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Speaker 1: Bloomberg Audio Studios, Podcasts, Radio News.

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Speaker 2: Single best Idea, What a show today with all the

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Speaker 2: economic data CPI, retail sales in that and our guests

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Speaker 2: rally great to have Dana Telsey with us a Telsey Advisor,

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Speaker 2: way too short a visit with her, but important and

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Speaker 2: retail sales are a little soggy, particularly the Control group.

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Speaker 2: She made very clear that there's a partition in America.

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Speaker 2: Luxury's really doing quite well. She's optimistic about a redo

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Speaker 2: in China of demand, but away from that, there was

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Speaker 2: some sogginess to retail sales. What ad joy to have

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Speaker 2: Gena Martin Adams with her courage to be in the market,

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Speaker 2: Bloomberg Intelligence and just before her Edyard Denny truly iconic

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Speaker 2: Edyard Denny reaffirming SPX fifty four hundred and the idea

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Speaker 2: that corporations are moving forward. We certainly saw that within

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Speaker 2: the equity markets as well. There was a little bit

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Speaker 2: of fed analysis. Paul Donovan outstanding. If you're on LinkedIn,

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Speaker 2: We send this out Single best Idea out to Twitter

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Speaker 2: and LinkedIn every day, and if you're on LinkedIn, look

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Speaker 2: up Paul Donovan of UBS. He does a great, great

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Speaker 2: job bringing the UBS knowledge to LinkedIn. Mister Donovan was

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Speaker 2: fired up today about a FED that is not so

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Speaker 2: much wrong wrong, wrong, but much more behind behind behind

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Speaker 2: here is Donovan of UBS.

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Speaker 3: I would be looking to cut rates already because if

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Speaker 3: you look at the market based prices, the prices that

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Speaker 3: FED policy actually influences. That's in this inflation territory. You

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Speaker 3: look at durable goods prices, that's in outright deflation territory.

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Speaker 3: Here it does how therapy think that keeping interest rates

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Speaker 3: higher for longer is going to bring down owners equivalent

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Speaker 3: rent because newslash it isn't it doesn't have any impact

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Speaker 3: on owners equivalent rent. It certainly off for the downside

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Speaker 3: might actually raise it. And that's where we're finding this

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Speaker 3: stickiness in inflation. It's in the made up prices, the

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Speaker 3: fantasy prices. Now we saw obviously a big bond market reaction.

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Speaker 3: So the last CPI print, the March number, which came

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Speaker 3: in stronger than expected. Why did it come in stronger

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Speaker 3: than expected because of rents in Detroit. We can't base

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Speaker 3: an entire country's monetary policy on whether or not the

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Speaker 3: cost of a condominium Michigan is going up or not.

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Speaker 2: Paul Dnovan just brilliant there and really you know, always

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Speaker 2: always intense, but fired up there on what we need

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Speaker 2: to see. June twelfth, at the next FED meeting, we

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Speaker 2: looked at equities today and of course we did look

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Speaker 2: at Barnes, Matt Michigan of Johnny Hancock. Thank you for attendance.

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Speaker 2: Right around the eight thirty report. Ira Jersey of Bloomberg

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Speaker 2: Intelligence is just brilliant about the focus on short paper

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Speaker 2: he will publish for Bloomberg Intelligence. I think you'll see

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Speaker 2: that as we tape this within an hour, that'll be very,

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Speaker 2: very important to look at this readjustment equities higher, the

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Speaker 2: real yield coming in that's been bracketed. I'm going to

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Speaker 2: say two ten to two twenty two, ten to two eighteen,

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Speaker 2: and the ten year really breaking down beneath two point

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Speaker 2: one zero percent off the set of economic data today.

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Speaker 2: Before that, we talked to Megan Graper, she's outstanding at Berkeley's.

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Speaker 2: We talked to her about corporate issuance. We talked to

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Speaker 2: her about debt markets.

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Speaker 1: I think you've got to think about taking chips off

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Speaker 1: the table because we don't know what we don't know.

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Speaker 1: So the second half of the year, I think presents

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Speaker 1: the potential for any number of land mines to start

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Speaker 1: rearing their head. And so while you have these optimal

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Speaker 1: demand technicals in place, you know, even thinking about your

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Speaker 1: twenty twenty five funding needs and pulling those forward. I mean,

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Speaker 1: acceleration is now the defining force behind the new issue

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Speaker 1: markets and investment grade. And so we're we're seeing volumes

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Speaker 1: at forty percent, but it's not precluding borrowers from achieving

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Speaker 1: negative new issue concessions versus their existing secondaries. And you're

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Speaker 1: seeing over subscriptions that are pretty eye popping, particularly in

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Speaker 1: the long end of the curve. So the combination of

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Speaker 1: those factors means, you know, double down, continue to pull

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Speaker 1: funding forward, and I think you know, avoid the noise

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Speaker 1: that might start to creep in and the rate volatility

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Speaker 1: we're likely to experience as we move into the second

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Speaker 1: half of the year.

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Speaker 2: Some people say, what do we follow here? Paul's very

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Speaker 2: good about following the CD race. Somebody tweeted in live

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Speaker 2: chat on YouTube. They tweeted and they had a five

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Speaker 2: point three five percent six months CD, which sounds like

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Speaker 2: from another era. Another age is a police to scene

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Speaker 2: of the mesa scene I can't remember which era. But

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Speaker 2: the answer is in one of the great themes today

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Speaker 2: on the show across equities, bonds, currencies, commodities is we're

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Speaker 2: back to normal in the bond market, at least in pricing.

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Speaker 2: I don't know if our brains are back to normal,

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Speaker 2: and that'll certainly be one of our themes into the

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Speaker 2: caution that Megan Raper talks about. Into the end of

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Speaker 2: two thousand and twenty four, just an except day for

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Speaker 2: us on linking in this economics into the markets. As

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Speaker 2: we take this record high in the standard and pores

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Speaker 2: five hundred, we do a major shout out to the bulls,

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Speaker 2: the people that said be in this market. There are

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Speaker 2: too many to name. There's been a good set of

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Speaker 2: people that have said just participate. I think Brian Belski

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Speaker 2: at BMO Capital Markets is one. Ben Ladler way out

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Speaker 2: front with e Toro and before that with HSBC. We're

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Speaker 2: to enhance Apple car Play when they're not trying to

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Speaker 2: figure out what to do with the goggles. YouTube is

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Speaker 2: just building. We are thrilled with the reach, the global

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Speaker 2: reach every day of YouTube. We really just can't believe

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Speaker 2: the ease of use there in the building that we're

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Speaker 2: the replay two hours, fifty six minutes, and also this podcast.

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