WEBVTT - Oil Rises on Saudi Cut Pledge; New Apple Headset

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<v Speaker 1>From the Bloomberg Interactive Burgers Studios. This is Bloomberg day

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<v Speaker 1>Break for Monday, June fit Coming up today.

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<v Speaker 2>Oil gains after Saudi Arabia pledges to cut supplies by

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<v Speaker 2>a million.

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<v Speaker 3>Barrels a day.

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<v Speaker 1>The dead ceiling deal could set off a flood of

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<v Speaker 1>borrowing for the Treasury.

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<v Speaker 2>UBS plans to complete its Credit SUITEE takeover by next week.

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<v Speaker 3>I my stocks on the cost of a bull market.

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<v Speaker 1>Morgan Stanley says the rally won't last.

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<v Speaker 4>Assessn't a plane that was edited to long island crash

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<v Speaker 4>in Virginia, plus as Ukraine started its counter defensive against Russia.

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<v Speaker 4>I'm Michael Barner.

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<v Speaker 5>More Ahead, I'm Don Stansdallen Sports than Miami Heat won

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<v Speaker 5>Game two of the NBA Finals in Denver. The Yankees

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<v Speaker 5>top the Dodgers. The Mets lost again to the Blue Jay.

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<v Speaker 6>That's all straight Ahead on Bloomberg day Break, The Business

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<v Speaker 6>News You need to sturn your day in just one

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<v Speaker 6>fifteen minute podcast each morning on Apples, Spotify, the Bloomberg

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<v Speaker 6>Business app and everywhere you get your podcasts.

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<v Speaker 7>Good morning, I'm Nathan Hager.

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<v Speaker 1>And I'm Karen Moscow. Here are the stories. We're following today.

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<v Speaker 3>Oil is on the rise this morning.

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<v Speaker 2>That's after Saudi Arabia announced it'll cut supplies by one

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<v Speaker 2>million barrels a day starting next month. The move takes

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<v Speaker 2>Saudi crude production to its lowest level in several years.

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<v Speaker 2>Here's United Arab Emirates Oil Minister Sahail Mohammad alb Musruri.

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<v Speaker 8>It was a good deal, of a historical deal, and

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<v Speaker 8>we look forward to monitor the market. But that deal

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<v Speaker 8>is giving clarity to the market and giving the market's

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<v Speaker 8>visibility on next seat.

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<v Speaker 3>And checking all prices.

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<v Speaker 2>Right now, Nimax screw's up two and a half percent

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<v Speaker 2>at seventy three dollars fifty one cents a barrel.

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<v Speaker 1>Well, Nathan back here in the USh. The thread of

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<v Speaker 1>the government of faulting on its debts is now on

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<v Speaker 1>hold until after the next presidential election. President Biden has

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<v Speaker 1>signed the deal with House Speaker Kevin McCarthy. That's a

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<v Speaker 1>spenser nation's debt ceiling until January of twenty twenty five.

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<v Speaker 3>This is vital.

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<v Speaker 9>It's because it's essential to the progress we made over

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<v Speaker 9>the last few years. Is keeping full faith and credit

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<v Speaker 9>of the United States of America and passing a budget

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<v Speaker 9>that continues to grow our economy and reflects our values

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<v Speaker 9>as a nation.

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<v Speaker 1>And the President addressed the nation from the Oval Office

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<v Speaker 1>before signing the bill on Saturday. This gives the Treasury

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<v Speaker 1>Department the green light to issue more than a trillion

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<v Speaker 1>dollars in new debt after months of disruption. Bank of

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<v Speaker 1>America estimates the wave of new issueance could have the

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<v Speaker 1>same impact as a quarter percent interest rate hike from

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<v Speaker 1>the Fed by draining liquidity from banks.

