It is in the athletic, for our reporting has reached an agreement. Tom this is a big deal. How does a franchise pick it up . This is a seismic deal for english football. Explain for our audience in america that doesnt understand. Jonathan accepted a 100 million euro offer. Lets see if he accepts that. He wants to win trophies and it looks like he has to buy munich to do it. I think he is Something Like 51 goals behind a phenomenal goalscorer to become the top scoring stryker of premier League History and he is going to leave potentially before he reaches that. Tom one quick question. Explain Bayern Munich compared to ac milan compared to paris. Jonathan delete. Delete. Elite. Tottenham does not come close to that. Tom i will call you back. Bye. Lisa i am surprised it was not a bigger reaction. Jonathan i thought it would be, too. Lisa you said you are going to break something. I knew that henry kane must have left. Jonathan let me try that again. From new york city, good morning. This is bloomberg surveillance on tv and radio. I am Jonathan Ferro. It is cpi thursday. Equity futures on the s p 500, positive by 0. 5 . Tom the summary of the data to get to jackson hole and the fed, may be all of the other economic data, you have to look at core inflation because topline inflation is going to be affected. You got the pop in gas prices. It is about core inflation. Jonathan onto the next meeting, are they going to open the door to the pause . They seem to be open to that. Lisa the greatest part about the cpi report is everyone expected to confirm it will be a soft landing, confirm disinflation, confirm to the same thats you will see in the market. The disagreement comes on what is next and how much do you dismiss this as a head fake. That is what were going to hear from person after person. Jonathan what is the biggest risk . Backing away too soon or staying on too long . Tom for the central bankers of the world, the threat is backing way too soon. The right word is it haunts them. Tom jonathan the 1970s haunts them . Tom even the 2000s. They are really concerned about making the faux pas. Youre going to make a faux pas and it is that is when you listen to citigroup and say at some point it is going to turn. Lisa i have to disagree. The tide has shifted and the fed feels they are more worried about disrupting you labor market and the possibility of a soft landing that the holy grail out there that we are going to achieve this time and go down in history as the ones who do this. They are more concerned about that then the hunting of the 70s. Tom i did a fancy math study this morning on core inflation to get back to 2. 0 , spring of 2026. That is how far away their babel is. Jonathan your equity market on this appeal looks like this. Equity markets are positive by. 55 the yield change around 4 at the close. That is where we stayed, we are going nowhere. Lisa the euro went to 1. 10. The expectation is a for both headline and court. Very thirsty see what counts as a soft landing. Right now it feels like people do believe the fed is done. They want to hold, they would excuse us start moving away. I 00 p. M. , this is the key moment. The u. S. Is selling 30 year bonds. This comes after any option of 10year note yesterday that was fine. It was not awesome your seals it was not awesome. Fed speakers lineup today. They lent a fed president , we have been hearing a lot from him, and Philadelphia Fed president. Jonathan senior Portfolio Manager of joins us now. Lets talk about what youre are looking at seeing later this morning. Margie we think we will see inflation first going down a little we dont think we will get any break that will say we think the fed has clergy there has clarity there. Tom s dividend and Dividend Growth a yield equivalent for a constructive use of yield or do you have to go to a higher yield in fixed income right now . Margie if you can find companies that have good growth, that is a good strategy rather than going for big dividend payers because that has not been successful strategy. In a fixed income market, high yield looks like the best place to be. You can say 7 to 8. 5 . For fixed income investors, that is not bad. Tom i am fascinated by what cfos do. If you have a legitimate real yield, do they listen issuance lessen issuance or not . Margie they have been optimistic about lengthening money over the last decade, i think they are going to see more of the same. We have had a drop in the amount of issuance from corporations. Reflecting the fact that they need they dont need a money at all and rates have picked up from a year or two ago. Corporations really dont seem to be stressed in general. They dont need to money in order to operate so that is good for the economy. Lisa there is a feeling the fed is quick to move away from stricter policies well in advance of security. How much is that your base case and how much will todays cpi report underscore that . Margie i dont think the maturity wall is quick to be an issue because of the liquidity companies have. They space on maturities, a lot of companies have tremendous the quiddity assets liquidity assets. We have seen the maturity wall story come up over the years and companies have always gone through it. It want be an issue this time either. Lisa how much does that idea hinge on the idea of a soft landing cutting rates for the next year even if we dont see an employment rate pickup the Unemployment Rate pickup . Margie you look at the history books in previous cycles and you think about what is going to happen, that is why people keep coming up with the wrong answer. They dont look at the changes we have had, a decade of new zero writz. It is near zero rates. Companies dont need to borrow money. The banks have been restricted a number