we know that pimco usually rebounds very strongly.y, long-term, there are technical requests for fixed income assets, and if yield goes up, there will be even more requests. from that point of view, we are very positive about the transactions with pimco. quarterly flows are a different story. i also want to highlight that it is not just pimco. we have sk hynix performing nicely. we had 12 billion of them, the highest ever in their history. both pimco and agi are performing very nicely right now, and we think the fundamentals are so that we will be able to weigh any kind of environment and any kind of -- that could come our way in the next quarters. annmarie: thank you for joining us, giulio terzariol, cfo of allianz. today, the week's biggest data point comes in the wake of uscp i. we have been building to that all morning. 8:30 a.m. new york time. next, the european open. an interview with commerzbank's cao. and in a few minutes, anna edwards will bring you through u.k. gdp data. ♪ anna: good morning. welcome to bloomberg markets: eu

we have pimco staying on the growth story with e.m.ts looking interesting on the reopening scene. kathleen: that's a very powerful part of the story. let's look at this rally, a key factor in the inflation debate. how did asian energy stocks perform amidst this oil rally? sophie: we have seen them push higher in commodity exposure when it comes to commodities in asia, brent jumping up to 30% this year. asian energy stocks up about 7%, indicating how the energy sector is weighted more towards oil buyers and refiners instead of producers. i want to highlight how material stocks have been faring in asia compared to energy stocks. they are powering up on the commodities rally, up 14.2% year-to-date. bloomberg intelligence expecting continued leadership for materials due in part to the u.s. infrastructure spillover and robust metals and the commodities super cycle folks are talking about. haidi: coming up next, the budget day cannot come fast enough for the morrison government, looking on voter retention on the strength of the recovery. su-

let's bring in libby cantrell head of public policy at pimco they may be $800 billion apart on the spending side of the deal but where there is no togetherness is on the question of raising taxes to pay for this bill the republicans aren't going to have any of that, are they, libby? >> no. that's absolutely right and that is a nonstarter for republicans. they have been very clear about that from the outset our expectation is if there is a bipartisan deal it will not include tax increases. however important to remember if there's a bipartisan deal it does not procollude democrats are moving and passing another spending bill then funded by tax increases so our expectations is that tax increases will happen it is just a question of which vehicle they will be in. >> that's interesting because what i'm hearing you say, libby, is that you could take away the tax increases out of this bill and come to an agreement simply on the spending. the president says he doesn't want anything less than a trillion the gop is at what 928 billion. that's just $72 billion -- give the guy the trillion you know wha

best to do that, ben emons with medley global advisors, formerly with pimco, known for writing reallyl essays on our federal reserve moment. none of us know the shock of one million jobs. michael feroli at jp morgan says some 7 million all in will happen quickly as well. it comes down to the physics of the word magnitude. give us the magnitude at one million jobs -- that one million jobs symbolizes for chairman powell. ben: good morning, tom. it would be a magnitude because if you do get that kind of number friday, you could start drawing a line with that string of data he keeps talking about, and it would be acknowledgment that progress is being made. the economy is strong, so you could expect that number friday comes out at a high-end. i think for markets, it is the same story. you can start drawing the line, and making the assessment that the economy is really getting back to where we came from pre-pandemic, and that should ultimately lead to normalization of interest rates. jonathan: although people expect that to be wait -- lisa: although people expect that to be way down the lin

you allude to your work at cornell with paul mcauley, who we all know at pimco, ages before.ow do we project out five years given the way that we do infrastructure? daniel: two big things to look at. i wouldn't even go out five years. i would probably go out three to four. if we are able to enact the kind of packages that are on the table on the political side, i think america's future looks terrific. i think we are going to have re-stabilization of inflation at a more normalized level relative to history, and i think we are going to see stabilized growth move from what was previously considered unattainable in this sort of post grandeur level of economics and stabilize somewhere in the 3% to 4% range. the problem is we don't have that stuff on the table yet, and it is likely to be significantly watered down. i do think you will see enough physical activity, given where yields are even globally, not just in the united states. but at the end of the day, there's going to be a lull in between spiking inflation and where we see the economy going out 2, 3, 4 years. jonathan: dan a

i will send things back over to you. >>> coming up when we return, thanks, don, pimco's head of publicome to pay for his investment plan. take a look at earnings. pfizer coming in a bit earlier dow up 20 points p 0 aq up 50 points. s&50off 4.5 points back in a moment did you know prilosec otc can stop frequent heartburn before it begins? prilosec otc uses a unique delayed-release formula that works to turn down acid production, blocking heartburn at the source. with just one pill a day, you get 24-hour heartburn protection. take the prilosec otc two-week challenge. and see the difference for yourself. prilosec otc, 1 pill a day, 24 hours, zero heartburn. jerry is here! j! mate, how are ya!? it's so good to see you. good to see all of you, yeah! why is jerry so... popular? it's been like this ever since we started using workday. what do you mean? it makes it easier to develop great relationships with our suppliers. now everyone, everywhere loves jerry. they sure do. they do. they really do. mmhmm. workday. finance, hr, planning and spend management for a changing world. if you wake up t

also seeing good results from pimco. that brought the highest result since 2017.o reflect on tech stocks. matt has talked about what is going on in taiwan, the market there. will there be any translation into europe? dani: there could be. they will be an interesting session for european tech. do they follow what is going on in taiwan with the big decline, or does it more reflect yesterday's u.s. session when we saw some of the big tech players bounce back? the nasdaq futures index is underperforming to start the day, so we could see european chip stocks look more like that, but either way, i think it is going to be an interesting session for these european chipmakers. anna: absolutely. we will keep an eye on the tech stocks. thanks to dani burger for that rundown. mark, the cpi data is an important measure of inflation in the u.s. i saw some interesting work by your colleague garfield reynolds, talking about the link or lack thereof between inflation and tech stocks in the past. we should keep that in mind when we talk about the link between inflation and tech, wh

i'd like to welcome my guest jerome snyder of pimco, managing director and head of short-term portfoliondertaking these days. remember, the central banks, our fed, making stocks to go, too, but making the fixed income the run from all this cash out there means risk are money markets good where's all the cash going >> a great question and great point to ask spend a moment on cash balances increased significantly. savings rates up to 20% even this month, and we're finding that this incredible amount of cash is effectively create add black hole gravitational pull simply eroded any type of yield within the traditional money market landscape. things like t bills trading at 0% yield overnight repo, 0% yield federal reserve's reverse repo program, $130 billion earning zero this point in time. the cash balances, $4.5 trillion sitting on money markets now are looking to find a healthy balance between zero yields in the money market spaces and effectively potentially being optional and opt optionality given the answer to the market days like this cash seems good going forward basis, actually ways

let's continue this conversation by bringing in mohammad el-erian of allianz and former pimco ceo.s market action i wanted to dwell on one of the triggers, which was of course that inflation prohibit this morning some people are saying we expected it to be higher than normal what's your take was this actually a big surprise, the data that we saw this morning >> it was surprise it was much higher unanimous what people expected even fed officials acknowledged it was much higher than what they expected. but the critical thing here is that this is only one month. and one must be careful about extrapolating. i think there is a different message going on it's the concern of higher inflation and a fed that's absolutely stuck on the notion it is will be transitory and is not willing to be open minded about it what that does, that combination threatens the robustness of the liquidity paradigm there is a reason why -- it is not just stocks that are down today. it is stocks it is downtown, it is gold it is bonds. it's across the board. this is a liquidity phenomenon and just like ample and pr