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<v Speaker 2>Speaking of banks, Karen, US regulators are reportedly preparing to

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<v Speaker 2>force large lenders to shore up their financial footing after

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<v Speaker 2>this year's regional bank collapses. According to the Wall Street Journal,

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<v Speaker 2>the changes could raise overall capital requirements at large lenders

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<v Speaker 2>by roughly twenty percent. The paper says institutions with large

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<v Speaker 2>trading businesses would take the biggest hit, while those heavily

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<v Speaker 2>dependent on fee income could also face significant increases.

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<v Speaker 1>Well in Europe, Nathan, you be expect to complete its

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<v Speaker 1>tank over of credit sweets as soon as next week

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<v Speaker 1>and week at the detailser on Bloomberg's Ewan pots in London.

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<v Speaker 3>Good morning, Ewan, Good morning Karon, Nathan.

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<v Speaker 10>It has been a tumultuous period for the normally sleepy

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<v Speaker 10>world of Swiss banking, but now that period is joined

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<v Speaker 10>to close, as UBS says it's credits Wee takeover could

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<v Speaker 10>be completed as soon as next Monday. Credits we share

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<v Speaker 10>holds to receive one UBS chef for every twenty two

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<v Speaker 10>point eight outsigning shares held. The deal agreed in that

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<v Speaker 10>dramatic weekend back in March creates a megabank that not

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<v Speaker 10>only dwarfs every other Swiss lender, it's also double the

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<v Speaker 10>size of Switzerland's economy in London.

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<v Speaker 3>I'm you in pot'spom book day Break, ooky Ewan, thank you.

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<v Speaker 2>Turning to markets now, the sm P five hundred enters

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<v Speaker 2>the week on the cusp of entering a ball market,

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<v Speaker 2>a level which would see the index rise twenty percent

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<v Speaker 2>from it's October low. But Morgan Stanley does not expect

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<v Speaker 2>this stock rally to last because of a pullback in

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<v Speaker 2>corporate earnings. In fact, Morgan predicts urnings per share for

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<v Speaker 2>the SMP will drop sixteen percent this year. That's one

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<v Speaker 2>of the most bearish predictions among those tracked by Bloomberg.

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<v Speaker 2>It contrasts with bullish forecasts from the likes of Goldman Sachs,

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<v Speaker 2>which anticipates mild growth.

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<v Speaker 1>Well Nathan expect airline revenues to take off. The airline

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<v Speaker 1>industry's main lobbying body is doubling its estimate for global

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<v Speaker 1>net profit this year. The International Air Transport Association expects

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<v Speaker 1>profits to reach nine point eight billion dollars this year.

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<v Speaker 1>The association expects more than four point three billion passengers

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<v Speaker 1>to travel this year, and that's around ninety six percent

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<v Speaker 1>of twenty nineteen levels.

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<v Speaker 2>Well, one carrier in the US, Karen jet Blue, is

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<v Speaker 2>weighing its options. It's after a federal judge rule the

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<v Speaker 2>Northeast alliance between Jet Blue and American Airlines broke anti

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<v Speaker 2>trust law. The judge ordered the pair to dissolve the

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<v Speaker 2>arrangement within thirty days. We caught up with Jet Blue

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<v Speaker 2>CEO Robin Hayes. He talked about a possible problem this

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<v Speaker 2>busy summer travel season.

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<v Speaker 11>The biggest challenge that we face in the United States

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<v Speaker 11>really is air traffic controller staffing, and the FAA has

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<v Speaker 11>said that air traffic controllers in New York are down

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<v Speaker 11>to fifty four percent of what they need and as

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<v Speaker 11>a result of that, we've already had to cut.

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<v Speaker 2>Flights Jed Blue CEO Robin hayespoke with Bloomberg from the

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<v Speaker 2>sidelines of the IATA Annual General Meeting in istanbul Well Nathan.

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<v Speaker 1>Apple is poised to unveil a long rumored headset today.

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<v Speaker 1>While no product will ever live up to the iPhone,

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<v Speaker 1>the headset has the potential to usher in a new era.