of times. It is hard to see where this recession is going to come from. The economy has been impervious to the feds increase in rates. Jonathan can we talk about pricing. . The Walt Disney Company came out after the close yesterday, they are putting prices up. Can you speak to Pricing Power across america right now . How strong is it . Margie i think it is going to continue to be strong. Disney thought they had room to raise prices and i think they will be successful in retaining price increases. That is why we see corporate margins maintain themselves. A lot of people but we have seen urchins give a good squeeze but companies have able to pass on price increases. Tom in a blended portfolio, to provide balance, is a 60 40 portfolio balanced now . Margie no. I think you be looking more on the equity side. The reason being is i dont think youre going to see much total return out of the bond side. Rates and treasuries are going to stay relatively high compared to inflation simply because of the tremendous supply. Jonathan wen yu tom when you look at big tech, our share buybacks a yield equivalent for you are share buybacks a yield equivalent for you . Margie you could say that but some of the texts are trading at high levels. There is a risk if we see Companies Report lower earnings, and it does look like some of those are rolling over in terms of price, we could see a big price correction because they have gotten ahead of their longterm growth rate. Jonathan wonderful to get your perspective. Here is the set going into the inflation data. Your equity market is positive by 0. 5 . Cpi a little bit later. Plenty of fun and games with this stock. Novo nordisk in denmark is trading lower. The good news is basically they have beaten a race, every sign of the outlook after this blockbuster of medicine. Lisa they cannot get it to the u. S. As quickly as they need it in a time when it not only is it shanghai results, but you pointed to the study about reducing Heart Disease. You said basically this is obvious. If you lose weight, you reduce your Heart Disease potential remove occasions. Potential Heart Disease ramifications. Tom first thing yesterday was a b database as well. What are the health risks with this stuff . Do we know . How much weight do we lose with this . Lisa it is an injection. I was in big is definitely an injection. That is why the injector companies are going gangbusters. Tom how much weight do i lose . Lisa a lot. Tom like a pound or two . Jonathan you want us to sit here on tv and tell you how much weight you are going to lose . Tom this is a free lunch truck. That is all there is to it. Medically there is no free lunch. If i am losing weight like that, there has to be a side effect. Jonathan exercise, tk. Tom i know. Lisa [laughter] jonathan every time we bring up this story, lisa has done some research and regression burn. Lisa everyone is looking for a new story. A i fizzled yesterday. People are like, we have overblown this. Now everyone is jumping on the weightloss train. If you can offer everyone a free lunch, that is going to catch on. Jonathan there is a huge obesity epidemic in this country. During the pandemic, we talked about it, after the pandemic, we hardly talked about. Tom the peterson, i am like why are you lecturing my kids on weight . He says if i forget to lecture all kids, i will forget to lecture them. Lisa you are right to point at the pandemic, people staying at home and not exercising. Jonathan the amount of deaths tied to obesity and the risk factor of people in the group. Yet, it hardly got discussed. I would have expected after that to be some attempt. This is a big deal. The first time you connected your godaddy website and your store was also the first time you realized. Well, we can do anything. Cheesecake cookies . The chookie manage all your sales from one place with a partner that always puts you first. we did it start today at godaddy. Com pres. Biden where is it written that america cannot lead the world again in manufacturing . We are going to do just that. The plan is to invest in america. We are transforming our country by rebuilding americas infrastructure. I am not here to declare a victory on the economy, there is a lot more work to do. We have a plan. Lets turn things around. Bidenomics is a way of saying restoring the mckendree. Jonathan President Biden speaking in new mexico on a tour. The equity market on the s p 500 is 500. Yields unchanged, 4 on a 10 year. The yields below 4 at the auction on a tenure maturity. Later, you get a 30 year auction. That is coming shortly after the cpi report later this morning. That report, two hours 13 minutes away. The fx market, reclaiming 1. 10. Tom for global wall street, euroyen today is important. Trying to the triangle is of euro, dollar, and we are back easily 10 or 12 years. The euroyen feels like that is a 145 or 146. There is a word at the department of treasury that is taken seriously among those that provide leadership in washington, d. C. , an Alexander HansenAlexander Hamilton ward. Kim, thrilled to have you on. Explain how the culture wars link into your day to day grind in washington. For all of our viewers, it is a battlefield. Maybe it is a minefield, a better way to put it. How are the culture wars going to play out as we move towards the primaries . Kim it picks up on what you were talking about previously, how much of a free lunch can americans expect to get from macroEconomic Policy . Tom there are two different divisions in bidenomics and trumpenomics. Fitch got in the way, there was some noise. Is that kind of debt concern finally legitimate . Kim it has been legitimate for decades, just now we dont have any space to pretend it is not there. He macroeconomic challenge in washington is