matt: that was the cio of pimco talking with jon ferro.t was interesting that he is more reluctant. you are starting to see caution creep across the industry, even private credit, which has been such a hot asset class the last year or two. amber: absolutely. we are waiting for these contrarians to emerge and it is not so definitive yet. matt: for amber kanwar, i'm matt miller. this is bloomberg. ♪ (announcer) enough with the calorie counting, carb cutting, diet fatigue, and stress. just taking one golo release capsule with three balanced meals a day has been clinically proven to repair metabolism, optimize insulin levels, and balance the hormones that make weight loss easy. release works with your body, not against it, so you can put dieting behind you and go live your life. head to golo.com now to join the over 2 million people who have found the right way to lose weight and get healthier with golo. el good, like paying your property taxes. did you know there's ways you can reduce your property taxes? i started ownwell to make reducing pr

manny there, the ceo of pimco. that does it for me and the team. thank you for setting up this wonderful set in newport beach, california. we will see back tomorrow morning. the whole team will be together. getting the band back together in new york this was the countdown to the open. this is bloomberg. ♪ rude. who are you? i'm an investor in a fund that helps advance innovative sports tech like this smart fitness mirror. i'm also mr. leg day...1989! anyone can become an agent of innovation with invesco qqq, a fund that gives you access to nasdaq-100 innovations. i go through a lot of pants. before investing carefully read and consider fund investment objectives, risks, charges, expenses and more in prospectus at invesco.com. 5-hour energy. think of it as 5-second coffee. for when you wake up too late to make it. or you don't have time to wait in line for it. or you're just too busy for a coffee break. 5-hour energy. the 5-second coffee. was also the first time your profits left you speechless. at the counter or on the go, save 20% with the lowest

what do you think and what is your view of pimco?> since last fall, in terms of duration, we really thought of it as election meeting in a range. we would get down to the 330 to three 40's that we are right in the middle of the range. we do not think we have a strong view, either way. we think that market pricing is broadly shared. front end has moved around a lot. look at the yield. it is really eye-popping a lot of that reflected the aggressive rate hike cycle. also some increased volatility that appears to be narrowing. we are focused not so much on making a big bet on direction of rates, but making sure that we have portfolios that are resilient. for the first time in a long time, investors can have resilient portfolios with attractive yields. a lot of good opportunities right now. matt: richard and. the anchor of real yield, you can catch on fridays. thank you for joining us. president biden is talking about biden-nomics. let's bring in laura. it does not really roll off the top -- roll off the tongue like reaganomics. it is a l

rishaad: that is pimcos global economic advisor and former fed vice chair richard clarida that.'s look at what is happening in the u.s. treasury market. just seeing yields -- the five-year is that three-point 90%. 10 year at 3.72%. the end of the quarter is coming up on friday here. $150 million selling in this period. that should support bonds. equities could also get an added lift from treasury indexing. that is all perhaps going to be helped along by a pending holiday as well. so let's have a look at u.s. futures. they are marching to the upside after a skittish day equity ways on wall street. marginally up. we have a cornucopia of economic data later today. we will get the last reading of the gdp for the first quarter. we also have that all-important pce number, personal consumption, which is something that the fed looks at very closely, has. haslinda: apart from pce, gdp data for q1. we had talked about how powell looks at the preferred price matrix, to show perhaps inflation, particularly when it comes to food and fuel, -- they are excluded, by the way -- how they are like

they dropped quickly today we have a special guest, jerome schneider of pimco.et right into it. you saw the data this morning. you saw the market move. give me your impression. what caught my eye is we dipped below 50% on that move >> yeah. we're undulating between the expectations of realtime data and things will stay stickier for longer what we're thinking about is the fact that we're dealing with the long-term challenges of the economy, the forecast of a likely recession, coupled with an evolving economic landscape profitables are in question and systemic liquidity will be in flux >> correct me if i'm wrong, these are topics we've been talking about a lot. really, it's refocused due to the bill bond. t bills. how many t bills will be falling from janet yellen? >> 1.1 trillion. >> where will it come from. >> in reality, we'll see the digestion this week has been pretty well digested >> super well. >> we have issuance of the curve and other things to consider over time the fundamental question is how do we digest these t bills, money market funds are robust, bu

