Speaker 1: Bloomberg Audio Studios, podcasts, radio news.
Speaker 2: Single best idea, an extraordinary set of conversations as a
Speaker 2: president attends China. I believe tomorrow within our show will
Speaker 2: be when the president lands en Beijing. We'll have to
Speaker 2: see on that as we move forward. But all sorts
Speaker 2: of conversations wrapped around a five percent thirty year bond,
Speaker 2: wrapped around a print of one oh eight on Brent
Speaker 2: crude earlier this morning, and more than anything, wrapped around
Speaker 2: three point eight percent inflation. And Eric Winnigrad of Alliance
Speaker 2: Bernstein was quite heated that there's rich people inflation and
Speaker 2: poor people inflation, and he would model out poor people
Speaker 2: inflation is a very painful five percent plus. It is
Speaker 2: the most unusual time at your Denny, with all of
Speaker 2: its decades of work on economics and market strategy, suggests
Speaker 2: higher for stocks. Here is your Denny, of your Denny Research.
Speaker 3: We definitely are climbing a wall worry, and that's the
Speaker 3: best kind of bull market you can have. You don't
Speaker 3: want everybody being bullish. You want people to have concerns.
Speaker 3: I don't want people to worry on a personal level,
Speaker 3: but on a professional level. When I see a lot
Speaker 3: of bearishness. From a contrarian perspective, it usually works. I've
Speaker 3: made some of my best calls on market bottoms when
Speaker 3: my gut was hurting and everybody was in a panic mode.
Speaker 3: So we're not in panic mode right now. But on
Speaker 3: the other hand, there are a lot of people worrying
Speaker 3: about what's going on in the Middle East, and I'm
Speaker 3: not saying that's not worrisome, but it's certainly adding to
Speaker 3: the concerns. They're worrying about the bond mark at they're
Speaker 3: worrying about a k economy that the consumer's not going
Speaker 3: to continue to spend, and they're working worrying about too
Speaker 3: much capital spending. So there's a lot of worries up
Speaker 3: there out there. But meanwhile it's really pretty simple or
Speaker 3: at then the market is also getting kind of thrust up,
Speaker 3: but it's been a rocket ship because of earnings.
Speaker 2: Joannny there with your any research looking out for I
Speaker 2: think the interpolation to DOO is now sixty thousand plus
Speaker 2: out of year or so within his bull market. I
Speaker 2: want to take a moment to do a massive shout
Speaker 2: out to Simon White. You may not know the name
Speaker 2: Simon White is in London. He is one of our
Speaker 2: great quant strategists writing for Bloomberg Macro, and he did
Speaker 2: an absolutely brilliant piece that went viral globally on gamma today.
Speaker 2: When you hear the Greek letters alpha, beta, gamma, delta, epsilon,
Speaker 2: they all mean something and there's any other letters as well.
Speaker 2: I'm beholden to data, which is the time function and
Speaker 2: all sorts of mathematics. But he did a wonderful thing
Speaker 2: on the gamma within the option market. This is the
Speaker 2: movement of the options market, how people are hedging embedding
Speaker 2: along with dispersion and correlation. Absolutely brilliant. I'll try to
Speaker 2: get that out on Twitter and LinkedIn. Simon White with
Speaker 2: just some brilliance out of London today. Also always brilliant
Speaker 2: off of eiu wis Constance Hunter here on the inflation
Speaker 2: report three point eight percent.
Speaker 1: It's painful and it's going to get worse. That's I
Speaker 1: think the importance you.
Speaker 2: Can predict to four percent inflation.
Speaker 1: Do you think it's going to be above four point
Speaker 1: two percent average for the second quarter? Yes?
Speaker 3: Wow, yep?
Speaker 2: How does that change a political debate in America? All
Speaker 2: your study of the analog of presidents having to get
Speaker 2: up in front of a four point two percent inflation rate.
Speaker 1: I think it's gonna I think it's going to come
Speaker 1: back to Biiten. I think that's one of the reasons
Speaker 1: that people had anticipated that we would bring an end
Speaker 1: to the war in Iran, because the postwork implications are
Speaker 1: so strong. As I said, this administration seems to have
Speaker 1: its own perception of the political feedback loops, which may
Speaker 1: prove to be a bit inaccurate constance.
Speaker 2: Hunter there on the inflation report today. Thanks to all
Speaker 2: of our guests for wonderful and differing perspective on your inflation.
Speaker 2: As I tape this here within our studios, Copper hits
Speaker 2: a new high. Some people will say, pay attention to
Speaker 2: doctor Copper, please stay with us over the next couple
Speaker 2: of days. In newsflow extraordinary on podcasts out at Spotify
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