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Speaker 1: Welcome to the Bloomberg Surveillance Podcast. I'm Tom Keane along

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Speaker 1: with Jonathan Ferroll and Lisa brown Witz Jailey. We bring

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Speaker 1: you insight from the best and economics, finance, investment, and

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Speaker 1: international relations. Find Bloomberg Surveillance on Apple podcast, Suncloud, Bloomberg

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Speaker 1: dot Com, and of course on the Bloomberg terminal. Right now,

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Speaker 1: and this is a joy. Kathy Jones joins his chief

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Speaker 1: fixed income Strategies at Charles Swab. John and Lisa got

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Speaker 1: some sixty thou foot questions. Kathy, I want to go

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Speaker 1: to the scrub retail investor. I have a Vanilla total fund.

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Speaker 1: It's got sovereign credit in it. It's a blended portfolio.

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Speaker 1: Forget about the yield. On a price basis, it's down

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Speaker 1: five percent. Analyzed it's down twelve percent for for retail.

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Speaker 1: That feels like a bond bear market to me. Are

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Speaker 1: we on the cusp of a bond bear market? Well,

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Speaker 1: I'd say we're in sort of a mini bond bear

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Speaker 1: market already, because, as you say, it very unusual to

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Speaker 1: get draw down in an excessive two or three percent

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Speaker 1: in the bond market and kind of writ large. So

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Speaker 1: when you're down five percent, it's certainly probably qualifies as

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Speaker 1: a bond bear market. Now we're not in the campus

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Speaker 1: says this is kind of regime change and we're going

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Speaker 1: into a ten year bond bear market or even perhaps

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Speaker 1: a one year bond bear market. But we've certainly seen

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Speaker 1: a significant define now as you would expect when you

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Speaker 1: start to see rates move the way the half Lisa

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Speaker 1: under see. If a level to a bond bear market

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Speaker 1: is defined by when you open your monthly statements three

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Speaker 1: months in a row, in itself, that's a bond bear market, right,

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Speaker 1: And the question is whether that's a self fulfilling, self

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Speaker 1: fulfilling prophecy, whether people see the red and they withdraw

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Speaker 1: more cash, or whether some people say, you know what,

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Speaker 1: we want to hide out in some of these securities,

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Speaker 1: especially if we are concerned about the consequence of rate

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Speaker 1: hikes and cathy. That has been part of your thesis.

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Speaker 1: How how much are you continuing to double down on

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Speaker 1: that duration call. Yeah, we've had a short duration call

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Speaker 1: for you know, really a long time, probably a couple

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Speaker 1: of years. Now we're actually starting to um advocate taking

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Speaker 1: on a bit more duration as yields move up. So

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Speaker 1: one of the things we see is is you get

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Speaker 1: into a rate hike cycle, the yield curve flattens, you

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Speaker 1: get tues tents below about fifty basis points, and you're

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Speaker 1: probably pretty near the peak in ten years. So as

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Speaker 1: we get into the rate HiPE cycle and we see

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Speaker 1: that yield curve flattening, we're actually advocating starting to take

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Speaker 1: out a little bit more duration, not not jump into

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Speaker 1: thirty year rounds here, but to start to add to

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Speaker 1: that duration because there's nearly the market's gone a long

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Speaker 1: way already to build in this rate hiking cycle. Um,

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Speaker 1: we're already saying financial conditions start to tighten a little bit.

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Speaker 1: So we're on the verge of probably hitting at the

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Speaker 1: at least an interim peak. All right, in a new

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Speaker 1: interim peak. But can you sit on that for just

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Speaker 1: a minute. We had that ten uere yield now at

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Speaker 1: the highest level is going back to late one nine.