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<v Speaker 1>I could have kicked off this shift to a different

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<v Speaker 1>interface that up ends how people work, play games, and

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<v Speaker 1>entertain themselves. It's also a risky endeavor that could backfire

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<v Speaker 1>for Apple. Mixed reality headsets are still a nason field,

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<v Speaker 1>and many people are hesitant to wear a computer on

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<v Speaker 1>their face. The Apple device also will have design quirks,

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<v Speaker 1>such as an external battery pack and a price tag

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<v Speaker 1>of roughly three thousand dollars.

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<v Speaker 2>Finally, Karen, financial professionals have a warning for their employers.

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<v Speaker 2>Don't ask me to come into the office more often,

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<v Speaker 2>or I'll quit. Bloomberg's latest Markets Life Pulse survey finds

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<v Speaker 2>about one in two people who work in finance would

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<v Speaker 2>change jobs or already have if their managers required them

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<v Speaker 2>to spend more time in the workplace. More than half

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<v Speaker 2>of responded Star poll globally prefer a hybrid arrangement. Only

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<v Speaker 2>about twenty percent actually favor working from the office. And

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<v Speaker 2>it's now time to take a look at some of

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<v Speaker 2>the other stories making news in New York and around

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<v Speaker 2>the world with Bloomberg's Michael Barr.

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<v Speaker 3>Good morning, Michael, Good morning, Nathan.

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<v Speaker 4>Russia says it thwarted a large Ukrainian attack in the

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<v Speaker 4>eastern province of Dunesk, though it's unclear if this was

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<v Speaker 4>the start of a Ukrainian counter offensive. Russian Defense Ministry

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<v Speaker 4>spokesman igor Kannakenshkov, through a translator, thanks all due.

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<v Speaker 3>Brat you nicky that neils them.

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<v Speaker 12>The enemy did not achieve its tasks. It had no

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<v Speaker 12>success as a result of capable and calculated actions of

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<v Speaker 12>the Group of Forces East. The Ukrainian army suffered losses

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<v Speaker 12>of more than two hundred fifty people, sixteen tanks, three

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<v Speaker 12>armored personnel carriers, and twenty one armored vehicles.

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<v Speaker 4>Ukraine did not comment assessana plane that was headed to

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<v Speaker 4>Long Island, New York crashed in Virginia. The wayward plane

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<v Speaker 4>flew over restricted airspace. In Washington, DC, the Capitol and

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<v Speaker 4>White House were briefly placed on high alert and f

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<v Speaker 4>sixteen jet hit supersonic speeds to reach the unresponsive pilot

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<v Speaker 4>of the Cessna. The F six Singh caused a sonic

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<v Speaker 4>boom over the Washington, DC area. The private plane ended

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<v Speaker 4>up crashing over mountainous terrain near Montebello, Virginia. No survivors

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<v Speaker 4>were found at the wreckage. A small Cessena departed from

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<v Speaker 4>Tennessee headed to McArthur Airport in Iceland. Hollywood is a

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<v Speaker 4>step closer to resolving one of its labour issues. Bloomberg's

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<v Speaker 4>Dan Schwartzmann reports.

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<v Speaker 13>The Director's Guild of America has reached a tentative agreement

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<v Speaker 13>on a new contract with the Alliance of Motion Picture

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<v Speaker 13>and Television Producers, one of the unions that represents Hollywood studios.

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<v Speaker 13>The deal will include a five percent way increase in

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<v Speaker 13>the first year, a four percent increase in year two,

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<v Speaker 13>with the three and a half percent raise in the

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<v Speaker 13>third year. The agreement also says that generative AI will

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<v Speaker 13>not be allowed to replace humans. This deal could be

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<v Speaker 13>used as a benchmark as other industry unions look to

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<v Speaker 13>finalize their contracts. The agreement will be submitted to the

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<v Speaker 13>Director's Guild of America National Board at a meeting on Tuesday.

