Speaker 1: Bloomberg Audio Studios, podcasts, radio news.
Speaker 2: After reducing interest rates by twenty five basis points straight
Speaker 2: out of the gate in that news conference, asked an
Speaker 2: obvious question, why do this when you're expecting inflation to
Speaker 2: remain above target? The chairman acknowledging today was a closer
Speaker 2: call that we've cut interest rates by one hundred basis
Speaker 2: points across three meetings. The recalibration phase is over. We're
Speaker 2: in a new phase. Things of foggier, the darker you
Speaker 2: move more slowly. Well, this was the price reaction to
Speaker 2: that in the market. Equities slammed down one point five
Speaker 2: percent on the S and P on the natstack, down
Speaker 2: by more than two the small caps. Some outperformance on
Speaker 2: the small caps going into the decision, real underperformance coming
Speaker 2: out of it, the small caps down by two point
Speaker 2: eight percent. In the bond market, big move at the
Speaker 2: front end of the curve, yields up across the curve twos, tens,
Speaker 2: and thirties on a two year up by more than
Speaker 2: ten to four thirty four eighty two. And off the
Speaker 2: back of that and foreign exchanges, you might expect the
Speaker 2: dollar stronger against everything in G ten ripping up em
Speaker 2: you wrote dollar breaking down through one oh four and
Speaker 2: threatening to do the same to one oh three. You
Speaker 2: wrote dollar right now at one o three sixty four.
Speaker 2: We all had questions about the forecasts. Why have you
Speaker 2: bumped it up on inflation. Why are you projecting higher
Speaker 2: inflation than you were projecting back in September. Why have
Speaker 2: you reduced the number of interest rate cards from four
Speaker 2: to two in the median dot for the dot plot
Speaker 2: in twenty twenty five? Is it about the data or
Speaker 2: is it about Donald Trump? Take a listen to the
Speaker 2: Chairman of the Federal Reserve.
Speaker 3: Some people did take a very preliminary step and start
Speaker 3: to incorporate highly conditional estimates of economic effects of policies
Speaker 3: into their forecasts at this meeting and said so in
Speaker 3: the meeting. Some people said they didn't do so, and
Speaker 3: some people didn't say whether they did or not. So
Speaker 3: we have people making a bunch of different approaches to that.
Speaker 3: But some did identify policy uncertainty as one of the
Speaker 3: reasons for their they're writing down more uncertainty around inflation.
Speaker 2: Compare and contrast that to what you heard from the
Speaker 2: chairman back on November seventh. We don't guess, we don't assume.
Speaker 2: We don't speculate. December eighteenth, some of us guests, some
Speaker 2: of us assume, and Lisa apparently some of us speculate.
Speaker 1: The we is doing a lot of heavy lifting at
Speaker 1: a time where clearly he's reflecting a splintering committee that
Speaker 1: is dealing with a whole host of different outcomes and
Speaker 1: potentially political leanings. And I just want to go here,
Speaker 1: this is going to be viewed through a political lens. Inevitably,
Speaker 1: it already was threatening to do so. Now there are
Speaker 1: some people who are incorporating highly conditional estimates. I wish
Speaker 1: that we had learned more about what those estimates looked
Speaker 1: like and whether they all were inflationary or whether some
Speaker 1: of them were to slower growth.
Speaker 2: Neil Datta wanted to jump onto the program. We can
Speaker 2: bring them into the program right now, Nil Detta of
Speaker 2: renmac neil. Is this federal resist on a collision course
Speaker 2: with the incoming administration.
Speaker 4: I mean, it certainly feels like they're tempting faith, you know,
Speaker 4: I mean Powell's talking about he goes through a litany
Speaker 4: of indicators talking about how the labor markets are cooling,
Speaker 4: and then he, you know, in the same sentence basically
Speaker 4: talks about how they're dialing back rate cuts. So I
Speaker 4: think that that's that's a problem. And you know, I
Speaker 4: think the the optimistic take around this is by making
Speaker 4: the forecast adjustments that they've made, they're actually, in some
Speaker 4: respects lowering the bar for additional action, you know, early
Speaker 4: next year. So like two point five percent on core inflation,
Speaker 4: I mean, that's a reasonably high number. And you know,
Speaker 4: given what we know about rental inflation, that's probably going
Speaker 4: to slow down, given what we know about you know,
Speaker 4: consumer goods. You know, if you look at things like
Speaker 4: freight rates, it's probable that consumer durable goods price is moderated,
Speaker 4: you know, over the next couple of months, you know,
Speaker 4: just as the new administration's coming into office. So you know,
Speaker 4: I think they're signaling a pause. But it's also important
Speaker 4: to remember that by March the forecast might look a
Speaker 4: little bit different and they maybe they may have to
Speaker 4: cut again.
