Basis points. At 10 30, weories have crude oil up 1. 1 , above 56 a barrel. Guy european equities look a lot rosier today. I keep reinforcing this point, we are very much feeling like we are in august now. Volumes are anemic. You take that with a pinch of salt. 10 year yields, we are watching that. Watching the 30 year as well. Anemican auction as well. In the italian 10 year yield, gains for btps today. Looks like president mattarella is going to maybe form an alternative administration down in rome. The market likes that. Areie central bankers preparing to gather in jackson hole, wyoming, and investors will be looking for clues about the Global Economic outlook that has been battered by the u. S. China trade war and a long list of geopolitical concerns. We are joined by michael crook, ubs head of americas Investment Strategy. It feels like it is busier than ever in terms of thinking about investment strategies. What are you doing at ubs right now . Michael i agree with you, we have a lot of volatility markets because of political uncertainty, policy uncertainty. When we look at the fundamentals, they are still quite strong. We have slower growth, but good growth. We are trying to help investors stay focused on the long, maintain equity exposure. Thats where the value is right now. They need to hold fixed income, but with a 10 year treasury at 1. 6 , you can only have so much. Vonnie did you make that decision after the 50 basis point drop in u. S. Yields, or has this been your position all along . Michael weve been overweight equities for quite a long time, but the drop in rates certainly makes it higher certainly mix it harder to hold fixed income. One thing weve been doing in portfolios is overweighting fixed income in the case that we have an economic downturn. That has worked really well. It will work forever. Noterterm, it is simply going to cut it in terms of what investors need out of a portfolio. Guy i want to come back to the fixed income story and ask you about that because the markets got 50 to 75 basis points of cuts priced in for the fed this year alone. Youve got minutes about to drop, jackson hole tomorrow. Youve got to get a sense at some point that this is going to go the other way. Are you worried we could see a selloff in the fixed income space . I wonder what you think the effect would be on equities. Michael we expect less than the market is pricing in right now. Our expectation is only for 25 basis point cut this year, two more next year. We will have to see. We will look at the Economic Data to see how that progresses. The market probably is pricing into much. , shorter termn Interest Rates come down, longerterm Interest Rates move up a little bit, but we are at a slower growth, low inflation environment. Theres only so much capacity for longerterm Interest Rates to move up. A lot of International Investors see u. S. Fixed income treasuries is a higher yield alternative to what they have available. Guy do you not feel that the world has turned on its head right now . You are basically talking about fixed income as not a safe haven asset anymore. A lot of investors out there have grown up believing that bonds are safe and equities are more risky. We are in a world where that isnt the case right now. You talk to clients, what do you tell them about how to risk w eight their portfolios . Michael bonds are safe in the short term, so if you need money a year to 10 years from now, you expenses, you should have money in fixed income. What im saying is the return from those positions is relatively low. Most investors have assets they are not going to use for a decade, 30 or 40 years. Tyrant assets, things like that. They should be looking towards equity markets as the main source of return it a portfolio. Vonnie we are up 16 sb 500 year for the im sorry, this year. How much further can this bull market run . Years, andok back 10 we are probably about 12 or third teen percent per year or 13 per year. I think the key is in contrast to what you would expect to get out of cash and what you would expect out of fixed income, that is still a pretty good deal. Vonnie doesnt seem like we are having strange reactions in the stock market . Some retailers today up double digits just because they beat. Michael the market is trying to price in shortterm noise. I think when you add to that the policy risk that we had to work through, that is what is driving a lot of this trading, trying to get a sense of what the economic picture looks like, and couple that with earnings out of corporations, weve seen a lot of sentiment shifts over just the last few months. But when you fundamentally look at the data, you can look for a lot of that noise and realize the picture is not that bad. So you dont see a recession . Theres been a lot of talks over the last couple of weeks. You dont see that coming particularly towards the United States . Michael we dont see a high probability of recession in the next 12 months in the United States. The data simply doesnt show it. I think