david: the pimco cio speaking exclusively with our colleague jon ferro.eo was also part of the conversation there, really talking about the business, about how they are very to jump at opportunities created by the tough market environment that they just laid out there. ceo of manny roman spoke exclusively to bloomberg tv. >> there are going to be many assets to buy and may be the best way i have to describe it is, banks are going to be tight for capital and when they are tight for capital, they have two ways of solving the problem, they can either raise more capital, or they can sell assets. the most likely scenario is that there will be assets to sell in the area where we have a big footprint. mortgages, commercial real estate, bombs, municipal bonds. dan said earlier today that he was very keen on mortgages. mortgages to sell and we will be there to step in and try to buy them. >> are you looking at buying a franchise to do that? >> it is something we have built over the past 20 years. there is good news and bad news when you have a tough economic cycle

stephen chang is portfolio manager at pimco asia. the decision tomorrow is a done deal?xpected to be cut? are they addressing the issue of the slowdown fulltilt? stephen: there has been a cycling effect. they are falling by as a laugh and mlf over the course of the last week or so. at the loan prime rate we will be watching whether there is a symmetry between the one year and five year rates. the five-year is more typically linked the mortgage in china. if that was come more, 50 basis points, that would be an intention for a little bit more support for the property segment. rishaad: 10 basis points doesn't make that much of a difference would you not agree? stephen: i totally agree. we need a little bit more in order for the confidence to return. when we look at the housing data, -- rishaad: it is all down to housing. stephen: it is a big part of the economy. 20-30% of gdp including the peripheral related industries. that part has been a big drag since reopening. there were a couple of strong months and that april and may were quite weak. at other thing i would highlight

we had an interesting soundbite from pimco.'s take a listen. . >> we think you can get equity like returns and bonds. the long-term equity return over 50 years is 6-7% and we think we can get an equity return. we haven't seen this return potential in bonds and 14 years. high quality bonds can deliver equity returns but have to a third of volatility. this is as exciting as 14 years and we don't think these yields will be here a year from now. katie: if you are looking at the economic fundamentals, they look pretty good and out -- so is it time to i bonds before the yields come down? >> if you take a long-term view, absolutely. bonds are significantly higher than year ago so you probably have the best level of yield support you had in 14 years then rates volatility has been on this declining path. you have better carry, lower volatility and assuming the cycle survives the tightening that has been injected the last couple of quarters, i think spreads should remain well behaved area you have range found spreads, higher area lower v

there's two bond funds, one from double line which is dltnx or pimco which is pmzi, and.ng more than 5%. and with inflation coming down a little bit from the highs of 9, we're a little above 4% now, 5% yield is not a bad spot to be in. jack: yeah. and if you don't like that high mortgage rate, you could take the other side of the trade and get paid the high mortgage rate. >> exactly. [laughter] jack: okay, jack, the old king of beers has been dethroned. >> shocker coming up, modelo is the new -- jack: who? >> everybody kind of figured, bud light was getting hit by that boycott. if i told you that the new top selling brand is mexican, you might be surprised. if i told you it's the hex can and not corona, i mean, who would have thought modelo? the hispanic drinking age population in the u.s. has been growing much faster than the non-hispanic one, and there's a trend toward premiumization. help me say that. premiumization -- jack: i don't think that's a word. >> modelo to is the corporate premium cousin to corona. that's been gradually gaining sales. it passed coroma in the