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Speaker 1: This is a near term peak and interim peak. But

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Speaker 1: do you think that this is the peak of the cycle. Um,

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Speaker 1: Probably from this cycle if the FAN and the other

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Speaker 1: central banks follow through on what they're saying they're going

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Speaker 1: to do. So we think this this cycle is pretty

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Speaker 1: powerful because it's glowly synchronized. The fan is using both

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Speaker 1: quantitative tightening and rate hikes to bring down inflation into

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Speaker 1: slow the economy. Fiscal stimulus is already a thing of

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Speaker 1: the past and will fade. So as we look out

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Speaker 1: over the next year or so, which is probably defined

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Speaker 1: as the cycle here, we think that we're probably fairly

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Speaker 1: close to the peak and longer term meals. Cathy, you

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Speaker 1: point to some data economic data showing that actually you

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Speaker 1: are starting to see a slowdown in the pace of

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Speaker 1: the economy. Can you give us a sense of the

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Speaker 1: slowdown in the economy versus a slowdown in inflation and

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Speaker 1: whether it makes a different for the two. Sure. So,

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Speaker 1: typically some of the signals that we watch are like

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Speaker 1: the global pm I, they're starting to roll over. We're

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Speaker 1: seeing personal consumption expenditures start to ease up, which isn't

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Speaker 1: too surprising because the fiscal policy boosts with God is waning,

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Speaker 1: and those are indicators that usually precede the peakan inflation.

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Speaker 1: So we all know inflations of lagging indicator. And so

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Speaker 1: there's also the problem that as oil prices move up,

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Speaker 1: a gasoline prices move up into Rhodes consumer spending power,

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Speaker 1: so our our thesis is that we're getting into a

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Speaker 1: slowing economy as the year plays out, and as a

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Speaker 1: lagging indicator, inflation will come down. As a result, it's

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Speaker 1: non linear when we come from seven percent Kathy Jones

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Speaker 1: down on inflation is as widely presumed. What's a single

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Speaker 1: point trip point for psychology under four? You know, I'm

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Speaker 1: a think so, although I will point out that certainly

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Speaker 1: the market based expectations for inflation haven't really moved up

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Speaker 1: that much on the retail side, or when we look

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Speaker 1: at say the University of Michigan Consumer Sentiment Survey, um,

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Speaker 1: those have those have become more elevated, although really the

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Speaker 1: long term outlook isn't for much more than three percent.

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Speaker 1: But I say the trip point in terms of psychology

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Speaker 1: in the market, if I hadn't name it would be

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Speaker 1: gasoline prices. Now, people are very sensitive to what a

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Speaker 1: cost to fill up the tank every every week or whenever.

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Speaker 1: I don't know. I don't drive, so, um, it's not

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Speaker 1: an issue for me. But you know, people are very

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Speaker 1: sensitive to gasoline prices at a course food prices. So

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Speaker 1: if we start to see those gasoline prices come down

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Speaker 1: later in the year, I think that that will change

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Speaker 1: some of the inflation fears. At least. It's the animal

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Speaker 1: that drives around to hit Kathy, which and the irony.

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Speaker 1: I grew up in New York City, so I relate

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Speaker 1: to that statement. And yet I didn't get you're so

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Speaker 1: rich now you drive out to go skiing on the

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Speaker 1: weekend until not someone I don't get to do that,

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Speaker 1: So d hold on a second. I learned how to drive,

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Speaker 1: just to be very clear, because I went to farther

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Speaker 1: North Dakota and I got my license after begging the

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Speaker 1: person on the fifth time. You bank the person feeling,

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Speaker 1: let's not get it if you want to disclose, No,

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Speaker 1: I don't. I don't, but I do. I thank you quickly.

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Speaker 1: Kathy John's John Swab, Kathy, thank you very much. Jim

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Speaker 1: Cart joins US now fixed income most Stanley Investment managed.