sentiment shifts. If we asked that question a week ago, there are a lot more investors that felt like we were going to have a recession, and a lot of it has to do with equity market trading. Thats probably what the fed has to Pay Attention to, making sure that something doesnt happen to lead to recession from that mechanism. Right now the data doesnt support the idea that it is eminent. Guy for a more shortterm investment position, what is a safe haven asset right now . Bonds look pretty stretched. Equities, they had a great run. What do you do if you believe on a tactical basis, you know what . I think we are getting near highs. Id like to bailout. Where do you go and thats an area in thats an area . In that scenario . Michael this is a really boring answer, but safe haven assets, money markets, those type of assets, i think the key there is that leads tor longterm growth but has some shortterm needs, they should do what all the institutions do. Make sure they have a liquidity strategy and make sure they are not forced to sell equity positions when the market is down. We are going to picture everybody has that in place, and i question if they do after 10 years of able market. Humbly a good time to take a step back and make sure that basic allocation is put together to start with. Vonnie michael cook is speaking with us. We have a lot more to talk about, including the consumer, and more on jackson hole as well. That is michael crook of ubs. Lets check in on the first word news with kailey leinz. Kailey denmark is not interested in discussing how the u. S. Could buy greenland. Donald trump canceled a state visit set there for next month. The danish Prime Minister called the idea of buying greenland absurd. In venezuela, embattled president Nicolas Maduro says government officials have been Holding Secret meetings with u. S. Authorities for months. He also says he would like to speak directly to President Trump to resolve the conflict. The Trump Administration has imposed sanctions on the maduro regime and is supporting venezuelas opposition. China has confirmed it detained an employee of the british consulate in hong kong, held under a 15 day detention process in shenzhen. Beijing called the issue and internal matter, not a diplomatic dispute. It described him as a hong kong citizen. In italy, president Sergio Mattarella has started talks about the next government. He will have to decide whether another Ruling Coalition is viable. Government is one of the options after the Prime Minister giuseppe conte. Global news 24 hours a day, on air and at tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. Im kailey leinz. This is bloomberg. Guy what to take you to some pictures we are seeing out of hong kong right now. Protests seem to be ramping up again tonight. You can hear the noise on the street. It is 10 10 in the city. We are seeing protesters building barricades, the police are beginning to form up as a result of that. We are going to continue to monitor the situation as it unfolds throughout the night in hong kong. This is bloomberg. Live from new york, im vonnie quinn. Guy from london, im guy johnson. This is bloomberg markets. Lets get a market update. Here with the details, emma chandra. Emma we are looking at the u. S. , following europe into the green. ,he s p 500 rising some 8 10 very close to 1 . Nasdaq close to 1 as well. Rising the most in about an fears election in the autumn gives way to bets that we could see an alliance between the fivestar movement and the democratic party, and that could be slightly more business friendly. It is the big tech names that are the winners on a points basis. The retailers are the winners on a percentage basis. That is being led by the likes of target and lowes. They are up double digits so far in the session. Target up close to 20 today, hitting an alltime high, trading at about 100 a share. Yesterday it was below 90 a share. Comp sales for both target and lowes better than expected. A lot of people have taken from this that the consumer is still pretty strong. Fiat chrysler is up on the news that there are still talks with renault about a possible tie up. The german 30 year, we saw that auction earlier which turned out to be a bit of a damp squib, the first 30 year offering with a zerocoupon. Finally, we should be able to show you the stoxx 600 over the course of four days. You can see a nice gain over those four days. Three of those days you have seen gains greater than 1 . If the s p 500 grinds higher today, it will also do the same. Guy thank you very much indeed. We are just getting to breaking news with regards to brexit. A french official coming out and saying that a no deal brexit has scenario. The central remember, Boris Johnson is meeting with angela merkel. We are expecting a press conference between those two at around 5 30 this evening london time. Boris johnson apparently telling officials recently that theyve got a few days, and then they are going to cut off communication with the eu to focus on no deal brexit planning. The pound trading close to session lows. Vonnie back with michael crook now, head of americas Investment Strategy at ubs. The allimportant American Consumer is doing just fine, weathering those trade threats, and then there are potential policy shifts in the works. How are your clients figuring 2020 and the potential policy shifts we are seeing from President Trump . Michael i think a lot of concern we have from our clients is simply they are not sure what to actually expect. The trade war issue keeps coming and going. 