Speaker 5: Neil, you were my Economics of the year two years ago.
Speaker 5: You were optimistic when few were. Now you've switched flat
Speaker 5: out switches, no other way to put it. How off
Speaker 5: is Atlanta GDP now at three point one percent? Is
Speaker 5: Powell know something we don't know, and those visible present
Speaker 5: numbers are just flat out wrong.
Speaker 4: I never I never think. I mean, I don't think
Speaker 4: the FED really has an economic forecasting edge of any
Speaker 4: meaningful degree. You know, Tom, the FED doesn't have a
Speaker 4: GDP mandate. So it's interesting to see how much Powell
Speaker 4: was talking up gross domestic product, private final you know,
Speaker 4: domestic sales. I thought that was pretty interesting, quite revealing, actually,
Speaker 4: because that was sort of a way for him to
Speaker 4: avoid the questions around the labor market. And we know
Speaker 4: that duration of unemployment as an example, has gone up
Speaker 4: by two to three weeks over the last couple of months.
Speaker 4: Leaving that aside, I mean, you're right, I mean I
Speaker 4: am more cautious. I remember two years ago, around this time,
Speaker 4: the consensus was conditioned for you know, basically everyone was
Speaker 4: penciling in recession, and all I did was point out
Speaker 4: the fact that the labor markets were fine and housing
Speaker 4: stocks were moving up into the right Fast forward to today,
Speaker 4: it's literally the opposite situation. Everyone is sanguine on growth.
Speaker 4: It's very difficult to talk about recession. No one really
Speaker 4: wants to hear it. And at the same time, we
Speaker 4: know that the labor markets are slowing by Powell's owned admission. Okay,
Speaker 4: and just pull up a chart of homebuilding stocks.
Speaker 1: Well, meanwhile, Neil, I just want to point out the
Speaker 1: fact that other people are taking a different tack than
Speaker 1: you are, as you say, your contrarian thinking that there's
Speaker 1: more weakness in the market. Peter sheher saying this he
Speaker 1: doesn't think is necessarily political. He said, this is a
Speaker 1: fed that is worried that inflation isn't coming down fast enough.
Speaker 1: And well, it might play in the back of their mind.
Speaker 1: They aren't responding to fiscal potential policy on the margins.
Speaker 1: Some are, but he's saying in general they are not.
Speaker 1: Why do you disagree so fundamentally with that?
Speaker 4: Just go through the go through the document, look at
Speaker 4: the balance of risk to the inflation forecast. It's a
Speaker 4: dramatic increase in the number of participants that see the
Speaker 4: risk to headline and core inflation eskewed to the upside. So,
Speaker 4: I mean, they can say whatever it is they want,
Speaker 4: but based on the data, it's very difficult to justify
Speaker 4: the distribution of risk that you see in the projections.
Speaker 4: And how are the risks to inflation going up at
Speaker 4: a time when labor is cooling and wages are slowing.
Speaker 4: We know that recruiting intensity is down, we know that
Speaker 4: quits rates have collapsed. Okay, that probably implies that there's
Speaker 4: further cooling with respect to compensation growth between now and
Speaker 4: the next couple of quarters. The dollar is surging today
Speaker 4: because of what just happened, you have to start thinking
Speaker 4: about what that might mean for the emerging market space,
Speaker 4: because obviously these countries have a lot of dollar denominated
Speaker 4: debt and that's going to imply tighter financial conditions in
Speaker 4: those economies. So okay, I mean, I think based on
Speaker 4: the data, it's really difficult to say that the distribution
Speaker 4: of risks have changed that much. And Powell even said
Speaker 4: that based on the inputs from core CPI and producer prices,
Speaker 4: you'll probably get a pretty weak reading on core pc
Speaker 4: inflation when that data are released on Friday. And the
Speaker 4: big story again out of the inflation data over the
Speaker 4: last week has been the normalization of housing rental inflation.
Speaker 4: So I think, you know, to me, this is it
Speaker 4: feels a little bit like they're pre judging potential policy outcomes.
Speaker 2: Em currencies right now getting hammered. Neil, I don't expect
Speaker 2: the caller. I don't expect the tide, but maybe just
Speaker 2: a jack in next time, Noil, maybe a jack hid
Speaker 2: you know, for some post fed show commentary.