some of the brightest, best people at pimco and beyond. out with manny roman. if you want some fence speak, we will catch up with richard caretta around 9:30 eastern. we will discuss u.s. policy, the u.s. economy, take your pick. if there is a theme that you want a better understanding of, not just for the next couple of quarters, the next five years when the secular outlook drops, we will bring you some of that. lisa: for the record, i was not feeling sorry for you. and was not giving you any sympathy. just to make sure you understand . tell tom he needs to keep the camera steady and not move too much. jonathan: tk will step out. there were some big issues elsewhere. there are some issues that tk and i need to talk about tomorrow, plus spurs reportedly has a new manager. there is news beyond pimco and all this fascinating stuff. lisa: thank you. cannot wait until your interviews the next hour. with me for the hour is neil dutta of renaissance macro. breaking news about coinbase getting sued by the sec. quick recap. i'm linda is joining us

a modest effort out at pimco. we are going to dovetail into a conversation with alberto gallo.n, i want you to bring him in on the detailed discussion on and off at pimco about the moderates and and the long end. about the term premium, bring that into the sock about price down. jonathan: you have to start with the inflation target of the federal reserve which is 2%. you have to make it cool on what they will tolerate. pimco believes they will tolerate to point something percent. they think they will return to 2%. something maybe even approaching three. there is a cool on the long end that you start to price in this long term premium around the inflation story and end up with a steeper curve. this is the quote from the likes of -- the call from the likes of pimco and i think you are thinking of a similar bank. >> we had 500 basis points of hikes and the job market is solid. or is something makers are not doing and that's the long end of curves. if you think of a large company in u.s., you can find a 6% spread and invest in t-bills. same for homeowners. 98% of homeowners have a

pimco would be one of them.these rules are biased or unclear or at the expense of investors, the week would decide to step out of it -- maybe we would decide to step out of it. tom: that was manny roman. is the market under pricing tail risk? let's bring in citi's head of european equity and strategy. we look at what is happening on the ground ukraine, surprising move from the rba. are we under pricing some of these risks? beata: it depends on which parts of the market you are looking at. if you look at the top of the market, perhaps, but that is because underneath the surface, we have hedged this strong rotation insight to quality, flight to defense. the market was starting to price these types of risks in, but on the top of the index, you do not see it yet. alix: thank you for joining us. it is been waiting too long. because mr. kent european -- you have been pessimistic on european equities. we get a u.s. recession, you want to buy u.s. stocks as a hedge. how does that make sense? beata: it is a bit of a conu

global advisors of pimco say a rate hike next month may be the last in this current cycle. >> the fedmber of last year in its statement has been indicating that at some point, it would want to pause and take stock because monetary policy does operate with a lag. in some ways, they have telegraphed for months that they would want to pause or skip, and that's what we saw yesterday, but i do agree, they did mark their projections in directions which showed much lower decline inflation, much less decline in economic activity, and obviously, they shifted up their view that potentially two more hikes are needed. it was what i would call an awkward but hawkish pause, and of course, the chair at one point said skip, and then corrected himself, but i will call it a skip. >> what do you need to see in this next meeting to have yet another skip? >> they actually don't get a lot of data between now and the meeting. they will get one more employment report, one more cpi report, and i think they did get a question in the audience yesterday along those lines. as the chair indicated, the next meeting

looking at the bond market, it is a little more attuned to what pimco has said.y have not seen returns like this in 14 years. you will see capital uplift plus a year punch. brent oil is down. they are testing the $1 billion a day. stockpiles are rising. demand will drop. it will be 50% of what it was last year. 1% growth in 2023. citibank sang, the cuts that you got from saudi arabia are likely to push back to the 1980's and 1990's. -- back to the 80's and 90's. that is what they would need to see before they could put those back on the market. forecasts are literally wishful thinking of accelerating growth and demand by the end of the year. coinbase is down 12%. it tanked yesterday. they are being sued for alleged violations. we are going to the help on this. let's get back to berlin. my cohost, dani burger is at the conference where a fragile economic backdrop is in focus. dani: good morning. it is all about not big dating the environment. thank you so much for joining. this is very interesting. in this downturn. have they been able to deliver an alpha? have th

