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Speaker 1: You're listening to Taking Stock with Pim Fox and Kathleen

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Speaker 1: Hayes on Bloomberg Radio. Mondaliz no longer pursuing a combination

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Speaker 1: with her. She what a day for breaking news we

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Speaker 1: have had today from Apple and Caesar's Entertainment to now

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Speaker 1: Mondaliz can she joins us Bloomberg News Bloomberg Intelligence to

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Speaker 1: tell us we don't know too much yet. Can we

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Speaker 1: know that it was down at least ten percent? As

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Speaker 1: soon as that news came out postmarket, uh, mondely saying

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Speaker 1: it's discipplined with the outcome. What's going to happen in

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Speaker 1: this case? Yeah, Hi, Kathleen, Um, Yeah, today's news certainly

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Speaker 1: was a disappointment, certainly for investors who thought that combination

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Speaker 1: of her, she and Mondalez as powerful brands, would um,

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Speaker 1: you know, be a strong investment um. And they may

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Speaker 1: have had a good case there. I mean, they would

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Speaker 1: have a leading US share and a very attractive high

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Speaker 1: margin grocery category. Um. Without getting into the gory details,

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Speaker 1: I mean, we know that her, she is closely controlled

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Speaker 1: by the board and they were cool to the to

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Speaker 1: the bid her. She's got a strange uh characteristic about it.

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Speaker 1: Also in that a deal has to be approved by

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Speaker 1: the Attorney General of Pennsylvania. So there's really it's really

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Speaker 1: a tough company to acquire, and Mondale's I guess felt that,

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Speaker 1: you know, it had enough ways to to get around it. Um.

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Speaker 1: But investors, we're thinking that the deal was going to

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Speaker 1: get done based on how hers She was trading. So yeah,

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Speaker 1: it certainly could be a disappointment to hold as a Hershey, yeah,

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Speaker 1: what happens? I mean, but can anybody step in on

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Speaker 1: either side? Right? I mean, I know there's a lot

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Speaker 1: of technical, technical and difficult things with hershe Will anybody

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Speaker 1: else step up? Now? You know that's such a million

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Speaker 1: out of question with her She. I think they you

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Speaker 1: know that they think they've probably scared some people off

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Speaker 1: in terms of you know, trying to acquire it um

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Speaker 1: with Mondale. You know, I think it underscores its need

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Speaker 1: to pursue acquisitions to row. You know, it's it's it's

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Speaker 1: an emerging markets like China and some attractive markets, but

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Speaker 1: they're slowing down, and so it feels that it needs

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Speaker 1: to diversify better. UM. And it's signaled that by by

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Speaker 1: looking at a company with who's essentially US based company

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Speaker 1: like hershey, but for her, she it's hard to say

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Speaker 1: if anyone's going to take a run out of here. Well,

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Speaker 1: I'm sure if anybody does, you'll be the first to

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Speaker 1: let us know. Ken sh Senior Allies or Food and

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Speaker 1: Beverage at Bloomberg Intelligence. Let's get right to Ward McCarthy,

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Speaker 1: chief financial economist at Jeffreys a ball market rally today, Ward,

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Speaker 1: we had consumers spending looking reasonably healthy. Inflation, you're over

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Speaker 1: here still lagging the Fed's target by a long shot.

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Speaker 1: What's going on? Well, I think what we saw today

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Speaker 1: was a couple of things. First of all, UH, the

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Speaker 1: three hours fell off that we saw on Friday afternoon,

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Speaker 1: UH created some yield levels that looked to be a

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Speaker 1: little bit attractive. And keep in mind we're right on

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Speaker 1: the threshold of the end of the month as well,

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Speaker 1: so UH, there was some institutional investors that were involved

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Speaker 1: with extension trades. So I think that's really primarily what

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Speaker 1: we're looking at. But when you take a bigger step

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Speaker 1: back and you look at last week's big development, which

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Speaker 1: of course was Jackson Home, it was really kind of

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Speaker 1: a friendly message from the Fed, even though they were

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Speaker 1: telling us that they expect to raise short term rates

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Speaker 1: UM in the not too distant future. Uh. They also

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Speaker 1: said we're not going to raise them a lot, and

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Speaker 1: we're going to leave the balance sheet enormous for a

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Speaker 1: long time to come. So I think these were probably

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Speaker 1: um some company messages as well. So what do you

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Speaker 1: take away from Jackson Hole ward? Uh? I think I

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Speaker 1: guess you just summed up what you you take away,

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Speaker 1: Uh do the bone recompenning attention to governor crota boj

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Speaker 1: Governor reiterating and maybe even saying more firmly he's ready

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Speaker 1: to do whatever it takes to uh, you know, we

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Speaker 1: can the end boost inflation, etcetera. Because it seems like

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Speaker 1: get one other big benchro bank, central banks sanking, we're

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Speaker 1: gonna have lots of lots of liquidity coming out there,

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Speaker 1: lots of stimulus. Well, you know, there were a lot

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Speaker 1: of messages coming from Jackson Hall, and in fact there

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Speaker 1: was so many that it's you know, makes it difficult

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Speaker 1: to um, you know, get a very clear picture. But

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Speaker 1: it's one thing is quite clear that uh central banks

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Speaker 1: still want to provide uh stimulus to the economies to

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Speaker 1: do what they can, although a lot of them seem

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Speaker 1: to think that they may be near the end of

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Speaker 1: their rope. There's only so much central banks can do.

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Speaker 1: And one of the important themes out of the Jackson

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Speaker 1: Hall Symposium as well is that it's time for the

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Speaker 1: politicians to start carrying some of the load UM and

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Speaker 1: with some physical policy changes that will promote growth. Okay, word,

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Speaker 1: So I guess the question is, then, what does this

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Speaker 1: mean for the bond market. We've got okay, got a

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Speaker 1: kind of a bounce back rally, some nice looking yield levels,

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Speaker 1: But if it FEDS near the end of its rope,

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Speaker 1: of it's not going to raise my that would seem

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Speaker 1: to be bullish. On the other hand, to the physical

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Speaker 1: side were to step up, what does that mean? Well,

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Speaker 1: I'm not going to hold my breath waiting for the

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Speaker 1: physical side to UH to step up. And first of all,

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Speaker 1: we have to get through what I think is UM

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Speaker 1: an election that very few people expected. When you look

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Speaker 1: at the UH, the two parties both seem like they

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Speaker 1: want to spend more money, especially on infrastructure, so that

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Speaker 1: would fit all the type of actions that central banks

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Speaker 1: would like. But on the other hand, the two parties

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Speaker 1: go in opposite directions on tax policy. The Republicans wanting

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Speaker 1: to cut taxes, and uh, the Democrats are going in

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Speaker 1: the other direction, especially on corporate tax I think, which

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Speaker 1: is um, you know, a really significant issue for this country. Um,

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Speaker 1: because of the inversion issue. UM. And that's really just

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Speaker 1: a function of the fact that the lad of time

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Speaker 1: we changed tactics is thirty years ago and we're high now.

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Speaker 1: Oh boy, all right, where McCarthy summing up so much?

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Speaker 1: What lies ahead from Jackson Hall as we head toward

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Speaker 1: that September twenty one Federal Reserve meeting and in September

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Speaker 1: twenty one Bank of Japan meeting. And I want to

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Speaker 1: thank John Lauder, our technical director today of course, our

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Speaker 1: producer Sam Linga. I'm Kathleen Hayes, and this is Bloomberg