0 tariffs, 25 , no tariffs same thing with some of the tax policy issues that have been discussed recently. It is hard to know exactly what to expect, and that makes it difficult to plan. For the most part, i would say our clients are more focused on trying to understand what the likely policy implications are tweets or some of the daytoday ebb and flow of these issues. Vonnie so where are they coming down . For example, on this recent idea that there might be potential tax cuts in the works . Although weve had a denial of that and then a reaffirmation. Is that even possible . Michael for our clients, that has to be a waitandsee approach. If you have large, builtup Capital Gains, and there is some potential to be able to index those two inflation, that might push off your decision to sell certain securities or assets. I think the bigger issue right now is almost viewed more from the feds perspective in terms of what impact this has from an economic standpoint. Some of these ideas heard the echo money the economy and economic growth. If you are the fed trying to balance that and send clear guidance, that has got to be the challenge. Guy if i look at the u. S. Right now, i can kind of divided into divide it into two buckets. Another 25ing about basis points, some kind of payroll tax cut. That is going to help as well. Unemployment is super and wages are going up. Anything with exposure to china doesnt look so great. Is it as simple as that . Michael what we see out of the economy is there has been a slowdown in the u. S. In the manufacturing part of the economy. Certainly a slowdown also an industrial many factoring standpoint, but that is a smaller part of the economy that has been historically. We have done some things in our portfolios to try to upset that. Weve been underweight industrials for a while, really since last year in terms of trying to protect a little bit against the trade issues. That is not going to be a panacea, but there are things like that you can do that will help. Guy globally, bond proxies have done really well. Names like nestle, unilever, plenty of the states. If there was a selloff in the bond market, how would that impact that sector . Michael theres been a global search for yield for a decade now. The risk that we have this big selloff in the bond market, and my opinion, is relatively low. There arent a whole lot of factors that would drive rates up substantially from here. But you would expect that normal relationship to hold, so those securities would become a little bit less attractive from a yield standpoint relative to fixed income if investors can get the yield they are looking for out of the Global Treasury market. Vonnie michael, thank you. That is michael crook, ubs head of americas Investment Strategy. We want to keep you updated now on the situation in hong kong. Protests in the city seem to be ramping up again tonight. Cannons,e using water and as you can see, there are some tense situations right there. We will keep you updated as the situation unfolds. Cameras on the ground, obviously, and protests ramping up again in hong kong. This is bloomberg. Taylor time now for the muni moment. Im lucky to be joined by wells fargos securities. So much of the conversation the last month has been how fast and how low rates have come down. From your side on the banking perspective, what sort of rush has this meant for issuers trying to come to market . Charles thank you for having me. The whole issue has been reset from when we were in a completely different fed policy environment. Most of 2019 has been characterized by a lack of urgency in the Issuer Community market in anticipation of these rates staying at crazy low levels. When rates changed hit the lowest point in almost every tenor, and reinvestment rates are at their highest point in anyones memory. Taylor what types of deals are they bringing . Charles its an excellent time for issuers to come to market. First, peoples are thinking about finding ways to accelerate Infrastructure Projects by prefunding capital needs, may be a little bit ahead of ofedule, take advantage Market Conditions today. Bondrs can reinvest proceeds at about the same rate that they are borrowing for the intermediate term, so it is costing very little to borrow and sit on the cash in this market. Taylor how does that affect the reinvestment in texas, versus reinvestment in the market . Inexempt and reand taxexempt versus reinvestment in the market . For the same reinvestment