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<v Speaker 13>Dan Schwarzman Bloomberg Radio. Prince Harry's battle with the British

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<v Speaker 13>press is headed for a showdown in a London court

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<v Speaker 13>room this week with the publisher of the Daily Mirror.

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<v Speaker 13>Harry is scheduled to testify in the High Court after

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<v Speaker 13>his lawyer presents opening statements today in his case alleging

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<v Speaker 13>the Mirror unlawfully snooped on him. He'll be the first

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<v Speaker 13>member of the British royal family to testify in court

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<v Speaker 13>in more than a century. Global News twenty four hours

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<v Speaker 13>a day, powered by more than twenty seven hundred journalist

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<v Speaker 13>nanailists in over one hundred and twenty countries. On Michael Barr,

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<v Speaker 13>This is.

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<v Speaker 3>Bloomberg, Nathan, Thank you, Michael.

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<v Speaker 2>Time now for our Bloomberg Sports date. Good morning, John

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<v Speaker 2>Stan Shout.

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<v Speaker 4>Good morning. Eighth.

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<v Speaker 5>At terrific Game two the NBA Finals in Denver, both

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<v Speaker 5>the Heat and the Nuggets shot it well. Miami made

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<v Speaker 5>almost half of its three pointers, Denver over fifty percent

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<v Speaker 5>over all. Miami up by eleven in the first quarter

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<v Speaker 5>and then down by fifteen, and Denver was up eight

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<v Speaker 5>starting the fourth quarter. They were thirty seven and one

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<v Speaker 5>this season with that big of lead, but Miami went

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<v Speaker 5>from down eight to up twelve. Nuggets then got it

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<v Speaker 5>down to three. Miami hung on to win one eleven

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<v Speaker 5>one oh eight. Denver had won its last seven playoff games.

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<v Speaker 5>With nine to zero at home, they got another big

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<v Speaker 5>game from Nicola jok It's forty one points, though no

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<v Speaker 5>triple double this time. He had only four assists and

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<v Speaker 5>he had five turnovers. The series title won. Game three

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<v Speaker 5>is Wednesday in Miami. Yankees and Dodgers scoreless until the seventh.

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<v Speaker 5>In eight pitcher's duel between Domingo Herman and LA rookie

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<v Speaker 5>Bobby Miller, Yanks scratched across runs in the seventh and eighth,

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<v Speaker 5>and then the rookie was up with the ninth.

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<v Speaker 2>And the lefty ferguson to the plee swinging a deep

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<v Speaker 2>shot left field, backing up his outman.

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<v Speaker 3>He's watching it.

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<v Speaker 5>It is gode the home run.

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<v Speaker 10>Anthony Vopie goest yard into left field.

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<v Speaker 13>It hits the bleachers, a two run shot, and some

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<v Speaker 13>night didn't insurance for the Yankees.

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<v Speaker 3>Wfan Yx won four to one.

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<v Speaker 5>They went four and two on the road ship the

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<v Speaker 5>Mets homestand had that sweep of the Phillies, but then

0:10:17.920 --> 0:10:21.520
<v Speaker 5>they got swept over the weekend by Toronto, who finished

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<v Speaker 5>the sweep winning six to four on a Brandon belt

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<v Speaker 5>to run home run seventh any French Opendovak Djokovic into

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<v Speaker 5>the quarterfinal, fourteenth in a row for him in Paris.

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<v Speaker 5>Victor Hoblin won the Memorial Golf in Ohio in a playoff,

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<v Speaker 5>and twenty year old Rose Zang, the winner of every

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<v Speaker 5>major amateur tournament, won the LPGA in New Jersey and

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<v Speaker 5>her pro debuts dashedward.

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<v Speaker 3>Bloomberg Sports.

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<v Speaker 6>From coast to coast, from New York to San Francisco,

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<v Speaker 6>Boston to Washington, DC, nationwide on siriusxam, the Bloomberg Business

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<v Speaker 6>app in Bloomberg dot com.

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<v Speaker 3>This is Bloomberg Daybreak. Good morning. I'm Nathan Hager.