Speaker 6: In the studio.
Speaker 4: Back in the studio, I'll put on you know, my
Speaker 4: my Gucci for you.
Speaker 2: There we go. I'll make that happen, Neil, make it
Speaker 2: happen soon and Neil appreciate it, sir, enjoy the holidays.
Speaker 2: Neil Dutta there.
Speaker 6: Showing up in a Christmas sweater.
Speaker 2: I mean, next time, white t shirt was better. I've
Speaker 2: got one with a better bad joke on the back.
Speaker 6: Do you really a number ten?
Speaker 1: Produce Christmas hanging like.
Speaker 2: Not with like you know, jingle bows going on.
Speaker 6: Like lights, its lights. It serves Monday. I mean it serves.
Speaker 2: Monday, Monday, definitely when I'm not here. Sarah House of
Speaker 2: Wells Fargo joins us. Now for more, Sarah, These forecasts
Speaker 2: some controversy around them. Neil Duttter making the argument that
Speaker 2: he believes that underpinning that shift in inflation higher in
Speaker 2: those dots for the dots coming down from four cuts
Speaker 2: to two, he believes as a real Trump effect in
Speaker 2: the forecasts. Sarah, is it the data or is it
Speaker 2: the incoming president.
Speaker 7: I think it's a little bit of both. John, So,
Speaker 7: I think you've seen certainly there's been a little bit
Speaker 7: stronger momentum in terms of the inflation numbers. That's why
Speaker 7: you got the upward revisions to the Q four numbers
Speaker 7: here for this year. But I think when you look
Speaker 7: at just the magnitude of the change as well as
Speaker 7: the balance of risks. We heard pal say that at
Speaker 7: least some participants included some assumptions around policy, and some
Speaker 7: didn't say if they were. So I think there is
Speaker 7: a little bit of recentering the risks around the forecast
Speaker 7: within these projections.
Speaker 5: Sir, When you do all the math at Wells Fargo
Speaker 5: as you do with Jay Brice, and when you sum
Speaker 5: it up, what are you going to watch forward to
Speaker 5: the next FED meeting? I mean, Neil Dudda just said
Speaker 5: GDP is not part of the mandate. Do we watch
Speaker 5: the jobs report? Do we look at inflation? I mean,
Speaker 5: what really matters in the guestimate forward into late January?
Speaker 7: Yeah, it's jobs and inflation. So I think after today's
Speaker 7: meeting it's a little bit more on inflation. So I
Speaker 7: think that's one of the big takeaways is we're seeing
Speaker 7: that emphasis shift back towards more of a focus on
Speaker 7: inflation after I think the labor market took more of
Speaker 7: the spotlight in the late summers. We had a couple
Speaker 7: week jobs report, unemployment rate going up pretty quickly there.
Speaker 7: But I think today's Today's message was they have less
Speaker 7: conviction about that downward path of inflation. So I think
Speaker 7: the next few reports, especially getting through the first quarter,
Speaker 7: where there's a lot of questions about residual seasonality. So
Speaker 7: do we actually see enough of a slowdown where you
Speaker 7: start to see that twelve month trend which Paul talked
Speaker 7: about so much in today's press conference, do you see
Speaker 7: that begin to come back down? But they are still
Speaker 7: looking at the labor market, and I think that did
Speaker 7: feature in not just today's cut, but also still what
Speaker 7: is an easy bias where they do have a couple
Speaker 7: more rate cuts penciled in for next year, because as
Speaker 7: you heard Paul also talk about in the press conference,
Speaker 7: they're still seeing that labor market.
Speaker 1: Cool Right now, We're seeing markets respond pretty strongly to
Speaker 1: this and people forecasting that maybe at least this is
Speaker 1: the implication this could potentially make a more difficult circumstance,
Speaker 1: particularly for smaller companies. From your vantage point on the margins,
Speaker 1: if this is a FED that sees itself in a
Speaker 1: dark room full of furniture or in a foggy land
Speaker 1: that's moving more slowly that that on the margins is
Speaker 1: going to slow your expectations, Sarah, for growth next year,
Speaker 1: I think a little bit.