dynamic, where issuers can fund escrows much more efficiently than they can in a normalized steep yield curve environment. Taylor we talked about the dearth of new issue supply. You seeing new issued and hold off on breaking ground, or a lot of refinancings come to market as rates are so attractive . Charles it is a combination of both. Of takingonversation risk off of the table while Market Conditions are so strong. Taylor we talk about the highyield market and how this is a great opportunity for a highyield market deal. On holders may be taking on too much risk, and maybe not having the types of covenants or protections that maybe they once had when they had the leverage to demand that. What types of covenant like deals are you seeing, and does that worry you . Charles you are absolutely right, and it is a good thing in the sense that issuers have optionality to bring things to the market that might not have been received in a less forgiving market. It worries me a little bit that we are seeing all of these covenant like and highly structured transactions in the sense that when you think about an impaired bond and when it becomes impaired, it is usually at the end of instruction, which is two or three years after original issuance. The frothiness in todays market is allowing transactions to be placed with investors where we dont know how that is going to play out. Taylor wonderful. Charles peck, head of Public FinanceInvestment Banking over fargo, thank you. Vonnie in china, they have detained a worker from the u. K. Consulate. Riot police in protesters in hong kong again tonight. This is bloomberg. At comcast, we didnt build the nations largest gigspeed network just to make businesses run faster. We built it to help them go beyond. Because beyond risk. Welcome to the neighborhood, guys. There is reward. Beyond work and life. Who else could he be . There is the moment. Beyond technology. There is human ingenuity. Every day, comcast business is helping businesses go beyond the expected, to do the extraordinary. Take your business beyond. Vonnie live from new york, im vonnie quinn. Guy from london, im guy johnson. This is bloomberg markets. Vonnie weve just seen crude Oil Inventories cross the bloomberg. Of is up 1. 3 in advance that number, expected to be a drawdown of 1. 3 3 million barrels. Weve been being surprised by this number week in, week out. We will see if we get a surprise once again today. We are getting a drawdown, but it was twice what we were looking for, 2. 73 million barrels. The market was looking for a drawdown of 1. 33 million. Inventories saw a build. Refinery utilization was much stronger than anticipated. Once again, crude Oil Inventories, a drawdown much larger than anticipated. We are seeing crude oil back off though,s now, still up, at 56. 74 a barrel. Guy here with the first word news is kailey leinz. Kailey china wants to reshape the global perspective of protests in hong kong, referring to violent activities aimed to trample the rule of law. Links betweenbed protesters and socalled foreign forces. Protesters say they are seeking more democracy. President trump lacking out at what he calls politically correct automakers that have pushed back on his plan to efficiency programs. He said it would make cars safer. President trump says he can order a Capital Gains tax cut without congressional approval. The president would do that by indexing the taxes to inflation, a move that would largely benefit the wealthy. The Tax Foundation says it would do very little to spur economic growth. It probably would lead to a court battle, too. Democratic president ial candidate Bernie Sanderss to fundamentally overhaul u. S. Labor law. Today, sanders is unveiling his that would establish a europeanstyle system of sector wide bargaining. Global news 24 hours a day, on air and at tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. Im kailey leinz. This is bloomberg. Vonnie thank you. This is very interesting, a bit of a tack left, although maybe what we expect from the likes of Bernie Sanders. It includes sweeping labor perform, most of what heap of of what he proposed in 2018. It would abolish state right to work laws, which are very important in some states in the United States, including texas. It would ban mandatory antiunion meetings at work, make it harder for companies to claim their workers and so on, and it will get the support of unions, but it is questionable just how much unions can contribute to the overall vote these days. They definitely have lost a little bit of this way. Guy i think this is really interesting, particularly at a time when the Business Roundtable changed its view of the world. It changed it from a focus on shareholders to stakeholders. Youve got to think the unions play a part in that. If you look at the stats in the United States, and this is really interesting, you need interesting, Union Employees earn generally more than nonUnion Employees. Support most citizens support unions. Youve got Bernie Sanders saying this