lot like that tesla deal did from, say, 12 months ago? matt: i don't think so. so the uber deal, as you described, there is a large equity cushion below it. it was priced very well and placed very well. and we have seen the bonds really outperform over the last couple o

." ♪ jonathan: i'm jonathan ferro. this is "bloomberg real yield."e want to head to the auction block, where comcast has the second biggest deal of 2018 and the fourth largest u.s. debt sale on record. the company selling $27 billion of unsecured bonds in 12 parts in order to finance the $39 billion acquisition of sky. the longest portion of the offering, a 40-year security yielding 1.75 percentage points above treasuries. till rate announcing to raise $450 million through a private placement of convertible bonds. the notes for the world's largest publicly traded marijuana company will be due in 2023. and over in europe, a little nerve showing up in the market. this week, two-year bond sells reported and russia cancelled a planned auction of 10 billion rubles of short-term debt due to lack of acceptable bids. a lack of issuance squishing risk premium on u.s. junk bonds, the lowest level since july, 2007. high yield sales are about 30% lower this year than for the same period of 2017 -- on pace for the slowest year since 2009. still with me to discuss

. ♪ jonathan: i'm jonathan ferro. this is bloomberg "real yield." to the auction block, the u.s.reasury continues its issuance. may 25 billion dollar auction drawing a yield of 2.17% with a bit to cover ratio of 3.13. amid the political turmoil, turkey attracted over $6 billion in a sale of dollar bonds. a yield of 7.5%. incorporates, uber increase the size of its bond offering as orders swelled. it included $1.5 billion of eight-year notes and $500 million of five-years. guy lebas and is kathy jones. matt freund is also here. deal going to start looking a lot like that tesla deal from 12 months ago? >> i don't think so. the uber deal, as you described, there is a large equity cushion below it. it was priced very well and placed well. we have seen the bonds outperform over the last couple of days. -- wenk the uber story like it from an equity side, risk reward, but there is a lot and positive fundamentals there, especially on the shorter piece. jonathan: another example of the equity like attractiveness being captured in the debt market when it should not be? >> we are seeing peo

. ♪ >> from new york city for our viewers worldwide, i'm jonathan ferro. bloomberg real yield. ng up, from the global equity market. the fed indicating a market enough to won't be shake policy and the optimism supported by strong u.s. -- 3.5%. we begin with a big issue, but risk is part of a fixed income. and bastion of stability in a volatile world. >> credit conditions remain extremely generous.

. ♪ ♪ jonathan: from new york city for our viewers worldwide, i am jonathan ferro with 30 minutes dedicatedme. this is "bloomberg real yield." ♪ jonathan: coming up, junk debt a shelter from the global equity market storm. the fed indicating a market correction will not be enough to shape policy. the optimism supported by strong u.s. gdp. a better than expected 3.5%. we begin with the big issue the , riskiest part of fixed income, a bastion of stability in a volatile world. >> credit conditions and lending standards remain extremely generous.

." ♪ ♪ jonathan: i'm jonathan ferro. this is "bloomberg real yield." time for the final spread. in the next week, we have the first round of the brazilian presidential election plus a fresh round of u.s. inflation data. bank earnings and the fed's john williams will be speaking. still with me is bob miller, victoria fernandez and sean newman. fast-forward to the brazilian election. here is the chance to talk em. i know you have been itching to do it. tell me what we should be looking for. sean: jon, it's a classic election. we have never seen an election like this in brazil. what we have here, we can charted the supporters of the different candidates. elections are this sunday. we'll have a contested election. polls released overnight suggest it will likely end in a second-round runoff. even though the field has 13 candidates that are contesting the election. probably will be a race between two individuals. jonathan: how are you positioned in terms of capital, allocation exposure to that? sean: we are somewhat flat right now, jon. we think the market is somewhat overpricing the

coming up, jonathan ferro. this is "bloomberg." ♪ jonathan: from new york city, i'm jonathan ferro. en starts now. -- the countdown to the open starts now. ♪ jonathan: coming up, the biggest reversal in three years leaving -- leaving the s&p on the brink of a correction. , saids. raises the stakes to be preparing tariffs on all chinese imports. the pain for tech extending into a fifth straight week. the attention turning to facebook. futures rolling over again. we are positive by .1%. the fx market, the euro-dollar stable. byasuries softer, yields up three. in the face of rising volatility, calls for an equity rebound. >> we have enough for short-term relief. >> we're looking for a cyclical bounce back. >> i would be looking to get long equities. >>

coming up, jonathan ferro. ng at a potential rebound going to help lift the dow. this is bloomberg. ♪ jonathan: i am jonathan ferro. the countdown to the open starts now. ♪ jonathan: equity market volatility going nowhere. the s&p 500 on a losing streak. the president stepping up, an attack on chairman powell. ceosche bank's latest facing the same old problem. where to find revenue growth. openinges away from the doubt. futures negative. a strong dollar story. treasuries stable. yield. after a message few weeks in the equity market, investors trying to navigate the volatility. >> this opportunity is in equity. the dow move in stocks is excessive. isto meet your risks, it next year's story, not this year's story. >>