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Speaker 1: That was a trick question. So Jim, fifty basis point

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Speaker 1: right high? Can march? You actually think we should say

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Speaker 1: this seriously? Why? Well? You know, I think, well, first

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Speaker 1: of all, thank you for having me on your show. Yes,

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Speaker 1: so I do think that we should take it seriously

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Speaker 1: because what we're starting to see is that inflation pressures

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Speaker 1: are starting to rise more precipitously. We have another inflation

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Speaker 1: number coming out on Thursday. We've recently had, I know,

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Speaker 1: for some technical quirky reasons, and stronger payroll report. Right now,

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Speaker 1: what central banks are worried about, and this is the

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Speaker 1: one job central banks all around the world all have

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Speaker 1: in common, which is fighting inflation, is that you're starting

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Speaker 1: to get a steeper Phillips curve and you're getting wages

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Speaker 1: starting to move higher. That's allowing companies to pass through

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Speaker 1: higher prices. What that does, and this is the important point,

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Speaker 1: is that it un anchors inflation expectations, which means that

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Speaker 1: corporations are therefore more likely to more freely raised prices

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Speaker 1: in the future. Consumers are willing to pay those prices,

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Speaker 1: and that's a spiral inflation that we're talking about. So

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Speaker 1: if if we start to move into a situation where

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Speaker 1: the Fed starts to really take this very very seriously

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Speaker 1: and their concerned, I can't rule out a fifty basis

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Speaker 1: point rate hike. It's not the base case, but I

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Speaker 1: think we should take it very seriously. Jim, what's your

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Speaker 1: dynamic on what foreigners will do given higher yields across

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Speaker 1: all of the Morgan Stanley yields Space two. Foreigners go

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Speaker 1: into a voracious frenzy when they see higher yields? Do

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Speaker 1: they get afraid and wait? Well, how do they respond?

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Speaker 1: I think it's the latter. I think when yields are rising,

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Speaker 1: they get afraid and weight. Once yields settled down into

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Speaker 1: a range and people are comfortable with that, that's when

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Speaker 1: you start to see the buying. So when when we

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Speaker 1: see these yield rises, we do think that there are

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Speaker 1: some limitations asked to how high these yields can go,

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Speaker 1: as it feeds back into financial conditions, and it feeds

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Speaker 1: back into growth, and it impacts other asset prices like

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Speaker 1: equities and things like that and credit. However, when you

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Speaker 1: start to see these types of moves, they become somewhat unbounded.

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Speaker 1: So if we're looking at the tenure treasury at one

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Speaker 1: point nine, well, what's to stop it from going to

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Speaker 1: two percent or two or to two point oh five.

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Speaker 1: I think people would be more comfortable with it above

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Speaker 1: two percent to say, well, maybe now is the time

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Speaker 1: to start to buy. But when we're making that journey

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Speaker 1: up towards two percent, people tend to get very, very

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Speaker 1: nervous and want to, you know, seek out short protection.

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Speaker 1: Let me translate that, folks to a question for the

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Speaker 1: Great Jim Karen. Is our journey that we're heading for

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Speaker 1: a bond bear market? Well, I, you know, I think

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Speaker 1: that we're I think that we're in it right now. UM.

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Speaker 1: I think that we are making an adjustment higher and yields.

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Speaker 1: But I do think that it probably stops somewhere above

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Speaker 1: two percent, like around two point to five, um, you know,

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Speaker 1: for for this year. And the reason I say that

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Speaker 1: is that right now, what we're seeing is that these

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Speaker 1: rises and yields are now starting to have a negative

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Speaker 1: feedback impact on credit spreads. Credit spreads are starting to

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Speaker 1: widen right now. That's going to create more anxiety in

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Speaker 1: the bond markets. That can also lead to lower equity prices.

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Speaker 1: And effectively, what I'm really saying is that we start

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Speaker 1: to get a tightening of financial conditions that has a

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Speaker 1: negative feedback loop into economic activity. And we're already seeing

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Speaker 1: global p m I s starting to roll over in

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Speaker 1: some signs of some slowing. So all of this does

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Speaker 1: have a stopping point, but it may not be right here.

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Speaker 1: It may be a little higher and yield a little

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Speaker 1: above two percent before we get there in the tenure, Jim,

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Speaker 1: the argument from a lot of credit investors is that

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Speaker 1: spreads haven widened so much to where they are to

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Speaker 1: where compared to where they were pre pandemic, and frankly,

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Speaker 1: a lot of comp these have immunized their balance sheets.