twofold. First it is to address the country and citizens from moving from zero bound rates to more restrictive policy. Secondly, rebalancing the fiscal books. We are adding about 20,000 beneficiaries per month to medicare. That cannot continue unless you are going to raise revenues above the 18 50 year average which we seem to be stuck at. You either have to trim your holidays your outlays through medicare or increase revenues to account for what has never been accounted for in the u. S. Lisa there is a question about how much this is being accelerated at the time for they are increasing geopolitical fractures. In particular, the u. S. And china moving further and further away. How much is that the concern . That International Buyers cannot fee obvious buyers of choice for treasuries in the same kind of way they have been . Kim i dont detect there is a lot of concern about that yet i detect there is concern that the u. S. Is not investing in itself in a way that 10 or 20 years from now treasuries will be as attractive as they are today. That is the big concern that from an Economic Policy standpoint, we are behind and it is going to take a while to catch up. You see that from the executive order yesterday which is a message to investors restricting their ability to invest directly. Not poor for you investment, direct investment. Artificial intelligence technologies and some of kentuckys and semi conductors in which china was to leapfrog the world. Prepare your netting at home, invest in your people, build in terms of infrastructure, invest in semi and manufacturing base, and make sure that investment flows strategically benefit a clear competitor. Lisa a lot of people would argue the argument from President Biden is a watereddown missive versus what people were calling for which was a ban on investments towards china and their Artificial Intelligence technologies. Isnt that essentially what we are looking for, something that will not go into effect until next year . Something that is nearly targeted and still subject to change . Kim the complete is understandable but it ignores the lift necessary in its policy. The president has recognized going back to his sixth month in office when his National Security council and Economic Council issued a word on supply chains a report on supply chains. The core of the report is that the u. S. Is behind on investing in itself and behind in paying attention to china and other competitors who have lucked out Green Technology and other technologies necessary for the future. When you are the reserve currency of the world, you have to step lightly but in this case the president has chosen to step firmly. It is going to be a bumpy path. They dont want to disrupt the world economy. It is a necessary move. Tom you are one of the rare beasts with some International Credit in terms of inside the beltway policymaking. I guess we are having m a factoring records i guess we are having a manufacturing renaissance. Do we have belabored labor to fill the factories . How do you respond to the serotype we dont have manufacturing in ohio that can compete with manufacturing 40 miles outside of hong kong . Kim if we had been doing these policies 20 years ago, this would not be a debate. You have to start at some point. There are parties interested in this but with the president leaving, they want to invest in hardware and mine ware. You have to start at some point. If you dont start, you are not going to catch up. Jonathan wonderful to get you on the show. Thank you very much. One of those debates when are those debates . About two weeks ago two weeks away . Tom yeah. I looked at the schedule, they dont do darbies in munich . How do i watch removable fish watch german watch german football . Jonathan it will be on espn. I think it might be. I will confirm minimum it. Tom we have a way to cope here a way to go here. Yesterday was historic. The disney struggle is a huge deal. As patel said, can they raise prices . Im sitting there, all i am thinking is is Jonathan Ferro going to pay the new movie . Jonathan live tv through hulu and disney plus plus espn is in the 80s. A month. Lisa they increased it by what, 27 . Jonathan pretty 7 . 27 . Lisa to reduce the hulu revenue numbers. I dont know why that headline is apple going to buy disney . He did not push back aggressively. Tom that is the smartest thing i have heard. Jonathan that is the smartest thing i have heard on this show in 25 minutes. Tom it was a high bar. Jonathan Bruce Cassidy is going to improve on things out of jp morgan. The inflation data later from new york, this is bloomberg. How can you sleep on such a firm setting . Gab, mine is almost the same as yours. Almost is just another word for not as good as mine. Save 50 on the sleep Number Limited Edition smart bed. Plus, 36 month financing on select smart beds. Shop now only at sleep number. Wow, you get to watch all your favorite stuff. Its to die for. And its all right here. Streaming was never this easy, you know. This is the way. You really went all out didnt you . Um, its called commitment. Could you turn down the volume . Here, you can try. Get way more into what your into when you stream on the xfinity 10g network. When people come, they say theyve tried lots of diets, nothings worked or theyve lost the same 10, 20, 50 pounds over and over again. They need a real solution. Ive always fought with 510 pounds all the time. 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When i started to radio, you had to get up every morning and write down the name of the the dash, because when you get up early you dont know. This is bloomberg. In the bond market, twoyear, 10 year, 30 year. Tender yesterday, no problem. 30 year supply coming out later. Attend your dancing in