. ♪ >> from new york city for our viewers worldwide, i am jonathan ferro. yield." ♪ coming up, risk assets try to stabilize following a week of outflows. the federal reserve taking a presidential beating. still looking to deliver more rate hikes leaving most wall street strategists to curve flattening going at the 2019. -- into 2019. we begin with a big issue. a messy week on wall street. >> we will see more talks about u.s. treasuries. >> for us, fixed income is the biggest risk in the financial portfolios.

jonathan ferro. this is bloomberg. ♪ jonathan: i am jonathan ferro. open. ♪ jonathan: pockets of pain in em, inflation surging in turkey. a four-year high. the president wrapping up with russia on saudi arabia. italian bombs finding relief. deficit reduction. in the markets, 30 minutes away. futures better. 11 on the s&p 500. 4/10 of 1%. euro dollar, 115.28. up to basis points on the session. in emerging markets, pockets of pain. overshadowing easy concerns. nist --g's opinion, columnist on why it is too soon. >> be careful. higher your prices.

jonathan: from new york city, i'm jonathan ferro. 30 minutes until the start of trading. jonathan: coming up, treasury is getting the move they have been waiting for. saying it's al long way from hitting neutral. bloomberg revealing had china used a tiny chip to infiltrate some of america's biggest companies. 30 minutes away from the opening bell. a bit softer this thursday morning. down 10 on the s&p 500 futures. treasury yields off the session highs. a bit of dollar weakness. story, the treasury bears. >> what has been driving rates is inflation expectations. >> the market is worried maybe the fed will get behind the curve on inflation. >> powell spoke reasonably hawkish yesterday. his

chris grisanti will be joining jonathan ferro. this is "bloomberg." ♪ i'm jonathan ferro.e open starts now. ♪ coming up, the treasury market reopening, hitting seven-year highs. the imf cutting its global growth forecast, blaming trade tensions and emerging-market stress. the international energy association telling opec to boost output of oil. , negative to take nine points on the s&p. market, the euro-dollar down .4%. printing a after fresh seven-year high, backing up a little. down one basis point. treasuries still under pressure after reporting their biggest weekly decline since february. >> this has been a long time coming. >> we will see more talk. >> yields have been too low. >>

forget to tune in to bloomberg posthumous radio, jonathan ferro -- bloomberg's radio, jonathan ferrowill be talking about what he has to say this afternoon. this is "bloomberg." ♪ guy: live from london, i'm guy johnson. vonnie: live from new york, i'm vonnie quinn. time for our stock of the hour, ibm moving on its biggest ever m&a transaction. it was down two point 25% after saying it was going to buy red hat. hat, theying red largest m&a acquisition, also the second largest ever. that is a hefty deal for ibm. red hat is in the cloud services , focused on open cloud which is you get the code for free but you pay a subscription to get upgrades. the cloud is something ibm wants to bolster. this was a $1 trillion market leicester. ibm looking to boost -- market last year. ibm looking to boost revenue growth. turnaroundk we had a going on in past quarters. that is the exception, not the rule. in its most recent quarter, revenue was down 2.1%. cloud revenue did grow 10%, down 20% in the previous quarter. ibm looking for this deal to boost cloud growth and revenue and move the company in a

coming up, jonathan ferro will be speaking with biggest netflix bear on the street. esterday, this is bloomberg. ♪ jonathan: i am jonathan ferro. the countdown to the open starts now. ♪ jonathan: coming up, netflix crushing estimates. sending the stock surging. the market wide open for uber, the company upside. calml markets relatively compared to last week. investments waiting for federal reserve minutes. 30 minutes away from the opening. future stocks up by 10 on the s&p. stronger dollar against the euro. ofasuries with the smallest bits recovering basis points on the u.s. 10 year. earnings get off to a strong start. equity markets remaining restraint. people who aree significantly overweight. >> people are coming late. >> we see of you from how growth will play out. >>