Speaker 7: I mean, we're still looking for three rate cuts next year,
Speaker 7: so not terribly different from what the FED has penciled in,
Speaker 7: but of course when they come could have implications for
Speaker 7: what happens with financial conditions over the coming months. So
Speaker 7: I think when we look at the inflation picture the
Speaker 7: rate picture, I think overall we're not seeing a meaningful
Speaker 7: dialing back of policy in the months ahead to the
Speaker 7: same extent that we were over the past four months,
Speaker 7: where you still have the real rates you know, closer
Speaker 7: to one and a half percent, so not much change there,
Speaker 7: and I think that is still likely to be ahead
Speaker 7: when particularly in some sectors like you know, Neil was
Speaker 7: talking about home builders. So I think there's still certainly
Speaker 7: some pressure in some of those more rate sensitive sectors
Speaker 7: of the economy that are going to feel it a
Speaker 7: little bit more. If the Fed's not going to be
Speaker 7: cutting quite as much or quite as fast as what
Speaker 7: they were thinking a few months ago.
Speaker 2: The next twelve months is going to be quite a ride. Sarah,
Speaker 2: thank you. I appreciate your time. Sarah House of Wells Fargo.
Speaker 2: This is the FED Decide to Bloomberg Savaded Special live
Speaker 2: on Bloomberg TV and on Bloomberg Radio if you are
Speaker 2: just joining us. A twenty five basis point reduction from
Speaker 2: the feder Reserve about an hour and thirty five minutes ago,
Speaker 2: followed up by quit a news conference with the chairman J. Powell.
Speaker 2: Lots of questions about the forecast. They revised their forecast
Speaker 2: for inflation a bit higher for twenty twenty five and beyond,
Speaker 2: and they took down their projection for interest rate reductions
Speaker 2: for next year down from four in the medium dot
Speaker 2: down to two. Off the back of that, there were
Speaker 2: some questions about why cut interest rates at all. The
Speaker 2: chairman called it a close call, said the recalibration phase
Speaker 2: was behind us. We're in a new phase where we
Speaker 2: have to move more slowly. Off the back of that,
Speaker 2: Equerry is just getting absolutely smoked right now. We're down
Speaker 2: by more than two percent on the s and P
Speaker 2: five hundred down by close to four on the Russell
Speaker 2: two thousand, some severe significant underperformance on a small caps
Speaker 2: If you check out the bond market, we'll just take
Speaker 2: a quick slice of it, the two year the yield
Speaker 2: higher at the front end by double ditchits. The two
Speaker 2: year yield pushing higher up by a round about ten
Speaker 2: basis points on my screen at the moment, cool eleven
Speaker 2: now to four thirty five. That's cross over. Toma McKee
Speaker 2: was in the room in the news conference, Mike, you'll
Speaker 2: big takeaway walking out of that room.
Speaker 6: Well.
Speaker 8: A number of interesting things in the news conference, including
Speaker 8: the chairman talking about some members of the committee pricing
Speaker 8: in some possible effects from the new Trump administration fiscal policies.
Speaker 8: But the biggest takeaway that I had is that the Fed,
Speaker 8: including the Chairman, are less confident. He wouldn't say he's
Speaker 8: not confident anymore, but they are less confident about the
Speaker 8: path of inflation. He basically said, it's come down, so
Speaker 8: we think it's going to keep going down. But it's
Speaker 8: not like we were seeing in the summertime, where they
Speaker 8: were very convinced that inflation was on the right track
Speaker 8: and headed to two percent, So that's really going to
Speaker 8: inform their decisions as they go forward. The other thing
Speaker 8: that I take away from this, John, interesting is we
Speaker 8: need to rename this show because you call it the
Speaker 8: FED Decides, but I would add the words the market disagrees.
Speaker 8: If you look at the forecast now in the markets,
Speaker 8: there is only one cut fully priced in for next year.
Speaker 8: So we're going to have this tug of war back
Speaker 8: and forth between the markets and the Fed. It seems
Speaker 8: ongoing from here.
Speaker 2: That tension continues. Mike, appreciate your time, sir, great work
Speaker 2: as always. Join us Now is Jeff Rosenberg of Blackrock. Jeff,
Speaker 2: I want your first thoughts. I asked the question to
Speaker 2: Bob Michael at JP Morkan Asset Management, and I said
Speaker 2: to him going into the news conference, are you more
Speaker 2: or less confident embracing risk given what you've just learned
Speaker 2: from the Federal Reserve? And Jeff, I want to ask
Speaker 2: that question of you after that, are you more or
Speaker 2: less confident embracing risk into twenty twenty five?
