and lisa abramowicz from bloomberg radio. a bond expert is here to translate.re two items i want to talk about in this section. i want to get to the canadian and the apple thing and the loonies in a minute, but that low ratio at auction. that is greek to a lot of our viewers. what does that low ratio mean? nobody wanted the paper? lisa: there is a lot of question right now about what the real rate should be. just as we have been hearing from david and andrew given the fact that what we are seeing from manufacturing right now, it seems like we should be getting more inflation. people are getting a little jittery. tom: you guys live and die by this thing. david riley is doing strategy. i'm doing the tv radio thing. lisa is in the trenches on bond coverage. you live auctions at schroders. what is it like on the schroders floor when you have an auction? andrew: we are trying to take a longer-term perspective. tom: sue you are out three days instead of the auction? andrew: i think you have got to take with a pinch of salt a lot of the data in august. even the payrol

lisa abramowicz, andrew chorlton, thank you for joining us. much more to come on mifid 2. ou for joining us. , we never see each other. people think we do. we sort of like go down the hall. it is sad. that does it for us. we will see you next jonathan friday. ferro. "bloomberg real yield." ♪ so we need tablets installed... with the menu app ready to roll. in 12 weeks. yeah. ♪ ♪ the world of fast food is being changed by faster networks. ♪ ♪ data, applications, customer experience. ♪ ♪ which is why comcast business delivers consistent network performance and speed across all your locations. fast connections everywhere. that's how you outmaneuver. [seagulls cawing] >> this is my happy place. and it has been for a long, long time. it is the ferry that goes from my parents' house near manly beach to downtown sydney. there is nothing magical about the boat itself. tourists and locals ride this thing every day, but really that is what makes this ferry so special. no commuter ride on the planet offers up more amazing city views. it's routine made spectacular.

lisa abramowicz, you have done this really only on gadfly. ramifications of the rollover and the clarion august moment is a retest of nuclear flatness. it is not a recession discussion. lisa: this is not a recession discussion. but this flies in the face of a lot of optimism we are hearing from a lot of analysts saying the stock market has more to go, we are accelerating, people dismissing the disappointing jobs report this morning, saying it is temporary. we will see better wage growth next year. this flies in the face of that. this contradicts that. this says you are wrong. this creates real tension in the market. tom: i love that. david, are you wrong? david in london, the idea of curve flattening. just away from the real yield, we had a dollar bull market. that worked out. we have had a dollar bear market. have you been humbled in the summer as you go into september? david: we have not been humbled in the summer, because we have been long in terms of a lot of -- in terms of emerging markets across a lot of our strategies. the treasury yiel

lisa: and i am lisa abramowicz. g markets." ♪ lisa: we are live and bloomberg world headquarters in new york over the next hour. here are the top stories we are covering on the bloomberg and around the world. stocks rising as we head to the close five weeks after a jobs report. the economy added fewer employees than expected in august, and the jobless rate rose. while most money managers are fees paid bysh investors, the good ones get to charge a little extra. how an income fund is raising costs. and we are on the ground in houston as recovery efforts post harvey begin. the business and civic leaders heading up the efforts. it will be a long road ahead. we begin with headlines with "first word" news with mark crumpton. mark: president trump signed a proclamation establishing sunday as a day of prayer for those dealing with the aftermath of hurricane harvey. the president commended the families and rescue workers in texas and louisiana. he says everyone involved has the same goal, and that is to help people facing dev

lisa: i'm lisa abramowicz. welcome to "bloomberg markets."and bloomberg world headquarters in new york. here are the top stories we are covering on the bloomberg, and around the world. , saying we love dreamers, we love everybody. we will have more on pressure from republicans and business leaders not to scrap an obama era immigrant program. and, i jobs report. s gary cohnouse' says wages will rise. one of the most important petrochemicals on the planet is is suddenlys short in shorts of that is suddenly in short supply. how harvey manufactured -- how

for a preview of what to expect, we have steve rattner and lisa abramowicz.e you have an advanced text. somebody in our morning meeting said this may be the most consequential presidential address for investors in history, yes or no? steve: in general, markets have become fairly injured to the trump coming and goings. markets simply do not get rattled anymore by what he says on his tweets. the markets seem to take it in stride. could he say something that moves the market one way or the other? it is possible. i would probably say in the current frame of mind, unlikely. david: when he was first elected, there was anxiety with how he would have individual trade disputes but disrupt the entire post world war ii structure. to what extent could he give signals, affirming what has happened since bretton woods, for example, or on the other hand, going his own way? the focus on trade is with china right now because of the north korea connection. mcmasters was pressed hard on this idea, would you seriously cut off trade with china? he didn't really answer the question

. >> lisa abramowicz and matt. >> that is why i am skeptical this will be a simplified tax code. >> youkeptical. i'm shocked. -- l ahead, just moments away. we will bring you the comments in that presentation. how exciting it we will bring you that life. picking thisiastic up. this is bloomberg. ♪ >> we are waiting president trump in indianapolis. --ant to bring in court kevin cirilli and bloomberg pass reporter laura davidson. the president has been making comments to reporters throughout on day speaking specifically the negotiating point, and the starting point. start about the context there. >> the president said it is nonnegotiable. the tax rate he settled for saying of course the 15% was an opening bid. describing this as a middle-class miracle. the white house trying to portray this -- out what thisint is an corporations receive arguing this tax plan will hurt the larger corporation. >> is this going to be down to donald trump, whether it is the narrowing and reduction of the number of tax rates here, the potential for congress to add in a higher tax rate if he wants to appeal to

joining us now with more is lisa abramowicz and the sheets shall. e about the market in broad terms. price transparency is not something you associate with this. how big is this market getting? >> the actual cap bond market is $26 billion. the overall reinsurance market is $90 billion. it is plenty transparent, they just don't trade that much. particularly last week there was less trading because it will didn't know how big the storm would be. there are a lot of institutional investors in the market who know they are getting into insurance against a complete blowout catastrophe, and they will be on the hook for those losses, but they will get 7% coupon payments in return, which is pretty good. jonathan: and returns have been great over the last year. you imagine this will become a bigger market? that is one speculation. as these storms get more severe, as the forecast called for more of them, you can only imagine the catastrophe bond market will only grow. think about how much insurers dodged a bullet in the stock market. people were not calling for

since you are over there, i have the privilege of welcoming lisa abramowicz. see her's so great to so excited in her element. it's a lot going on right now, we are looking forward to hearing what she comes up with. right now let's get you up to speed about what we are looking at the head of the open of u.s. markets. s&p futures are up just the touch, the dax up more. the u.s. 10 year yield is down, which is interesting, because , butave risk on in stocks risk off, yields down, price up and the euro continuing its trend of strengthening versus the u.s. dollar ahead of the ecb decision that will be in less than an hour. you can see that it has gained half of 1% against the u.s. dollar, so that is where we are heading into this thursday. david: it will be interesting to see what happens with it. lisa: absolutely. david: time for the morning brief, the ecb decision will come out at 7:45 a.m. eastern time with mario draghi speaking at a news conference. also at 8:30 we get initial jobless claims and several members of the fed are speaking today, starting with the c