pimco, a global leader in active fixed income. >>> welcome back i'm rahel solomon. mandates are dropped in california, oregon and washington democratic governors making the announcement saying that the move is possible due to falling covid cases and hospitalizations new rules go into effect march 12th. >>> turkey is restricting russian warships in the black sea with a treaty to do so after receiving a request from ukraine. he says he will not give up on the relations with russia or ukraine. >>> russia is banned from fifa >>> and russia's central banks says that the moscow stock exchange will be halted for a second day and no stock or derivatives trading tomorrow. >> thank you >>> a quick update on the markets off session lows dow 589. worst performing down 1.6% nasdaq which was green earlier is down 1% look at the defense names. out performance. the stocks are higher. lockheed up almost 5%. germany will increase the defense spending and will show you renewable energy group chevron has the stock up 40% chevron up 1% and the acquisition impacting the other alternative

if you look at expected profit, it is positive for pimco.looking at higher rates as a positive labor for us and clearly there could be price and volatility at the beginning. definitely positive for us. manus: people out there are quaking in their boots worried about a volcker style move from the federal reserve. do we need a volcker style move? 50 basis points? $50 billion of treasuries the day after? do we need that to communication. also to see clearly -- i would say a clear message that rates are moving up and an indication rates might go up faster if inflation does not subside. there is this fear that inflation could spiral, so i think clear communication is going to help definitely to keep the situation under control. >> you do not fear a bond market crash, implosion? where do you think 10-year yields will climb to? >> i would say they could be 50 basis points higher than where they are now. may be close would be 100 basis points higher compared to what they are now. they would have an impact on the short-term performance. we do not see

of 2020 pimco was on board in the portfolio. we started with a deep dive in pimco given the latest addition to our portfolio and got off on all existing strategies and we looked at other promising strategies. resourced ideas for other strategies from a list and in talking to other consultants and other allocations and in 2021 we conducted about 100 meetings. we created the short list with about 18 strategies and asking for more information from those 18 strategies and towards the end of 2021 we narrowed our openings and started digging deeper on fidelity tactical bonds. diligence was done virtually with the exception of an onsite visit by by vicky in 2019. we do expect additional recommendations to come out of this search. however, at the firm was founded in 1976 and the ceo of the firm and the johnson family effectively controls it. outside of fixed income fidelity have a competitive advantage. their equity team collaborates with their credit team to perform holistic views of the condition and benefit from the broader infrastru

pimco's north american economist.s is bloomberg. ♪ mark: i'm mark crumpton with the first word news. president biden is pushing for more government spending on energy and climate measures. his economic agenda includes $300 billion in tax credits for wind and solar power. in japan covid restrictions are being extended for another three weeks. it includes shorter working hours for government subsidies. japan has resisted the use of lockdowns. most japanese still don't have booster shots. boris johnson plans to end covid isolation rules this month. the prime minister says he expects to be able to lift them a month early. if you want to watch the super bowl in person, it's going to tossed you. that's according to ticket reseller take pic. -- it's going to cost you. that's a quinn to ticket reseller tickpick. -- according to ticket reseller tickpick. global news 24 hours a day on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in over 120 countries. i'm mark crumpton. this is bloomberg. ♪

jonathan: always wonderful to catch up to you. 20% of pimco.ou would've noticed the headline on the sports pages, but i think they are relevant. the reason i think this is important is because the accusation has been leveled at sporting organizations for the last past how many decades that they have allowed autocratic regimes to legitimize themselves by allowing them to host events like these, the olympics, formula one, that needs to be discarded if it will take place in russia and these finals as well. tom: i think it is important particularly with your serious knowledge of those. london is a conduit and i make jokes except it is not funny. what does chelsea do and what does mr. abramowitz do? jonathan: there have been calls to sanction him. what -- you can see that there are some people in the u.k. asking for that is saying test for that to happen. tom: i wonder where we finally click and. jonathan: there are more to come. tom: to mr. johnson's clarity, he has said this is it and let us go and others saying that they are very dependent. jonat

