♪ city, for new york our viewers worldwide i'm lisa , abramowicz in for jonathan ferro. 30 minutes committedo fixed income. this is "bloomberg real yield." ♪ lisa: coming up, ray dalio. rising yields could spark the biggest -- in years. investors are earning the least extra yields on u.s. corporate bonds over benchmarks since 2007. are there any gains left? ahead of janet yellen's last fed her legacy discussed and the incoming fed chair jay powell. we start with the big issue, dalio's warning resonating from davos to new york. take a listen. ray: a 1% rise in bond yields will produce the largest bear market we have seen since the 1980-1981 period. >> has that bear market started? are we in it? >> i think we are in it. >> there will be a time the bank of japan and ecb begin tightening. that will be the time when bond yields increase. i don't see that now, unless i'm wrong on inflation. i don't believe the federal reserve will get the 10 year to 3.60% >> i don't think the bear market is starting. since 1990 we had many, many predictions of a bear market in bonds, but it has not happened. lisa:

from new york, this is "bloomberg real yield." ♪ ♪ lisa: i am lisa abramowicz. "bloomberg real yield." i want to head to the auction block. we start with a junk bond offering. $2.5 billion is so of bonds to refinance debt. they sold the notes in two parts following collapse of talks with sprint in november. in europe, spain drew record orders for his biggest syndicate offering since 2014. borders for the tonight in your notes total $52 billion compared with more than $12 billion on the offer. emerging-market bond sales at a record pace. a scramble to lock in low yields. argentina to china has raised $65 billion. still with me is subadra rajappa , rachel golder, and luke hickmore from aberdeen standard investment. you can hear that my voice is totally going away. back and thank you for helping me out. thebig question to me is biggest consensus trade of the moment is emerging-market. everybody is piling in. my question is, where is the opportunity left? i want to start with you. do you see opportunity, and if so where do you see it? luke: i have been sitting in th

lisa: from new york city for our viewers worldwide, i'm lisa abramowicz in for jonathan pharaoh with ommitted to fixed income. this is "bloomberg real yield." ♪ lisa: coming up, billionaire hedge fund ray dalio. rising yields could spark the biggest crisis of fixed income investors in almost 40 years. plus, investors are earning the least extra yields on u.s. corporate bonds over benchmarks since 2007. are there any gains left? and ahead of janet yellen's last fed meeting, we discussed her legacy and pass forward to the incoming fedha

. ♪ ♪ lisa: from new york city for our viewers worldwide, i'm lisa abramowicz in for jonathan ferro. tes committed to fixed income. this is "bloomberg real yield." ♪ lisa: coming up, billionaire hedge fund ray dalio. rising yields could spark the biggest -- in years. investors are earning the least extra yields on u.s. corporate bonds over benchmarks since 2007. are there any gains left? and ahead of janet yellen's last

i am david westin along with lisa abramowicz. lisa: let's get you caught up on the action across the board. s&p futures up a little bit. ftse sort of flat. the euro is weakening slightly before the key mario draghi speech. high, thehing another highest level since december 4, 2014. david: we have time for a very short daybreak first aid. we want to talk about the ecb, the dollar, and president trump. the ecb. lisa: the ecb is facing an economy that is recovering and not just recovering, but is definitely gaining steam in the eurozone. the question is, will they announced some kind of ending of their bond purchase program and will they try to talk down that euro? the euro has been strengthening against the dollar. david: it is not just the economy gathering steam, it is the euro. lisa: the fear is that it will eat into the corporate profits. david: it also suppressed inflation that mario draghi said he wanted so badly. steve mnuchin says he has been perfectly consistent, there is no problem with the u.s. dollar even though it has t

daybreak,""bloomberg i am david westin along with lisa abramowicz. netflix has a bigger capital than amazon. david: did you watch "the crown?" lisa: i did not, but you are helping boost their market capital. , leadings solidly up european indexes. s&p futures down just slightly and nasdaq is up heading into the open. some news about specific companies, j&j up about 2%. they are off the earlier highs, up less than 1% -- 1% after reporting better earnings-per-share. verizon was up about 2%, despite an earnings-per-share miss. tesla was up about 1%. gains, 1.4g on those percent, with signs that elon musk was going to extend his tenure at the helm of this company. he will not get a salary or bonus, just the dream. david: time now for the morning brief. at 10:00, the senate banking hearings on fed nominee marvin goodfriend. at 1:00, president trump signs into law the new duties, and after the bell, continental and united report their earnings. kailey leinz is here with first word news. : the battle over the u.s. government shutdown has ended but the fight

. ♪ lisa: from new york city for our viewers worldwide, i'm lisa abramowicz in for jonathan ferro. s committed to fixed income. this is "bloomberg real yield." ♪ lisa: coming up, billionaire hedge fund ray dalio. rising yields could spark the biggest -- in years. investors are earning the least extra yields on u.s. corporate bonds over benchmarks since 2007. are there any gains left? and ahead of janet yellen's last fed meeting, we discussed her legacy and the incoming fed chair jay powell.