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<v Speaker 2>We head into a new trading week, a little bit

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<v Speaker 2>more than a week before the next Federal Reserve decision,

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<v Speaker 2>with the S and P five hundred on the cusp

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<v Speaker 2>of a bull market and oil prices surging this morning

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<v Speaker 2>after Saudi Arabia announced it'll cut production by another million

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<v Speaker 2>barrels a day, following the OPEC plus production cut from

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<v Speaker 2>earlier this year, let's get this trading week started. We're

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<v Speaker 2>joined by Dennis Gartman, the former publisher of the Gartment Letter,

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<v Speaker 2>now chairman of the University of Akron Endowment Investment Committee. Dennis,

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<v Speaker 2>good morning. I know you've been a little bit more

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<v Speaker 2>moderately bullish on this market after calling a bear market

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<v Speaker 2>for just about a year and a half. Now, with

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<v Speaker 2>the S and P where it is right now, can

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<v Speaker 2>we call this a new bowl?

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<v Speaker 14>We have to be very careful because if you take

0:11:43.440 --> 0:11:45.440
<v Speaker 14>a look at the S and P, what ten of

0:11:45.440 --> 0:11:47.679
<v Speaker 14>the stocks, A handful of the stocks have been what

0:11:48.480 --> 0:11:52.280
<v Speaker 14>almost up ninety percent of the valuation, they've about ten

0:11:52.320 --> 0:11:54.560
<v Speaker 14>percent over the course of the past year, and the

0:11:54.559 --> 0:11:56.760
<v Speaker 14>other four hundred ninety stocks are down on the year.

0:11:56.800 --> 0:11:59.199
<v Speaker 14>Out of the S and P five hundred, so you

0:11:59.320 --> 0:12:02.800
<v Speaker 14>have to be careful. This market, as they commonly say,

0:12:02.880 --> 0:12:06.079
<v Speaker 14>has bad breadth, so be careful out there. But nonetheless,

0:12:06.080 --> 0:12:08.640
<v Speaker 14>it's it keeps making new highs. If you just if

0:12:08.640 --> 0:12:11.839
<v Speaker 14>you're buying the triple queues, the or any of the

0:12:12.240 --> 0:12:15.559
<v Speaker 14>broad indices, you've done fine. But all of your evaluation

0:12:15.640 --> 0:12:18.520
<v Speaker 14>has been incorporated in just a handful of stocks. So

0:12:19.080 --> 0:12:22.040
<v Speaker 14>it's not the it's not the healthiest of all markets,

0:12:22.040 --> 0:12:23.880
<v Speaker 14>but nonetheless it seems to be a bull market.

0:12:24.280 --> 0:12:27.640
<v Speaker 2>Do you think that the growth trade, some of the

0:12:27.679 --> 0:12:32.160
<v Speaker 2>moves that we're seeing into big tech stocks has gotten

0:12:32.280 --> 0:12:34.600
<v Speaker 2>a little bit crowded or does it have further to run.

0:12:35.200 --> 0:12:39.320
<v Speaker 14>I'm not sure it's crowded, but it's certainly overdone. Buying

0:12:39.360 --> 0:12:43.040
<v Speaker 14>the n video what several hundred times annual sales is

0:12:43.080 --> 0:12:45.960
<v Speaker 14>a little bit beyond Mike can I can't understand it.

0:12:46.000 --> 0:12:48.760
<v Speaker 14>And as my good friend Gary Shilling once said, markets

0:12:48.800 --> 0:12:51.000
<v Speaker 14>can remain illogical far longer than you or I can

0:12:51.040 --> 0:12:53.920
<v Speaker 14>remain solvent. A lot of people are short. I wouldn't

0:12:53.960 --> 0:12:55.880
<v Speaker 14>be short of those stocks, but I would I clearly

0:12:55.880 --> 0:12:57.520
<v Speaker 14>would not be a buyer of Nvidia. I would not