he is vp / senior portfolio manager emerging markets, pimco. thank you for coming out.a million questions about a possible invasion of ukraine. i do not know how the market would react to it. if tomorrow there is an invasion, what do markets do? yacov: sure, thank you for having me in studio. we are all hoping for peace and resolution. the last thing the world needs right now is another war. with regards to the market's reaction, what we have witnessed is that since the events of 2014 that both countries, ukraine and russia, have built up significant buffers. when we look at their reserves, for ukraine it is $30 billion, 15% of their gdp. for russia, $650 billion, 30% of their gdp. the buffers can withstand significant shock some volatility. i think the economies will suffer less. another important trend to observe is how much russia has insulated its economy since 2014-2015. there has been a focus inwards and a shift from trade with the west to trade with the east. tom: the ruble is repriced with a little bit of strength. what are you looking at in terms of the pricing

pimco, a global leader in active fixed income. >>> breaking news here live on your screen, what you aree border of ukraine and belarus where talks between russian and ukrainian officials have begun you see movement there this is all taking place on the belarusian border. we will update you with major developments as we see them. talks now to try to impose some kind of cease-fire or end to the violence are now taking shape. we will have more details as we get them. >>> futures suggesting more selling on tap for today we are well off the session lows markets have largely managed to push past the headlines from the ukraine conflict s&p 500 was up .50%. let's bring in victoria fernandez. i guess the big question i have is a massive round of buying from the crisis lows that we saw on day one of the invasion of ukraine on thursday. what was behind it and was it justified? >> dom, obviously, when people are sitting there and cash on the sidelines, they know there will be volatility in the market we have talked about it all year we have been telling our clients we need to use the days where you

-- and joachim fels of pimco. remember being woken up. wasn't it my christmas vacation? lisa: first thing in the morning. merry christmas. jonathan: 15 basis point move. i missed the flight, tom. [laughter] the things i will do for this program, the links i will go. lisa: touching. jonathan: just to have a phone conversation about the bank of england. let's get you some single names and say good morning to romaine. romaine: we are heading into the final leg of the earnings season. the biggest of the day is walmart. the guidance is very bullish. the company guiding at about 4% topline revenue growth. they are also saying that a lot of supply chain issues and the costs associated with that, the labor costs associated with that, that is really being made up for in the increase in sales, so little bit of a read into how these retailers that benefited during the pandemic, to see how much strength, how much upside is going to be contained post-pandemic. walmart shares up almost 3% in the premarket. keep an eye out compe

pimco, a global leader in active fixed income.ordless headphones, you can watch movies through your phone? and y'all got electric cars? yeah. the future is crunk! (laughs) anything else you wanna know? is the hype too much? am i ready? i can't tell you everything. but if you want to make history, you gotta call your own shots. we going to the league! >>> rising commodity prices, inflation, and geopolitical uncertainty are causing tough terrain for some of the world's biggest machinery makers and manufacturers. you may not know cnh the company but you know their brands. international harvester tractors, case construction equipment, and a new ceo, a man you possibly know, scott wine, formerly with polaris. we began asking him how the risk of a russian inflation could affect a globalized machinery company like his. >> one of the things i talked about with our -- the investment community here today for capital markets day was geopolitical risk little did i know when i put that on the slide we would have that develop right before us we

pimco, a global leader in active fixed income.ily... for the wireless savings. then, my sister told me about visible. (sister) get unlimited data for as low as $25 a month. no family needed. (vo) visible. try us for free before you switch. new projects means new project managers. you need to hire. i need indeed. indeed you do. when you sponsor a job, you immediately get your shortlist of quality candidates, whose resumes on indeed match your job criteria. visit indeed.com/hire and get started today. >>> the chip giant nvidia hit by a cyberattack, the telegraph saying the attack has taken parts of nvidia's business off line for the past two days this comes as nbc reports president biden has been presented with offensive cyber options against russia cyber stocks helping to lift the nasdaq higher on the week with names like palo alto, cloud fair, crowdstrike, rising double digits over the last two sessions our next guest says cy cyber warfare is a real possibility as russia could respond to sanctions on the s.w.i.f.t. banking system