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Speaker 1: They've borrowed for such a long time that they don't

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Speaker 1: need to borrow any time soon. Is this signal from

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Speaker 1: credit really all that concerning that, given the fact that

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Speaker 1: you have highly capitalized companies. Yeah, Look, I think that's

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Speaker 1: a great point. I don't think that there's a credit

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Speaker 1: default risk that's going to run through the markets, you know.

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Speaker 1: I think that incorporation, you know, GDP is still supposed

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Speaker 1: to be pretty good this year. Earnings are you know,

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Speaker 1: are decent as a result of that. So therefore, I

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Speaker 1: don't think default risk is very very high. However, there

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Speaker 1: is an all in yield component to credit. These are

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Speaker 1: still bonds after all. So when ye'll start to rise,

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Speaker 1: we're already seeing the year to date returns and many

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Speaker 1: of these indices they're you know, they're down um as

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Speaker 1: they can. As the zeals continue to rise, you start

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Speaker 1: not to see the inflows that you saw in the past,

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Speaker 1: you start to see people pulling away from the asset class.

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Speaker 1: And that's why I see this as a natural adjustment

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Speaker 1: higher and yield. It's not a default risk issue at

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Speaker 1: the moment. So to your point, Lisa, you know, yes,

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Speaker 1: you know, interest coverage costs are low, corporations have better balance,

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Speaker 1: you'd they have more cash, they've termed out there debt.

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Speaker 1: All of these things are good. I think corporate America

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Speaker 1: can handle higher yields. I don't think this is a

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Speaker 1: default risk issue, but I do think it's an all

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Speaker 1: in total return issue when it comes to an adjustment

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Speaker 1: higher and yields, and this can drive people away from

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Speaker 1: the asset class for the time being. Given the fact

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Speaker 1: that you think that there's more to come, are you

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Speaker 1: hiding out in a lot of cash right now? So

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Speaker 1: so we do have higher levels of cash, and there

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Speaker 1: are also other places that we can look at right

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Speaker 1: so areas for example, like bank loans. I know most

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Speaker 1: things are fully valued these days, but here's an index.

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Speaker 1: It's trading still below part at ninety nine. You get

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Speaker 1: good yield per unit of duration. Um. You know, this

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Speaker 1: is a sector that is a good place to hang

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Speaker 1: out at this current point. In the cycle as yields

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Speaker 1: are rising. The other is that we start to look

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Speaker 1: for deeper value. Where do we have higher real yields?

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Speaker 1: Where are we in places where we're being compensated to

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Speaker 1: take the risk. And in some of these places it's

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Speaker 1: short end front dated, you know, short short end emerging

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Speaker 1: markets where many of these central banks are way ahead

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Speaker 1: late in the cycle of hiking interest rates. They have

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Speaker 1: the highest real yields around the world, the highest yield

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Speaker 1: for U bit of credit rating. These are areas that

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Speaker 1: we also think our opportunities. So I'm not just saying

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Speaker 1: it's about defense. We can play a little bit of

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Speaker 1: offense here too, if we watch the valuations. And that's

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Speaker 1: what I recommend, and that's what we're doing in our portfolios.

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Speaker 1: H Wilson as Owhite Countermerican Standing Investment Management. I think

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Speaker 1: everybody knows I'm a huge, huge fan of one Robert Doll.

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Speaker 1: He's chief investment officers crossmart Global Investments. But over the many,

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Speaker 1: many decades he's been a resilient bull. And then December happened,

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Speaker 1: and Bob Doll in December said, wait a minute, this

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Speaker 1: is a moment where the usual Bob Doll changes. That

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Speaker 1: December Doll call was absolutely stunning. Bob Doll, Are you

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Speaker 1: back in the market after a ten p SPX correction?

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Speaker 1: Our our target tom as we said a few minutes ago.

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Speaker 1: Who would have thunk we would have gotten it so fast?

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Speaker 1: So I'm pretty neutral now. I think we're gonna have

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Speaker 1: a very volatile but trendless market. Earnings tail winds, valuation headwinds.