on one hand, and jamie dimon saying something not to do similar on the other hand nash dissimilar on this. It kinda feels what they are moving in a same direction. Jamie dimon and Bernie Sanders. That is a pretty interesting combination. Vonnie im not quite sure they are saying the same thing. I would imagine, in fact, they are saying quite the opposite. That jamie dimon is saying the worker is important and we are going to have that is part of a platform for the Business Roundtable, but i bet if you asked him if unions were welcome and if they should be at every company, he might just have a very nuanced answer to that particular question. So it is really interesting optics here. Guy i think it will be a question that would be worth asking because the Business Roundtable talked about that idea. It talked about the fact that labor is an important constituent in all of this. Whether that labor is unionized or not, we will wait and see. But 60 of Americans Still support unionization. We are talking about getting wages higher, rebuilding the middle class, that kind of stuff. You wonder whether or not they could ultimately be pulling in the same direction. We will wait and see. Vonnie exactly. We will continue to discuss. Another political story we are following today is china, confirming it has detained a u. K. Consulate worker from hong kong. The case underscores Security Fears of people traveling from the Financial Hub to the mainland. It also adds tensions between china and the United Kingdom and United States over their defense of the prodemocracy protests. Lets bring in bloombergs bill faries. How much of this is escalation . It sure feels like an escalation bill. An escalation. It does. We saw some conciliatory comments from hong kong executive carrie lam, trying to , ich out to protesters a bit proposal for dialogue and to look into Police Actions that i think initially people helped would hope diffuse tensions. That author has so far been rejected by opposition leaders, and we see plans for more protests, and this latest detention by china of a u. K. Consulate worker adding to what has already been a tense situation for almost coming up on three months shortly. This situation is still very fluid, and obviously having some sort of impact on u. S. China talks. It is going to be something i think World Leaders at the g7 in france this weekend have to discuss. Guy do we think this is related . It is interesting. We looked at what happened with the huawei detentions and how that was initially denied as being related, but ultimately became related in the United States to the wider trade narrative. Is the detention of this work are directly linked to what is happening in hong kong . Do we know that . Do we know why hes been arrested . If so, what is the objective of trying to drive a wedge potential between china and the u. K. . Bill i dont think we have enough details on the circumstances around this detention. It was only recently confirmed. Whether it is directly involved or not, i think it is going to get lumped into the broader issue of whats been going on in hong kong and the wests position. Early on when these protests started, there was a lot of silence not just from the u. S. , but many western capitals. As fears rose over a potentially violent response by chinese authorities, you eventually saw countries starting to speak up about the protests, and obviously youve seen President Trump over the last week or so repeatedly talking about chinas, what he thinks is chinas need to find a humane way of resolving this. Its one of those incidents that, on its own, might be easily resolved, but given whats been going on, it becomes part of a much bigger story. Vonnie china has already said lawmakers from other countries such as the u. S. Keep their opinions to themselves on this, but now china is really clamping down on companies. Has issued akpmg directive to its employees in hong kong not to speak about what is going on. How far does this reach . Tamp business exploration in hong kong and potentially draw business away . Bill you talked to a lot of people whether this is a sort of Inflection Point for hong kong. Its made its mark as such a critical financial business hub, not just for asia, but for the world. But as you see, china continuing to exert a greater influence still 25 or 30 years before its supposed to madeits agreements it with the u. K. Over hong kong ends. You wonder if this will be a friendly environment after get through this crisis, and where it may be a little more safed more safe or more convenient for them to do business. About the United States and denmark. We have seen the tweet overnight that the president is now not going to visit denmark because denmark doesnt want to sell greenland. This is what the danish Prime Minister had to say at a briefing a little earlier. Beenederiksen this has rejected, a position i share, of course. This does not change the character of our good relations. Greenland clearly is going to be a strategic asset. Denmark