jonathan: i spoke to mark hayes of pimco. he said we are holding more cash because we think this is it. we will see more of this, more volatility, more dislocations. we want to be in a position to take advantage of them. tom: he saw my triple leveraged all-cash fund. jonathan: and he thought, great idea over at pimco. [laughter] you're still very sensitive today. what is wrong? tom: i'm rattled by the jobs report. we are 20 minutes away. it is going to be absolutely fascinating. jonathan: i talk to you more than i talked to mark. how do i even know if mark is awake right now? don't get jealous. it's all right. no idea what is going on. wti, $92. brent pushing $93 earlier. this market is wild. futures up 0.1%. brent, $92.77. not much happening on treasuries. euro stronger as we start to think about rate hikes at the ecb. the year so far anything but boring. from new york city, this is bloomberg. ♪ ritika: with the first word news, i'm ritika gupta. vladimir putin and xi jinping have closed ranks against the u.s. and its allies

pimco, a global leader in active fixed income.ory i've observed markets shaped by the intentional and unforeseeable. for investors who can navigate this landscape, leveraging gold, a strategic and sustainable asset... the path is gilded with the potential for rich returns. alright, so...cordless headphones, you can watch movies through your phone? and y'all got electric cars? yeah. the future is crunk! (laughs) anything else you wanna know? is the hype too much? am i ready? i can't tell you everything. but if you want to make history, you gotta call your own shots. we going to the league! >>> let's get another check on block. still soaring, up 27%. the call is underway guidance for the cash app has been driving these gains the guidance was better than expected we are seeing that stock pop in the afterhours session >>> palantir, a big, bright spot rallying more than 13% the company has been on a spac buying binge palantir pumped more than $400 billion into two dozen spacs in 2021, but our next guest says the strategy could come bac

pimco, a global leader in active fixed income.r my business, but all my employees need something different. oh, we can help with that. okay, imagine this. your mover, rob, he's on the scene and needs a plan with a mobile hotspot. we cut to downtown, your sales rep lisa has to send some files, like asap! so basically i can pick the right plan for each employee. yeah i should've just led with that. with at&t business. you can pick the best plan for each employee and get the best deals on every smart phone. ♪ >>> the past few months have been absolutely brutal for high-flying growth stocks, but some of these companies are genuinely profitable get beatin down hard enough, well, they bounce. consider palo alto networks, the fantastic cyber security company with a stock that's pulled back more than 100 points that's crazy after the close tonight, palo alto reported yet another blowout quarter. terrific top and bottom line beat, excellent guidance for the quarter. management raised the forecast which is why the stock is exploding in afte

pimco, a global leader in active fixed income. dad, we got this. we got this. we got this.t this. we got this. yay! we got this. we got this! life is for living. we got this! let's partner for all of it. edward jones ♪ ♪ wow, we're crunching tons of polygons here! what's going on? where's regina? hi, i'm ladonna. i invest in invesco qqq, a fund that gives me access to the nasdaq-100 innovations, like real time cgi. okay... yeah... oh. don't worry i got it! become an agent of innovation with invesco qqq yeah... oh. don't worry i got it! every big idea every game changer every "how'd they do that?" starts here the blank page artists and writers know the tyranny of it well but so do developers, data scientists, ctos the new creators to them, we say let's create something that changes everything ♪ ♪ ♪ ibm let's create >>> s&p managing to trim its losses to les than .5% after briefly dipping below this year's closing low of 4309, currently 4328 want to check on individual movers as well credit suisse in hot water after a data leak accused the bank of servicing accounts of frauds

