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Speaker 1: Bloomberg Audio Studios, podcasts, radio news.

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Speaker 2: The single best idea and the single best idea coming

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Speaker 2: out of this Friday into the weekend is really pay

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Speaker 2: attention to what smart people are writing. It takes some

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Speaker 2: time to write those essays. They don't just happen overnight.

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Speaker 2: Trust me, they're not using chat GPT. And the answer is,

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Speaker 2: what I'll be doing this weekend is thinking about our

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Speaker 2: conversations that we had, but also looking at essays in

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Speaker 2: real time. Late last night, Adam Posen of Foreign Affairs

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Speaker 2: Magazine and the Peterson Institute published a short, brilliant piece

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Speaker 2: on trade, like you know, like Paul Krugman would do,

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Speaker 2: urs Glenn Hubbard would do. Forget about the politics of it, Republicans, Democrats,

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Speaker 2: Just what do we know about trade? And I really

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Speaker 2: urge you to listen for that within our conversations. An

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Speaker 2: exhausting day, but just exhilarating with the quality of the

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Speaker 2: guests we had. Really tried to stay on the markets.

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Speaker 2: At Bank of America, she invented their quantitative ESG analysis.

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Speaker 2: She is their US equity strategist with a huge global reach.

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Speaker 2: Savita's Supermanian on the moment.

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Speaker 3: If you look back on what happened in prior periods

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Speaker 3: of protectionism, prior periods of stagflation, whatever we're heading into.

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Speaker 3: Value stocks outperformed treasury bonds by a massive margin. The

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Speaker 3: last thing you want to be stuck in during a

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Speaker 3: stagflationary environment is long duration bonds. They have no options,

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Speaker 3: whereas stocks, to me, are the best place to be.

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Speaker 3: In an environment where you need those options, companies can

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Speaker 3: extend or shorten their duration. We saw this with Meta

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Speaker 3: and Google in twenty twenty three. They both initiated dividends

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Speaker 3: and transition from being just pure growth to value. I

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Speaker 3: think this is a really interesting time to think about

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Speaker 3: value equities. Companies that are returning capital, like utilities, even

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Speaker 3: metals and mining, even you know energy companies that were

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Speaker 3: the dividends or sacro SANCD. I think those are areas

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Speaker 3: that you really want to think about.

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Speaker 2: Savina Supermanian. Now it's time for clinic. I want to

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Speaker 2: get this in before we get the Jordan Rochester. It's

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Speaker 2: just as simple as this. The financial media, out of convenience,

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Speaker 2: like think Bobby exel ro Out on billions, we conveniently

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Speaker 2: quote fixed income dynamics off of yield and is the

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Speaker 2: wonderful Liz Goldenberg. She once cut me over my left eye.

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Speaker 2: Here she threw a manalo blonic shoe at me and

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Speaker 2: the heel hit me just above the eye. Had two

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Speaker 2: stitches from Liz Goldenberg. She was so angry at me

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Speaker 2: because in times of crisis, yield doesn't matter, and what

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Speaker 2: matters is price. And in the old days, like in

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Speaker 2: my ute, we quoted yield and price together and then

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Speaker 2: that went away and the financialization in the last thirty

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Speaker 2: years or so. I can't emphasize enough. When you see

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Speaker 2: yield up, what people in bow ties are really saying

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Speaker 2: is price down. And that's where we are on this Friday,

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Speaker 2: and I have no idea where we'll be on Monday.

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Speaker 2: If you think you do, you know, just good luck

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Speaker 2: with that. The answer is every time somebody quotes yield,

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Speaker 2: think price down, because that's really what's going on here.

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Speaker 2: Whether you're Jamie Diamond or somebody with a Christmas Club

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Speaker 2: account at JP Morgan. Jordan Rochester does not have a

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Speaker 2: Christmas Club account at a big bank. He's at Missouo,

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Speaker 2: hardwired into the flows around the world, particularly from China

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Speaker 2: and his Japan and London. Jordan Rochester on flows.

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Speaker 4: Well, my key can ERNs earlier this week was about

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Speaker 4: dollar funding because the whole world was facing such higher

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Speaker 4: tariff rates. For US, what you're going to see is

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Speaker 4: that exporters to the US were no longer going to

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Speaker 4: receive their dollar receipts, and then dollar funding would become

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Speaker 4: an issue. The only good news that I can give

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Speaker 4: you is that you just had a record Q one

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Speaker 4: imports in America and so a lot of these exporters

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Speaker 4: around the world will be sitting on a dollar cash

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Speaker 4: pile that's a little bit more healthier than usual. Now

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Speaker 4: we've had this ninety day reprieve at ten percent tarif rates.

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Speaker 4: I do see the flows of commerce still taking place

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Speaker 4: between Europe and the rest, but the problems with China

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Speaker 4: with these extreme tariffs that we have. We've got one

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Speaker 4: hundred and forty five percent tarifrate on China. It's the largest,

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Speaker 4: one of the largest trading partners in the world with

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Speaker 4: the US, and so you're going to see a dollar

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Speaker 4: quizy issue at some point unless we have a climbed down.

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Speaker 2: Jordan Rochester of Mazoo and again their team is outstanding,

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Speaker 2: dominant constant, Stephen Roshudo and Jordan Rochester. Look for their published,

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Speaker 2: Look for their work, I should say published this weekend.

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Speaker 2: You'll see some of those headlines out on the Bloomberg.

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Speaker 2: I think we'll leave it at that. What I know

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Speaker 2: is I got a euro at one fourteen. I think

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Speaker 2: I just had a one fifty two one excuse me,

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Speaker 2: four p fifty two four point fifty three ten year yield.

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Speaker 2: Let me know if you know. We're going to be

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Speaker 2: on Monday. Right now, we're on YouTube, podcasts and of

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Speaker 2: course all of the work we do. Thank you for

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Speaker 2: an exhausting week and for your attention to single best idea.