jonathan: joining me around the table is george rusnak of wells fargo, kathy jones, fixed income usategistand coming to from atlanta is matt brill of invesco. you,, let's start with inflation for the weekend which was most important chinese api or u.s. cpi? kathy: it is hard to translate chinese wholesale prices through to the u.s. and the rest of the world. i think the u.s. was significant. yields last year year just north of 2%. i think a lot of that was the result of the pulled back we had of the risk off trade coming back. you are seeing risk off coming back. yields are reaping up more than inflation. jonathan: the chinese number at the start of the year was vertical for the reflation trade. will it be important in the coming months, and can we maintain that trend? commodityything but a rebound fueled by a weaker dollar? kathy: i think they are both what we are seeing in the data. we had a pullback in the dollar against chinese young, giving us a rebound in commodity prices and hurricanes from in there. i don't think there is much more to it. jonathan: in terms of inflation data global

jonathan: kathy jones, the two year, that is a stubborn trade. he problem is we have been saying that for how long now? jonathan: quite a while. kathy: yeah, and so people get tired of fighting the trend. they are starting to stand back, but it doesn't make sense. i am not willing to pay the government of germany for the privilege of buying their debt. jonathan: certainly not 70 basis points. george, i would ask the depot rate of the ecb is -40. we have an ecb talking about pulling back, pulling back on qe, as well. yet, bund yields have not really moved. george: they are pulling back on qe, but not necessarily on their rates. you are looking at a relative value. you are right, negative seven basis points doesn't make sense, but it does when -40 basis points is your alternative. from a relative perspective, it makes sense. but an absolute perspective it does not. i do think that at some point you get through quantitative easing, then you address rates, and at that point, that is where you see a significant move. jonathan: is that something that wi

still with us is george rusnak from the wells fargo investment institute, kathy jones, and matt brill from invesco.

up later, kathy jones of the charles schwab. she is there fixed income strategist. stay with us.ning at retail sales on its but the befalling in august. july was also revised downward. how much of that is hurricane impact? joining us now is ivan feinseth. good to see you, thank you. nothad home-building stores reporting a decline, non-store retailers reporting a decline. think they would go gangbusters around a hurricane. >> i think you will see that later on. the hurricane put a damper on sales, people did not go out. people tried to get out of the hurricane area, not focused on shopping. the biggest thing happening is the consumer, in my view, is still strong. record low unemployment, record high stock market, strong housing market. what consumers are spending on has changed a lot. they are spending less on things and more on experiences. travel is doing better, the cruise industry has had back-to-back record quarters. people are going to events, entertainment, concerts. --x: the nordstrom model somebody has your close for you, you get a mani, pedi, you think that is the soluti

just one small part of the data puzzle, isn't it, for you to get a belief on the dow jones industrial average. kathy will have a lot of noise ,ut of the two tragic storms the trends are generally pretty good across the board. we look at pockets of weakness as well as pockets of strength. insee growing debt burdens some corporations, but nothing that makes us see any romantic imbalances that makes us think economic recovery is at risk in the near term. can we read into bonds, they have been so depressed it could be looking at something ugly out there? kathy: i don't know if ugly in perhaps term, but slower than some expected years ago. we have been trending in this 2 time, and that better in the past, but is good enough what were seeing. this is where the fundamental research comes in, what is each company doing to adapt to the changing realities of its own sector, because there is change of foot -- change afoot. tom: thank you so much. coming up, our conversation with hugh hendry, looking forward to that. david gura and i speak to him as well. 's great shorts, throws in the towel on investments. com