lisa: from new york city for our viewers worldwide, i'm lisa abramowicz in for jonathan ferro with 30ed to fixed income. this is "bloomberg real yield." ♪ lisa: coming up, billionaire hedge fund manager ray dalio. of fixedst crisis income investors in years. plus, investors are earning the least extra yields on u.s. corporate bonds over benchmarks since 2007. are there any gains left? and ahead of janet yellen's last fed meeting, we discussed her legacy and the incoming fed chair jay powell.

david: there you have it, mike mckee and lisa abramowicz.hat real benefits companies can expect this year as a result of what the trump administration did last year. is the president delivering on his pro-business agenda? that's next. this is bloomberg. ♪ trump came tont office promising a progrowth and pro-business administration. with passage of a historic tax overhaul officials are saying they are delivering on those promises particularly when put together with a pullback on regulation. what will it mean for equities and 2018? the s&p 500 is the red line across. the blue line is the financials. white is the russell 2000. we welcome dan clifton coming to us today from washington. in a nutshell are they delivering on this progrowth pro-business promise? >> i would say yes. this is a very historic tax reform that went into place. there's been a lot of deregulation policies that went into place and more coming in 2018. what does this mean for the u.s. andomy, the stock market the individual. last year we had very good equity market growth. th

lisa abramowicz joins us. where are we now? what the conversation today?tic. when you look at the developed world, there is a significant acceleration in growth across the board. half decent as well. growth is approaching 1.5%. the u.s. is accelerated a little bit of late. the equity markets are reflecting that. in the developing markets, chinese growth is decelerating a sense bit, you do see a that there is less underlying risk in terms of growth falling off a cliff. even in the developing world, you see some improvement. lisa: last year, rates were never going to rise. central banks would try to raise rates but not get beyond 1%. what is the new neutral? what is the world of investing? you had all of these really wealthy people flying in private jets talk that income inequality. the question is how high could rates go? how disruptive could that be? could we undermine the asset values we see right now because rates are going up. tom: i think it's the removal in the prospect of the removal of negative interest rates. that has caused damage to the bank earn

is is cory johnson and lisa abramowicz. let's take a look at what happened to 10 year. a huge move as i'm leaving yesterday and then we kind of moderate and then you wind up having china say they might stop treasury purchases. 11 basis points in two days. is a pretty big move and there has been a shift in sentiment from sort of jittery to very jittery on the news that china might be considering pulling back its purchases of u.s. treasuries. china is the biggest foreign holder of u.s. treasuries with about $1.2 trillion of the securities in their coffers. there is a question if they stop reinvesting the proceeds and pulled back at all what does this do? even a marginal withdrawal of demands&p right now has an effet on treasury yields. that central banks globally are withdrawing stimulus and stopping bond purchasing programs. this is definitely a big threat. have 10 year and 30 year treasury auction both today and tomorrow. alix: actually really excited about that. at this rate things start to change. after a tax bill is passed with the notion of gdp -- i read this great

joining us now are carey price and lisa abramowicz. we will start with the global growth rally, but to me the highlight was hungry, selling , sellingebt -- hungary 10-year debt under 2%. it shows the risk on feel that we are seeing. crystallizes the whole story. i love that you brought it up, but i was interested in the fact that manufacturing was the best and the fastest growth that we saw in the u.s. since 2004 last year. this was interesting because it is pressuring capacity. it reaches a point where factories cannot produce enough ands based on the demand keep prices where they are. they either have to increase -- they havelation to boost production, which means hiring more people and that means the shortage of hired -- skilled workers that they want to pay, so does this mean we will lead to wage growth? this is the key question for me coming into 2018. carey: i think lisa may overstate the capacity issue a little. capacity data in the u.s. is still relatively low by the swathess of long of history. exactot member what the -- lisa:

alix: joining us is bloomberg intelligence senior analyst for banks and lisa abramowicz of bloombergalk us through the transition of big banks diversifying into china. how they are doing it and who is doing it best. alison: i think ubs, they are kind of the leader in this effort. they are the leader in asia and like to call themselves truly the only global wealth leader and i think the data supports they are a leader in that region. citigroup is also big in asia. i think ubs has been the most vocal about china. we are seeing announcements they are getting more aggressive, they are ahead of targets and we heard about reforms late last year. i think there was some excitement, but for the most part, those of us who have been around for a while have said we have seen this movie before and we will wait until we get a little too excited to see -- to see some meat to the reforms. lisa: we don't want to get too excited, we have seen this movie before. there's a reason why china is -- theyup the $40,000 are trying to crack down and they are concerned about credit markets overheating. you have

i am david westin along with lisa abramowicz. aught up on the action across the board. s&p futures up a little bit. ftse sort of flat. the euro is weakening slightly before the key mario draghi speech. high, thehing another highest level since december 4, 2014. david: we have time for a very short daybreak first

. ♪ ♪ abramowicz denver jonathan ferro. 30 minutes committed to fixed income. this is "bloomberg real yield." ♪ lisa dele alli -- ray dalio. investors are earning the least extra yields on u.s. corporate bonds since 2007. are there any gains left? janet yellen's last meeting. we talk about her legacy.