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Speaker 1: Global business news twenty four hours a day. It's Bloomberg

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Speaker 1: dot Com, the Radio plus Mobile Act and on your radio,

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Speaker 1: this is a Bloomberg Business Flash and the Good morning.

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Speaker 1: I'm John Tucker. Markets are lower this morning. Let's go

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Speaker 1: over to the First Word Breaking news desk for today's

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Speaker 1: morning call, and here's Bill Maloney. Good morning, John. US

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Speaker 1: features remain under pressure today amid global stock weakness. Doubt

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Speaker 1: currently lower by futures currently lowered by fifty eight point

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Speaker 1: says to the futures drop six and a half and

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Speaker 1: as a futures declined by twenty The US ten ul

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Speaker 1: at one point six three percent and gold futures gain eleven.

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Speaker 1: The NIK fell three point five percent overnight, Shanghai slum

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Speaker 1: three point two percent. Well, many markets are also lower.

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Speaker 1: Italy drops two point three percent, and the Sterling slides

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Speaker 1: to an eight week low against the dollar. In US

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Speaker 1: deal news to ManTech to buy security firm Bluecoat for

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Speaker 1: four point six five billion, and in other news, the

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Speaker 1: NIK reported iPhone sales said to all for the first

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Speaker 1: time in two six sites person at a mayor just

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Speaker 1: supply are also Valiance CEO by four point nine million

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Speaker 1: shares at a price of Finally some of your wall

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Speaker 1: sheet upgrades and downgrades. Bio cutting neutral versus by over

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Speaker 1: at City Group, Agios Farmer raised to overweight at JP

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Speaker 1: Morgan Endo International, raised to neutral at MIZZOOHO at Morgan Stanley,

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Speaker 1: Contra Resources raised overweight and Occidental cut to equal weight.

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Speaker 1: Live on the first to Breaking News desk on Bill Maloney, John,

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Speaker 1: all right, thanks to Bill and uh thanks, Uh we'll

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Speaker 1: hear live breaking news over your Bloomberg to hear that

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Speaker 1: type Bloomberg type squawk, go on your terminal, BA think

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Speaker 1: is a Bloomberg business of flash. I'm John Tucker, tob

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Speaker 1: John Tucker, thank you so much, greatly appreciated Bloomberg surveillance

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Speaker 1: this morning with extra data checks brought you by Investco.

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Speaker 1: Don't settle for average in your portfolio to invest Goo.

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Speaker 1: The right approach means investing with high conviction. Find out

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Speaker 1: more at investco dot com slash high conviction. We have

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Speaker 1: a high conviction. Every once in a while, Just once

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Speaker 1: in a while, we want to talk to somebody who

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Speaker 1: actually runs money. Jack McIntyre joins us Venerably with Venerable

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Speaker 1: Brandywine as well and Global Fixing up. Jack did you

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Speaker 1: get through the weekend. It wasn't easy. I didn't sleep

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Speaker 1: very well, but yeah, uh, I did make it through.

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Speaker 1: What's interesting to me is you and I remember the sweat.

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Speaker 1: There was a difference. There was an immediacy that's really

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Speaker 1: not now. And yet the carnage for institutional money looking

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Speaker 1: for longer duration is what do they do? What what

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Speaker 1: do you do in a meeting at nine am with

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Speaker 1: global yields where they are well, you know, okay, So

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Speaker 1: a couple of things. One is that you can't necessarily

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Speaker 1: just look at towards the nominal yield. You've got to think, okay,

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Speaker 1: what's underlying that. You've got to you know, fixed incomes,

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Speaker 1: conserve the purpose of sort of portfolio insurance. Um, you know,

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Speaker 1: we're not finding huge value. And treasuries, Um, we've been

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Speaker 1: reducing our exposure, but we haven't gotten out of them.

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Speaker 1: I still think it in this world, there's some you know,

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Speaker 1: you follow the capital, and the capital we think is

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Speaker 1: going to move to where there's actually positive yields, and

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Speaker 1: that's a bias towards more the emerging markets, with the realization, hey,

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Speaker 1: there's gonna be some volatility around. Let so you know,

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Speaker 1: you can almost make I think it's a little bit

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Speaker 1: of the opposite of the late nineties, where hey, maybe

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Speaker 1: there's actually some value in some of the emerging sovereign bonds.

