This special edition of nightline, the hunted, will be right back. Start the car start the car the ikea winter sale. Wooooooo get up to 50 off select items. Now through january 10th. Ikea. Start the car start the car the ikea winter sale. Wooooooo get up to 50 off select items. Now through january 10th. Ikea. This special edition of nightline, the hunted, continues. Juju chang reports. Okay, oh very nice which bed is yours . Top bunk or bottom bunk . Nice. This is yours. Baracka and amgudu are bunkmates, living in hiding in tanzania. Does he snore at night . No . You like each other, huh . Yeah. Baracka, is it like having a big brother . Yeah . Reporter they both have albinism, a disorder marked by absence of pigment in the skin and eyes. Does he take care of you . When some people bully him, amagu tells him off. He protects you . Because he has such big muscles . Reporter they werent born brothers but their shared experiences have made them just that. Oh, good to see you. Reporter the
Supplier are raising concerns about harsh working conditions. Lots to talk about. Stocks coming back on weaker footing. A volatile ride when it comes to the equity session. Were seeing a little fragility to trickle into the markets. Always volatile when it comes to the crypto space. Bitcoin falling up to 25 . This is a live look at the main cryptos we have been searching. Were seeing a ripple. Falling as much as 40 . A fear as we get the regulatory down. Toth korea deciding whether question the legality of cryptocurrencies. We have china working to play whackamole to clamp down on some unofficial Trading Platforms as well. That is always the story we are watching for you on bloomberg. Looking at the broader markets, we are seeing the caution play out. 30 minutes from the opening in china. Coming online. Lets get it to sophie to see how we are faring. Caution indeed. Halting a threeday ride. The dollar is being stented by the rise in the euro. The dollar in particular. Set for a six day
Youre getting ownership of a company, some are higherpriced, shorter duration. You may buy something at 85, if they refinance, everything trains up to par. We also have some securities that came out of distressed, become equities, but they have done really become darlings of the mutual fund world yet. That transition creates a value gap that is quite tangible and large. Erik what is the stupidest place to take risk today . Josh that is a hard one for me to say. Im not sure i can give you a good answer but i would avoid being in very longduration low coupon bonds of any sort, particularly of investment grade. There is not a lot of upside remaining in highgrade longduration bonds. Relationshipric between the upside and downside. How do you think things will evolve over the next couple of years . If you were to cast your mind for 12 months, where would you be deploying capital . Monthsver the next six it is hard for me to look out an entire year. You dont know what accident will happen in
Its completely unprecedented. If you correlate deficits, government borrowing to Interest Rate, there is a zero correlation with it. I think rates are going up because of the fear that inflation is going to return and the central bank largess we have enjoyed or last 10 years is going to have to act faster than people think. Is time to understand what is driving yields higher. Is a sort of janet, drip, drip through the year. We know the treasury has more to issue to find out what we expect to be a wider deficit but also to finance the unwinding. International investors stepping up to the market and returning back to where they came from. The yields overseas are starting to grind higher, but the hedging costs is where some of the challenges will be. If you look at differences between hedging as a European Investor coming into the u. S. Market, it is no longer attractive. You cannot get a real yield. Ickup coming into the 10 year jonathan full house in new york city today. It went pretty
It is literally unprecedented. If you correlate deficits, government borrowing, Interest Rates, there is a zero correlation with it. But now i think rates are going up because of the fear that inflation will return and that the central bank will have to exit a lot faster than people think. It is a point to understand what is going on, it is not really the deficit, it is growth with inflation and reflation attached. We know the treasury had more to issue. Also to finance the unwind of the feds balance sheet. Some of this is International Investors stepping up from the markets and returning from where they came from. The yields overseas are starting to grind higher. The hedge and causes were some of the challenges will be. If you look at some of the differences such as hedging being and get a european investor, you cant get a real yield pickup getting into the tenure on a relative basis. Once you factor those hedging costs in. Full house in new york city today, joining me is matt hornbac