mohamed el-erian will be joining jonathan ferro. g. ♪ jonathan: from new york city i'm jonathan ferro. the countdown to the open starts now. coming up, fund managers increasingly bearish. showing global growth expectations. the lowest since 2008. the focus turned to take. netflix the first bank stock out of the gate. reportedly receiving monster ipo proposals valued the company at $120 billion. that proposalnd set to be goldman sachs and morgan stanley. euro-dollar 115.89. futures of the big this morning ahead of the open with investors turning their attention to the next batch of corporate earnings. >> earnings growth and revenue growth are slow. >> scarily high. >>

open, gdping up, the is on the upside and jonathan ferro will be talking with mick mulvaney.. this is bloomberg. -- live at from new york, this is bloomberg. ♪ from new york city, i'm jonathan ferro and the countdown down to the open starts now. ♪ jonathan: coming up tech numbers are disappointing. officials are indicating the pain inflicted by the market will not be enough to derail a optimism coming in at a better than expected to three point 5%. the market is 30 minutes away from the opening bell, we are coming in soft, just off session lows. optimism coming in at a better than expectedther strength with the u.s. dollar. treasuries have the smallest of two basisng by points, and 310 on the three-year. >> we always knew october was going to be a difficult month for u.s. high yields pealed -- yields. down modestly in valuation.

. ♪ >> from new york city for our viewers worldwide, i am jonathan ferro. yield."♪ try toup, risk assets stabilize following a week of outflows. the federal reserve taking a presidential beating. still looking to deliver more rate hikes leaving most wall street strategists to curve flattening going at the 2019. we begin with a big issue. a messy week on wall street. >> we will see more talks

program, driving home on your way out of london, tune into the cable as i will be there today and jonathan ferroere on bloomberg radio at the top of the hour, live on your london station. that is are coming up. this is bloomberg. ♪ guy: live from johannesburg, i am guy johnson. vonnie: this is the thing close on bloomberg markets. -- this is the european close on bloomberg markets. guy: stock of the day is wpp, shares sinking because of earlier cutting sales outlook. generating a big earnings miss. some say they have been too slow to a that is structural changes in the ad business. todaych of what we saw was a legacy? inyou would have to say most terms of the ceo having only been there since september and some of this has been building up over the last 18 months. in, ares are coming creative agency where they are struggling to adapt to the digital demands of consumers. mark read says they have not repositioned themselves well enough with too many tv commercials and designing newspaper advertisements, not what clients want today. broadly, unexpected slowdown in the u.k. and western continental eu

. ♪ jon: from new york city, i am jonathan ferro.oomberg real yield." ♪ jon: coming up up, junk debt a shelter from the storm. the fed indicating it will not be enough to shape policy. riskiest partthe of fixed income, a basket of stability in a volatile world. >> credit conditions and lending standards remain extremely generous. >> we have been san

there with john williams, lawrence kudlow and jonathan ferro in conversation.on of jobs day. this is "bloomberg." ♪ taylor: this is bloomberg surveillance. i'm taylor riggs. flash.get the business toyota is recalling more than 2 million hybrid cars, including the prius. the problem, a software malfunction, that could end in a crash. more than half of the cars are in japan. more than 800,000 are in north america. it is the second major recall in a month. in denmark, the financial needstors say danske bank to hold more capital in the wake of that money laundering scandal. the head of the financial supervisory authority tells bloomberg the bank must be prepared for fines and market fallout. the regulator ordered danske to toble its capital buffers $1.5 million. samsung has eased concerns about a drop in demand for memory chips. the company posted profits thanks to brazilian sales of its integrated circuits. samsung is struggling to boost smartphone sales. that is your business flash. tom: thanks so much. funds onrd of gabeli the failure of apple. bring up the char

. ♪ jon: from new york city for our viewers worldwide, i am jonathan ferro.berg "real yield." ♪ coming up, risk assets try to stabilize following a week of outflows. the federal reserve taking a presidential beating. still looking to deliver more rate hikes leaving most wall street strategists to curve flattening going at the 2019. we begin with a big issue. a messy week on wall street. >> we will see more talks about u.s. treasury's.

i'm jonathan ferro. ♪ jonathan: coming up, the promise of extra stimulus in china, helping investors looking back at a week full of volatility and ahead to a week full of tech earnings. assets going nowhere fast. populists: for dialogue with the eu. a brand-new trading week. the cash open around the corner with future positives up on the s&p 500. 115 on euro-dollar and 11487 and in the treasury market, 318 on a u.s. 10 year. overlooking after days of volatility. >> there is tremendous amount of anxiety in the market. >> far to a complacent. this quarter will really start to show up.