runs it at a very armslength basis, but has no interest in changing the status quo. I am just kind of fascinated, how is this story going down in washington . Hearing . You this is an incredible situation, that a visit has been canceled because and mark wont sell greenland to the United States. Bill its one of those things, weve all been at some level baffled over the last week. When the first rumors of this started, no one knew if it was a serious proposal or more of a joke. I think on some level, we still dont know whether this was a serious request by the United States or not, but clearly as it became something that leaders on both sides of the atlantic had to talk about, and denmark had thisme out and bluntly say island is not for sale, and even if it were, they are greenlanders and we are not in the position to sell it. I think everyone has been taken by surprise. It is not clear that u. S. Officials in denmark at the embassy were consulted about any of this. I do think it has resulted in this cancellation of a visit by the president. I think both sides are working to make sure it doesnt hurt longerterm relations. I suspect that a month from now or a year from now, we will be looking back at this as a kind of oddity. But i dont think it is going to be doing permanent damage. Vonnie the danish Prime Minister clearly saying that u. S. And danish relations hasnt changed because of this, and is disappointed that the visit was canceled. A column today talking about the nordics and how they occupy a special place in the president s mind. On one hand, they are held up as an example of sound, socially conscious governance, and on the other hand, as socialist governments. Our things to bill faries from washington, d. C. Goldman sachs is planning some hiring in its trading unit. Engineersing for 100 in tech related roles on the Trading Floors. According to the cohead of engineering in the trading division, they would be adding those the Trading Floor in the coming months. Goldman higher all day, up about 4 10 right now. Guy i suspect they would like the multiples. Coming up, the doom and gloom in argentina since that shock primary election. But some companies are weathering the storm pretty well. We are going to find out which companies we are talking about. Thats next. This is bloomberg. Guy 22 45 in hong kong. You are looking at life pictures from the city. This is not on the main island. You are looking at significant prot the New Territories this evening. The police have been lining up. Weve seen police in riot gear, and it looks as though the situation is getting more tense. Pictures at a train station, the focus of attention right now. As you can see, the situation looks pretty turbulent right now. We will continue to keep you up to speed with what is happening. We will see how the situation either improves or escalates throughout the evening. 22 45 in hong kong this evening. Vonnie joining us now is wet ,eight is matt Winkler Bloomberg editorinchief emeritus. Let me get your thoughts on hong kong and the situation deteriorating, whether it will hurt business in the long run, or if this is just something that will get sorted out pretty quickly. Matt the best thing that could happen is over time, attention dissipates. The reason is there are going to be no winners if it goes the other way. People in hong kong are not going to win. People outside hong kong are not going to win. People in china are not going to win. That scenario is to figure out how to gradually diminish the tension because hong kong is really a global asset. It is important to the world. Pretty much Everybody Knows that , which is kind of why we are having the disturbance we are having, because it is getting everybodys attention. Linked theesident trade talks to the situation in hong kong. Mcconnell yesterday talked about congress reviewing hong kongs special status. How should the u. S. Play this . Matthew very carefully because hong kong is one of the financial pillars of the world. There are only a handful of them. At this moment, it is new york,. Ong kong, and london, really strategically important assets. So the u. S. Should be doing everything it can to take the temperature down. Vonnie your latest column about another place with a lot of gloom, and that is argentina right now. This statistic is mindboggling. 