manus: reflecting on what pimco said, they have not seen any like -- anything like this in 13 or 14 years. we are may be on that cusp or you can gorge on that. thank you very much. paul, market commentary. the equity market. stock market volatility keeps dropping. what is mispriced? vicks dropped yesterday. let's say -- let's see whether valerie tytel can dissect it. we are on the cusp of the bull market. we have dave -- debated breath several times. what is a nuance here. good morning. >> tech stocks have been hurt this week. they have been quite resilient as to year yields have ratcheted higher. tech stocks have kept outperforming but that has flipped. the nasdaq had its worst session since april yesterday. this was all due to the drag of mega tech stocks. the magnificent seven are seeing a different pricing. that is the biggest drag on the nasdaq index yesterday. this falters nearly 2%. it is not surprising that we see some sort of pullback. what is surprising is what is going on and small-cap stocks. i am looking at the russell 2000 index. it has have some outstanding performance. the

we will talk more with libby cantrell of pimco.dy would ask her something and she would just walk right past them, (laughs). she didn't know they were talking to her. i just could not hear. i was hesitant to get the hearing aids because of my short hair. but nobody even sees them. our nearly invisible hearing aids are just one reason we've been the brand leader for over 75 years. when i finally could hear for the first time, i could hear everything. unlock our best deal of the year during our 75th anniversary sale. call 1-800-miracle today. >> you are looking at a live shot of the principal will. --room. coming up, megan horn, and --h orneman joins us. this is bloomberg. in italy, a leader -- italian leader has died. he ended up being italy's longest-serving postwar prime minister. he served more than nine years in august. still, he was one of the most influential figures in italian politics. he was 86. in ukraine, the government said its troops has liberated at least two villages in the eastern part of the country and it is part o

. >> konstantin veit at pimco, thank you for joining us. >>> bank of japan governor ueda says more times needed traders expected a move despite the strong forecast inflation. it stuck to the policy of allowing the 10-year bond policy at the target rate no change to that control. >> what they are allowing with the yen, it is well above 141.29 i think we can highlight one of the comments that was the negative impact from u.s. rate hikes could come out later as it will hurt exports. maybe they are concerned about the export side of the economy which is why they are willing to tolerate a weak yen. it is always about not so much the level, but the pace. i wonder if it is a sharp fall on the japanese yen is the trigger to tweak the yield curve control. >> we have seen so much investors get burned we have seen positioning ramp up last year with the expectation with the new governor coming in that we would see a change in policy it didn't happen you know better than anyone that investors have been burned so many times thinking we would see a major change in policy it hasn't happened >> 25 years

we heard from pimco, it is seeing the best opportunity and more than decade given where the fed is going from here. they are thinking they are likely to delay rate cuts until next year. that is where the opportunity lies. take a listen. >> we think you can get equity like returns and bonds, the long-term equity return over 50 years is 6-7%. think we can get an equity return. we have not seen this return to dental and bonds in 14 years. you look at the nominal real yields, it can deliver equity returns with half the volatility. this is as exciting we have seen in 14 years. shery: our next guest believes the fed will skip a rate increase in june but then turn more hawkish. wealth enhancement group senior vice president and financial advisor nicole webb is in us in the newark studio. give us your rationale behind why you think the fed will pause right now. what that actually means for the future path of rates. nicole: it is really interesting. what we will mostly see out of the june meeting is a skip. we are not anticipating that the end is here. rationales for the skip is it is prudent. wh