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Speaker 1: How long does that last? All the money comes in

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Speaker 1: and it goes away. Well that's that's a good point,

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Speaker 1: because that's kind of world we're living in. We're just

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Speaker 1: sort of a wash in capital. There's probably you know,

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Speaker 1: the Larry Summer's argument too much savings. So I think

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Speaker 1: we're at early in that process. I mean, e M

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Speaker 1: is lagged for years now. This is not a war

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Speaker 1: term development. Um. You know, it's not just gonna be

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Speaker 1: a one or two quarter event. I think it's gonna

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Speaker 1: you know, maybe last for the next couple of years.

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Speaker 1: Well what what uh does this imply? Does it imply

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Speaker 1: that the central banks are are doing too much? Well, okay,

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Speaker 1: so I think we are approaching the limitations of monitor policy.

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Speaker 1: So you know this is I view this as okayy,

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Speaker 1: what's going on today that these were planned decades ago.

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Speaker 1: It's this secular disinflationary trend. You know, that's the globalization, technology, demographics,

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Speaker 1: too much debt, all that kind of stuff. We're using

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Speaker 1: a you know, center ranks are using a cyclical policy

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Speaker 1: to address this secular trend. UM, so I you know,

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Speaker 1: I'm I'm there, and you know they've they've admitted to

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Speaker 1: it as well that you know they're facing the limitations.

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Speaker 1: We need something else. That's something else, UM. I think

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Speaker 1: it has to come from the fiscal side of things.

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Speaker 1: Until that happens, UM, I still think there's probably gonna

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Speaker 1: be some value in in high quality bonds as well

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Speaker 1: as emerging mark. Where's the actual assumption now for long

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Speaker 1: term money? You and I are all have to remember

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Speaker 1: the glories of eight percent and not that anybody ever

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Speaker 1: got the double digit stupidity, but the migration from eight

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Speaker 1: percent down to an assumption of six percent return was

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Speaker 1: long and painful. I have no clue where that number

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Speaker 1: is right now, do you. I'm not sure it's acts

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Speaker 1: even a six percent, I think. And that's a problem

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Speaker 1: that you know a lot of pension funds are still

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Speaker 1: holding onto. Maybe they've ratcheted from eight to seven, but

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Speaker 1: we've got to go through a continuation of that. You know,

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Speaker 1: the risk is that and and trying to reach that

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Speaker 1: return objective, they've got to take on more risk, credit risk,

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Speaker 1: They've got to extend out the curve. So as long

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Speaker 1: as we're in a risk neutral, a better yet risk

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Speaker 1: seeking environment, that's gonna happen. But if we go to

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Speaker 1: risk off and you know, the last couple of days

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Speaker 1: we've certainly seen that that that's gonna you know, resulting

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Speaker 1: loss as supposed to meeting that actually were all assumption

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Speaker 1: our dividends of proxy for you. Um So I'm a

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Speaker 1: from a bond standpoint, So I'm gonna give you a

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Speaker 1: little bit pushed back because I think you know, uh,

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Speaker 1: they certainly can be. But you know, if we hit

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Speaker 1: that risk off environment, don't look for the underlying equities

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Speaker 1: to provide that sort of flight to quality. That's why

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Speaker 1: I do think you need a barbelled approach. You need

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Speaker 1: some high qualituration in the portfolio. You know, in case

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Speaker 1: a we do go into uh, some kind of recession

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Speaker 1: in the US or globally, is there a concern of

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Speaker 1: Phillies or ten games back this season? It's easy to

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Speaker 1: get tickets to their games. Well, Jack, thank you so much,

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Speaker 1: Jack McIntyre, Philadelphia, Brandywa Global. There's exactly what I'm talking about.

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Speaker 1: Income for years. You can go to the mess cheap

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Speaker 1: now they're they're really good at I can't afford a ticket. Yeah,

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Speaker 1: well that was great. Jack McIntyre has been running money

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Speaker 1: and there. You know, folks, I love to talk to

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Speaker 1: strategists to sells side and you know the international relations

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Speaker 1: guys we speak to to talk to people actually with

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Speaker 1: a blodder on their desk and a pencil in their hand,

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Speaker 1: and they come in the morning and they look at

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Speaker 1: outflows and then they look at where they are can

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Speaker 1: be refreshing. Yeah, Mr McIntyre and Brand New Wine affiliated

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Speaker 1: with did you the Philadelphia Phillis? I mean, thank god

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Speaker 1: for the Atlanta Braves playing two nine ball. Both teams

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Speaker 1: are sort of you know, giving it up as they

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Speaker 1: try to work young players into the lineup. So in

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Speaker 1: the should I just roll from the Penguins to the Pirates?

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Speaker 1: Is that a sound strategy? Pirates are playing well? This

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Speaker 1: is Bloomberg Surveyance. Good morning, Pittsburgh, coming up there with

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