incidentally, the pimco income fund has done well. people want less credit exposure, more high quality bonds, limited in interest-rate risk. sonali: we were talking earlier, and our guest said that dynamic is pretty decent if you were short. how many managers have that conviction to be shorting the longend? michael: i guess a lot of managers have been under waiting a longend. less interested in buying 30 years. that sums up how managers have begun to position themselves. there are deep concerns about the deficit picture. an acceptance when you talk to fund managers that washington really isn't committed in any way to curtailing spending. there will be a lot of focus on what the trump administration can do. talks about how they can cut to trillion dollars in spending. a lot of people dismiss that as even plausible. if you look at the bond market, a lot of managers are focused on that two to five-year part of the curve. pensions and other longer dated institutional investors do by the 30-year, but that will be a sticking point, one area

morgan, pimco, blackrock about this and your colleague rick rieder singh this morning he is comfortable with the belly of the curve staying shorter further out. looking further out, when can you even start to touch it? gargi: i think that as of this moment, the fact that you are earning so much income in the belly, in the front end of the curve and all of the risks that lie out there for increasing deficits that aren't going away anytime soon, but are, in fact, increasing. you don't necessarily have a reason to hold anything longer than the 5-7 year part of the curve given the amount of income you are able to generate. it is not necessarily about the exact level of the 10 year. i do not think that is as important as the fact you can build a perfectly resilient portfolio right now with income generation in the belly of the curve. you can fund that in the front end, in the belly. you don't need to go out. having said that, i want to turn for a second to the fact that as of today we have had about a trillion dollars in etf inflows in the u.s.. it's a huge day for us. a tremendous amount of

it is why you have pimco and fidelity sagan the ecb might have to go lower than neutral when it comesdpoint for interest rates next year. it draws the conclusion that her tone did not match the outlook. tom: and bloomberg reporting that they will go again in january and possibly march as well. on the politics then with the lens on france, possibly a new prime minister being named but did christine lagarde have anything to say about french politics? >> she did not want to wade into this. the question is whether the ecb would be willing to use the transmission protection instrument to deal if there is another yield spike like we saw with the greek levels of borrowing costs. she did not comment on the situation in france. she referred to general political risks that make forecasting difficult. and she mentioned the snap elections in germany. keeping it very broad when it comes to the politics. this is the elephant in the room when it comes to the forecast for next year. tom: lizzy burden covering all things ecb for us. and general elections -- we will see how that factors in in february.

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. >> the bond report brought to you by pimco. the places we cheer. trust. hang out. and check in.all choose the advanced network solutions and round the clock partnership from comcast business. powering more businesses than anyone. powering possibilities. to go further, you need to be ready for what's down the road. as energy demand continues to rise, we're harnessing breakthrough innovations to increase production in the u.s. gulf of mexico. our latest deepwater development, anchor, produces previously inaccessible oil and natural gas, allowing us to deliver the energy we all need today so everyone can follow their own road. that's energy in progress. c1 >> as we're discussing navigators. welcome back to power lunch. the markets are up pretty nicely today 1-1/2%. although it was 147. >> we did lose 1,100 pointings. >> we're still trying to dig out of that hole. pretty big hole this week. >> 59.47 is the biggest in a week. >> the santa claus rally kicks in normally after christmas. so this is not the normal. >> just into the new year. it's a pretty good move there for sure in trea

. >> let's discuss this with the portfolio manager at pimco. good morning.ood to have you on the show. i would like to get your thoughts on the discussion of the 50-basis point cut. of course, christine lagarde was clear that ultimately discussed it that everyone agreed with the 25-basis point move. what is the fact that we know they discussed it mean to you as you think about 2025? >> good morning. the market was pricing little bit more, so there was a chance before the meeting they would do 50. there was more concern around growth these days given inflation is closer to target and policy was still restrictive. it is quite understandable they discuss 25 or 50. given you are closer to neutral now and inching closer to neutral and 25 basis points was a reasonable decision at the end. >> interesting you bring up the neutral. where do you think the neutral is given you think they are approaching it? >> i think the reason why the market took the decision which is hawkish, is, a, she poured cold water on the 50 basis points from here and she indicated the neutral

moving after this short break as an older adult, >> announcer: the bond report is brought to you by pimco, a global leader in active fixed income a contagious virus that d lead to hospitalization. don't wait until you're sick. ask your pharmacist or doctor about an rsv vaccine. - [narrator] we just signed the lease on our third shop. don't wmy assistant wentsick. to customink.com to get new uniforms with all the locations. he found great products, uploaded new art, and had boxes sent to all the shops. custom ink makes it so easy. get started today at customink.com. hive digital technologies is embracing the ai boom by supercharging its data centers with nvidia gpu chips, a move that diversifies hive's revenue streams and solidifies its position as a leader in the digital economy. hive digital technologies. nate jones... lines things up... checks his fidelity app... looks to outside analysts to get a second opinion. nate likes what he sees... and he places the trade... talk about easier investing. doors lead us to places we've never been. your dedicated fidelity advisor can help you open t

matt: blackrock and pimco, we will get reaction on the jobs report as well as acting labor secretary

lee cantrell of pimco. from new york city, this is bloomberg.aded? susan: where am i headed? am i just gonna take what the markets gives me? no. i can do some research. ya know, that's backed by j.p. morgan's leading strategists like us. when you want to invest with more confidence... the answer is j.p. morgan wealth management ♪ ♪ when y ♪ something hast with changed within me ♪ ♪ it's time to try defying gravity ♪ ♪ ♪ matt: some ceos leading their post 30 minutes until the start of cash trading. welcome to bloomberg open interest. sonali: bloomberg open interest starts right now. ♪ matt: coming up, pat gelsinger retires instantly as intel ceo after a storied career. the

rate cut, let's bring in richard clarida, former fed vice chairman and now global economic adviser at pimcowe were talking about? let's just recount what i asked you when you sat down. first thing i said was, is it possible the fed hikes next year you said probably not. and then i said, do you think the risks are symmetric, i'm asking if both mandates are equally important right now. i think you started to tell me, no, the inflation -- the dollar stability side of things is more important to what the fed should be doing right now i said, why are we cutting >> i do think the risk to inflation are to the upside. i think the committee and the chair acknowledged that yesterday. i think the case for cuts going into september was the data was cooperating and they felt the policy was restrictive i think the case for a cut yesterday was a close call, indeed we had president hammock dissenting and the unusual situation, joe, where three other officials, presumably presidents, also indicated they didn't support the cut through their dot. i think it was a close call. i do welcome the fact the committe

those of you working for pimco. lisa: go back to bed. jonathan: i don't think they can.nd market yields higher two basis points. under surveillance, chairman powell changing his tune. >> in the near term the election will have no effects on our policy decisions. we don't guess, we do not speculate, we do not assume. some people to take april a merry step and start to incorporate highly conditional estimates of economic effects of policies into their forecast. someone did identify policy uncertainty as one of the reasons for their writing down more uncertainty around inflation. jonathan: what a difference a month makes. jay powell admitting multiple fomc members weighed policy uncertainty. drew matus it's there remains a risk inflation remains higher and it may impact the fed's path forward including reversing course. drew joins us for more. we all have the same question when we saw the updated forecast. a much was about the realized data and how much was trump? which was it? drew: to answer that you have to look back to september. why did they go 50 in september? because