does we have 25 minutes to go we're right back >> announcer: the bond report is brought to you by pimco fixed income sometimes you need a second opinion. [coughs] good to go. yeah, i think i'll get a second opinion. all these walls gotta go! ah ah ah! i'd love a second opinion. no. i'm going to get a second opinion. with innovation refunds, there's no upfront cost to find out. so why not check like i did for my small business? take the first step to see if your small business qualifies for the erc. your shipping manager left to “find themself.” leaving you lost. you need to hire. i need indeed. indeed you do. indeed instant match instantly delivers quality candidates matching your job description. visit indeed.com/hire we planned well for retirement, but i wish we had more cash. you think those two have any idea? that they can sell their life insurance policy for cash? so they're basically sitting on a goldmine? i don't think they have a clue. that's crazy! well, not everyone knows coventry's helped thousands of people sell their policies for cash. even term policies. i can't believe th

about pimco having trouble bringing in funds . a huge active management pressure and equity is less talked about but even worse. i am sorry, it is june 30. from a long only by side where i have missed the october low bull market up 23%, if i am up 7% and out of 23 percent, is my window dressing of october 24 going to be done on july 3 when you are the only two -- when you and i are the only two working on wall street? going, can we get hundred thousand shares of that? right now -- we talked about this at dinner last night. right now, on wall street, globally and particularly in america, nobody is networking this weekend. i do not care what they say. they can be having a lobster roll in the hamptons, baloney. it is a mess out there. have a fun weekend while greifeld and i are working. ♪ i was told my small business wouldn't qualify for an erc tax refund. you should get a second opinion from innovation refunds at no upfront cost. sometimes you need a second opinion. [coughs] good to go. yeah, i think i'll get a second opinion. all t

shery: the pimco cio speaking to will big tv.ext guest says changing dynamics in the markets of -- have created focus for active investment antigen. winning us in the new york studio is head of active equity. always great to have you with us. what does this mean in this market environment? we have seen a bit more rotation, how comfortable are you with the breath right now. >> the breath is pretty narrow. it is very focused on technology, and the seven main stocks in the s&p. that is frustrating. but when i talked to our investment professionals, what excites them is that fundamentals really do seem to matter. companies at the more mid and smaller cap space, if they are doing well, their stock prices are doing well too. if they can produce free cash, if their balance sheets are holding up, if they are competitive in the right direction, their stock prices are moving in the right direction. that is different than what we saw in 2021 and 2022 when most ships were rising together or falling together. and very little distinction on th

these are things pimco in asked for, -- prigozhin asked for, so we will see.a lot of uncertainties out there. how will putin respond? this is a man who has been courted on what happens for the end of the war in ukraine. bruce: at the moment we do not know the answers. we have heard from various diplomats, for instance u.s. secretary of state antony blinken. he did around of the sunday shows in the u.s. and referred to what he said, crack's in russia being exposed by this. french president macron had similar comments. he said that this exposes the fragility in the russian system. the italian foreign minister says it shows that putin is not a myth anymore. potentially there could be room for movement in the war with ukraine. however that seems at the moment to be quite a long ways off as we heard president zelenskyy's advisor say, no sign that the wagner forces have withdrawn. resident zelenskyy did have a call with president biden over the weekend, including about military assistance. rishaad: bruce einhorn with the latest out of the last 26 hours in russia. we

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on the street" will return after a short break >> announcer: the bond report is brought to you by pimcoal leader in active fixed income we planned well for retirement, but i wish we had more cash. you think those two have any idea? that they can sell their life insurance policy for cash? so they're basically sitting on a goldmine? i don't think they have a clue. that's crazy! well, not everyone knows coventry's helped thousands of people sell their policies for cash. even term policies. i can't believe they're just sitting up there! sitting on all this cash. if you own a life insurance policy of $100,000 or more, you can sell all or part of it to coventry. even a term policy. for cash, or a combination of cash and coverage, with no future premiums. someone needs to tell them, that they're sitting on a goldmine, and you have no idea! hey, guys! you're sitting on a goldmine! come on, guys! do you hear that? i don't hear anything anymore. find out if you're sitting on a goldmine. call coventry direct today at the number on your screen, or visit coventrydirect.com. >>> some s&p laggards her