39 . Ndex is down you are just back from argentina, and you say it is not all lost. Matthew no. If you look at Financial Assets in argentina, whether it is the peso, the bond market, the stock market, it is all a disaster since those primary elections, which went a way that many people did not see, actually, because it was so emphatically a rejection of the freemarket policies of the Current Administration of macri. Companieshere are two that are both technologically with enormous total returns. We are talking about triple digit returns over the last five years. One is at 100 , the other at 60 or 70 this year. That is in the midst of everything going bad. Why is that happening . These are companies that are internationally minded. Most of the revenue is brought from outside argentina. They are engaged with the most advanced part of the global , and they are really benchmarks, not only for argentina, but for the world. They are competing against global giants. Libra is amazon and paypal together in latin america, and they have a dominant share. In globant, they are engaged around the world in solutions. Isnt the message these yournies are saying, that success is to go get revenue from outside argentina . Thats why theyve got the valuations they have. Ricotta libra meanso libra literally freemarket. They are committed to global markets, to working with customers around the world. Globant is no different. The messages that argentina benefits when is it when it is open to commerce as much as possible. Flourishednies have in the face of what has been, for the most part, a disastrous Economic Policy and the new century. The reason why they flourished is because they are designed to do business with people everywhere around the world. They are very much unlike some traditional argentine companies, where most of their customers, most of their employees are based in the country. These are companies that stand out, but this is come up by the way, the Global Economy works. Companies that are multinational operating with distances everywhere are the companies that are going to thrive. Vonnie it is a great column. I would urge everybody to read it. Matt winkler, editorinchief emeritus for bloomberg, thank you. This is bloomberg. Vonnie time now for our stock of the hour. We are looking at denmark again. Danish jewelry maker pandora shares are up double digits, up 15 . Lets get the story from emma chandra. Emma it is all about the doubledigit gains that beat retailers today, the second such day for pandora, also closing 10 higher yesterday. They are on a four day winning streak. Thats added some 4 billion to its market cap. Tuesday we got earnings that were better than expected. Today we heard from the analysts. If they are trading well below the analyst price target, you past two days allowed shares to catch up. New ceos praising the and strategy. America saying think of they are saying pandora that is unsurprising given the long tumble the stock has taken since the highs of may 2016. In the past, pandora had been a target for the hedge fund attacks and has been heavily shorted. Short interest still remains high, but well below the 2017 levels. The prior ceo and cfo were often accused of failing to communicate well with analysts and investors. The new regime seems to be changing that narrative. Guy interesting stuff. Thank you very much indeed. Lets turn our attention to what is happening in the markets. Lets go to the cme. Bill baruch joining us from blue line futures. Weve had a massive move in the bond markets, stabilizing a little bit over the last couple of sessions. Are people talking about taking some chips off the table . Bill i wouldnt be surprised to see this thing come in. Youve got fed chair powell friday, and i think the u. S. Data is starting to turn a corner. Guy what are people saying hole . Jackson what are peoples expectations when it comes to that speech friday from the chair . If hes not super dovish, the market looks like it is out of position. Bill i agree with you. We did see into july, he talked about a midcycle of judgment. Weve seen yields go below 2 , and right now they are setting below the record low. We need to get above their to neutralize this fallout in yields. Prices are rising sharply, consolidating very well. The one thing im looking at is the commitment of traders as well. It is ironic to see that the net short position is holding very strong, so it tells me when we get that short dip that sharp dip, you want to be a buyer. Guy thank you for joining us. This is bloomberg. From the couldnt be prouders to the wait did we just winners. Everyone uses their phone differently. Thats why Xfinity Mobile lets you design your own data. Now you can share it between lines. Mix with unlimited, and switch it up at anytime so you only pay for what you need. Its a different kind of Wireless Network designed to save you money. Save up to 400 a year on your wireless bill. Plus get 250 back when you preorder a new samsung note. Click, call or visit a store today. Guy 30 minutes left in the european trading day. From london, im guy johnson. Vonnie from new york, im vonnie quinn. This is the european close on bloomberg markets. Guy european stocks in your session highs, but volume absolutely unhe met today. Absolutely uneven today. Btps are catching a bid today. Looks like president mattarella is trying to form a government rather than going back to elections. The btp market likes that. Vonnie in the u. S. , the s p 500 firmly above 2900. Retailers are partially the reason for that, including lowes. Target is up the likes of 17 . The 10 year yield 1. 57 . We will be speaking yields any moment with steven major of hsbc. He will talk about