Speaker 1: Bloomberg Audio Studios, podcasts, radio news.
Speaker 2: A single best idea and the worst idea was basically
Speaker 2: all of us worked all weekend across the three day
Speaker 2: We tried to do things here as we all do,
Speaker 2: but we're all glued to our phones doing the social media,
Speaker 2: reading the zeitgeist. If you would major shout out William
Speaker 2: Rhodes's iconic at City Group of Brown University, his Brown
Speaker 2: University Bill Rhods writing up a wonderful essay in Project
Speaker 2: Syndicate on the moment at hand for Europe. He is
Speaker 2: of ninety one years old. We celebrate the Bill Rhodes
Speaker 2: published this weekend. Mark Champion published as well. Really can't
Speaker 2: say enough about his work definitive in Europe with a
Speaker 2: truly wonderful Transatlantic perspective, Iconic at the Wall Street Journal
Speaker 2: and now writing for Bloomberg Opinion. Champion on the moment
Speaker 2: at hand.
Speaker 1: This is going to be incredibly hard for Europe. They
Speaker 1: all understand they need to hang together. The problem is
Speaker 1: finding that common denominator that allows them to hang together.
Speaker 1: And so long as you know, this is what Mattz
Speaker 1: has been hinting that he's going to be saying to
Speaker 1: Maccai is that you need to ease off a little
Speaker 1: bit because you just can't take us all with you. Now.
Speaker 1: You know, if there is method to what Trump is
Speaker 1: doing here, you know one way that you could explain
Speaker 1: this is to say what he wants, and it's what
Speaker 1: he said he wants is to divide the EU, in
Speaker 1: particular on trade. He really cares about trade.
Speaker 2: My champion there and of course will continue to speak
Speaker 2: to mister Champion and others across all of Bloomberg Opinion. Again,
Speaker 2: the President speaks tomorrow at the meetings of the World
Speaker 2: Economic Forum. A good way to start here with the
Speaker 2: markets and turmoil. Michael Purvis joined us on the move inequities,
Speaker 2: the moving gold up to forty seven hundred plus as
Speaker 2: well the bond market move price is lower here Michael
Speaker 2: Purvis on a unique Tuesday.
Speaker 3: Oh, I think what's really idiotsymnocratic with Japan right now,
Speaker 3: with the fact that they're thirty year bond is this
Speaker 3: you know that yield is a surgeon, right. And it's
Speaker 3: an interesting contrast because in the United States, for all
Speaker 3: the time we talk about the Fed and the Chair
Speaker 3: and inflation and all this interest rate stuff, the reality
Speaker 3: is that rate volatility in the US has been extraordinarily low,
Speaker 3: perhaps until last night, and rape volatility overseas is doing
Speaker 3: in Japan particularly, is doing very interesting things.
Speaker 2: Michael Purvis there on how to interpret all that we
Speaker 2: see in the market. So here's a little bit of
Speaker 2: nerd fest on a Tuesday. It's so cold now, I mean,
Speaker 2: all you can do is go to logarithms. So we
Speaker 2: all quote yield. And you heard mister Purvis say there
Speaker 2: yield surged in Japan. So it's yield up and that
Speaker 2: means in price down. So on the Bloomberg and this
Speaker 2: is rarely rarely quoted in the zeitgeist. Are the price
Speaker 2: of a bond, a note, a bill, And in the
Speaker 2: case of the ten year or twenty or forty year Japan,
Speaker 2: we can get a price farther out you go, the
Speaker 2: bigger the price move for drama. So I bring up
Speaker 2: the forty year Japan bond forty year in price, not
Speaker 2: yield in price, and basically it's going ninety to eighty,
Speaker 2: just as a general idea. So then I look at
Speaker 2: the movement the volatility as mister Purvis was just talking about,
Speaker 2: which is a standard deviation right now that forty year
Speaker 2: piece is at eighty three. If it goes to eighty
Speaker 2: two or eighty one and a half, something like that,
Speaker 2: it's a four standard deviation move that is really really
Speaker 2: critical to the kind of math that leads to emotion
Speaker 2: and the unexpected. In Japan, again, the T function, the
Speaker 2: trading envelope function modeled out logarithmically is a four standard
Speaker 2: deviation move. We're really getting here quickly on some of
Speaker 2: the Japanese debt on podcasts out at Spotify, at Apple
Speaker 2: Music as well, and YouTube podcasts single best Idea