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. >> announcer: the bond report is brought to you by pimco.dvancing flight for future generations. ♪ welcome to a new era of flight. somebody would ask her something and she would just walk right past them, (laughs). she didn't know they were talking to her. i just could not hear. i was hesitant to get the hearing aids because of my short hair. but nobody even sees them. our nearly invisible hearing aids are just one reason we've been the brand leader for over 75 years. when i finally could hear for the first time, i could hear everything. unlock our best deal of the year during our 75th anniversary sale. call 1-800-miracle today. 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. >>> fast casual eatery cava is making its market debut right here at the new york stock exchange $22 a share is where the ipo priced we'll keep an eye on i

on employees working from home and this could affect the future of those employees at the company pimcod morning. well, you can certainly tell it's getting to be summer. it's pretty quiet on wall street. tech stocks doing well. some of the big names in tech, but investors seem to be waiting for the federal reserve's next meeting, and that is next week. ringing the opening bell this morning, the us green building council celebrating 30 years of promoting environmentally responsible practices, shaping policies and setting standards for green building through the leed green building program. as we take a live look at the numbers, they're all up today, some small gains. they're about a quarter of a percent for the dow jones, as you can see. same for the s&p 500. the nasdaq, once again, it has been the big leader all week. it's up about 80 points, a little more than a half of a percent this morning. google is getting more serious about workers coming back to the office for more than a year. google has asked workers to come to the office three days a week, offering free food and other perks a

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do they go down the pimco route? which is tolerate to point something? support growth and we have a different story. tom: they will deny that the hallway. canon is 2%. jonathan: that's a hope and a prayer. equity features positive. 0.1%. this is ge aerospace, advancing flight for future generations. ♪ welcome to a new era of flight. what do you see on the horizon? uncertainty? or opportunity. whatever you see, at pgim we can help you rise to the challenges of today, when active investing and disciplined risk management are needed most. drawing on deep expertise across the world's public and private markets in pursuit of long-term returns... pgim. our investments shape tomorrow today. >> it's heard to talk about a skip. it's possible but it is not our view. if it is trying to take stock of what actually is happening in terms of taking sector start it's going to take more time to see that. at the same time i think they have to tell us that they have not declared victory on getting inflation down. there is pressure for them to move more. jonathan: chief eco

listening to the chairman at pimco, talking about accepting something. that is a real change.at this is where we are, we want to get back towards to percent but just carrying on without actually being at 2%. tom: there was a brilliant portfolio a couple years ago. it is not to percent. it is one point x percent -- 1.x%. that is a huge debate. jonathan: last year, deutsche bank comes out early and call for a u.s. recession and has not changed that call sense. we will talk about the dates and back into the of it. we catch up with matthew lizette he in about 50 minutes time. lisa m: keeping you up-to-date with news from around the world. with the first word, i am lisa mateo. some 230 square miles of ukraine's southern kherson region is underwater, two days after the destruction of a dam. almost one third of the flood zone, where thousands are being evacuated, is held by radiant forces while the rest is underbrush iq i territory. kyiv is assessing the territorial and ecological extent of the damage which is considered a war crime. uber wants to go electric. the ceo says the ride-h

a lot of good work from richard clarida at pimco and columbia and driving forward the idea there willnew rate regime. that dovetails into china. right now futures at -17 we will advance the conversation on china. i will not mince words. leland miller is an outlier with his granular analysis of china. you aggressively push against the china economic gloom. what are the gloomsters getting wrong? leland: i think there is reason to be gloomy but everything has to be relative. these are probably some of the most difficult economic numbers we have ever had to unravel in over a decade. if you look at what we do know, we know the early expectations there would be a rally, those were wrong. if you look at what is happening with q2, the idea there will be a boom, those look wrong. is there a recovery or are things falling apart? if you look at this sequentially, you have been seeing some improvement month-to-month. china beige book data improved three straight months. if you go into the industrial production data it looks like there is sequential improvement. retail sales numbers are hard to de