larry fink is worried about inflation, josh friedman is fine. should i take a bit of tail risk hedging? will talk about amc. let's talk about the fed. they will wind down a portfolio of corporate debt purchased in the emerging lending facility. policymakers say portfolio sale will be gradual and orderly. additional details provided -- will be provided before the process begins. earlier patrick harker said that the time should be now. >> it is perfect for us to slowly, carefully move back on her purchases at the appropriate time. when that is, that is something you need to start discussing. we have to be careful removing accommodation so we don't create any kind of taper tantrum. that's why we need to discuss very early and very often what we are going to do. manus: alan higgins. let's check if he's had a 40 year career in finance or not. you can asset question moment in -- mr. higgins. how they dared to buy corporate bond etf's, and then when they bought junk. it's not the size of the bond, but is there any significance in the messaging at all f

alix: that was josh friedman, canyon partners cofounder and co-ceo. watch more on your bloomberg terminal. let's delve deeper into the numbers. this looks at pricing pressures. the yellow line is cpi. the white line is ppi final demand. the blue is the average final price index. they are all shooting to highs we haven't seen in years. in particular, you've got factories reporting supply chain pressures get inputs, labor, prints rotation bottlenecks -- transportation bottlenecks all pushing upward supply cannot wind up meeting the demand. how do you play that, even if it is temporary? joining us to help us break it down is dan niles. it is temporary, but it is still here. what you do with that? dan: i think the first thing you have to think about is is it temporary, because you have to remember you had the lowest recovery from a recession in history. normally recoveries average about 4%. so you've got company's really cutting back on their expansion over the last decade, especially last year during the pandemic. so this could be much longer-lasting tha

today i am talking to josh friedman, the cofounder and co-ceo of canyon partners. edge fund pioneer in the early 1990's. and today, his firm oversees $27 billion. distressed debt situations, lehman brothers, caesar's, and puerto rico, have produced some of canyon's biggest wins. but, thanks to trillions in central bank stimulus, there is not much distress anymore. josh says it is just a matter of time. josh: you have big portions of the equity markets that are in bu

haidi: canyon partners founder josh friedman has been acquitted , and he is certain of one thing -- that boom ends in a bust. he is concerned over the impact of easy money. >> as i look at the markets today, i think some of the most important characteristics are that there has been a frenzy of acquisition activity, driven in part i these low interest rates. you have private equity in a dominant presence in the market. venture capital, dominant presence in the market. specs, which are facilitating public offerings, etc. you are in a -- you are imitating a transaction-rich environment, one in which many of the participants are in business with the sole goal of buying and selling companies, and when they do this in a hasty way and use aggressive lenders who are dying to give them money, there are always two kinds of opportunities in the market that exist. one is at the point where those acquisitions take place. people need capital, and that is not always an efficient process. it is not always a neat process, but it is a process where sometimes there is a lot better risk/return than simply b

josh friedman is the cofounder and co-ceo of canyon parkers -- of canyon partners.d his partner worked in the 1980's and found that their own asset management firm 1990. in a bloomberg interview, the men discuss the climate for takeovers. >> deep portions of the equity market that are in business just to make acquisitions. that is what a private equity firm business is. spac's go out of business if they do not make acquisitions. when people make acquisitions and use debt, there will be mistakes. global news 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. i am ritika gupta. this is bloomberg. ♪ >> this has been an extraordinarily productive year. we have not missed much as a result of being out of the office. longer-term it has big impacts on the ability to train and recruit and retain the best of our people. this ultimately is an in office experience. i expect by the fall we will be more in the office. tom: the debate. ken jacobs there. work from home, in office. you know the story.

anna: that was josh friedman, really interesting conversation therefrom canyon partners cofounder. climbs. we will discuss it next. this is bloomberg. ♪ anna: welcome back to the european market open. we are into the trading session to show a weakness in london and more modest and selling. the dax is down. the french pmi coming in in line with the estimate. that is not moving markets very much. the euro is a little weaker in the past few days and it remained so -- it remains so. our current rate strategist joins us. i mentioned the weakness in the euro, we have it dropping in a few minutes, that does not show the cause of it. the dollar strength is slightly more well grounded. what would explain that for you? >> i think the dollar moving ahead is bigger. we have seen dollars change in the past few days. kind of skeptical about it. i think the dollar advanced in the third quarter but in the second quarter, it did not go anywhere. unfortunately, it is declining since the first quarter. the real rates on the dollar is considerable over the past years. it was next to nothing five years