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Speaker 1: That's the big change. You guys have been talking about it.

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Speaker 1: The FED is made of hawkish pivot and the market

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Speaker 1: is slowly waking up to that, especially bonds. Let's go

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Speaker 1: see f a factor analysis right now, Bob Doll. What

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Speaker 1: matters individual stock selection? Sector selection? Is it about international sales?

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Speaker 1: What matters in stock selection? Yes, all the above. Look,

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Speaker 1: I think you have to be positioned for companies that

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Speaker 1: can produce the earnings and the cash flow and not

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Speaker 1: expect valuation improvement. In fact, I think the opposite. That

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Speaker 1: takes me more to value direction. I want to own

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Speaker 1: financials and a rising rate environment energy on a pullback,

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Speaker 1: I want to own that too. Because the world's demand

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Speaker 1: for oil is moving up and supply is somewhat curtailed,

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Speaker 1: so you're pretty much barished in everything. I mean, yes,

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Speaker 1: you've got pockets that you see value. But you pointed

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Speaker 1: out that equities, even though they're at performing bonds should

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Speaker 1: basically struggle to eke out a positive return for the year.

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Speaker 1: What does that mean in terms of your advice to

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Speaker 1: some of your clients. How do you arrange and deal

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Speaker 1: with the fact that you might expect no returns at

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Speaker 1: best this year? So for sure, rebalance. If you have

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Speaker 1: not rebalanced your equity waiting because of the gains in

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Speaker 1: the last few years, it is higher than your target,

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Speaker 1: bring it back to target at a minimum. That's the

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Speaker 1: first thing to do. The second is to make sure

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Speaker 1: your portfolio is not overly populated with these growth stocks

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Speaker 1: that have done so well over the last few years

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Speaker 1: until the last few months. You need to cut them

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Speaker 1: back something. You have to sell out of them. And

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Speaker 1: for goodness sake, if you've been totally in the US,

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Speaker 1: stand up, take a vow and do a little dollar

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Speaker 1: cost averaging outside the US where economies are picking up.

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Speaker 1: All right, we're in particular, Bob, I think that Europe

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Speaker 1: is probably not a bad place to be. I think

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Speaker 1: the emerging markets still have a challenge with China's credit problems,

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Speaker 1: so I would stay with developed markets. Does that break

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Speaker 1: can peripheral you? Let's worry you until Bobby in Italy

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Speaker 1: increase in our swere it's I think it's a signal

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Speaker 1: of exactly the theme valuation headwinds. When the supply or

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Speaker 1: the amount of bonds selling at negative interest rates dropped

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Speaker 1: sevent in six weeks, that tells you there's a change

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Speaker 1: of foot We need to pay attention. But if you've

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Speaker 1: been around the block a few times, I just wanted

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Speaker 1: do you think the central banks can pull off what

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Speaker 1: they're discussing over the same time together? Now you're onto it,

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Speaker 1: that's a very good question. I mean you're starting to

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Speaker 1: here at the periphery people talking about as they move

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Speaker 1: interest rates up, as companies struggle with supply shortages, labor shortages,

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Speaker 1: some cause pressures. Could we have a significant economic slowdown?

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Speaker 1: I sure hope not. I don't think so we're going

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Speaker 1: to debate that. I want to go to your Lehigh University,

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Speaker 1: every institution right now. I was having huge trouble trying

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Speaker 1: to figure out asset allocation. Do you look at the

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Speaker 1: hall march here away from basic common stock ownership is

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Speaker 1: constructive as a diversifier or should people get back on

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Speaker 1: board the good old all American stock market. Look, I

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Speaker 1: think stocks still have a long term place in portfolios

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Speaker 1: as the central piece of what you're doing. I think

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Speaker 1: bonds are going to be challenged for some times as

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Speaker 1: interest rates normalize. So if you can find alternatives that

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Speaker 1: have bond like returns, bond like volatility, but the interest

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Speaker 1: rate sensitivity, they're the kind of places you want to be.

