good to catch up, subadra joppa, socgen head of u.s. strategy -- subadra rajappa, socgen head of u.s. rates strategy. yields are lower by six basis points. the lows right now, 1.2302%. your equity market soft. we are down 46, off by 1.08% on the s&p 500, down about 47 points now. the gnostic 100, it is part of the story as well. if you think about it, more recently, what has held up? it has been the nasdaq 100 into last week. then last week, it was everything lower. tom: i would go to that. we will go into earnings on that. it is hugely discrete to big tech, and you see that with an 8% pullback on the russell 2000. i look at it, and what i see in the research tone over the weekend and to begin the week is the loneliest -- the loneliness of the united states in that fiscal stimulus. just the separateness of it from the other dynamics out there. jonathan: q1 was u.s. exceptionalism. what is q3? what would you call q3 right now? tom: i think you talk to subadra about it. jonathan: i think there is total confusion at the moment about what i

socgen chairman lorenzo bini smagh. let's check in on the markets.ght volume, the ftse 100 fractionally down as you can see. the dax a little higher. the cac going nowhere today. a drift sideways as we wait for the long week and over in the united states. kailey: one stock not drifting sideways is gordonstoun motors. breaking news the department of justice is probing the company which is an ev maker that went public last year. usually it is off the lows, trading down about 9%. we know the sec also is looking into the company. previously disclosed the sec required -- requested information in february. since the stock's peak in february, down by 70%. we will continue to track it. we also tracking brent. it is positive again and wti is back up. the opec meeting is finally underway after a two hour delay. we will bring you the latest, next. this is "bloomberg." ♪ kailey: getting back to oil, bread pudding positive as the opec+ meeting is underway. the uae is prepared to accept unchanged output in august. they're finally in the room talking. do we know an

coming up, subadra rajappa, socgen head of real rates strategy.omberg. ♪ taylor: the biggest u.s. banks will be out with second-quarter results early next week. jp morgan, goldman sachs kicking off the season. joining us with what to watch, what to expect, betsy graseck, morgan stanley global head of banks and diversified finance research. it was jp morgan's daniel pinto that said trading is back, that the trading slump is gone for good. do you agree with that? betsy: it depends on what your frame of reference is. trading will be down on a year on year basis, and a large part because last year was a banner year, and we all know what happened with spread compressions driving the bus on unusually higher earnings. we do expect trading is going to be down roughly 30% year on year, and that is what we are looking for. i think it is the forward look over the next several years. that is a different question relative to what we are looking for this quarter. guy: huge moves in the bond market this week. a flattening curve. we have obviously been watching w

socgen out with a note highlighted be start contrast between the ecb, the boe, right now.ot to move the arrow. she wants -- the euro. she wants stability. that is a huge deal. jonathan: right now, 1.1775. we got to say happy birthday to romaine bostick. he took his birthday off, so we didn't get a chance to do that. romaine: thank you, jon. it was a wonderful birthday. next year, maybe we will spend it together 5:00 in the morning. jonathan: i would love to. romaine: it is earnings this week. let's start off with coca-cola. a pretty big eat here -- pretty big beat here. probably the most notable thing, and 25% jump in case volume on those non-sugary beverages. think teas, coffees, some of those waters. those things getting a boost here. j&j getting a boost not only in pharmaceutical sales, but a 63% jump in medical device sales. some of that some of the base effects from the lockdowns we had a year ago. speaking of base effects, netflix. they added about 5.5 million subscribers in the first half of 2021. that would normally be great. the problem, they added 26 million subs

. -- that sucked jen -- that socgen cited.g the energy stocks n1/3 cheaper -- energy stocks 1/3 cheaper than the msci world. we have seen oil prices go up. we see earnings estimates go up. as a result, the stocks get cheaper on a price to earnings basis when you look forward. that is what is happening to that group in relative terms. when you go to the metals and mining stocks, you are talking about a discount as much as 54%. in terms of history for the energy stocks, it is the biggest discount since 2008, and we have data on the metals and mining group going back to 2010, the lowest ever, so possibly 2008 as well. it just goes to show you how cheap these companies have become in relative terms, and terms of being able to buy here. lisa: we are getting bank earnings as wells fargo is just crossing the tape. you are seeing shares down 0.9% in premarket trading, not anything to write home about necessarily relative to some of the other moves, at least not yet. so we talk about positioning heading into these earnings, we are talk

an exclusive interview with socgen chairman lorenzo -- lorenzo smaghi is at 11:30 in new york.off the coast of hawaii today. a boeing 737 cargo jet made an emergency landing in the ocean near honolulu after reporting engine trouble. according to the faa, the coast guard rescued the two crew members aboard. in may, the u.s. trade deficit grew to the second largest on record. the gap in trade of goods and services increased to $71 billion. american consumers stuck at home during the pandemic have been buying even more goods that have sent imports to repeat records. opec and its allies are locked in an intense diplomatic standoff, trying to resolve a dispute that threatens to send oil prices higher. the cartel appeared to be on the verge of an agreement to boost output late yesterday, but then a dispute broke out between the united arab emirates and the leaders of the coalition, saudi arabia and russia. global news 24 hours a day, on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i'm leigh-ann gerrans. this is bloombe

matt: joining us now is kit juckes, socgen chief fx strategist.bs report, what it means for the fed. we thought we had seen a pretty hawkish turn from the fed, and yet rates were still moving down. right now still looking at a 10 year not trading, but 1.423 8% seems incredibly low for a central bank whose members have been talking about tapering sooner than later and raising rates maybe even at the end of next year. kit: i think the last bit was the bit that summarizes it. some of them are looking at the end of next year. they moved a majority of dots to the back end of 2023. it is july 2021 at the moment, so no one is talking about raising rates within 12 months. the market price is a rate cycle after the selloff in the first art of the year. it prices a selloff towards 2% at some point in the future, and what we want to know is how far is it going to go. don't think we learned that from the fed. or at least, we didn't learn enough to make more people jump at the idea of going short tenure notes and paying the negative carry away, or short any pa