i've heard from rick rieder of blackrock, marc keast all of pimco, -- the one thing they have in common are carrying more cash into 2022. tom: that was absently brilliant by janet henry. ira jersey has written about this at bloomberg. the linkage in dynamics between balance sheet dynamics and higher rate dynamics is complete original mystery. jonathan: the balance sheet reduction piece, no one can agree on. how big it will be and what it will achieve. lisa: the fact they are still expanding their balance sheets and we are talking about how much we are all trying to get out ahead of ourselves. i go to morgan stanley's andrew sheets saying $2 trillion combined for the four major market banks. they will reduce their balance sheets by that much by the middle of 2023. the implications of that are hard to know, especially if you have this backdrop of a lot of liquidity and growth. jonathan: and 70 people think they cannot achieve it. tom: this is the heart of the matter. john and lisa, what you agree the way to solve that is to go longer, x axis out. lisa: shirt. the problem is the path matte

to dicta through a complicated agenda we welcome libby cantrill , pimco head of public policy. your notes. the need for compromise. let's start with the budget. they have to get something going to keep the government

who talked about his cash position, rick rieder of blackrock talked about a bigger cash position, pimcout a big cash position. once you make the decision to go to cash, you've got to make a second decision, when to come back in. when you start to think about dislocations off the back of qt, about a bigger cash position for the rest of this year, help me understand the process you go through to deploy that cash, redeployed that cash into this market? mark: well, i think there are tactical deployments and more strategic deployments. i think those very astute guys you just mentioned have a lot of experience at doing that. and so, there are going to be pockets, like we saw at the end of january, where the window opens for a tactical trade. it may be buying get the most liquid vehicle in your asset classes choice, whether using cdx indices for credit or futures or something else. i think strategically, that cash buffer, you wait to see some serious dislocation, so far greater stress than we have seen so far this year. frankly, you don't do it when there is just talk of higher rates or talk o

pimco's former chief economist says why he thinks the fed put exists more "power lunch" straight aheadplan. (ted) it seemed like the responsible thing to do. (jane) and then, just yesterday, my sister told me about visible. (sister) yeah, get unlimited data for as low as $25 a month. no family needed. (vo) family plan savings without the family. visible. switch and get two months of wireless for $22. plus, up to $100 on us. >>> this bull market rallied on investors count on the fed but with inflation rising will the fed have to raise rates anyway even if the stock markets decline? steve lies mman is looking at t fed put. >> yeah. i'm going to talk about something. many in the market think the fed will not be stepping in to save it because it wants them to cool off to inflation down and an important respect the fed put is not dead yet the fed plans to take stimulus away more gingerly call it a put or not but there it is. rate hikes that ended in '95 at the same pace of 17 basis points and then true again in 2000, 2004, 2006 where rate cuts and hikes at the same cycle and then the great

jonathan: coming up, erin browne of pimco, looking forward to that conversation. 10% correction on the s&p. is it a correction you want to buy? from new york, this is bloomberg. ritika: keeping you up-to-date with news from around the world. vladimir putin says he is ready to pursue diplomatic solutions to the ukraine crisis, but only of russia's interests and security are guaranteed. vladimir putin spoke after the u.s. and its allies agreed on a first set of economic sanctions against moscow for its action's in ukraine. in canada banks froze the six point $1 million in just over 200 accounts under emergency powers meant to end the trucker protest. prime minister justin trudeau evoked the powers to cut off funding to protest leaders. the u.s. transportation department is awarding $450 million in grants to ease port traffic jams. major ports such as los angeles and savannah, georgia are eligible. the money will be allocated to smaller ports. congestion and inefficiencies at the larger port have strained supply chains during the pandemic. an auto parts supplier is g