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Speaker 1: Let me go all j Puloski on your John talks

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Speaker 1: to Mr Puloski a lot. He's huge on Pacific rim.

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Speaker 1: Can you be large on Pacific rim? Yes? I think

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Speaker 1: the Pacific RIM that serves still fast growing, albeit slowing

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Speaker 1: China and India, they're still good places to be. Needs

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Speaker 1: the world to open up for that to work. Some

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Speaker 1: what we're seeing in Hong Kong with China right now,

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Speaker 1: you're absolutely just gonna be a problem bub And I

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Speaker 1: just wonder what you've used are on that. We just

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Speaker 1: caught up with Dr Amisdowne from John's Help Kids, who

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Speaker 1: was discussing the difficulty that China would have opening cup.

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Speaker 1: I need to see something happened with supply chains, don't

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Speaker 1: we No question about it. And Uh, I heard that interview,

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Speaker 1: and you're right, it's it's legitimate to be concerned. Those

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Speaker 1: supply change have to open up. I think a year

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Speaker 1: from now we will solve a noticeable peace, but not

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Speaker 1: of all all of our supply chain problems. And that's

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Speaker 1: part of the inflation problem. It's part of companies not

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Speaker 1: being able to satisfy consumer demand. So we can solve

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Speaker 1: a few of those. That's good news, Bob. Find a question,

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Speaker 1: what would make you bullish? Uh? If you tell if

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Speaker 1: you told me that interest rates don't have to go up,

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Speaker 1: but I can't see how you can get there. We

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Speaker 1: have valuation headwinds when interest rates go up, pees come

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Speaker 1: down Pe where we were just two months ago. Not

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Speaker 1: appropriate for an environment where the Feds taking the punch

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Speaker 1: bowl away. But was fantastic to see you said on

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Speaker 1: a regular basis. I'm enjoying this boto of trust. Thank

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Speaker 1: you said, thank you, buddy. Now on the GOP and

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Speaker 1: really the state of Arkansas politics away from all that's

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Speaker 1: going on in is Washington. We need to note that

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Speaker 1: he's the most popular congressman in America Valentine's Day because

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Speaker 1: he is a Congressman of Romance, Arkansas. You come out

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Speaker 1: a little rock and go upbrought five to Romance, Arkansas.

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Speaker 1: Have you ever delivered an envelope to Romance, Arkansas, French

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Speaker 1: Hill with Valentine's Greetings? Well, you will want to know,

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Speaker 1: Tom King, that all of my wedding invitations were mailed

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Speaker 1: in Romance, Arkansas. So I'm a big believer in the

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Speaker 1: Post Office of Romance. And it's a it's a economic

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Speaker 1: magnet for lovers all over the nation. Jonathan Martin in

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Speaker 1: The New York Times six eight months ago had an

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Speaker 1: absolutely wonderful piece on the cauldron of GOP politics in Arkansas.

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Speaker 1: It is arguably the litmus test of the future of

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Speaker 1: the Republican Party. What has changed in the GOP debate

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Speaker 1: in your district in your state in the last six weeks.

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Speaker 1: When the last six weeks we're talking about redistricting in

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Speaker 1: my district, I lose part of Pulaski County, Tom, which

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Speaker 1: is metro little Rock, and I pick up an additional

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Speaker 1: rural county, Cleveburne County, which is next to two big

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Speaker 1: counties that I already have in that region. And I'd

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Speaker 1: say the party has become definitely more conservative as we

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Speaker 1: see democratic quorum courts out in those rural counties having

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Speaker 1: county judges run either as independence or switching to the

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Speaker 1: Republican Party. That's a major trend, all right, as we

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Speaker 1: helped Tom keene a Curry favor with his domestic situation.