Speaker 9: Well, you can see, Jonathan, you know this is a
Speaker 9: surprise to markets, and so one of the things the
Speaker 9: markets had hoped for was a FED that was very
Speaker 9: much leaning towards easy financial conditions, focusing more on the
Speaker 9: labor side than on the inflation side, and that was
Speaker 9: pretty supportive to financial conditions and taking risks. So you
Speaker 9: see the market reactions that you just talked about not
Speaker 9: what markets were expecting. And so certainly that's a little
Speaker 9: bit less favorable environment for risk taking because you have
Speaker 9: a FED that has really kind of surprised me. I
Speaker 9: think it surprised the market here in saying, hey, we're
Speaker 9: more worried or as worried about the inflation side now
Speaker 9: than we were about the labor markets, and that means
Speaker 9: we're not going to be as quick to cut. And
Speaker 9: it's the cut in the policy and the favoring of
Speaker 9: easy financial conditions that was so supportive to taking risk.
Speaker 1: Jeff, the reviews are coming in. That was one of them.
Speaker 1: Here's some others. Steve Shivron worst performance worst power performance
Speaker 1: is twenty one. They overreacted to labor market data in September.
Speaker 1: Now they are overreacting to inflation data. Krishna MoManI, probably
Speaker 1: the worst Russer so far of his tenure, seems to
Speaker 1: support for this cut was quite spotty, but they went
Speaker 1: ahead with it anyway, Jeff, do you agree with that?
Speaker 10: Yeah, you know a lot of the sentiments in there
Speaker 10: are about just how much the FED when they stopped
Speaker 10: forecasting and became data dependent. The problem is they're dependent
Speaker 10: on like as much as he said they're not trying
Speaker 10: to be, it feels like they're dependent on the last
Speaker 10: few data releases and so yes, going into September, it
Speaker 10: was all about labor markets. Now it seems it's all
Speaker 10: about inflation. I think one of the earlier guests end
Speaker 10: and I would agree with this. You know, this is
Speaker 10: not going to be a great forecast for where the
Speaker 10: fed's future forecasts have been because they've been just so
Speaker 10: whipped around by short term movements in data. And that
Speaker 10: certainly is kind of frustrating. And Jonathan, you earlier question,
Speaker 10: you know, makes it makes risk taking a bit tougher
Speaker 10: because the FED signaling and what we're going to get
Speaker 10: out of the FED is just that much more uncertain.
Speaker 5: Atche Frozenberg, Ellen Meltzer, you're Carnegie Mellon come runer up
Speaker 5: at Rock had a shadow Open Market Committee, which was
Speaker 5: the first rule was stability.
Speaker 6: Stability.
Speaker 5: I don't see stability in EM I don't see stability. Granted,
Speaker 5: it's a different story in generic China ten year.
Speaker 6: They're going to open here in three or four hours.
Speaker 5: Is Blackrock internationally concerned about the Asia opening here?
Speaker 6: Call it seven pm our time?
Speaker 10: So, you know, Neil mentioned it in his comments about
Speaker 10: the impact. You know, the FED sets monetary policy based
Speaker 10: on domestic US conditions, but the impact on the rest
Speaker 10: of the world is as important, particularly when it flows
Speaker 10: back into the United States. And how is the channel
Speaker 10: for that flowing back. It's through the potential of tightening
Speaker 10: and financial conditions. I think the tightening and financial conditions
Speaker 10: from the dollar increase is going to be much more
Speaker 10: front and center in emerging markets. What Powell talked about
Speaker 10: is the exceptionalism. What no one really talked about was
Speaker 10: what is the source of that exceptionalism? What is the
Speaker 10: source of that exceptionalism. Partly, it's this incredible technology AI
Speaker 10: wealth creation story that is feeding into positive animal spirits.
Speaker 10: It's feeding directly into consumption through the wealth effect, and
Speaker 10: so that creates a little bit of a buffer around
Speaker 10: the US economy around some of the blowback issues you
Speaker 10: raise in terms of currency open and Asia. So I think,
Speaker 10: you know, we keep an eye on it, But so
Speaker 10: far it's really this much bigger story about American exceptionalism,
Speaker 10: which has a kernel a really important point of that
Speaker 10: about this incredible wealth creation we're seeing coming out of technology.
Speaker 2: Jeff, I'm pleased that Tom brought this up. The move
Speaker 2: we're seeing on the screen, the phone exchange screen on
Speaker 2: the Bloomberg terminal really lighting up. We've got a three
Speaker 2: percent move on the Brazilian currency. Yet today we're talking
Speaker 2: about a move of twenty three percent on the Brazilian currency,
Speaker 2: twenty one on the antentigin PA. So we're looking at
Speaker 2: something like seventeen percent on the Mexican pay. So, Jeff,
Speaker 2: as I look around the world beyond DM, not just
Speaker 2: the Europe, but including Asia and China specifically, China is
Speaker 2: looking at a disinflation rebust potentially. The chart of the
Speaker 2: yields government bond yields in China just lower, lower, lower,
Speaker 2: and rolling over into year end. Jeff, how much divergence
Speaker 2: do you expect for the US versus the rest of
Speaker 2: the world in twenty five.