0:12:57.559 --> 0:12:59.160
<v Speaker 14>be a buyer of Microsoft. I would not be a

0:12:59.160 --> 0:13:01.760
<v Speaker 14>buyer of the high tech. Owning some of the banks

0:13:01.760 --> 0:13:06.520
<v Speaker 14>makes sense, Owning some of the manufacturers make sense. Maybe

0:13:06.520 --> 0:13:10.120
<v Speaker 14>even owning some retail makes sense. But owning the high

0:13:10.120 --> 0:13:13.160
<v Speaker 14>tech stocks that have been on such a tear to

0:13:13.200 --> 0:13:15.200
<v Speaker 14>the upside, I think that's senseless.

0:13:15.559 --> 0:13:18.560
<v Speaker 2>Does it make sense to get further breadth into this market?

0:13:18.559 --> 0:13:21.280
<v Speaker 2>When we get calls from the likes of Andrew Sheets

0:13:21.280 --> 0:13:24.360
<v Speaker 2>over at Morgan Stanley last night saying that we could

0:13:24.440 --> 0:13:28.280
<v Speaker 2>see a sixteen percent earnings per share cut for the

0:13:28.360 --> 0:13:30.319
<v Speaker 2>S and P five hundred that could bring this rally

0:13:30.360 --> 0:13:30.839
<v Speaker 2>to an end.

0:13:31.679 --> 0:13:34.199
<v Speaker 14>Well, I think that's a little bit too pessimistic on

0:13:34.880 --> 0:13:36.800
<v Speaker 14>my part or on his part. I think he's probably

0:13:37.080 --> 0:13:39.400
<v Speaker 14>ill advised to make that kind of a statement. I

0:13:39.480 --> 0:13:42.199
<v Speaker 14>think earnings are actually bottoming out rather than topping out,

0:13:42.240 --> 0:13:44.280
<v Speaker 14>and I think they'll probably be higher in the four

0:13:44.360 --> 0:13:46.559
<v Speaker 14>hundred and ninety stocks that haven't done very well over

0:13:46.600 --> 0:13:49.000
<v Speaker 14>the course of the past year, so I think earnings

0:13:49.000 --> 0:13:51.400
<v Speaker 14>are going to do better. The big question this morning

0:13:51.480 --> 0:13:55.360
<v Speaker 14>is we Opek having cut or Saudi Arabia having cut

0:13:55.360 --> 0:13:59.439
<v Speaker 14>a million barrels of krude oil out of its production. Now,

0:13:59.640 --> 0:14:01.800
<v Speaker 14>Saudi Arabia is going to be producing nine million barrels

0:14:01.840 --> 0:14:03.840
<v Speaker 14>of crude oil a day. The United States is producing

0:14:03.880 --> 0:14:06.480
<v Speaker 14>what twelve and a half million barrels. It's pretty amazing

0:14:06.480 --> 0:14:08.360
<v Speaker 14>to think that we're producing two and a half to

0:14:08.400 --> 0:14:10.520
<v Speaker 14>three and a half million barrels of more per day

0:14:10.520 --> 0:14:13.280
<v Speaker 14>than Saudi Arabia, making US far and away the largest

0:14:13.280 --> 0:14:15.280
<v Speaker 14>producer of crude oil. That I think is the big

0:14:15.320 --> 0:14:15.960
<v Speaker 14>news of the day.

0:14:16.320 --> 0:14:19.800
<v Speaker 2>Well, what does that dynamic mean for oil prices going forward?

0:14:19.800 --> 0:14:19.960
<v Speaker 3>Here?

0:14:19.960 --> 0:14:24.200
<v Speaker 2>If we do continue to see the US leading in

0:14:24.600 --> 0:14:28.320
<v Speaker 2>crude production, does that put a floor on oil prices

0:14:28.400 --> 0:14:30.320
<v Speaker 2>or could we see more of a rally there.

0:14:31.160 --> 0:14:32.920
<v Speaker 14>We're probably going to end up seeing more of a rally.