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Speaker 1: I'm wondering from Valentine's Day, given the fact that prices

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Speaker 1: are going up, I mean, aside from that particular holiday,

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Speaker 1: how do you expect to address the fact that it

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Speaker 1: seems persistent. How do you expect to address the fact that, yes,

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Speaker 1: the president is leaning on the federal reserve, but there

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Speaker 1: is a legislative aspect to this. Leasa's I've as I've

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Speaker 1: said for many many appearances on this program and other programs,

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Speaker 1: we need to not be spending so much borrowed money

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Speaker 1: in such a continued pandemic manic manner. We need to

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Speaker 1: go back to pre pandemic spending priorities on the fiscal side,

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Speaker 1: while the Treasury withdrawals it's accommodation on its balance sheet

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Speaker 1: in terms of the amount of Treasury securities that it's buying,

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Speaker 1: and then slowly lifts interest rates. Those are two key

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Speaker 1: points I think to to lowering explationary expectations, Congressman, in fairness,

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Speaker 1: we are cutting spending that actually you're seeing this fiscal

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Speaker 1: drag that everyone's talking about news going down, and there

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Speaker 1: is a feeling that if the government does invest in

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Speaker 1: things like renewable energy and certain programs, we could avoid

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Speaker 1: some of the shocks that we're seeing currently with oil.

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Speaker 1: What's your view on that, Well, look, you look at

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Speaker 1: the Energy Information Agencies predictions for needed fossil fuel production,

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Speaker 1: electricity and pass between now, and you're not going to

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Speaker 1: produce that through renewables alone. It's not physically possible to

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Speaker 1: do that. We need to continue to replace our reserves

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Speaker 1: and increase our supply and fossil fuels, and I believe

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Speaker 1: sincerely that we should continue to invest in cheaper, more efficient,

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Speaker 1: more effective nuclear power in this country and around the

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Speaker 1: world in order to fuel the energy demands that both

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Speaker 1: industrial and consumer needs are projected to need over the

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Speaker 1: next twenty five to thirty years. The French show the

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Speaker 1: linkage here on a constructive job to report Friday with

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Speaker 1: a lot of amendments. We get that as wages up

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Speaker 1: and we've got the inflation report coming out on Thursday.

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Speaker 1: Tell me about near fully employed Arkansas, and this is

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Speaker 1: your wheelhouse as a former local banker. What is the

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Speaker 1: wage story you're hearing from business in Arkansas right now? Well, first,

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Speaker 1: we're about nine thousand jobs below February before the pandemic

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Speaker 1: tom in terms of employed ar Kansas. So that's a

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Speaker 1: key point. And I'm seeing wage pressure increase both at

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Speaker 1: the low end and the high end UH particularly in

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Speaker 1: healthcare for example. In your previous discussions this morning, you

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Speaker 1: talked a lot about low end working salaries going up

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Speaker 1: and being on pressure to go up. But we're seeing

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Speaker 1: that in the professional ranks, particularly in healthcare, where these

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Speaker 1: wage increases that we saw in the pandemic just to

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Speaker 1: get people to stay on the job. They're being embedded

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Speaker 1: into the system. So we're seeing wage increases in the

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Speaker 1: four and five percent range and higher. And I think

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Speaker 1: that's reflected in the nine percent producer price index that

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Speaker 1: we saw at the end of the year. Congressman, I

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Speaker 1: understand this a massive game this evening. Should I be

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Speaker 1: watching this one? You should watch Auburn Arkansas at Jonathan,

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Speaker 1: Come on, get with the program. Movies into the American basketball.

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Speaker 1: This is a this is Auburn, It's a team in

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Speaker 1: the South playing Arkansas, another team in the South and

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Speaker 1: playing basketball, and we're almost to thee for the Sweet sixteen.

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Speaker 1: This is what you need to watch. Comgressman, I'll try

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Speaker 1: it out. French show. Thank you have no idea the

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Speaker 1: morass of Southern basketball. You just hates hemp. This is

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Speaker 1: the Bloomberg Surveillance Podcast. Thanks for listening. Join us live

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Speaker 1: weekdays from seven to ten am Eastern on Bloomberg Radio

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Speaker 1: and on Bloomberg Television each day from six to nine

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Speaker 1: am for insight from the best in economics, finance, investment,

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Speaker 1: Tom Keene, and this is Bloomberg