here with some of the key events to watch is libby from pimco welcome. we've rattled off a bunch of things from another shutdown to the supreme court. what is the first thing you're going to be watching for this month? >> good afternoon, kelly i think this is really, february's going to be very much about pivoting to getting points on the board for democrats after spending sort of a month in disarray in fighting about the filibuster and voting rights, they really are going to try to focus on actually getting legislation passed and signed into law first up is going to be the house companion version of something called the united states innovation and competition act. basically, a lot of funding for semiconductors, for supply chains and really couched in the context of a competition bill against china. nothing like china and russia bringing the republicans and democrats together so we expect that bill to pass the house and be signed into law as early as march or april but again, the focus really will be trying to get some points on the board and trying to

pimco, a global leader in active fixed income. >>> time now for a cnbc news update with shepard smithhere's what's happening a russian convoy reported to be at least 17 miles long making its way south toward the ukrainian capital of kyiv. in the mix, hundreds of armored vehicles and tanks along with artility and other support vehicles a senior administration official tells nbc news russia's goal still appears to be to encircle kyiv in the coming days. there are new and widespread reports of bombings and missile strikes killing civilians in ukraine. the top prosecutor at the international criminal court opening a probe into possible russian war crimes or crimes against humanity and russian soccer teams now banned from international competition. governing bodies fifa and uefa making the decision today. the effect, russia will not be able to qualify for this year's world cup. the move comes as the international olympic committee is urging sports federations around the world to ban russian at leads and officials from all international competitions >> tonight, we'll take you live to the bu

joining us now is stephen chang, pimco portfolio manager for asia.much focus has been on the inflation outlook and really what happens to the treasury curve and if we are looking at a potential misstep by the biggest central bank in the world. how do these geopolitical implications way into back now? -- weigh into that now? stephen: inflation has been much more of a domestic concern so i think the russia-ukraine situation bears watching to see if there's any scope for escalation or de-escalation from here onward. the market will be, you know, assessing that, and what kind of impact to energy prices and on broader economic impact, particularly for europe. from asia, where we stand, it is more of a beta move, watching for reaction of credit markets around the world and also in the equity market. >> do you see much contagion when it comes to em debt? stephen: the russia portion probably already has reacted to some extent overnight. i think asia, in particular on the credit side, we are experiencing, particularly for the high-yield segment, more of the i

immediately get your shortlist of quality candidates, >> announcer: the bond report brute to you by pimco. visi the pursuit is on. the pursuit of outperformance at pgim. with deep expertise to outthink across multiple asset classes, actively managing investments in the world's public and private markets. outscale, with the resources to serve 1,500 clients in 52 countries. and outlast, with long-term conviction that looks beyond today's volatility. join the pursuit of outperformance at pgim. the investment management business of prudential. (doorbell rings) (family chattering) - [announcer] meat-itation, a sense of calm that comes from being transported to your umami place. on time, lowest price, or we'll make it right. grubhub. ♪ chicka-chicka >>> 30 minutes left of trading every sector higher and s&p 500 except for consumer discretionaries weighed down by ecommerce names. check on individual market movers shares of capri holding higher following earnings in revenue beat luxury retailer and raising revenue forecast seeing a boom in handbag and apparel sales in the u.s. and europe that sto

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i was struck by something that pimco's libby cantrell wrote earlier in the week. to be impossible some argue still is, but we have been moving directionally towards that what implications would that have for the market? >> i think the market today and the rally that we saw, particularly into the close this afternoon, was largely in response to the fact that the measures announced by biden and the administration and the u.s. allies were not as draconian as the market feared. i think that's why you saw the market rally a little bit into the close. i think from here, you know, i really think that the market is going to be focused on the impact to the u.s. and the u.s. consumer and ultimately the u.s. economy. and as long as we don't see sort of the worst off measures announced, i think that the market is going to remain relatively contained in terms of the response to u.s. equities. >> jason, were you surprised by the rebound that we saw midday today? i know you said in the producers notes the geopolitical tensions throughout history have been met with a short blip i