0:14:32.960 --> 0:14:36.200
<v Speaker 14>It's really quite impressively. One thing that has bothered me

0:14:36.240 --> 0:14:38.160
<v Speaker 14>about the oil market is that the term structure of

0:14:38.200 --> 0:14:42.120
<v Speaker 14>the futures market has been backwardated, has lost its baquidation

0:14:42.200 --> 0:14:44.720
<v Speaker 14>excuse me, and has gone to a very slight tentangle

0:14:44.720 --> 0:14:47.680
<v Speaker 14>in the front end that usually is bearish. But nonetheless,

0:14:47.760 --> 0:14:50.280
<v Speaker 14>this cut is a bit of surprising. I think the

0:14:50.320 --> 0:14:53.440
<v Speaker 14>Saudis mean it. I think they intend to stand by

0:14:53.440 --> 0:14:56.480
<v Speaker 14>that nine million barrel production number instead of ten million

0:14:56.480 --> 0:14:58.960
<v Speaker 14>barrels of crude oil per day. So probably we're looking

0:14:59.000 --> 0:15:01.360
<v Speaker 14>at WTI making its way up to eighty five dollars

0:15:01.440 --> 0:15:04.040
<v Speaker 14>a barrel. We're probably going to see Brent make its

0:15:04.080 --> 0:15:06.360
<v Speaker 14>way up to ninety dollars a barrel. I think the

0:15:06.400 --> 0:15:10.000
<v Speaker 14>ball market continues there. It's a little surprising, but nonetheless

0:15:10.000 --> 0:15:12.000
<v Speaker 14>this is a surprising cut, and I think the Saudi's

0:15:12.080 --> 0:15:12.360
<v Speaker 14>mean it.

0:15:12.880 --> 0:15:14.600
<v Speaker 2>We have about a minute left here now that we

0:15:14.640 --> 0:15:18.640
<v Speaker 2>have resolution with the debt ceiling in Washington, d C.

0:15:18.880 --> 0:15:22.560
<v Speaker 2>What's the market impact there? What could it mean for treasuries.

0:15:22.880 --> 0:15:26.240
<v Speaker 14>Well, it's a good thing that the idea of default

0:15:26.240 --> 0:15:29.880
<v Speaker 14>has been taking off the blackboard completely. That's a step forward,

0:15:30.160 --> 0:15:31.840
<v Speaker 14>and I think it does a lot of the Federal

0:15:31.840 --> 0:15:36.240
<v Speaker 14>Reserve Bank the chance to the new term skip the

0:15:36.320 --> 0:15:39.800
<v Speaker 14>raising rates at the next meeting this week or next week.

0:15:40.120 --> 0:15:42.920
<v Speaker 14>So I think that that's probably a relatively good thing.

0:15:42.960 --> 0:15:44.840
<v Speaker 14>But we're going to end up seeing at the short

0:15:44.960 --> 0:15:48.320
<v Speaker 14>end of the curve slightly higher rates. I own a

0:15:48.360 --> 0:15:50.160
<v Speaker 14>lot of two years. I'm comfortable owning a lot of

0:15:50.200 --> 0:15:52.760
<v Speaker 14>two years. I wish I'd waited to buy them until

0:15:52.840 --> 0:15:56.080
<v Speaker 14>today or tomorrow, but nonetheless, I'm comfortable owning a lot

0:15:56.080 --> 0:15:58.960
<v Speaker 14>of two years. At this point, the Yeld curve seems

0:15:58.960 --> 0:16:02.440
<v Speaker 14>to be wanting to go to an even larger inversion,

0:16:03.040 --> 0:16:04.560
<v Speaker 14>and I think at the long end of the curve,

0:16:05.720 --> 0:16:08.640
<v Speaker 14>avoiding purchases and beyond the five years and probably makes

0:16:08.640 --> 0:16:09.600
<v Speaker 14>sense to me for a while.

0:16:11.320 --> 0:16:14.360
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