Speaker 6: Yeah, you know, we're really exiting.
Speaker 10: We talked about exiting the phase of monetary policy. We're
Speaker 10: also exiting this phase of kind of harmonized macroeconomic implications
Speaker 10: for inflation that was then feeding into harmonization for central
Speaker 10: bank policies, and so as kind of the reasons that
Speaker 10: Powell talked about for that decline in inflation without kicking
Speaker 10: up unemployment rate, it was really about the restoration of
Speaker 10: supply chains and the post COVID impact that was a
Speaker 10: global impact that's now starting to dissipate, and what's coming
Speaker 10: in and the aftermath of that are a lot more
Speaker 10: of the idiosyncratic country specific fundamentals driving those economies performance
Speaker 10: the currency you mentioned a bunch of different countries there,
Speaker 10: from Brazil to Argentina to China. That's really all about
Speaker 10: domestic economic policies economic performance that is driving. And so
Speaker 10: that's really a market environment of divergences rather than convergences,
Speaker 10: and so that's really affecting the investment outlookause, particularly for
Speaker 10: investing between the markets in what I call a cross
Speaker 10: section that's actually a better investment environment. It takes out
Speaker 10: kind of the directional call is the dollar going up,
Speaker 10: is the dollar going down? You have a lot more
Speaker 10: opportunities within that global cross section of investing both in
Speaker 10: currencies FX curves. It actually creates a better environment in
Speaker 10: some sense for alpha creation, because divergences create more alpha opportunity.
Speaker 1: Jeff, you've said a number of times that because of
Speaker 1: the increase in uncertainty at the FED to reserve, an
Speaker 1: increase and uncertainty as to the path of their policy,
Speaker 1: that it makes you less inclined to take risk on
Speaker 1: the margins, which risk in particular looks most vulnerable to
Speaker 1: you or less attractive as a result of increasing uncertainty
Speaker 1: on the FED.
Speaker 10: Yeah, and if I get I want to pair that
Speaker 10: to my last answer, because you know that's the directional call, right,
Speaker 10: So is the FED easing financial conditions, raising the value
Speaker 10: of prices makes risk taking more supportive? Then that's really
Speaker 10: talking about risk taking in in the beta sense, in
Speaker 10: the directional space. So where are you more vulnerable just
Speaker 10: to your beta exposure, beta exposure to directional rates, beta
Speaker 10: exposure to your directional equities. But the divergences question earlier
Speaker 10: about the impact thinking about globally that actually makes risk
Speaker 10: taking better in the alpha and the cross sectional space.
Speaker 10: So it's about portfolio construction and it's about how much
Speaker 10: am I putting risk on in terms of directional space.
Speaker 10: That's really where the FED today that you want to
Speaker 10: be taking down the flip side is in the alpha
Speaker 10: space in the cross section. It's actually a better environment.
Speaker 10: That's where you want to be adding risk into the portfolio.
Speaker 6: HF.
Speaker 2: I appreciate your time, Sir Jeff Rosenberg of black Rock. Enjoy
Speaker 2: the holidays remaining the team will take you through the
Speaker 2: clothes in just the moment. Tesla's want to watch going
Speaker 2: into the close down ten percent of the moment in
Speaker 2: this session, have to sort of acknowledge that we're up
Speaker 2: still about twenty percent this month alone. A couple of
Speaker 2: things to note here, Lisa, the year so far Q one,
Speaker 2: inflation headfake Q three, labor market head fake Q four.
Speaker 2: This FED looking just a little bit lost.
Speaker 1: And honestly, the market is responding to being a little
Speaker 1: bit lost by selling off in a dramatic fashion.
Speaker 6: I'm speechless.
Speaker 5: I think it's going to be interesting, particularly on watching
Speaker 5: FX into the Japan open.
Speaker 2: Could not agree more. This dollar is a whole lot stronger.
Speaker 2: Just how much oxygen is left up here? Your equority
Speaker 2: market's down as session loads with a negative two point
Speaker 2: nine percent from New York. Thank you for choosing Bloomberg
Speaker 5: M