joining me from a table is michael purvis. mr.s, if you are throwing rates up to 40% in argentina what do you need to do to get , this done? 40%. >> argentina is a pretty specific case in this whole em discussion, and there is a lot a specific. it brings back the days when the cost of equity was 3% the cost of debt. but look, i think, you know, there has been a strong dollar higher rate story in the u.s. i think the argentina story is very specific to argentina. jonathan: there are some idiosyncratic reasons as to why argentina is being slapped around. in turkey as well. where there is some kind of string that aligns these two things, central-bank credibility. there almost is none among investors about their ability to really contain inflation. you can see that in turkey and in argentina. is that the similarity? >> turkey has got a pretty loose monetary situation, and the fiscal condition that it's really not very constructive for them. i think, you know, both of those things, yeah, you will get a little bit of old-fashioned em ce

still with me is michael purvis and priya and guy lebas. priya, big week for issuance coming up.ow would you define a failed auction? the reason i ask is not because i'm thinking about it. i wasn't until later this week, when the subject was brought up to me. how would you define it and how would you want it in the united states given all the supply? priya: the one good thing with u.s. treasury market, we have the primary dealers. every dealer has to put big in there. the way i would define a failed auction would be -- when the wi market trades at a surprise, the option comes in 5, 7 basis points higher. that would be a big shock to the treasury market. we have not seen any signs so far that these auctions are having any trouble, but that is because the rest of the world is buying our debt very happily. when it worries me longer-term is that if you were going into this trade war world, you have companies say -- country's sake why do we hold our reserves in dollars? ,ny reduction in foreign demand that could essentially move rates higher. jonathan: guy? guy: i think that is a fair

me is michael. purvis, if you are throwing rates up, what do you need to do to get this done?> argentina is a specific case. discussion, there is a lot of specifics. days when the the cost of equity was 3% the cost. there has been a strong dollar story in the u.s., this is specific to argentina. >> there are some idiosyncratic reasons to my argentina is being slapped around. alignss some string that these two things, central-bank credibility. there almost is none for their ability to contain inflation. is that the similarity? >> turkey has a loose monetary situation and a fiscal condition that is not constructive. things, you will have a little old-fashioned em central bank and fiscal credibility issues converging. >> more broadly for e.m., the story of the last year has been not,t local currency, why the dollar will keep getting weaker. this has made people more uncomfortable than they were relative to a month ago. is there reason to be uncomfortable? >> our view is that the dollar is declining more. we see a day versions rate. u.s. data has been ok. the rest of the world has

with me is michael purvis. mr.vis, if you are throwing rates up to 40%, some might argue -- what do you need to do to get this done? >> argentina is a specific case. in this whole em discussion, there is a lot of specifics. it brings back the days when the cost of equity was 3% the cost of debt. there has been a strong dollar higher rate story in the u.s. i think the argentina story is specific to argentina. jonathan: there are some idiosyncratic reasons as to why argentina is being slapped around. there is some string that aligns these two things, central-bank credibility. there almost is none among investors about their ability to contain inflation. is that the similarity? >> turkey has a loose monetary situation and a fiscal condition that is not constructive. both of those things, you will have a little old-fashioned em central bank and fiscal credibility issues converging. jonathan: more broadly for e.m., the story of the last year has been to get local currency, why not, the dollar will keep getting weaker. t